Directory

• What is key certification?
• Four important results of "Key Proof Day"
  • Guide new investors on how to transfer funds
  • Serve as a reminder to investors who own private keys
  • Expose illegal or fake trading platforms
  • Celebrate the birth of the Bitcoin genesis block
• How to participate in the key proof movement
• Summary

Introduction

To ensure financial independence, it is crucial to ensure the security of private keys. However, many cryptocurrency investors choose to hold their funds on a single trading platform. However, this method is not safe because the trading platform will have complete control over the user’s cryptocurrency deposits.

Since the birth of Bitcoin, billions of dollars have been lost due to hacking attacks and fraud on trading platforms. The hacker attack on the Mt.Gox trading platform in 2014 was particularly sensational and is still under investigation.

How does this relate to "Key Certification Day"?

What is key proof?

The proof-of-key concept was developed by cryptocurrency investor and podcaster Trace Mayer. The purpose of this annual celebration is to encourage cryptocurrency investors to take back their monetary autonomy.

As mentioned before, many people store cryptocurrencies on trading platforms. However, there are bound to be security risks in doing so, because these trading platforms have complete control over the private keys of the recharge addresses.

In response to this situation, the "Key Proof Day" aims to dissuade investors from relying on trading platforms and not to easily store cryptocurrency on trading platforms. This concept is often presented in a short and concise slogan: defend the keys and keep Bitcoin firmly in your hands (not your keys, not your Bitcoin).

The first "Key Proof Day" event was held on January 3, 2019, which coincided with the tenth anniversary of the successful mining of the genesis block on the Bitcoin network.

In other words, "Key Proof Day" is a day to celebrate financial autonomy. The purpose of the campaign is to encourage cryptocurrency investors to move funds from trading platforms to personal wallets. Investors maintain tight control of their private keys, ensuring that no one but themselves can touch their funds.

There are various cryptocurrency wallets on the market. Hardware wallets are the most secure way to store your private keys, making them a clear first choice.

Four important results of "Key Certification Day"

&ldquo "Key Proof Day" coincides with the concept of Bitcoin. By switching from a third-party intermediary to a trustless value transfer system, individuals can safely and securely cooperate with each other without giving up their monetary autonomy.

So, what are the important results of "Key Certification Day"?

Teach new investors how to move funds

Cryptocurrency investors can freely transfer cryptocurrencies. For some, this is a breeze, but newbies often wonder about the types of wallets and their uses.

Therefore, "Key Proof Day" encourages investors to learn more about the different cryptocurrency wallet types and practice using them. This will also remind users how value transfer operates through a decentralized blockchain network.

Remind investors who own private keys

As mentioned before, the main purpose of Trace Mayer's initiative to establish a "Key Certification Day" is to allow every cryptocurrency investor to hold the private key in his or her own hands. Cryptocurrencies are stored on trading platforms, meaning investors do not have any actual control over their funds.

Although "Key Certification Day" is only held once a year, it can urge all investors to take control of their funds. The purpose of this day is to effectively remind investors to clarify the ownership of their personal assets, but if investors do not actively cooperate by ensuring the safety of their assets, the meaning of the event will be lost.

Expose illegal or fake trading platforms

Financial institutions usually use partial preparation gold banking system. Essentially, this is a way for institutions to leverage existing deposits by lending out more money than is actually deposited. Unfortunately, this approach is extremely risky for depositors. Once a run occurs, it may lead to the bankruptcy of the institution.

In the cryptocurrency world, "Proof of Key Day" encourages thousands of investors to withdraw personal funds from trading platforms. If most investors choose to withdraw funds on the same day, then trading platforms that operate on fractional reserves or falsely advertise actual reserve amounts will surface.

Fortunately, however, the transparency of Bitcoin and other blockchain networks allows funds held by trading platforms to be publicly verified.

Celebrate the birth of the Bitcoin genesis block

Finally, “ "Key Proof Day" is also to celebrate the birth of the first block in the Bitcoin network and its name "Genesis Block". The genesis block contains the first transaction of Bitcoin, when Satoshi Nakamoto sent 50 Bitcoins to Hal Finney.

Another memorable transaction occurred on May 22, 2010, when someone purchased two pizzas for 10,000 Bitcoins. This wonderful story is what is now widely known as Bitcoin Pizza Day.

How to join the proof-of-key movement

Whether you are new to cryptocurrency or an experienced user , everyone can participate in the "Key Certification Day" event, the method is very simple. As mentioned earlier, this concept promotes financial autonomy by withdrawing all funds from the trading platform or other third-party services.

First, this will allow you to take stock of all the funds you have stored on your cryptocurrency exchange and figure out where your Bitcoins and altcoins are stored.

Next, pick a cryptocurrency wallet that you feel comfortable with. When choosing a wallet, in addition to considering ease of use, you should also weigh the security level of each wallet. The final step is to transfer the funds to a personal wallet so that the individual has control over the private keys.

Some people participate in the "Key Proof Day" movement every year. They moved funds out of the trading platform on January 3 to celebrate and declare their financial autonomy.

This practice is more common among active traders because funds need to be held on the trading platform to trade. After the celebration is over, they transfer the funds back to the trading platform. However, long-term investors (holders) who do not engage in short- to medium-term transactions would be better off keeping their funds in a personal wallet.

Summary

"Key Certification Day" activity is simple, but It is of great significance and can serve as a reminder to cryptocurrency investors who actually own the private keys. Millions of cryptocurrency enthusiasts participate in this event to move funds from trading platforms to personal wallets.

As the blockchain industry continues to develop, events such as "Key Proof Day" can not only emphasize the importance of private key ownership to the community, but also allow them to understand general security principles.