Certified Bitcoin Professional Practice Exam Questions
with Correct answers
How Many Bitcoins Are There Now in Circulation? - ✔✔There are currently 18,591,868.75
bitcoins in existence. This number changes about every 10 minutes when new blocks are mined.
Right now, each new block adds 6.25 bitcoins into circulation
When backing Up Your Bitcoin Wallet, As Long As You Copy Your Addresses, Your Bitcoins
Are Safe. - ✔✔False
BIP Stands For Bitcoin Improvement Protocol. - ✔✔False. It stands for Bitcoin Improvement
Proposal
Which Of The Following Is The Safest Way To Receive Bitcoin From Someone? - ✔✔Have
Them Give You A Sealed Paper Wallet That Has The Expected Amount Of Bitcoin On It.
Addresses And Keys Created With One Bitcoin Application Cannot Be Exported Or Imported
Into Another Bitcoin Application. - ✔✔True.
What Is The Secure Payment Protocol In Bitcoin? - ✔✔An Extension To The Bitcoin Protocol
That Derives Private Keys From Addresses In Order To Increase Security.
A Bitcoin Transaction Can Only Be Signed On A Machine Connected To The Bitcoin Network.
- ✔✔False.
An Encryption Algorithm Transforms Plain Text Into Cipher Text Using A Key. - ✔✔True.
You Should Pay A Fee When Sending A Bitcoin Transaction Or It May Not Arrive At Its
Destination. - ✔✔True.
One Bitcoin Can Currently Be Subdivided into how many units? - ✔✔At Most 100 Million Sub
Units called Satoshis.
What Organisation Has Authority Over The Price Of A Bitcoin. - ✔✔No Organisation Has
Authority Over The Price Of Bitcoin. The price of Bitcoin is determined by supply and demand.
Lightweight Bitcoin Clients Do Not Have A Local Copy Of The Bitcoin Blockchain. - ✔✔True.
What Is Cryptography? - ✔✔Cryptography Is The Science Of Secure Communication In The
Presence Of Untrusted Third Parties.
The Bitcoin Foundation Is The Official Body That Decides On Updates To The Bitcoin Protocol.
- ✔✔False.
, In summary, there exists the following high-level structure of control:
Anyone can submit a BIP that aims to change bitcoin core.
The BIP must be approved by an editor.
The BIP must be voted in with 95% confidence from the miners.
The community must upgrade to the new software version.
Merchants Who Accept Bitcoin are Required To Manually Convert Their Bitcoin To Their Local
Currency After Every Sale. - ✔✔False.
Symmetric Encryption Uses One Key To Encrypt Data And Another Key To Decrypt Data. -
✔✔False. Symmetric encryption is a type of encryption where only one key (a secret key) is
used to both encrypt and decrypt electronic information. The entities communicating via
symmetric encryption must exchange the key so that it can be used in the decryption process.
What Is The Main Advantage That Mining Pools Provide Over Solo Mining? - ✔✔Reduced
Variance Of Payouts From Mined Blocks.
Blockchain.Info Is The Only Website That Allows Querying Address And Transaction
Information. - ✔✔False.
It Is Recommended That Merchants Who Accept Bitcoin For Their Products Or Services Should
Keep Their Products Priced In Their Local Currency. - ✔✔True.
What Does The WIF Acronym Stand For? - ✔✔Wallet Import Format. (WIF, also known as
Wallet Export Format) is a way of encoding a private ECDSA key so as to make it easier to
copy. A private key is a secret code that allows bitcoins to be spent. In order to make copying of
private keys less prone to error, Wallet Import Format may be utilized.
Cold Wallets Are Not Present On Web Servers Or On Computers, They Are Otherwise Kept
Offline. - ✔✔True. Cold storage (or offline wallets) is one of the safest methods for holding
bitcoin, as these wallets are not accessible via the Internet. Hardware wallets are potentially even
safer, although users face the risk of losing access to their tokens if they misplace or forget their
keys.
What Is A UTXO? - ✔✔A Set Of Coins That Are Currently Held At An Address.
UTXO stands for Unspent Transaction (TX) Output. Every on-chain bitcoin transaction sends
bitcoin to one or more addresses, from at least zero (in case of a coinbase transcation) addresses.
A bitcoin wallet balance is actually the sum of the UTXOs controlled by the wallet's private
keys.
