STEEMITCRYPTOACADEMY SEASON3/ WEEK8/ HOME-WORK POST FOR AWESONONSO/ BLOCKCHAIN REWARD
INTRODUCTION
Hey guys nice to blog again at this particular time of asking, it's really nice going through your post once again professor @awesononso, you have done a great job explaining in details, here I will do well to deliver my home-work task
In your own words, explain mining and block reward.
Explaining block-reward; block-reward for me can be defined as the gain you attain for successfully mining a block of a particular Crypto-currency, let's take for example Bitcoin, if you mine bitcoin, you will be given a designated number of Bitcoin regarding how many Bitcoin blocks you have mined.
As for the miners they makes use of computing devices in order to carry out their work effectively, each time a new blocks is initiated it's been verified by the rest other miners. A block reward can be said to been an overall Bitcoin that is been given to you whenever a block is mined, moving forward you will understand that the block reward gives room for total incensitive for miners expecially Bitcoin miners in oder to bootress different transactions carried out by the cryptocurrency.
Record keeping for transactions are very much important in order for bitcoin to function effectively as been structured, blockchain is very much decentralized like a bank ledger, once it's been created officially it can't be altered, miners have the responsibility to verify Different transactions and the ledger will be kept updated in real time.
Mining; mining can be defined as a process by which new cryptocurrency is introduced, and verified in the blockchain. be it Bitcoin or any other Crypto. This cryptocurrency been introduced should be maintained in a splendid composition and thus it is developed in a block-chain ledger. Mining is carried out using a computer system, although mining is subjective in some countries shall, using a computer system to mine solves Major probl like that of the problems of complexity.
Cryptocurrency mining is key and costly, most times is very much rewarding l, mining has a great overview since so many people have developed intrest in Crypto they know that miner's are rewarded with Crypto tokens in return.
While mining Cryptos you are mandated to earn Cryptos tokens, in this case you don't have to involve Fiat.
People who mine bitcoin for example gets Bitcoin in return for mining it, courtesy this there are various blocks that is been added to the blockchain.
Miners gets their reward for galvanizing out key solutions to a problem that seems to be complex, been able to detect the solutions means you have solved the problem of complexity, thus this will lead to a prolific total mining power.
In order to mine you need some devices like the GPU, meaning the graphic processing unit, you can also make use of ASIC, which means Application specific integrated circuit, this will help set your mining rig.
What do you understand by the Bitcoin Halving?
For you to know and Explain how Bitcoin halving is done first you should know how Bitcoin network operates/works. Bitcoin blockchain consists of nodes, as you all know without nodes, blocks, etc blockchain can't function, these nodes operates on Bitcoin softwares, histories of transac been carried out on the blockchain is been kept there safe and secured. A particular node contains alot the whole Bitcoin transaction's.
Nodes have the capability to accept or rejected transactions carried out via the Bitcoin network,
Before nodes accepts or rejects, enough checks will this be carried out in order to validate transactions, there are some parameters that the transaction have to poses so nodes will assists in checking then out, the transaction must contain what is called nonce, it must not surpass the original length.
The rescent Bitcoin halving took center stage on may 11, 2020.
Events courtesy Bitcoin halving is when mining reward is been bisected this reduced by half, as we know miners are rewarded for mining Bitcoin, Bitcoin halving is when the reward they get is been cut down.
The last Time Bitcoin was halved was in 2020, it resulted in something cool, the block reward was around 6.25 BTC. For you to know how Bitcoin halving is done you must first know how Bitcoin network operates.
Each time new bitcoins comes to fruition, that is block reward they are galvanized by miners they make use of expensive computing systems that will enable then to carry out their mining.
In every 210,000 blocked Bitcoin are been halved, the value is designated that miner's might win then, the value comes to fruition every four years.
Let's go back to 2009, around then Bitcoin itself came to fruition, miners kick-started from 50 coins it was mined after 10 minutes, that means the value of Bitcoin been issued out was around 12.5BTC.
What are the effects of the Halving on miners?
Halving have a great effect on miners, first it diminishes the reward miners gets by so doing the revenue that is been generated by adding transactions to the blockchain will be brought to minimum.
There will be a total increase courtesy the cost of electrical power used to amend some key mathematical issues, this will thus lead to increase in the price of Bitcoin, this will then lead to the miners to receive quarter of the number of coin as their reward.
Halving have a great impact on miners first it diminishes the reward that miner's of Bitcoin gets, thus the revenues that are been generated by supply thereby adding transactions to the blockchain will be brought to minimum.
