Blockchain fundamentals quiz 2 Created on February 01, 2023 By Alisa Cromer Blockchain Fundamentals 1 / 11 A blockchain has which of the following characteristics: It creates an immutable digital ledger. It is a technology only used by Bitcoin. The record of transactions that is stored and encrypted in blocks. Every block is validated by a decentralized network of professional cryptographers. Every block has a hash, or digital signature 2 / 11 Bitcoin has the following characteristics: It was invented by an anonymous person or group Based on its price in FIAT (U.S. dollars) it is the most valuable of cryptocurrencies. It is the most flexible blockchain for entrepreneurs to create layer 2 projects It uses a DAO to make governance decisions. It is a blockchain that has never been hacked/ The supply of coins will run-out in 2029. 3 / 11 Ethereum contributed the following “firsts” in the FinTech industry: Blockchain technology Smart contracts Hashtags DAOs ICOs 4 / 11 The two most common ways to validate a transaction are: Consensus is created by Proof of Work (POW) a network of computers competing to solve a mathematical puzzle, and Proof of Yield (POY) verifying crypto dividends were paid Consensus is created by Proof of Work (POW), a network of cryptographers validating each transaction and Proof of Stake (POS), a network of validators who must hold quantities of the native coin to be selected. Consensus is created by Proof of work (POW) a networks of computers solving a mathematical puzzle, and Proof of Stake (POS) a network of validators who must hold quantities of the native coin to be randomly selected to validate and earn rewards.. None of the above 5 / 11 An altcoin is: Any coin built on top of the Etherium blockchain Any coin built on top of the Bitcoin blockchain Any coin that is not Bitcoin 6 / 11 Hundreds of blockchains compete to gain an advantage in which of the following areas Speed Number of Layer2 applications TPS - Transactions per Second TTF - Time to finality Mass adoption Utility Size and dominance of layer two applications in their own sector 7 / 11 Centralized exchanges are charactized by: A remarkable track record of safety for investors. Several high profile bankruptcies. Compliance with KYC regulations. 8 / 11 Decentralized exchanges are characterized by: The transactions including staking is governed by software rather than the management team. They have been experienced several high profile bankruptcies. They are compliant with KYC regulations. 9 / 11 A centralized wallet has the following characteristics: It stores your private seed words, so that you only need an ordinary recoverable password. It could freeze your funds. It may insure crypto with the FDIC. Some organizations with centralized wallets have gone bankrupt, causing a loss of funds. 10 / 11 A decentralized wallet has the following characteristics It stores your private seed words, so that you only need to use an ordinary, recoverable password. It could freeze your funds if the market crashes. It may insure crypto with FDIC. None of the above 11 / 11 When sending crypto peer-to-peer always make sure you first have: The recipients address for the coin The coin’s network The recipient private seed words Your score is The average score is 86% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
