Blockchain and Cryptocurrency

What is a blockchain?

• A blockchain is a decentralized, distributed ledger technology that records transactions across multiple computers in a secure and transparent manner.

• A blockchain is a centralized database managed by a single entity.

• A blockchain is a physical chain used in cryptography.

• A blockchain is a type of cryptocurrency.

Explain the concept of NFT.

• NFT is a form of traditional stock investment

• NFT is a physical asset stored in a bank vault

• NFT is a digital asset representing ownership or proof of authenticity of a unique item using blockchain technology.

• NFT is a type of cryptocurrency

What is a node in the context of blockchain?

• A node is a type of cryptocurrency

• A node is a computer or device that participates in the blockchain network by maintaining a copy of the entire blockchain and validating transactions.

• A node is a physical location where blockchain data is stored

• A node is a software used to mine bitcoins

What does PoF stand for in the blockchain space?

• Point of Failure

• Path of Freedom

• Proof of Failure

• Proof of Stake

Who is the creator of Bitcoin?

• Mark Zuckerberg

• Satoshi Nakamoto

• Jeff Bezos

• Elon Musk

What is a hash function?

• A hash function is used for sorting data in databases.

• A hash function is a type of encryption algorithm.

• A hash function is a function that takes an input (or 'message') and returns a fixed-size string of bytes.

• A hash function always returns the same output for different inputs.

What is the process of mining in the context of cryptocurrencies?

• Digging physical holes to find digital coins

• Sending emails to verify transactions

• Using computer power to solve mathematical problems and validate transactions on the blockchain.

• Using computer power to play video games

How does a blockchain ensure security?

• Using artificial intelligence algorithms

• Cryptographic techniques like hashing, digital signatures, and consensus mechanisms

• Relying solely on user trust

• Implementing outdated security protocols

What is the significance of consensus algorithms in blockchain?

• Consensus algorithms ensure agreement among nodes on transaction validity and order in blockchain.

• Consensus algorithms are only relevant for private blockchains.

• Consensus algorithms determine the value of cryptocurrencies in blockchain.

• Consensus algorithms are used to encrypt data in blockchain.

Explain the role of smart contracts in blockchain technology.

• Smart contracts in blockchain technology act as digital protocols that automatically verify, facilitate, or enforce the negotiation or performance of a contract, providing security and efficiency in transactions.

• Smart contracts are controlled by a central authority, undermining the decentralized nature of blockchain.

• Smart contracts are physical documents stored on a blockchain network.

• Smart contracts are only used for simple transactions and cannot handle complex agreements.