Digital Currency

What is the term used to describe a digital representation of value that is not issued or controlled by any central authority?

• Cryptocurrency

• Digital asset

• Virtual currency

• Electronic money

Which technology is the foundation of cryptocurrencies like Bitcoin?

• Artificial Intelligence

• Blockchain

• Virtual Reality

• Cloud Computing

What is the purpose of encryption in cryptocurrency transactions?

• To prevent unauthorized access

• To increase transaction speed

• To reduce transaction fees

• To verify the identity of the sender

Which of the following is a characteristic of a decentralized cryptocurrency?

• Controlled by a central bank

• Requires physical storage

• Operates on a peer-to-peer network

• Can be converted to physical cash

Which cryptocurrency was the first to be introduced?

• Bitcoin

• Ethereum

• Litecoin

• Ripple

What is the process called through which new bitcoins are created and transactions are verified?

• Minting

• Trading

• Investing

• Mining

What is the role of a digital wallet in cryptocurrency transactions?

• Storing physical coins and notes

• Authenticating transactions on the blockchain

• Sending and receiving cryptocurrencies

• Verifying the identity of the sender

Which consensus algorithm is used by Bitcoin?

• Proof of Stake (PoS)

• Byzantine Fault Tolerance (BFT)

• Proof of Work (PoW)

• Delegated Proof of Stake (DPoS)

Which of the following is a potential benefit of using cryptocurrencies?

• Centralized control

• Lower transaction fees

• Physical presence required

• Anonymous transactions

Which of the following is an example of an alternative cryptocurrency (altcoin)?

• Bitcoin Cash (BCH)

• Monero (XMR)

• Tether (USDT)

• All of the above