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

I am going to do today's homework in the light of the knowledge I have acquired from the given lesson and my research to you. So no intro, Let's start.

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

Public key

Understanding the meaning of the word Public will make it much easier to understand this concept. What we usually mean by public is that something is not a secret or something that can be shared with everyone will not cause any harm or problem so it is public. But are you thinking that the key is something that can be shared with everyone? Interesting thing here is let's get an idea about the key to decentralized system. Steamite is a decentralized social media here usually has different types of keys.

We usually see two types of keys here, one is the public key and the other is the private key. A vivid example of a public key is our steemit username such as @nazmul1. In this key we can transfer assets if we want. That means there are opportunities for asset transfer. But the important thing is that the owner of the property cannot be the owner of the property only if it is public key, because having a private key can be a real Owner.

Private key

One thing we can certainly guess from hearing the word private is where not everyone has allow. Yes, thats right private key is very secret for owner. Even if you have a large property in your wallet, you cannot own that property if you do not have a private key. For example, if I have a lot of steem or sbd in my wallet and if I don't have private key, I will never be able to transfer that steem.

Custodial Wallet

The entire conventional financial system of the world stands for Custodial Wallet. A burning example of a custodian wallet is a conventional bank account. The controlling power of this wallet is not only with Wallet Honor but also has third party access.

Non-Custodial Wallet

Non-custodial Wallet totaly opposite from Custodial wallet. No one can access in the wallet without owner. The example of noncustodial wallet is Trust Wallet. It is a decentralized wallet and has no third party intrusion and is relatively safe from the Custodial wallet.

Private and public Keys in relation to custodial and non-custodial wallets.

We have learned from the detailed discussion of the above two types of wallets that non-custodial wallets are usually of two types key, one is a private key and the other is a public key. There is no value of public key without private key especially in case of non-custodial wallet. We have found that the private key can use third party in Custodial wallet is a big advantage for us. Private key in non-custodial wallet is more secure than custodial wallet. I believe that when the benefits of non-custodial wallet reach every part of the world, people will be more inclined towards this wallet.

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

As I discribed earlier, in decentralized financial system has two types of keys. I have also highlighted the advantages and disadvantages of these two types of keys. A day is celebrated for new investors to be aware of the use of private key and its importance. This day is celebrated on 3rd January in every year.

The proof of key day is a day when crypto users are encouraged to switch from custodial wallet to non-custodial wallet. This means that on this day custodial wallet users celebrate the day by transferring the asset to a non custodial wallet.

There are some precaution to be taken in transferring AS wallet from one wallet to another which are given below.

• What is private is very important for non-custodial wallet. You need to make sure that this key is stored properly.
• You have to be very careful while giving the wallet address as it is almost impossible to recover the asset if it is transferred to the decentralized wallet by mistake.
• Where memo is to be used, it must be used with caution.

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

We can have different opinions of different people in answer to this question. For cryptocurrency storing, I will try to express a specific opinion considering the advantages and disadvantages of 2 wallet.

• Centralized wallet more safer than centralized exchange.
• Decentralized wallet is not so easy to hack. But we often hear of centralized exchange hacking.
• In a centralized exchange, your private key remains in a third party. But decentralized systems don't have that opportunity. The only thing you can do here is save the private key of yours.
• Transactions free in a centralized wallet from a relatively low in decentralized exchange.

From the above advantages and disadvantages we can easily understand the advantages of decentralized. All things considered, I prefer decentralized wallets for crypto storing.

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).

Now I will transfer 20 steem in my @nazmul1 account. I will show you step by step.

Step: 1

^{Screenshot from my phone}

Step: 2

^{Screenshot from my phone}

Step:3

^{Screenshot from my phone}

Step:4

^{Screenshot from my phone}

Step:5

Finally done

^{Screenshot from my phone}

Trx Transfer

Step:1

^{Screenshot from my phone}

Step:2

^{Screenshot from my phone}

Step:3

^{Screenshot from my phone}

Step:4

^{Screenshot from my phone}

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

I have transfer Steem and TRX successfully. There did not face any problem to transfer funds that is why I can say that I have full control in my Binance account. So the transfer signifies that I am only one person who is the owner of the asset and I can do whatever as I want.

Conclusion

Here, I want to summarise some of the most outstanding aspect of the lesson. We have learned about various aspects of Proof of Key day through the lesson. The example of the lesson which used by Professor that was very interesting and realistic. This type of example gives me pleasure. We have learnt a lot of benefits of non-custodial wallet as well as the disadvantages also. Overall lecture was educative to me.