Blockchain Basics
What is another ticker for Bitcoin other than BTC?
What is XBT?
This type of transaction occurs when you tap your phone or card on a payment terminal.
What is contactless payment (NFC)?
These rules require financial companies to verify the identity of their users.
What are KYC requirements?
FinTech uses this new trendy software technique to detect abnormal transaction patterns.
What is machine learning?
Apps like Chime or SoFi fall under this category of bank-like digital financial companies.
What are neobanks?
The process of grouping transactions into an immutable record, validated by nodes.
What is mining?
This two-word system built by banks moves money between U.S. accounts instantly as of 2023.
What is Fed Now?
This act, passed in 1970, helps detect money laundering and suspicious activity.
What is the Bank Secrecy Act?
This term describes using software instead of humans to perform repetitive back-office tasks like KYC verification.
What is Agentic AI/RPA (robotic process automation)??
Robo-advisors commonly use this Nobel Prize–winning portfolio theory.
What is Modern Portfolio Theory (MPT)?
This mechanism determines how participants reach agreement on the blockchain’s state.
What is a consensus algorithm?
These codes provide a unique identifier for bank accounts internationally.
What are IBANs?
Europe’s PSD2 legislation requires banks to give payment access to authorized third-party apps.
What is open banking?
These digital agreements are stored on blockchains and can represent ownership of assets or rights.
What are NFTs?
A robo-advisor adjusting your holdings automatically to keep your allocation consistent is doing this.
What is rebalancing?
Ethereum introduced this type of self-executing code with conditions written directly into lines of software.
What is a smart contract?
Digital wallets use this cryptographic obscuring method to protect your actual card number during transactions.
What is tokenization?
This 4-letter agency oversees U.S. consumer financial products including credit and loans.
What is the CFPB?
This technology allows multiple parties to share data without revealing the underlying information, used for secure analytics.
What is homomorphic encryption?
This tax strategy used by robo-advisors sells losing investments to offset gains.
What is tax-loss harvesting?
This blockchain challenge describes keeping transaction throughput high without sacrificing decentralization or security.
What is the blockchain trilemma?
This U.S. act governs electronic signatures and online transaction validity.
What is the ESIGN Act?
Crypto exchanges must issue this tax form in the U.S. documenting user transactions.
What is Form 1099?
Quantum computing threatens this cryptographic method used in most online banking today.
What is RSA (or asymmetric encryption)?
Fractional shares are enabled by this practice of splitting large institutional orders into smaller chunks.
What is order slicing?