Steemit Crypto Academy - Week 7 - Homework Post for @sapwood
Hello awesome people, how is everyone doing, hope everyone is doing great and having a wonderful day ahead. Super excited to be part of this amazing crypto lecture week7 and to be part of the course. This for me is another positive way to add value to the community as well as gain value in return as well. I’ve learnt so much from these courses and is super awesome for improving our knowledge on topics relating to blockchain and crypto. We are still on the steem blockchain as this week7 focuses on Inflation, Recovery Account, Encrypted Message.
How important it is for you to build your SP in the next 10 years
The steem blockchain operates on the principle of proof of brain with authors and curators playing a key role in the overall steem economy. Before delving deep into why it is important to build your SP in the next 10 years, let’s first look at how the steem blockchain distributes rewards to its users. We all know that the steem blockchain is powered by DPoS which means delegated proof of stake. On the steem blockchain, the witnesses who validate the blockchain network receive 10% from the newly created steem tokens, the steem power holders receive 15%, the Steem DAO receives 10%, which makes it 35% in total. 65% which is remaining now makes up the reward pool in which content creators and curators receive rewards.
From the above, you can see how the steem blockchain distributes rewards fairly. Also on steem, the inflation rate decreases by 0.42% each year… this rate will continue to decrease until it reaches 0.95% and then, there will not be any more decrease in the rate of inflation. The inflation rate is directly proportional to the rate of newly minted steem. What this means is that, as the rate of inflation gets reduced each year, the rate of newly minted steem reduces as well.
Steem power is what gives users influence in the steem blockchain network. With this, you can see how important it is to build steem power because it will be more difficult to earn steem in the next 10 years. It is a lot easier to earn steem and build steem power now because of the inflation rate, but after 10 years, it will become a lot more scarce to earn steem and build steem power. This will also increase the value of the token because of how scarce it will be in the next 10 years especially when there is too many demand.
How difficult will it be to earn STEEM rewards after 2031?
Like I explained above, earning steem reward is relatively easier to earn now because of the inflation rewards. However, it keeps decreasing till the next 10 years, which will make it scarce and difficult to earn steem rewards 10years from now which is 2031. At the moment, the current new steem tokens that is produced per block of the inflation account is currently at 2.866 STEEM and 10 years from now which is 2031, it is estimated to reduce to 2.276 STEEM reward per block and the inflation rate have decreased to 3.49%. Looking at this, you can already tell that in the next 10 years, it is going to be difficult to earn steem on the steem blockchain because of the decreased inflation rate and steem produced per block. From the table below by @sapwood, it shows estimation of Steem blockchain in the upcoming years.
From 2021 to 2031 how many STEEM tokens are going to be minted?
Based on the data on the table above, you can see that the
Virtual supply of 2021 is 391,804,970
Virtual supply of 2031 is 685,011,397.3
Amount of new steem tokens to be minted from 2021 – 2031 will be 685,011,397.3 - 391,804,970 = 293,206,427.3 steem
From the solution, about 293,206,427.3 steem will be minted. Approx 293.2 million
In which year the inflation and Block reward is likely to saturate?
Just like I explained above, the inflation on the steem blockchain decreases yearly and stops decreasing when it reaches 0.95%. Based on the table above, the inflation and block rewards is likely to saturate in the year 2037.
Who is your recovery account in Steem, how do you check it
One of the key features and benefits of the steem blockchain is being able to recover account through the help of a recovery account. A recovery account is needed on the steem blockchain unforeseen cases so as to be able to recover the account as far as the master key is available. A very good tool for steem known as steemscan can be used to view the info. To do this, visit https://steemscan.com, in the search bar, input your username to find the info of your account.
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In the case of any unforeseen event like hacking what information do you provide to the recovery account to initiate the recovery process?
If an account is compromised, the user can initiate an account recovery with the help of the recovery account that the user set. To do this, the user must know the recovery account and provide the master key. This process must be initiated within 30 days as the recovery procedure utilizes a 30 day rule.
How do you send an encrypted message to another peer on Steem?
Steem blockchain gives users the ability to send encrypted messages or private messages to other steem user. To do this,
- Go to your wallet and login
- Click on the steem amount drop down and click on transfer
- Similar to how to make a normal token transfer, send a little token and input the message in the memo with # at the front of the first letter without any space.
- Once you are done with the message, click on next
- Click on Ok to send
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Click on Ok to send, the user will have to use the memo key to decrypt the encrypted message
Which key is required to send a private message and which key is required to decrypt it?
The master/memo key is required to send a private or encrypted message on steem and the memo key is also required by the recipient user to decrypt the encrypted memo message.