Computer Science : S5 : L4 : Digital Currencies

Digital Currency

Any currency recorded and transferred on computers, used for payments without physical cash movement.

Cryptocurrency

Decentralized digital currency using cryptography for transactions, not widely accepted but gaining popularity.

Central Banking System

System where digital currencies rely on money transfer through central banks, posing risks of interception and security.

Blockchain

Digital ledger ensuring security in cryptocurrency transactions, each block containing numerous transactions with unique hash values.

Mining

Process of creating and adding new blocks to the blockchain, making transactions irreversible once added.

Distributed Ledger

Every person on the network receives a copy of the blockchain, ensuring data integrity and trustworthiness through verification.