Bitcoin Blockchain Mechanism Quiz

1. What is the primary function of a block header in a blockchain?

• The block header manages the user accounts in the blockchain network.
• The block header defines the rewards given to miners for their work.
• The block header contains metadata that ensures the chain`s security, including a unique identifier known as the hash of the previous block.
• The block header stores the entire list of transactions within the block.

2. What is the purpose of the hash in a blockchain?

• The hash stores user credentials for account access in a block.
• The hash ensures that only authorized users can read the blockchain contents.
• The hash provides a backup of all transaction data in the blockchain.
• The hash acts as a digital fingerprint, linking each block to its predecessor in a direct lineage.

3. What are the two main components of a block in a blockchain?

• The block`s signature and the nonce.
• The hash and the transaction fee.
• The block header and the body.
• The timestamp and the miner`s address.

4. What is stored in the body of a block?

• The body of a block stores a list of transactions.
• The body of a block stores the block header information.
• The body of a block contains the hash of the previous block.
• The body of a block includes user account details.

5. How are transactions verified in the Bitcoin network?

• Transactions are verified by a central authority approving each transaction before it is processed.
• Transactions are verified by miners through the process of mining, which involves checking digital signatures to ensure the transaction is authentic and that the sender has enough balance.
• Transactions are verified by random individuals on the street confirming details in person.
• Transactions are verified by users sending emails confirming their intent to transfer funds.

6. What is the process called when miners compete to solve a cryptographic puzzle?

• Harvesting
• Drilling
• Mining
• Excavation

7. What is the reward for the miner who first solves the cryptographic puzzle?

• The reward is a trophy presented at a ceremony.
• The reward is a set quantity of Bitcoins for every block added to the blockchain.
• The reward is a piece of land allocated to the miner.
• The reward is a cash prize awarded by the government.

8. What type of encryption is used in Bitcoin transactions?

• AES-512
• SHA-256
• Blowfish
• RSA-128

9. What is the Merkle tree in the context of Bitcoin transactions?

• The Merkle tree is a type of decentralized wallet for storing Bitcoin.
• The Merkle tree is a method for users to generate private keys securely.
• The Merkle tree is a visual representation of transaction fees in Bitcoin.
• The Merkle tree is a grouping process where each node represents the block’s hash, and non-leaf nodes consist of child nodes.

10. What is the term for a blockchain split?

• Break
• Division
• Fork
• Split

11. What is the purpose of the proof-of-work algorithm in Bitcoin?

• The proof-of-work algorithm is used to authorize and organize transaction data into blocks, which get addressed through this algorithm.
• The proof-of-work algorithm is used to increase transaction fees for miners.
• The proof-of-work algorithm is used to create new wallets for users in Bitcoin.
• The proof-of-work algorithm is used to store transaction history in a centralized server.

12. How often are new blocks added to the Bitcoin blockchain?

• New blocks are added to the Bitcoin blockchain approximately every 10 minutes.
• New blocks are added to the Bitcoin blockchain every 30 minutes.
• New blocks are added to the Bitcoin blockchain once a day.
• New blocks are added to the Bitcoin blockchain every hour.

13. What is the role of miners in the Bitcoin network?

• Miners only store transactions in their local databases.
• Miners are responsible for developing Bitcoin software updates.
• Miners create new Bitcoin wallets for users.
• Miners verify transactions and add them to the blockchain.

14. What is the term for the process of creating new Bitcoins?

• Mining
• Exchange
• Trading
• Farmwork

15. What is the primary purpose of mining in the Bitcoin network?

• Increase network fees and block size
• Provide internet connection to users
• Validate transactions and add new blocks
• Store personal user information securely

16. How are transactions broadcast to the network?

• Transactions are aggregated and sent only to miners for processing.
• Transactions are encrypted and stored on a central server for validation.
• Transactions are broadcast to the network and usually begin to be confirmed within 10-20 minutes through a process called mining.
• Transactions are communicated via emails to network participants for confirmation.

17. What is the role of the blockchain in ensuring the integrity of transactions?

• The blockchain eliminates the need for verification of transactions.
• The blockchain randomly mixes transactions to create randomness.
• The blockchain ensures the integrity of transactions by enforcing a chronological order through cryptography.
• The blockchain allows for unlimited alterations to transactions after they are issued.

18. What is the term for the secret piece of data used to sign transactions?

• Public token
• Secure code
• Digital pass
• Private key

19. What prevents a transaction from being altered once it has been issued?

• The transaction fee prevents a transaction from being altered once it has been issued.
• The timestamp prevents a transaction from being altered once it has been issued.
• The block header prevents a transaction from being altered once it has been issued.
• The signature prevents a transaction from being altered once it has been issued.

20. How does the blockchain maintain decentralization?

• The block chain maintains decentralization by not having a central authority, making it self-governing.
• It maintains decentralization by using a single database for all transactions.
• It maintains decentralization by relying on government regulations to enforce rules.
• It maintains decentralization by allowing any user to control the entire network.

21. What is the benefit of transparency in a blockchain?

• The benefit is that all transactions are hidden from everyone on the network.
• The benefit is that transactions are processed slowly and inefficiently.
• The benefit is that all transactions are public and can be read by everyone on the network.
• The benefit is that transactions cannot be tracked back to their origin.

22. What is the benefit of immutability in a blockchain?

• The benefit is that it is difficult or impossible to alter, hack, or defraud the data stored in the blockchain.
• The benefit is that it improves the speed of transaction processing significantly.
• The benefit is that all data can be changed without any restrictions.
• The benefit is that it allows multiple users to edit the same data easily.

23. What is the term for the process of solving complex cryptographic hash puzzles?

• proof-of-work
• time-stamping
• data mining
• key encryption

24. How do miners compete to solve the hash puzzle?

• Miners use a singular secret key to compete.
• Miners calculate hashes by adjusting nonces in a loop.
• Miners randomly choose previous hashes to solve it.
• Miners all submit the same hash for verification.

25. What is the reward for solving the hash puzzle?

• The reward is a set quantity of Bitcoins for every block added to the blockchain.
• The reward is a set quantity of Ethereum for every block added to the blockchain.
• The reward is a set quantity of Dogecoins for every block added to the blockchain.
• The reward is a set quantity of Litecoins for every block added to the blockchain.

26. What is the term for the grouping process of transactions in a Merkle tree?

• Transaction block
• Hash algorithm
• Node structure
• Merkle tree

27. How is the Merkle tree used in Bitcoin transactions?

• The Merkle tree is used to create digital identities for miners.
• The Merkle tree is used to group transactions together, which is crucial for generating a block using SHA-256 encryption.
• The Merkle tree is used to manage user rights within the Bitcoin network.
• The Merkle tree is used to store user passwords for secure access.

28. What is the role of nodes in the Bitcoin network?

• Nodes are the only entities that can validate transactions in the Bitcoin network.
• Nodes in the Bitcoin network are responsible for picking up and spreading transactions across the network.
• Nodes are responsible for creating new blocks by solving cryptographic puzzles.
• Nodes are responsible for mining new Bitcoins through complex mathematical calculations.

29. What is the term for the distributed consensus system used to confirm pending transactions?

• Hashing
• Forking
• Mining
• Staking

30. How does mining enforce a chronological order in the blockchain?

• Mining establishes order through a central authority that dictates transaction placement.
• Mining arranges transactions randomly to enhance security across the network.
• Mining enforces a chronological order by including transactions in blocks that fit very strict cryptographic rules, preventing previous blocks from being modified.
• Mining verifies blocks in a sequential manner without any cryptographic requirements.