Bitcoin Node Functionality Quiz

1. What is the primary function of Bitcoin nodes in verifying transactions?

• Only confirming the transaction amounts before approval.
• Acting as a wallet to hold Bitcoin funds.
• Storing transaction data for future reference.
• Verifying the authenticity of the sender, ensuring the transaction adheres to the Bitcoin protocol rules, and checking if the sender has sufficient funds.

2. What does a Bitcoin node store?

• A complete copy of the blockchain.
• A list of all Bitcoin wallets.
• The transaction fees for each block.
• All private keys of users.

3. How do Bitcoin nodes facilitate the dissemination of transaction data?

• By broadcasting transaction information to other nodes.
• By requiring user verification before sharing data.
• By encrypting transaction data for privacy.
• By storing transaction data on a central server.

4. What is the role of a Bitcoin node in maintaining the integrity of the system?

• Preventing double-spending by verifying transactions.
• Monitoring network speed and optimizing bandwidth use.
• Collecting user personal data for service improvements.
• Facilitating all cryptocurrency exchanges between wallets.

5. What is the purpose of storing the blockchain in Bitcoin nodes?

• To increase the speed of transaction processing and confirmation.
• To store user personal information for transaction history.
• To allow miners to gain rewards for each block added to the blockchain.
• To enable new participants to synchronize with the network and validate transactions independently.

6. How do Bitcoin nodes contribute to decentralization?

• By directly managing user accounts and funds effectively.
• By ensuring no single entity controls the entire network, promoting transparency and security.
• By processing transactions more quickly than centralized systems.
• By providing a user-friendly interface for mass adoption.

7. What happens when a new transaction occurs in the Bitcoin network?

• The transaction is propagated to neighboring nodes, which then spread the information across the network.
• The transaction gets stored in the miner`s wallet for later use.
• The transaction is deleted if it doesn`t meet the network`s requirements.
• The transaction is immediately confirmed and added to the blockchain.

8. What are the benefits of running a Bitcoin node?

• It stores personal data of users for security.
• It allows users to create new cryptocurrencies.
• It contributes to the overall health and resilience of the network.
• It increases transaction fees for users.

9. What is the primary responsibility of Bitcoin nodes in validating transactions?

• Mining new blocks to add to the blockchain.
• Verifying the authenticity of the sender and ensuring the transaction adheres to the Bitcoin protocol rules.
• Storing transaction data in a decentralized manner.
• Checking the IP address of the sender for security purposes.

10. How do Bitcoin nodes check if a sender has sufficient funds for a transaction?

• By verifying that the sender has sufficient funds to complete the transaction.
• By checking the transaction ID against a central database.
• By observing the sender`s account history for activity.
• By requiring a signature from the recipient`s wallet.

11. What is the purpose of broadcasting information in Bitcoin nodes?

• To store all user personal information for future reference.
• To restrict access to certain transactions based on user identity.
• To process transactions immediately without confirmation from other nodes.
• To facilitate the efficient dissemination of transaction data across the network.

12. What happens if a transaction passes the initial test in a Bitcoin node?

• The transaction is added to the mempool.
• The transaction is immediately confirmed.
• The transaction is sent to a central server.
• The transaction is discarded as invalid.

13. What is the role of miners in relation to Bitcoin nodes?

• Miners verify the transactions in the blockchain.
• Miners communicate directly with wallet services for transaction approval.
• Miners store the blockchain locally on their devices.
• Miners aggregate transactions into blocks and search for a proof-of-work solution.

14. What does a miner do after finding a valid block?

• The miner sends the block to a central server for approval.
• The miner deletes the block and starts over.
• The miner broadcasts the solution to the network, and nodes verify the miner’s work.
• The miner keeps the block secret to gain an advantage.

15. What happens if a block is approved by nodes?

• Nodes update their ledger copy and pass along the change to their connected peers.
• Nodes ignore the block and continue as before.
• Nodes create a new algorithm and restart the network.
• Nodes delete the previous block and stop all transactions.

