STEEMIT CRYPTO ACADEMY SEASON4-HOME-WORK POST FOR TASK3
INTRODUCTION
In the world today technology has taken over almost everything we do in a concise manner, you even see blockchain technology inhealth-care, our daily activities are now been conducted on blockchain, our regular financial institution doesn't get petronized compared to what we see today in blockchain technology, our financial institution is basically centralized, that means it's been controlled by a central authority.
Blockchain technology is totally decentralized and the information there are been stored in blocks this makes it very difficult for a third party to alter informations been stored in there, sometimes we define blockchain as a decentralized system that stores informations that can't be compromised.
With blockchain you can operate an open source courses, let's say you have a company you can store various inform of your staffs in there, and all your staffs will get access to it whenever they want to, that means blockchain operates in an open system. Cryptocurrencies operates on blockchain, that's why every informations about cryptocurrencies are seen very rigid. This brings us the main talking point for today what cryptocurrency is all about.
WHAT IS A CRYPTOCURRENCY
Cryptocurrency can be defined as a vitual currency that has the full backing of cryptography which makes it very secured by so doing providing full rigidity, cryptography helps in securing cryptocurrency and it prevents the act of double spending, this means sending one particular Crypto in double manner like sending one BTC twice that's more like a fraud so cryptogrphic function helps in aborting such gesture.
Many cryptocurrencies are seen operating on a block-chain network, blockchain is actually a distributed ledger that stores informations thereby making it very difficult to be altered by third party, one of the major characteristics of cryptocurrency is that they are decentralized in nature thereby they aren't issued by any central government.
KEY POINTS TO NOTE
cryptocurrency is refered to as a digital assets basically based on a network that is shared across various computers. Die to the fact that they are decentralized in nature, government doesn't have any hands in their control.
Blockchain has so many roles it plans ever since the inception of cryptocurrency, the viscosity of data Transactions depends on the Effectiveness of blockchain technology, blockchain is very crutial to many cryptocurrencies.
So many people have negetive views about blockchain technology, some say it distracts many films and industries expecially our financial systems.
so many people criticize cryptocurrency alot including the seen that it's used to galvanize so many illegal activities, and been vonurable most times, it's high Exchange rates, and it's fluctuations methods all round, Anything that's is seen bad most-times have a concise advantages too, cryptocurrencies have the characteristics of been transparent, portable and totally secured.
ADVANTAGES AND DISADVANTAGES OF CRYPTOCURRENCY
| ADVANTAGES | DISADVANTAGES |
|---|---|
| Transferring of funds seens very eazy with Cryptocurrency, transactions are direct between the sender and the receiver this is been executed without the aid of a third party. | The decentralized nature of cryptocurrency token gives room for several illegal activities, like money laundry, and the act of double spending. |
| Transferring cryptocurrency you need public keys, and private keys too as well, other system are involved too like the proof of work, and the proof of stake, cryptocurrency Transactions can be traced too. | whenever illegal activities are carried out using cryptocurrency it is usually very hard to trace, because of its anonymity, some crypto assets are very much private than others. |
| Cryptocurrencies are been stored in wallets, and they have private, and public keys, this keys aren't disposed to anyone because they are used to sign various transactions, transferring of funds from one account to another comes with little fees, this makes user's to limit their view about our financial institutions banks for key transfers. | identical coins do exist and this brings about controversy among various investors regarding the reality of cryptocurrency all round, let's take for example we have the Bitcoin, and we have the Zcash, all this cryptocurrencies are difficult to track when they are used illegally, either for tax evasion or something criminal. |
WHAT IS CRYPTOGRAPHY AND HOW DOES IT MAKE CRYPTOCURRENCIES SECURED?
It will be nice we know what cryptography is all about before we progress talking about how it makes cryptocurrency secured, cryptography can be defined as a process that involves protection of informations and communication through coding, informations sent or received are been coded meaning only the sender or the receiver has the sole mandate to understand what is entailed in the informations been issued out.
I did computer science when I was still schooling we highlight cryptography, as a means to safeguard informations and communications, through mathematical concept which is associated with calculations summed up together to yield algorithm. In this case informations are been structured in a way that it's been deciphered,
Cryptography key generation is very important and it has a tool used in generating it which is deterministic algorithm, this provides assistance in so many ways which includes digital signings, various key generation, protection of data privacy, and other confidential informations put together, we all know that blockchain stores data on its various blocks.
HOW CRYPTOGRAPHY MAKES CRYPTOCURRENCY SECURED
Haven known what cryptography is all about it's nice we know how it secured cryptocurrencies in various facets.
Confidentiality:informations are seen subjective and cannot be understood by a third party who absolutely have no business with the coded information been desciminated.
Massive integrity;informations stored can't be stolen, or the Transactions conducted between the sender and the receiver, at this process the alteration will surely be detected.
Authentication;confirmation of identity comes to fruition here, the person sending, and the receiver has the mandate to confirm each other's identity and other vital informations.
EXPLORE THE STEEM GENESIS BLOCK AND SIGN IN AS PROOF OF COMPLETION
The Steem Genesis block can be found in https://steemworld.org you Explore it and thus follow the process, let's get the ball rolling.
Step1
- I signed in to steemworld.org and I imputed my private key, secondly I clicked on block explorer and I proceeded.
Step2
- At this phase the block number is 1, what I did was to click on ok, and I proceeded. Another phase has to pop up.
- At this phase I have officially explored the Steem Genesis block
Block ID
0000000109833ce528d5bbfb3f6225b39ee10086
previous ID
0000000000000000000000000000000000000000
signing key
STM8GC13uCZbP44HzMLV6zPZGwVQ8Nt4Kji8PapsPiNq1BK153XTX
Witness signature
204f8ad56a8f5cf722a02b035a61b500aa59b9519b2c33c77a80c0a714680a5a5a7a340d909d19996613c5e4ae92146b9add8a7a663eef37d837ef881477313043
Transaction Merkle Root
0000000000000000000000000000000000000000
CONCLUSION
From my homework task I was able to tell you that blockchain is a decentralized ledger that stores information that is almost impossible to be altered, informations sent into a block-chain is been stored in blocks, And this blocks works in peers with each other. Blockchain operates in a open source system this makes it possible for everyone to view whatever information that is been stored into the blockchain.
With the inception of blockchain technology our financial institution have experience a little set back because so many people are begining to petronized the decentralized blockchain technology, Transaction fees there are very minimal compared to our popular financial system.
Moving forward I highlighted that cryptocurrency is a vitual currency that operates on the backing of cryptography which makes it totally secured, I feel the best place cryptocurrencies can operate is on blockchain, and trust me that's what is happening, one good characteristics of cryptocurrencies is that they are fully Decentralized in nature meaning that aren't controlled by any central authority.