Bitcoin, Cryptocurrency, and Public Chains - Steemit Crypto Academy Season 4 - Homework Post for Task 5 - by @hamzaali01
Hello everyone. How Are you all? I warmly welcome you to my first fixed introductory course in this community. So without any delay. This course is for professor @stream4u. let's begin.
In this lecture by Professor @stream4u , we learned the basics of Cryptocurrencies, bitcoin, public chains, and Tron
The first cryptocurrency was Bitcoin. It's a virtual currency, which implies that you can't hold it in your hands such as gold coins or fiat currency like dollars.
Satoshi Nakamoto, a mysterious figure, created Bitcoin in 2009. It is the largest decentralized cryptocurrency in the world, which means it is not reliant on a single authority. Bitcoin's success can be attributed to its transparency, which makes fraud extremely rare. The blockchain is where it is mined, disseminated, traded, and kept. It is the most popular cryptocurrency, but no other cryptocurrency has ever come close to matching it. It is still in first place today.
Although it's tempting to embrace the media's narrative that Satoshi Nakamoto is a lone, quixotic genius who invented Bitcoin from out of nothing, such breakthroughs rarely occur in isolation. All great scientific breakthroughs, no matter how novel they appear to be, are based on prior research.
Bitcoin is classified as a cryptocurrency since it is protected by encryption. There are no real bitcoins; instead, balances are recorded on a public ledger that anybody can see, despite the fact that each record is securely encrypted.
A blockchain can be conceived of as a sequence of blocks in metaphorical terms. Each block contains a set of transactions. Nobody can really trick the system since all machines running the blockchain get the same database of blocks and operations and can observe these genesis block as they're filled with fresh Bitcoin transactions in real time.
Let me give you an example before we discuss the goal of Bitcoin's creation.
Assume that you and your family members live in a distant country and that they need money for just some reason. So, what are your plans? You'll need to visit a bank. There, you would have to consult with an assistant, fill out a form, pay a large transaction fee, and afterward the process will be finished after a long and arduous process.
After all this, the bank deposit will take quite a long time, as well as the receivers would have to return to the bank, repeat the lengthy procedure, and finally withdraw funds. The primary goal of Bitcoin's creation was to eliminate this friction.
Bitcoin enables peer-to-peer transactions (peer to peer cash system). There is no third party or community involved in this system. There is no requirement for a centralized or intervening authority, so you can send cash or your assets directly to someone without the involvement of a third party.
Bitcoin was one of the first digital currencies to make use of peer-to-peer (P2P) technology to allow for immediate transactions. Bitcoin "miners," who own all the controlling computing capabilities and engage in the Bitcoin blockchain, are able to handle blocks of transactions and thus are encouraged by bounties (the production of extra Bitcoin) and transaction fees charged by new Bitcoin.
In this approach, Bitcoin and also some other cryptocurrencies differ from fiat currency; in centralized financial institutions, the currency is issued at a frequency that corresponds to the economic growth of a country, with the goal of maintaining stable prices. A decentralized system, like Bitcoin, determines the rate of release in advance per a formula.
As I previously stated, Bitcoin is a peer-to-peer financial system, thus cryptocurrency is ideal for business payments. However, as we all know, nothing seems to be completely perfect in this world, so while cryptocurrency does have some benefits, it also has some drawbacks. I'll discuss both of them here. Cryptocurrency, in my opinion, is beneficial for company payments. With more reading, you can deduce the significance of bitcoin and form varied viewpoints on its benefits.
ADVANTAGES
Cheap OR Very Low Transaction Fees: Cryptocurrency transactions have an extremely cheap transaction fee as compared to other types of transactions because there are no third parties or intermediaries involved.
Transparency: Cryptocurrency is a decentralized system whereby all information and transactions are been recorded and but are not controlled only by governments. The operations of a community or an organization are conveyed from one operational person or one operating center of leadership to the people through decentralization.
High-Speed Transactions: Because we all want our tasks to be completed promptly, cryptocurrency transfers are extremely speedy. Obviously, it takes much less time than the banking process and also fewer people involved.
Peer to Peer Transactions: As I previously stated, Bitcoin allows for peer-to-peer transactions, which means customers are independent of third-party support and can move their funds whenever you want.
Highly Secured: Cryptocurrency is created in blockchains, which are made up of many puzzles that must be solved. It is really difficult, which makes it safe.
DIS ADVANTAGES
Hack: Hackers, as we all know, used to engage in illicit activities. Yes, please! Hackers may be able to gain access to cryptocurrency.
Password can not be recovered: Because crypto provides maximum security and you will have your unique private key that only you know if anyone loses or forgets his password, this benefit could convert into a nightmare. If you forget your private wallet key, you could lose all of your assets at once.
Unlawful Activities: One of the most significant disadvantages of using Crypto in the enterprise is that it can be used for improper purposes, such as the black market since private wallets cannot be monitored due to the high level of encryption in blockchains.
Harmful to Environment: Cryptocurrencies are mined by computers or machines that consume a great deal of electricity and energy, as we all know. Other machines employ materials that are harmful to the environment.
In this lecture, we learned about the history of cryptocurrency, namely Bitcoin, as well as the reasons for its creation, how it can benefit us, and the benefits it gives, as well as some of its drawbacks. Overall, it is beneficial.
So this lecture comes to an end. As this lecture draws to a close, I'd like to express my gratitude to Professor @stream4u.
I'm hoping that this presentation will be beneficial to the novices.
I hope that, despite my best efforts, I was able to meet all of the task's objectives. So that's the end of my project. I hope you got the gist of what I said in class.
Thank you
ps: all the pictures have been sourced accordingly. The grammar was checked from grammarly.com while the markdowns have been done according to the Markdown Styling Guide.
cc;
Kindly requesting Professor @shemul21 for his review of my assignment.
regards,
@hamzaali01
