Crypto Academy/ Season 3 / Week 6 / Homework Post for Professor @awesononso —Satoshi Nakamoto, Wei Dai and Cryptocurrency Units of Measurement

Hello everyone. How is the week going over there?
It is another week in the crypto academy. The week has been going on well with lots of information on cryptocurrency here and there in the crypto academy. It is my pleasure to submit this homework to professor @awesononso. He talked about "Satoshi Nakamoto, Wei Dai and Cryptocurrency Units of Measurement". He really dealt with the topic in a very simple way. Thank you Prof.
That being said. At the end of the lecture, He asked six (6) questions. The questions are:

1. Who is Satoshi Nakamoto?
2. Write on two claims/theories of Satoshi Nakamoto’s identity.
3. Who is Wei Dai?
4. What is the current value of Bitcoin on the day you are performing this task? Calculate the USD value of one satoshi of the current value. (Show full working and to 3 s.f).
5. What is the current value of Ether on the day you are performing this task? Calculate the USD value of one Gwei of the current value. (Show full working and to 3 s.f).
6. Transfer 0.001 Steem to an account. Then send 0.0001 steem. Show what happens and state why.
   (Screenshots with username tag).

So, I will be attending to these questions one after the other. Follow me closely.

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QUESTION 1

• Who is Satoshi Nakamoto?

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Satoshi Nakamoto is/are the founder(s) of a popular cryptocurrency, Bitcoin. In 2008, The name authored and published a Bitcoin white paper and in 2009, the Bitcoin blockchain was invented.

The main aim behind the invention of the cryptocurrency is to provide an alternative way to conventional banking system where digital coins would be used for transactions and which will be a decentralized system that will solve most of the problems of centralized system.

Though, the name "Satoshi Nakamoto" was the one that published the btcoin white paper but nobody knows who this person(s) is/are. Nobody knows if it is a male or female; if it is a single person or group of people. All we know is that he is the founder of Bitcoin. The identity of the person (s) has been hidden for all the day long.

Research shows that the name was very active on Bitcoin blockchain from the start of btcoin invention. The name tried in the development of btcoin up untill December 2010. After that time, the name disappeared and up till today, nobody knows who is or are the person (s). Although there are claims of Nakamoto identity, but the identity is still hidden.

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QUESTION 2

• Write on two claims/theories of Satoshi Nakamoto’s identity.

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Claim 1 : Nick Szabo

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_{fig. 1: Picture of Nick Szabo}
^{IMAGE SOURCE}

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Nick Szabo is one of the person who people claim to be Satoshi Nakamoto. This guy is a computer engineer and he's also regarded as the pioneer of concept of a legal document called "smart contract concept."

A decentralized currency known as "Bit- gold" was formed in 2008 by Nick. The currency precede the invention of bitcoin. What makes people to think that this man Nick could be Satoshi Nakamoto is because of the concept related to that of btcoin he uses. He said on the network, bits would be created without having to depend too much on third parties. This concept is very similar to that of btcoin in that no leader does the validation and verification of transactions of the series of bits created on Bitcoin network.

Another major thing why people claim that Nick could be Satoshi Nakamoto is that the writing style of Nick resembles that of Bitcoin white paper. It was observed that the flow of thought and the writing pattern is very similar. Nick Szabo was investigated, but he denied the claim.

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Claim 2: Harold “Hal” Finney

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_{fig. 2 : Picture of Harold "Hal" Finney}^{IMAGE SOURCE}

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The picture above is the picture of Harold Thomas Finney. He was born on 4 May 1956 and died in 2014. He graduated from the California Institute of Technology as engineer. Shortly after his graduation, he worked as a video game developer. He was a programmer while he was alive.

He was the first person to download bitcoin software following it release. Also, the first transaction on bitcoin blockchain was the transaction done to Mr. Finney by Satoshi Nakamoto. His background as a programmer and his involvement in the early transaction of bitcoin made majority believed that he could be the real Satoshi Nakamoto. However, he denied this claim.

