What is digital currency?
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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.
True or False?
Digital currency is controlled and monitored by central banks or government.
False.
Digital currency is not controlled or monitored by central banks or government (it is decentralised)
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.
True or False?
Transactions in a blockchain can be altered after they are added.
False.
Transactions are added to the blockchain in a permanent and unalterable way.
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 be verified 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.