Steemit Crypto Academy S5-[The Genesis Block] - Task 03
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What is a Cryptocurrency?
If my esteemed professor is reading, we must first understand what money is. I'm going to start with the first question by giving a quick explanation of money, which is "the simple printing of a banknote with monetary value that is used to exchange products." This printed currency is normally under the supervision of a Central Bank or Treasury Department, which is in charge of monetary policy and is usually subject to a State's centralized demands.
Cryptocurrencies were created with the goal of replacing fiat money, which is centralized and controlled by central banks. As a result, a crypto asset is a digital money that uses cryptography to operate, with the primary goal of dismantling the present inorganic printing system. This is undoubtedly because to the decentralized blockchain on which they operate, which makes it appealing to both young Millennials and young Z, as well as myself, who have little faith in artificial centralized currencies. In the same vein, all crypto-asset transactions are secure and function independently of government, private entities, or banks, allowing for their consolidation since their inception. In a broader sense, the crypto asset provides its owner with complete freedom from outside influence, which we might refer to as full or absolute economic freedom.
From the other hand, its history comprehensive list is preceded by a lengthy movement that starts in 1983 with the American David Chaum who developed a cryptographic system known as eCash; later, in 1995, the DigiCash was established, that was also consists of cryptography and truthfully kept under wraps each one of the anonymity; and finally, in 1996, the Intelligence Community of the United States of America generates a collective location of an investigation it had conducted.
According to this, in 1998, technologist Wei Dai describes the suggestions of virtual currencies; Wei's concept was predicated on the founding of trying to generate a digital money that was in a really case traditional cryptography and it governed him; however, it would not be until 2009, when the first cryptocurrency was born and inserted into global markets, that the new digital asset would be given the name Bitcoin by its creator Satoshi Nakamoto after that present time that ended up breaking paradi.
In this way, it should be emphasized that cryptocurrencies have been able to establish themselves on the global stage and in the markets as a result of their decentralized nature, which allows for rapid movement. This is even endowed with vast investment spaces; as well as dramatic surges in the growth trend, such as the one in 2013 that marked the hegemony of Bitcoin, allowing increased reliability of the Millennial generation and larger acceptance of generation Z, of which I am a member.'
Now, there's really ample proof by some moralistic, protectionist, or anti-free-market countries that the action plan of controlling crypto assets has arisen repetitively, so in some cases, their payment is forbidden, but the reality is that the imminent market has evolved and humanity is beginning to abandon fiat money.
- Let's see the advantages and disadvantages of Cryptocurrencies
| Advantages | Disadvantages |
|---|---|
| They are a type of decentralized currency. | Fluctuate |
| Low operational costs. | Requires the use of the internet exclusively. |
| Information about users is kept private. | In some nations, their operations are prohibited. |
| Taxes are low. | Its worth is determined by perfect competitive market standards. |
What is Cryptography and how does it make cryptocurrencies secure?
It should be emphasized that in order to completely comprehend the term cryptography, one must first understand its historical context. For example, the name cryptography comes from the Greek word "Kryptós," which means "secret," therefore cryptography is a complete definition of "secret writing." Cryptography was utilized by humanity to encrypt and thereby configure the confidentiality of particular messages. In terms of functioning, it is framed in encryption as well as encoding; but, as the network grew, some issues with security arose, and it became necessary to adequately safeguard the information within the network.
Cryptography is thus defined as a science, practice, or even an art form that is responsible for giving complete security to the computer world's communications. Certainly, this is due to the algorithms or systems it employs to preserve operational capability; in this case, its primary needs are to execute, design, enforce, as well as create cryptographic systems, all with the goal of protecting information and ensuring secure connections.
This entire ecosystem prompted the network on which cryptocurrencies function to be dubbed "Asymmetric Cryptography," which basically entails employing a pair of combined keys to generate a public key for coding and another private key for decoding.
In summary, if we forget our private key, our money can be stolen or looted; as a result, it must be maintained in a secure manner that ensures its efficiency and efficacy. The first method for cryptography to protect cryptocurrencies is the verifiable proof of the user's identity as such; this is secured thanks to an authorized text that helps determine the user's accuracy; however, this is needed for the entire as a result of compression algorithms such as encryption codes that require access control. On the other hand, there is the second, which is "Linking," in which papers or, more precisely, transactions are explicitly linked to a user.
- Explore the Steem Genesis Block and Sign in as proof of completion.
On this occasion, I must emphasize that the Genesis block is the first block that is elaborated for a blockchain, with the goal of launching a cryptocurrency or token. This is not unique to this platform because it also operates or has the Steem Genesis Block, which can be explored using the following methods:
To begin our investigation, go to https://steemworld.org. After that, go to Block Explorer.
Then, in the search box, type block 1 in.
All of the information for the steem blockchain network can be found here.
As confirmation of completion, I'll now log in to the site.
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