C4 Cryptocurrency Basics

Question 1

What is the primary function of a blockchain in cryptocurrency?

Accepted Answer

To record and verify transactions

Answer

To generate fiat currency

Answer

To serve as a marketing tool

Answer

To calculate mining rewards

Question 2

Which of the following best describes Bitcoin?

Accepted Answer

A decentralized cryptocurrency

Answer

A government-issued stablecoin

Answer

A centralized online payment service

Answer

A traditional banking system

Question 3

What does a private key in cryptocurrency enable the user to do?

Accepted Answer

Access and control funds

Answer

Track market trends

Answer

Mine new blocks

Answer

Verify network updates

Question 4

Which consensus mechanism does Bitcoin use?

Accepted Answer

Proof of Work

Answer

Proof of Stake

Answer

Delegated Proof of Stake

Answer

Proof of Authority

Question 5

What is a cryptocurrency wallet primarily used for?

Accepted Answer

To store and manage digital assets

Answer

To mine cryptocurrencies

Answer

To regulate crypto prices

Answer

To trade NFTs

Question 6

What does the term 'decentralized' mean in cryptocurrency?

Accepted Answer

Distributed across multiple participants

Answer

Operated by one central bank

Answer

Controlled by a company

Answer

Regulated by government