C4 Cryptographic Principles — Questions and Answers
Question 1: What is the primary role of a hash function in blockchain technology?
- To encrypt emails
- To store public keys
- To ensure data integrity (Correct answer)
- To send tokens
Correct answer: To ensure data integrity
Hash functions convert input data into a fixed-size string, providing integrity by making it nearly impossible to alter data without changing the hash.
Question 2: What type of cryptography is used to secure cryptocurrency transactions?
- Symmetric encryption
- Blockchain encryption
- Asymmetric cryptography (Correct answer)
- Secure hash tokens
Correct answer: Asymmetric cryptography
Asymmetric cryptography uses a pair of keys (public and private) to secure data, ensuring only the intended recipient can access it.
Question 3: What is a digital signature in cryptocurrency?
- A random password
- A visual QR code
- A cryptographic validation of a transaction (Correct answer)
- A form of ID verification
Correct answer: A cryptographic validation of a transaction
A digital signature is a cryptographic technique that verifies the authenticity and integrity of a message or transaction.
Question 4: Why are private keys important in blockchain systems?
- To mine cryptocurrencies
- To create smart contracts
- To access and control wallet funds (Correct answer)
- To monitor blockchain analytics
Correct answer: To access and control wallet funds
Private keys provide exclusive access to one's digital assets, enabling users to authorize and sign transactions securely.
Question 5: What happens if a user loses their private key in cryptocurrency?
- The system resets the wallet
- They can retrieve it via customer service
- Assets become permanently inaccessible (Correct answer)
- It creates a duplicate key
Correct answer: Assets become permanently inaccessible
Losing the private key means losing access to the associated cryptocurrency, as there is no central recovery system in decentralized networks.
Question 6: Which algorithm is used by Bitcoin for hashing?
- MD5
- SHA-256 (Correct answer)
- AES-128
- RSA-2048
Correct answer: SHA-256
Bitcoin uses the SHA-256 algorithm to secure blocks and verify transactions by producing unique and irreversible hashes.
C4 Cryptographic Principles
What is the primary role of a hash function in blockchain technology?