The Genesis Block- Steemit Crypto Academy Season 4 - Homework Post for Task 3

in SteemitCryptoAcademy2 years ago

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Question 3

a) What is a Cryptocurrency?

b) What is Cryptography and how does it make cryptocurrencies secure?

c) Explore the Steem Genesis Block and Sign in as proof of completion

Introduction

Greetings professor @awesononso, hello dear steemians. I am glad to be part of this homework task; It is always a pleasure to learn.

Let’s get straight to exploring the questions in-depth.

a) What is a Cryptocurrency?

According to the Oxford Dictionary, a cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority. Cryptocurrency allows secure online payment in terms of virtual tokens on a blockchain. In simple words, it is virtual coins

The main distinguishing features between crypto currency with digital currencies and fiat money are;

  • Decentralization: Unlike the traditional regulation by the central bank and government authorities, cryptocurrency has no control. Rules only are established by the community

  • Security: Inorder to completely execute(receive) a transaction, a private key is required which if kept well is known only by the receiver

  • Anonymity: Users of cryptocurrency can be total anonymous which is an impossibility with electronic wallets like PayPal which requires ones information with registration as well as banking institutions

  • Transactions: Due to central authority monitoring, accounts can easily be blocked or tagged suspicious. With cryptocurrency, transactions are automatically added to the blockchain which is irreversible forever . Because there is no intermediary, no one could block your wallet or transfer funds. Also, the transactions have high speed and low commission

  • Transparency: Though accounts are anonymous, one could tract crypto transactions and monitor them. This is not the case with fiat money as only authorities like the government access information transactions

b) What is Cryptography and how does it make cryptocurrencies secure?

Cryptocurrency originates from the word cryptography. Cryptography on its path is the combination of two words; Crypto and Graph. Crypto means hidden or secret or codes or concealed and Graph means to write. Therefore in its simplest form, Cryptography is the art of transmitting hidden or secret messages that only the intended receiver can understand

Cryptography secures and protects data during communication. This means it prevents unauthorized persons from accessing any confidential data. Messages communicated are understood and translated by what is known as;

Encryption and Decryption

Encryption is when a message is transformed in an unrecognizable manner and sent over a network. Encryption converts normal text into an unreadable form. For example an employee sends vital information to the manager

On the other hand, when the message is received and translated or converted to its original form, it is known as decryption. Decryption converts the unreadable data into its original form. For example the manager receiving and understanding the message received from the employee

Usually;Keys are used for encryption and decryption

Symmetric key encryption is when the same cryptography keys are used for both encryption on plaintext and decryption cipher text

In Asymmetric encryption, two pairs of keys are used. The public key which is available to all and the secret key which is meant only for the recipient

The keys used are;

  • Public key: It is the address of the wallet. Public keys are used to encrypt messages for the receiver

  • Private key: It is used to sign into the transaction. Private keys are used to decrypt messages by the receiver. Without the private key, there is no proof of ownership.Note that private keys can be used to encrypt and decrypt.

  • Pre-Shared Key in cryptography is an earlier shared secret through a secure channel between the to parties involved before use.

Encryption and Decryption are important in that;

  1. Confidential data such as password and login ID are protected.

  2. Your data is securely protected as no one else can access it. The confidentiality of private information is protected

  3. Encryption and Decryption helps in network communication

  4. It ensures that files have not been altered

  5. Equally, it prevents plagiarism

  6. More so, it verifies the transfer of digital assets

c) Explore the Steem Genesis Block and Sign in as proof of completion.

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  • Next, I accept block number one by clicking on ok
    The Steemit Genesis Block is referred to as “Block 1”

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  • And next, the details of the steemit Genesis Block are displayed

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  • Inorder to sign in, I click on sign in field on the top right hand of the page

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  • Next, I input my username and private key respectively and confirm with ok

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  • You can see at the top right that I am successfully signed in.

Conclusion

Without mincing words and from all indications, cryptocurrency is the currency for now as well as tomorrow(the future) . It is well secured with numerous advantages and the fact that users remain anonymous and their inputs concealed is something that can not be left out.

Thank you once again for this opportunity to learn.

Screenshots gotten from https://steemworld.org./

cc: @awesononso

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