The Genesis Block - Steemit Crypto Academy Season 5 - Homework Post for Task 3
With the ever-changing and developing nature of the world everyday, we realize that cryptocurrency has been a part of that change and will persist to be, despite the fact that it has been banned in some countries. Eventually, it will be accepted globally. I feel there is still a lot more to come in the world of cryptocurrencies, and that many new heights will be reached.
I'd like to express my gratitude to Professor @awesononso for this fantastic class, as well as the entire Crypto Accademy organization for giving me the opportunity to be a part of it. I'll be answering Question 3 for the purposes of this Homework Task.
QUESTION (3)
a) What is a Cryptocurrency?
b) What is Cryptography and how does it make cryptocurrencies secure?
c) Explore the Steem Genesis Block and Sign in as proof of completion.
The phrase "cryptocurrency" comes from the word "cryptography," which means "the process of conveying encrypted messages from one person to another that can only be read by the receivers."
As a result, a cryptocurrency is essentially an asset based on a network that can be shared in vast quantities from one computer system to another.
To put it differently, Cryptocurrency is a basic digital currency that is encrypted, making it nearly impossible to fabricate, conterfy, or even double-spend. Fiat currencies are commonly referred to as "cryptocurrency." (That is, currencies that are purchased and exchanged in exchange for physical cash).
One of the most fundamental characteristics of cryptocurrencies is its decentralized nature. This basically implies that cryptocurrencies are not controlled by any authority or individual, making them incredibly distinctive and thus immune to various sorts of government manipulation or influence.
There are various types of cryptocurrencies. Among them all is the first and most popular known Bitcoin (BTC).
Just outside what is seen in the image above, thousands of other cryptocurrencies are now available, including Ethereum (ETH), Litecoin (LTC), USD (USDC), Ripple (XRP), Dogecoin (DOGE), and others. And there are plenty more.
When it comes to cryptocurrencies, there are a few crucial concepts and properties to be aware of. Here are a few examples:
- Cryptocurrencies are created from an encryption technology known as Cryptography, which aids in network security.
- Cryptocurrencies are digital currencies that are dispersed among a large number of computer systems on a network.
- Cryptocurrency can also be thought of as a collection of binary data (written codes) designed to function as a means of trade.
In a summary, I'd argue that cryptocurrencies are digital assets that have made extremely secure online transactions feasible.
MEANING OF CRYPTOGRAPHY AND HOW IT DOES MAKE CRYPTOCURRENCIES SECURE
Simply speaking, cryptography is a security technology used to make transactions between parties more secure and safe. Furthermore, cryptography is just a method of sending encrypted data/information to specific users of cryptocurencies, making the message readable only by the receiver.
From the original base of the two terms put together it is said that the term CRYPTO Simply means secret in Greek and also, the term GRAPHY means write. The combination of these two words simply gives a comprehensive meaning of the term Cryptography.
As a result of the previous explanation, I shall state that cryptography is simply a well-written set of secure instructions. (It's merely a computer security method designed to keep transactions on the blockchain network safe.)
Cryptography is used in cryptocurrencies to make transactions more discrete and safe, as well as to keep crypto user's identities disguised.
HOW CRYPTOGRAPHY MAKES CRYPTOCURRENCIES SECURE
Considering cryptocurrency relies on cryptography for its safety and security, it's critical that we understand how cryptography keeps cryptocurrency safe.
HASHING: Among other ways of cryptography making sure cryptocurrencies are secured, one of those ways is simply hashing which stands to be a method that is been used for the verification of data intergrity in a transaction. Hence, the various data structure of a blockchain is been sucured and also users transaction details are been encoded for this is a very important aspect of what is encryption.
Asymmetric Encryption: This is also known as public key encryption. I will say, this is simply an added level of security which helps improve the security of data. On the other hand, this is simply made possible through the combination of both the public and the private key (i.e it relies on two keys). Where the public key can be shared to anyone and so apply the use (any one can use it). But on the other hand, the Private key is simply not shared and hence holds in it the ability to decrypt every encrypted messages sent to any crypto user. This is simply set in to offer two very important function of encrytion in cryptocurency transactions.
Symmetric Encryption: This can also be called secret key encryption. This is simply made possible through the use of one key. That is to say that both the sender and reciever make use of one key for the completion of a transaction. In this case, both the sender and the reciever have to agree before time the key to be used. For the fact that one key is to be used for two purposes (encrypting and decrypting a message) is still very much welcome but it is prone to some risk.
I'll give you an example to back this up: Consider leaving your house key in a specific area in your home for a buddy (may be on a wall, window, under a rag, or even the door mat). When your friend returns home to use the key, an outsider may be able to see where he got the key from and so gain access to your home as well.
To sum up, this strategy attempts to lower the cost of implementation by modifying/minimizing it, hence increasing risk and reducing security, as well as scalability difficulties.
EXPLORE THE STEEM GENESIS BLOCK AND SIGN IN AS PROOF OF COMPLETION.
Now let me quickly explore the Steem Genesis Block, I will illustrate with the relevant screenshoot..
- The very first step is go-to Steemworld
Screenshot taken from.(https://steemworld.org/ site)
- The next step is to locate, Block Explorer and click on it. On the sub-menu the block number will be displayed. The Genesis block of STEEM is 1 so click on Ok
Screenshot taken from.(https://steemworld.org/ site)
- After clicking Ok, the data and information of the block number was displayed.
Screenshot taken from (https://steemworld.org/ site)
Timestamp 2016-03-24, 17:05:00
Block Id 0000000109833ce528d5bbfb3f6225b39ee10086
Previous Id 0000000000000000000000000000000000000000
Signing Key STM8GC13uCZbP44HzMLV6zPZGwVQ8Nt4Kji8PapsPiNq1BK153XTX
Witness initminer25
Witness Signature 204f8ad56a8f5cf722a02b035a61b500aa59b9519b2c33c77a80c0a714680a5a5a7a340d909d19996613c5e4ae92146b9add8a7a663eef37d837ef881477313043
Transaction Merkle Root 0000000000000000000000000000000000000000
SIGNING IN AS A PROOF OF COMPLETION AS ASKED IN THE QUESTION
- Now go to the Steemworld website, locate Sign in at the top right corner and click on it
Screenshot taken from.(https://steemworld.org/ site)
- The next step is to enter my Username and Posting Key as required, and click on
Screenshot taken from.(https://steemworld.org/ site)
Now I've successfully signed in to Steemworld with my username and posting key, below is the screenshot of proof**
Screenshot taken from.(https://steemworld.org/ site)
CONCLUSION
In a short, cryptography is the backbone of cryptocurrency, as demonstrated and noted. The capacity of users to conduct transactions at a very secure rate without being disturbed is simply enabled by the usage of cryptography. If I had to choose, I would say that cryptography is simply crypto simplified.
All thanks to Professor @awesononso for this fantastic class; it was quite instructive.