Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards by @chinto1
Greetings @awesononso. I'm here to present my homework post for this week.
In your own words, explain mining and block reward.
Mining
Mining is the process of solving complex computational mathematical equations using powerful computers or sophisticated tools in order to get new cryptocurrencies. Mining is very important to cryptocurrency in the blockchain ledger development and maintenance, as it violates cryptocurrency duplications of transactions with reference to our local currencies.
Mining rewards in the blockchain are paid to miners(volunteers on the blockchain). These miners, add new transactions blocks and also record the transactions made in the blockchain. Rewards are distributed to miners, once they successfully finds the solution to the complex hash functions.
Block reward
Block rewards in currency is the rewards gain after a successful mining. The rewards, in the block rewards are awarded to miners who successfully solve the complex hash functions in the blockchain.
What do you understand by the Bitcoin Halving?.
Bitcoin halving
Bitcoin halving occurs when the reward for bitcoin miners transactions are divided into 2. For example after the successful mining of every 210,000 blocks of bitcoin, the rewards is expected to be divided into 2 or half.
The reason behind halving of bitcoin is to reduce the availability of supply of the bitcoin and decrease the rate at which new coins are created.
The rewards for each block mined in the chain in the year 2009 was, 50 bitcoins. After its successful halving, it was left with 25 bitcoins to satoshi, then it was half to 12.5, and then
it became 6.25, which still hold the record for the recent bitcoin half on the year may 11,2020. Which means that next halving of the bitcoin, it will reduce to 3.125 in the coming 3 years.
Bitcoin inflation chat chat
Image source
The value of bitcoin keep on increasing on the daily basis, however, bitcoin is getting more scarce on the daily basis as well. The demands for the approximately 12 millions coins as of today, keep on increasing day in day out.
What are the effects of the Halving on miners?
Halving increase the competition among bitcoin miners, since the smaller block rewards left will be competed for, among billions of miners so many of them will loss interest in mining since their profits will be divided into two.
When halving occurs, the value of bitcoin tend to increase and miners are good position to sell bitcoin
when halving occurs, it tends to increase the amount of energy miners spend on the mining process in order gain their block rewards.
What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
A screenshot from the bitcoin block explorer, with the current height of 696,706. Every bitcoin block will be halved 2100 , and has been halved 3 times already, so the fourth halving will be halving a block height of:
=210,000*4
=840,000 blocks
In the next halving the number of blocks will be
=Next halving block height - current block height
= 840,000 - 696,706
= 143,294 blocks
Do you think Steem’s inflation rate reduction can affect other coins? Why?
My response is a big "NO" to the question. Steem price inflation currently cannot affect the price of other coins because it does not have too much dominance on the market.
As at the time of doing this work, steem is ranked #185 on coinmarketcap, has a market dominance of 0.01% and market cap of $216,272,692 USD. This market cap is too small and hence its inflation does not affect other coins.
Coins like BTC which is ranked #1 on coinmarketcap with market cap $872.37Bn as at the time of doing this task is what can affect other coins during inflation. This has been proven severally as when BTC is in uptrend other coins like steem is on the rise and when it is falling, other coins are falling.
What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?(Screenshots and Full working).
Evidence from the steem block explorer, the current height 56,533,125. In every 250,000 blocks steem inflation rates depreciate. To calculate the next reduction we need to calculate the previous reduction.
= current blocks number/250,000
= 56,533,125/250,000
= 226.133(3 sf)
We get 226, when we round up the numbers. The the number of reduction occurred is 226. hence, the next reduction would be 227th reduction.
The number needed for the reduction to occur
= 227*250,000
= 56,750,000 blocks
For the next 0.01% reduction to occur, the number of blocks needed would be
= Number of blocks for the next generation - the current block number
= 56,750,000 - 56,533,125
= 216,875 blocks.
hence the number of blocks needed for the next generation = 216,875 blocks.
What is the current value of BTC on the day you are performing this task? If you made a purchase of $2,500 then,
a.) how many satoshis would you have?
b.) what is the value of a satoshi for that day?
(Show full working and correct to 3 s.f)
(1 satoshi = 0.00000001 BTC)
The current bitcoin price = $47,864.28
TO get $2,500 dollars in bitcoin, we divide by the current bitcoin price
= $2,500/$47,864.28
= 0.0522 to (3 s.f)
(a). Number of satoshis = the total number of bitcoin divided by 0.00000001 bitcoin
=0.052/0.00000001btc
= 5,230,000 satoshis (3 s.f)
(b). value of satoshi = 1 satoshi * price of bitcoin
= 0.00000001*47,864.28
=0.00047864
=$0.000479 (3 s.f)
Therefore the value of 1 satoshi is $0.000479.
What is the current value of BNB on the day you are performing this task? If you made a purchase of $30 then,
a.) how many Jagers would you have?
b.) what is the value of a Jager for that day?
(Show full working and correct to 3 s.f)
(1 jager = 0.00000001 BNB).
Binance coin
from the screenshot above;
The current price of BNB =$439.79
$30 of BNB will be worth
= $30/439.79
= 0.068214
= 0.0682 (3 s.f)
(a) Number of jagers = Number of BNB/0.00000001 BNB
= 0.0682/0.00000001
= 6,820,000 jagers
Hence the number of jagers = 6,830,000 jagers. (3 s.f)
(b) Value of jagers = 1 jager * the price of BNB
= 0.00000001*439.79
=0.0000043979
=$0.00000439( 3 s.f)
therefore the value of 1 jager is $0.00000439.
Conclusion
I will conclude by sending a warm greetings to everyone on steemit and and crypto academy as well. I must say I leant a lot from this topic and its really a master piece from the prof @awesononso and I will be hoping to read your course and answer your question in the next season of the crypto academy.