The Genesis Block - Crypto Academy S5 - Homework Post for task 3
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.
It is another privilege to join another beginners fixed class in the week five of season five of the Steemit Crypto Academy. It's been a good indept Understanding of Cryptocurrency and its Genesis Block. However, here is my work exercising my knowledge of the subject matter.
Image self created on Canva
What is a Cryptocurrency?
Cryptocurrency is a form of digital currency that is based on the Blockchain. Being a digital currency means Cryptocurrency is a spendable unit that serves as a form of exchange for value and does not exist physically but virtually. The word Cryptocurrency is commonly referred to as crypto which is a derivative of Cryptography.
Cryptography is the protocol that secures cryptocurrencies on the Blockchain. The cryptography is a set of algorithm that supports the transfer of data secretly from one point to another. Using cryptography, messages are encrypted to a format that is only readable to the intended recipient. However, information about the storage and transfer of cryptocurrencies are entered into a public leger called Blockchain.
The security of the Blockchain make these data immutable and avoid being double spent. The first cryptocurrency known as Bitcoin was launched in 2009 and it was created as a proposed solution to the failures of the traditional financial system. Cryptocurrency is meant to serve as a financial asset and a medium of exchange that is easily transferable without the validation of a central financial body. This phenomenon of making transactions on peer to peer validation is known as Decentralization.
Thousands of cryptocurrencies has been created after Bitcoin and they are collectively referred to as Altcoins. Some of these altcoins were created to mimic the Bitcoin or work a solution to its flaws while some where created to address a different problem entirely. Some of these Altcoins include Ethereum, Litecoin, Cardano, Binance coin, Tronix, Terra, Tether etc
Cryptocurrencies are commonly created by mining where users of the network agrees on the creation of a new block that would be added to the Blockchain. These procedure of Agreement is known as consensus mechanism. Different cryptocurrency network uses variety of suitable consensus mechanism that brings about their block creation. These includes Proof of Work, Proof of Stake, Proof of Burn, Pure Proof of Stake, Delegated Proof of Stake and lot more.
Cryptocurrencies are Stored in their wallets. Many of these wallets can exist as virtual just like the Cryptocurrency they hold while some exists in hardwares. Technically, these wallets hold no coin but keep keys that gives access to control units of such cryptocurrencies. These keys come in pairs as Public and Private keys. The public key serve as an address to receive cryptocurrencies while the Private key is used to unlock the cryptocurrencies.
What is Cryptography and how does it make cryptocurrencies secure?
Cryptography as mentioned earlier is a set of algorithm that encrypt information into a cypher text format that is only readable to the intended recipient. Cryptography ensures a secure end to end communication and transfer of information. Cryptocurrencies makes use of a form of Asymmetric cryptography where a pair of unidentical but related keys are used for encryption and decryption of information.
These pair are the Public and Private keys. The public key is used to encrypt information while the private key is used to decrypt it. In a practical sense, cryptocurrency token can be sent to you using a public key but you can only claim or do with these tokens using the private key. The private and public keys are unique string of alphabets and numbers which are created by Cryptographic computation while creating a wallet.
Cryptography ensures high standard of security of cryptocurrencies. It ensures confidentiality by making information readable only to the intended recipient. It also ensures a non repudiation meaning a processed transaction cannot be withdrawn. It's permanently recorded on the Blockchain.
Explore the Steem Genesis Block and Sign in as proof of completion.
The Steem Genesis block can be found on the steem explorer Steemworld.org.
First step: I opened steemworld.org webpage on my browser.
Steemworld
Step 2: Click on block explorer. This opens the explorer page with a pop up window. This pop up contains a default input of 1. This indicate Block 1 the Genesis block.
Steemworld
Step 3: Click "OK"
This opens a page with details of the Genesis block. It reveals the timestamp, Block ID, Previous ID(doesn't exist), Witness (initminer), signing key, witness signature, Transaction Markel root and Extensions.
Steemworld
Step 4: Signing in as @okunlolayk
Steemworld
Steemworld
Conclusion
There has been a continous increased adoption of cryptocurrency since inception and its Applications are quite expanding daily. Many believe cryptocurrencies would take the future of finance. Truthfully, it has what it take to take it and developers are solving faults that could stop it. Cryptocurrency is set to be a system of Decentralization, security and Scalability. A system where we don't need a third party or regulator to validate financial Transactions. A system secure at keeping immutable record of Transactions and a system fast enough to accommodate the increasing capacity of the network. Cryptocurrencies are now being used in many industries; Decentralized Finance, Decentralized Application development
investmentt, insurance, health, artwork etc.
Best Regards!!
