Digital Currency Flashcards
1
Q
Digital Currency
Definition
A
- Digital unlike Fiat currency
- Accepted form of payment
- Transferred between various accounts when transacting
- Relies on Central Banking system
2
Q
Cryptography
Definition
A
- Cryptocurrency uses Cryptography to track transactions
- No state control, rules are set by the community and not banks/governments like traditional digital currency
- Publicly monitored
3
Q
Blockchaining
Definition
A
- Decentralised Database (transactions of networked members are stored)
- Interconnected computers yet decentralised, All transaction data is sotred on all computers in the block chain network
- Copy new transactions (Removes hacking risk)
- Used in Cryptocurrency, Smart Contracts, Research, Politics and Education
4
Q
How do Block Chains work
A
- Data, Hash value (Unique value/fingerprint) and Previous Hash Value
- Hash Value has timestamp of Creation and when new events take place
- Starts with Genesis
- Any change in the Chain will break it, thus making it impossible to hack
