Steemit Crypto Academy Season 4 - Homework post for Task 3 - The Genesis Block
QUESTION 3.
3a) 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.
WHAT IS CRYPTOCURRENCY ?
A cryptocurrency can be defined as a Decentralized digital money which is based on the Blockchain technology, it is also a medium of exchange in digital form which is converted into a code and it operates on a Decentralized system. The cryptocurrency operates on a Decentralized system because there is no central authority to control and supervise the daily Transaction made by the users on the Blockchain. With crypto it has been made easy to transfer value/asset online without the help of a middleman, value/asset can be transferred globally and instantly for a low fee and it operates 24/7.
What is Blockchain?
Blockchain is a database that records and stores information which makes it difficult to hack or change the system. A Blockchain can also be called a digital ledger of transaction, every cryptocurrency has its own Blockchain. Examples of cryptocurrencies are Bitcoin, ethereum, Tezos and many more.
Bitcoin was the first Blockchain based cryptocurrency which is the most popular and most valuable cryptocurrency. It was launched in 2009 the value of Bitcoin in 2009 was $0 now in 2021 Bitcoin is worth $41,976 it was founded by Satoshi Nakamoto.
Advantages of cryptocurrency.
- It is a faster way of transferring funds.
- Low fees are attached to every transaction which makes it affordable for everyone.
- It operates on a Decentralized system.
- There is protection from inflation.
Disadvantages of cryptocurrency.
- Inability to keep your necessary data for example losing your private keys can lead to financial loss.
- There is no refund policy.
- There is high privacy and security which can encourage or can be misused for illegal transactions.
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What is Cryptography and how does it make cryptocurrencies secure?
Cryptography is the method or practice of keeping valuable information safe and secret between two or more people by hiding the message using algorithm or a type of key. The encrypted form of message is sent to the receiver and the receiver decrypts it to get the original message. Cryptography can also be described as the computational and mathematical practice of decoding and encoding date. Encryption keys is important in the area of cryptography.
how does it make cryptocurrencies secure?
- It allows transaction to be anonymous.
- It is used to verify the authenticity of transaction.
- Cryptography method helps to maintain security and fidelity.
Explore the Steem Genesis Block and Sign in as proof of completion.
Log in to https://steemworld.org
Click on Block explorer.
After clicking on Block explorer, Type block 1
BLOCK 1 The beginning of steem (the Genesis Block).
Sign in with your steemit details.
We are in.
- I conducted another test to see BLOCK 2.
On this block it took 36 seconds to generate another block. There is a difference between the BLOCK 1 and BLOCK 2 block id and previous id.
CONCLUSION
I believe we have a better understanding about cryptocurrency and the first cryptocurrency aside that we are aware about cryptography and it's uniqueness in the block chain. Lastly we know about the steem Genesis Block were it all began.
Cc: @awesononso