What is digital currency and how does it work?
Order ID |
53563633773 |
Type |
Essay |
Writer Level |
Masters |
Style |
APA |
Sources/References |
4 |
Perfect Number of Pages to Order |
5-10 Pages |
Description/Paper Instructions
What is digital currency and how does it work?
Digital currency, also known as digital money or cryptocurrency, refers to a digital or virtual form of currency that operates independently of a central bank. Unlike traditional currencies, digital currencies are decentralized and use cryptography to secure transactions and control the creation of new units.
The most well-known digital currency is Bitcoin, which was created in 2009. Since then, hundreds of other digital currencies have emerged, each with their own unique features and characteristics.
How Digital Currency Works
Digital currencies operate on a decentralized network, which means there is no central authority or intermediaries involved in the process of exchanging or verifying transactions. Instead, transactions are recorded on a public ledger called a blockchain, which is maintained by a network of computers around the world.
When a user wants to make a transaction, they broadcast it to the network. Network nodes, called “miners,” then compete to solve a cryptographic puzzle in order to validate the transaction. The first miner to solve the puzzle adds the transaction to the blockchain, and the transaction is confirmed.
The process of adding transactions to the blockchain is known as “mining.” Miners are incentivized to participate in the network through the creation of new units of the digital currency, which are generated as a reward for solving the cryptographic puzzle. This helps ensure that there is a sufficient number of miners to maintain the network and validate transactions.
Advantages of Digital Currency
There are several advantages to using digital currency, including:
Decentralization: Unlike traditional currencies, which are controlled by a central authority, digital currencies are decentralized and operate independently of government or financial institutions. This makes it less susceptible to interference or manipulation.
Security: Digital currencies use cryptography to secure transactions and control the creation of new units. This makes it difficult for unauthorized users to access or manipulate the system.
Speed and efficiency: Transactions on a digital currency network can be processed quickly and efficiently, as there are no intermediaries involved. This makes it possible to send and receive payments anywhere in the world almost instantly.
Lower costs: Transactions on a digital currency network typically have lower fees compared to traditional financial transactions, as there are no intermediaries involved.
Disadvantages of Digital Currency
While digital currencies offer many benefits, they also have some disadvantages, including:
Volatility: The value of digital currencies can be extremely volatile, and the price can fluctuate rapidly. This makes them a risky investment.
Lack of widespread acceptance: Digital currencies are not yet widely accepted as a form of payment, and it may be difficult to use them in everyday transactions.
Lack of regulation: Because digital currencies operate independently of government or financial institutions, they are not subject to the same level of regulation as traditional currencies. This can make them more susceptible to fraud or other forms of abuse.
Technical complexity: Digital currencies can be difficult to understand for the average person, and the technology behind them can be complex and challenging to use.
Conclusion
Digital currency is a new and rapidly evolving technology that has the potential to change the way we think about money. While it is not yet widely accepted as a form of payment, it offers many benefits, including decentralization, security, speed, and efficiency. However, it is important to understand the risks associated with digital currency, as well as the challenges it faces in terms of widespread adoption and regulation.
RUBRIC
QUALITY OF RESPONSE |
NO RESPONSE |
POOR / UNSATISFACTORY |
SATISFACTORY |
GOOD |
EXCELLENT |
Content (worth a maximum of 50% of the total points) |
Zero points: Student failed to submit the final paper. |
20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. |
30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. |
40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. |
50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. |
Use of Sources (worth a maximum of 20% of the total points). |
Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. |
5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. |
10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. |
15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. |
20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. |
Grammar (worth maximum of 20% of total points) |
Zero points: Student failed to submit the final paper. |
5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors |
10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors |
15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. |
20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. |
Structure of the Paper (worth 10% of total points) |
Zero points: Student failed to submit the final paper. |
3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. |
5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper |
7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. |
10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. |
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