Blockchain & Investments Quiz

What is blockchain technology BEST described as?

• A. A social media platform for sharing digital files

• B. A digital ledger of transactions stored in linked, unchangeable blocks

• C. A type of computer virus used to steal online data

• D. A program that automatically invests money in stocks

What is a "hash" in a blockchain?

• The total dollar value of all transactions on the network

• A password you use to log into your digital wallet

• A unique digital code that identifies each block and links it to the previous block

• The name for a cryptocurrency transaction fee

Why is blockchain data considered "immutable"?

• Government agencies lock the records each night

• Only the block owner can delete old entries

• Changing one block would require changing every block after it, which the network would reject

• Blocks automatically delete themselves after 30 days

What does it mean for a blockchain to be "decentralized"?

• A. A single bank controls and verifies all transactions

• B. The data is stored on one powerful supercomputer

• C. No single person, company, or government controls the network

• D. Only approved users can view the transaction history

What is a "node" in a blockchain network?

• A. A fee paid to miners for processing transactions

• B. Any computer connected to the network that holds a copy of the blockchain

• C. The person who created a cryptocurrency

What is the purpose of cryptocurrency "mining"?

• Physically digging up computer chips to build new devices

• Printing new paper money for digital banks

• Using computing power to verify transactions and add new blocks to the chain

• Searching the internet for stolen cryptocurrency

Which feature makes blockchain especially useful for recording financial transactions?

• It automatically converts all currencies to U.S. dollars

• Records are transparent and nearly impossible to alter once entered

• It charges lower fees than all other payment systems

• Only the sender and receiver can ever see the transaction

What information is typically stored inside each block on a blockchain?

• A. A list of usernames and passwords for the network

• B. Transaction data, a timestamp, and the hash of the previous block

• C. The personal identity of every user on the network

• D. The current market price of all cryptocurrencies

What does a digital cryptocurrency wallet actually store?

• Physical coins converted into digital form

• A username and password for a bank account

• The private and public keys needed to access and manage your cryptocurrency

• A backup copy of every blockchain in the world

Which of the following is an example of a real cryptocurrency?

• PayPal

• Bitcoin

• Venmo

• Visa