Blockchain Basics

1. What is a blockchain?

• a. A digital wallet for storing cryptocurrencies

• b. A decentralized digital ledger that records transactions

• c. A software program for managing databases

• d. A type of encryption algorithm used for secure communication

2. What is a block in a blockchain?

• a. A transaction that has been verified and added to the blockchain

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  b. A group of computers that work together to verify transactions

• c. A cryptographic puzzle that must be solved to add a transaction to the blockchain

• d. A secure digital container that holds information about transactions

3. What is a smart contract?

• a. A legal document that defines the terms of a transaction

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  b. A computer program that executes automatically when certain conditions are met

• c. A type of encryption algorithm contract used for secure communication

• d. A process for verifying the identity of users on a blockchain

4. How does a blockchain ensure the security of its data?

• a. By using encryption to protect the data from unauthorized access

• b. By storing the data on multiple computers in a decentralized network

• c. By requiring users to provide personal identification before accessing the data

• d. By using a centralized authority to manage the data and transactions

5. What are the benefits of using a blockchain for transactions?

• a. Faster transaction processing times

• b. Lower transaction fees

• c. Increased transparency and accountability

• d. All of the above