Practice Test Geeks(CBP) Certified Bitcoin Professional Practice Test
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Bitcoin Transactions and Wallets 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 Transactions and Wallets flashcards as text

  1. What is the significance of the 'witness discount' introduced by SegWit?

    Answer: Witness data is counted at one-quarter the weight of non-witness data, reducing the effective size of SegWit transactions

    SegWit introduced block weight (replacing byte size), with witness data counted at 1 weight unit per byte versus 4 for non-witness data, making SegWit transactions cheaper.

  2. In a hierarchical deterministic (HD) wallet following BIP32, what is the 'master private key'?

    Answer: The root key derived from the seed from which all child keys are derived

    The BIP32 master private key is derived from the wallet seed and serves as the root of a tree from which all child and grandchild keys are deterministically generated.

  3. What is a 'partially signed Bitcoin transaction' (PSBT, BIP174)?

    Answer: A standard format for passing transaction data between multiple signers or devices before final broadcast

    PSBT (BIP174) defines a portable transaction format that allows wallets, hardware devices, and co-signers to collaboratively add signatures without sharing private keys.

  4. Which of the following best describes 'transaction malleability' and how SegWit addressed it?

    Answer: Third parties could alter a transaction's signature data to change its TXID without invalidating it; SegWit fixed this by moving signatures out of the hashed portion

    Malleability allowed signature data changes that altered the TXID; SegWit resolved this by placing signatures in a separate witness structure excluded from the TXID hash.

  5. What does 'dust' refer to in Bitcoin?

    Answer: Very small UTXOs whose value is less than the cost to spend them in fees

    Dust UTXOs are so small that the fee required to spend them exceeds their value, making them economically unspendable.

  6. In the context of Bitcoin wallets, what is 'key derivation path' m/44'/0'/0'/0/0?

    Answer: A BIP44 hierarchical path specifying purpose, coin type, account, change, and address index for deterministic key generation

    BIP44 defines the path m/purpose'/coin_type'/account'/change/index to organize addresses within an HD wallet, with m/44'/0'/0'/0/0 yielding the first external Bitcoin address.

  7. What is a 'time-locked' Bitcoin transaction and a common use case?

    Answer: A transaction that cannot be spent until a specified future block height or timestamp, commonly used for inheritance or escrow arrangements

    Time-locked transactions use CLTV (CheckLockTimeVerify) or nLockTime to enforce a spending delay, enabling use cases like inheritance vaults, payment channels, and escrow.