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

Cryptographic hash functions take arbitrary input and produce a fixed-size output (digest) used to verify data integrity.

Question 2

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

Accepted Answer

Pre-image resistance

Answer

Pre-image resistance means it is computationally infeasible to derive the original input from its hash output.

Question 3

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

Accepted Answer

Unspent Transaction Output

Answer

UTXO stands for Unspent Transaction Output, representing discrete amounts of cryptocurrency available to be spent.

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

The Merkle root is a single hash derived from hashing all transactions in a block, enabling efficient and tamper-evident verification.

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 soft fork introduces tightened validation rules that old nodes still accept, making it backward-compatible.

(CCE) Certified Cryptocurrency Expert Practice Test