Crypto Academy Week 7 - Homework Post for @sapwood submitted by @salmanwains

First of all I'm really thankful to @steemitblog , @steemcurator01, @steemcurator02 and all the professors of SteemitCryptoAcademy specially Professor @sapwood. We are learning a lot from these lessons started by the Steemit Crypto Academy Team.

In this week 7 lecture of Professor sapwood, we got to understand that What is Inflation? Difference between PoB & Definite Rewards, How many new Steem tokens are being minted per Block? Recovery Account and Private messages etc. etc.

Let's move forward to the Homework Task assigned by professor sapwood

Part-1

(1) As most of the STEEM tokens will be minted in the next 10 years or so(on account of inflation), how important it is for you to build your SP in the next 10 years and build significant influence power in the form of SP? How difficult will it be to earn STEEM rewards after 2031? From 2021 to 2031 how many STEEM tokens are going to be minted(approx)? In which year the inflation and Block reward is likely to saturate(tentatively)?

As we got to know from the professor's lecture of Week 7 that inflation rate is decreasing every year almost at the rate of 0.42%, So considering the current inflation rate 7.69%, we can say that after 10 years in 2031 the inflation rate will be at almost 3.49% (which is shown in the below Picture 1. as well)

Virtual Supply

Virtual Supply (as shown below in Picture 2) right now is 389,081,505.242 Steem.

As from the Week 7 lecture, we got to know the formula for calculating new STEEM tokens being minted per Block which is...

new_steem = ( ( virtual_supply * current_inflation_rate ) / (BLOCKS_PER_YEAR ) )

So, by putting values of virtual supply, current inflation rate and Blocks per year (which is fixed) in the formula.

New STEEM being minted per Block= ((389,081,505.242 * 7.692%)/(10,512,000))= 2.84 STEEM

How important it is for us to build our SP in the next 10 years?

It is very much important for us to build our SP in the next 10 years or so. As, we already know from the lecture that in December 2016 (in the start), the inflation rate was set to 9.5% and this inflation rate is decreasing every year by 0.42% which is right now after 4 years stands at 7.69% and it will continue decreasing until the inflation rate reached to 0.95% which will probably happen in 2037 (by looking at picture 1.)

The new STEEM tokens being minted per Block (which we calculated above) are simply Block Rewards.

So, by looking at the above graph (picture 3.), we can see that Block rewards will almost remain same for next 10 years (with just minor difference every year).

But after 10 to 12 years or after 2032 (we can see that from the above picture 3) Block rewards are going down every year and most probably will reach at 0.70 STEEM per Block in 2037 when the inflation rate will be 0.95%.

But, on the other hand, as seen above in the picture 4. that Virtual supply is increasing and will most probably be at 783973349.6 (783 million) in 2037. But after 2037, when inflation rate will saturate or will be fixed at 0.95%, the virtual supply will increase at a flat rate as due to the inflation rate.

So, Now coming towards the answer and conclusion of Part 1.

By looking at the increasing ratio of virtual supply and Block rewards above for next 10 years, we can say that we must build our SP as after 10 years from now on, due to the decrease in block rewards every year, the demand will increase and it will be really tough to get that much Steem tokens which we are getting these days (As the inflation rate will decrease >> Block rewards will decrease >> Supply after 2037 will just increase at a flat rate >> So, at that time 'It will be really tough work to get Steem in much quantity). That's why we can say that it is very much important to build our SP for next 10 or 15 years.

Part 2.

Who is your recovery account in Steem, how do you check it(Hint- Steemscan), include screenshot(s)? In the case of any unforeseen event like hacking what information do you provide to the recovery account(or the trusted account) to initiate the recovery process?

Recovery Account

My recovery account is @ ashleykalila , She created that account for me back in 2018

@ ashleykalila is trusted and in future if I need to recover my account for any reason then I will need to provide @ ashleykalila my previous keys/Password. Moreover, We have learnt from the lecture-7 of Professor Sapwood that, we should initiate the recovery process within 30 days of account being stolen or hacked because it will not be possible for us to recover our account after 30 days.

Part 3.

How do you send an encrypted message(private message) to another peer in Steem Blockchain(include screenshot/process)? Which key is required to send a private message and which key is required to decrypt it? (Example/Screenshot)? Either send an encrypted memo-tag to exchange and send a private message to another user?

How to send an encrypted message(private message) to another peer in Steem Blockchain?

Step by Step process to send encrypted message...

1) Login to Steemitwallet by using Master Password

2) Click any coin (Steem or Steem Dollars)

3) Click transfer

4) Set amount, which will most probably 0.001 Steem or 0.001 SBD if our aim is just to send a message.

5) Enter "#" just before the message in memo field.

6) Click next

7) Click Ok to confirm the trade

Here are step by step screenshots of sending encrypted message on Steemit

Which key is required to send a private message and which key is required to decrypt it?

It is required to get login to your account with Master Password for sending a private message on Steemit.

Whereas, to decrypt the message, we need to login with Memo key. As seen in the below screenshot as well.

So, the transfer amount is visible to all, but not the Memo or the private message which we sent. Only Sender & Receiver can see that message by logging in to Steemitwallet by using memo key.

Thank you all for reading my post. Now, I would like to mention Professor @sapwood to check my entry for homework week 7 Task.