Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards By @fabiha

in SteemitCryptoAcademy • 3 years ago

Hello everyone. This is my assignment post for professor @awesononso in the last week of CryptoAcademy Season 3.

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1)In your own words, explain mining and block reward.

MINING

Cryptocurrency mining is one of the key elements that allow cryptocurrencies to work as peer-to-peer decentralized networks without the need for a third-party central authority.

Mining may be a process during which transactions between users are verified and added into the blockchain public ledger and also a process that introduces new coins into the existing circulating supply.

A miner can be a node within the network that collects transactions and works to arrange them into blocks. Whenever transactions are made, the miner interacts with other nodes that receive and verify the transactions ten add them into the memory pool, and start assembling them into a block that can contain multiple transactions.

BLOCK REWARD

The definition of a block reward is a payment of a crypto asset from the network to a miner or validator that creates a new block and adds it to the blockchain. Usually generated as new coins that are added to the circulation, in the context of proof of work networks such as Bitcoin, the miners are rewarded for solving complex mathematical problems.

Block rewards usually have two parts. When you mine a block, new coins that never existed before are generated. You also get a little piece of every transaction in the block of the transactions fees. The actual block reward amount also depends on which blockchain you’re running. Verifying an Ethereum block will give you around three ETH while doing the same in Bitcoin will get you a little over six BITCOIN. Other than getting that sweet reward it’s pretty important for the health of the chain too because block rewards incentivize people to grow the blockchain and make it more secure. They’re usually the only way to actually generate new coins on any given blockchain.

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2)What do you understand by the Bitcoin Halving?

BITCOIN HALVING

Bitcoin was created by Satoshi Nakamoto in 2009. He designed a way for new coins to be distributed without a person or group of people deciding who should get them. The idea called Bitcoin Mining demonstrates the idea of rewarding people with new bitcoin for doing the work of verifying new transactions into new blocks through computational work.

When Bitcoin was started the reward was set up to 50 coins per block but Nakamoto set the rules where Bitcoin will have a limited supply (21 Million). There will be a total of 21 million bitcoins that will be mined, and the amount that the miners are getting per block will keep decreasing by the halving event until all the Bitcoin is mined.

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There is a phenomenon called bitcoin halving, the halving occurs in the Bitcoin blockchain once every four years. The 2024 halving will probably occur between February 2024 and June 2024 and the BITCOIN that is being generated will decrease by 50%.

let's take an example.

Suppose there is a supply of something. Suppose there is a supply of wheat and the supply of wheat you have ten trucks.
If only five trucks would arrive next month So what happens? The supply will decrease and the demand will increase.
This is the reason why the rates go up every four years.
there is a factor that the supply decreases and demand increase as well. The next halving will be in 2024, so Bitcoin is likely to go up.

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The latest Bitcoin halving happened on 11 May 2020, when block 630,000 was mined. Because of that halving, the square reward dropped to 6.25 BTC.

The next halving date relies upon when the 210,000th square has been mined since the last halving. Taking into account that new BITCOINS are mined generally at regular intervals, the following halving is relied upon to happen at some point in mid-2024 – and on that obscure day, miners' rewards will drop to 3.125 BTC.

It's not difficult to perceive any reason why – as Bitcoin halving happens, the inventory of accessible BITCOINS decreases, subsequently expanding the worth of the BITCOINS yet to be mined. Furthermore, with those vacillations come the opportunity to benefit.

For some unique situation, think about Bitcoin's set of experiences. The first halving happened on Nov. 28, 2012, when the value of a Bitcoin was an easy $12 – after one year, Bitcoin had soared to around $1,000. On July 9, 2016, the second halving occurred – Bitcoin had tumbled to $670 per coin by that time, however, it shot up to $2,550 by July 2017. In December of that year, BITCOIN to an outstanding all-time high to $19,700.

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3)What are the effects of the Halving on miners?

