Blockchain Cryptocurrency Practice Test

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Which of the following is the most common method of keeping bitcoins?

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Explanation
A cryptocurrency wallet is a hardware device, software application, or service that keeps the public and/or private keys for cryptocurrency transactions. A cryptocurrency wallet usually includes the ability to encrypt and/or sign information in addition to the fundamental function of storing keys.

Which of these US states has enacted the BitLicense cryptocurrency regulation?

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Explanation
A BitLicense is the general term for a virtual currency business license given by the New York State Department of Financial Services (NYSDFS) under company-specific restrictions. The rules apply only to activities that take place in New York or involve a New York resident.

The FBI shut down which Ross Ulbricht-run website that allowed users to buy drugs with Bitcoin?

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Explanation
The FBI's shutdown of the illicit drug website Silk Road will demonstrate Bitcoin's tenacity. News of alleged Silk Road founder Ross Ulbricht's arrest and the closure of his business sent shockwaves through the Bitcoin community around the world, briefly driving the currency's value down by as much as 30%.

What is the meaning of UTXO?

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Explanation
The unspent output from bitcoin transactions is referred to as UTXO. Each bitcoin transaction starts with coins that are used to keep the ledger balanced. UTXOs are continuously processed and are in charge of initiating and terminating each transaction. When a transaction is confirmed, spent coins are removed from the UTXO database.

What was the name of the well-known Japanese Bitcoin exchange that went bankrupt in 2014?

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Explanation
Mt. Gox was a bitcoin exchange situated in Tokyo's Shibuya area. As the world's largest bitcoin middleman and the world's leading bitcoin exchange, it handled over 70% of all bitcoin transactions worldwide by 2013 and into 2014.

What is the definition of a hash function?

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Explanation
Any function that may be used to translate data of any size to fixed-size values is referred to be a hash function. Hash values, hash codes, digests, or simply hashes are the results of a hash function. The values are typically used to index a hash table, which is a fixed-size table. Hashing or scatter storage addressing is the use of a hash function to index a hash table.

Merkle Trees were created by who?

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Explanation
Ralph Merkle is remembered by Merkle Trees a professor and computer scientist who pioneered public-key cryptography Merkle Trees themselves, as well as cryptographic hashing, In 1987, the concept was created.

What is the location of the bitcoin central server?

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Explanation
Bitcoin does not have a server. Because blockchain is distributed, there is no need for a central server.

What distinguishes blockchain as tamper-proof?

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Explanation
Blockchain is tamper-proof because to its immutability.

When did the Bitcoin Network begin?

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Explanation
The initial version of Bitcoin is announced on January 8th, 2009, and Bitcoin mining begins shortly after. Satoshi Nakamoto's anonymity was a vital virtue for both Bitcoin and its users, therefore the mystery surrounding him is appropriate.

What is a Dash Masternode and how does it work?

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Explanation
Masternodes. Dash is well known for being the first cryptocurrency to prioritize user-friendliness and transaction speed.

IPFS is an acronym that stands for

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Explanation
The InterPlanetary File System (IPFS) is a distributed file system protocol and peer-to-peer network for storing and distributing data. In a global namespace connecting all computing devices, IPFS uses content-addressing to uniquely identify each file.

True or false: Blockchain and Bitcoin are the same thing.

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Explanation
The correct answer
False

What was the name of the first academic study that described bitcoin as it is now known?

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Explanation
Abstract of the Bitcoin Whitepaper Without passing via a banking institution, a peer-to-peer version of electronic cash would allow internet payments to be transmitted directly from one party to another.

What is a LiteClient, and how does it work?

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Explanation
You can see material in the Data Discovery, Story Board, Alerts, and Publications menus using the Lite client. Expand, drill, dice, pivot, sort, filter, and other context-menu actions are available in the Lite client.

UTXO is used by Bitcoin, while Ethereum uses:

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Explanation
The Unspent Transaction Output (UTXO) system is used by Bitcoin, while the Account Based model is used by Ethereum. Both models are, at their most basic level, models for tracking database state, and each model's implementation in its respective platform serves a distinct purpose and plays a specific role in the platform's wider structure.

Who has access to a record stored on a blockchain?

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Explanation
The correct answer
Multiple people simultaneously.

Is it possible to change records that have been uploaded to a blockchain?

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Explanation
Records can't be changed once they've been posted to the blockchain, even by the record's owner, giving transactions a high level of security. The AICPA will continue to watch legislation around the country due to the disruptive power of emerging technologies.

What are sidechains, exactly?

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Explanation
The correct answer
Any mechanism that allows tokens from one blockchain to be securely used within a completely separate Blockchain

Is it possible to program a blockchain to automatically record transactions?

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Explanation
It is also possible to program the blockchain to automatically record transactions. The monetary worth of those transactions is frequently calculated in cryptocurrencies—that is, digital currencies that are not regulated by a central bank—rather than in US dollars or any other standard centralized currency.

When did the digital currency's developer produce a whitepaper introducing it?

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Explanation
Satoshi Nakamoto's white paper, which was published on October 31st, 2008, marked the beginning of Bitcoin as we know it today. The creator's identity is still unknown, despite the fact that it was written under the pseudonym Satoshi Nakamoto. Despite this, the Bitcoin white paper (pdf) is a groundbreaking work that heralds the dawn of the digital money era.

What is the common name for the process of producing new bitcoins?

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Explanation
Mining is the process by which new Bitcoins are created. In particular, each time A miner adds a block of transactions to the Bitcoin blockchain in the correct order.

Is there a limit to how many bitcoins may be created?

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Explanation
The maximum number of bitcoins that can be created is 21 Million

How often does the Bitcoin ledger need to be reconciled?

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Explanation
The correct answer
Every 10 Minutes

On the CoinDesk Bitcoin Price Index, what was the highest Bitcoin price ever?

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Explanation
The correct answer
$1,165

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