Proof Of Key – Everything You Should Know about The Principle
The Proof Of Key Principle
For two consecutive years, a large-scale event has been taking place in the crypto community that helps expose insolvent exchanges. The action helped protect the assets of some users and seriously hit the reputation of several platforms.
In 2018, one of the Reddit users under the nickname Sotashi invited the entire community to withdraw all bitcoins from exchanges on the same day, and then return them. These actions would help to understand whether all assets are really in place and expose sites that cannot be trusted.
At first, the idea was supported by the famous Bitcoin investor and host of the Bitcoin Knowledge podcast, Trace Mayer, and then by many other crypto enthusiasts, for example, Max Kaiser and Nick Szabo. Cryptocurrency platforms agreed to participate in the action: BTC.com, Binance, Coinbase CTO, Bitfi, Bitspark, Abra, Coinpulse, Keep Key, and others.
Today, on Twitter, you can find quite a few posts of ordinary users who actively support the Proof of Key principle, since participation in this action helped them protect their cryptocurrency. For example, a trader recently nicknamed Brad Mills shared his experience.
Main Rules to Perform Proof Of Key
A peculiar motto of the action was the statement of bitcoin guru Andreas Antonopoulos: “Not your keys, not your bitcoin.” This phrase explains the main point of the express check, which enthusiasts have been conducting for the second year already – all the bitcoins that the user holds not on his wallet, but on a third-party site, they belong to it. Moreover, any exchange can be hacked or become a scam, and platform owners can go bankrupt, freeze user wallets or overestimate trading volumes.
In fact, Proof Of Key is a test to check the reliability of crypto sites and reminds users that it is necessary to carefully control their own private keys and be the actual owners of their coins.
No special knowledge, efforts, or investments are required from investors to participate in the action. For the second year in a row, Proof Of Key is held at the same time – January 3. Everyone who wants to participate in the event should withdraw all their bitcoins from exchanges before the indicated date and, on this day, do not conduct any transactions in cryptocurrency on trading floors.
Despite the stated problems, the action of RoK did not refuse a strong influence on the performance of trading floors. However, the event made many investors and traders think about the correct choice of a trading platform. It is not yet possible to calculate the exact number of participants in the action and the number of funds withdrawn. Still, it is possible in the future when the Proof Of Keys campaign becomes a tradition, and such data will be easy to find out.