Digital Currency

• What is digital currency?


  Digital currency is a currency that only exists electronically and is stored in digital wallets or accounts, with no physical bank notes or coins.
• What is another term for digital currency?


  Digital currency can also be known as cryptocurrency.
• What makes digital currencies highly volatile?


  Digital currencies are highly volatile because they are not controlled or monitored by central banks or government, causing their value to fluctuate rapidly in a short period of time.
• Name two examples of digital currencies.


  Two examples of digital currencies are Bitcoin and Ethereum.
• What is a blockchain?


  A blockchain is a digital ledger that records every transaction made with a particular digital currency.
• What is the structure of a blockchain?


  A blockchain is made up of "blocks" of transactions that are linked together in a "chain" using cryptographic algorithms.
• How are transactions in a blockchain verified?


  Each transaction in the blockchain must beverified by multiple participants in the network.
• What is the purpose of blockchain verification?


  The verification process ensures that transactions are legitimate and prevents fraudulent activity.