FinTech Innovation and Cryptocurrencies Exam Review

These flashcards cover key concepts from the FinTech Innovation and Cryptocurrencies lecture notes.

Cryptocurrency

A digital or virtual currency that uses cryptography for security.

Blockchain

The underlying technology of Bitcoin that ensures transparency and security of transactions.

Satoshi

The smallest unit of Bitcoin, named after its creator, worth one hundred millionth of a Bitcoin.

Genesis Block

The first block of Bitcoin, also referred to as Block 0.

Durability

A characteristic of good money that ensures it can withstand physical wear and tear.

Medium of Exchange

One of the functions of money that facilitates transactions between parties.

ASIC Miner

Application-Specific Integrated Circuit miners designed specifically for mining Bitcoin.

Mining Pool

A group of miners who combine their computational resources to increase the likelihood of earning Bitcoin.

Hardware Wallet

A physical device used to store cryptocurrency securely, disconnected from the internet when not in use.

Software Wallet

A digital wallet that allows users to store and manage their cryptocurrencies online.

Bitcoin Pizza Day

May 22nd, commemorating the first real-world purchase made using Bitcoin.

Market Capitalization

The total value of a cryptocurrency, calculated by multiplying its price by the total supply.

Private Key

A secret number that allows cryptocurrencies to be accessed and spent.

ICO

Initial Coin Offering, a fundraising method for new cryptocurrencies.

Mt. Gox

A Japan-based bitcoin exchange that was hacked in 2014, leading to the loss of several hundred million dollars.

Centralized Exchange

A platform that facilitates cryptocurrency trading and requires users to store their assets on the exchange, increasing risk.

Decentralization

The distribution of authority, control, or decision-making away from a central entity.

Halving

An event in Bitcoin mining where the reward for mining is cut in half, occurring approximately every four years.

Electricity Consumption

The energy required to run mining equipment, often criticized for the environmental impact.

Public Key

An address that can be shared to receive Bitcoin transactions, derived from the private key.