ACC5044-Week 4

What is the primary purpose of cryptography?

• To create digital currencies

• To protect confidential information through codes

• To mine cryptocurrencies

• To regulate the internet

Who were the cryptographers that published a paper on public-key cryptography in 1976?

• Satoshi Nakamoto and Vitalik Buterin

• Whitfield Diffie and Martin Hellman

• Nick Szabo and Hal Finney

• Claude Shannon and Alan Turing

What does a cryptocurrency wallet store?

• Digital currency only

• Public and private keys

• Cryptocurrency mining software

• Blockchain technology

What was the main contribution of Satoshi Nakamoto in the field of cryptocurrency?

• Inventing public-key cryptography

• Developing the first blockchain

• Publishing the Bitcoin white paper

• Creating the first digital wallet

Blockchain technology was first introduced as the underlying technology for which cryptocurrency?

Evaluate responses using AI:

OFF

What is a distributed ledger?

• A) A centralized database

• B) A digital currency

• C) A database spread across a network of computers

• D) A type of cryptocurrency wallet

What role do nodes play in a blockchain network?

• A) They only store data without verifying transactions

• B) They perform transactions

• C) They verify transactions and maintain the blockchain

• D) They regulate the price of cryptocurrencies

Which consensus mechanism is used by Bitcoin?

• A) Proof-of-Stake (PoS)

• B) Delegated Proof-of-Stake (DPoS)

• C) Proof-of-Work (PoW)

• D) Byzantine Fault Tolerance (BFT)

What is the function of smart contracts?

• A) To mine new cryptocurrencies

• B) To automate the execution of contracts on a blockchain

• C) To serve as digital wallets

• D) To regulate cryptocurrency exchanges

What is unique about stablecoins?

• A) They are used for mining

• B) They maintain a stable value relative to an asset

• C) They can only be used in gaming