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

anmolwajid (57)Beginner[1,2,3,5,7,8,9,10]in SteemitCryptoAcademy • 3 years ago

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

When using a custodial wallet, your assets are controlled by another party, so you don't have full control of them. Your assets are stored in an account that belongs to the custodian, but it is fully under their control. A good example of this is Coinbase or any other similar cryptocurrency exchanges. They are in charge of your bitcoin for you but you don't have the private key to access them.

Example: A custodial wallet is a wallet that stores your private keys. The private key is the counterpart to a public key which allows you to access your funds or your bitcoin balance. Having a custodial wallet does not mean that you will have full control of your bitcoins as it means having another party control them for you.

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While the non-custodial wallets is a wallet that stores the private keys and allows you to fully control your bitcoins. When using a custodial wallet, your coins are stored in an online wallet.

Example: The non-custodial wallets means that you are doing it yourself and you have full control of your bitcoins. You can either be having a software wallet or a hardware wallet. The software are Internet-based applications that help the user to manage the wallets without having to download or install any software on their devices.

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Proof of Keys Day

Proof of Keys Day is happening on the 3rd of January, so you have one week to get ready. The first thing I think about is to explain to people about what are cryptocurrencies. Bitcoin is a decentralized, peer-to-peer payment solution. It is a market place that allows people to transact with each other on a global scale without middle men. On this day, I want to spread the word of cryptocurrency. Proof of Keys is a new initiative that emerged recently. The goal of this initiative is to promote the use of cryptocurrencies by the general public.

Proof of Keys Day is intended to get the general public to use cryptographic keys for transactions. It will be an important event which people can cover up with online news and social media. I personally encourage such dedicated holidays to crypto -currency. It is true that there are a few people who know about Bitcoin, however, the general public has been ignorant of it. If you use Proof of Keys Day as a chance to promote the cryptocurrency market, the transaction volume will increase significantly.

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Cryptocurrency can be considered a new type of asset class. Moreover, I think that this kind of asset class is not just that kind of securities or copper or even ETFs which have been widely used before that. Rather, they are things which can not be measured with traditional measures of value. I personally think that there is every possibility to use these assets in the future.

There are many things to consider when promoting crypto-currency, for example, it is important how to inform about the recent developments. For example, most people know about Bitcoin and not about Ethereum or Ripple. When promoting cryptocurrencies I think that it is important to change that situation into the opposite direction. Another major and rising currency is steem. I think that the total number of people participating in the steemit community is a bit higher than a year ago. On Proof of Keys Day, I want to spread the word about Steemit and encourage people to join it.

In general, I think that cryptocurrency will continue to grow in number and level in 2025. People will become more open minded about this technology and learn more about it. In order for this industry to reach its full potential we need to commend developers and other participants in this area.

Centralized exchanges vs Decentralized wallets

Centralized exchanges are a traditional way of holding and trading your cryptocurrencies. This option is a more familiar system for those who are not technologically savvy. These exchanges store digital currencies from their clients on their servers or databases, similar to how a bank or government would store currency. Centralized exchanges are more susceptible to hacking, as the private keys of these exchanges are stored on these servers which can be hacked due to weak server security.

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Decentralized wallets, also known as hot wallets, allow users to hold and trade cryptocurrencies without any third-party interference. This option is convenient for those who are technologically savvy and wish to keep full control over their cryptocurrencies. In a decentralized wallet, only you have private keys to your cryptocurrencies. Your private keys are stored securely in a digital device known as a hardware wallet which is similar in hardware structure to a USB device. The information on a hardware wallet is fully owned by the user and no one else can access the information in it, not even the owner of the hardware wallet. The disadvantage of having decentralized services is that users must be technologically savvy to use these wallets effectively. Also, if you lose your hardware wallet then you also lose all access to your cryptocurrencies. I personally prefer decentralized exchanges. They put more of the power in your hands and allow you to buy and sell more often without relying on a third party. Being able to handle my own transfers and keeping my cryptocurrency in a secure place is very important. However, I do not believe that this method of trading is the only way to do it.

Celebrating Proof Of day in #cryptoacademy style

I visited the URL and logged into my account using email and password. Then clicking on the Fiat and Spot and in the search box searched for Steem and Clicked on Withdraw button. I was navigated to the new page. On this page; address, amount and the networks are specified.

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Then a confirmation screen will appear, clicking on the continue button will ask for the Mobile and Email verification for the transaction.

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When the codes are added and the submit button is clicked It will show a receipt of the transaction, detail of the transaction is:

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Proof of this transaction is visible in the Steemitwallet as well

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For sending the TRX to the TronLink wallet; again I navigated theURL and logged into my account using email and password. Then clicking on the Fiat and Spot and in the search box searched for TRX and Clicked on Withdraw button. I was navigated to the new page. On this page; address, amount and the networks are specified.

Next we will be navigated to the confirmations screen, clicking on the confirm button will take us to the next screen where we need to enter the mobile number and the email verifications.

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This transaction is verified from the TronLink wallet as well. Whose screenshot is attached below:

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significance of the transfers in question 4

Considering the Proof of keys day, these transactions are a evidence that we are safe when we make such transactions. We are password protected in most of the cases, but these keys need to be protected at every cost.