Steemit Crypto Academy [Beginners' Level] | Season 3 Week 8 | Blockchain Rewards
You're Welcome To This Homework Task Of Professor @awesononso on the topic: Blockchain Rewards......
1.In your own words, explain mining and block reward.
Mining and block reward are two different words with similarities in meaning. Let's start by explaining mining reward.
Mining rewards
Mining reward is simply the amount of crypto reward that is giving to a miners for suçcessfully mining and verifying the final transcation of a blockchain network. The amount of rewards that a miners received is based on the type of cryptocurrency reward system.
How miners get they mining rewards
Miners get their rewards whenever a cryptocurrency transaction is appears in the network of the coin that the miner is mining, once the transaction appear the miners will then confirm the transaction by halving the real amount of the block that is mined. Once the miners is done with the verification, the new block will then be stacks on the top of the block that has already been mined on the blockchain network. At this point, the miners that verified the last transaction bon the block will receive the mining reward. For a better understanding, let's take a look at this example, miners can be rewarded with 6.25 BTC when a Bitcoin block is successfully mine and added to the blockchain network as earlier said about halving. For every 210,000 bitcoin blocks the reward amount will be halve which usually took place once in every four years.
Block Reward
Block reward is the reward that a miners receive for every transaction block that is successfully mine and added to the blockchain network by the miners. Blockchain comprises of a group of blocks, that contains a list of transcation that are completed verfied and added to the blockchain, that cannot be changed. For transactions to be verified miners must first solve the problems before the block can be added to the blockchain network. As a result of this mathematical problems the miners will receive a reward known as the block reward. The purpose of the block reward is to encourage miners to continue solving complex mathematical problems and for they time spend on solving the problems.
2. What do you understand by the Bitcoin Halving?
Bitcoin halving is the process of dividing the rewards that is gain from mining bitcoin whenever a set of 210,000 blocks is mined. The essence of bitcoin halving is to reduce the reward gain from mining bitcoin since many blocks are mined,which tends to stop inflation and control the supply of bitcoin. The main reason for the bitcoin halving is that there is a limit at which bitcoin can reach which is 21 million Bitcoin in circulation. Once bitcoin has reach 21 million, bitcoin can no longer be released. In a situation where more than 21 million bitcoin is released, it would cause a lot of problem whereby bitcoin will lose it value in the market.
How Bitcoin Halving Works
The bitcoin halving works in a way that each 210,000 blocks that a miners mined, the block reward will be divided into half. As of 2016, a set of 210,000 blocks was mined and instead of 50BTC reward it was cut to 12.5BTC in 2016. In 2020 the same thing happened when 630,000 blocks was completed and was half into three having 210, 000 blocks with a reward of 6.25BTC block. This means that 210,000 blocks can only be mined in every four years with also bitcoin halving occuring in every four four years. Since the last bitcoin halving happened in 2020, the next bitcoin halving is excepted to happen in 2024 which is three years from now.
3.What are the effects of the Halving on miners?
The whole of bitcoin community always seek to know when halving will take place. When it has to do with the effects on miners when mining, the cost of mining activities such as; equipment, electricity, time and the energy that is Benn put into mining will be increase so they can be rewarded.
Another effect here is that halving has affect the growth of mining pools, and also reduces the reward of mining for miners. Miners who invested so much in mining will be expecting to earn greater reward but with the halving the reward of the miner will be reduce. Although the halving is very important since it balance the supply of bitcoin by reducing the way it's mined, with this the value of bitcoin will be higher in demand
4.What is the current block height on the Bitcoin blockchain? How many more blocks before the next halving?(Screenshots and Full working)
In other for me to know the current block height on the Bitcoin blockchain,I visited blockchain.com from which the current block height is 674748 shown to me from the screenshot below.
From our studies/research, we have understood what is halving, how it usually occurred once in every 4 years. That means of halving occur at this current block height,the next halving is going to be in the next 210,000 blocks. In that case in we are to present this information in mathematical way then our calculation will be calculated below.
Block height for the next halving = 210,000 × 4 = 840, 000
Current block height = 696867
The number of block for next halving will be calculated as:
840,000 - 696,867 = 143,133 Blocks.
