Originally posted by JPValheim:

I understand that most people say that; but I have observed things with suggest it might not be true. I believe it is possible there are two keys. One on the character and one on the server.

Check this as a test.

Start a new world with a new character.

Build a small "base" that includes at least three base structures (such as three campfires, or a campfire, bed, and workbench, etc.).

Console Command: listkeys
[Should say "Keys 0"]

Console command: setkey defeated_eikthyr
Console command: randomevent
[Should start "The forest is moving"]
Console command: stopevent

Your character has no key for defeating Eikthyr, but the world does.

[EDIT] You can start a new character after this to test more, still will get the same results.