Proof of Keys — 2020: what will be the second event of the Trace Mayer


In 2018 a bitcoin Apostle, investor and host of the Bitcoin Knowledge podcast trace Mayer encouraged to celebrate the decade of the first block of bitcoin is generated 3 January 2009. To this end, he launched a campaign Proof of Keys (proof of possession of the keys) to Twitter. Users had to convert their bitcoins from the exchanges and hot wallets on their own cold wallets. This should demonstrate the liquidity of the bitcoin user control over their assets, and also to show whether the exchange stated amounts of coins. Despite the fact that the campaign is Proof of Keys was not massive, it highlighted problems in such marketplaces, like Poloniex, Bitfinex, HitBTC, Purse and Robinhood among others. In November of this year, Meyer called crypto-investors to repeat the action 3 January 2020. What was the last Proof of Keys, and will host the event in 2020 and whether the users of trading platforms to expect technical problems for her, understood DeCenter.

Not your keys, not your bitcoins!

American trace Mayer is one of the early bitcoin investors. He bought the PTS when the first kriptonite still cost a few cents invested in crypto currency exchange and helped Caitlin long in the drafting of legislation, Wyoming on cryptocurrency.

But the idea of Proof of Keys (Rock) does not belong to Myers. The first concept stocks appeared December 7 on Reddit — user sotashi suggested users to withdraw their bitcoins from the exchanges 3 January 2019, and then to bring them back. This was to show whether all the assets in place, and to expose the sites, you can’t trust. A few days Myers left under the post a comment and support the ideas and link to Proof of Keys website, which contains basic information about the campaign: its concept, stock exchange, support the action, and platforms that have failed 3 January 2019.

The basis of the action lies a popular idea, expressed bitcoin guru Andreas Antonopoulos: «Not your keys, not your bitcoin». Its meaning is simple — if you hold bitcoins on your wallet and on third-party platform, in fact he does not own them. These coins belong to the exchange, which can freeze his wallet, become insolvent, to be the Scam project, to use client money to inflate trading volumes or be subject to hacking. All of this has often happened.

According to an early investor, initially Satoshi Nakamoto, Creator of bitcoin, has called for the establishment of a system of electronic payments between two users without intermediaries. Modern crypto-infrastructure gave rise to intermediaries in the form of exchanges and wallets that, in essence, differ little from traditional financial institutions.

Action Rock is a stress test of the reliability of ciptofloxacin, because of unfair exchange can’t withdraw client funds on demand. It should remind users that they must control their own private keys — only in this case they will have a «financial sovereignty» to be the actual owners of coins and «cholerae of last resort» supporting the market. The campaign will also help to check if exchange have the assets claimed or inflate trading volumes.

Who supported Proof of Keys in 2019

Last year the action was supported by many well-known crypto-enthusiasts and a few large companies: bitcoin developer Nick Szabo, trader and presenter Max Keiser, the blockchain-the investor plan฿, trader and legislator Kathleen long, and also platforms Bitcoin Art Gallery, Binance, iCE3X, Coinbase CTO, The Rock Trading, Shakepay, Crypto Cast Network, XMR Wallet, Wallet, Atomic, Digital Asset Wallet, Bitfi, Bitspark, Shyft, Quppy Pay SmartCash,, Bitreon, Abra, Coindelta, Bitcoin SOV, Coinpulse, Keep Key. The site also lists several hundred private investors have joined the campaign.

The initiative had many critics. Basically they noted that the campaign fails to hit the target target audience. Real Hodler and so do not keep bitcoins on the exchanges, and unprincipled investors don’t care where stored their keys and assets, they may not even know how to withdraw funds from the stock exchange — the action will not change anything. People are more important than convenience, not principles. So they use cards instead of cash, and store bitcoins on exchanges, not cold or hardware wallets.

The results of the Proof of Keys in 2019

In General, the health marketplaces campaign the Rock is not significantly affected. The exact number of participants and the amount of funds withdrawn is unknown, but it is unlikely there were many of them.

Mayer has collected the basic user complaints on difficulties with withdrawals the day before or the day of action in section Failures on the project site Proof of Keys. Most of these cases were minor, and evidence that the problem is caused by Proof of Keys, no — it could be a simple coincidence. It seems that if not for the proximity of the stock, they would not pay attention. Consider the most striking of such cases.

