Essential Concepts: Money, Cryptography, Blockchain, AI, Fintech, Web3
Classified in Economy
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Money and Monetary System
- Money: An asset that serves three functions: medium of exchange, store of value, and unit of account.
- Fiat Currency: Money issued by a government with no physical backing (e.g., euro, dollar).
- Fiduciary Currency: Money based on trust, not intrinsic value (e.g., Bitcoin, checks).
- Ledger: An accounting record showing debts and transactions.
- Unit of Account: Allows expressing the price of goods/services (e.g., a coffee costs €2).
Cryptography
- Hash: A mathematical function that converts data into a unique and irreversible digital fingerprint.
- Asymmetric Cryptography: Uses a pair of keys (public and private) to encrypt and decrypt messages.
- Digital Signature: Proves that a message was sent by a specific user and has not been modified.