CBP Wallets and Key Management 2

Question 1

What is the purpose of a BIP-39 passphrase (sometimes called the '25th word')?

Accepted Answer

To add an additional layer of security that creates a completely different wallet

Answer

A BIP-39 passphrase acts as an optional extension to the seed, generating an entirely different set of keys and addresses, providing plausible deniability.

Question 2

In the context of HD wallets, what does 'hardened derivation' prevent?

Accepted Answer

Derivation of parent private keys from child public keys

Answer

Hardened derivation prevents an attacker who knows a child private key and the parent public key from deriving the parent private key.

Question 3

Which script type is associated with Pay-to-Witness-Public-Key-Hash (P2WPKH) native SegWit addresses?

Accepted Answer

Bech32

Answer

Native SegWit P2WPKH addresses use the Bech32 encoding format, identifiable by the 'bc1q' prefix on mainnet.

Question 4

What is key stretching in the context of Bitcoin wallet encryption?

Accepted Answer

Using a slow hash function to make brute-force attacks computationally expensive

Answer

Key stretching applies algorithms like PBKDF2 or bcrypt to a password, deliberately increasing computation time to deter brute-force attacks.

Question 5

A wallet exported as a WIF (Wallet Import Format) string starting with '5' indicates what?

Accepted Answer

An uncompressed private key on mainnet

Answer

WIF strings beginning with '5' represent uncompressed private keys on Bitcoin mainnet; compressed keys start with 'K' or 'L'.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Wallets and Key Management 2