Cryptocurrency Concepts and Blockchain Mechanics

What is a major difference between traditional currency and cryptocurrency?

• Traditional currency is digital

• Cryptocurrency requires banks for transfers

• Cryptocurrency is decentralized

• Traditional currency is decentralized

What does P2P stand for in the context of cryptocurrency?

• Person to Person

• Peer to Peer

• Public to Private

• Payment to Payment

The value of cryptocurrency is determined by:

• Government regulations

• Market demand and supply

• Bank policies

• Cryptocurrency developers

What is the primary purpose of blockchain technology as mentioned in the text?

• To create digital art

• To record transactions and ownership of cryptocurrency

• To design video games

• To manage social media accounts

What is a key feature of blockchain technology that makes it very safe?

• It is controlled by a single company

• It is stored in a single database

• It is updated on all devices on the network

• It is only accessible to government officials

What generates a unique key (a hash) in a block?

• A random number generator

• A hash function

• A manual entry

• A password

What is used to identify a block?

• A creation date.

• Cryptocurrency miners.

• A distributed ledger.

• A hash.

What must happen for a block to be added to the blockchain?

• The transaction request must be canceled.

• More than half of the users must agree it is correct.

• The transaction details must be hidden.

• The block must be encrypted.

What do miners receive as a reward for their efforts in the mining process?

• Transaction fees

• Newly created Bitcoins

• Digital certificates

• Network points

What is the term used for the number of hashes a machine can guess per second?

• Block rate

• Mining rate

• Hash rate

• Key rate