Genesis Block - Crypto Academy Season 5 - Homework task 3 post by @sahmie

Season greetings to my esteem steemians in this incredible community. I hope you are all doing well and having great days filled with good tidings in every aspect of life as the end of the year gets closer and closer. Please do stay safe and Travel safe.

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Today, I take a step further in my introductory to the crypto world as I write my third homework task. The topic today is the Genesis Block; without further ado, let's get to the business of the day.

QUESTION 3

• What Is Cryptocurrency?
• What Is Cryptography And How Does It Make Cryptocurrencies Secure?
• Explore The Steem Genesis Block And Sign In As Proof Of Completion?

WHAT IS A CRYPTOCURRENCY

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Cryptocurrency is a combination of two majestic words in Crypto and Currency.
At this point, I am guessing we are all familiar with the term currency as the medium of exchange for goods and services. But before accepting this definition, let's go way back to early generations that employed the trade by barter method for the exchange of goods and services, can we then say these items that were used in exchange for other goods or services are currencies? Yes, they are. Then, what are the qualities that make up a currency? For any note or item to be called a currency, it has to be generally accepted and these items used by the barter system was acceptable to all. From the barter system, mankind moved onto fiat notes as we developed and evolved into a digital world, which has ultimately led us to cryptocurrencies.

Just like our native currencies or fiat notes, cryptocurrency is a virtual/digital means of exchange that uses digital files as cash or money for the exchange of goods and services. In simple terms, it's a means of exchange in a digital form without any physical note or form and it has more to it as you can also trade cryptocurrencies for profits.

The origin of cryptocurrency dates as far back as 1998, even as bitcoin is known to be the first recognised cryptocurrency, there had been prior tries at establishing online currencies in the likes of Bit gold and B-money, which was proposed by a software engineer named Wei Dai but was never created.

The first-ever virtual currency that came into existence and was accepted as means of exchange for goods and services is Bitcoin, and it was developed by *Satoshi Nakamoto*, a powerful character in cryptocurrency whose identity remains Anonymous. Bitcoin was created when cyber devotees who that traditional fiat currencies were over-reliant on financial institutions (such as banks) and the government. After some initial struggles like every new product would experience, Bitcoin was welcomed with open arms, and this ultimately led the way for the creation of so many other alternative cryptocurrencies known as Altcoins. Currently, there are over 15,000 cryptocurrencies worldwide.

FEATURES OF CRYPTOCURRENCY

Like every creation in making, cryptocurrencies came with their unique features which include;

ANONYMITY
Under this feature, trades and transactions are tied to a random series of characters and not to the holders/individuals identity, either personal or company, therefore It is practically impossible to link contracts to people or companies.

NO SUPERVISORY BODIES
This is the absence of financial institutions and governmental control and regulation fees and restrictions. The sequence of cryptocurrency transactions is unregulated by authorities or financial institutions. This restricts the unfavourable fees and restrictions.

SECURITY
Cryptocurrencies are stored in special digital wallets, protected with a private key. Therefore, only the holder can gain access to the amassed funds. To enhance security, virtual currency owner incorporates encryption technology into their storage gadgets.

DECENTRALIZATION
This is a means or process whereby the supply and value of cryptocurrencies are regulated by the activities of their users and highly complicated protocols embedded into their governing codes, and never the conscious decisions of central banks or other regulatory bodies.

TRANSFER METHODS
Virtual currency transfers are autonomous of the user's location and the process is swift. These methods of cryptocurrency transmission differ reasonably from that of conventional currencies as the financial institutional model relies on banking systems.

HOW CRYPTOCURRENCY WORK

Cryptocurrencies being digital currencies are governed and controlled by highly sophisticated source codes and technical controls that secure and support them. Cryptocurrencies employ the use of cryptographic protocols in encrypting sensitive data transfers in other to secure their units. It also plays the import role of masking the identities of users, thus making transactions and fund streams difficult to be traced to certain individuals or groups. Cryptographic source codes utilize advanced mathematics and engineering protocols, thereby rendering the duplicating or counterfeiting of cryptocurrencies impossible.

Furthermore, the blockchain technology is used as the master public ledger for recording and storing all transactions and activities, it also serves as a means of validating ownership of any unit of the currency at any time. The use of Blockchain technology, therefore, prevents double-spending, or the manipulation of cryptocurrency protocol to permit the same currency units to be duplicated and sent to multiple recipients.

