Steemit Crypto Academy Season 5 - Homework Post for Task 3
a) 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.
What is a cryptocurrency?
Cryptocurrencies are now being born with the intention of displacing fiduciary money, which is centralised and regulated by central banks. In this sense, a cryptoactive is a digital currency that uses cryptography to operate, with the primary goal of dismantling the present inorganic printing infrastructure. This is undoubtedly because to the decentralised blockchain on which they operate, which makes it appealing to both young Millennials and young Z's like myself who are sceptical of inorganic centralised 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.
Another side , its historical compilation is accompanied by a lengthy process that began in 1983 with the American David Chaum, who invented the eCash cryptographic system; later, in 1995, DigiCash, which was also based on eastern cryptography, was established. Since each of the anonymous transactions was kept secret, the National Security Agency of the United States of America generated a collective location of an inquiry that it had conducted on the detailed description of the cryptocurrency system in 1996.
In light of this, in 1998, the engineer Wei Dai published a description of the concepts of cryptocurrencies; Wei's idea was based on the foundation of generating a digital currency that was in such a case based on cryptography and that this controlled him; however, it was not until 2009, when the first cryptocurrency was born and inserted into global markets, that the new digital asset would be named Bitcoin by its creator Satoshi Nakamoto, and it was after that moment that paradigms were broken.
In this regard, it is worth noting that cryptocurrencies have been able to establish themselves on the global stage and in markets due to their decentralised nature, which allows for rapid movement. This is even equipped with vast investment spaces; as well as abrupt spikes in the growth trend, such as the one in 2013 that marked the hegemony of Bitcoin, allowing greater reliability for the Millennial generation and larger acceptance for the Z generation, of which I am a member.
There is now significant evidence of paternalism on the part of certain paternalistic,mercantilist countries or those who oppose free market policies that the initiative to control crypto assets has repeatedly emerged, for which some countries have prohibited their transaction, but the reality is that the market has evolved and humanity is beginning to abandon fiat money.
Create a table that compares the benefits and drawbacks of Cryptocurrencies now:
| Advantages | Disadvantages |
|---|---|
| It is a type of decentralised currency. | They change over time. |
| Low operational costs. | Requires the use of the internet exclusively. |
| Information about users is kept private. | Some countries do not allow it to operate. |
| Taxes rate are low. | Its worth is determined by perfect competitive market standards. |
What is crypto and how does it make cryptocurrencies safe?
It should be emphasised that in order to completely comprehend the term cryptography, one must first comprehend its historical origins, which is how the term cryptography stems from "Kryptós," which means "secret," and so cryptography is a full-fledged "secret writing." Cryptography was utilised by humanity to encrypt and thereby configure the confidentiality of particular messages. In terms of operation, its operability is defined in encryption and encodings; however, during this expanding process, some security issues arose, necessitating the full protection of information within the network.
Cryptography is thus described as a science, method, or even an art that is responsible for giving complete security to the communications that make up the computer world. This is due to the algorithms or systems that it employs in order to preserve operability; in this scenario, its principal responsibilities are to implement, design, implement, and use cryptographic systems, all with the goal of protecting information and ensuring communications.
This entire ecosystem prompted the framework in which cryptocurrencies operate to be dubbed "Asymmetric Cryptography," which essentially entails employing a couple of combined keys to generate a public key for encryption and a private key for decoding.
In summary, if we lose our private key, our coins could be stolen or plundered; as a result, it must be securely maintained, with efficiency and efficacy. The first method for securing cryptocurrencies by cryptography is the verification of the user's identity as such; this is guaranteed by an authorised message that determines the user's loyalty; however, this is fully implemented as a result of encodings such as encryption codes that require access control. On the other hand, there is the second, which is "Linking," in which papers or even transactions are explicitly linked to a specific user.
Explore the Steem Genesis block and login as proof of completion
I must underline on this occasion that the Genesis block is the first block in a chain of blocks that has the goal of launching a cryptocurrency or token. This is not unique to this platform because it also functions or has the Steem Genesis Block, which can be explored using the following methods:
To get started, we'll need to perform the following:
- Visit a steemworld
- Click on Block Explorer section at the bottom of steemworld .
- We'll double-check that Number 1 is present and then click OK, in order to acquire full information on transaction 1 of the Steem Genesis block
- Block 1 of the Steem Genesis transaction details.
- Later, we provide him our Steemit ID and our publication private key in logging.
- The session is now open and ready to go.
All of the pictures taken from This website Steemworld
Conclusion
Since 2009, the markets have begun to respond in unison, owing to the high levels of faith in digital assets that flow around the world without state supervision, and where current generations trust and allow their hegemony to be established in defiance of money. trustee in a central location As a result of its consolidation, thousands of people now have economic independence, as well as an aggravation as a result of the global financial system's transformation. Cryptocurrencies are the present and will be the future on a world that yearns for complete economic liberty.
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