Bitcoin's Trajectory - Crypto Academy S4W5 - Homework Post for @imagen
Homework Question
1.) How many times has Bitcoin been "halved"? When is the next one expected? What is the current amount that Bitcoin miners receive? Mention at least 2 cryptocurrencies that are or have halved.
2.) What are consensus mechanisms? How do Proof-of-Work and Proof-of-Staking differ?
3.) Enter the Bitcoin explorer and indicate the hash corresponding to the last transaction. Show Screenshot.
4.) What is meant by Altcoin Season? Are we currently in Altcoin Season? When was the last Altcoin Season? Mention and show 2 charts of Altcoins followed by their growth in the most recent Season. Give reasons for your answer.
5.) Make a purchase from your verified account of the exchange of your choice of at least 15 USD in a currency that is not in the top 25 of Coinmarket (SBD, tron or steem are not allowed). Why did you choose this coin? What is the goal or purpose behind this project? Who are its founders / developers? Indicate the currency's ATH and its current price. Reason for your answers. Show Screenshots.
6.) Conclusions
1) How many times has Bitcoin been "halved"? When is the next one expected? What is the current amount that Bitcoin miners receive? Mention at least 2 cryptocurrencies that are or have halved.
The time Satoshi Nakamato invented the Bitcoin that time he designed the way of distribution of mining rewards. Mining rewards is given to the miners which able to solve the cryptographic solution and helps to validating the transaction. This rewards are reduced when halving is happens. In simple words Bitcoin halving means on every 210,000 blocks mining rewards will be reduced by 50%. This is makes more hard to mine the bitcoin as so many small miners are shut down their operations due to less rewards but this is actually gives value to the bitcoin. The last halving is happening in 11th May 2020 and next halving will be expected in 2024 and rewards will be that time 3.125 BTC and The all halving we are expected to complete till year 2140 when all the bicoins are mined. I mentioned all the details of halving in the below table
| Halving | Halving Date | Block | Per Block Reward | New BTC Mined | Mined % |
|---|---|---|---|---|---|
| BTC Launch | 3 Jan 2009 | 0 | 50 | 10,500,000 | 50 |
| 1st Halving | 28 Nov 2012 | 210,000 | 25 | 5,250,000 | 75 |
| 2nd Halving | 9 Jul 2016 | 420,000 | 12.5 | 2,625,000 | 87.5 |
| 3rd Halving | 11 May 2020 | 630,000 | 6.25 | 1,312,500 | 93.75 |
| 4th Halving | Expected 2024 | 840,000 | 3.125 | 656,250 | 96.875 |
As you saw in the above table currently miners are received 6.25 BTC as per block reward and it was reduced in the year of 2020.
Below are the 2 cryptocurrencies that are or have halved.
1)Verge (XVG)
According to their official website It is designed for everyday use.Wheere user can perform daily travel bookings, online food orders using the verge token in Korea also they are setting up some ATM's to instantly withdraw token into their local currency.
Its designed to halved after every 500,000 blocks have been added to the chain and details of its halving is are given below.
| Date | Blocks | Mining rewards in XVG |
|---|---|---|
| Decembar 2019 | 3,700,000 | 400 XVG |
| July 2020 | 4,200,000 | 200 XVG |
| January 2021 | 4,700,000 | 100 XVG |
| September 2021 | 5,200,000 | 50 XVG |
| April 2022 | 5,700,000 | 25 XVG |
Next halving information I got from the this website. And previous halving details I got from the different different tech news websites.
2) FIRO
I saw their official website and they showing their roadmaps they are working on to some mobile wallets and DEX and also researching on the fast sync.
FIRO coin is set their halving to every four years and it only has 1 halving that is last year Septembar 2020 and they also announced that in their tweet. The currently block reward is 12.5 FIRO coins for the miners.
There is more big coins like LTC, DOGE,BTG,DASH also halved and this halving concepts helps to grow their price over the time.
2) What are consensus mechanisms? How do Proof-of-Work and Proof-of-Staking differ?
consensus mechanism is decided how to be added a new block in the blockchain.There is so many consensus mechanism in the blockchain world.By using this algorithms we agress on one particular stage if the new block is added into the block chain who will added that can be defined by the consensus mechanism.It helps to ensure records are true and honest not a malicious. I will share below the information of 3 types of consensus mechanism which is quiet popular in blockchain technology.
Proof Of Stake
In the Proof-of-Stake mechanism, creator of the new block is randomly chosen by the system based on how much they stake they are locked in the network. It simple means higher amount of stake they are locked than higher amount of chance to become solved the equation.
For example, Imagine one bag of money is there and owner of the bag will give chance to open the bag to everyone in the room. To become open that bag we have to solved the equation. But first preference only given to those people who deposited higher amount of money to the bag owner. Without submission of money you will not get chance to open the bag. Cardano and EOS are using the Proof of Stake mechanism
Proof Of Work
In a Proof of work mechanism, Transaction data is stored in the block and that should be validated by supercomputers by solving high level mathematical equations and one who solved that equations will be rewarded by giving some crypto coins to them. This process called as mining. Bitcoin is follow the Proof of Work mechanism.
For example, Imagine there is suitcase with one complicated lock attached to it and there is some people trying to figured out correct combinations. The First one who able to crack the correct combination will be rewarded by giving some amount of crypto coins to them. This is how Proof-Of-Work will be did in actual.
