Proof of Keys - Steemit Crypto Academy - S4W7 - Homework Post for @awesononso
INTRODUCTION
Am very happy to participate in this week homework which is all about proof of keys and as such will be giving my best to be able to answer the questions being asked in order to complete the task.
Explain private and public Keys in relation to custodial and non-custodial wallets.
private keys.
To me, private key are keys that a cryptocurrency user must have to be able to access his or her account. As the name implies, private, there are keys that is only owned by one person, which is the owner of the wallet and to be kept safe because with this key the owner can be able to access funds in his or her wallet and by this are not shareable.
The are always given once their blockchain account is created for example in steemit we received our private keys when we open our steem account and in a particular begginers beginners task we were taught this type of key that there are of three forms which are the private key, which is the combination of alphabet and number, the second one is mnemonic key, which is the simplest there are simple words that are arranged in rows and columns and can be memorize, lastly the keystore file which is a JSON file is the hardest, it is the combination of alphabet, numbers and symbols and one thing to note about all this keys is that the should be kept safe.
Another thing to note is that each private keys has it own place of functions such as the one to login is different from the one to process transaction.
public keys
Just has the private keys is private which means it is not shareable, public keys is inverse of private keys, this type of keys is shareable because with it someone can transfer funds to your wallet for example my steemit username is @joelmaxwell, if someone want to transfer steem to me I will give him or her my username.
Public key is just like the user wallet address.
In relation to custodial and non-custodial wallets
In custodian wallet, The private and public keys is exposed to a central authority that is the third party. Here you are the owner of the account but it is managed by a third party.
In non custodian wallet, is inverse, here you are in possession of both key and the manager of the account it is like the decentralized system you control and monitor what happen to your account which means you can use the funds anytime, any moment and in your comfort zone.
What do you think about the Proof of Keys Day? What precautions would you take when participating?
proof of key
The proof of key is a day in every year that is set aside mainly to educate, enlightened and to do promote about the decentralized system among the user of any particular blockchain.
The proof of key is always celebrated on the 3rd of January of every year and on this day people always cast their mind back on how the cryptocurrency came about, the day also helps individual or user of cryptocurrency to perform verification in any of the exchange application or website, that the have strong security network and are trusted, problem free.
It is also important to note that this day 3rd of January was also the day that the first bitcoin was mine and we alway celebrate Satoshi nakomata for his great effort toward the innovation he brought.
On this day people are also educated about what private keys is all about and how the should be protective because it is a key that also certified that you are the true ownership of a particular account.
precautions
security
My first precaution is to make sure that I protect my private keys from another person, keep it safe and not share it with anyone to help me protect my wallet.Careful of exchange website or application
I will always be careful of the exchange website and read the terms and conditions to make sure it is legit and so that I don't fall into the hands of fraudsters who will run with my assets.Observant when doing transaction
I will always be observant when am performing transaction to be sure that the rate at which I am being charged is low and legit.Blockchain Network
I will always choose a block chain network that has a string security network which means it is not prone to hacking and it is trusted.Verification
Make sure that my blockchain account is verified to boost my chances of performing huge transaction and my withdrawal limit extended.Memo and wallet address confirmation
I will always confirm the user wallets key and memo keys to avoid me sending fund to wrong account and loosing of funds.
Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?
I will prefer the decentralized wallet with the following point.
Reason:
when it comes to the decentralized wallet, I am in possession of my private key(not shareable)and I can control my account the way I want but public keys is shareable.
The speed limit at which I can change my cryptocurrency asset to my country currency is easy and fast.
It is trustable in that the security level is high and I will be rest assured that my asset are safe.
Here my funds are being manage my me and I can do whatever I want, also monitor the account.
Here, the transaction charge rate is always low
Let us assume it is Proof of Keys Day: a.)Transfer at least 20 Steem from your Binance wallet to your Steemit wallet.
I will assume today is proof of keys day which is a very important day when it comes to blockchain. I will perform a transaction by transferring at least 20 steem using my binance account that is verified.
Step 1
I will first of all open my binance mobile application then I click on wallet as shown in the screenshot below.
[Screenshot from binance]
step 2
After clicking on wallet , it will open my wallet in which you will see that I have 23 steem and I will now click on steem to proceed.
[Screenshot from binance]
step 3
After clicking on steem a page with my steem amount will show where I will proceed with the transaction by this I will click withdrawal since am transferring to my steem account.
[Screenshot from binance]
step 4
After clicking on withdrawal a page will pop up where I will insert my details and from the precautions I listed earlier I will be very careful so as not to send my funds to another account which means I will lose it, so I will have to be careful.
I will insert my steem username the amount to transfer and i will be charged 0.01 network which is low and another reason I prefer decentralized exchange to centralized exchange after inputing my correct details I click withdrawal
[Screenshot from binance]
step 5
After inserting my details, I will still be ask my the exchange application to confirm incase of error which is very good
[Screenshot from binance]
step6
Step 6 is where you will be sent a code to your mail and phone number here, screenshot is not permitted for security reasons but I will drop my mail and inbox massage I received
[Screenshot from SMS]
[Screenshot from my mail]
step 7
After putting the verification codes my transaction was submitted and successful
[Screenshot from binance]
step 8
I will confirm in my steem account, it was really a nice experience as a first timer.
[Screenshot from steemit wallet]
To transfer 50TRX from my binance wallet to my tronlink wallet here are the step.
I will be transfering 50 trx from binance wallet to tron link with the following steps.
step 1
I will first of all open my tron link account and since am work I will click on trx, from the screenshot you will see that I don't have any trx in my tron link account.
[Screenshot from tron link]
step 2
A page will appear with my trx balance, if I want to send or receive and I will click on received so that I can be able to get the address
[Screenshot from tron link]
step 3
Here, I will be able to see the address and copy I can also save QR code.
[Screenshot from tron link]
step 4
I will now go back to my binance account, click on wallet then tron to proceed.
[Screenshot from binance]
step 5
Here, my tron will open and the amount of tron I have will display and I will click on withdrawal
[Screenshot from binance]
step 6
After clicking withdrawal a page will show in which I will lit the address I copied from tron link wallet and the amount I want to transfer, I will be charge a network fee of 0.99trx.
[Screenshot from binance]
step 7
Here, I will confirm the wallet adreas then I click on confirm.
[Screenshot from binance]
step 8
Here, is the screenshot of the transaction that have been summited and successful
[Screenshot from binance]
step 9
I received a notification that my transaction was successful from tron link wallet
[Screenshot from tron link]
step 10
From my tron link account you will see that my account is boost because of the transaction.
[Screenshot from tron link]
In one statement, what is the major significance of the transfers in question 4
The significance here is that am the manager of my account and in control of my assets, I can use it as I like which is what happens in decentralized exchange no third party involvement unlike when it was in binance wallet which is a centralized exchange(third party) that I own the funds but managed by binance
I was also careful when performing transaction especially when making use of the public key.
Conclusion
I am very grateful to prof @awesononso for this interesting lecture, I have really learn alot from the theory aspects to the practical aspects. It was really interesting, I also now know what proof of keys is all about and I. Hope to do my best