Steemit Crypto Academy | Beginners' Level | Season 3 Week 8 | Blockchain Rewards
Have a nice day to you!
This is my article for week 8 of season 3 of crypto academy.
Blockchain Rewards
✳️Homework✳️
1.In your own words, explain mining and block reward.
2.What do you understand by the Bitcoin Halving?
3.What are the effects of the Halving on miners?
4.What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving? (Screenshots and Full working)
5.Do you think Steem's inflation rate reduction can effect other coins? Why?
6.What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?
(Screenshots and Full working)
♨️In your own words, explain mining and block reward.
🔎MINING🔍
Mining is a process used by people to participate in the blockchain network as a transaction processor and validator. The word mining is not used literally but is used to refer to the collection of precious metals. The miners solve math problems and also confirm the legitimacy of the transactions. They then combine the transactions into one block and form a chain of these transactions and form a blockchain.
Miners have to check the validity of tons of transactions. They also verify transactions and add them to the blockchain. These are the reasons why mining is difficult.
🔎BLOCK REWARD🔍
Bitcoin uses a system called Proof-of-Work to work. What this means is that the miners have to prove that they have put a lot of effort into making deals for the prize. The faster the system they use, the better the chances of getting the right hash. Activation by ASIC (Application-Specific-Integrated-Circuit) miner is special here. Also, the validity of transactions that are voluntarily blocked by the miners is verified.
When a block is full of transactions, Bitcoin rewards are given to the miners who set up and confirmed the transaction within the block. Faster computers with certain types of hardware offer large premium rewards, while some companies design computer chips specifically for mining.
♨️What do you understand by the Bitcoin Halving?
After every 210,000 blocks excavated, or roughly every four years, the blockchain reward for Bitcoin miners is reduced by half. This halves the release rate for the new bitcoin circulation. Bitcoin's method is to use artificial form inflation, which halves every 4 years until all Bitcoin is released for circulation. In that case, the miners are paid a fee to process the transactions paid by the network users. These fees provide an incentive for miners to still mine and maintain the network. As competition for these fees is fierce, those values remain low.
The halving is significant because it marks another decline in Bitcoin's declining limited supply. The maximum supply of Bitcoin is 21 million. Thus bitcoin is halved, which slows down the making of new coins. But this has some effect on investors as there may be high demand for other assets with low supply and prices may rise. Considering this information in the past, there have been instances where the price of Bitcoin has risen sharply than before.
♨️What are the effects of the Halving on miners?
The entire crypto community is always on the lookout. As the value increases, they get the supply. This is due to the fact that the cryptocurrency market is occupied by the community.
And as the supply of bitcoin increases day by day, you may experience crypto currencies. But the bitcoin inflation rate remains low.
That is,
⏺️As mining difficulties increase, so does the value as inflation rises.
⏺️Bitcoin supply is not faster than 21 million, so as supply increases it becomes lower.
♨️What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving? (Screenshots and Full working)
At the time of taking the above screenshot,
the height of the Bitcoin block type is 696,457.
The next halving will take place in 4 more.
The next halving block that has the above value is 210,000×4 = 840,000 in height.
Current block height = 696,457
Number of blocks until the next half = 840,000 - 696,457 = 143,543 blocks
♨️Do you think Steem's inflation rate reduction can effect other coins? Why?
Steem's inflation rate affects other currencies as well. Inflation triggers when supply increases. That is, too much supply leads to inflation. This is because as supply increases, its value decreases. Supply is key when calculating value and not just money.
♨️What is the current block height on the Steem blockchain? How many more blacks before the next 0.01% reduction (Screenshots and Full working)
According to Steem Whitepaper,
The rate of inflation of vapors gradually decreases.
At the time of obtaining this script
The block height of the Steem is shown as 56,489,341.
Reduces the vapor inflation rate by 0.01% for every 250,000.
The current block height is noted as .
The number that has been reduced so far is,
56,489,341/250,000 = 225.957364.
According to the above calculation, there have been 226 reductions so far.
The next whole number must be taken to calculate the block height for the next reduction.
Block height to reduce next =226 × 250,000 = 56,500,000.
The number of blocks shown in the next subtraction = 56,500,000-56,489,341= 10,659.
1.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 Satoshi would you have?
https://coinmarketcap.com/currencies/bitcoin/
When I looked at the current value of BTC through the Coinmarketcap website, the following dollar value appeared at the time of retrieval.
When purchased for 💲 2,500,
Its BTC value = 2500 / 44,555.59 BTC = 0.05610917
When it comes to Satoshi value,
Satoshi value = 2500 / (44,555.59×0.00000001)= 5,610,917
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)
On that day, the value of 1 Satoshi in dollars,
Then,
1 Satoshi = 💲 44,555.59 × 0.00000001
= 💲 0.00044556
2.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 Jager would you have?
A search of BNB on the Coinmarketcap website revealed the following value in the screenshot.
When purchased for 💲30,
Its BNB value = 30 / 452.38 BTC = 0.06633159
When it comes to Satoshi value,
Satoshi value =30 / (452.38×0.00000001)= 6,633,159
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)
(Screenshot of current value should be provided)
On that day, the value of 1 Jager in dollars,
Then,
1 Jager = 💲452.38 × 0.00000001
= 💲 0.00000452
Professor @awesononso's article was very important for me to finish this article. My homework article ends here. Good day to you all.
Cc:-@awesononso
Thank you!✨️
#awesononso-s3week8 #cryptoacademy #inflation #steem-exclusive #steemit #blockchain #rewards