16. What are the main types of Bitcoin nodes?

• Guardian nodes, ghost nodes, shadow nodes, and relay nodes.
• Full nodes, super nodes, light nodes, and mining nodes.
• Core nodes, backup nodes, relay nodes, and proxy nodes.
• Standard nodes, verification nodes, master nodes, and blockchain nodes.

17. What is the primary function of full nodes in the Bitcoin network?

• Storing only the most recent block data.
• Connecting users with wallet services.
• Ensuring that every block follows the Bitcoin protocol rules.
• Mining new blocks to earn rewards.

18. What do full nodes check in a new block?

• They verify that the new block chains to the previous block, all transactions are legitimate, and the new block hash is less than the target.
• They monitor network traffic and allocate bandwidth to nodes.
• They only check the timestamp and miner`s address in the block.
• They confirm the price of Bitcoin at the time of block creation.

19. What happens if a transaction is added to the mempool?

• The transaction is discarded immediately to save resources.
• Miners select transactions from the mempool based on their attractiveness (highest fees).
• The transaction is automatically included in the next block.
• The transaction is stored indefinitely without any action.

20. How do miners choose which transactions to include in their next candidate block?

• Miners prioritize transactions from well-known users.
• Miners randomly select transactions from the mempool.
• Miners only choose transactions based on their age.
• Miners generally include transactions with the highest fees first.

21. What is the role of a pruned node in the Bitcoin network?

• A pruned node exclusively mines new blocks and secures the network.
• A pruned node stores a complete copy of the blockchain for reference.
• A pruned node only uploads data to other nodes without validation.
• A pruned node downloads and validates transactions but does not upload data to the network.

22. How do pruned nodes verify transactions?

• They verify transactions but do not upload data to the network.
• They share all transaction data with the network.
• They do not verify any transactions at all.
• They only download transactions without validation.

23. What is the purpose of a Merkle root in a Bitcoin block header?

• The Merkle root is included in the block header to efficiently verify the validity of transactions in the block.
• The Merkle root is used to encode the miner`s transaction fees.
• The Merkle root specifies which miner created the block.
• The Merkle root stores the IP addresses of all network nodes.

24. What is the purpose of the difficulty target in a Bitcoin block header?

• The difficulty target dictates the maximum transaction fees per block.
• The difficulty target ensures that the block hash is less than the target, requiring sufficient proof-of-work.
• The difficulty target sets the time limit for completing transactions.
• The difficulty target establishes a fixed block size requirement.

25. What is the purpose of the nonce in a Bitcoin block header?

• The nonce is used to encrypt transaction data in the block.
• The nonce is used to designate the block creator`s identity.
• The nonce is used to store the previous block`s hash.
• The nonce is used to find a valid block hash that meets the difficulty target.

26. How do Bitcoin nodes check if a transaction is valid?

• They check the blockchain for previous blocks and validate the user`s email.
• They ensure the transaction amount matches the local currency exchange rate.
• They verify that the transaction data is formatted correctly, is less than the block limit, and conforms to other technical parameters.
• They confirm the identity of the user using biometric data.

27. What happens if a node receives a new block?

• The node immediately adds the block to its chain without checks.
• The node sends the block to all connected nodes without verification.
• The node performs standard checks on the transactions in the block, including verifying the block header and Merkle root.
• The node discards the block if it doesn`t match the previous hash.

28. What is the purpose of signature validation in Bitcoin nodes?

• To ensure that the signature matches the sender’s public key.
• To verify the transaction amount is correct.
• To confirm the transaction is against the rules.
• To check the age of the transaction.

29. What do nodes check when validating a transaction?

• The time of transaction creation.
• The transaction amount limit.
• The transaction sender`s identity.
• The unlocking and locking scripts.

30. What is a UTXO (Unspent Transaction Output)?

• A record of a confirmed transaction that is no longer valid.
• A pending transaction waiting to be verified by miners.
• An input that has already been spent and cannot be reused.
• An output of a transaction that can be spent as an input in a new transaction.