Proof of key-Steemit Crypto Academy-S4w7-Homework Post for @awesononso

Introduction

Hello Professor @awesononso, I am delighted for this wonderful lecture you delivered on Proof of Keys. I will be submitting the solution to my assignment based on the question below:

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

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

3.) Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?

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

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

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

Source

Private Key:

Private keys are always advised to be kept saved. This is because once the third party have access to your key, all your assets can be stolen by the third party. This private key is always unique to public key.

This private key gives the user ownership and equally grant him access to carry out transactions. You should be equally aware that it also grant users the access to unlock the coins in the wallet.

This keys are always confidential and it's made up of alphanumeric which the user gain full control of the keys in order to carry out transactions on the Blockchain successfully just like the Steemit private keys.

Public Keys:

Public keys are used to encode data or message. Here, what you should understand is, public keys are generated by a software program from a reliable source and it's available to users.

What you should understand is, the public key help in protecting our wallet but does not allow free access during withdrawal. The reason is because we do not have full control of the wallet.

However, for a successful withdrawal to take place, the private key is required to complete the withdraw request. Not that this is in custody of the third party.

Base on this, we will look at custodial and non-custodial wallet in relation to the above keys.

Custodial Wallet

Source

Custodial wallet is just like the banking system where users save their money and their money is control by the third party. Here the users don't have control of their keys. However, the user/customer have confidence in the third party before handed over his/her assets for safekeeping.

Non-Custodial Wallet

Source

This wallet allows users to have full access to their keys and assets unlike the banking system.

This system eliminate the middle men from gaining access to the user's keys or account management.

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

Every 3rd of January is recommended as a Proof of key day annually. This was an event which was integrated on the 3rd of January 2009 by Trace Mayer. This movement persuaded investors of assets to transfer their Crypto out of an exchange to a decentralized exchange where users can gain full control over their private keys.

This Proof of key celebration is done annually on every 3rd January for remembrance of Bitcoin as the first ever mined Cryptocurrency. Therefore, centralized exchanges always demonstrate how they genuinely handled users funds by transferring the user's asset in full.

Note, before transferring your assets from a centralized exchange to a centralized exchange, the below responsibilities are shifted to the user/owner of the asset:

√ Safeguard your private key and make sure it is properly saved and you should keep it away from the access of hackers. This is because once your private key is accessible, your account might be hacked and all your assets will be lost and you should also write down the key where you won't easily forget in case your phone is lost.

√ Before you send your asset, make sure you check the both addresses whether it tally to avoid loss of asset. For example TRX10, here the receiving address must be the same.

√ This reminds investors that they have full access to their wallet because they own the private key.

3.) Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?

Re centralized wallet is always preferable to me because of the following points of mine:

√ The maintenance fee is lesser when compared to centralized exchange.

√ You have the right of making/taking decisions concerning your assets and it is more secured than centralized exchange.

√ There is restriction of third party/middlemen. There is no central authority over your assets.

√ In a decentralized application, you can carry out asset swapping within the wallet.

The reason why I preferred decentralized application or exchange for storing my crypto currency is because the Blockchain can not be easily hacked. The private keys are own by me and there is no third party involves.

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

In carrying out this transaction, please I will be making use of my Roqqu exchange in place of Binance to carry out this transaction.

Secondly, please I will be transferring lesser quantity of TRX compared to what is obtainable in the question due to insufficient Tron in my Roqqu wallet.

Steem Transaction

√ To withdraw steem from my Roqqu wallet, i will open the application and click on steem icon

√ I will click on send

√ I enter the address that i am sending to, Meme and the quantity of steem. For this assignment, i am sending 50 Steem to my Steemit account. Then click on proceed.

√ Enter your password and click on complete.

√ The 50 Steem is received in my steemit wallet

Tron

In taking the same procedure, i will be withdrawing Tron from my Roqqu to my Tronlink wallet.

√ To withdraw Tron from Roqqu to Tronlink, open Roqqu App, click on Tron Icon

√ Click on send

Enter the receiving address, the amount you wish to send. I am sending 10 Tron then click on proceed.

I enter my password and click proceed.

This is the confirmation that it has gone

What i noticed in the process of sending 10 Tron from my Roqqu wallet to Tronlink is; there is charge of 1 Tron. Due to the charge, 9 Tron was received.

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

The major significance of the transactions in question 4 has widen my scope of reasoning and making me to have a clear picture on how to transfer an asset from centralized to decentralized exchange with ease.

Conclusion

It is very important for an individual to understand and have a full knowledge /idea on how decentralized and centralized exchanges works before investing.

Thank you for your time.