STEEMITCRYPTOACADEMY SEASON3/ WEEK8/ HOME-WORK POST FOR AWESONONSO/ BLOCKCHAIN REWARD
Greetings to everyone here. I found this lesson to be very important to the community and Prof @awesononso have done a wonderful job for detailing everything about the blockchain rewards.
1). IN YOUR OWN WORDS, EXPLAIN MINING AND BLOCK REWARD.
Mining is simply defined as the process by which newly Cryptocurrency is been introduced and being verified within a blockchain network. Miners gain Cryptocurrency as rewards for their proof of work when they give solution to mathematical problems and sophisticated problems. These complex puzzles that are solved by miners which requires expensive hardwares computers and quality time in the process, thus using such computers to find solutions to these problems makes it easy to go through with it.
Basically, transactions of different Cryptocurrencies witin a blockchain are being verified by miners and are added to a ledger of a blockchain. Many mining devices that are usually used are the graphic processing unit, application specific integrated circuit and others.
Block reward is the basically the reward that are given to miners for successfully mining a block to verify transactions of a particular Cryptocurrency. For example, A designated number of Bitcoin would be given to a miner depending on the number of Bitcoin the miner has mined. Thus, the block reward is said to be the total number of BTC that would be given to a miner.
Whenever a new block is been introduced to a network, different miners can easily verify the initiated block. Keeping transaction history within a network is very crucial when dealing with a decentralized systems, therefore miners have the ability to verify all transactions with an updated ledger.
What do you understand by the Bitcoin Halving?
Bitcoin halving: This involve the splitting of the Bitcoin reward gained by a miner for mining Bitcoin transactions into halves, that causing inflation and decrease in the price value of an excess Bitcoin on the market. Many investors and traders in crypto have realized that, Bitcoin halving can reduce inflation among most Cryptocurrencies and has become one of the most yearned event within the crypto world.
Basically, Bitcoin halving does not happened occasionally, but happens once in every four years. In the year 2020, the last Bitcoin halving occurred and resulted in giving out a reward of 6.25 Bitcoin, but the BTC halving has happened for only three times ever since mining of Bitcoin had started. When a block reward is due in every four years, miners use their computing system to carry out the mining where 210,000 are been halved and miners utilize the opportunity to make their profits.
What are the effects of the Halving on miners
The reward gained by miners after the addition of transactions to the blockchain would be affected by Bitcoin halving. Thus, there would be decrease in the generated reward.
A miner need an advance computing system, these systems is very expensive when using, which causes high cost in electric power. The high cost result in the increase in the price of Bitcoin, and this affect the reward gained by the miner to be decreased.
Halving causes the reward gained by miners to be halved again, therefore, most miners go loss in their mining activities.
Halving do have a great effect on the inflation rate of Bitcoin, by decreasing it. Since Bitcoin has a deflation role to play in crypto, miners always benefits from this effect.
What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)miners?
The screenshot below shows the current block height of a Bitcoin as at now to be 696681, before next Halving takes place, I would have to give how many more blocks to he determined.
Since Bitcoin Halving take place at every 210,000 blocks, then the yet to come fourth halving can be calculated as;
• 210,000 × 4 = 840,000
From the screenshot above, the current block height is 696681.
Similarly, 840,000 - 696681 = 143,319 blocks would be attained / remained before the next Halving.
Do you think Steem’s inflation rate reduction can affect other coins? Why?
The rate at which steem inflation reduced cannot have any effect on other coins either to increase or decrease them. This is because, steem coin is not major coin to have effect on other currencies but Bitcoin does. Bitcoin has a great effect where by reduction in inflation rate can cause more lost to many investors in other coins.
For example, Bitcoin inflation reduced in the past three months and this gradually affected many Cryptocurrencies including the steem. The steem rise and fall doesn't have any negative or positive effect on other coins, since reduction in inflation is affected by like 0.01% as compared to other coins on every 250,000 blocks.
What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?(Screenshots and Full working)
To check the current block height on the steem blockchain, one can use the steemscan.com site. At this of me writing this post, the steem block height is 56529763. Since the inflation rate of steem is reduced by 0.01% on 250,000 blocks.
Therefore the total number of reduction = 56529763 ÷ 250,000 = 226.119052
i.e, = 226 ( 3.sf).
Similarly, to calculate the number of block height in the next reduction;
226 × 250,000 = 56,500,000
Therefore, the total number of blocks that remains until next reduction to occur is;
56,529,763 - 56,500,000 = 29,763 blocks
This implies that, 29,763 blocks would be mined before the next 0.01% reduction would occur.
Continuation of last week home-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)
Bitcoin ranked the first on the coinmarketcap.
The below screenshot gives the current value of Bitcoin on coinmarketcap to be $47,148.01 on the day I performed this work.
When the amount purchase is $2,500.
This implies = $2500 ÷ $47,148.01 = 0.05302450729097BTC
A) But currently, 1 Satoshi is 0.00000001 btc
This implies that, 0.05302450729097 ÷ 0.00000001
= 0.05302450 Satoshi
0.0530 Satoshi (3.s.f)
B) current value for Bitcoin is $47,148.01 on coinmarketcap when performing the work.
Where,
1satoshi = 0.00000001
Therefore, value of Satoshi = $47,148.01 × 0.00000001 = $0.0004714801
App. $0.000471 (3.s.f)
What is the current value of BNB on the day you are performing this task? If you made a purchase of $30 then
From the screenshot below, the value of BNB is $433.96 on coinmarketcap the day I performed this work.
That is 1BNB is equal to $433.96
If I make a purchase of $30
Therefore, 30 ÷ 433.96 = 0.06913079546501 BNB
= 0.0691 BNB ( 3.sf)
a.) how many Jagers would you have?
1 Jager = 0.00000001 BNB
BNB = 0.0691
0.06913079546501 ÷ 0.00000001 = 6913079.546501 jagers
App. 6913079.546 jagers
b.) what is the value of a Jager for that day?
1BNB = 433.96
1 Jager = 0.00000001BNB
Therefore, 1jager = 0.00000001 × 433.96 = $0.0000043396.
Approximately = $0.00000434 Jager
Conclusion
From the lesson, block reward is basically the reward that one gains during the mining of block of a Cryptocurrency. For example, your mining capability identify the number of coin to be achieved during mining, such as Bitcoin mining.
While, mining is also the process by which mining of new blocks are done and verified with the addition of the transaction to the blockchain. This mining is done with expensive hardwares and required skillful miners to achieve the process. Miners who add some verified transactions to the blockchain ledger are given block rewards for their proof of work.
By @hmohammed14
Cc; @awesononso