Chapter 5 (5.2) Digital Currency and Blockchain Flashcards Preview

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Flashcards in Chapter 5 (5.2) Digital Currency and Blockchain Deck (11)
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1
Q

What is digital currency

A

currency (a system of money) that exists in electronic form only; it has no physical form and is essentially data on a database

2
Q

What is the problem with digital currency

A

Centralization - all transactions go through the central bank

3
Q

Problem with centralization

A

maintaining confidentiality and security

4
Q

Diff between cryptocurrency and digital currency

A

Dig - all transactions are private
crypto - all are publicly available

Dig - regulated by the state and govt
crypto - controlled with the community itself

5
Q

What is cryptocurrency

A

a form of digital currency that uses a chain of

decentralised computers to control and monitor transactions

6
Q

What is cryptography

A

the protection of data/information by use of coding; it usually involves encryption and decryption

7
Q

What is a blockchain

A

a decentralised database where all transactions are stored; it consists of a number of interconnected computers but not a central server

8
Q

What is a timestamp

A

a digital record of the date and time that a data block is created in blockchain networks

9
Q

What is proof of work

A

the algorithm used in blockchain networks to confirm a transaction and to produce new blocks to add to the chain

10
Q

Who are miners on the blockchain

A

special users called miners complete and monitor transactions on the network for a reward

11
Q

What is the genesis block in the blockchain

A

The first block in the chain. Does not connect to any previous block because it has none.