Blockchain Technology and Cryptocurrencies

What is the primary function of blockchain technology?

• Decentralization of financial institutions

• Providing secure and transparent transactions

• Creating new units of cryptocurrency

• Enforcing government regulations on digital transactions

Which cryptographic principle ensures the validity and integrity of digital documents or messages?

• Hash Functions

• Digital Signatures

• Encryption

• Consensus Mechanisms

What distinguishes blockchain technology from traditional centralized systems?

• It relies on a single central authority for validation.

• Transactions are recorded on a distributed ledger.

• It is vulnerable to hacking and manipulation.

• It requires physical documentation for each transaction.

Which cryptocurrency was the first decentralized digital currency?

• Ethereum

• XRP

• Bitcoin

• Litecoin

What is the purpose of a digital signature in blockchain transactions?

• To encrypt transaction data

• To provide transparency in transactions

• To verify the origin and integrity of transactions

• To increase energy consumption in the network

Which issue poses a significant challenge to the scalability of blockchain networks?

• Regulatory ambiguity

• Energy consumption

• Security concerns

• Limitations in transaction processing speed

What is a common characteristic of cryptocurrencies?

• Centralized control by government institutions

• Ability to reverse transactions for fraud prevention

• Usage of encryption technology for security

• Dependence on physical documentation for transactions

Which benefit does blockchain technology offer in terms of data security?

• Vulnerability to fraud and manipulation

• High energy consumption for transaction verification

• Utilization of digital signatures for authentication

• Decentralization leading to increased security

What is a limitation associated with cryptocurrencies?

• Lack of transparency in transactions

• Dependency on traditional banking systems

• High risk of account hacking and fraud

• Centralized control over the circulation and price of coins

Which aspect of blockchain technology and cryptocurrencies has the potential to reshape economies and communities?

• Regulatory challenges

• Environmental sustainability

• Decentralization and inclusivity

• Dependence on centralized intermediaries