This January 3rd, many in the global crypto community will take part in the annual Proof of Keys day. For those of you who are new to crypto or haven’t heard of #ProofofKeys, we’re here to break it down for you. Learn about Proof of Keys, why it matters, and how you can be a part of it.
🔑 What is Proof of Keys?
Proof of Keys takes place on January 3rd, the anniversary of the Bitcoin Genesis Block — the first Bitcoin block ever to be mined. It was started by Trace Mayer, founder of the Bitcoin Knowledge podcast, as a way to celebrate the financial freedom that the creation of Bitcoin allows.
To take part, Mayer asks the crypto community to remove their funds from exchanges on January 3rd as proof of their existence, and a recognition that your crypto isn’t yours unless you’re holding the keys.
So why does this matter?
Taking your assets off of an exchange may sound like an inconvenience, but it’s an important act for two reasons:
- You should always have a secure wallet ready to be used, you should build the habit of pulling your funds within your control.
- By withdrawing from central parties once per year, insolvency can be exposed. Proof of Keys is about testing central parties to prove that the crypto they claim is there, is actually there.
After all, exchange hacks are common. Exchanges create “honeypots” for hackers, and just as humans are flawed, neither are our defenses against hacking infallible. Stories like Mt. Gox and Quadriga happen every year, and nobody should wait for an exchange to be hacked to recognize that they don’t have full control of their digital assets.
Controlling your funds is in line with the principles that Bitcoin was founded upon. Crypto enables financial freedom, and the ability to take control of your assets like never before. By not holding your keys, you’re giving up the fundamental freedom that Bitcoin and other cryptocurrencies allow.
How can I take part?
Taking part is easy. In the short-term, simply pull your funds from custodial exchanges for at least the entire day on January 3rd, 2019. If you want to put those funds back with a custodian later, that’s obviously your choice, but the action proves you really have the funds you think you have.
Take Control of Your Crypto
If you want full ownership of your funds, consider using a hardware wallet like KeepKey, Ledger, Trezor or creating a noncustodial web wallet like Portis. Trade through a self-custody solution like ShapeShift, which integrates with these wallets so you maintain control. With ShapeShift, your keys are your keys, and that means that you’re in control of your crypto.
Proof of Keys goes back to the roots of Satoshi’s principles, and we’re here to help you get there.
Create a ShapeShift account & receive a KeepKey hardware wallet for only $10. Get 100 FOX tokens when you signup & trade for free in the ShapeShift Platform.