Practice Test Geeks(CBP) Certified Bitcoin Professional Practice Test
← All CBP Flashcard Decks

Wallets and Key Management 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 Wallets and Key Management flashcards as text

  1. What does a Bitcoin watch-only wallet contain?

    Answer: Public keys or addresses but no private keys

    A watch-only wallet holds public keys or addresses, allowing monitoring of balances and transactions without the ability to sign and spend.

  2. In a 2-of-3 multisig wallet, what is the minimum number of signatories needed to broadcast a transaction?

    Answer: 2

    A 2-of-3 multisig requires exactly 2 of the 3 private keys to sign a transaction before it can be valid and broadcast.

  3. What is the function of the chain code in BIP-32 HD key derivation?

    Answer: It serves as additional entropy to prevent key derivation from the parent key alone

    The chain code is combined with the parent key in the HMAC-SHA512 function, ensuring child keys cannot be derived from the parent key alone.

  4. When backing up a BIP-39 mnemonic phrase, which practice is considered most secure?

    Answer: Writing it on a steel plate and storing offline in multiple secure locations

    Metal backups stored offline in separate secure locations resist fire, water, and physical theft while avoiding digital exposure.

  5. What is a 'brain wallet' and what is its primary security weakness?

    Answer: A wallet derived from a memorized passphrase; weakness is low entropy from human-chosen phrases

    Brain wallets derive keys from passphrases that humans choose, which have far less entropy than cryptographically random seeds and are vulnerable to dictionary attacks.

  6. What does the derivation path m/44'/0'/0'/0/0 represent according to BIP-44?

    Answer: The first external receiving address of the first Bitcoin account

    In BIP-44, m/purpose'/coin'/account'/change/index — path m/44'/0'/0'/0/0 is the first external (receiving) address of the first Bitcoin account.

  7. Which encoding format is used for extended public keys (xpub) and extended private keys (xprv) in BIP-32?

    Answer: Base58Check encoding

    Extended keys use Base58Check encoding, which includes a checksum and avoids ambiguous characters, producing the familiar 'xpub' and 'xprv' prefixes.