Bitcoin Protocol Upgrades History Quiz

1. What is the primary goal of the Genesis upgrade in Bitcoin?

• To closely restore the initial Bitcoin Protocol according to Satoshi`s original vision.
• To enable smart contracts in Bitcoin for the first time.
• To introduce a completely new transaction method for faster processing.
• To increase the maximum block size limit significantly.

2. When did the Genesis upgrade occur?

• March 2021
• April 2022
• January 2019
• February 2020

3. What significant achievements has BSV established since 2022?

• Consistently exceeding 50,000 transactions per second, generating the largest blocks (over 2GB in size), producing the largest NFT (1GB), and maintaining the lowest environmental impact among all proof-of-work (POW) chains.
• Creating the first blockchain-based social media platform with native tokens.
• Launching a decentralized exchange that enables trading without intermediaries.
• Developing a new financial regulation for cryptocurrency worldwide and gaining global acceptance.

4. What is the Taproot upgrade?

• An update to improve the Bitcoin mining algorithm.
• A new type of wallet for holding multiple cryptocurrencies.
• An umbrella term referring to three interconnected Bitcoin Improvement Proposals (BIPs): Schnorr signatures (BIP 340), Taproot (BIP 341), and Tapscript (BIP 342).
• A special token for reducing transaction fees.

5. What does BIP 340 introduce?

• Schnorr signatures, a digital signature scheme that is faster, more secure, and less data-intensive than ECDSA.
• SHA-256 hashing, the algorithm used for mining Bitcoin.
• Multisignature support, enabling multiple signatures for a transaction authorisation.
• ECDSA signatures, which are the traditional digital signature scheme used in Bitcoin.

6. What does BIP 341 introduce?

• Signature verification simplification for transactions.
• Enhanced mining algorithms for faster block creation.
• Pay-to-Taproot (P2TR), enhancing privacy and flexibility.
• Layer 2 protocol integration for faster payments.

7. What does BIP 342 introduce?

• Tapscript
• Segregated witness
• Pay-to-Taproot
• Schnorr signatures

8. When did the Taproot upgrade proposals reach a 90% consensus among miners?

• July 1st, 2021.
• August 15th, 2021.
• May 20th, 2021.
• June 12th, 2021.

9. When was the Taproot upgrade activated?

• October 14th, 2021
• January 14th, 2021
• December 14th, 2021
• November 14th, 2021

10. What are the main improvements of the Taproot upgrade?

• Higher fees, reduced transaction speed, minimal smart contract capabilities, and lower network capacity.
• Lower fees, improved Lightning Network efficiency, enhanced smart contract functionality, and increased network speed.
• Increased fees, basic Lightning Network support, no change in smart contracts, and slower network operations.
• Stable fees, inefficient Lightning Network routing, limited smart contracts, and decreased network performance.

11. How does the Taproot upgrade impact transaction fees?

• Transaction fees will remain unchanged regardless of transaction complexity.
• Transaction fees will increase due to more complex transactions being added.
• Transaction fees will vary randomly without any consistent pattern.
• Transaction fees will decline proportionally due to reduced data size of complex transactions.

12. How does the Taproot upgrade improve the Lightning Network?

• It increases miner rewards for transactions on the network.
• It makes transactions on the Lightning Network cheaper, more flexible, and more private.
• It makes the Lightning Network transactions less secure.
• It limits the number of transactions that can be processed.

13. What does the Taproot upgrade enable for smart contracts on Bitcoin?

• Hosting smart contracts with any number of signatories while retaining the data size of a single-signature transaction.
• Enabling complex smart contracts requiring additional transaction data.
• Allowing only single-signature transactions for all smart contracts.
• Automating the execution of all Bitcoin transactions without signatures.

14. What is the significance of the Taproot upgrade for DeFi on Bitcoin?

• It increases the Bitcoin transaction limit to one million.
• It lays the technical foundation for DeFi on the Bitcoin network.
• It enhances the aesthetic design of Bitcoin wallets.
• It replaces Bitcoin`s proof-of-work mechanism with proof-of-stake.

