Question 1

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

First of all, we have to see what are public and private keys are?
Basically a private key is used for both encryptions as well as decryption. The private key is a key which we control individually or in other words we can say that the owner can only unlock the coins from the wallet.
The public key is also used for decryption but the public key can be used publicly or anyone can be locked the coins in the wallet but cannot be able to unlock the coins.
We can say that public and private keys are connected with each other because the data which is coded by the public key only be decoded by the private key.

Custodial Wallet:

The meaning of custodial wallet is someone else dominate your private keys or your crypto currency can be accessed by a third party. They manage your account they can easily be used your funds in something else without your knowledge. Usually this wallet is usually used for marketing purpose. So we can say that in term of custodial wallet your private key are not fully dominate by you it is possess by the third party.
Binance , Blockchain.com , BitGo and BitMex are some examples of custodial wallets.

Non-Custodial Wallet:

The non-custodial wallet is defined as your account are under your control you are managing your account no third party involved in this type of wallet your funds are totally possessed by you. In terms of a noncustodial wallet, the private keys are fully dominated by you.
Zengo, Exodus, TREZOR ONE, and Ledger Nano X are some examples of noncustodial wallets.

Question 2

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

Proof of keys day is celebrated on January 3rd. It is an annual event which is done by Trace Mayer. The main purpose of this event is to motivate those people who invest on the crypto currency to dominate their private keys fully in other words taking full control of your private keys and to take your funds into your private wallets from exchange wallets. Because sometimes the exchange exploit your funds and shows you the fake figures of the funds.
##PRECAUTION BEFORE PARTICIPATING IN THE PROOF OF KEYS DAY
Before participating in the proof of keys day there are some precaution I will made before giving my asset to decentralized or non-custodial wallet. These are as follow.

• First of all I secure my both keys private and public so in case if the third party manipulate my funds so I can recover them easily by using my private as well as public keys
• Verify the information through feedbacks before shifted your custodial wallet into noncustodial wallet
• I will ensure that I store my private keys into a secure place because if I secure my private keys in Miscrosoft word document or google doc it can easily be detected by the virus.

Question 3

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

The centralized wallet is the wallet which is control by the other the user doesn’t have the full hold of their private key. In contract the decentralized wallet is the one which is completely dominate by the user and the private keys are in control of the user.
If I have to choose between a centralized or decentralized wallets I will do with a decentralized wallets because of the following reasons.

• Decentralized wallet is free from any third party it is fully controlled by the user your funds are in your control so your funds are your responsibility.
• In a decentralized wallet there are fewer chances of hacking on the other hand centralized wallet can easily be hacked.
• In decentralized wallet If your mobile or device is corrupted still your funds are secure if you remember your private keys.
• In a decentralized wallet you can withdraw your funds whenever you want.
• Decentralized wallets are more secured because you have complete take over on your funds.

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.
(Provide Screenshots and make sure you have your Keys).

Transferring 20 Steem from Binance to the Steemit Wallet:

• Open your steemit wallet and copy the ID.
• Go to your binance account. Click on the wallet option.

• Find and click on the wallet option. Then click on the steem. Then Click on the withdrawal option.

• Enter the steem amount. Enter your Steemit Id which you have been copied. choose the network and click on the withdrawal.

• After clicking on withdrawal, Click on Confirm to proceed the transaction.

• The order is completed>

• Check steemit account to see if the steems arrived.

Transferring 50 TRX from Binance to TronLink Wallet:

• Open your tronlink wallet and copy the public wallet address from there.

• Now go to binance and click on the wallet option. Find the tron and click on it. Then click on the withdrawal option.

*Paste the address which you have copied from tronlink wallet, choose network, enter amount of TRX and click on withdrawal.

• A new page will be open to ask you for confirmation. Click on confirm button.

• Now check a few moment later your tron wallet to check whether the TRX have been received or not.
  

Question 5

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

Proof of keys is the major point in all the above requisites that through our private and public keys we are able to manage our wallets and accounts adequetly. These keys also helps us to save ourselves from different scams or fraud however, private keys must be highly protected otherwise, we will get our hands out of our money in no time.

Similarly, Steemit platform also provides us different public and private keys and we have to make sure that they remains secure. Decentralized wallets that we use to manage our cryptocurrencies, is what will make the difference between continuing to depend on the "security" provided by the former at the sacrifice of the convenience and versatility offered by the latter.

Conclusion

Only we are able to secure our accounts from malware or hackers and for that we have different keys assigned by cryptographic platform and we have to work under the licensing and guarding of these cryptographic tools like private keys. Through private keys we are able to get into our wallets easily but this operation cannot be performed by public keys as they only applied to transfer funds in our wallet.

In the end I want to thank Professor @awesononso for this amazing lecture and also thank @cryptoacademy for this amazing series of courses.

CC

@awesononso