1 - Finals: Crypto & Blockchain UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Cryptocurrencies - CORRECT ANSWER - like Bitcoin are digital currencies. They don't
rely on banks or governments and use blockchain technology for secure transactions.
Bitcoin is still the dominant player in the crypto market.
Blockchain - CORRECT ANSWER - a distributed ledger, meaning it's shared across
multiple computers. It ensures transactions are secure and transparent
isn't just for crypto—it's being explored for payments, supply chain management, and even
healthcare (for securely tracking data).
Two main consensus mechanisms for validating transactions: - CORRECT ANSWER --
proof of work
-proof of stake
Proof-of-Work: - CORRECT ANSWER - Miners compete to solve puzzles and get
rewarded.
Bitcoin blockchain uses this
-Blockchain uses this
Proof-of-Stake: - CORRECT ANSWER - Validators are chosen based on the amount of
cryptocurrency they hold.
-Ethereum is the biggest proof-of-stake network
The concept of Distributed Ledger Technology - CORRECT ANSWER - using modern
networking systems, hardware, and programming to distribute copies of a database to multiple
nodes that synchronize it to maintain it
, Basically: like a digital notebook that many people share. Imagine you and your friends all have
a copy of the same notebook, and whenever someone writes in it, everyone's notebook gets
updated at the same time. No one person controls it, and everyone can trust that the information
is correct because it's shared and checked by everyone. This technology helps keep things like
money transactions secure and fair, without needing a bank to keep track.
Ethereum - CORRECT ANSWER - takes blockchain further by using smart contracts,
which automatically execute transactions when certain conditions are met.
EX: bob bets that team A will win the soccer game, bill bets that team B will win. Since they
don't trust each other, they bet 1 Ethereum. They encode this bet on the blockchain so when the
game ends the smart contract will automatically transfer the 1 Ethereum to the bet winner
Blockchain trilemma: - CORRECT ANSWER - the challenge of achieving three critical
aspects of blockchain technology: security, scalability, and decentralization
Security: - CORRECT ANSWER - keeping the network safe from attacks
Scalability: - CORRECT ANSWER - handling lots of transactions quickly
Is an issue compared to traditional payment systems b/c credit card systems can handle
thousands
Decentralization: - CORRECT ANSWER - making sure no single person or group controls
the system
Blockchains and intermediation - CORRECT ANSWER - -miners: create new blocks
-digital wallets: apps and online services for storing digital currency
-exchanges: facilitate exchanging traditional and crypto currencies
ACTUAL Exam Questions and CORRECT
Answers
Cryptocurrencies - CORRECT ANSWER - like Bitcoin are digital currencies. They don't
rely on banks or governments and use blockchain technology for secure transactions.
Bitcoin is still the dominant player in the crypto market.
Blockchain - CORRECT ANSWER - a distributed ledger, meaning it's shared across
multiple computers. It ensures transactions are secure and transparent
isn't just for crypto—it's being explored for payments, supply chain management, and even
healthcare (for securely tracking data).
Two main consensus mechanisms for validating transactions: - CORRECT ANSWER --
proof of work
-proof of stake
Proof-of-Work: - CORRECT ANSWER - Miners compete to solve puzzles and get
rewarded.
Bitcoin blockchain uses this
-Blockchain uses this
Proof-of-Stake: - CORRECT ANSWER - Validators are chosen based on the amount of
cryptocurrency they hold.
-Ethereum is the biggest proof-of-stake network
The concept of Distributed Ledger Technology - CORRECT ANSWER - using modern
networking systems, hardware, and programming to distribute copies of a database to multiple
nodes that synchronize it to maintain it
, Basically: like a digital notebook that many people share. Imagine you and your friends all have
a copy of the same notebook, and whenever someone writes in it, everyone's notebook gets
updated at the same time. No one person controls it, and everyone can trust that the information
is correct because it's shared and checked by everyone. This technology helps keep things like
money transactions secure and fair, without needing a bank to keep track.
Ethereum - CORRECT ANSWER - takes blockchain further by using smart contracts,
which automatically execute transactions when certain conditions are met.
EX: bob bets that team A will win the soccer game, bill bets that team B will win. Since they
don't trust each other, they bet 1 Ethereum. They encode this bet on the blockchain so when the
game ends the smart contract will automatically transfer the 1 Ethereum to the bet winner
Blockchain trilemma: - CORRECT ANSWER - the challenge of achieving three critical
aspects of blockchain technology: security, scalability, and decentralization
Security: - CORRECT ANSWER - keeping the network safe from attacks
Scalability: - CORRECT ANSWER - handling lots of transactions quickly
Is an issue compared to traditional payment systems b/c credit card systems can handle
thousands
Decentralization: - CORRECT ANSWER - making sure no single person or group controls
the system
Blockchains and intermediation - CORRECT ANSWER - -miners: create new blocks
-digital wallets: apps and online services for storing digital currency
-exchanges: facilitate exchanging traditional and crypto currencies
