Trace Mayer is the man behind the latest bitcoin algorithm, Proof of Keys. According to him, as bitcoin left on the exchanges was prone to thefts and hacks, people didn’t have control over their bitcoin. With the latest algorithm that is launched on the tenth anniversary of bitcoin, people are given a way to control their bitcoin on their own as Proof of Keys enable users to keep the possession of their keys by themselves in order to prevent the current practices that hand the control of the bitcoin of users to a third party.
Although the official launch of the Proof of Keys was on 3rd January 2019, all the users weren’t on the same page as some had already taken their keys and even posted results on the social media. All users were expected to take their bitcoin from exchanges or third party applications in order to verify if that exchange or application holds the bitcoin they claim to hold in the first place.
Proof of Keys is said to be identical to a ‘bank run’. A bank run occurs when a majority of the users withdraw their money from the bank as they expect the bank to cease in near future. In the case of Proof of Keys, it’s bitcoin instead of money and exchanges in the place of banks.
Up till now, Proof of Keys has found the support of many influentials and major companies. Blockchain, Keepkey, Shapeshift and Casa are the companies who have shown support to Proof of Keys. Some exchanges such as Lykke and Ethfinex are also backing up the latest algorithm. Influentials such as Caitlin Long, Nick Szabo and Rodolfo Novak have shown approval for Proof of Keys on their twitter profiles. They have usually inserted a key symbol in their displayed profile names to manifest their consent.
According to Mayer, anyone not granting the control of keys to the user is their ‘monetary enemy’. Users are deprived of independence and freedom of their own money when they don’t have control of the key. Therefore, Proof of Keys was built with the motivation to strengthen the user by bringing control back to him. For determining whether the concept behind it prevailed or sank, we will have to wait for some time as only then, a conclusion about the success of Proof of Keys can be determined accurately.