Digital Currency

Question 1

Digital Currency

Definition

Answer 1

• Digital unlike Fiat currency
• Accepted form of payment
• Transferred between various accounts when transacting
• Relies on Central Banking system

Question 2

Cryptography

Definition

Answer 2

• 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

Question 3

Blockchaining

Definition

Answer 3

• 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

Question 4

How do Block Chains work

Answer 4

• 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