Cryptocurrency Core Cryptographic Principles Questions and Answers

Question 1

Which of the following cryptographic principles ensures that a sender of a cryptocurrency transaction cannot later deny having sent it?

Accepted Answer

Non-repudiation

Answer

Confidentiality

Answer

Integrity

Answer

Authentication

Question 2

A user initiates a Bitcoin transaction. The transaction data is processed by a function that produces a unique, fixed-length string of characters. Even a minor change to the transaction data would result in a completely different string. What is this cryptographic process called?

Accepted Answer

Hashing

Answer

Symmetric Encryption

Answer

Key Generation

Answer

Decryption

Question 3

In public-key cryptography, which key is used to create a digital signature, and which key is used to verify it?

Accepted Answer

Private key to create, public key to verify.

Answer

Public key to create, private key to verify.

Answer

The same secret key is used for both creation and verification.

Answer

A session key to create, a master key to verify.

Question 4

What is the primary advantage of Elliptic Curve Cryptography (ECC) over RSA in the context of cryptocurrencies like Bitcoin?

Accepted Answer

ECC provides equivalent security with smaller key sizes.

Answer

ECC is simpler to implement and understand.

Answer

ECC is an older, more time-tested algorithm.

Answer

ECC is resistant to attacks from quantum computers.

Question 5

Which of the following is a core property of a cryptographic hash function used in blockchain technology?

Accepted Answer

Collision resistance

Answer

Reversibility

Answer

Variable output size

Answer

Key-dependency

Question 6

A developer is building a system where large amounts of data need to be encrypted quickly. However, the initial secret key exchange must be highly secure over an insecure channel. Which cryptographic approach would be most suitable?

Accepted Answer

A hybrid approach: asymmetric encryption for secure key exchange and symmetric encryption for data.

Answer

Using only symmetric encryption for both key exchange and data encryption.

Answer

Using only a hash function for both key exchange and data encryption.

Answer

Using only asymmetric encryption for both key exchange and data encryption.