Cryptocurrency Flashcards
Define Distributed Ledger Technology (DLT).
A cryptographically‑secured, decentralised network where every participant holds an identical, synchronised copy of a transaction ledger.
Give two advantages of DLT over a centralised ledger.
No single point of failure & tamper‑evident transparency; lower audit/compliance cost.
How does a blockchain ensure data can’t be secretly altered?
Each block stores the previous block’s hash; changing data changes the hash, breaking the chain and invalidating later blocks.
Which consensus mechanisms secure Bitcoin and Ethereum, and which is greener?
Bitcoin: Proof‑of‑Work; Ethereum: Proof‑of‑Stake (less energy‑intensive).
What key pair does a crypto wallet generate and what are their roles?
Public key = receive address; Private key = authorises spending and must be kept secret.
List three transactional properties of cryptocurrencies.
Irreversible, pseudonymous, fast & global (also secure, permissionless).
State two monetary properties coded into most cryptocurrencies.
Fixed/controlled supply schedule; bearer asset (no IOU/debt).
How is double‑spending prevented in a decentralised crypto network?
Transactions are broadcast to all nodes; validators reach consensus before a block is final, so the same coins can’t be spent twice.
Name two concerns regulators or central banks have about cryptocurrencies.
Loss of monetary‑policy control; money‑laundering/tax evasion risk (also consumer protection & volatility).
Who created Bitcoin and in what year?
Pseudonymous developer Satoshi Nakamoto, 2009.
