Unit 9

• What is digital currency?


  Any means of payment that exists purely in electronic form
• What are some advantages of digital currency?

  ...

  • Peer-to-peer transactions
  • Instantaneous and low cost
  • Higher level of record keeping and transparency to the sector
  • 24/7 access
  • Efficient
• What is cryptocurrency?

  A digital form of currency that uses cryptography for security and operates independently of a central authority (bank or government). It is decentralized and allows secure peer-to-peer transactions
• Advantages of crypto?

  ...

  • Inflation protection
  • Fast transaction speeds
  • Safe and secure
  • Decentralized
  • Simple to access
• Disadvantages of crypto?

  ...

  • Attract tax evaders
  • Facilitates black market activity
  • Prices are very volatile
  • Environmental damages from cryptocurrency mining
• Digital currency v.s Cryptocurrency?

  Digital currency:

  • Centralized location for transactions
  • Confidential transactions
  • Central authority to deal with issues

  Cryptocurrency:

  • Decentralized location for transactions
  • Transparent transactions
  • Governed by the respective communities
• What is blockchain?

  It is a decentralized digital ledge that records transactions across a network of computers. Each transaction is stored in a "block" that are linked together in a chronological and immutable chain, which provides a secure and transparent way of recording and verifying data

  A cryptocurrency transaction is not finalized until it's added to the blockchain. Once added, it is usually irreversible

  Peer-to-peer
• What is bitcoin?

  A decentralized form of digital currency. It is scarce, unable to be duplicated, and portable
• What are miners?

  They serve as record-keepers for cryptocurrency communities and indirect arbiters of the currency's value