← IGCSE Computer Science Paper 1

Writing exam answers about digital currency and blockchain

A full-mark answer uses digital currency, ledger, time-stamp and blockchain correctly, and links each point to a reason, using linking words such as because or so that.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 25

Understanding Writing exam answers about digital currency and blockchain in IGCSE Computer Science Paper 1

What it does: The sentence uses the key terms in the right order to show how a transaction is tracked. The linking words because and so give reasons, which is what turns a simple statement into a full-mark answer. Digital currency is money that exists only electronically. It has no coins or notes, and it is not a website or a payment card. Syllabus wording: a blockchain is a digital ledger of transactions. The records are stored in blocks joined in a chain. Trust comes from records that cannot be altered. Copies are also shared across many computers, not kept on just one.

Common mistakes: Digital currency has no physical form. It exists only as data, so line 2 should say 'that exists only as data.'. A ledger records transactions, not usernames and ages. Line 2 should say 'all the transactions made.'.

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This module's key terms are also in a printable crossword (Modules 520–546) and word search (Modules 510–546).

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Learning
Duo
Which is the better one-sentence definition of digital currency for an exam answer?
Money that exists only in electronic form and is used to pay for goods and services onlineA website where people buy and sell things using a credit card
Matches
Blockchain is a type of digital currency, like Bitcoin.
↓
Blockchain and digital currency are not the same thing. Blockchain is the ledger technology that records the transactions, while digital currency is the money.
Applying
Meanings
Term
key terms and reasons
Meaning
A full-mark answer uses digital currency, ledger, time-stamp and blockchain correctly, and links each point to a reason, using linking words such as because or so that.
Practice
Digital currency is money that only exists in electronic form.
Testing
Gaps
exists only in form.
Check Answer
Spots
1Digital currency is money
2that is printed on paper.

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Quick Questions

1. Which is the better one-sentence definition of digital currency for an exam answer?
A. Money that exists only in electronic form and is used to pay for goods and services online ✓
B. A website where people buy and sell things using a credit card
Digital currency is money that exists only electronically. It has no coins or notes, and it is not a website or a payment card.
2. Which statement about blockchain and digital currency would earn the mark?
A. Blockchain and digital currency are the same thing, so either term can be used
B. Blockchain is the technology that records digital currency transactions; it is not the currency itself ✓
A common mistake is to treat the two as identical. The currency is the money, and the blockchain is the ledger that records its transactions.
3. Which answer uses the syllabus wording for blockchain?
A. A digital ledger of transactions that is made of blocks linked together in a chain ✓
B. A type of coin that is stored inside a digital wallet on a phone
Syllabus wording: a blockchain is a digital ledger of transactions. The records are stored in blocks joined in a chain.
4. Which answer links the point to a reason, as a full-mark answer should?
A. Each block has a time-stamp
B. Each block has a time-stamp, so the order of transactions can be checked ✓
Linking words such as 'so' or 'because' turn a bare fact into a reason. That is what earns the extra mark.
5. Which statement correctly explains how a blockchain tracks transactions?
A. Each transaction is recorded in a block with a time-stamp, and the block is added to the chain ✓
B. Each transaction is deleted once it is complete, so that the chain stays small
The blockchain keeps a permanent record. Transactions are stored in blocks, time-stamped, and joined to the chain.

Match the Pairs

Digital currency is money that only exists electronically. → A one-sentence definition of digital currency that would earn the mark in an exam answer.
A blockchain is a digital ledger made of linked blocks of transactions. → Describing blockchain using the syllabus wording: a digital ledger of blocks joined in a chain.
Explaining how blockchain tracks a transaction, using ledger, time-stamp and blockchain correctly → Each transaction is recorded with a time-stamp in a block, and the block is added to the blockchain ledger.
Linking a point to a reason with a linking word → Records cannot be altered because each block is linked to the one before it, so cheating is easy to spot.
Blockchain is a type of digital currency, like Bitcoin. → Blockchain and digital currency are not the same thing. Blockchain is the ledger technology that records the transactions, while digital currency is the money.
A ledger stores transactions on the blockchain. → The answer gives a fact without a reason and has no time-stamp. It does not say why the record matters or how it is tracked.

Key Term

key terms and reasons
A full-mark answer uses digital currency, ledger, time-stamp and blockchain correctly, and links each point to a reason, using linking words such as because or so that.

Fill in the Blanks

1. Digital currency is money that exists only in electronic form.
Hint: Type the word describing the form digital currency exists in, as opposed to physical coins and notes.
2. A blockchain is a digital ledger made up of blocks joined together in a chain.
Hint: Type the term for a record of transactions, which the syllabus uses to describe a blockchain.
3. Each record has a time-stamp so that the order of transactions can be checked.
Hint: Type the term for the date and time recorded with each transaction.
4. Records cannot be altered because each block is linked to the previous block.
Hint: Type the linking word that introduces a reason in a full-mark answer.
5. Blockchain is the ledger that records transactions; the currency is the money.
Hint: Type the word for the money itself, which is not the same thing as the blockchain.

Spot the Error

Question 1
A Digital currency is money
B that is printed on paper.
C It is stored in a wallet.
Line B — Digital currency has no physical form. It exists only as data, so line 2 should say 'that exists only as data.'
Question 2
A A ledger is a record of
B all the usernames and ages.
C Each entry has a time-stamp.
Line B — A ledger records transactions, not usernames and ages. Line 2 should say 'all the transactions made.'
Question 3
A A time-stamp shows when
B a transaction happened,
C so the price can be changed.
Line C — A time-stamp records the date and time, so the order of transactions can be checked. It does not let anyone change the price.
Question 4
A A blockchain is a digital
B ledger. Transactions are
C grouped into blocks and the
D blocks are stored on one PC.
Line D — In a blockchain the blocks are joined in a chain, and copies are shared across many computers. They are not stored on one PC. Line 4 should say 'blocks are joined in a chain.'
Question 5
A Blockchain is the currency
B that records transactions
C of a digital currency.
Line A — A common mistake is saying that blockchain and a digital currency are the same thing. Blockchain is the digital ledger that records the transactions, not the currency itself.

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