Greetings,

This is me @hamadahmed112. yet, again with another crypto academy post. I am very glad to attempt this post. prof.@awesononso explains each step in a very very well manner as usual. so, let's start without wasting any time:

Image created on CANVA!

1 - Explain private and public Keys in relation to custodial and non-custodial wallets.

21 century is full digitalization our banks are fully going online. we can transfer the money to any place without any time. but if we talk about crypto assets it is fully decentralized. Any bank does not guaranty your funds. so, in this scenario, the concept of digital wallets comes. these digital wallets are secured by the keys there is various type of keys that can secure your funds. let's discuss one by one these keys:

Public Keys:

this type of key is public means that this key helps you to receive the funds into your wallets publically. or we can say that this is the wallet address. the public key is available for anyone who wants to send tokens. this key is fully protected by encryption methodology.

For example, a person TOM who wants to send the tokens into your wallet. so, you give the public key to Person TOM and he sends the tokens to that address.

Private Key:

The public key is used to encrypt the message and the private key is used for the decrypted message. both of these keys have their different functionalities. but the important thing is the private key is the heart of your funds. if you share this key accidentally with anyone so, it means you lose your funds.

The private key is very important you should save this key permanently that can not be accessible to everyone. if you lost this key so, it means you lost everything which is in your wallet. so, keep in mind you save your private key in multiple places. that can not be accessible to everyone. there are various types of private keys:

(a)Mnemonic keys.
(b)Key store file.

Custodial wallets:

these wallets are the same as our banking systems. like our banking system is fully controlled by the any central authority we can not withdraw the higher amounts of funds immediately. the same concept is applied to the custodial wallets in this wallet you have funds but you can not withdraw until and unless the central authority gives you the permission. Custodial wallets are not a good way to store your assets. it can be hacked sometimes and you lost your amount. also, this wallet doesn't provide you private key. it only provides the public key.

Non-Custodial wallets:

These types of wallets are based on decentralized mechanisms. it provides both of the keys like public key and the private key. you have full access to your funds if you have this wallet. so, the non-custodial wallets are more preferable to the custodial wallets. In a non-custodial wallet, no other type of central authority governs that. you manage your funds at any time and at any amount. but despite many advantages, it also has a disadvantage if you lost your wallet keys. so, it's a great loss because any person didn't recover these keys.

2 - What do you think about the Proof of Keys Day? What precautions would you take when participating?

The proof of keys day is celebrated on 3rd January the purpose of celebrating this day is to give and highlight the importance of proof of keys to newcomers who want to start their journey in crypto. another purpose of celebrating this day is to check the working of centralized exchange either it used the user funds or not. to check this the crypto holders transfer their funds from Custodial to Non-Custodial wallets.

Proof of keys day is a good way to check the centralized exchanges behaviors in crypto. if we don't check the functionality of centralized exchange so, it means we didn't follow the decentralized behavior of crypto. because the crypto tokens are decentralized it is not good that any central body governs that.

What precautions would you take when participating?

1. User has secured its Private keys himself no other person access it.
2. User monitors the transaction address either it is valid to address or not.
3. User make sure the receiving address if it is suspicious so, don't send the tokens to that address.
4. User always enters the memo to send the funds in such a case if you enter the wrong address it helps you to identify it.
5. User secured their private key successfully and any other person does not access it.

3 - Do you prefer Centralized exchanges or decentralized wallets for storing your cryptocurrencies? Why?

In my view, I preferred a more decentralized exchange rather than the centralized exchange there are the following reasons:


No third Party: The very first reason is no third party involvement in decentralized exchange wallet no third party are involved in it.

Fully Accessible: In decentralized exchange wallets you have your own private and public keys. this provides freedom from any third party and does not monitor your funds.

less chance of Hacking: The third reason is there is no chance of hacking in it because it is decentralized one node is connected to another node. in such a case if it is hackable so, we have support from the back.

Low network fees: In decentralized exchange there are very low network fees. each node pays its fess separately.

Secuirty: In terms of security, there is no chance of easily hacking. every node has a full address to the other node. security is very tight in decentralized exchanges wallets.

Feel Free: In the decentralized exchange you feel free at any time you withdraw your funds or deposit for funds.

4 - Let us assume it is Proof of Keys Day:Transfer at least 20 Steem from your Binance wallet to your Steemit wallet. Transfer at least 50 TRX from your Binance wallet to your TronLink wallet.(Provide Screenshots and make sure you have your Keys).

Step # 01:

go to Steemit wallet. and check the balance see in the screenshot:

Ilustraion of Steemit wallet

go to the Binance wallet check the balance.

Illustration of Binance Wallet

Step # 02:

Checking the Blance:

Illustration of Binance Wallet

Step # 03:

Confirming the order:

Transfer at least 50 TRX from your Binance wallet to your TronLink wallet.(Provide Screenshots and make sure you have your Keys).

Step # 01:

Check the Balance of both Wallets:

Step # 02:

Go to the deposit section fill the boxes. see in screenshot:

Confirms the transactions:

Step # 03:

Make sure your transaction is done successfully:

5 - In one statement, what is the major significance of the transfers in question 4

I must say that the Binance platform is very efficient and it is very handy to transfer or deposit your funds. I could manage my funds with the help of the Binance exchange. after attempting question 4 I am very clear that this exchange is fully operational they manage our funds and respond to the network quickly. I was use the private and public keys to deposit my funds. so, in the end, I must say that the major signific in my scenario is network responding and this is done by Binance very quickly.

Conclusion:

The public and the private keys are important. the public key is used for receiving the token or encrypting the message while the private keys are used for depositing the funds or decrypting the message. both of these keys are a combination of encrypted and decrypted messages. public keys are available for the public and the private key is only used a user.

it is the responsibility of the user that it can be protected these keys from the attacker. because if you lost these keys you not might be login again. that's it for this article I hope you enjoy my article.

Regards:

@hammadahmed112