The Genesis Block-Steemit Crypto Academy Season 4 - Homework Post for Task 3
What is a Cryptocurrency?
Cryptocurrency also called crypto is a binary data created to operate as a means of exchange where ownership records of coins are stored in a ledger or computerized database with the use of cryptography to secure transactions and perform other works. It is a medium of paymemtt or form of money that can be exchanged or traded online for goods and services. A lot of companies have their own cryptocurrencies which are sometimes called tokens and can be traded for the company's products or services.
Cryptocurrencies work using the blockchain technology which is decentralized and provides optimum security. It is worthy to note that the said cryptocurrency does not exist in a physical form, is not tangible neither is it issued by a central authority. Each works through the distributed ledger technology (DLT). According to CoinMarketCap.com, there are over 10,000 cryptocurrencies that are exchanged and traded publicly since the release of Bitcoin in 2009 and money is continually made through Initial Coin Offerings (ICOs).
There are quite a handful of reasons why cryptocurrencies are appealing and some of them are:
It is presumed that cryptocurrencies especially big names like Bitcoin and Ethereum are the currency of the future and people are rushing to buy them thereby making it more valuable.
Another school of thought admires cryptocurrencies because of it's decentralization (it doesn't have a central authority) and the value cannot depreciate from inflation.
More so, it's decentralization makes it more secure and transparentt that traditional financial systems.
Lastly, cryptocurrencies are loved because the monetary value is increasing and it is profitable on the long run.
What is Cryptography and how does it make cryptocurrencies secure?
The blockchain is now one of the most innovative application models, capable of integrating consensus processes, data distribution, peer-to-peer transmission, and other computing technologies. It provides a secure environment for decentralized information sharing, which is a key feature of blockchain technology, and so draws attention to blockchain cryptography.
The security blockchain provides information to consumers, and transaction data adds to its appeal. Cryptography is a term that refers to the study of secrets. It assures that in a blockchain, there is either complete or partial anonymity.
How does it work?
Cryptography is primarily concerned with assuring the safety of users and their transaction data. It prevents double-spending and centralization on the blockchain. It also aids in the security of various network transactions and provides applications for moving digital tokens and assets.
Cryptography is the use of complex mathematical codes to securely store and transfer data values. As a result, it ensures that only the individuals for whom the transaction is intended can view, read, and process it, as well as verify its legitimacy.
To summarize, cryptography is a mechanism for securely communicating data. Cryptography is a technique for sending secure messages between two or more people. Before transmitting a communication, the sender encrypts it using a specified key and algorithm. The receiver, on the other hand, employs decryption to recover the original message.
Cryptography's Advantages
Cryptography prohibits cryptocurrency from being spent twice.
It is used to verify bitcoin transactions and ensures the security of both users and transaction data.
There is the anonymity of transactions, as well as blockchain participants.
Cryptography secures cryptocurrencies through the use of keys which can either be public or private keys. There is a connection between the sender's address and that of the recipient which makes it look like it was signed with an undecipherable signature and hence, increases the security of the cryptocurrencies. The encryptions used tightened the security and curbs theft of information and fraudulent activities.
Explore the Steem Genesis Block and Sign in as proof of completion.
The Steem Genesis Block can be found on https://steemworld.org
Click on Block Explorer
Click Ok for Block 1
You will see the details of the Genesis Block.
Below are highlights of the some basic details;
Timestamp: 2016-03-24, 17:05:00
Block Id: 0000000109833ce528d5bbfb3f6225b39ee10086
Previous Id: 0000000000000000000000000000000000000000
Signing Key: STM8GC13uCZbP44HzMLV6zPZGwVQ8Nt4Kji8PapsPiNq1BK153XTX
Witness: initminer25
Witness Signature: 204f8ad56a8f5cf722a02b035a61b500aa59b9519b2c33c77a80c0a714680a5a5a7a340d909d19996613c5e4ae92146b9add8a7a663eef37d837ef881477313043
Click on sign in to SteemWorld from the top right corner.
Input your steemit username and private posting key
Voila! You are signed in...
Conclusion
Cryptocurrencies are a good investment especially for future purposes and long term. It is devoid of inflation or any centralized authority and has good security and anonymity. Blockchain cryptography is critical to blockchain technology because it ensures security and anonymity. Transactions can be carried out in an anonymous and secure manner. A blockchain address is required for sending and receiving transactions, and I believe that blockchain cryptography enhances the blockchain experience, particularly in terms of anonymity.
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