HitBTC. The exchange began to freeze customer accounts without notice and to block their accounts at the end of December 2018, and the support didn’t answer. Exchange and previously were convicted of delay the withdrawal, so the users suspect it to insolvency. After a few days, the exchange explained the problem with overlays in payment gateways and KYC-audits according to the internal rules of safety. However, the problems with the withdrawal of funds did not stop until now — has been repeatedly rumored bankruptcy courts.

Bitfinex. Platform Bitfinex reported technical problems with the money withdrawal, but to eliminate them within the hour. In the comments under the tweet the company about the problems users don’t believe the site.

Coinbase. The exchange is also not functioning for several hours, then reported that the problem is resolved.

Poloniex. One user noted a problem with the withdrawal and sudden requirements of the exchange to further verify identity. But commentators on Twitter have noticed that this is a private cons of the platform.

Purse. Little-known purse also suspended withdrawals, without specifying the reason.

Robinhood. With the site happened the same problem — it stopped the withdrawal without explanation.

BiteBTC. The Singapore exchange has occupied 35-e a place on volume of the auctions — she has attracted clients a more favorable rate and high trading volumes. January 3, she also started having problems with withdrawals. The same day she announced that over 7% of coins of users are physically destroyed due to a fire in the data center that occurred on 1 January 2019. The company has promised to restore all balances and trading history from an older backup. It is noteworthy that the Proof of Keys to exchange is not the issue, did not provide any evidence of fire, and the difficulty of withdrawal, which began only on January 3. To the editor of the portal wrote a user, who told us that he lost on the stock exchange 2 PTS. The site just blocked him access to the site, and the support was silent. The editorial office tried to contact the exchange, but also received no response. Users, of course, accused BiteBTC that it was a Scam. In winter and spring 2019 users continued to complain about the blocking of funds, and in the summer accused pad of stealing cryptocurrency and bans. The exchange tried to explain it to KYC-checks, but no one would believe her and, as it turned out, correctly. In July, the site was closed, and on the old site suddenly became available a new exchange Fidelio, registered in the Seychelles.

On the website Proof of Keys is specified, all sites that fail validation action. Source.

So Proof of Keys has helped to identify a Scam project. However, most of the problems faced by the users was not serious and was quickly resolved. The exchange confirmed its reliability and validity. Most proudly noted in his Twitter that have passed the test of Proof of Keys. Except BiteBTC other projects coped with the test. And the problems with access and withdrawal on 3 January, even in such large exchanges, like Coinbase, can be explained by the fact that exchanges typically keep 90-95% of funds in cold wallets, and more or less mass output do may experience technical difficulties.

How will Proof of Keys in 2020

November 5, Mayer called on Twitter users to repeat the Proof of 3 Keys January 2020. The objectives of the action are the same. For expressions of support for the campaign, the investor proposed to add the signature «Jan/3➞₿🔑∎» to nick your account. Judging by Twitter this year the action is supported by Binance, the exchange iCE3X, anonymous investor PlanB, purse and at least a few hundred crypto-enthusiasts. The majority of participants as last year, be English or Western users. Companies Mayer offers to fill out a form to have their name appeared on the website.

Less than 60 days until #ProofOfKeys. Who will be involved in 2020? Has already added to its nickname «Jan/3➞₿🔑∎»? Just recently, a stock exchange Exchange closed Einstein canadian securities regulator (it turned out that the platform has almost no users and those lost $16 million — DeCenter). Let us also remember the $850 million, Tether and Crypto Capital (Mayer refers to the incident when Bitfinex to cover the losses of $850 million in favor of the Crypto Capital, using the tools of the Tether. — DeCenter), QuadrigaCX (deceased owner of the exchange has used clients ‘ funds for trading and translated to other platforms. — DeCenter), Mt.Gox (the exchange was closed with debts to users. — DeCenter) and others.

A good Christmas tradition

Proof of Keys is good, though naive undertaking. Of course, if all users of the exchanges withdrew their funds in one day, it rebooted the thing and could seriously undermine the market. But it’s still not going to happen — most users trust cryptomeria. However, the action makes sense and with a relatively small number of participants — this is enough to identify problem areas.

Despite their symbolism, Proof of Keys is a great reminder to users of what is the meaning of the cryptocurrency. It would be great if the action became a tradition, and the exchange wanted to pass the Rock test.

Do you support the action Proof of Keys? Why?


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