CBP Bitcoin Commerce and Ecosystem 3

Question 1

What is a Bitcoin ATM (BTM) and what function does it serve?

Accepted Answer

A kiosk that allows users to buy or sell Bitcoin using cash or card

Answer

Bitcoin ATMs are physical kiosks that let users purchase Bitcoin with cash (and sometimes sell Bitcoin for cash), bridging the gap between fiat and crypto.

Question 2

What is the Lightning Network's primary benefit for Bitcoin commerce?

Accepted Answer

It enables near-instant, low-fee Bitcoin micropayments off-chain

Answer

The Lightning Network creates off-chain payment channels that allow fast, cheap micropayments, making Bitcoin practical for everyday retail transactions.

Question 3

Which scenario best describes a Bitcoin escrow service?

Accepted Answer

A third party holds Bitcoin until agreed conditions between buyer and seller are met

Answer

Bitcoin escrow services hold funds in a multi-sig address until both parties fulfill contractual obligations, reducing counterparty risk.

Question 4

What does KYC (Know Your Customer) require Bitcoin businesses to do?

Accepted Answer

Verify the identity of their users to comply with anti-money laundering laws

Answer

KYC regulations require Bitcoin exchanges and businesses to collect and verify customer identity documents to prevent money laundering and fraud.

Question 5

A user wants to pay for coffee using Bitcoin without waiting for block confirmation. Which solution is most appropriate?

Accepted Answer

Lightning Network payment channel

Answer

Lightning Network payments settle instantly off-chain, making them ideal for small, time-sensitive purchases like coffee.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Bitcoin Commerce and Ecosystem 3