Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards - Homework Post for professor @awesononso by @badmus-official

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Hello everyone, I welcome you all to this week's assignment post where I will be making explanations on mining, block rewards, and halving. the task which was implemented by prof @awesononso.

below are the questions I will be answering as follows;

In your own words, explain mining and block reward.

What do you understand by the Bitcoin Halving?

What are the effects of Halving on miners?

What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving? (Screenshots and Full working)

Do you think Steem’s inflation rate reduction can affect other coins? Why?

What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction? (Screenshots and Full working).

Without further ado I will be diving into the question as follows in my write-up:

Question 1

In your own words, explain mining and block reward.

• MINING

Mining can be classified in many terms but still mean the same thing, just like in meaning: mining is referred to as extracting valuable resources from a material that cannot be done or put into effect by human beings but rather occurs naturally, especially as a copy of something natural.

Mining in cryptocurrency in a technical sense is defined as a way of making use of a computer in a digital process to solve hinder information and adding exchange to a blockchain network.

The process of verifying a block then adding the verified block to the blockchain is carried out by those referred to as Miners ,who then solved the unconfirmed block by verifying its hashes in the blockchain. unlike your everyday programmers Minners are been known to be well skilled in solving complex functions and record data to a blockchain network.

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• BLOCK REWARD

The whole point of crypto mining is to ascertain a goal in which they get rewarded for being the first to tackle the complex function and that's where Block Reward comes in,Block Reward is known as the reward awarded to miners for being the first to tackle the complex problem and creating a new block.

Block rewards also serve as a motivation for miners in other to continue to take care of the complex mathematical functions of detecting a new block on the particular blockchain (bitcoin,ethereum e.t.c.)in which they are been repaid for their time and expenses.

it has become a standard in Bitcoin mining that for every 210,000(occurs only once in every four years) blocks detected, the block reward will be splitted, this process is known as Bitcoin Halving.

Question 2

What do you understand by the Bitcoin Halving?

• Bitcoin Halving

Just as explained earlier Bitcoin Halving is the standard process in the bitcoin rule whereby block rewards are being halved i.e (split into two) for every 210,000 blocks detected in the blockchain network.. Bitcoin Halving only occurs once every four years.

Bitcoin Halving started by halving it's block rewards of 50BTC into 25BTC in 2012, which later on had its next halving occurred in 2016 by halving 25BTC to 12.5BTC ,which then it's third later occur recently in 2020 in the process of splitting 12.5BTC into 6.25BTC and with of certainty bitcoin is looking forward to its next halving by 2024...

Question 3

What are the effects of Halving on miners?

I will be making use of Bitcoin for reference in this answer

The effect halving had on Bitcoin miners is what made scarcity of bitcoin in the blockchain network and when there is scarcity in resources the demand rate is much higher than the coin has to supply which was what causes increament in the value of bitcoin.

You know as said earlier bitcoin halving has been occurring for 4 years consecutively and this has reduced the block reward to be so smaller compared to the block reward earned in 2012 which was 25BTC on each block, this is no longer occurring as this reward has been reduced to 6.5BTC now this makes the reward so little and still have the same the procedure for halving which still only to occur in 4 years.

This causes the particular coin to be so scarce and the reward is not at large comparing to the reward miners are been awarded before.

In my opinion, bitcoin mining effect on miners is also like some sort of more rewards, because comparing the value of 25BTC in 2012 was only worth $6 ..but as of now that the mining reduced to 6.25BTC which BTC is at $45,000.. so the block reward have reduced but still the value and the reward is much more interesting..

Question 4

What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving? (Screenshots and Full working)

Data gotten from blockchain as at today 20th of august 2021 shows below that bitcoin is currently on 696,683 block height, where on I will be showing the workings of the remain blocks left till the next halving.

image source

just as said earlier on that Bitcoin halves 210,000 blocks only once in every four years. so this means the next halving which will definitely be the 4th halving which will occur next in 2024.

All these details are to be considered when making calculations for the remaining block left ..so below is my calculation of the bitcoin block left before the next halving.

Total block to be hashed before next halve 210,000 x 4 = 840,000
current block height = 696,683
Number of blocks left to be hashed equals to =(Total block to be hashed) - (Current block Height)
This implies that = 840,000 - 696,683 now equals to 143,317

This means that there are only 143,317 blocks left before the next halving comes up in 2024

Question 5

Do you think Steem’s inflation rate reduction can affect other coins? Why?

