Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards|| by @allan.fakeer

Again, this is a great lecture on Cryptocurrency. In this lecture professor touch the basic and very important topic that what is meant by mining and how miners get reward on the behalf of mining. Professor also put light on how halving effect the price of cryptocurrency. At the end professor gives few questions. I will try to answer all the question. Let’s start.

2. In your own words, explain mining and block reward.

Mining is process in which transaction are added to the ledger of the bitcoin blockchain after validation by the miners. Miner gets reward when they validate the transactions up to the required block size. Mining is a concept that is taken from the mining of gold and other precious metals. These metals are taken after mining process. But in crypto world the concept of mining is quite different from the mining of metals.
Bitcoin Blockchain is unchangeable digital ledger and database. In this database all the transactions about bitcoin are stored. These transactions are added to the ledger the validation. Validation is done by the miners.
When transactions are validated then the process of making the block. These blocks are made by the miner by validating the transactions up to the required block making criteria. When the block is made then the process of adding the block into block is start. Every block that is made by miner had a unique hash. Miners need this unique to hash values for the purpose of adding the block in to the blockchain. This unique hash value is a proof that represents actual miner who mined this block.
There is competition of finding the right hash of the block. Miners who have power full computers have more chance to get right hash. When miner add the new block to the blockchain then they get reward in the form of new bitcoin. This new mined bitcoin is reward of miner.

2. What do you understand by the Bitcoin Halving?

When the blocks of bitcoin blockchain are touch the limit to 210000, then the reward of bitcoin blocks mining is reduced to half. In this way Bitcoin reduce the inflation rate in very effective way. The reward of bitcoin block mining is reduced to half when 210000 block are mined. At the time of making this post, bitcoin is halved three times.
First time bitcoin halved in year 2012. It is halved 50BTC to 25BTC. Second time bitcoin is halved in 2016. It is halved 25BTC to 12.5BTC. And last time BTC is halved in 2020. It is halved from 12.5BTC to 6.25BTC. In this way we can see that BTC is halved three times so far.
In the beginning the addition of 50 coins in circulation every time the block is formed. But after the third halving the coin is reduced to 6.25. When the number of coins are reduced to 6.25 then it reduce the inflation rate, because the speed of addition of new coin in circulation is much slower than before.

3. What are the effects of the Halving on miners?

When halving is occurs then reward of blockchain is divided. And reward becomes half. In this way halving has great effect on miners. When reward become half it also halved the miner reward. In this way miner are in loss.
Because miner use having mining machine that utilized huge power and resources during mining. If halving occurs it reduces the reward by half. In this way reward of miner is also becomes half. Having has huge effect on miners.

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

In this Screenshot we can see the height of block that is recently added.

As we can learn above the bitcoin halves in every 210,000 blocks. There are three halving are occurred so far. Next halving is the fourth halving of Bitcoin.
Hight of block for fourth halving = 210,000 x 4
Hight of block for fourth halving = 840,000
Current block height = 696,211 blocks

Formula:

∴ Number of Blocks until the next halving = Hight of block for fourth halving – Hight of current block

Number of Blocks until next halving = 840,000 – 696,211

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

When we talk about the effect on other coins due the inflation rate reduction, we analyze few things. First, we note the rank of cryptocurrency. And second, we note market cap. We note that how much a particular coin is dominating on market. If it is highly dominate then the reduction in inflation rate can affect the other cryptocurrencies. Otherwise, it does not effect other coins.
If we talk about Steem is it place on 185 rank according to coinmarketcap. And market cap while doing homework is @216,578,151. This is not enough as compared to Bitcoin and Ethereum. This way the reduction is inflation rate in Steem does not affect other coins.

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)

In this screenshot you can see the block of steem at the time of writing this post.

The Inflation rate of Steem is reduces by 0.01% every 250,000 blocks.
Current block height = 56,440,293 blocks
Number of reductions so far: Hight of Current Block / Inflation rate every block
Number of reductions so far = 56,440,293/250,000
Number of reductions so far = 225.76

Formula:

∴ Number of blocks until next reduction =( Block height for next reduction – Current Block height)
Number of Block Until next reductions are = 56,500,000 - 56,440,293

What is the current value of BTC on the day you are doing your Homework task?

The Price of Bitcoin at the time writing this task is $46,234.09

In this screenshot you can see that if I purchase BTC for $2500 then I have BTC Values in return is 0.054072 BTC.
Purchase 0.054072 BTC from $2500

a. How many Satoshi would you have?

As we know that 1 Satoshi= 0.00000001 BTC
If we can write the values of Satoshi in Scientific notation
1 Satoshi= 1x10^-8 BTC
Values of 0.541 BTC in Satoshi = BTC I have / Value of Satoshi is BTC
After Cross Multiplication
Satoshi I have = 0.541 / 1x10^-8
Satoshi I have = 54,100000.01015

b. What is the value of a Satoshi for that day?

Price of 1 Satoshi at the time doing homework is $0.0004621

1 Satoshi= 1x10^-8 BTC
1 BTC= $46,234.09
So, 1 Satoshi= 1x10^-8 x 46,234.09
1 Satoshi = $0.0004623409
In the form of (3 s.f)

2. What is the current value of BNB on the day you are performing this task? If you made a purchase of $30 then,

Current Value of BNB at doing homework is shown is figure that $420.06.

When I purchase BNB for $30 then I have 0.071418 BNB.
I have = 0.071418 BNB

a. How many Jaguars would you have?

Let suppose J be the number of Jaguars.
1 Jager = 1×10^-8BNB
J Jager = 0.0714 BNB,
Then;
j= 0.0714/1×10^-8
After cross multiplication
J=0.0714 x 10⁺⁸
J= 71,40,0000.02125
I have 71,40,0000.02125Jagers
In (3 s.f) form

b. What is the value of a Jager for that day?

Here is the value of jaguars at doing homework.

1 Jager=0.00000001BNB
1BNB= $416.91
So therefore, 1jager = 0.00000001×420.06
1 jaguar=$0.0000042006