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Understanding Bitcoin and PayPal

Understanding Bitcoin and PayPal

Assessment

Interactive Video

Computers, Business

9th - 12th Grade

Practice Problem

Hard

Created by

Emma Peterson

FREE Resource

The video tutorial explains the differences between centralized electronic money transfer systems like PayPal and decentralized systems like Bitcoin. It highlights how PayPal maintains a single ledger, while Bitcoin's ledger is distributed across all network participants. The role of miners in the Bitcoin network is discussed, detailing how they validate transactions, create blocks, and add them to the blockchain. Miners are rewarded for their work through a unique transaction that creates new Bitcoins, a process known as mining, likened to extracting gold.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has traditionally been the only way to send money electronically?

Using cryptocurrency

Sending cash through mail

Relying on a centralized intermediary

Using a decentralized network

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does PayPal do to manage transactions?

It uses a decentralized ledger

It does not keep any records

It allows users to send more money than they have

It keeps track of the amount of money in each account

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the ledger maintained in the Bitcoin network?

By the government

By every participant in the network

By a centralized server

By a single company

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When was the Bitcoin network first created?

2005

2009

2012

2015

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role do miners play in the Bitcoin network?

They provide customer support

They manage user passwords

They listen for transaction messages and bundle them into blocks

They create new accounts

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a blockchain?

A centralized ledger

A chain of blocks mathematically linked together

A single block of data

A type of cryptocurrency

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How are miners rewarded in the Bitcoin network?

By charging users a monthly fee

By selling user data

By creating new Bitcoins out of thin air

By receiving transaction fees only

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