CCE Cryptocurrency Core Concepts 2

Question 1

What is the primary purpose of a cryptographic hash function in blockchain?

Accepted Answer

Produce a fixed-size digest from arbitrary input data

Answer

Encrypt user private keys

Answer

Generate new cryptocurrency tokens

Answer

Compress transaction data for storage

Question 2

Which property ensures that a hash function output cannot be reversed to reveal the original input?

Accepted Answer

Pre-image resistance

Answer

Collision resistance

Answer

Avalanche effect

Answer

Determinism

Question 3

In a UTXO-based blockchain like Bitcoin, what does UTXO stand for?

Accepted Answer

Unspent Transaction Output

Answer

Unified Token Exchange Output

Answer

Universal Transfer Exchange Operation

Answer

Unverified Token Exchange Order

Question 4

What role does the Merkle root play in a Bitcoin block header?

Accepted Answer

It provides a single hash summarizing all transactions in the block

Answer

It stores miner identity

Answer

It records the current network difficulty

Answer

It links to the previous block's address

Question 5

What is a soft fork in the context of blockchain protocol upgrades?

Accepted Answer

A backward-compatible upgrade where old nodes still accept new blocks

Answer

A backward-incompatible change requiring all nodes to upgrade

Answer

A complete replacement of the blockchain with a new chain

Answer

A temporary suspension of block production

Question 6

Which consensus mechanism requires validators to lock up cryptocurrency as collateral to participate in block creation?

Accepted Answer

Proof of Stake

Answer

Proof of Work

Answer

Delegated Proof of Authority

Answer

Proof of Burn

Question 7

What is the significance of the 'genesis block' in a blockchain?

Accepted Answer

It is the first block hard-coded into a blockchain with no predecessor

Answer

It contains the highest-value transaction ever recorded

Answer

It is the block that resets the blockchain after a hard fork

Answer

It stores all wallet addresses created at network launch