cryptography

Artificial intelligence (AI) refers to computer-based systems capable of performing functions that typically require human intelligence, such as recognizing patterns, adapting from experience, or making decisions.

A blockchain is a cryptographically secured ledger. According to the United States District Court Southern District of New York in SEC v. Binance Holdings Limited, a blockchain uses cryptographically secured technologies to ensure the security of the recording and validating of cryptocurrency transactions.

• CRYPTOCURRENCY

Computer and internet fraud entails the criminal use of a computer or the Internet and can take many different forms. While some argue that “hacking” is a neutral term (see United States v.

• COMPUTER AND INTERNET FRAUD
• fraud
• Internet Law
• internet
• TECHNOLOGY

In the context of blockchains, a consensus mechanism refers to the standard that governs the manner of adding, changing, or deleting information to or from a blockchain that is agreed upon by all its members. When there is a consensus in a blockchain, there will be a newly created block attached to the existing chain. All participants of the blockchain will receive an update regarding the new block. With a consensus mechanism, a blockchain offers transparency and security.

Convertible virtual currency (CVC) is a category of virtual currency. One subcategory of CVC is cryptocurrency. The key lies in its convertibility. Both the IRS and FinCEN have defined CVC in two dimensions: 

• CRYPTOCURRENCY

Federal courts and federal governmental agencies hold the view that cryptocurrency is a subcategory of virtual currency. Yet, there is no single definition of virtual currency or cryptocurrency at this time. In fact, the term cryptocurrency may be used interchangeably with other similar terms, such as digital currency, cryptoasset, or digital asset.

• CRYPTOCURRENCY

A directed acyclic graph (DAG) is a chainless model of distributed ledger technology (DLT), that exists in parallel to a chain-based model, such as blockchain. Yet, directed acyclic graphs are not as widely used as blockchains in the cryptocurrency industry.

• CRYPTOCURRENCY

The definition of distributed ledger technology (DLT) appears in federal legislation, such as 42 U.S.C. § 19222, in state legislation, such as in Arkansas and Tennessee, as well as in reports published by the U.S.

• CRYPTOCURRENCY

Under the Electronic Signatures in Global and National Commerce (ESIGN) Act, specifically 15 U.S.C.

Non-fungible tokens (NFTs) are unique units of data stored on blockchains that represent physical assets. 

The key to understanding the term non-fungible token (NFT) is twofold: tokens and their non-fungibility.