Steemit Crypto Academy Season 4 Beginner Course - Task 3: The Genesis Block by @dushantha
Entire Question
What is a cryptocurrency?
What is crypto and how does it make cryptocurrencies safe?
Explore the Steem Genesis block and log in as proof of completion.
Introduction
Today cryptocurrencies have taken on an important role in our lives and despite having been in the market for a long time, their use is now increasing because they are presented as an attractive alternative to the current economic system thanks to the speed and security of your transactions, for this reason it is necessary to know a little more about them.
What is a cryptocurrency?
Cryptocurrencies are digital or virtual currencies based on cryptography with a unique code within the chain of blocks (blockchain) that prevents their copying or reuse, they operate autonomously through the blockchain and are protected by algorithms integrated into cryptography , that is to say that each cryptocurrency has its own algorithm.
Cryptocurrencies have existed for a long time, however their rise begins in 2009, when Satoshi Nakamoto created Bitcoin, over the years other cryptocurrencies such as Ethereum, Litecoin, Dogecoin, Cash, Ripple, among others, gradually appeared.
Advantages and Disadvantages of cryptocurrencies
Advantages
- They are Global
- They are safe, thanks to cryptography it is impossible to falsify, copy or reuse
- Reduce transaction times from days to minutes by streamlining payment methods
- The use of cryptocurrencies is transparent and difficult to alter, thanks to the fact that the transactions carried out on the blockchain are public.
Disadvantages
- One of the main disadvantages of the use of cryptocurrencies is the loss of the private key of your wallet, since it has no way of being recovered, this would imply losing the money you have in it, it is advisable to have backup copies and protect very well the private key of the wallet
- It is a volatile market that is subject to large fluctuations, which leads to risk as there are chances of losing money.
What is cryptography and how does it make cryptocurrencies safe?
Originally from Greece, this word is composed of "cryptos" which means hidden and "grafé" which means writing, which is why it translates into "Hidden Writing", based on this we can say that cryptography is the set of algorithms whose objective is to encrypt a message to protect it, it makes use of cryptographic systems that provide security thanks to their properties, among these we have:
Authentication: This mechanism allows verifying the identity of the communicator, in this way the person who receives the message can know the origin of the sender.
Confidentiality´: By using codes and encryption techniques, it guarantees that the message is accessible only to the authorized person.
Access control: Without authorization, resources cannot be accessed.
Integrity: Avoid modifying the message in this way guarantees that the message is modified by a third person.
Linking: It allows linking a document or transaction to a person, this is considered the most extreme form of authentication.
How does the cryptography of cryptocurrencies work?
Cryptography is essential in the world of cryptocurrencies as they guarantee security, integrity and balance, the type of cryptography used in cryptocurrencies is based on an asymmetric cryptography that implements the use of two keys for each participant, a public key (address of the wallet) which is necessary for the exchange of information and the private key (to authenticate the transaction) that must be hidden and never shared as it guarantees the privacy of the message; When the currency is sent to an address, this transfer is encrypted with the public key and can only be decrypted and decrypted with the private key.
Explore the Steem Genesis block and log in as proof of completion
- To explore the Steem Genesis block, we access the SteemWorld page: and click on Block Explorer
- Then we click OK for Block 1.
- By clicking OK we can access the details of the Genesis Block
Basic details
- Timestamp: 2016-03-24, 11:35:00
- ID de bloque: 0000000109833ce528d5bbfb3f6225b39ee10086
- Previous block ID is not available because there is no block before: 0000000000000000000000000000000000000000
- Witness: initminer
To finish we log in to SteemWorld
CONCLUSION
Thank you professor @awesononso for this wonderful lesson.
CC: Professor @nane15