♨️ Homework - Task 03 ♨️

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.

a) What is a Cryptocurrency?

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Cryptocurrency is a type of digital currency distributed by a network based on blockchain technology. The special feature here is that the cryptocurrency is not issued by a central authority and the security of the cryptocurrency is ensured by cryptography. Cryptocurrency exists online and customers can transact through a medium of exchange.

Bitcoin was the first cryptocurrency created supported on blockchain. It was launched in 2009 by a person or group called Satoshi Nakamoto. Bitcoin is currently the most valuable and most popular cryptocurrency in terms of value. The value of bitcoin will increase further in the near future. In addition to Bitcoin, there are many cryptocurrencies available today. Unlike before, many people now have a better understanding of cryptocurrency.

Basic features of cryptocurrency

• Unlike the money we use in everyday life, cryptocurrency is a form of digital assets that cannot be touched by physically.

• Based on a decentralized network distributed across a large number of computers.

• Using encryption methods such as algorithms and cryptographic techniques to secure the network.

• Providing the opportunity to transfer funds directly between the buyer and the seller without the need for an intermediary.

b) What is Cryptography and how does it make cryptocurrencies secure?

Cryptography is a cryptocurrency encryption method used to verify the security of cryptocurrency. Only the sender and recipient of the message can understand this secret message. Such cryptography symbols are incomprehensible to any third party. Encryption is needed as a security measure to prevent people from stealing sensitive data. It is important to keep confidential information only to those who need it. It is very safe to use this cryptography when dealing with cryptocurrency.

It can be very dangerous if some information gets into the wrong hands. Encryption is the process by which only relevant individuals have access to sensitive information. When using cryptocurrency, there are various ways in which cryptography can be applied to it. It is best to use cryptography that are appropriate for the occasion. Data encryption can be done to ensure the security of cryptocurrency using mathematical technology.

In addition, the public key and the private key play an important role in securing transactions in cryptocurrency. Both keys are encrypted with random numbers, English capital letters and English simple letters. The total number of numbers and letters in such a code is more than twenty. For example, the private keys of users who use steemit may be introduced. These symbols have no definite meaning. Therefore it is not possible to memorize keys. The best thing is to write this down on a piece of paper and keep it safe.

Example for private keys

A public key is used to send money. That is, to provide a public address. Only the holder of the private key can access all the funds coming to the public key.
That is only the person who has the private key can unlock the public key. An example of a public key is the tron public address in our tronlink wallet.

Example for public key

c) Explore the Steem Genesis Block and Sign in as proof of completion.

Step 01 :-

First go to steemworld.org and click on the "Block Explorer".

Step 02 :-

Then click OK for block 1

Step 03 :-

Once Block 1 is OK you will see the information as shown in the screenshot below.

Basic Details

• Timestamp :- 2016-03-24, 21:35:00
• Block Id :- 0000000109833ce528d5bbfb3f6225b39ee 10086
• Previous Id :- 0000000000000000000000000000000000000000
• Witness :- initminer

Step 04 :-

Then click on "sign in" in the upper right corner and enter your steemit username and private posting key. Information about your account will then appear.

Conclusion

Cryptocurrency is a digital asset that cannot be physically touched. Cryptography is used to verify the security of cryptocurrencies. It is now clear to me what the connection is between cryptocurrency and cryptography.

Professor @awesononso's article and other sources was very helpful to me in completing this achievement. I wrote this article after studying it well.