Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards||Homework Post For Professor @awesononso by @mayureshpandit
Hi friends,
Welcome to my homework task post for professor @awesononso.
In this post, I will answer all the homework questions. Firstly I like to thank @awesononso as they explain all the deep-level concepts in very simple words. Let's begin with the homework task.
Homework Task Questions
Q.1 In your own words, explain mining and block reward.
Q.2 What do you understand by the Bitcoin Halving?
Q.3 What are the effects of the Halving on miners?
Q.4 What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
Q.5 Do you think Steem’s inflation rate reduction can affect other coins? Why?
Q.6 What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?(Screenshots and Full working)
Continuation of last week’s work:
Q7. 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)
Q.8 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)
(Screenshots of current value should be provided)
Q.1 In your own words, explain mining and block reward.
- Mining The Crypto
Mining the cryptocurrency is the process of validating the transaction ledger. The word "Mining" is a little bit misleading here as mining is to maintain the ledger in a decentralized manner. Anyone can participate in the mining process. To join the mining process you need a high-power computer which able to solve the cryptographic mathematical solution. Once your computer can solve the solution for the problem and validating the transaction then you are rewarded with a block reward + transaction fees. Mining totally depends on the processing power of your mining machine.
- Block reward
Is the reward which gets to the miner in return of successful transaction of crypto on their mining computer.To validate the transaction of crypto Mining computer need to solve cryptographic mathematical transactions.
Q.2 What do you understand by the Bitcoin Halving?
Bitcoin is very innovative idea introduced by Satoshi Nakamato And it design in the way that without a group of mining machine you can't do any transaction for the bitcoin and for the transaction verification miners are gets some bitcoins as reward.
And there is two rules Satoshi Nakamato is defined rule for the Bitcoin 1 is the max total supply of Bitcoin is limited 21 Million and 2nd rule is whenever 2,10,000 blocks successfully mined there will reduction of mining rewards till the time bitcoin has reached the 21 million coins. The process of reduction in mining rewards after 2,10,000 blocks is called Bitecaoin halving.
Q.3 What are the effects of the Halving on miners?
As we saw the halving it simply cuts the half of the rewards of miners. It simply means the cost of the mining is the same but what they received as rewards it will be definitely less. Some small miners will facing the loss and due to that they will not do mining but this will not impact on bigger miner as they already prepared for halving and they will hold their for sometime and they will sell their reward when bitcoin reaches the all time high. As we saw in the history bitcoin reaches the all time high after the halving event.
So as per my understanding small miners of bitcoin will close their operation as their costing remains same but rewards they received will be less.
Q.4 What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
From the above screenshot of the bitcoin blockchain explorer website, you can see that the current block height is 696,501. Since bitcoin halves after every 210,000 blocks and has already been halved three times in the past, this upcoming halving will be forth time.
Then block height for the next halving = 210,000 * 4 = 840,000 blocks
And No. of Blocks till the next halving is = block height for next halving - current block height
No. of blocks until next halving = 840,000 - 696,501 = 143,499 blocks
Q.5 Do you think Steem’s inflation rate reduction can affect other coins? Why?
I think Steem can affect on others coins also because steem tokens are invented for the rewarding good content creators as we see steem is pretty pouplar in all countries but slowly steemit user base increasing. As we know the steemit platform lot of creators like to promote their content so they will try to hold more steem power in their account that time is not far from today. Steemit inflation rate reduction and increase in demand of steem token will definitely affect other tokens positive and negative in both way. Some coins will have positive impact and some coins will have negative impact.
Q.6 What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?(Screenshots and Full working)
The screenshot above I took from steem scan and it show that current block height is 56,498,104.
The Steem inflation rate reduces by 0.01% every 250,000 blocks as per the @awesononso professor document.
So Current block height is = 56,498,104 blocks
To find number of reductions so far: 56,498,104/250,000 = 225.992(3 sf)
By rounding off we get 225 reductions so far.
The next whole number we need to calculate the block height for the next reduction that is 226.
Block height for next reduction = 226 x 250,000 = 56,500,000
Number of blocks until next reduction
= 56,500,000 -56,498,104 = 1896 Blocks
Q7. 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)
Bitcoin current value is $44,764.68
If I purchase bitcoin worth $2,500 then I will get 0.0558 BTC ($2,500/ $44,764.68)
a.) No. of satoshis = 0.0558/0.00000001 = 5,580,000 satoshis
satoshis is the smallest part of the bitcoin and that value is (0.00000001 BTC).
b.) The value of 1 satoshi for today = 0.00000001 * $44,764.68 = $0.0004476468 ~ $0.00044 (3 s.f)
Q.8 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)
Today the value of BNB coin is $401.86 and if I purchase $30 BNB coin than I will get 0.0746528641815 ~ 0.074 BNB(3 s.f)
a) No. of Jagers I received = 0.074/0.00000001 = 7,400,000 Jagers
Jagers is the smallest part of the BNB and that value is (0.00000001 BNB).
b.) Value of 1 Jagger for today = 0.00000001*401.86= $0.0000004086 ~ $0.00000040
Conclusion
I really wanted to thank professor @awesononso because of him I able to learn about bitcoin and steem coin and main concepts of crypto mining and how miners are rewarded. Before that I didn't know about knowledge about crypto mining. In this post I tried to explain mining and halving concepts of crypto.