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

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

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

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

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).

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

1) EXPLAIN PRIVATE AND PUBLIC KEYS IN RELATION TO CUSTODIAL AND NON-CUSTODIAL WALLETS.
Private Key in Relation to Custodial Wallet: First, a private Key is a kind of password that is supposed to be personal and private, i.e only known and owned by the users themselves, for the safety and free access to their assets whenever the need arises. It is a proof that a user is the owner of a particular wallet and assets. A custodial wallet on the other hand is a kind of wallet that is under the supervision of intermediaries or third parties. The owner of the wallet only owns the assets while the intermediaries makes use of the assets without the consent of the owner.

Now, the relationship between the private Key and the custodial wallet is that the private Key which is supposed to be personal and private is known by a third party, which means that the third party now controls the assets in the wallet which is in their custody. The fact about custodial wallet is that, the third party(ies) might choose to do whatever they like with the assets in their custody without permission from the real owner. The owner might sometimes not get the money or have access to his assets as at the time needed.

Public Key in Relation to Non-custodial Wallets: A public key is a kind of passcode for the encryption of an assets. This kind of key can not be used to unlock a wallet and have access to the assets in it as it acts as the "account number" for transferring funds therein and it is known by the public. A non-custodial wallet opposes the custodial wallet. It is one which is not in control of any third party or intermediaries. Unlike the custodial wallet where the third party owns the private Key and controls the assets, the non-custodial wallet is under the control and custody of the owner himself, where his private Key is known to him alone and assets controlled by him.

The public key is related to the non-custodial wallet because assets and coins can be freely sent to the wallet by anybody. Everyone controls the public key as they have access to sending coins to the wallet but cannot take from the wallet as the owner is in control of the private key for the decryption of the assets. The owner also owns the public key.

2) WHAT DO YOU THINK OF THE PROOF OF KEY DAYS? WHAT PRECAUTIONS WOULD YOU TAKE WHEN PARTICIPATING?
The Proof of Keys Day: This can be defined as a day which is set aside for the claiming of ownership or taking of control of assets in the world of cryptocurrencies and it usually occurs on the 3rd of January the same day the first crypto block(Bitcoin) was mined. On this day, people withdraw their cryptocurrencies at the same time from centralized blockchain wallets to decentralized ones. I think the proof of keys day is a very essential day to be encouraged in the world of crypto because with it one will be able to have full control over their funds or assets. The issue of hackers will be minimize because it is not easy to hack a decentralized blockchain wallet. There are a lot of precautions to be taken when participating in the proof of key days:

• Address- Always make sure the right blockchain address is filled in the space for 'address'. The essence of this is to avoid losing your funds to a different account.

• Network or blockchain - Be sure to input the right blockchain name or network eg. Tron, Bitcoin steem, etc.

• Safeguard your Keys: You must know that your private key is your life and you have to safeguard and protect it with whatever it takes. If it is ever lost, then all your assets are useless and waste.

• Be sure to have a good knowledge about the proof of key, how it works and how it is done before participating.

• Memo - Make sure the right memo is input if it is needed.

• Trusted Decentralized wallet - Make sure to transfer your assets or funds to a trustworthy decentralized exchange. Do not just jump into making transfers because other people are.

3) DO YOU PREFER CENTRALIZED EXCHANGES OR DECENTRALIZED WALLETS FOR STORING YOUR CRYPTOCURRENCIES? WHY?
First, a centralized exchange is referred to a kind of exchange that is controlled by a central authority. The affairs that is carried out in a particular centralized wallet is oversee by an intermediary. This type of wallet is synonymous to the custodial wallet. It has the private keys of the users and can access their wallets anytime and carry out whatever task they want to. A centralized exchange is not all that secured as it is prone to attack and hack since the central authority knows and controls the private key.

A decentralized wallet on the other hand is a kind of wallet that is not controlled by any third party or central authority. The user has full right and authority over his wallet and assets. His private key is safe and secure since it is known to him and only him. This also means that his assets are secured as well and hackers cannot easily attack the wallet except they have access to the private key. Access to a decentralized wallet are not limited since it is not controlled by any central authority.

With the above definition of both centralized and decentralized wallets, I'll say that I love and prefer the decentralized wallet for securing and storing my cryptocurrencies. With the decentralized wallet, I'll have full control over my assets and my private key will be known to only me.

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 SCREENSHOT AND MAKE SURE YOU HAVE YOUR KEYS)

a.) Transferring 20 steem from my binance wallet to my steemit wallet.
Below are the screenshots of the steps taken:

1. Log into or open the binance app then click on 'wallet'

1. Click on spot on the next slide as shown
   

   

2. My assets will be displayed with it's amount. As can be seen I have 23 steem so I clicked on it.
   

   

3. There are two options to select from, since I want to make a transfer, I clicked on withdrawal
   

   

4. I filled in the needed information. My address which is my steemit username, the network which is Tron, the memo and the amount of Steem to be transferred which is 20 and I then clicked on withdrawal.
   

   

5. Although I didn't fill in the memo, I submitted the order
   

   

6. I then confirmed that all the information given are accurate.
   

   

7. My withdrawal request was submitted and it was successful.
   

   

Here are the proofs on my steewallet.

b.) Transferring 50 Trons from my binance wallet to my tronlink wallet

1. I have 55trx but I'll be transferring 50trx, so I clicked on it as shown on the screenshot.
   

   

2. Clicked on withdrawal
   

   

3. I input the address, the network and the amount of TRX to be transferred and then clicked on withdrawal.
   

   

4. The transaction is completed and successful.
   

   

Here is the proof of the transaction on my tronlink wallet. A transaction fee of 1trx has been taken.

5) IN ONE STATEMENT, WHAT IS THE MAJOR SIGNIFICANCE OF THE TRANSFERS IN QUESTION 4?
The major significance of the transfers is to claim ownership and control of my assets which has been transferred from the centralized exchange/wallet(binance) to a decentralized one(steemit wallet and tronlink wallet).

CONCLUSION
It's been great learning about the proof of key which has been taught by our honourable professor @awesononso. You have really done a great job sir. Thank you for impacting the knowledge of cryptocurrencies in us.