CryptoAcademy Season 3 Week 6 | Homework Post for Professor @awesononso |Satoshi Nakamoto, Wei Dai and Cryptocurrency Units of Measurement
Introduction
Good day everyone,
Welcome to week 6 of season 3 in cryptoAcademy. I am kehinde Micheal and my steemit username is @msquaretwins. I am happy to have gone through the lecture presented by professor @awesononso on "Satoshi Nakamoto, Wei Dai and Cryptocurrency Units of Measurement." He has really explained extensively on the said topic. Thank you prof. Below is the answers to the questions posted in the lecture.
1. Who is Satoshi Nakamoto?
Satoshi Nakamoto is a person or group of people that is or are regarded as the founder of cryptocurrency. This person is regarded as the father of the first and popular known cryptocurrency, bitcoin. Following the popular economic crisis in the year 2008, Satoshi Nakamoto published a Whitepaper paper promising a better future of currency that will be independent of any government authority.
The paper described the currency as a digital currency that will be secured and allow peer-to-peer transaction without the input of third party, like government, companies, commercial institutions or banks. He further explain in the paper that the transaction will be recorded on a blockchain ledger and which will be distributed across the system accordingly.
In the year 2009 Nakamoto fulfilled what he published in the whitepaper by creating the first cryptocurrency, bitcoin. Hence, Satoshi Nakamoto is regarded as the father of bitcoin. The creation of bitcoin gave rise to other cryptocurrency we see today. Since then, bitcoin has kept on fulfilling the purpose for which it is created by the founder. And many people have been using it and millions of people have been profitable as a result of this invention.
In the year 2011, after Bitcoin has gained ground and has been widely accepted, Nakamoto disappeared. Therefore, Satoshi Nakamoto paved way for the world of cryptocurrency.
2. Write on two claims/theories of Satoshi Nakamoto’s identity.
Satoshi Identity has been a topic of discussion in the crypto space. Nobody knows who Satoshi is. Whether a male, or female, or group of people. But over the years many claims or theories of Satoshi Nakamoto's have been put forward. In this post I will be writing about two of this claims below.
Claim 1: Bram Cohen
Bram Cohen was born in America in the year 1975, the same year that Satoshi Nakamoto claimed to be born. He is the founder of bittorrent. Long before the development of bitcoin, Bram cohen has been playing on the development of bittorrent. He has once use the webnet Bitconjurer.org, which when thoroughly check has the name "bitcoin" in it. This could have led majority to say Bram is the real Satoshi.
Additionally, Bram wrote about hiding identity of oneself online in one of his article in 2009 around the same time bitcoin was created.
His recent project is called Chia which he called "green cryptocurrency" which according by him will be the exact opposite of bitcoin and Proof-of-work. This man has tweeted about Satoshi many times, he has not publickly declared to be Satoshi Nakamoto and he has not denied to be the real Satoshi. All these made the general public to believe that he might be the real Satoshi.
Claim 2: Dorian Satoshi Nakamoto
The picture above is the picture of a man that has the same name as the founder of bitcoin. This man's name is Satoshi Nakamoto. Could he be the popular known bitcoin founder? Dorian Satoshi Nakamoto is a 70 year old, retired physicist and a japanesse-American who has worked with Us Military.
Many people believe that Dorian is the founder of bitcoin. The claim was as a result of the statement “I am no longer involved in that and I cannot discuss it" he made when a popular America investigative journalist visited and interview him about the bitcoin. Another claim that reinforced the fact that Dorian could be the real founder of bitcoin was that his birth name is Satoshi Nakamoto.
As said earlier this man was a retried physicist and a well trained engineer. His experience and skills made people believe that he could be the real Satoshi.
Later, few days after the interview, Dorian release a word to the public that the statement “I am no longer involved in that and I cannot discuss it" was misconstrued for bitcoin project by the journalist. Dorian denied that he's not part of bitcoin project.
