Steemit Crypto Academy [Beginners' Level] | Season 4 Week 7 | Proof of Keys

olawole111 (58)mutedBeginner[2,3,4,5,6,7,10]in SteemitCryptoAcademy • 3 years ago (edited)

Hi, everyone, I am @olawole111 a student of the steemit crypto academy am so glad to partake in this week's lecture by professor @awesononso on proof of keys and am sure as your read through you will gain one or new things.

QUESTION 1

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

PUBLIC KEYS IN A CUSTODIAL WALLET

In cryptocurrency there's a term called cryptography this term cryptography is used for transmitting and securing secret messages that can only be understood by the recipient and we have different keys under the cryptography concept in which will be making use of only two keys which are the public and private keys.

public keys is an asymmetric cryptography encoding keys provided by a blockchain to receive transactions it is a public key as the name implies it can be used to send crypto asset in to a wallet and also Locking the cryptocurrency there but can't be used to unlock the wallet , now the private key is needed to unlock such wallet.

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Public key are used verify transactions, this key can be known by the third party because the public can be used to encrypt message.

PRIVATE KEYS.

Private key is another cryptography key that entails different key codes used for signing in transactions into a wallet and its also used In decrypting or unlocking messages, private key are meant for private use as the name implies and this key should be kept away from everyone and kept safe because if any other person has this private key transactions can be done without the consent of the owner of the wallet that's why its advice to always keep it as secret.

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CUSTODIAL WALLET

Custodial wallet is a wallet own by an individual but the private keys are not in control of the individual, there's always a third party in charge of all transaction, third party has authority over the custodial wallet and can do and undo any transaction without the knowledge of the wallet owner.
This is a clear example, I collect daily thrift savings from people and as day goes by they continue saving with me though the money belongs to them but I as the thrift collector can use the money for anything I want without the knowledge of the original owner of the money assuming I used this money for a business and eventually the business crashes and I as the thrift collector is the custodial wallet , I can decide get away with the money. In one word custodial wallet is not to save to keep cryptocurrency and it's built on centralized system and centralized system can be hacked anytime which can lead to lost of funds.

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NON-CUSTODIAL WALLET

Non-custodial wallet is just directly opposite of the custodial wallet its built on a decentralized system,the private keys are kept private by the owner of the wallet alone and it does not involve any third party or any intermediary unlike that of custodial wallet .

Here, user have full control over their account without anyone interfering and it very safe to keep funds, can't be easily hacked.

QUESTION 2

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

proof of keys day is a very remarkable day in cryptocurrency introduced by Trace Mayer on the 3rd January 2019 with the main purpose of sensitizing user on how decentralized system works ,because most people don't know about decentralized blockchain so this day is used to make people know more about decentralized system in decentralized system has more advantages that a centralized system that crypto trader's don't know about , some don't know the fact that it decentralized system is more secure reliable and users have full control over their transactions and account.

on this day investors withdraw their crypto asset from a centralized blockchain to a decentralized blockchain, this us done to know the centralized blockchain that is still standing on their feet because some gives their users false figures of what they have on the blockchain which might not be true,on this day those who falsify figure will be known to the world on that day.

PRECAUTIONS TAKEN WHY PARTICIPATING IN THE PROOF OF KEY DAY

personally, I will make sure use the correct wallet address to avoid lost of money.
I will make sure I key my private keys safe from third party so as to avoid intruder in to my account without my knowledge.
I will make sure my focus is on the purpose for that day which is how to learn more about decentralized blockchain and how to keep my private keys safe from anyone.

QUESTION 3

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

I prefer decentralized wallet for storing my cryptocurrencies because decentralized has so many advantages than that centralized exchange and I will be listing some of the reason why I prefer decentralized to centralized.

security: decentralized exchange are more secured than that of centralized because it can't be easily hacked and no one has access to my transactions and transactions key on like centralized that can be easily hacked and intruders can easily burst into my account and do away with my cryptocurrency and this can lead me to going bankrupt
freedom: Decentralized exchange offers me the opportunity to do any transaction on my account without the interference of third party and am i have the right to keep my login keys by myself on like centralized exchange that involves third party before I can do any transaction and it's controlled from a source.
easy operation: Decentralized exchange is every easy to operated so even newbies can easily comprehend on how to operate their account without much supervision.
Fast transactions Transactions in a Decentralized exchange is very fast and straight forward,within few minutes transaction of million are done without stress and without fear of been scammed .

QUESTION 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.

I will be transferring 25STEEM from my binance to my Steem wallet first of all I will click on steem after login in into my binance.

It took me to my STEEMwallet on my binance then I click on withdraw, then it took me to the withdrawal page.

And I input all the necessary details correctly before confirming the withdrawal.

Having confirmed my withdrawal then I submitted my withdrawal request and it was successful.

Then I went to check my steemit wallet to confirm that the transaction was really successful.

I will be transferring 120TRONS from my binance to my TRONS wallet first of all I will click on steem after login in into my binance.

And I clicked on withdrawal then it brought out my withdrawal page for me to input the necessary details for withdrawal.

Then I submitted my withdrawal after confirming my withdrawal details are inputted correctly.

Having confirmed that the withdrawal was submitted successfully and I went to my TRONS wallet to confirm the transaction.

QUESTION 5

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

The major significance of the transfer made is to know how the proof of day works and to know how decentralized exchange works and to learn how to keep our private keys safe from any form for third party and lastly to know the centralized exchange that still stand on their feet.

CONCLUSION

Finally, proof of key is done ones in a year which is the 3rd of January, the purpose of the proof of key is to know more about decentralized blockchain and to know how to keep our private keys safe and to know the centralized exchange that does not falsify figures and on this day also investors transfer their crypto asset from a centralized exchange to a decentralized exchange.

Thanks to professor @awesononso for the wonderful lecture

#awesononso-s4week7 #cryptoacademy #club5050 #steemalive