Bitcoin Decentralized Applications Impact Quiz

1. What is a decentralized application (dApp)?

• A traditional desktop application installed locally on a computer.
• A network of servers that manages user data centrally.
• A software program that runs on a blockchain or peer-to-peer network of computers instead of on a single computer.
• A web application accessed through a standard browser without blockchain technology.

2. What are the key benefits of dApps?

• Safeguarding user privacy, lack of censorship, and flexibility of development.
• Limited user access, high costs, and manual error risks.
• Requires extensive hardware, centralized control, and single-point failures.
• Only available on specific platforms, slow transaction speeds, and frequent downtimes.

3. What are some potential drawbacks of dApps?

• Inability to scale
• Full user control
• Enhanced security
• Reduced costs

4. How do dApps operate on a blockchain or peer-to-peer network?

• Users are unable to interact directly and must use third-party applications to conduct transactions.
• Users engage in transactions directly with each other rather than relying on a central authority to facilitate them.
• Users must always go through a central server for transactions to be processed efficiently.
• Users send requests to a central authority who manages all transactions and interactions.

5. What is the role of smart contracts in dApps?

• Smart contracts are used to store personal information in dApps.
• Smart contracts only facilitate communication between users in dApps.
• Smart contracts complete transactions between people, removing the need to trust that the other party will execute their part of a transaction.
• Smart contracts serve as a user interface for dApps.

6. How do dApps ensure user privacy?

• By using blockchain protocols that hide personal information.
• By requiring users to disclose their identities.
• By using traditional encryption methods in the cloud.
• By storing user data on a centralized server.

7. What is the significance of blockchain protocols in dApps?

• Blockchain protocols allow for greater bandwidth and faster data transmission.
• Blockchain protocols focus on enhancing user interface design for dApps.
• Blockchain protocols make data immutable by leveraging cryptographic techniques and distributed automated consensus.
• Blockchain protocols enable centralized control and reduce transaction costs significantly.

8. What are some practical uses of dApps?

• Traditional office software for document creation and editing.
• Examples include self-executing financial contracts, multi-user games, social media platforms, secure blockchain-based voting, and governance.
• Proprietary software solutions requiring central management.
• Standard web applications offering basic e-commerce services.

9. Can you name a popular dApp?

• Uniswap
• Instagram
• Facebook
• Twitter

10. How does Uniswap facilitate trades?

• Uniswap employs a centralized exchange model that requires user verification for trades.
• Uniswap uses automated smart contracts to create liquidity pools that facilitate trades directly between users without intermediaries.
• Uniswap utilizes traditional banking methods to process transactions efficiently.
• Uniswap allows users to perform trades through anonymous brokers facilitating the process.

11. What is the significance of decentralized voting in dApps?

• Decentralized voting allows for anonymous ballots to be counted by a central authority for efficiency.
• Decentralized voting enables unlimited re-voting on decisions until a consensus is reached.
• Decentralized voting requires voters to physically attend polling stations to cast their votes.
• Decentralized voting ensures that every vote is independently verified on the public blockchain and cannot be altered, making elections safer, more secure, and more transparent.

12. Which industries could dApps significantly transform?

• Tourism
• Accounting
• Agriculture
• Textiles

13. What is the role of open-source in dApps?

• Open-source means that anyone can apply changes to the network, ensuring no single entity has authority over it.
• Open-source indicates that the application is only available to developers with special permission.
• Open-source allows only the original creators to make modifications to the application.
• Open-source restricts changes to a handful of administrators who manage the code.

14. How do decentralized consensus mechanisms work in dApps?

• A central authority determines the rules and makes decisions for the network without consulting nodes.
• All nodes independently create their own ledgers that are never aligned or shared with others.
• Decisions about the network are taken via a general consensus among network nodes, making the network tamper-resistant and highly secure.
• Users vote individually on every transaction without any coordination, leading to random approvals.

15. Why does the absence of a central point of failure matter in dApps?

• Decentralized apps can’t be shut down since there is no server to take down, ensuring continuous operation even if one node fails.
• dApps require central control to ensure reliability and consistent user experience.
• Centralized servers make dApps vulnerable to shutdowns, risking user access and data.
• The central point of failure allows for easier control and regulation of dApps by authorities.

16. How do dApps impact governance models?

• Governance models in dApps focus solely on enforcing legal regulations, bypassing community involvement.
• Governance models oversee financial transactions for profit-sharing among developers, limiting user input.
• Governance models in dApps allow users to propose and vote on changes or upgrades, ensuring the community`s needs and preferences are met.
• Governance models dictate decisions made by a central authority that controls the dApp entirely.

