Cryptocurrency and Blockchain Quiz

What is cryptocurrency?

• A system that only works in specific countries

• Physical money carried around for transactions

• A peer-to-peer system for sending and receiving payments

• A digital payment system that relies on banks

What is blockchain?

• A system that allows for easy manipulation of records

• A traditional business network

• A shared ledger for recording transactions

• A type of physical currency

What is the purpose of a distributed ledger in blockchain?

• To eliminate the need for transactions

• To allow for easy alteration of records

• To provide an immutable record of transactions

• To keep transactions private

What is a smart contract in blockchain?

• A contract that is not visible to anyone

• A physical contract signed by two parties

• A set of predefined rules stored on the blockchain

• A contract that can be altered by participants

What is Bitcoin rewarded for in the blockchain?

• For solving complex puzzles

• For deleting records

• For altering transactions

• For creating new blocks

Who introduced Bitcoin to the public in 2009?

• Raja Sudharshana Govind

• A government entity

• An anonymous group of developers

• Satoshi Nakamoto

What is Proof of Work (PoW) in blockchain?

• A way to validate transactions based on coins held

• A method for selecting validators randomly

• A process where miners solve complex puzzles to add new blocks

• A system that requires minimal energy consumption

What is Proof of Stake (PoS) in blockchain?

• A method for selecting validators randomly

• A system that requires minimal energy consumption

• A process where miners solve complex puzzles to add new blocks

• A way to validate transactions based on coins held

What is a major risk associated with cryptocurrencies?

• Low volatility in prices

• High security of exchanges and wallets

• Clear regulatory framework

• Potential for dramatic price changes

What is a technological risk associated with cryptocurrencies?

• High level of consumer protection

• Stable functionality with no issues

• Complex technology prone to bugs and glitches

• Simple technology with no bugs