Crypto flashcards (Test Questions with correct answers)

cryptocurrency correct answers A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. What are some problems with the current money system? correct answers Payment systems such as credit cards and wire transfers are outdated. In most cases, a bunch of middlemen like banks and brokers take a cut in the process, making transactions expensive and slow. Financial inequality is growing around the globe. Around 3 billion unbanked or underbanked people can't access financial services. Decentralized correct answers No central source or authority controls said thing Blockchain correct answers - A blockchain is a shared ledger where transactions are permanently recorded by appending blocks - The blockchain serves as a historical record of all transactions that ever occurred, from the genesis block to the latest block, hence the name blockchain. What is money? correct answers A medium of exchange (currency, which includes coins and paper bills) What makes money valuable? correct answers 1) Enough people must have it 2) Merchants must accept it as a form of payment 3) Society must trust that it's valuable and that it will remain valuable in the future. What were the key changes in Money? correct answers Definition of money (from bartering to defined cash, coins, credit, alternative) Trust model of money Ease of transaction. Cash makes it easier to carry sums of money from A to B. Credit was created. Alternative money (non-fiat) Fiat Currency correct answers Legal tender, especially paper currency, authorized by a government but not based on a gold standard or silver standard. Who developed the first cryptocurrency and what was it? correct answers Satoshi Nakamoto; Bitcoin What did Satoshi Nakamoto describe Bitcoin as? correct answers