Digital Assets and Blockchain Technology Quiz

What is a digital asset?

• An investment in a digital company that is recorded on the internet.

• A digital item that you can own but will never exist outside of the internet.

• A digital item that you rent and can share with others on the internet.

• A single block of blockchain technology that contains a unique hash.

What is the purpose of blockchain technology?

• Be a secure backup for password protection on all digital accounts.

• Run software programs that allow mobile apps to connect to the internet.

• Record, store, and track digital information and transactions.

• Make artwork that can be shared on the internet publicly.

What is one characteristic of blockchain technology that allows a ledger to be spread out and accessible to people all over the world?

• Decentralized and not under government control

• Centralized and controlled by a single entity

• Requires physical presence for access

• Operates only within a specific geographic region

What is one characteristic of blockchain technology that allows a ledger to be spread out and accessible to people all over the world?

• Centralized control for consistency

• Timestamped and unalterable

• Distributed in a shared network

How does a hash help secure blockchain technology?

• Hashes do not allow any new blocks to be formed on a chain or new data to be added. Hashes block all changes.

• Hashes are like fingerprints that make each block of data unique. Blocks form a chain that can only have new blocks added.

• Hashtags allow others to see if someone is trying to change something and it alerts the government to prevent the changes.

• Blocks of data require passwords that are called hashes. Hashes are impossible to guess.

How does a block of data on a blockchain get locked?

• It gets double-checked by the people with access to the public ledger.

• The government reviews and verifies all blocks of data.

• Financial institutions review all blocks of data related to cryptocurrency.

• Financial institutions review all blocks of data related to cryptocurrency.

Since blockchain technology is public, how are the identities of users protected?

• User identities are not protected since people use blockchain voluntarily.

• User identities are anonymous and protected by keys.

• Hashes protect all user identities.

Dylan is having a hard time understanding how something that is decentralized with no authority overseeing everything can be safe and secure. What detail will help ease his mind?

• Blockchain is a public ledger in which all transactions can be seen and double-checked.

• He's wrong, central banks in each country actually oversee transactions on blockchain.

• Since it is decentralized everyone is free to secure their own data.

• Blockchain technology is shared on one block of data that is encrypted.

What best describes the relationship between blockchain technology and cryptocurrencies?

• The blockchain is built, recorded, and stored on cryptocurrencies.

• Cryptocurrencies are built, recorded, and stored on the blockchain.

• Blockchain technology and cryptocurrencies are the same thing.

• There is no relationship between blockchain technology and cryptocurrencies.

Which one of the statements is true about cryptocurrency?

• Cryptocurrency controls blockchain technology.

• Cryptocurrency is a type of digital asset that can be owned.

• Cryptocurrency is a type of hash that gives value to a block of data.

• Cryptocurrency gets its value based on how many blocks of data it is made of.