Steemit Crypto Academy - Homework Post For Professor @awesononso: Blockchain Rewards
Hello professor @awesononso, this post is to answer the homework questions and I need thank professor for the wonderful lesson. Let's enter into our homework topic.
MINING
Mining is process of verifying the transactions and submitted to the blockchain. In other words we can say it by the transaction verification work done for certain blockchain will pay the miners with their coins we call it as cryptocurrency.
In simple words, Banks are running servers for the transaction of their customers and those who helping the banking system get paid by fait currency according to the location of bank. In blockchain for example ethereum we helping the transactions of ethereum blockchain they will give the validators through their currency ETH. In last month the profitability of ETH miner was high due price of eth exploded.
BLOCK REWARD
Block reward is the reward given for the miners who was validating the transactions. This reward will varies from time to time inorder to reduce the inflation of cryptocurrency. We will discuss about this in below part. Block reward reduces for each block by half after halving takes place.
What do you understand by the Bitcoin Halving?
Bitcoin Halving is the process of reducing the block reward of miners inorder to reduce the supply of Bitcoin. When the reduction in supply increases demand increase results in increase in price.
This Halving process reduce the new Bitcoin token gemerated per block. The next halving is based on the block height not in particular date. As the number transaction increases the block height increase results in fast approaching of next halving.
Current Bitcoin block reward
After the halving happened in 2020 the block is reduced to 6.25 from 12.5 BTC/ block. On next halving the block reward is reduced to 3.125 BTC/block.
What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
The above data is taken from blockchain. Current block height is 696665.
Bitcoin halves every 210,000 blocks and has already been halved thrice, and here we are approaching fourth halving. Hence here we go
- Current block height of Bitcoin =
696665 - Remaining blocks for next halving =
143335
Do you think Steem’s inflation rate reduction can affect other coins? Why?
Steem blockchain works independent of other blockchain. Many cryptocurrency in market fluctuate based on the cryptocurrency godfather "Bitcoin" movement. But steem currency is independent of it. And yes, some of the crypto token values cahnges based on steem token price within steem ecosystem like steem backed dollar aka SBD and steem power aka SP.
What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?
Reduction occurred =[ Current block height / 250000]
Reduction occurred = 56526159/ 250000 = 226
Hence steem already reduced it's inflation on 226 th time next will be 227th.
Remaining block height for next reduction = [ 227×250000
What is the current value of BTC on the day you are performing this task? If you made a purchase of $2,500 then,
Current value of BTC = 47000$
BTC for $2500 = 2500/47000 = 0.0531
Satoshis for $2500 = 0.0531/0.00000001= 5,310,000 satoshis
Price per satoshis = 0.00000001*47000= 0.00047
What is the current value of BNB on the day you are performing this task? If you made a purchase of $30
Current value of BNB = 433$
BTC for $30 = 30/433 = 0.069
Jagers for $30 = 0.069/0.00000001= 6,928,406.47 jagers
Price per jagers = 0.00000001*433=0.00000402
Conclusion
Thank you professor for the wonderful lesson. I learnt a lot from this homework. Actually I am miner but I didn't know about the how actually halving is calculated but through your homework process I learnt that. Thank you ☺️
Hello @erode,
Thank you for taking interest in this class. Your grades are as follows:
Feedback and Suggestions
There are a lot of unclear points in your work. A better understanding of the topic is recommended.
You did not complete the calculation of the Steem Block height.
You did not provide screenshots of the values of Bitcoin and BNB.
Thanks again as we anticipate your participation in the next class.