15. What is the purpose of the OP_RETURN function in Bitcoin?

• To disable a critical bug that enabled anyone to spend any Bitcoin.
• To increase the transaction speed of Bitcoin transfers.
• To create new Bitcoin mining regulations.
• To allow Bitcoin to support smart contracts.

16. When was the OP_RETURN function disabled?

• March 9, 2010
• July 28, 2010
• August 15, 2011
• January 5, 2012

17. What was the outcome of the OP_RETURN function disablement?

• A significant increase in transaction fees occurred.
• No evidence of any issues during this upgrade.
• Numerous bugs were reported following the disablement.
• A major chain split was triggered as a result.

18. What was the bug fixed by the output-value-overflow bug fix in August 2010?

• A cryptographic flaw that permitted signature forgery.
• An output-value-overflow bug following a 184.5-billion Bitcoin spend incident.
• A double-spend error allowing unlimited Bitcoin transactions.
• A memory leak causing node crashes and instability.

19. What was the outcome of the output-value-overflow bug fix?

• The network was shut down for several weeks.
• All Bitcoin transactions were halted indefinitely.
• A chainsplit occurred, but a fix was released, and the “good” chain retook the PoW lead.
• The bug led to a permanent loss of coins.

20. When was the SegWit upgrade activated?

• August 24, 2017
• July 20, 2017
• September 1, 2017
• October 15, 2017

21. What does the SegWit upgrade include?

• A complete overhaul of Bitcoin`s transaction fee structure.
• The integration of smart contracts into Bitcoin`s core protocol.
• A proposal to make Bitcoin transactions completely anonymous.
• The segregated-witness (SegWit) upgrade, which includes BIP141, BIP143, and BIP147.

22. How was the SegWit upgrade rolled out?

• Via user-activated soft fork.
• By mandatory hard fork.
• Using 95% versionbits signaling.
• Through miner voting alone.

23. What was the outcome of the SegWit upgrade?

• It was rejected by the community entirely.
• Major bugs led to a hard fork.
• The upgrade was delayed indefinitely.
• Successful rollout with no significant issues.

24. What is the significance of the Taproot upgrade activation methodology?

• It used “Speedy Trial,” an idea proposed by Russell O’Connor to resolve a dispute on the best activation methodology.
• It was activated automatically without any consensus process among miners.
• It required a majority vote from users through online polls to determine activation.
• It implemented a hard fork to introduce the new features with immediate effect.

25. When did the Taproot upgrade proposals lock-in?

• July 1, 2020, at block height 600,000
• June 12, 2021, at block height 687,283
• November 14, 2021, at block height 700,000
• August 24, 2017, at block height 500,000

26. What is the SHA-256 algorithm used for in Bitcoin?

• A transaction verification method for confirming block validity.
• A random number generator used for mining hashes.
• A data compression algorithm used to speed up transactions.
• A secure hashing algorithm used by Bitcoin, originally designed by the NSA.

27. What is a nonce in the context of Bitcoin?

• A nonce is a number used once in a cryptographic hash function to prevent preimage attacks.
• A nonce is the identifier for a Bitcoin miner`s personal account.
• A nonce is a type of digital wallet for storing Bitcoin securely.
• A nonce is an algorithm that encrypts Bitcoin transactions for safety.

28. What data is needed to validate a signature in Bitcoin?

• The block hash, the fee, and the timestamp.
• The wallet address, the signature, and the transaction ID.
• The original message, the signature, and the public key.
• The transaction ID, the timestamp, and the public key.

29. Which scripts do nodes check when validating a transaction?

• The sender and receiver addresses.
• The transaction IDs and timestamps.
• The locking and unlocking scripts.
• The encryption and decryption keys.

30. What is a UTXO in Bitcoin?

• A financial ledger recording all Bitcoin exchanges.
• A method for solving transaction delays.
• An output of a transaction that can be spent as an input in a new transaction.
• A digital wallet containing private keys.