cryptocurrency Flashcards
(19 cards)
What is blockchain?
A decentralized digital ledger that records transactions in linked blocks. Each block is securely connected to the previous one, making the data tamper-resistant and transparent.
What is a node in blockchain?
A participant’s computer or device that stores a full copy of the blockchain, validates new transactions, and helps maintain the network’s integrity.
What does Proof of Work (PoW) refer to?
A consensus method where nodes solve complex computational puzzles to earn the right to add a new block. This process secures the network by requiring significant computational effort.
What is Proof of Stake (PoS)?
A consensus method where validators are chosen to create new blocks based on the amount of cryptocurrency they ‘stake’ or lock up. It encourages honest behavior by rewarding validators and penalizing dishonest actions.
What is a digital wallet?
A software program or device that stores your public and private keys, allowing you to access and manage your cryptocurrency.
What is an exchange in the context of cryptocurrency?
A platform that facilitates the buying and selling of digital currency. Customers can trade one digital currency for another or buy digital currency using fiat currency.
What does OECD stand for?
Organisation for Economic Co-operation and Development.
What are smart contracts?
Self-executing contracts written in code and stored on a blockchain. They automatically execute agreements when predetermined conditions are met.
What is Decentralized Finance (DeFi)?
Financial services, like lending, borrowing, and trading, built on decentralized blockchain networks, without traditional intermediaries.
What is XRP (Ripple)?
A cryptocurrency often used for fast and cheap international payments, particularly by financial institutions.
True or False: Cryptocurrency transactions between private users are currently regulated.
False.
What is required for crypto exchanges to operate in South Africa?
Crypto exchanges in South Africa are required to operate with licenses.
What is the Foreign Investment Allowance limit for taking funds offshore in South Africa?
R10 million per adult per calendar year.
Fill in the blank: A decentralized digital ledger that records transactions in linked blocks is called _______.
blockchain.
Fill in the blank: A participant’s computer or device that stores a full copy of the blockchain is called a _______.
node.
Fill in the blank: The method of consensus where nodes solve complex puzzles is known as _______.
Proof of Work (PoW).
Fill in the blank: The method of consensus based on the amount of cryptocurrency staked is called _______.
Proof of Stake (PoS).
TOC: Payment currencies
use to pay for g &s
TOC: blockchain economies
