Practice Test Geeks(CBP) Certified Bitcoin Professional Practice Test
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Bitcoin Commerce and Ecosystem Flashcards

7 cards from real CBP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Bitcoin Commerce and Ecosystem flashcards as text

  1. What is a Bitcoin merchant API typically used for?

    Answer: To programmatically create invoices, detect payments, and manage Bitcoin transactions in a business application

    Bitcoin merchant APIs allow developers to integrate Bitcoin payment acceptance into websites and apps, automating invoice generation and payment detection.

  2. What is the difference between a custodial and non-custodial Bitcoin wallet?

    Answer: Custodial wallets are held by a third party who controls keys; non-custodial gives users full key control

    In custodial wallets, a third party holds private keys (like an exchange), while non-custodial wallets give users direct control over their own keys.

  3. How does Bitcoin's pseudonymity affect commercial transactions?

    Answer: Transactions are linked to addresses, not real names, but can be analyzed on the public blockchain

    Bitcoin uses pseudonymous addresses on a public ledger, meaning transactions are traceable through blockchain analysis even without knowing the owner's name.

  4. What is a multi-signature (multisig) wallet and how does it benefit businesses?

    Answer: A wallet requiring signatures from multiple parties before funds can be spent, improving security and shared governance

    Multisig wallets require M-of-N key holders to approve transactions, preventing single points of failure and enabling organizational controls over Bitcoin funds.

  5. What is Bitcoin's role as 'digital gold' in the broader financial ecosystem?

    Answer: Bitcoin serves as a scarce, non-sovereign store of value similar to gold's role in traditional finance

    Bitcoin is often compared to gold due to its limited supply, durability, and non-sovereign nature, positioning it as a digital store of value in portfolios.

  6. When a Bitcoin transaction is stuck in the mempool due to low fees, what can the sender do?

    Answer: Use Replace-By-Fee (RBF) or Child-Pays-For-Parent (CPFP) to accelerate confirmation

    RBF allows replacing a stuck transaction with a higher-fee version, while CPFP creates a child transaction with high fees to incentivize miners to confirm the parent.

  7. What is the primary purpose of SegWit (Segregated Witness) for Bitcoin commerce?

    Answer: To separate signature data from transaction data, reducing transaction size and fees

    SegWit removes signature data from the transaction block space calculation, effectively increasing throughput and reducing fees for commerce.