Steemit Crypto Academy Season 4 - Homework Post for Task 3
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What is a Cryptocurrency? What is Cryptography and how does it make cryptocurrencies secure? Explore the Steem Genesis Block and Sign in as proof of completion.
What is a cryptocurrency?
A currency is something that is accepted as a facilitator of exchange either for goods or for services rendered, meaning it is accepted by a large number of people as a means for making payments in transactions.
Most currencies are government issued and are unique to a particular country.
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A cryptocurrency on the other hand is a digital money. Using Blockchain technology and Cryptography, it is each unique on its own and cannot be tampered with.
Cryptocurrencies have began a wave of revolution changing everything conventional about making trades. Unlike liquid cash which can be handled, they are not physical hence you have to employ the use of various wallets to store them.
One unique feature of cryptocurrencies that had widened its popularity is that they cut across nations and the value is not determined by any government but by how much is in supply and the demand for them.
A lot of cryptocurrencies has come into existence today, some represented as tokens or as coins. The most popular amongst all of this is the Bitcoin also called BTC.
HISTORY
Although the use of cryptography was long before the birth of the Bitcoin. The Bitcoin has changed the view and popularity regarding cryptocurrencies.
It was the first cryptocurrency and was created by a person of group called Satoshi Nakamoto, he wanted to create a form of payment that didn't confirm to the normal institutions that were in place.
Being decentralized it became a form of currency that had no ties to any financial institution and no singular authority. I like to relate it to having a democracy , a currency of the people, made for the people, and used by the people.
PRICE
Crypto prices are dependent on the level of it's demand and supply available. Basic economics shows that when there is a large demand for something and not enough supply, this will raise the price. And when there is too much supply but no one is interested in demanding the prices will drop.
This is also the same with cryptocurrencies, and both factors is what brings about the final market value for that particular cryptocurrency.
UNIQUE FEATURES
Some unique features of cryptocurrencies include
| Feature | Explanation |
|---|---|
| Decentralized | No authority binds them like other government issued currencies |
| Price | The price of a cryptocurrency is dependent on the demand and it's supply |
| Cryptography | Using Cryptography every transaction is secure and cannot be changed for malicious use |
| Storage | Cryptocurrencies are stored in wallets unlike cash which can be handled. |
What is Cryptography?
If your aren't familiar with the word crypto, you must at least have heard of encryption and decryption.
To encrypt something is making it coded so as not to be readable, while to decrypt is making something coded to be be readable. It is simply hiding and revealing of data.
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Crypto means hidden, and graphy means writing or drawing. Both word are coined from Krypto and graphein, both having Greek origins.
Cryptography is a form or writing in which the message has been coded and only the sender and receiver can understand the meaning of the sent content.
Like i mentioned earlier amongst unique features of cryptocurrencies, Cryptography has made them unique because although they perform same functions each cryptocurrency is uniquely made.
Cryptography was very much used during the world war as a means of sending messages which the other side could not interprete.
Supposing General A wants to send a message to a Colonel in one of the regiments under his control.
The message is first in the readable form which can be understood by anyone. Then the message is encrypted using a code that is familiar to the intended receiver which is the Colonel.
Upon receiving the message, the Colonel has to use a decryption code to reveal what the message contains before it is readable to him.
GENERAL A WRITES- Send me a cook
Uses encrytion code and sends to Colonel
ENCRYPTED MESSAGE - +:/6 J: 2 ?""*
Uses decryption code upon receiving message
COLONEL READS - Send me a cook
How does it make cryptocurrencies secure?
Cryptography helps to secure cryptorrencies because it cannot be tampered with, making each cryptocurrency unique.
Important details such as user data or private information are safe from third parties or cyber attacks common with regular financial institution.
To access a wallet, you need your private key which is randomly generated by the system using Cryptography, eliminating hacks and password thefts.
I believe much of the popularity surrounding cryptocurrencies is the anonymity it brings toits users, you do not need real life details to make a transaction.
Cryptography can be thought of as that fort Knox security that lays the foundation to why cryptocurrencies can be used for secure transactions.
Explain the steem Genesis block and sign in as proof of completion
To explore the steem Genesis block, we visit the site steemworld.org or click this link(https://steemworld.org/)
to access.
I will showing my Explanation in some easy steps.
STEP 1
Visit the site https://steemworld.org/ on your device or click the link.
This is the homepage of steemworld.
STEP 2
To explore the block we click on Block Explorer
STEP 3
The first block on the steem Blockchain is block 1, so we click ok in the pop up box shown.
STEP 4
The following information on the steem Genesis block is displayed
The information displayed above is displayed in a tabular form.
| Information | Details |
|---|---|
| Timestamp | 2016-03-24, 17:05:00 |
| Block id | 0000000109833ce528d5bbfb3f6225b39ee10086 |
| Previous id | 0000000000000000000000000000000000000000 |
| Signing key | STM8GC13uCZbP44HzMLV6zPZGwVQ8Nt4Kji8PapsPiNq1BK153XTX |
| Witness | initminer |
| Witness signature | 204f8ad56a8f5cf722a02b035a61b500aa59b9519b2c33c77a80c0a714680a5a5a7a340d909d19996613c5e4ae92146b9add8a7a663eef37d837ef881477313043 |
STEP 5
To sign in, click the sign in icon at the top right hand corner
STEP 6
Then I input my username and private posting key
STEP 7
Sign-in by hazmat
CONCLUSION
This lecture class and it's assignment further improved my knowledge of just how much cryptography relates to cryptocurrencies.
Steemworld also provides a nice and easy user interface to getting information easily about steemit.
I look forward to your review of my assignment.