INTRODUCTION
Hi steemians,
In my blog today, I will be presenting my homework task given by professor
@awesononso on the topic Blockchain Reward. Read through and enjoy my blog.
Question 1: In your own words, explain mining and block reward.
MINING:-People see mining based on their various understanding. To a layman it is the digging of the soil surface to be able to get some form of gold or silver in the ground. Mining in the crypto world simple refers to the process of of getting new coins and verifying transactions in the blockchain technology. So when new coins are gotten by miners we say they have mined the coins. Furthermore, when miners verify transaction with the aim of adding it into the blockchain ledger, we say that mining has taken place. In summary, we say that mining is the process of getting new coins and also verifying the transaction in the blockchain to add it to the ledger.
BLOCK REWARD:-When miners mined a block successfully, what the gain at the end is what we call the blockchain reward. This reward comes as the process of mining. We said earlier that in every mining, new coins are given as a reward. So therefore block reward are those reward given to the first person who has been able to meet the requirement during the mining process. Mining in blockchain involves searching for hash, there for during mining, we have several miners involved so any one who happens to be the very first to get the hash vets the block reward. Getting block reward is more or less a competition as many persons are involved in it and only the person who successful get the hash is the only person rewarded.
Question 2: What do you understand by the Bitcoin Halving?
Halving is the process of reducing the reward of a block by half in every four years interval. In 2009 when bitcoin was first introduced, we experienced the very first halving where the initial block reward of 50 BTC was slashed by half to get 25BTC. This process continues after every four years. The last one that recently took place brought the reward to 6.25BTC. So when ever the word halving is mentioned in the block chain technology what should come to our mind is the fact that the reward for the block is about to be slashed down by half.
One will be tempted to ask why reduce the block reward when people are working for it? The answer is very simple. For the coins to continue maintaining it's value in the market place it has to be minimized in circulation. When we get little bitcoin in circulation the value will be appreciated but if we have much bitcoin in circulation, the value if the bitcoin will not be appreciated. So the essence of this block chain halving is to make the value of the coins more relevant. Halving is done after 210,000 blocks have been successfully mined.
Question 3: What are the effects of the Halving on miners?
When ever there is halving, the reward for miners rudeces by half. This means that anytime halving takes place it makes the reward more difficult to get because the reward reduces. The equipment use for mining also becomes very difficult to afford as there will be lots of competition in the mining system. With this been said, the mining cost for the last four years will not be the same as that of the present year. Also the reward reduces at all time when this halving takes place.
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 Bitcoin block height as at when I am performing this assignment is seen in the image above.
Note that 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 = 696,878 blocks
∴ Number of Blocks until the next halving = 840,000 - 696,878
=143,122 Blocks.
Question 5: Do you think Steem’s inflation rate reduction can affect other coins? Why?
If a large coin that control the market undergoes inflation, then other coins can be affected as well. But in the case of steem, inflation rate reduction, it can not affect other coins because it is not a major coin. Only steem users will be affected if there is anything like steem inflation rate reduction. In summary, only a large or major coin in the market that undergoes inflation reduction can affect 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 steem block height as at when I am performing this assignment is seen in the image above.
Note that the Steem inflation rate reduces by 0.01% every 250,000 blocks.
Current block height = 56,562,064 blocks
The number of reduction so far will be
56,562,064/250,000 = 226.248256
This means that there is approximately 226 reductions so far to the nearest whole number.
Block height for next reduction = 226 x 250,000
= 56,500,000
∴ Number of blocks until next reduction = 56,500,000 - 56,562,064
=-62,064 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)
Bitcoin price as at when I was performing this assignment is $49,155.66. The image above shows it.
a)
For instance, I bought $2500 worth of Bitcoin, I would have a total of 0.050858843BTC following the current price.
Value of $2500 in BTC
$49,155.66 = 1 BTC
$2500 = (2500/49,155.66) x 1 BTC
= 0.050858843 x 1BTC
= 0.050858843 BTC
= 0.0509 BTC
Value of 1 Satoshi per the current Bitcoin price
1 Satoshi = 0.00000001
1 Bitcoin = $49,155.66
1 Satoshi = (0.00000001) × 49,155.66
1 Satoshi = $0.0004915566
1 Satoshi = $0.000492 (3 s.f)
Value of $2500 worth in Satoshi
If $0.0004915566 = 1 Satoshi
$2500 = (2500/0.0004915566) x 1 Satoshi
= 5,085,884.311 Satoshis
= 5,090,000 Satoshis (3 s.f.)
This implies that if I purchase $2500 BTC, I would have 5,090,000 Satoshis in 3 significant places.
b)
The value of 1 Satoshi as per the current price today, is $0.000492 (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 $452.66, as seen in the screenshot above.
a)
Assuming I bought $30 worth of BNB, I would have a total of 0.066274908 BNB
Value of $30 in BNB
$452.66 = 1 BNB
$30 = 0.066274908 x 1 BNB
= 0.066274908 BNB
= 0.0663 BNB (3 s.f.)
Value of 1 Jager per the current BNB price
0.00000001 BNB = 1 Jager
1 BNB = $452.66
1 Jager = (0.00000001) x $452.66
1 Jager = 0.0000045266
= $0.00000453 (3 s.f)
Value of $30 worth in Jager
If $0.0000045266 = 1 Jager
$30 = (30/0.0000045266) x 1 Jager
= 6,627,490.832
= 6,630,000 (3 s.f.)
If I bought $30 worth of BNB, I would have 6,630,000 Jagers in 3 significant places
b)
The Value of Jager for the day is seen in (a), as $0.00000453 ( 3 s.f)
CONCLUSION
Thank you so much professor
@awesononso for such an educative lecture on block chain reward. I have really learnt a lot of new things today on this platform. Recall that we say that the bitcoin halving takes place after every four years. The essence of halving as we have discussed above is to help and reduce the inflation of the coin. We also mentioned that the blockchain reward is given to the first person who is able who is able to perform the required task.