[Bitcoin, Cryptocurrencies, Public chains] - Steemit Crypto Academy Season 5 - Homework Post for Task 5 by @sargoon
[Bitcoin, Cryptocurrencies, Public chains] - Steemit Crypto Academy Season 5- Homework Post for Task 5 by @sargoon
cover photo made by @sargoon
Hello, Steemit Crypto Academy community! Here I am with my second homework on SteemitCryptoAcademy. In this homework, I chose the first homework question of the 5th introductory course prepared by Professor @stream4u. I would like to start my homework by explaining what is cryptocurrency.
(1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
What Is Cryptocurrency?
Cryptocurrency is a digital currency that is not dependent on any government or central bank. The first cryptocurrency created was Bitcoin, which almost the whole world has heard of. All cryptocurrencies created after the first cryptocurrency Bitcoin are called altcoins. In 2009, the first cryptocurrency transaction was carried out with Bitcoin by Satoshi Nakomoto. According to most authorities, there really is no such person as Satoshi Nakomoto because there has been no verified information about Satoshi Nakomoto since the first whitepaper of Bitcoin was published. The information you can find on the internet is that Satoshi Nakomoto is a Japanese man who was born on April 5, 1975, but this information is only a claim.
Cryptocurrencies can be produced by mining. Anyone who has the necessary equipment and system can produce cryptocurrencies by mining. In the first years of Bitcoin mining, the reward for 1 block was 50 BTC. Bitcoin mining block rewards are halved every 210,000 blocks.
It takes 4 years to produce 210 thousand blocks. The mining reward pool has been halved because Bitcoin is approaching its maximum supply. The bitcoin miners block reward pool in 2021 is 6.25 BTCs per block. On 2024, the prize pool will decrease from 6.25 BTC to 3.25 for each block.
In fact, cryptocurrencies are worthless, people give value to cryptocurrencies. If the project of a cryptocurrency is promising, people invest in that cryptocurrency with the supply and demand system. Cryptocurrencies are decentralized. This may sound a little insecure, but cryptocurrencies are the most reliable way to trade. The reason why cryptocurrency transactions are reliable is the decentralized Blockchain technology. Using decentralized Blockchain technology, people can transfer their cryptocurrencies along with their public wallet addresses. Anyone can make cryptocurrency transactions peer-to-peer (P2P). These transactions are protected by cryptographic hash systems such as SHA-256 (Secure Hash Algorithm). Since the security measures are at the highest level, it is impossible for hackers to reach your accounts or steal your cryptocurrency during the transaction.
On the other hand, when you think about it, physical currencies can be used like digital currencies through credit cards and virtual bank accounts. Every transaction you make in physical money is recorded in the database of centralized banks. Everything may seem the same, but there is a very important difference. The transactions you make with cryptocurrencies are not recorded in the databases of centralized systems such as banks, these transactions are processed as nodes in the blockchain, which is protected by a high-security cryptography system. Banks record all your money transactions in the system with your personal data. Since cryptocurrencies use a decentralized blockchain system, you can perform your transactions anonymously using your public cryptographic wallet addresses without intermediaries.
How You Would Like To See Cryptocurrency In The Future?
I would like to see companies like Visa and Mastercard to produce credit cards for cryptocurrencies. In this way, people can buy all the shopping products they want to buy directly with cryptocurrencies without sending the cryptocurrencies they keep in their wallets to their centralized bank accounts.
I would like to see cryptocurrencies to be legal in all countries and that governments support the use of cryptocurrencies. Cryptocurrencies are a symbol of equality because even if people are in different countries, there will be no exchange rate difference as the government will use cryptocurrencies instead of physical currency, and people will pay an equal amount of cryptocurrencies for their purchases or transactions.
I would like to see governments to produce cryptocurrencies instead of physical currencies. In this way, the cost of producing coins and banknotes will be eliminated. In addition, since the printing of banknotes will be stopped, governments will follow a more environmentally friendly policy.
I believe cryptocurrencies will end unemployment. In the future, I would like to see everyone to be informed about cryptocurrencies for free with the support of governments. When people learn about cryptocurrencies, blockchain technology and the functioning of the decentralized system, they will be more curious about cryptocurrencies. Conscious people will become qualified personnel for blockchain systems, decentralized projects and businesses related to cryptocurrencies. People can get a monthly or annual salary by being rewarded with cryptocurrencies by presenting proof of their work in line with their work as remote staff for these workspaces.
Conclusion
In the future, when cryptocurrencies are officially legalized in all countries of the world, the era of physical money will end and everyone will be able to make crypto money transactions under equal conditions by using decentralized blockchain technologies. People will have easier access to cryptocurrencies in the future and they will be able to use cryptocurrencies in all areas of their lives. Best regards to Professor @stream4u who prepared this amazing homework. Thank you so much for reading my second Steemit Crypto Academy post! :)