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Do your bitcoins really exist?
The answer may seem like an obvious "yes", but the motto "Proof of the keys", launched today, argues that the answer is not so clear.
The way a person is in control of their coins depends on where and how the bitcoins are stored. Then the participants will withdraw their money from third-party bitcoin services, transferring them to accounts that only they control themselves.
"We will withdraw all of our bitcoins from any third-party service just to prove they are there," said Proof of Keys leader and bitcoin podcast host, in a video announcing the project, adding:
"It's on the blockchain or it did not happen."
As described by Mayer, the motivation is simple. Many bitcoiners leave their bitcoins on exchanges. This is risky as millions of billions of dollars have been subtracted from trade through the hacks over the years. Not to mention, it means that users do not really have full control of their money – a fact that many may not realize.
The movement debuts on the 10th anniversary of the first bitcoin block, the day the anonymous bitcoin creator turned his theory into a living and breathtaking digital currency.
Keys' trial has been likened to a "bank race", in which a sea of people withdraw their money from a bank, worried that the institution is going into crisis. But unlike old-style racing, this is pre-programmed and deliberate.
If enough people pull their money out of the trade, supporters argue, they will expose, and perhaps reduce, those who are operating as fractional reserve banks (ie keeping only a sliver of depositors' money available and available for collection).
Big names like the former president Symbiont Caitlin Long, the pioneer of the intelligent contract Nick Szabo, the CBA Coinbase Balaji Sr. Srinivasan and the managing director of CoinKite Rodolfo Novak have all engraved the symbol Proof of Keys in their profiles Twitter. Even bitcoin companies like Shapeshift and Casa have given their support behind the effort.
To take control
So, what do the participants have to do? Not much or a lot, depending on the user's point of view.
The first task is for users to take control of their private keys. While the bitcoin is "without trust", most users deliver their own bitcoins to a third party who takes care of it for them. The risk is that if this service is violated (or drops for another reason), all bitcoins are lost.
Supporters of "Proof of Keys" claim that users need to move their private keys to a device, such as a secure hardware portfolio, where they actually have full control over their money.
The second task for users is to run the so-called "full node" bitcoin, which preserves a chronology of every transaction ever made on bitcoins, as well as the rules that tie together the global network. In this way they can validate which transactions are following the rules, without relying on anyone else. (Developers have compiled millions of setup guides, you can buy nodes that work out of the box too.)
If this seems like a bite, some users have already done it, posting their results on Twitter. And supporters argue that the learning experience (however expensive in terms of time) is worthwhile.
"Learning how to do it will teach you private keys and monetary sovereignty" tweeted Srinivasan.
Mayer takes it a little further.
"Anyone who does not want you to have your private keys is your monetary enemy, they do not want you to be free and independent with your money," adds Mayer. "It's just like that."
But participating users must be careful.
"There is some legitimate concern that some people withdraw their funds from exchanges without knowing how to properly conserve them," wrote Bashco, pseudonym of bitcoin subreddit moderator, posting some tips for a safe transition.
War cry against the camaraderie
One might ask, how much impact will this day have?
A confusing aspect is that while today is the official day of "Proof of the keys", not everyone is taking part in the same day. Some users have taken control of their keys to date, publishing their results on social media.
Also, it will be quite difficult to keep track of how much of the community will change, Mayer argued about CoinDesk: "In reality, it's a type of intensely personal activity that will be difficult to measure."
But, the way some users talk – calling Proof of Keys "bitcoin independence day" and "war cry of monetary sovereignty" – it seems that the ultimate goal is for all cryptocurrency users to move their keys on a device that control and run all the nodes on fancy hardware devices, making bitcoin exchanges all but obsolete.
But Mayer expects the result to be less subversive – and more of a bonding experience.
"I think most companies and people will operate normally without significant disruption, the bitcoin network will be strengthened in its decentralization properties and many individuals and the community will have a sense of achievement and camaraderie," Mayer told CoinDesk.
And other Proof of Keys supporters admit that many users appreciate convenience, not necessarily having the time or the enthusiasm to store their bitcoins safely and create a complete node.
As a profitable user said:
"If you even help a handful of newcomers or veterans, create your wallet and begin to understand how their assets are stored, great." I do not expect anything big to happen. "
Image away CryptoScamHub Twitter
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