Introduction to Digital Assets Flashcards
What is “Distributed Ledger Technology”?
Technology based on a distributed ledger.
What is a “Distributed Ledger”?
A type of database that can be shared among entities in a network.
What is “Cryptography”?
An algorithmic process to encrypt data, making the data unusable if received by unauthorized parties.
What are “Smart Contracts”?
Computer programs that are designed to self-execute on the basis of pre-specified terms and conditions agreed to by parties to a contract.
What is a “Blockchain”?
A type of digital ledger in which information is recorded sequentially and then linked together and secured using cryptographic methods.
What is a “Consensus Protocol”?
A set of rules governing how blocks can join the blockchain that is designed to resist attempts at malicious manipulation.
What is a “miner”?
A validator of transactions on the blockchain that locks blocks of transactions into the blockchain and receives compensation for this process in the form of a digital asset.
What are “Permissionless Networks”?
Networks that are fully open to any user on the DLT network.
What is “Bitcoin”?
A cryptocurrency using blockchain technology that was created in 2009.
What are “Permissioned Networks”?
Networks that are fully open only to select participants on the DLT network.
What is a cryptocurrency?
An electronic medium of exchange that lacks physical form.
What are “Central Bank Digital Currencies”?
A tokenized version of the currency issued by the central bank, such as a digital bank note or coin, and a digital liability of the central bank.
What is “Tokenization”?
The process of representing ownership rights to a physical asset on a blockchain or distributed ledger.
What are “Non-Fungible-Tokens” (NFTS)?
A unique cryptographic token on the blockchain that cannot be replicated and is used to represent ownership of an asset.
What are “Security Tokens”?
A digitalized representation of the ownership rights associated with publicly traded securities.