What Of The Following Is Not An Example Of An Asset Based On A Centralised Ledger. -
✔✔Gold.
with Correct answers
How Many Bitcoins Are There Now in Circulation? - ✔✔There are currently 18,591,868.75
bitcoins in existence. This number changes about every 10 minutes when new blocks are mined.
Right now, each new block adds 6.25 bitcoins into circulation
When backing Up Your Bitcoin Wallet, As Long As You Copy Your Addresses, Your Bitcoins
Are Safe. - ✔✔False
BIP Stands For Bitcoin Improvement Protocol. - ✔✔False. It stands for Bitcoin Improvement
Proposal
Which Of The Following Is The Safest Way To Receive Bitcoin From Someone? - ✔✔Have
Them Give You A Sealed Paper Wallet That Has The Expected Amount Of Bitcoin On It.
Addresses And Keys Created With One Bitcoin Application Cannot Be Exported Or Imported
Into Another Bitcoin Application. - ✔✔True.
What Is The Secure Payment Protocol In Bitcoin? - ✔✔An Extension To The Bitcoin Protocol
That Derives Private Keys From Addresses In Order To Increase Security.
A Bitcoin Transaction Can Only Be Signed On A Machine Connected To The Bitcoin Network.
- ✔✔False.
An Encryption Algorithm Transforms Plain Text Into Cipher Text Using A Key. - ✔✔True.
You Should Pay A Fee When Sending A Bitcoin Transaction Or It May Not Arrive At Its
Destination. - ✔✔True.
One Bitcoin Can Currently Be Subdivided into how many units? - ✔✔At Most 100 Million Sub
Units called Satoshis.
What Organisation Has Authority Over The Price Of A Bitcoin. - ✔✔No Organisation Has
Authority Over The Price Of Bitcoin. The price of Bitcoin is determined by supply and demand.
Lightweight Bitcoin Clients Do Not Have A Local Copy Of The Bitcoin Blockchain. - ✔✔True.
What Is Cryptography? - ✔✔Cryptography Is The Science Of Secure Communication In The
Presence Of Untrusted Third Parties.
The Bitcoin Foundation Is The Official Body That Decides On Updates To The Bitcoin Protocol.
- ✔✔False.
, In summary, there exists the following high-level structure of control:
Anyone can submit a BIP that aims to change bitcoin core.
The BIP must be approved by an editor.
The BIP must be voted in with 95% confidence from the miners.
The community must upgrade to the new software version.
Merchants Who Accept Bitcoin are Required To Manually Convert Their Bitcoin To Their Local
Currency After Every Sale. - ✔✔False.
Symmetric Encryption Uses One Key To Encrypt Data And Another Key To Decrypt Data. -
✔✔False. Symmetric encryption is a type of encryption where only one key (a secret key) is
used to both encrypt and decrypt electronic information. The entities communicating via
symmetric encryption must exchange the key so that it can be used in the decryption process.
What Is The Main Advantage That Mining Pools Provide Over Solo Mining? - ✔✔Reduced
Variance Of Payouts From Mined Blocks.
Blockchain.Info Is The Only Website That Allows Querying Address And Transaction
Information. - ✔✔False.
It Is Recommended That Merchants Who Accept Bitcoin For Their Products Or Services Should
Keep Their Products Priced In Their Local Currency. - ✔✔True.
What Does The WIF Acronym Stand For? - ✔✔Wallet Import Format. (WIF, also known as
Wallet Export Format) is a way of encoding a private ECDSA key so as to make it easier to
copy. A private key is a secret code that allows bitcoins to be spent. In order to make copying of
private keys less prone to error, Wallet Import Format may be utilized.
Cold Wallets Are Not Present On Web Servers Or On Computers, They Are Otherwise Kept
Offline. - ✔✔True. Cold storage (or offline wallets) is one of the safest methods for holding
bitcoin, as these wallets are not accessible via the Internet. Hardware wallets are potentially even
safer, although users face the risk of losing access to their tokens if they misplace or forget their
keys.
What Is A UTXO? - ✔✔A Set Of Coins That Are Currently Held At An Address.
UTXO stands for Unspent Transaction (TX) Output. Every on-chain bitcoin transaction sends
bitcoin to one or more addresses, from at least zero (in case of a coinbase transcation) addresses.
A bitcoin wallet balance is actually the sum of the UTXOs controlled by the wallet's private
keys.
What Of The Following Is Not An Example Of An Asset Based On A Centralised Ledger. -
✔✔Gold.
