Digital Currency and Blockchain Technology
Expert-defined terms from the Advanced Certificate in Financial Crimes in Banking and Finance Law course at LearnUNI. Free to read, free to share, paired with a globally recognised certification pathway.
Digital Currency #
Digital Currency
Digital currency is a type of currency available only in digital or electronic f… #
It is also known as electronic money or digital money and is used for transactions conducted online. Digital currencies operate independently of a central bank and are decentralized, utilizing cryptography for security. They are stored in digital wallets and can be transferred electronically.
- Cryptocurrency: A type of digital currency that uses cryptography for security… #
- Cryptocurrency: A type of digital currency that uses cryptography for security and operates on a decentralized network.
- Central Bank Digital Currency (CBDC): Digital currencies issued by central ban… #
- Central Bank Digital Currency (CBDC): Digital currencies issued by central banks as a digital form of fiat currency.
- Stablecoin: A type of cryptocurrency designed to have a stable value by peggin… #
- Stablecoin: A type of cryptocurrency designed to have a stable value by pegging it to a reserve asset like a fiat currency or commodity.
- E-Wallet: A digital wallet that allows users to store, send, and receive digit… #
- E-Wallet: A digital wallet that allows users to store, send, and receive digital currencies.
Example: #
Example:
Bitcoin is a popular digital currency that was created in 2009 and is used for o… #
Bitcoin is a popular digital currency that was created in 2009 and is used for online transactions without the need for intermediaries like banks.
Challenges: #
Challenges:
One of the challenges of digital currencies is their volatility, as their value… #
One of the challenges of digital currencies is their volatility, as their value can fluctuate significantly in a short period of time.
Blockchain Technology #
Blockchain Technology
Blockchain technology is a decentralized and distributed ledger that records tra… #
Each block in the chain contains a list of transactions, and once a block is completed, it is added to the chain in chronological order. Blockchain technology is secure, transparent, and immutable, making it ideal for recording transactions in a tamper-proof manner.
- Cryptocurrency: Digital currencies that operate on blockchain technology #
- Cryptocurrency: Digital currencies that operate on blockchain technology.
- Smart Contracts: Self-executing contracts with the terms of the agreement betw… #
- Smart Contracts: Self-executing contracts with the terms of the agreement between buyer and seller directly written into code.
- Decentralized Ledger Technology (DLT): A broader term that includes blockchain… #
- Decentralized Ledger Technology (DLT): A broader term that includes blockchain technology and other distributed ledger technologies.
- Consensus Mechanism: A protocol used to achieve agreement on a single data val… #
- Consensus Mechanism: A protocol used to achieve agreement on a single data value among distributed processes or systems.
Example: #
Example:
Blockchain technology is used in the supply chain industry to track the movement… #
Blockchain technology is used in the supply chain industry to track the movement of goods from the manufacturer to the consumer in a transparent and secure manner.
Challenges: #
Challenges:
Scalability, energy consumption, and regulatory concerns are some of the challen… #
Scalability, energy consumption, and regulatory concerns are some of the challenges facing blockchain technology as it continues to evolve and expand into various industries.