Proof Of Authority
This is the modified version of proof of stake.Here only approved parties selected based on their reputation can become chance to solved the equation for new block.
For example,
There is one union who helps people to open their bags and when they had client to open the locked bag only few people who has reputation will get chance to open the bag.
This mechanism is adopted by the IBM's hyperledger network.
Difference Between Proof-Of-Work and Proof-Of-Stake.
| Proof-Of-Work | Proof-Of-Stake |
|---|---|
| Solving the complex mathematical problem using the high end computers to validate the transaction in a blocked called "Proof-Of-Work" | In this rather than High end computers preference is given to those who has large no. of tokens freeze or commit into the blockchain network. |
| In this huge amount of electricity is required for the running high end super computers so it was not eco friendly as compared to the Proof-Of-Stake | As validating the transaction preference is given to the stake holder this mechanism needs less computing power as it needs less electricity power. |
| To start mining required high end computers and miner doesn't need any tokens in their wallet. Miners can join the blockchain network even they have 0 tokens in their wallet. | To start mining needs some amount of token in the miners wallet and that token also they have to freeze or locked till they want to mine. |
3) Enter the Bitcoin explorer and indicate the hash corresponding to the last transaction. Show Screenshot.
I visited to the Bitcoin explorer platform and I amazed to see that their is lot transaction and every seconds it was updated. To perform the task I choose the hash corresponding to the last transaction
Till the time I took a screenshot there is lot of transaction updated so I took the latest one.I am performing this task at 10-10-2021 00: 20 (IND TIME) and the status of the hash is unconfirmed at the time of doing this task
Below image will show you that this transaction is about 0.00021894 BTC and its value its after conversion at 12.02 USD.
Hash for the transaction :-
8f97a86fbf1b0dc6127b57b9ada1f7948b7afa69da0906eb53e7555dcbf8215f
4) What is meant by Altcoin Season? Are we currently in Altcoin Season? When was the last Altcoin Season? Mention and show 2 charts of Altcoins followed by their growth in the most recent Season. Give reasons for your answer.
In the alt season mostly happens that all the alt coins will give huge returns as their prices are increases tremendously. The first indicator of alt season beginning is when BTC dominance is going down. That time investor convert their BTC fund into the alt coins that result tremendous growth in altcoins prizes. In the alt season also bitcoin price is increase but slow as compared to the altcoins.
To identify the are we in altcoin season we need to check the charts
As we saw in the above chart of bitcoin dominance. We saw that bitcoin dominance is 43.92 in the market.
After seeing the bitcoin charts it shows the it was near to 55K USD price and after seeing both the chart I observe that bicoin dominance and price chart both are shows into bullish trend and it continuously grows than altcoin season will not start. As we saw some altcoins shows the tremendous growth but till the time by observing the chart we know that to enter into the alt season bitcoin dominance should decrease over the time.
As per my observation last alt season was started in the mid 2017 and ends in 2018
As we saw in in the above chart bitcoin dominance drop tremendously in that period and some of the altcoin like ETH was having huge growth in their prices.
As you saw in the above image you will observe that in that alt season price of ETH will rise from 16 USD to 1100 USD withing a year Its nearly 6876%. It was huge returns and as per my view this was the last alt season we saw.
Recently I saw huge growth in two altcoins I will show you by using the charts
1) SHIBA
As you saw in the below chart you will able to know that SHIBA price is rose by 500%
2) FTM
FTM prices are also rise by 1,344 % withing last few months.
As you saw in the above pictures I tried to pick the altcoins that already give huge returns and these will be really huge when you saw their growth in percentage.
5.) Make a purchase from your verified account of the exchange of your choice of at least 15 USD in a currency that is not in the top 25 of Coinmarket (SBD, tron or steem are not allowed). Why did you choose this coin? What is the goal or purpose behind this project? Who are its founders / developers? Indicate the currency's ATH and its current price. Reason for your answers. Show Screenshots.
I choose the STMX project as It was mainly focused on the micro-task and after completing that micro-task it rewarded their user by STMX token. As it focused on the microtask it has more than 75000 users and its growing. I saw this project has good potential to grow in the long term. They have also various ways to earn. As by using this app users are able to do the shopping and they will benefits as crypto cashback this cashback attracts many customers also they had market place to buy bitcoin and etheriuem.
The CEO and founder of StormX is Simon Yu who has experience as financial analyst in the company like Amazon and This is the another attraction of STMX which attracts me more. If leader has the good knowledge of the financial market than definitely he will makes the future of the coin is bright.
STMX token did some awesome integrations on their platform and some of the top block chain networks like LItecoin an d MarkerDao are worked in the progress to integrate on STMX platform and they plan some upcoming events which they introduced very soon.
In the upcoming events they tried to expand their networks and will try to add more shops on their platform and for that they focusing on markets like U.S., South Korea, Europe, and Asia. Also they will introduced the leaderboards so it will update their old mobile application and also to increase the users they are planned to offer STMX debit card very soon.
Conclusion
In this post we are studied about the bitcoin halving and also look into the other halving cryptocrurrencies. Also we take look into the consensus machanisim and in the end we are seeing the STMX project information.This is the complete post in which you will get various topic knowledge and I learned lot of new things by writing this post as earlier I think only bitcoin is halved but today I aware about that other coins also halved as per their interval.
Warm Regards,
@mayureshpandit