1.5.7

Digital Currency

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Digital Currency

A digital currency is a recently popular form of money that exists only electronically, unlike coins or banknotes.

What is digital currency?

What is digital currency?

  • Digital currencies are money that exists electronically, without a physical form.
  • Examples include cryptocurrencies like Bitcoin, Ethereum, Central Bank Digital Currencies (CBDCs), as well as digital versions of national currencies.
  • They are used to:
    • Buy goods and services
    • Invest
    • Transfer money internationally between individuals or organisations
Features of digital currency

Features of digital currency

  • Digital currency is stored in digital wallets on computers or mobile devices.
  • Transactions take place over the internet.
  • The currency can be sent quickly across the world.
  • They are usually more secure than cash (harder to steal physically).
What is blockchain?

What is blockchain?

  • Blockchain is the technology that many digital currencies use to record transactions.
    • It is a digital ledger – a shared, public, time-stamped list of all transactions that is spread across many computers.
  • Once a transaction is recorded on the blockchain, it cannot be altered.
  • Each block of transactions is linked to the one before it → “chain”.
How blockchain works

How blockchain works

  • A user requests a transaction (e.g. sending digital currency to someone else).
  • The transaction is grouped with other recent transactions into a 'block'.
  • Computers on the network solve complex mathematical problems to verify the transaction.
  • Once the transaction is deemed legitimate, the new block is added to the end of the existing chain of blocks.
Key features of blockchain

Key features of blockchain

  • Security:
    • Every block in the chain has a unique code, making it difficult to tamper with.
    • If one block is altered, the entire chain after it is invalid.
  • Decentralisation:
    • The ledger is not stored in a place or controlled by a bank or government.
    • It is distributed across many computers, which makes it secure.
  • Immutability:
    • Once a block is added to the chain, it cannot be changed or deleted.
    • This makes the transaction history a permanent record.
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1

Computer Systems

1.1

Data Representation

1.1.1Binary Numbers1.1.2Negative Binary Numbers1.1.3Hexadecimal1.1.4Using Hexadecimal1.1.5Converting Binary & Hexadecimal1.1.6Converting Denary & Hexadecimal1.1.7Capacity1.1.8Calculating Capacity Requirements1.1.9Binary in Computer Systems1.1.10Data Compression1.1.11Run Length Encoding1.1.12File Formats
1.2

Data Transmission

1.2.1Packet Switching1.2.2Data Transmission1.2.3Universal Serial Bus (USB)1.2.4Parity Check1.2.5Checksum & Echo Checks1.2.6Encryption
1.3

Hardware

1.3.1Elements of Computer Systems1.3.2Types of Computer System1.3.3Von Neumann Architecture1.3.4The Fetch, Decode, Execute Cycle1.3.5Factors Affecting CPU Performance1.3.6Computational Logic1.3.7Input Devices1.3.82D & 3D Scanners1.3.9Code Readers1.3.10Solid State Storage1.3.11Magnetic Storage1.3.12Examples of Magnetic Storage1.3.13Optical Storage1.3.14Examples of Optical Storage1.3.15Types of Optical disk1.3.16Storage Requirements1.3.17Translation - Compilers1.3.18Translation - Interpreters1.3.19Translation - Assemblers1.3.20Acoustic Sensors1.3.21Flow Sensors1.3.22Gas Sensors1.3.23Humidity Sensors1.3.24Infrared Sensors1.3.25Level Sensors1.3.26Light Sensors1.3.27Magnetic Field Sensors1.3.28Moisture Sensors1.3.29pH Sensors1.3.30Pressure Sensors1.3.31Proximity Sensors1.3.32Temperature Sensors1.3.33Network Hardware
1.4

Software

1.4.1Operating Systems1.4.2Interrupts1.4.3High-Level Languages1.4.4Low-Level Languages
1.5

The Internet & its Uses

1.5.1The Internet1.5.2Uniform Resource Locators (URLs)1.5.3DNS1.5.4HTML1.5.5Cookies1.5.6Web Hosting1.5.7Digital Currency
1.6

Cyber Security

1.6.1Forms of Attack1.6.2Penetration Testing1.6.3Types of Malware1.6.4How Malware Spreads1.6.5Protecting Against Malware1.6.6Information Security1.6.7Structured Query Language (SQL) Injection1.6.8Firewalls1.6.9Authentication: User Access Levels1.6.10Authentication: Passwords1.6.11Social Engineering1.6.12Phishing1.6.13Denial of Service Attacks
1.7

Automated & Emerging Technologies

1.7.1Automated Systems1.7.2Robotics1.7.3Artificial Intelligence
2

Algorithms, Programming & Logic

2.1

Algorithm Design & Problem Solving

2.1.1Computational Thinking - Abstraction2.1.2Computational Thinking - Decomposition2.1.3Computational Thinking - Algorithmic Thinking2.1.4Pseudocode2.1.5Flow Diagrams2.1.6Interpreting, Correcting & Completing Algorithm2.1.7Correcting Algorithms2.1.8Completing Algorithms2.1.9Testing2.1.10Types of Testing2.1.11Test Plans2.1.12Validation & Sanitation2.1.13Authentication & Contingencies
2.2

Programming

2.2.1Programming Fundamentals - Variables & Constants2.2.2Programming Fundamentals - Comments2.2.3Programming Fundamentals - Input & Output2.2.4Data Types2.2.5Casting2.2.6Controlling Program Flow - Sequence2.2.7Controlling Program Flow - Selection2.2.8Controlling Program Flow - Iteration2.2.9Modularity - Subroutines2.2.10Modularity - Scope2.2.11Arrays
2.3

Databases

2.3.1Structuring Data - Records2.3.2Structuring Data - Databases2.3.3SQL
2.4

Boolean Logic

2.4.1Binary Systems2.4.2Logic Circuits2.4.3Truth Tables2.4.4Evaluating Expressions2.4.5Boolean Operators2.4.6End of Topic Test - Logic

Practice questions on Digital Currency

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    What is the key characteristic of a digital currency?Multiple choice
  2. 2
    Which of the following is an example of a digital currency?Multiple choice
  3. 3
    Features of blockchain:Fill in the list
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