INTRODUCTION
Fellow steemians,
You are welcome to my blog. Today I have attended lecture delivered by this noble professor in the person of
@awesononso and he taught on Blockchain Reward. I am here to present my homework task below.
Question 1: In your own words, explain mining and block reward.
MINING:-When ever the word Mining is mentioned or heard by people, people tend to have different view which runs through their mind. To the layman it may implies must digging up the ground to search for natural resources such as gold, limestone and what have you. To the learnt and those who are crypto enthusiast mining means a different thin entirely. So we see mining as the process of getting new coins and also to add to that it is the process in which miners verify transactions in the blockchain. All verified transaction are usually stored in the blockchain ledger.
BLOCK REWARD:-Block Reward is the reward given to miners for a successful mining of a block. When this mining takes place as we earlier said we get new coins from it, now this new coin gotten is what we use as the block reward to reward the miners. Due to the presence of more than one miner in the blockchain, the reward is given to the first person who is able to find the hash. This implies that there is a lot of competition involve in getting the block reward.
Question 2: What do you understand by the Bitcoin Halving?
Halving as the name suggest ordinarily, it simply means dividing something into two equal part. So with that been said, Bitcoin came in the year 2009 and the first halving of bitcoin took place at that moment. At 2009 the block reward for Bitcoin was 50BTC and the first halving which took places slashed the bitcoin reward to 25BTC. It continued that way after every four 4 years, half of the initial reward will be slashed. Presently we have recently experience another halve where the block reward has been slashed down to 6.25BTC.
Now, the reason why bitcoin has the value it is having up till this moment is because of the presence of halving. This process has help in controlling inflation in Bitcoin. So this process is done to reduce the amount of bitcoin in circulation so that the coin can maintain the value it is having. Before this halving is carried out, the miners must have successfully mined up to 210,000 blocks.
Question 3: What are the effects of the Halving on miners?
The effects of halving on miners is that it helps to reduce inflation rate. You know anytime halving occurs the block reward is reduced by half. The cost of mining also increase as mining becomes more difficult. The equipment use to mine previous years and the cost can not be same with the equipment we use now as well as the cost. So in essence this will make miners incur more expenses as they want to be the onee rewarded. Example if the equipment use to halve bitcoin in 2009 is used now it will not be efficient enough.
Question 4: What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
The screenshot above shows the block height of Bitcoin as at the time when I am performing this task.
Bitcoin halves every 210,000 blocks. The next halving would be the 4th. Putting these into consideration we have;
Block height for the next halving = 210,000 x 4
= 840,000
Current block height = 696,745 blocks
∴ Number of Blocks until the next halving = 840,000 - 696,745
=143,255 Blocks.
Question 5: Do you think Steem’s inflation rate reduction can affect other coins? Why?
Steem inflation rate reduction can not affect other coins. The reason is because as we know steem is not a major coin. Now when this inflation rate reduction happens on a major coin like bitcoin then it will affect other coins. So if there is steem inflation rate reduction it will only affect the steem users and not users of 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 screenshot above shows the block height of Steem as at the time when I am performing this task.
The Steem inflation rate reduces by 0.01% every 250,000 blocks.
Current block height = 56,539,296 blocks
To find number of reductions so far:
56,539,296/250,000 = 226.157
This implies that there have been 226 reductions so far.
Block height for next reduction = 226 x 250,000
= 56,500,000
∴ Number of blocks until next reduction = 56,500,000 - 56,539,296
=-39296 Blocks.
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)
The current price of Bitcoin as at the time I was making this post was $48,336.32 as shown above.
a)
Assuming I bought $2500 worth of Bitcoin, I would have a total of 0.051720941BTC as per the current price.
Value of $2500 in BTC
$48,336.32 = 1 BTC
$2500 = (2500/48336.32) x 1 BTC
= 0.051720941 x 1BTC
= 0.051720941 BTC
= 0.0517 BTC
Value of 1 Satoshi per the current Bitcoin price
1 Satoshi = 0.00000001
1 Bitcoin = $48,336.32
1 Satoshi = (0.00000001) × 48,336.32
1 Satoshi = $0.0004833632
1 Satoshi = $0.000483 (3 s.f)
Value of $2500 worth in Satoshi
If $0.0004833632 = 1 Satoshi
$2500 = (2500/0.0004833632) x 1 Satoshi
= 5,172,094.193 Satoshis
= 5,170,000 Satoshis (3 s.f.)
This implies that if I purchase $2500 BTC, I would have 5,170,000 Satoshis in 3 significant places.
b)
The value of 1 Satoshi as per the current price today, is $0.000483 (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)
The value of BNB at the time I made this post was $443.46, as seen in the screenshot above.
a)
Assuming I bought $30 worth of BNB, I would have a total of 0.067649844 BNB
Value of $30 in BNB
$443.46 = 1 BNB
$30 = 0.067649844 x 1 BNB
= 0.067649844 BNB
= 0.0676 BNB (3 s.f.)
Value of 1 Jager per the current BNB price
0.00000001 BNB = 1 Jager
1 BNB = $443.46
1 Jager = (0.00000001) x $443.46
1 Jager = 0.0000044346
= 0.00000443 (3 s.f)
Value of $30 worth in Jager
If $0.0000044346 = 1 Jager
$30 = (30/0.0000044346) x 1 Jager
= 6,764,984.441
= 6,760,000 (3 s.f.)
If I bought $30 worth of BNB, I would have 6,760,000 Jagers in 3 significant places
b)
The Value of Jager for the day is seen in (a), as $0.00000443 ( 3 s.f)
CONCLUSION
Blockchain reward is really an interesting topic that crypto enthusiast should learn about. This lecture has taught me how miners are rewarded in the blockchain. So in this lecture, I have learnt about halving, and it's effect in the control of inflation in blockchain. Thank you professor
@awesononso for such an insightful lecture. It's a pleasure learning from you. I look forward to participate on other assignment of yours.
