Task
3a What is a Cryptocurrency?
b) What is Cryptography and how does it make cryptocurrencies secure?
c) Explore the Steem Genesis Block and Sign in as proof of completion.
My Entry
What is a Cryptocurrency?
Cryptocurrency is a digital currency also known as token or digital money which can be used in buying and selling in the market.
Cryptocurrency is based on decentralized network which does not require intermediaries or third party, it is very from governmental control,simply put it is a peer-to-peer network.
All transaction carried out with cryptocurrency are recorded in a ledger.
Cryptocurrency is being guided by a technology called cryptography.
Some examples of cryptocurrency are:
- Bitcoin cash.
- Litecoin.
- Ethereum.
- steem dollar.
There are more than 14,000 cryptocurrency, and many new cryptocurrency are coming out day by day.
The first cryptocurrency happens to be Bitcoin that was launched in the year 2009.
Benefit of cryptocurrency.
One benefit of cryptocurrency is that it makes transactions so easy between traders, there is no need for credit cards or signing checks before gaining access to your money.
Cryptocurrency transaction only requires the use of private and public keys.
What is Cryptography and how does it make cryptocurrencies secure?
Firstly Crypto means hidden or secret while graph means write.
With that knowledge I can define cryptography as a technology used to secure cryptocurrency transactions.
It also helps to keep informations of traders secured from hackers and send it directly to the recipient.
This technology is used to keep records of new cryptocurrency coins, and its also used to verify transactions of digital tokens.
Before we withdraw money from banks we might need to sign checkbooks or use an ATM cards and if at any case the signature did not aligned with the one in the system we will not have access to our money.
Cryptography rules out the above protocols with the use of encryption keys, this keys are the most important tools of cryptography.
How does it make cryptocurrencies secure?
Cryptography uses two methods on cryptocurrency to make is secure
1)Symmetric Encryption Cryptography.
This system used secret keys to conceal messages or informations from outsider and transfers such informations directly to the recipient.
2)Asymmetric Encryption Cryptography.
This system uses both public and private keys to encrypt and descrypt messages, the recipient receives the information and makes use of his private keys to access the information, private keys can only be accessed by the owner.
In conclusion I will say that without cryptography cryptocurrency will not be safe and will not succeed.
Explore the Steem Genesis Block and Sign in as proof of completion.
Step 1
Go to https://steemworld.org
step 2
Click block explorer
step 3
Click block 1
step 4 and 5
Go to the top write and click sign in, then add your username and your private posting key as the image depicts below.
Conclusion
It was a wonderful lecture, I ever wondered if my money will be safe if I invest on cryptocurrency, but with the knowledge I got from this lecture I am confidence that with cryptography technology my money is safe.
Thank you professor @awesononso