WHAT IS CRYPTOGRAPHY AND HOW DOES IT MAKE CRYPTOCURRENCIES SECURE?

WHAT IS CRYPTOGRAPHY

Also known as Cryptology, is a word coined out from two Greek words "KRYTÓ" meaning "HIDDEN OR SECRET" and "GRAPHEIN" which means "WRITE" or "LOGIA" which stands for "STUDY". Cryptography is the practice or study of methods for securing communication channels. In the book, Applied Cryptography, Bruce Schneier defines cryptography as “…the art and science of safekeeping messages.”

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In other words, cryptography is the mastery of hiding sensitive information and evidence out of the reach of third parties. It is the art of converting information from a readable state to unintelligible jargon. Cryptography involves codes, digital devices, complex rules, special decoders, software and such, to provide encryption and decryption.
Therefore, cryptography encrypts information in a way that permits only the planned receiver to decrypt and understand the information.
Just as you use sign language to discuss or instruct someone in public so the others around wouldn't comprehend your gesture except the receiver.

HOW DOES CRYPTOGRAPHY MAKE CRYPTOCURRENCIES SAFE?

Have you ever wondered how online shopping apps/sites keep your credit card information away from third parties? or how companies and social media platforms store your username and password away from the knowledge of any third party? All this is made possible through the use of cryptography.
Cryptography uses codes, digital devices, simple or complex statutes, special decoders and software for the sole purpose of providing encryption and decryption. Encryption is the act of turning plaintext into a ciphertext while the turning of ciphertext into plaintext, is known as decryption.

Features of Cryptography therefore includes;

• Confidentiality
• Integrity
• Non-repudiation
• Authentication

In other to secure information and transactions, cryptography employs the use of;

• Symmetric-key
• Hash functions.
• Public-key

SYMMETRIC-KEY:
Both parties (sender and receiver) share a single key in other to send and access the information. This, the sender utilizes this key to encrypt the plaintext and send the ciphertext to the receiver. While the receiver applies the same key to decrypt the message back to plain text.

PUBLIC-KEY:
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The Public-Key concept employs the use of two related keys (public and private key). The public key can be willingly distributed, while the private key, stays confidential. The public key is used for the encryption process while the private key is for decryption.

HASH FUNCTIONS:
This method doesn't employ the use of any key. It makes use of a hash value that is computed as per the plain text, therefore making it impossible for the contents of the plain text to be recouped.

In other words, cryptography practices are employed in cryptocurrency to keep our personnel information and transactions in a digitalised world safe from malicious attackers such as hackers and fraudsters.

EXPLORE THE STEEM GENESIS BLOCK AND SIGN IN AS PROOF OF COMPLETION

To carry out this task, I took the following steps below

1. Log onto Steemworld.org
   

2. Click on Block Explorer on the homepage as shown.
   

3. A dialogue box appears, with an input of number 1, click okay. (since Genesis is the first blockchain, no need to change this)
   

4. The next window displays the information on the Genesis block as seen below
   

5. Now, to log in for the proof of completion, click on sign-in in the top right corner.
   

6. A dialogue box pops up, Enter your Username and your Private Posting Key and click on okay.
   

7. Once logged in successfully, your account will pop up at the top left corner as seen below.
   

CONCLUSIONS

The world is evolving, and so is our currencies from the traditional fiat currencies to a modernized currency in Cryptocurrency as we now live in a world of technology, with technological advancements every blessed day.
Cryptocurrency I believe has come to stay as it's now accepted globally as means of payment, and it's backed by the all-mighty cryptography; a security process that tends to keep everything in check. And also backing it is the Blockchain technology which serves as a ledger (books of records), in this case, blocks to keep track of every transaction.

Under this task, I have come to learn more about the cryptocurrencies, cryptography and blockchain technology at large and I very grateful to Sir @Awesononso for educating me with such a wonderful lecture. Thank you

THANKS TO EVERYONE WHO DEEMED IT FIT TO GO THROUGH MY WORK. I TRULY APPRECIATE IT AS I WAIT PATIENTLY FOR YOUR FEEDBACK.

THANK YOU!