Blockchain Test

What is the definition of Blockchain according to the lesson?

• A centralized system that manages digital transactions.

• A decentralized digital ledger that stores information in blocks linked together in a chain.

• A type of cryptocurrency used for online transactions.

• A digital certificate of ownership for artwork.

Which of the following is NOT a key feature of Blockchain?

• Decentralization

• Transparency

• Mutability

• Security

Imagine a scenario where a group of banks decides to use a shared digital ledger to record transactions. How does this Blockchain-based system ensure the security and trustworthiness of transaction records?

• By allowing easy changes to the transaction records once they are written.

• By making it very difficult to change or tamper with the transaction records once they are added.

• By storing all transaction records in a single location for easy access.

• By requiring a centralized authority to validate all transactions.

What does the term 'immutability' refer to in the context of Blockchain?

• The ability to change transaction records easily.

• The transparency of the digital ledger.

• The inability to change anything written once it is added to the blockchain.

• The process of linking blocks together chronologically.

What is the purpose of linking blocks in a Blockchain?

• To create a chronological order of transactions.

• To reduce the size of the digital ledger.

• To increase the speed of transaction processing.

• To centralize the data storage.

Imagine a scenario where a group of friends decides to keep track of their shared expenses using a ledger. What does decentralization in this context refer to?

• Having one friend control and manage the ledger alone.

• Having multiple copies of the ledger stored in one friend's house.

• Having multiple copies of the ledger distributed across each friend's house.

• Having a transparent but centralized ledger system managed by a trusted friend.

What is cryptocurrency?

• A) A physical currency like coins and banknotes

• B) A digital or virtual currency secured by cryptography

• C) A type of credit card

• D) A financial service provided by banks

Imagine you are reading about digital currencies for an upcoming finance exam. Which of the following is NOT an example of cryptocurrency?

• A) Bitcoin

• B) Ethereum

• C) Euro

• D) Litecoin

Imagine you've decided to start investing in Bitcoin. What is the first thing you need to get started?

• A) A digital wallet

• B) A special printer

• C) A cryptocurrency mining rig

• D) A bank account

Where are all verified cryptocurrency transactions recorded?

• A) In a digital wallet

• B) On a blockchain

• C) On a bank's ledger

• D) In a government database