Proof of Keys- Steemit Crypto Academy- S4W7- Homework Post for @awesononso
Here is my homework post for beginners course in the steemit's Crypto academy season 4 week7 by professor @awesononso.
Explain private and public Keys in relation to custodial and non-custodial wallets.
Private and public Keys are used to protect the secrecy of a message by encryption which is a form of protection against an interfarences of a third party. This keys both the public and private is a form of asymmetrical cryptograhy for the protection of the blockchain network. The public key is used by the sender to protect the message by encryption which can only be decrypted by the private key holder. This means the public key can be known by anybody but the private key is only know to the owner.
Custodial and non- custodial wallet are two different from of wallet used by a Cryptocurrency owner to store his currency. A lot of similar between them as they both function majorly to keep the Cryptocurrency safe, both uses the public key and private key as a method of encryption to safe guard their asset on its blockchain network.
A custodial wallet is a wallet that safe guard Cryptocurrency using the asymmetric cryptograhy but the private key is been known to a third party which gives the third party access to the asset in the wallet. This wallet are wallets that are majorly from centralised exchanges, for them to keep the asset safe you have to give them access to the fund or rather still bring the asset to them. That is just the simple logic just like the local bank.
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A Non-custodial wallet is a wallet that you saves Cryptocurrency using the same asymmetric cryptograhy but the private key is only known and accessable only by you. This is just like a piggy bank where u save money and you keep it somewhere only you know about and you can get your money from it anytime you need it.
What do you think about the Proof of Keys Day? What precautions would you take when participating?
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The proof of keys day is a very nessecary holiday created in 2019 to celebrate the fact that decentralisation is the sole rock on which the Cryptocurrency world is created upon. The days is to proof to the centralised exchanges that all the asset given to then by their customers are not theirs because it is believed that he who holdth the private key owner the coin which in the case of centralised exchange that authority of the private key is be given to them by the user.
The proof of keys day was held in reference to celebrate the 10year anniversary of the bitcoin genesis block and to bring awareness to all new user of Cryptocurrency who are well acquainted with only the centralised exchanges that the original way is the use of decentralised wallet.
The major precautions to take on the proof of keys day is to keep your private key safe and private because it is he who has the key that own all the Cryptocurrency value in it. And for the private key of decentralized wallet, when lost or forgetten, it cannot be recovered. All fund in the wallet lie in the blockchain without a owner.
Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?
From my experiences of the Cryptocurrency world at large I prefer to store my asset using the decentralised wallet. The only reason I have for this is because I will not have to give any third party access to my asset. I once had a bad experience with a centralised exchanges wallet that really pissed my off to learn to stick more with the decentralized wallet.
Something around late 2020 before the start of the major bullish run, I had about 80% of my Cryptocurrency on the okex exchange, and they decided to go on a update that did not allow it's user to withdraw fund for about a month. With this period I made a lot of loss through some inventment I should have made if my fund was available and I was not even able to get fund to maintain my daily routine. All of this with the fear that okex might just run off with all of our asset. All this can not be if I was not using a centralised exchange wallet.
PRACTICAL: Let us assume it is Proof of Keys Day
Transfer at least 20 Steem from your Binance wallet to your Steemit wallet.
To transfer steem from my binance account to steemit wallet, you first of all go to wallet on binance.
search for Steem and click on it, then click on withdrawal, then fill in the details of the transaction, then authenticate your transaction with your security method, then your steem is on it's way.
Transfer at least 50 TRX from your Binance wallet to your TronLink wallet.
I go to wallet on my binance APk, then search for yrx and click on it, then I clicked on withdrawal and then fill in the details of my transaction. Then I authenticate the transaction with my security method, and my TRX is successfully sent.
In one statement, what is the major significance of the transfers in question 4
The major significance is to show the centralised exchanges that my coin belongs to me and the only way I can claim ownership is to owner the private key of the wallet that holds the asset.
conclusion
The keys are important part of the blockchain network as the public key are use to locate a user and the private key used to identity the owner and authorize the transaction on the network. The proof of keys is a approach to keep the awareness of decentralisation which is a pillar on which the Cryptocurrency is been created upon even as the centralised exchanges are here to make the transaction in Cryptocurrency easier for all it's user.
Hello @wireless07,
Thank you for taking interest in this class. Your grades are as follows:
Feedback and Suggestions
More work should have been done in questions 1 and 2.
There are screenshots missing in question 4.
You need to work on your expression.
Thanks again as we anticipate your participation in the next class.