Steemit Crypto Academy Season 3: Homework Task for@awesononso|| Submitted by @goodspeed22|| 21/08/2021
Good evening friends. How has the week been? Hope is moving fine. I am glad to present my home work task again this week. Here I go.
"Question 1: In your own words, explain mining and block reward."
Mining
Mining from my own understanding is a process involved in getting new digital currency like Bitcoin. This process is complex and so the miners from around the world solve a whole lot of mathematical problem in order to successfully arrive at or produce a new block, which is added to the already existing ones by means of a correct hash.
They check and verify transactions going on in this digital public ledger to ascertain its transparency and to avoid a coin being used twice for transaction. The miners also make sure that the actual block size is reached, which can be 4mb or 1mb.
I can as well see that this process involves 'fastest finger', in the sense that huge rewards come from this process - a bitcoin reward to the first person who successfully reached this milestone. Thus, the miners need higher level of technological advancement to solve these problems and they also use 'proof of work' to get the required hash that will connect the new block to the chain of the old ones.
the contributions from the miners globally help to keep the transaction network secure and trustworthy as they are connected to blockchain on peer-to-peer basis.
Block Rewards
this refers to the amount of Bitcoin paid to a successful miner as a new block is added to the block chain network. This reward is an incentive to boost their efforts in computing and solving the complex mathematical problems in order to arrive at a new hash that will link the block to the old ones.
" Question 2: What do you understand by the Bitcoin Halving?"
This is the process of decreasing the reward price of mining bitcoin to half. In other words, miners are paid half of their last mining price as they successfully mine a new one. This activity take place in every four years.
It is said that whenever each set of 210,000 is mined the reward will be reduced to half. For instance, the first set of 210,000 mined, the reward was 50BTC per block. Then, in 2012 price was half of 50BTC. which is 25BTC, the next one was 12.5BTC in 2016 and the last one in May 2020 was 6.25BTC, which is the third set of 210,000 (6320,000) blocks mined. The next one will occur in 2024 and the reward will be 3.125BTC.
This method of reward help to checkmate the circulation of Bitcoin thereby reducing inflation of digital currency (Bitcoin).
"Question 3: What are the effects of the Halving on miners?"
Although the reward of mining is being reduced as the process continues, yet halving process has a positive impact on the miners and they are:
- the price of bitcoin increases as it becomes scarce, more value will be added, thus it increases their urge to mine more.
- As the last halving occur in the future, miners will no longer be paid or rewarded with bitcoin rather they will receive their rewards in form of fees from the network users, that is, the transactions from buyers and sellers of bitcoin/ this will add to their motives to continue to process the transaction in the bitcoin blockchain.
"Question 4: What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)"
The current block height on the bitcoin blockchain is = 696,788
Block height for next halving = 210,000 x 4 = 840,000
current block height = 696,788
Number of blocks until the next halving = 840,000 - 696,788 = `43,212 blocks.
" Question 5: Do you think Steem’s inflation rate reduction can affect other coins? Why?
It will not affect them. But rather prices of other coins will increase. We can see it from the case of bitcoin. Many people look forward to the halving event, as this will cause the coin to be scarce thereby increasing their own coin.
"Question 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)
The current block height of Steem blockchain is = 56,560,685 as at the time of my writing/
The steem inflation rate reduces by 0.01% every 250,000 blocks.
To get the number of blocks before the next 0.01% reduction, we have:
56,560,685/250,000 = 226.24
The reduction = 226.24
Block height for next reduction = 226 x 250,000 = 56,500,000
Therefore to arrive at the number of blocks until next reduction will be:
56,500,000, which is the block height in the next reduction, subtracted from the current block height as of my writing :
= 56,500,000 - 56,560,685 = 60,685 blocks.
" Question 1: Continuation of last week’s work:
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)
the current price of BTC is $48,866.94
As i buy $2,500, then i will get satoshis worth:
current price of BTC = 48,866.94
$2,500/48,866.94 = 0.0511593318509 = 0.0511 (3 s.f)
1 satoshi = 0.0000000`BTC
$2,500 worth = 0.0511 /0.00000001 = 5,110,000
The value of Satoshi today is $0.0004921
"Question 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)
(Screenshots of current value should be provided
The current price of BNB on the day of my writing is $454.24
As i buy BNB worth $30, i will have a total of this:
Current price of BNB = $454.24
30/454.24 = 0.0660443818245BNB = 0.066 (3 s.f)
1 jager = 0.00000001BNB
thus 30 worht of BNB = 0.066
0.066/0.00000001 = 6,600,000 worth of Jager
The price or value of Jager that day is = 0.00000001 x 454.24
= 0.00000454.34
= 0.00000454 (3 s.f)
Thanks to my professor.
cc:@awesononso