5. Do you think Steem’s inflation rate reduction can affect other coins? Why
Steem inflation rate reduction cannot affect other coins. The reasons is that the reduction in Steem inflation rate implies that the number of Steem that is generated yearly will be reduce which only affect Steem without affecting other coins. Steem inflation rate is reduces in a percentage of 0.01% for each 250,000 blocks. Steem is a coin that stand on it own, like any other coin out there of which inflation rate reduction cannot affect other coin, except Steem. Steem halving is all about controlling the amount of Steem that are in circulation by making it to become valuable than other coins.
6.What is the current block height on the Steem blockchain? How many more blocks before the next 0.01% reduction?(Screenshots and Full working)
In other for me to see the current block height on the Steemit blockchain, I visited steemscan.com and clicked on latest block, then the current block height was shown to me as;56,560,917
How many more blocks before the next 0.01% reduction?(Screenshots and Full working)
The Steem inflation rate is reduces by 0.01% in each 250,000 blocks. The current block block height as shown from the screenshot above is;56,560,917 blocks.
To find the number of blocks before the next 0.01% reduction will be calculated as;
Block height = 56,560,917/250,000 = 226.24
From the calculation above, there have been 226 reduction so far.
The next inflation rate will be calculated as;
The block height for next reduction = 226 × 250,000 = 56,500,000
∴ Number of blocks until next reduction = 56,500,000 - 56,560,917
= -60,927 Blocks.
Continuation of last week’s work:
1.What is the current value of BTC on the day you are performing this task? If you made a purchase of $2,500 then,
a.) how many satoshis would you have?
b.) what is the value of a satoshi for that day?
(Show full working and correct to 3 s.f)
(1 satoshi = 0.00000001 BTC)
The current value of BTC on the day this homework task was perform is $49,107.11 based on the information gotten from Coinmarketcap
a.) how many satoshis would you
To know the number of Satoshi that I would have is to first covert $2,500 to BTC by calculating it as shown below:
$49,107.11 = 1 BTC
$2,500 = ($2,500 / $49,107.11) = 0.0509091249719 btc
0.0509 BTC (to 3.s f)
0.00000001 BTC =1 satoshi
0.0509 BTC = (0.0509 / 0.00000001 BTC) = 5,090,000 Satoshi
b.) what is the value of a satoshi for that day?
Solution
1 Satoshi = 1/100000000 x 1 BTC
1 BTC = $49,107.11
∴ 1 satoshi = 1/100000000 x $49,107.11
1 Satoshi = $0.0004910711
1 Satoshi = $0.000491 (to 3 s.f)
2.What is the current value of BNB on the day you are performing this task? If you made a purchase of $30 then,
a.) how many Jagers would you have?
b.) what is the value of a Jager for that day?
(Show full working and correct to 3 s.f)
(1 jager = 0.00000001 BNB)
(Screenshots of current value should be provided)
The current value of BNB on the day this homework task is perform is $457.25 according to the information on Coinmarketcap
a.) how many Jagers would you have?
To know the number of Jager that I would have is to first covert $30
$457.25 = 1 BNB
$30 = ($30/$457.25) = 0.0656096227446 BNB
0.0656 BNB (to 3 s.f)
0.00000001 BNB=i jager
0.0656bnb = (0.0656bnb / 0.00000001bnb) = 6,560,000 Jager
b.) what is the value of a Jager for that day?
(Show full working and correct to 3 s.f)
(1 jager = 0.00000001 BNB)
Since 1 jager = 0.00000001 BNB, then also 1 bnb is equal to $457.25 , we are going to first draw how much 1 bnb on this day.
1bnb = $457.25
0.00000001bnb = $0.0000656
To the value of 1 jager, we can easily say that 1 jager = 0.00000001
BNB = $0.0000656
Conclusion
From this homework task we have learned about mining reward,block rewards, halving and also how to calculate block know when next bitcoin halving will take place. This is not just a homework post that I have carry out, but a real lession is what I have learned from doing this homework task.
Thank you Steemians for your time here....
Best Regards;
Cc:-
@awesononso