Crypto Final

What is a STO

A security token represents an investment contract into an underlying investment asset such as equity shares, debt (ie bonds), funds and real estate investment trusts (REIT)

What is an ICO

A way to raise capital through blockchain related projects by selling cryptocurrency

Elements of the JOBS Act with regards to Reg CF (Crowdfunding):

Allows people of all income levels can invest in the securities market, Allows for both Accredited" or "unaccredited," investors, Requires issuers to use a registered funding platform or broker-dealer as mandated by the SEC and FINRA.

What are two advantages of Crowdfunding?

An alternative way of raising capital that can reach a lot of different investors & A fast and efficient way of raising capital

A cryptocurrency COIN is not__

Are created on existing blockchains like Ethereum

The private key and public keys used for cryptocurrencies are examples of ____(symmetric or asymmetric) cryptography.

Asymmetric

What did Satoshi Nakamoto write?

Bitcoin: A Peer-to-Peer Electronic Cash System

___is a general term given to decentralized financial services such as decentralized exchanges, decentralized money markets, decentralized insurance companies etc

DeFi

Uniswap is an example of a

Decentralized Exchange

What are 4 Features of AI?

Detect Change In Data Patterns and Tune the Model Itself, It Can Handle Unstructured Data, Data does not need to be stored, sorted or transformed for analytics to be created, When Data Quality Is Not Perfect It Can Create Useful Insights

What are the 5 basic principals of blockchain

Distributed Database, Peer-to-Peer Transmission, Transparency, Immutable, Computation Logic

What are the three types of Crowdfunding?

Donation, Rewards, Equity

Once a transaction is entered into the blockchain database it can be altered.

False

What are two benefits to peer-to-peer lending?

Faster access to credit/loans for consumers or businesses & Opportunity to obtain capital at a lower interest rate

Why is digital banking advantageous to new players vs traditional banks, generally?

Generally they have less expenses, they are generally more nimble.

Generally the Cost of an STO is ______ than that of an ICO?

Higher

What is not a characteristic of a crypto coin?

Income is Not Taxable

What has happened to the cost of storage over the last 50 years?

Increased Significantly

Generally trust for ICO's is ___________ than that of STO?

Lower

Name 3 issues with crypto ( btc or eth)?

Market volatility, Not good for the environment, and illegal use

Name two current banking innovations?

Neo Banking & Artificial intelligence and machine learning

An NFT is which one of the follow

Non-Fungible Token used on the blockchain with unique identification codes and metadata that distinguish them from each other.Smart Contracts not which of the following?*Programs that run the centralized bank computers

Which of the following is true of Proof of Stake

Once your stake is in place you take part in the contest of which node will get to forge the next block. You see stakers forge blocks, they don't mine them. For the forging work you will get a reward.

What is the largest growing sector of the FinTech Industry to date?

Payments

What are three key Technological Advancements that allowed FinTech to rise that we have discussed in class?

Power, Data and Connectivity

This process is what is commonly called 'mining'. It involves four separate pieces of data: a hash of the transactions on that block, the hash of the previous block, the time, and a number called the nonce. The nonce is a random number that is separate from the transactions that are set out on that block. So, a 'miner' will take these four variables and hope that the hash output will meet the necessary requirement of the number of starting zeros. That output is called the golden hash. The miner can start with a nonce of 0, then try a nonce of 1, then a nonce of 2, and so on. The more nonces that a miner can test, the more chances the miner has to find the 'golden hash' that meets the requirements and will allow him to add that block to the Bitcoin blockchain.

Proof of Work

The JOBS Act serves many purposes; however, the primary drivers were to:

Provide transparency for information that allows better decision-making when purchasing private placement issuances and increase access of capital to smaller business

Who wrote the bitcoin white paper?

Satoshi Nakamoto

Tether is blockchain-based cryptocurrency whose tokens are backed by the US dollar. Tether (USDT) is often referred to as an example of ___ coin. (stable, utility, STO, ICO or IPO)

Stable

A stablecoin is a digital currency that is pegged to a "stable" reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.

True

DeFi is early days as an evolving technology, industry with few clear rules and has had several issues over the past year.

True

Peer-to-Peer Transmission is when communication occurs directly between peers instead of through a central node, and each node stores and forwards information too all the other nodes.

True

When is an ICO a security?

When the digital asset passes the so-called "Howey test" created by the U.S. Supreme Court in 1946 to determine if it is an "investment contract" thus a security.