What is Proof of Keys?
Proof of Keys is an initiative started by Trace Mayer, a prominent cryptocurrency advocate, on January 3rd of each year—the anniversary of Bitcoin’s genesis block. The event emphasizes the importance of self-custody in the cryptocurrency space, where users are encouraged to withdraw their cryptocurrency holdings from exchanges and custodial wallets to wallets they control directly.
The purpose of Proof of Keys is to remind users of the core principle of cryptocurrencies: decentralization. By holding private keys, users have true ownership of their digital assets, free from the risks of exchange hacks, insolvency, or other third-party failures.
Proof of Keys also acts as a form of accountability for exchanges. When large numbers of users withdraw funds simultaneously, it tests whether exchanges have sufficient reserves to cover customer holdings, promoting transparency and trust in the ecosystem.
This event is especially significant for those new to cryptocurrency, as it highlights the motto: “Not your keys, not your coins.” Holding private keys ensures that users maintain full control of their assets, making them less reliant on intermediaries.
