Blockchain and Cryptocurrency Quiz

What is the primary use of blockchain technology in the Philippine financial sector?

• Centralized data storage

• Recording and verifying transactions through a distributed ledger

• Manual bookkeeping of transactions

• Physical asset tracking

Which feature of blockchain makes it highly secure and difficult to hack?

• Centralization of data

• Encryption only

• Decentralization and immutability

• Paper-based verification

What key element does each block in a blockchain contain?

• Customer names and addresses

• Transaction data, a hash, and a timestamp

• Physical records of transactions

• Only a timestamp

What consensus mechanism does Bitcoin typically use for verifying transactions?

• Proof of Stake (PoS)

• Proof of Work (PoW)

• Proof of Authority (PoA)

• Delegated PoS

Why is blockchain gaining popularity in the Philippines?

• Increases reliance on intermediaries

• Enhances trust, transparency, and security

• Reduces financial inclusion

• Limits digital transactions

What is decentralization in the context of Philippine blockchain adoption?

• One bank controlling all records

• Distribution of control across multiple nodes

• Centralized data processing

• Manual validation of records

What makes a distributed ledger different from traditional ledgers?

• Data stored on a single server

• Copies of data maintained across multiple nodes

• Physical verification of transactions

• No encryption involved

How can distributed ledgers benefit financial services in the Philippines?

• Increase transaction fees

• Ensure transparency and reduce fraud

• Limit digital access

• Delay financial reporting

What is a disadvantage of decentralization in blockchain systems?

• Central authority control

• Slower transaction verification

• Increased vulnerability to fraud

• Reduced transparency

In a decentralized blockchain, who validates transactions?

• Central Bank of the Philippines (BSP)

• Bank managers

• Multiple nodes in the network

• Account holders only