3. Who is Wei Dai?
Wei Dai is another important figure in the world of cryptocurrency. He is the founder of b-money. He went to the University of Washington where he graduated as a computer engineer. After his graduation, he worked with Microsoft in the design of cryptosystem. He worked to develop CryptoPP, VMAC etc. His most notable work is b-money. In 1998, Mr. Dai published a paper introducing "b-money" as the electronic distributed system. He was the first person to explained the properties of cryptocurriencies as a peer-to-peer transaction without the input of third party.
This man has made tremendous contribution to the world of crypto. Many of the core concept Wei Dai put forward in his paper were used to develop bitcoin. Satoshi Nakamoto contacted Wei Dai in 2008 while he was developing bitcoin. He was contacting Wei Dai via email through out this period. To that effect, due reference was made in the bitcoin whitepaper that Satoshi published in 2008.
As a result of Wei Dai contribution to the world of cryptocurrency, wei which is the smallest unit of ETH is named after him. His contribution and his network with Satoshi Nakamoto during the development of bitcoin cryptocutrency made people believed that he could be the real Satoshi Nakamoto.
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).
According to coinmarketcap the value of 1 Bitcoin today, being 04/08/2021 is $38,991.86
Let' see the picture of that below.
Before we calculate, let's check the value of some unit of bitcoin
| 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 |
Now let's calculate the corresponding current value of 1 Satoshi in Dollar
From the table above,
1 SAT = 1 × 10-8 ×1 BTC ....... eqn(i)
And currently, 1BTC = $38,991.86 .... eqn (ii)
Then, substitute the value of 1 BTC in equation (ii) into (i), we have;
1 SAT = 1 × 10-8 × 38,991.86
1 SAT = 3.899× 10-4
Or
1 SAT = $0.0003899186
1 SAT = $0.000390 (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).
The screenshot above is taken from Coinmarketcap. According to this, 1 ETH as at today, 4th of August, 2021 is $ 2,618.11.
Before we calculate the USD value of one Gei, let's us see some units of ETH in a table below.
| 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 |
Now let's Calculate the USD value of one Gwei of the current value
From the table above,
1 Gwei = 1 × 10-9 ×1 ETH .....eqn(a)
And currently, 1 ETH = $2,618.11 ...... eqn (b)
Then, substitute the value of 1 ETH in equation (b) into (a), we have;
1 Gwei = 1 × 10-9 × 2,618.11
1 Gwei = 2.618× 10-6
Or
1 Gwei = $0.00000261811
1 Gwei = $0.00000262 (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).
To transfer 0.001 to an account, from my profile I clicked wallet.
The wallet page appeared, and I clicked the small arrow from the steem to see where to click transfer. Then I clicked transfer from the drop down in the second screenshot below.
The transfer page then appear, I put 0.001 and a clicked next. In the next page, click ok to confirm the transfer.
I then Signed in to complete the transfer with my active key. The screenshot of this step and account history for this transfer are also attached below
I then tried to send 0.0001 STEEM to the same account. When I put the said amount in the amount tab, the response I got is "Use only 3 digit of precision" This means steem allow only 3 decimal place in the transcation and that the smallest unit of steem that can be transferred is 0.001 as seen in the screenshot below.
Conclusion
Although the real Satoshi Nakamoto is not yet known by the community, but It is no doubt that his hard work through the invention of popular cryptocurrency called bitcoin has paved way for the other cryptocurrencies, and it is blessing many lives till today. This notable work has it source in the work of Wei Dai, the cryptographer that proposed a digital currency called b-money in 1998. Therefore their contribution to the world of cryptocurrency can never be forgotten.
Written by: @msquaretwins
Cc:- @awesononso
Hello @msquaretwins,
Thank you for taking interest in this class. Your grades are as follows:
Feedback and Suggestions
You have done a very good job exploring the topic and expressing yourself.
You arrangement and presentation is also very good.
I have doubts on the image of Dai that you provided.
You have missed a small point in the last question.
Thanks again as we anticipate your participation in the next class.
Thank you so much prof @awesononso