PROOF OF KEYS
In the world of cryptocurrency where wallets play an integral part in asset management, keys are very vital in keeping control over your wallets.
Not only you should take care of your account credentials such as login ID and password when you enter the world of cryptocurrency. Since cryptocurrency operates in a pure technological network it is important to understand the safekeeping of your assets. It is given that wallets are needed to store your assets (coins, tokens, etc.), so safe keeping of your wallet must be taken with utmost priority. The basic concept of wallet safekeeping is entrusting you with keys and taking responsibility for keeping them safe and confidential.
Unlike any other online accounts that you can access through user ID and Password, crypto wallets are harder to recover than simply requesting a reset link like that of your regular accounts.
When you first create a wallet like on ethereum wallet you are given mnemonic phrases that serve as the soul of your wallet. This works as an ultimate password. It will not only grant you access to the assets you put into that wallet but it gives anyone who has these phrases the superpower to manipulate the assets ultimately transfer them to a new address and most of the time transactions created by accounts access by these phrases are IRREVERSIBLE. So yes, this is the very reason why you should safeguard these phrases from the very start you create your wallet.
When you start sending assets into your wallet, be reminded that you are not actually sending that 1ETH into your wallet A. That may be how you see and understand it but no!, That 1ETH continuously exists in the entire chain of networks (blockchain) and you just got the keys to that specific piece of eth, Which means, you have the access to its operation. To put it on a simpler view, let us put it this way. Ownership of 1eth is like ownership of an apple. you buy the apple, you pay for it, now you have the right to eat it. Or is this really the case? Well, this is how people understand it, but sorry folks, this is a misconception. Owning that 1 ETH is like owning a title of a certain parcel of land, Yes, you pay for the land but you can not take that land to anywhere else, you can not consume it so it will stay on where it is. So what did you pay for in the first place? Right, the right to the utilization of the land through its title. I hope these examples made things clear.
So to wrap it up, you have to take care of the keys of the wallet that has the keys of your assets (because your wallets can not keep the assets since they are on the blockchain and will forever be there).
