Digital Currency and Blockchain Quiz

What makes digital currency different from traditional money?

• It can only be used online

• It exists purely in digital format with no physical form

• It is always free to use

• It can only be spent on video games

In a blockchain network, what happens when a transaction occurs?

• The transaction is kept secret

• Only one computer knows about the transaction

• All networked computers receive a copy of the transaction

• The transaction is deleted immediately

Why is blockchain considered more secure than traditional digital banking?

• It uses more complicated passwords

• Transactions require approval from all network members

• It has a central server controlling everything

• Only bank employees can access it

What does the term "cryptography" mean in the context of cryptocurrency?

• A type of secret code used to track transactions

• A way to make money disappear

• A method of printing digital money

• A technique for creating new banks

What prevents hackers from quickly changing blockchain data?

• Strong firewalls

• Proof-of-work that takes 10 minutes per block

• Complicated passwords

• Government regulations

How is a blockchain different from a traditional centralized database?

• It stores data on only one computer

• It is connected to a central server

• It is distributed across multiple interconnected computers

• It can be easily modified by one person

What is the purpose of a "hash value" in a blockchain?

• To create money

• To act like a unique digital fingerprint for each block

• To delete old transactions

• To speed up internet connections

What makes cryptocurrency unique compared to traditional digital currency?

• It can only be used for online shopping

• It is controlled entirely by the cryptocurrency community

• It is backed by gold reserves

• It can only be used by adults

In a blockchain, what happens if one block is changed?

• Nothing changes in the system

• All subsequent blocks become invalid

• The entire blockchain is immediately deleted

• The change is automatically approved

What role do "miners" play in a blockchain network?

• They dig for physical gold

• They create new physical money

• They verify and add new blocks, receiving a commission

• They protect the computers from viruses