Chapter 5 (5.2) Digital Currency and Blockchain

Question 1

What is digital currency

Answer 1

currency (a system of money) that exists in electronic form only;

Question 2

What is cryptocurrency

Answer 2

a form of digital currency that uses a chain of decentralised computers to control and monitor transactions

Question 3

What is cryptography

Answer 3

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

Question 4

What is a blockchain

Answer 4

is a digital ledger, that is a time-stamped series of records that cannot be altered

Question 5

What is a timestamp

Answer 5

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

Question 6

4 things a block contains

Answer 6

Data
Hash value
Previous hash value
time stamp

Question 7

Why is tampering prevented

Answer 7

Because altering one block will change its hash value and break the link to the following blocks - invalidating the whole chain.