NO, Steem inflation reduction rate has no effect or aggressiveness over other coins because unlike bitcoin or top coins,steem isn't as big in the market in a manner that steem only has 10% of its total to holders and 75% of total steem are been distributed between curators and authors, so in this case, steem necessarily cannot have a significant change in other coins.

Question 6

What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction? (Screenshots and Full working).

The current block height of steem on the steem blockchain is been displayed below.

Image source

The data from the image above was gotten from the sourcesteemscan which was showing the currently mined steem, the miner, and the timestamped.

From the available data as of 2021-08-2021.The total block height of steem was 56,531,279 blocks

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How many more blocks before the next 0.01% reduction?

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In other to calculate the next steem reduction I will be making use of the formula

Steem inflation rate reduces by 0.01% on every 250,000 blocks.

Steem current block height is at 56,531,279 blocks

The reduction number at the moment is ( 56,531,279) / (250,000 ) which equals 226.12 rounded up to 226.

This implies that there has been a 226 reduction so far

Now to calculate block height for the next reduction; 227 x 250,00= 56,750,000 - 56,531,279 which now equals to 218,721.

This implies that there are 218,721 blocks left till the next reduction.

Continuation of last week’s work

Question 1

What is the current value of BTC on the day you are performing this task? If you made a purchase of $2,500 then,
a.) how many satoshis would you have?
b.) what is the value of a satoshi for that day?
(Show full working and correct to 3 s.f)
(1 satoshi = 0.00000001 BTC)

image screenshot from coinmarketcap

As shown in the image above bitcoin is currently worth $48,460.09 per BTC
This qualifies that $2,500 worth of BTC is (2,500/48,460.09) worth 0.051588843520513 BTC
$2,500 equals to 0.0516 BTC (rounded to 3 s.f.)

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HOW MANY SATOSHIS WOULD YOU HAVE?

1 satoshi = 0.00000001 BTC
with $2,500 worth of BTC which is 0.0516 BTC = (0.0516/ 0.00000001 ) = 5,160,000 satoshis
This implies that with $2,500 worth of BTC (0.0516) you are going to get 5,160,000 satoshis

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WHAT IS THE VALUE OF A SATOSHI FOR THAT DAY?(SHOW FULL WORKING CORRECT TO 3s.f)

Since satoshi value corresponding to btc is 0.00000001 BTC

Therefore value of satoshi corresponding to value BTC = (0.00000001) * ($48,460.09) which then equals to $0.0004846009 satoshi

i.e As of today value of a satoshi is $0.000485 (rounded to 3 s.f)

Question 2

What is the current value of BNB on the day you are performing this task? If you made a purchase of $30 then,
a.) how many Jagers would you have?
b.) what is the value of a Jager for that day?
(Show full working and correct to 3 s.f)
(1 jager = 0.00000001 BNB)

image screenshot from coinmarketcap

As depicted in the image above which shows value of BNB is currently at $445.61.

And this implies that with $30 you are to get (30/445.61) = 0.067323444267408BNB

$30 worth of BNB equals 0.0673BNB ( rounded to 3 s.f)

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HOW MANY JAGERS WOULD YOU HAVE

1 jager = 0.00000001 BNB
with $30 worth of BNB which is 0.0673 BNB = (0.0673/ 0.00000001 ) = 6,730,000 jagers
This implies that with $30 worth of BNB (0.0673BNB) you are going to get 6,730,000 jagers.

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WHAT IS THE VALUE OF A JAGER FOR THAT DAY?(SHOW FULL WORKING CORRECT TO 3s.f)

Since jager value corresponding to bnb is 0.00000001 BNB

Therefore value of jager corresponding to value BTC = (0.00000001) * ($445.61) which then equals to 0.0000044561 jager

i.e As of today value of a jager is $0.00000446 (rounded to 3 s.f)

Conclusion

This article has been base on bitcoin and its no exception that going through this topic shed more light about how bitcoin comes into basis and how halving affect its inflation rate and scarcity.This article also shed more light on the whole basic brain behind steem and its blockchain height..i believe i have learnt more and gain more knowledge when going through the homework.special credits to the homework professor @awesononso for keeping this short and clear.i hope to write to you more in the coming season.
Thank you all For reading up!!