Podcast
Questions and Answers
What is a key feature of Bitcoin as a digital currency?
What is a key feature of Bitcoin as a digital currency?
What primary function does Ripple serve in the cryptocurrency market?
What primary function does Ripple serve in the cryptocurrency market?
Which blockchain platform focuses on financial inclusion and low-cost money transfers?
Which blockchain platform focuses on financial inclusion and low-cost money transfers?
Which cryptocurrency emphasizes sustainability and research-driven development?
Which cryptocurrency emphasizes sustainability and research-driven development?
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What distinguishes Dogecoin from other cryptocurrencies?
What distinguishes Dogecoin from other cryptocurrencies?
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What is the primary function of the blockchain in cryptocurrency transactions?
What is the primary function of the blockchain in cryptocurrency transactions?
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Which type of cryptocurrency is governed by a single entity?
Which type of cryptocurrency is governed by a single entity?
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In decentralized cryptocurrencies, how are decisions typically made?
In decentralized cryptocurrencies, how are decisions typically made?
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What does Ethereum primarily enable the creation of?
What does Ethereum primarily enable the creation of?
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What must exchanges do in relation to financial transparency?
What must exchanges do in relation to financial transparency?
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Which of the following is a characteristic of decentralized cryptocurrencies?
Which of the following is a characteristic of decentralized cryptocurrencies?
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What advantage do smart contracts provide on the Ethereum platform?
What advantage do smart contracts provide on the Ethereum platform?
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Which of the following is NOT one of the top-rated digital currencies listed?
Which of the following is NOT one of the top-rated digital currencies listed?
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What is the primary role of cryptography in virtual currencies?
What is the primary role of cryptography in virtual currencies?
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What differentiates fiat money from e-money?
What differentiates fiat money from e-money?
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Which of the following best describes the purpose of Know Your Customer (KYC) compliance in exchanges?
Which of the following best describes the purpose of Know Your Customer (KYC) compliance in exchanges?
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What requirements must virtual currency exchanges meet according to the Bangko Sentral ng Pilipinas?
What requirements must virtual currency exchanges meet according to the Bangko Sentral ng Pilipinas?
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What does anti-money laundering (AML) compliance focus on in virtual currency exchanges?
What does anti-money laundering (AML) compliance focus on in virtual currency exchanges?
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Which of the following is an example of e-money?
Which of the following is an example of e-money?
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What is one benefit of implementing robust security measures in exchanges?
What is one benefit of implementing robust security measures in exchanges?
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In what way does cryptography ensure data integrity in transactions?
In what way does cryptography ensure data integrity in transactions?
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Study Notes
Cryptography and Virtual Currency
- Cryptography secures virtual currency transactions and protects data through encoding algorithms.
- Information is rendered unintelligible without a decryption key, ensuring transaction integrity and privacy.
Fiat Money vs. E-Money
- Fiat Money: Government-issued currency (e.g., US dollar, Euro, Japanese Yen) that is not commodity-backed, deriving value from government trust and guarantee.
- E-Money: Digital currency stored electronically, representing value for digital transactions, such as PayPal, Venmo, and Apple Pay.
Virtual Currency Exchanges in the Philippines
- A rise in virtual currency exchange popularity, offering services like spot trading, margin trading, and derivatives trading.
- Regulated by the Bangko Sentral ng Pilipinas (BSP) which sets licensing, anti-money laundering (AML), and security guidelines.
Anti-Money Laundering and Compliance
- Exchanges must implement strict AML and Know Your Customer (KYC) procedures to combat money laundering and financing terrorism.
- Maintenance of secure systems is essential to protect customer data and prevent unauthorized access.
Financial Transparency and Consumer Protection
- Transparent financial records are mandated, requiring exchanges to submit regular reports to BSP for oversight.
- Consumer protection regulations ensure fair trading practices are followed by exchanges.
Blockchain Technology
- A distributed ledger that securely and transparently records transactions.
- Each block is linked to the previous one, creating a tamper-resistant chain of data.
How Cryptocurrencies Work
- Transactions occur through peer-to-peer networks on the blockchain, facilitated by validated transactions added to the ledger.
Centralized vs. Decentralized Cryptocurrencies
- Centralized Cryptocurrencies: Managed by a single entity that controls the currency’s supply and distribution.
- Decentralized Cryptocurrencies: Governed collectively by network users through consensus mechanisms, often defined by algorithms.
Top 6 Digital Currencies
- Ethereum (ETH): Decentralized platform for creating smart contracts and dApps, allowing for secure, transparent code execution.
- Bitcoin (BTC): The first widely recognized cryptocurrency enabling peer-to-peer transactions on a blockchain network.
- Ripple (XRP): Facilitates fast, low-cost international transactions using a consensus mechanism for speed and security.
- Stellar (XLM): Aimed at financial inclusion, enabling low-cost cross-border money transfers for individuals and businesses.
- Cardano (ADA): Emphasizes sustainability with proof-of-stake technology, focusing on scalability, security, and energy efficiency.
- Dogecoin (DOGE): Initially a meme, it has developed a strong community and gained popularity despite its playful beginnings.
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Description
This quiz explores the critical role of cryptography in virtual currencies, highlighting how it secures transactions and protects sensitive data. It contrasts fiat money with e-money, diving into their distinct characteristics and implications in the digital economy.