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QUESTION 3

• Who is Wei Dai?

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Wei Dai is a computer engineer who is very popular in the world of cryptocurrency because of his significant contributions. He studied computer science at University of Washington.

Wei Dai is known for his work of the Crypto++ cryptographic library. He also invented or created a cryptocurrency called "b- money"

Although, unlike Satoshi Nakamoto, Wei Dai identity is known but he didn't allow his pictures to get into the internet, so recognizing his face is very difficult.
There's this claim that Wei Dai could be Satoshi Nakamoto because Wei was one of the first people that Satoshi contacted before releasing Bitcoin white paper.
Satoshi Nakamoto wrote to Dai and said:

"I was very interested to read your b-money page. I’m getting ready to release a paper that expands on your ideas into a complete working system."
Source

But when Wei was Investigated, he said he didn't know the "guru" called Satoshi Nakamoto. He said referencing B-money by Satoshi Nakamoto in Btcoin white paper could be because Satoshi has read from his work after reinventing the idea of btcoin.

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QUESTION 4

• What is the current value of Bitcoin on the day you are performing this task? Calculate the USD value of one satoshi of the current value. (Show full working and to 3 s.f).

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To know the current value of Bitcoin, I am going to use coinmarketcap platform. To know the official website of this platform, let's Google search.

• Type "coinmarketcap (CMC)" on Google search box. It will bring the official website of this platform.
  Let's see the screenshot below.

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_{fig. 3: Searching the main website of CMC using Google}

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• Click on the website of coinmarketcap as see in fig. 3. After clicking this, you will be directed to the main page of this platform.
  Let's see the screenshot below.

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_{fig. 4: CMC Homepage}
Source

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• To know any cryptocurrency' value, use search box at the top of the page. See where arrow sign is pointing to in fig. 4. Then, type the name of the cryptocurrency and click on it.
  Below is the screenshot showing the value of Bitcoin I have searched.

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_{fig. 5: Btcoin value as at the Time of Writing this Post}
Source

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Now, in fig. 5, the value of btcoin as at the time of writing this post which is 6th of August 2021, 10:01am West African Time (WAT) is $ 41,015.80

Having known the value using CMC, let's now go into the calculation.
Just like fiat currency, cryptocurrency also has division. Satoshi is one of the divisions of btcoin. And there is a way it's calculated. Let's see the table below for the unit, symbol and values in BTC.

Units	Symbols	Values in BTC
mega bitcoin	MBTC	1,000,000
kilo bitcoin	kBTC	1,000
hecto bitcoin	hBTC	100
deca bitcoin	daBTC	10
Bitcoin	BTC	1
deci bitcoin	dBTC	0.1
centi bitcoin	cBTC	0.01
milli bitcoin	mBTC	0.001
micro bitcoin	μBTC	1× 10-6
satoshi	SAT	1× 10-8
millisatoshi	mSAT	1× 10-11

_{Table 1: Btcoin Symbol, Unit and value}

CALCULATION
From table 1 above, we can see that:
1 Satoshi = 1 × 10^-8 × 1 BTC
And 1 BTC = $ 41,015.80
Now let's put the value of BTC into the eqn.
So, 1 Satoshi = 1 × 10^-8 × 41,015.80
1 Satoshi = 0.000410158
1 Satoshi = 0.000410 (3 s.f)

QUESTION 5

• What is the current value of Ether on the day you are performing this task? Calculate the USD value of one Gwei of the current value. (Show full working and to 3 s.f).

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For ethereum, the same platform, coinmarketcap is used to know its current value. The screenshot showing the current value of ether is shown below.

_{fig. 6: Ether value as at the Time of Writing this Post}
Source

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The current value of Etherum as at 6th of August 2021, 10:04am, West African Time (WAT) is $ 2, 777.42

Now, having known the current price of ether, let's go into calculation. But before that, the table below shows the units, symbol and value in ETH.
Wei is the unit of ETH.