It's quiet obvious that miner's reward is pretty much what regulates the total flows of new coins as a result of their modes of circulation, when the reward is been divided there will be a total demand in supply.
Halving is responsible for pulling down Bitcoin inflation rate, as we may know inflation has to deal with the downfall in the line of purchase that is been done for a particular thing. Ever since the creation of Bitcoin one of it's objective is to be deflationary, and it plays a key role to making sure that it's been ensured.
After halving is done Bitcoin experiences some kind of bull run as it's supply decreases in spurring demand, the price in question experiences a surge, thus the Uptrend isn't immediate all this contributes to affecting miners.
Let's not forget in a hurry in 2020, when the previous Bitcoin halving took center stage, the price for one Bitcoin was around $8,500, back then we didn't experience any key surge, until back then after six months, then the cryptocurrency started to accelerate at this time of writting this post the value of Bitcoin is at $45.
What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
Explaining this I need to explore the official block.com site, here you will find this, in the last one minute the height of the block 696198, here I will determine how many more blocks before next halving takes center stage.
It's not more news that Bitcoin Carry out it's halve in every 210,000 blocks. The upcoming mining will be seen as the 4th, therefore we shall officially be having to do with some calculations here
Let calculate the next height courtesy when the next halving will be done, calculating this we have 210,000x4 this will give us 840,000.
As we can see from the image I uploaded you will see that the current block height is 696198, blocks.
Now let's calculate the total number of blocks that will be attained before the next halving takes center stage. We move 840,000-696198= 143,802 blocks
Do you think Steem’s inflation rate reduction can affect other coins? Why?
Before we proceed its very important we know what inflation is all about, inflation for me can be define as the total increase in price, thus there will be a fall in the value courtesy the Fiat, but here we are talking about cryptocurrencies, Same thing is applicable here
Steem is not the benchmark of cryptocurrencies, so it's inflation, can't affect other coins in general, let's track our mind back then last two months when Bitcoin experienced inflation it's price was down in value, you will agree with me that it affected other coins in general, steem that we are talking about was totally affected too.
Steem doesn't have that upti-most power to influence other coins, it's inflation rate can't affect other coins in all ramification, the only cryptocurrency I see that it's inflation rate can affect other coins is Bitcoin.
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 know the current block on the Steem blockchain you need first to Explore steemscan, at the time of writting this post the current block height is 56474578, for you to get the next the total number of next blocks before reduction occurs is very simple.
You just need to know that the inflation rate of steem reduces by 0.01%, in every 250,000 blocks, so far on the steemit blockchain 225, have officially been done on the steemit blockchain so calculating it you will get 250,000x226=56,250,000.
Moving forward we will have, 56474578-56,250,000=224,578. Courtesy the next reduction we have 224,578.
Current block height is 56474578, and how many more block before the next 0.01% reduction we have 224,578.
Continuation of last week home-work we have
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)
Knowing the current steem price I have to Explore the coin-marketcap, official site at this time of writting this post the the value of BITCOIN is ranging around.
At this time of writting this post the current price of BTC is $45,381.63
Amount purchased $2,500
Now one satoshi=0.00000001BTC.
Value of Satoshi for the day we have
$0.0004534
$0.0004534x2,500=1.1334 to (3s.f) we will thus have 1.1, the reason why it's 1.1 is that 3 is rounded down numbers that are rounded up is from 5.
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)
To know the current rate of BNB I Explored the official coin-marketcap website and at the time of writting this post the current price is at
Current price of BNB is $402.45,
Purchase value of BNB worth $30
One Jager = 0.00000001
Moving forward then we have
$0.00000001x30=0.00000003 jagar
Then I will say $30 jagar purchase is equal to 0.000003 to (3.sf) jagar
CONCLUSION
- From my homework post I came to summary that block reward is the is the Profit you gain whenever you successfully mine a block of a particular Crypto currently, expecially Bitcoin. If you mine a Bitcoin you gain reward for doing that and your reward is given based on your mining capability.
Mining can simply be defined as the process by which is introduced into a blockchain at the Same process verified too as well, the crypt been introduced is been developed in a blockchain ledger, mining is done using a strong computing devices, although not all countries allows mining to take place in their domains.
Bitcoin halving is a process by which mining reward is been reduced by half, as we all know the latest mining took center stage in 2020, whenever halving is been done it affects miners alot as there will be excess cost on electrical power used in solving mathematical problems.
This is my summary and this is my homework trust me I really learnt alot professor, keep it up you really explained well, once again many thanks to you.