The Answer to that question lies in the law of supply and demand. The latest Bitcoin halving happened on 11 May 2020, when block 630,000 was mined. Because of that halving, the square reward dropped to 6.25 BTC so next in 2024 Now, their rewards will drop to 3.125 so supply will decrease and demand is already there. We have less supply and more demand then the price will go up after the jump of the previous trends the price is falling. What is the reason for this? Bitcoin mining is not profitable for most of the miners so they left. When miners left it meant that there is less computing power and hash rate, BITCOIN will not be mine more so, in the market, the miner will not come so, the price will go down, In 2016 Bitcoin Halving the price will start increasing in around 2018 it takes 12 to 18 months in Bitcoin halving. Am not saying this, This is our Analysis, this is our impact Because Supply Decrease and demand stays in the market. So this is a very important aspect that what bitcoin halving, so it's simple that rewards will be decreased a 12.5 half dropped to 6.25 then after four years when 210000 blocks newly will become It, will be processed again 6.25 will also start getting 50 percent so it is Bitcoin Halving.

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4)What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)

To check the current block height on the bitcoin blockchain I will visit Blockchain.com

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At the Time of doing my homework, the current block height on the bitcoin blockchain is 696278.

Halving happens at Every 210,000 block
For the past 3years = 210,000 × 3 = 630000

Current block =696278

Number of blocks before the next halving = (Current block) - (Past 3 years block)
Number of blocks before the next halving = (696278 - 630000) = 66278

Blocks needed for the next halving =210,000 -66278 = 143722

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5)Do you think Steem’s inflation rate reduction can affect other coins? Why?

Steem is a unique blockchain and even though the price of STEEM as with most coins can be highly influenced by the Price of BITCOIN, Steem's inflation does not have any effect on the crypto world. But to be more precise, the Inflation on STEEM does have an effect on the level or the quantity of SP, STEEM, and SBD that is being generated. So to answer the question here, the inflation of the Steem blockchain does not have any influence on coins in the crypto world but definitely has an influence on the other coins-like within the Steem ecosystem (SBD/SP).

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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)

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Source

At the time of Doing My homework, The Current block height on the steem blockchain is 56,452,998.

The current block height STEEM is 56,452,998.

To get how many more blocks before the next reduction.
Steem inflation rate reduces by 0.01% every 250,000 blocks.
225 reductions have been done so far on the Steemit blockchain
To find a number of reductions so far:

Number of Reduction so far= 56,452,998/250000=225.811992

To know the number of block heights for the next reduction= 250,000 ×226 = 56,500,000

Now,

∴ Number of blocks until next reduction = 56,500,000 - 56,452,998= 47002

47002 is the number of blocks to the next reduction.

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Continuation of last week’s work:

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 satoshis would you have?
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)

To check the current value of BTC I will visit Coinmarketcap

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The Current Value of BTC is $44,932.41

I will Purchase $2500

a) 1 BTC is $44,932.41
Purchased $2,500

To Find BTC Purchased I will divide $2,500 by $44,932.41
So,

Total Btc purchased = 2,500/$44,932.41
total Btc purchased =0.05563912552

Therefore, I will purchase 0.05563912552 BTC for $2,500.
1 satoshi = 0.00000001 BTC
I purchased 0.05563912552 BTC

To find the number of satoshis I will divide Total Btc Purchased to 1 Satoshi

So,

Total Satoshi I have= 0.05563912552/0.00000001
Therefore I have 5563912.552 Satoshis.

b) 1 BTC = $44,932.41

Since 1 satoshi = $44,932.41 x 0.00000001

Therefore, Satoshi today's price is $0.0004493241

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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 Jagers would you have?
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)
.

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The value of BNB at the time I am doing homework is $408.83.

I will Purchase $30

a) BNB Purchase at $30 = $30/$408.83 = 0.0733801 BNB

I will Purchase 0.07338013355 BNB

1 jager = 0.00000001 BNB

To find the number of jager I will divide 0.07338013355 by 0.00000001 which is
The Number of jagers I have = 7338013.355

b)
1BNB = $408.83
1 jager = 0.00000001 BNB
Therefore 1 jager = $408.83*0.00000001
=0.0000040883

There the value of jager is $0.0000040883

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Thank you professor @awesononso for this informative and insightful lesson.

Respected mention

@awesononso

Regards,

@fabiha

#awesononso-s3week8 #cryptoacademy #pakistan #steemexclusive #steemit
3 years ago in SteemitCryptoAcademy by
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     3 years ago 

    Hi, @fabiha,

    Thank you for your contribution to the Steem ecosystem.

    Please consider voting for our witness, setting us as a proxy,
    or delegate to @ecosynthesizer to earn 100% of the curation rewards!
    3000SP | 4000SP | 5000SP | 10000SP | 100000SP

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      [-]
       3 years ago 

      I really got interested in the way you approached the block rewards keep it up

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