CryptoAcademy Season 3 Week 8 / Homework Post For Professor @awesononso / Blockchain Rewards
Introduction
Good day everyone,
I welcome everyone to steemit CryptoAcademy community. I am Kehinde Micheal and my username here on steemit is @msquaretwins. I am happy to be submitting my homework post for Professor @awesononso who has presented the topic "Blockchain Reward" in a very dynamic way. He has done great work in the said topic by explaining it in a clear and precise way. I will be answering the question posted by Prof. in the homework section
Question 1
In your own words, explain mining and block reward.
Any time I hear the word mining, what comes to my mind is the movie I watched sometimes ago about coal mining. I would remember the hard work the miners do underground to mine coal. The transportation means from outside to the in where they carried out the mining is another story. Mining has not been easy overtime, but it does come with cool reward.
As we have mining for coal, gold and other commodities so also we have the same concept in blockchain but with little difference or can I also with different approach since mining in this case is done on the blockchain network.
When you do transaction in bank, the workers in charge of transaction will verify your transaction and stamped it and then make your transaction go through. In this case, the bank serves a body that regulate and control your transaction. In blockchain, there is nothing like third part or authority that controls this transaction. The transaction are verified by the blockchain users.
Mining in blockchain is the process by which the transaction done on blockchain are verified and added to the blockchain ledger. Those that do the work of verification are called miners. The miners do this work by solving mathematical puzzle which is called Proof of Work. Proof of work is a protocol that validate the transaction which then helps miners to get their reward. The miners compete among one another to mine transaction and the first miner to get it done get a reward which is called block reward.
Following the verification of the transaction, the miners then need to get the right hash for the transaction and then add it to the block which will be fit to the blockchain. Without right hash, the new block cannot be added to the existing one. Block reward is a reward given to the first miner to get the right hash for the new block.
Question 2
What do you understand by the Bitcoin Halving?
Bitcoin halving is the method used to cut the reward given to miners into half. This is done after 210,000 block is successful mined. This techniques also cut into half the supply of Bitcoin in circulation which serves as a way to keep the coin relevant until all the set 21M Bitcoin is pumped into circulation.
The miners received 50BTC as their reward from the beginning of BTC creation till 2012. The reward was halved from 50BTC to 25BTC in 2012. Then after successful mining of 210, 000 block in 2016, The reward was halved from 25BTC to 12.5BTC. And the last one happened in 2020, that time, it was halved from 12.5BTC to 6.25 BTC. This means that the current block reward miners get is 6.25BTC. With the series that Bitcoin halving is following, the next halving will be 2024.
Question 3
What are the effects of the Halving on miners?
The block reward miners get reduces to half at every successful mining of 210,000 blocks which correspond to four years. As a result of bitcoin Halving, the inflation rate is reduce which in turns causes the purchasing power to reduce maximally. Halving have effect on the price of bitcoin anytime it occurs. Although halving reduces the reward given to miners by half, it tends to double the cost of miners because of the positive effect it has on price of bitcoin.
Additionally, I believe that halving will also cost the miners to get additional computing capacity. Take for instance, the resources, computing capacity and hardware a miner used to get 50BTC in 2009 will not be able to deliver this kind of result for the specific period of years needed to get 50BTC.
Question 4
What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
Current Block Height on The Bitcoin Blockchain
The current block height on the Bitcoin Blockchain according to blockcypher is 696,551.
Let's now calculate the remaining blocks before the next halving
Note that halving occurs after every successful mined of 210,000 blocks.
Three halving has occurred in bitcoin. So the next halving will make it 4th time.
Which means the total blocks for 4 halving will be;
210000 × 4 = 840, 000 (blocks)
And the number of blocks on the Bitcoin blockchain as at the time of writing this homework is 696,551.
Therefore, to know the remaining blocks, we then subtract the current blocks from the total blocks for 4th halving, we have;
840,000 - 696551 = 143, 449 (blocks)
Therefore, the remaining blocks before the next halving is 143,449 blocks.
Question 5
Do you think Steem’s inflation rate reduction can affect other coins? Why?
Based on my own perspective about steem's inflation rate reduction, I don't think it can affect other coins. The only coin I think its halving can affect other coins is Bitcoin because it is the father of cryptocurrency and have power to influence many coins and tokens in the crypto space.
Question 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)
According to Steem block explorer the current block height on steem blockchain is 56,506,227.
Let now calculate the remaining blocks before the next 0.01% reduction
The reduction of steem occur at every 250, 000 block by 0.01%
And the current steem block height is 56,506,227.
To find the number of reduction so far, we then divide the current block height by the 250,000. We have;
56,506,227/250,000 = 226.024908
We then take the next whole number to solve block height for the next reduction.
Therefore, block height for next reduction will be 227 × 250,000 = 56750000
Therefore the remaining blocks before next reduction = block height for the next reduction - Current block height.
We have;
5675000 -56,506,227 = 243,773 (blocks)
Therefore, the remaining blocks before the next reduction is 243,773 blocks.
CONTINUATION OF LAST WEEK'S WORK
Question 1
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)
The current price of BTC according to coinmarketcap as at today August 19th, 2021 is $46,677.91
Recall:
1 SAT = 1 × 10-8 ×1 BTC ....(i)
And currently, 1BTC = $46,677.91 .... (ii)
Then, substitute the value of 1 BTC in equation (ii) into (i), we have;
1 SAT = 1 × 10-8 × 46,677.91
1 SAT = 4.667791× 10-4
1 SAT = $0.0004667791
1 SAT = $0.0004667791 (to 3 s.f)
(a) Let's calculate the number of satoshi for $2,500;
Let m represent the unknown SAT
1 SAT =$0.0004667791
m = $2,500
By cross multiplication, we have;
m × $0.0004667791 = 1 SAT × $2,500
m = (1SAT ×$2, 500) / $0.0004667791
= 5,355,852.479256453 Satoshi
= 5,360,000 (3 s.f)
(b) Value of a Satoshi for today = $0.0004667791 (to 3 s.f)
Question 2
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)
The value of BNB today being 19th of August 2021 is $428.43.
1 jager = 0.00000001 BNB......(a)
Currently 1BNB = $428.43........(b)
Subtitute the value of 1BNB in eqn (b) into (a), we have;
1 jager = 0.00000001($428.43)
1 jager = $ 0.0000042843
1 jager = $ 0.00000428 (3.s.f)
(a) Let's calculate the value of jarger for $30
Let V represent the unknown SAT
1 jarger =$0.0000042843
V = $30
By cross multiplication, we have;
V× $0.0000042843 = 1 jarger × $30
V = (1jarger ×$30) / $0.0000042843
= 0.00070023108 jargers
= 0.000700 jargers(3 s.f)
Therefore the $30 = 0.00070 jargers
(b) The value of a jager for today is $0.00000428 (3.s.f)
Conclusion
Since the inception of Bitcoin, blockchain mining has helped in the distribution of coins in a manner that makes the coin relevant in the crypto community while maintaining its purpose. Thanks to Mr Satoshi Nakamoto for the ingenuity used for the supply of bitcoin over the years. The miners are also appreciated for the good work of verification which help the transaction to go through through the use of proof of work.
Thanks to Dan Larimer, the founder of steem coin who has put in place many strategies in th distribution of steem coins while still maintaining the standard.
Thank you for reading.
Written by : @msquaretwins
Cc:- @awesononso