17. In what way do dApps eliminate intermediaries?

• dApps rely on third-party services to process transactions, maintaining traditional intermediaries involved.
• dApps require users to connect through centralized servers that manage interactions.
• dApps delegate transactional control to banks or financial institutions to ensure reliability.
• dApps use blockchain technology and smart contracts to enable direct peer-to-peer interactions, reducing costs and increasing efficiency by removing the need for central authorities.

18. What role do transparency and security play in dApps?

• Transparency ensures that all interactions are private and security is governed by a central authority.
• Transparency is provided by recording interactions on a public ledger and security is enhanced by operating without a central point of control.
• Transparency is about making all data inaccessible, and security is achieved through centralized encryption.
• Transparency focuses solely on user anonymity while security promotes centralization of data.

19. How do dApps ensure data integrity?

• Transactions are cryptographically secured, ensuring data integrity and preventing data breaches and unauthorized access.
• User inputs are manually verified by a central authority.
• Data is backed up on a central server to prevent loss.
• All transactions are processed through an intermediary for accuracy.

20. What is the impact of immutability on dApps?

• Immutability ensures that once data is recorded on the blockchain, it becomes irreversible, maintaining the integrity of the application`s records.
• Immutability leads to high costs for data storage and processing in dApps.
• Immutability allows for easy modification of data in dApps, improving user experience.
• Immutability results in slower transaction speeds for dApps compared to traditional apps.

21. How do users interact with dApps?

• Users must visit a physical location to engage with dApps.
• Users access dApps solely through mobile apps.
• Users can only interact with dApps via email.
• Users interact with dApps through their frontend interface.

22. What is the function of cryptocurrency wallets in dApps?

• Cryptocurrency wallets verify user identity to enhance security in dApps.
• Cryptocurrency wallets function as decentralized hosting services for dApps.
• Cryptocurrency wallets store application data for secure access and retrieval.
• Cryptocurrency wallets allow users to manage their assets and sign transactions securely, enabling seamless interaction with dApps.

23. Why are governance models significant in dApps?

• Governance models increase the costs related to the management and operation of dApps.
• Governance models have no impact on the functionality and development of dApps.
• Governance models ensure that dApps evolve based on the community`s needs and preferences, allowing users to propose and vote on changes or upgrades.
• Governance models are necessary to define user roles within the application, limiting access to functionalities.

24. How do dApps enhance transparency and trust?

• dApps operate on centralized servers, which helps maintain user trust and security.
• Transparency is achieved by encrypting user data, preventing anyone from accessing it.
• Transparency is built by recording all interactions on a public ledger, allowing users to verify transactions independently, which builds trust among users.
• dApps require trust in a central authority, ensuring all transactions are safe and reliable.

25. What are the key issues affecting dApps?

• High transaction fees, limited user adoption, short lifespan of projects, and technical jargon.
• Scalability, user experience, regulatory uncertainty, and security concerns.
• Excessive centralization, lack of data storage options, restrictive coding languages, and untested protocols.
• Inflexibility in development, reliance on physical servers, absence of privacy features, and closed-source code.

26. In what ways do dApps address security concerns?

• dApps use centralized servers to store user data, making it more susceptible to attacks and breaches.
• dApps are more resistant to attacks and censorship due to the lack of a single point of failure, and transactions are cryptographically secured to prevent data breaches and unauthorized access.
• dApps rely on third-party services for transaction verification, which compromises security and increases the likelihood of errors.
• dApps provide weak encryption methods that can easily be bypassed by malicious actors, increasing security risks.

27. What impact does blockchain technology have on dApps?

• Blockchain technology ensures that all transactions and interactions are transparent and verifiable by all participants in the network, making the data immutable and tamper-resistant.
• Blockchain technology simplifies the development of dApps by removing the need for coding.
• Blockchain technology increases the reliance on central authorities in dApp operations.
• Blockchain technology only operates with cryptocurrencies and does not affect dApps.

28. How do dApps promote data privacy?

• User data is available on public forums, increasing the risk of unauthorized access.
• User data is not stored on a central server, reducing the risk of data breaches and unauthorized access.
• User data is replicated across multiple servers, making it easily accessible by third parties.
• User data is encrypted and stored on a central server, ensuring high security.

29. What is the purpose of Merkle Root in Bitcoin?

• A Merkle Root is a hash of all transactions in a block that allows any specific transaction to be verified without downloading the entire blockchain.
• A Merkle Root represents the total amount of Bitcoin held by a user at a given time.
• A Merkle Root serves as a unique identifier for each Bitcoin user in the network.
• A Merkle Root is used to track the historical prices of Bitcoin over time.

30. How does SHA 256 function in Bitcoin security?

• SHA 256 creates alternative currencies as a primary function of Bitcoin mining.
• SHA 256 is used for storing user data securely on a central server.
• SHA 256 ensures the integrity of transactions by producing a unique hash for each block in the Bitcoin blockchain.
• SHA 256 enhances the graphical interface of Bitcoin wallets to improve user experience.