Emerging Technology

Question 1

Definition of Cryptocurrency

Answer 1

A digital asset where a secure form of mathematics is used to handle transactions, control the creation of additional units, and verify the transfer of assets

Question 1

4 Characteristics of Web3

Answer 1

1. Decentralised blockchain network
2. Community-governed
3. Advanced functionality
4. Value accrues to network participants
   *Web3 democratizes ownership

Question 2

Characteristics of Cryptocurrency

Answer 2

1. No intrinsic value
2. Has no physical form
3. Supply is not determined by the central bank

Question 3

Definition of Blockchain

Answer 3

Blockchain is a distributed and decentralised ledger that records and verifies transactions and ownership, making it difficult to tamper with or shut down

Question 4

3 Key Properties of Blockchain hash functions (SHA-256)

Answer 4

1. One-Way Trapdoor
   Easy to compute the hash output from an input, but nearly impossible to reverse-engineer the input from the output
2. Avalanche Effect
   A tiny change in input completely changes the hash output
3. Collision Resistance
   Computationally infeasible to find 2 different inputs that produce the same hash output

Question 5

What is PoW?

Answer 5

Miners compete to be the first to find a nonce that satisfies the hash requirement