This quest will be added to your journal once you complete the following three quests: True Wisdom in Kindness, Heart Beyond Borders, and Actions Speak Louder than Words. You can now examine the key given to you by the mysterious beggar you aided with a copper coin.
A strange aura emanates from the key the old man handed you.

1. Examine the key from the old man
Open your inventory, locate the Shabby Wooden Key you received from the old man, and examine it. Doing so will grant you the Engraved Key.

2. Go to Hernand Castle
Head toward one of the gates leading to the Hernand Castle. In order for the guards to open the gate and let you in, you must look the part. Open your inventory and equip the Hernandian Attire you received at the end of the "Actions Speak Louder than Words" quest.

Once inside the castle grounds, follow the path until you reach another locked gate.

Wait for the soldiers to open it for you, then head into the main castle building. Next, head into the corridor on the right and go up the stairs to the upper floor, then enter the big room on the right.

3. Find the room the key opens
You are looking for the Alchemist's chamber. It is located behind the first door on the left.

4. Go through the shining gate
Once you enter the room, a magical gate will appear on one of the walls. Before passing through it, open the treasure chest in the room to obtain the Abyss Artifact (Can be used in the Skills menu to enhance skills, or taken to a blacksmith to refine equipment.) and the Faded Abyss Artifact (An artifact that allows you to reclaim Abyss artifacts invested in Stamina, Spirit, and Health from the Skills menu.).

Once you pass through the gate, you will be transported to the Abyss - a series of floating islands in the sky above Pywel. This quest will then end, and the next one - Polar Opposites - will begin.
The shabby wooden key suddenly transformed into an intricate steel one. It unlocked a room inside the castle where one of the walls within split open, revealing a dazzling, radiant passage beyond.