Units	Symbols	Values in ETH
Ether	ETH	1
Peta	Pwei	0.001
Tera wei	Twei	0.000001
Giga wei	Gwei	1 x 10-9
Mega wei	Mwei	1 x 10-12
Kilo wei	Kwei	1 x 10-15
Wei	Wei	1 x 10-18

_{Table 2: Ether Symbol, Unit and value}

CALCULATION:

From table 2 above,
1 Gwei = 1 × 10^-9 ×1 ETH
1 ETH = $ 2, 777.42 (NB: Current value of ETH on the 6th, August 2021, 10:04am, WAT)
Now, let's put the value of ETH in the eqn.
We have:
1 Gwei = 1 × 10^-9 × $ 2, 777.42
1 Gwei = 0.00000277742
1 Gwei = 0.00000278 (3 s.f)

QUESTION 6

• Transfer 0.001 Steem to an account. Then send 0.0001 steem. Show what happens and state why. (Screenshots with username tag).

To transfer steem to an account.
Click on wallet on the steemit account profile. See the screenshot below.

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_{fig. 6: My Steemit Account Profile}

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Then you will directed to your wallet. In the wallet, click on "steem" written in green color. Some features will appear as pop up. Click on transfer. See the screenshot below.

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_{fig. 7: My Steemit Wallet}

Then on clicking"transfer", a page will be shown where you will enter the username of the person you want to transfer to, the amount and memo.
For this homework, I have been asked to transfer 0.001steem and 0.0001 steem to an account.

• First Transaction : 0.001 Steem

I will do the transfer of 0.001 steem first.
See the screenshot below.

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_{fig. 8: Transfer Page}

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The user I'm transferring to "focusnow" as seen in fig. 8. Then after inputting all the details, you click next. You confirm the transaction in the next page it will show. See the screenshot below

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_{fig. 9: Transaction Confirmation Page}

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Then, you then enter your active or owner key in the next page and click on sign in. Then, the transaction is complete.

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_{fig. 10: Transaction Verification with Active Key Page}

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Let's go back to the main wallet page to see if we have notification of the transaction. Tadal! In the wallet page, we have the notification. See the screenshot below.

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_{fig. 11: Transaction History}

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In fig. 11, we can see that **0.001 Steem** has been transferred successfully to the user "focusnow".

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• Second Transaction: 0.0001 Steem

Now, let me do the second transaction, which is 0.0001 Steem
In the page where I will input the details of the user I want to transfer to and the amount, I used the same user "focusnow" and the amount I want to transfer this time around is 0.0001 steem. I input the said the amount in the amount box. Then I clicked 'next'. But something happened. Let's see the screenshot to see what I got.

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_{fig. 12: Transaction Page with "Error Message"}

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In fig. 12 above, we can see the response I got after clicking on the next. The response is "use only 3 digits of precision". This means that we can't transfer anything lower than 0.001. That is, the lowest amount of Steem that can be transferred is 0.001
And what is observed is that the lowest amount has only 3 decimal place. So anything like four decimal place cannot be transferred.

CONCLUSION

Satoshi Nakamoto is/are the founder(s) of the first and popular cryptocurrency, Bitcoin. The identity of the name "Satoshi Nakamoto is not known. Nobody knows whether the name is a male or female, whether it is a single person or group of persons. The name invented Bitcoin to be a digital currency which will serve as an alternative way to conventional banking system which will solve most of the issues or problems associated with this centralized system. Thanks to Satoshi Nakamoto. Bitcoin has given rise to many Cryptocurrencies which we can see and invest in today.

Just as fiat money or currency is divisible, cryptocurrency is also divisible. If it is not, people who are not rich enough would not have had opportunity to invest in some cryptocurrencies whose value is high. So, the units and value of these cryptocurrencies are different. Thanks to Professor @awesononso for bringing this topic up so we can learn one or two things.

CC: @awesononso
Written by @msquaretk