Proof of Keys- Steemit Crypto Academy- S4W7- Homework Post for @awesononso

Hi prof. @awsononso,
I am so happy to have learnt a lot from this great lecture. I have learnt what the proof of keys day is and also why this event was initiated.
Now I will attempt the the following questions

Question 1

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

In cryptography, keys are a spring of numbers or letters that are stored in a file which can encrypt or decrypt data.
The two main keys which are the public and private keys are used for encryption and encryption of private messages.

The public key is used for encryption of data. It is accessible to the public and can be seen or shared with others.
Public key is more like the email address. It can be shared with others and it allows the user to send or receive funds.
Any public key is paired with a unique private key.

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A private key is used to decrypt private messages. It is difficult for attackers to compromise the server and read a sent encrypted message without the private key.

Both the public and private key helps to secure the exchanged data. Using both keys assures recipients of integrity of the data because without the private key, messages cannot be decrypted or unlocked.

Custodial wallet

In custodial wallet, the private key are in the possession of a third parth. The third party manages the assets in the users wallet and makes financial decisions for the owners of the keys.
This is to say that the user do not completely own his account as it is controlled by a third party.
This third party can choose invest the user's crypto assets and also make their own profit. The user takes permission from the third party before he can get hold of his assets.
This is similar to the local banking system where the bank can choose to use our money and return it tonus on demand.

Non-custodial wallet

In non-custodial wallet, the private keys are in the hands of, not a third party, but of the actual owner. The owner has sole control over his assets and do not need permission from any one to make use of his funds.

Question 2

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

The proof of keys day is an important event that is set aside to remind all crypto users of ownership to their keys. It is a day when investors withdraw their crypto assets from custodial wallet and transfer to non-custodial wallet where he will have absolute control of it.
The proof of keys day is celebrated yearly on jan 13.
It also aims at teaching investors how to use their private thier private keys.
This is a great initiative because crypto users need to be educated on how to use their private keys.

precautions

To participate in the proof of keys day, one must have his own wallet address where he owns a private key.

If we intend to move coins we withdraw on the proof of keys day back to the exchange at some point, we need to use a temporary address because exchanges can track the address associated with our account. Withdrawing all our funds allows to a personal address means we are associating the address with our identity.

We should take care not to use compromised keys and make sure we use the correct blockchain address.

Also we should keep withdrawal limit in mind.

Question 3

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

I prefer decentralised wallet because because it gives me full control over my crypto assets. I can handle my keys and have assess to my coins without platform supervision. No third party is involved , i manage and maintain my assets myself.

Another reason i prefer decentralised wallet is that it prevents market manipulation and reduces hacking risks. Only i have the full control of my private keys and without these keys, it is impossible for hackers to access my wallet.
Also in a decentralised wallet, very low transaction fees are charged and they are also very fast and reliable.

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.
.

Step 1: I opened my binance homepage and clicked on wallet

I then clicked on steem

Next step i click on withdrawal

After clicking withdrawal, a new page appeared where I filled a form. I filled in the wallet address, memo the amount i am transferring including the fee charged for it.

After that another page appeared where I was expected to crosscheck my work to see if every information I filled was correct and then i comfirmed transfer.

After the above step I clicked on the send code option and codes were sent to me in which i filled in and completed the transaction.

I then went to my steemit wallet to check if the transfer was made successfully

Question 4b

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

After copying the recievers address from my tronlink pro account, I headed toy binance and opened the homepage and clicked on wallet.

I then selected tron

After selecting tron, I will see my tron balance in the next page. I clicker on withdrawal

After that I filled in the address I copied from my tron link account and also the amount I want to transfer including the fees for it. I then clicked on withdraw

The next page is where I will be asked to confirm the filled information to check if everything is correct.
After cross checking I click on transfer to complete transaction.

I then confirmed transaction from my tron wallet account.

Question 5

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

The transaction was very quick and also reliable.