Exploring Blockchain and Cryptocurrency

What is the fundamental technology behind blockchain?

• Cloud computing infrastructure

• Peer-to-peer file sharing

• Distributed ledger technology (DLT)

• Centralized database technology

Explain how Bitcoin transactions are verified.

• Transactions are automatically verified without any network involvement.

• Bitcoin transactions are verified through mining and consensus among network nodes.

• Transactions are verified by a central authority.

• Verification is done through user confirmations only.

What are the key features of a Decentralized Autonomous Organization (DAO)?

• Centralized control by a single entity

• Mandatory membership fees for participation

• Key features of a DAO include smart contracts, token-based voting, transparency, and decentralized governance.

• Limited access to financial records

How does Bitcoin achieve decentralization?

• Bitcoin uses a private ledger controlled by a few trusted entities.

• Bitcoin relies on a central authority to manage transactions.

• Decentralization is achieved through a single server that processes all transactions.

• Bitcoin achieves decentralization by using a distributed network of independent nodes that validate transactions and maintain the blockchain.

What are the main components of a smart contract?

• Scripts, states, logs, and modules.

• Data, algorithms, transactions, and protocols.

• Code, state, events, and interfaces.

• Functions, variables, transactions, and nodes.

Identify the primary use cases of blockchain technology.

• Email marketing

• Traditional banking systems

• Cryptocurrency transactions, supply chain management, smart contracts, identity verification, voting systems.

• Social media management

Discuss the impact of cryptocurrency on traditional banking systems.

• Cryptocurrency eliminates the need for banks entirely.

• Traditional banks have no response to cryptocurrency.

• Cryptocurrency is regulated by all governments equally.

• Cryptocurrency challenges traditional banking by promoting decentralization, reducing transaction costs, and increasing competition, leading banks to innovate.

What security risks are associated with using Bitcoin?

• Security risks associated with using Bitcoin include hacking, loss of private keys, phishing attacks, and transaction irreversibility.

• Lower transaction fees

• Increased transaction speed

• Guaranteed anonymity

How do DAOs differ from traditional organizations?

• DAOs differ from traditional organizations in that they are decentralized, governed by smart contracts, and promote community participation, whereas traditional organizations are centralized and hierarchical.

• DAOs are always led by a single individual.

• Traditional organizations use blockchain technology for governance.

• DAOs operate under strict government regulations.

What role do miners play in the Bitcoin network?

• Miners primarily focus on trading bitcoins in exchanges.

• Miners validate transactions, secure the network, and create new bitcoins.

• Miners are responsible for creating wallets for users.

• Miners only store bitcoins without validating transactions.