Crypto Academy Week 7: Steem Blockchain – by @sapwood

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Hi everyone, welcome to this week’s awesome steemit crypto academy lesson by @sapwood . In this homework post, I will be writing my solutions to the course tasks of this week which is still about the steem blockchain. Also I will be sharing my opinions on some aspects such as inflation, recovery account, encrypted message. As a big fan of the steem blockchain, I have to say, this week 7 topic by the steemit crypto professor is a fantastic topic, explaining very useful aspects of the steem blockchain when it comes to inflation, recovery account, encrypted message. These are very useful and important topics that users on the steem blockchain should know about.

As most of the STEEM tokens will be minted in the next 10 years or so(on account of inflation), how important it is for you to build your SP in the next 10 years and build significant influence power in the form of SP? How difficult will it be to earn STEEM rewards after 2031? From 2021 to 2031 how many STEEM tokens are going to be minted(approx)? In which year the inflation and Block reward is likely to saturate(tentatively)?

How important it is for you to build your SP in the next 10 years

We all know that on steem, authors and curators play a major role in the economic and social aspects of the steem blockchain. Authors create contents and earn author rewards while curators curate contents and earn curation rewards. One of the key factors of effective curation on the steem blockchain is having steem power which is essential for curation. On steem, there is something known as inflation rate which decreases on a yearly basis. Before we continue, let me quickly talk about how rewards are distributed on the steem blockchain to its users.

Steem blockchain operates on the delegated proof of stake also known as DPoS algorithm. Witnesses who are chosen by the community (delegated) are there to run consensus protocol and also validate and sign transactions and blocks on the steem blockchain network. On steem, witnesses earn 10% from the newly minted steem, steem power holders know as SP or vested token holders earn 15%, Steem DAO receives 10%... the rest of the 65% goes to the reward pool for rewarding content creators and curators.

Now back to the inflation rate I talked about earlier, on steem blockchain, there is an inflation rate that decreases each year by 0.42% which also decreases the rate of newly minted steem… this continues to decrease until it reaches 0.95% and after that, the decrease will be no more. Looking at this alone, you can see that the inflation rate decreases as well as the rate of newly minted steem.

So in the next 10 years, the inflation rate and rate of newly minted steem must have reduced much more than what it is currently, making it much difficult to earn steem and also grow steem power. With that said, it is important to build your SP (steem power) in the next 10 years because it will become more difficult to build and grow steem power because of the low inflation rate and the amount of new steem minted will be low.

How difficult will it be to earn STEEM rewards after 2031?

Similarly to what I mentioned above concerning the inflation rate on the steem blockchain and how it decreases yearly until the next 10 years. This would make it much difficult to earn steem rewards because steem would become much more scarce by that time. It is estimated that the inflation rate would recduce to 3.49% in the next 10 years. This clearly shows that earning steem in 2031 will become much difficult due to the decreased inflation rate and decreased newly minted steem. The table below by @sapwood shows the values.

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Also, if a user receives a certain amount of upvote in 2021, with the current new supply of steem. In 2031, it will decrease greatly when the new supply of steem in the year 2031 has reduced.

In other words, in the next 10 years that is in 2031, The newly minted steem in the reward pool would diminish due to the low inflation rate, making this much more difficult to earn steem rewards from the reward pool.

From 2021 to 2031, How many STEEM tokens are going to be minted and Which year the inflation and Block reward is likely to saturate?

Looking at the values from the table above, the virtual supply of steem in the year 2021 is 391,804,970, the virtual supply of steem in the year 2031 is 685,011,397.3. To find the total amount of steem that is going to be minted, we will have to do 685,011,397.3 - 391,804,970 = 293,206,427.3 steem
Therefore, the amount of steem that will be minted from 2021 to 2031 is 293,206,427.3 steem, approx. 293.2 million steem.
The inflation and block reward is likely to saturate in the year 2037.

Who is your recovery account in Steem, how do you check it(Hint- Steemscan), include screenshot(s)? In the case of any unforeseen event like hacking what information do you provide to the recovery account(or the trusted account) to initiate the recovery process?

Who is your recovery account in Steem, how do you check it?

To check your who your recovery account is on steem blockchain, there is a useful tool that shows this information. This is great because it is very important to know your recovery account. Recovery accounts are very important and allows a user to recover a compromised account within 30 days.

To check your recovery account, go to https://steemscan.com and search for your username. It will look something like this https://steemscan.com/account/your-user-name-here, Scroll down to find your recovery account beside the “Recovery Account” section.

In the case of any unforeseen event like hacking what information do you provide to the recovery account to initiate the recovery process?

The good thing about steem blockchain is that it allows users to initiate account recovery in cases of unforeseen event. However, the user must know the recovery account and have access to the master key. If there is an unforeseen event and the user account is compromised, an account recovery can be initiated with the recovery account and the recovery process must be done within 30days and must provide the most recent master key or owner key.

How do you send an encrypted message(private message) to another peer in Steem Blockchain(include screenshot/process)? Which key is required to send a private message and which key is required to decrypt it?

• To send encrypted messages on the steem blockchain, you have to first login to your wallet using your master key to give you full access.

• Go to transfer by selecting the drop down on the amount

• Send any amount of token and type in the message you want to send in the memo box with # at the beginning of the first letter.

• After typing your message, click on the next button and then Ok to complete the transaction.

Which key is required to send a private message and which key is required to decrypt it?

The key required to send encrypted message on steem blockchain is the master/memo key while the key required to decrypt the message is the memo key.

Cc:
@steemcurator01
@steemcurator02