Chapter 5.4

Question 1

What is a digital currency?

Answer 1

a currency that exists electronically

Question 2

What type of digital currency is bitcoin?

Answer 2

cryptocurrency

Question 3

What is a cryptocurrency

Answer 3

a type of digital currency that uses encryption procedures

Question 4

What does it mean when we say a type of digital currency has a centralized system?

Answer 4

it means that there is an authority at the center managing the process in which they are used

Question 5

What type of system does cryptocurrency have? and how does it mean.

Answer 5

it has a decentralized system which means that there is no central authority, like a bank, managing the process of payments

Question 6

How do we keep track of payments of digital currencies that don’t have centralized system?

Answer 6

we use a blockchain which his a type of method that is used to track all the transactions made with cryptocurrency