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.
What is an “Initial Coin Offering”?
An unregulated process whereby companies raise capital by selling crypto-tokens to investors in exchange for fiat money or another agreed-upon cryptocurrency.
What are “Utility Tokens”?
Tokens that provide services within a network, such as paying for services and network fees.
What are “Governance Tokens”?
In permissionless networks, governance tokens serve as votes to determine how the particular network is ran.
What is an “Altcoin”
A cryptocurrency other than bitcoin.
What is “Ether”?
A programmable cryptocurrency created on the Ethereum blockchain in 2015; allows for execution of smart contracts.
What is a “Stablecoin”?
A cryptocurrency that aims to maintain a stable value relative to a specified asset or to a pool of basket of assets.
What is an asset-backed token?
A token that represents the ownership of a physical asset that does not exist on the blockchain and whose value is based on the underlying asset.
What is a “Meme Coin”?
A type of altcoin that is often inspired by a joke.
What is a “Cryptocurrency Wallet”?
A storage unit for public and/or private keys for cryptocurrency transactions.
These wallets may be a physical device, program, or service.
