Blockchain Technology Fundamentals

What is a characteristic of Bitcoin?

It operates without a financial system or government authorities

What is the purpose of a blockchain in Bitcoin?

To record all cryptocurrency transactions

What is the function of a wallet in Bitcoin?

To view your balance

What is required to send a bitcoin?

The receiver's address and your private key Signup and view all the answers

What happens after you send a bitcoin?

The receiver must wait for the transaction to be verified by the network Signup and view all the answers

What is a bitcoin transaction?

When you send or receive a bitcoin Signup and view all the answers

Why is a blockchain compared to a community bank?

Because it stores everyone's funds Signup and view all the answers

What is the purpose of entering your private key when sending a bitcoin?

To authenticate the sender Signup and view all the answers

How long does it take for a transaction to be verified by the network?

Up to 30 minutes Signup and view all the answers

What is the term for the fee associated with sending a bitcoin?

Transaction fee Signup and view all the answers

What is the primary advantage of using blockchain technology for transactions?

Sending money directly between individuals in seconds Signup and view all the answers

What is the term 'blockchain' referring to?

A decentralized public ledger Signup and view all the answers

How do blockchains store information?

In blocks linked together via cryptography Signup and view all the answers

What is the most common use of blockchain technology?

Keeping a ledger of transactions Signup and view all the answers

What is the main component of a blockchain that resists modification?

The cryptographic hash Signup and view all the answers

What is a block in a blockchain composed of?

A header, data section, and a hash Signup and view all the answers

How does blockchain technology reduce the time for transactions?

By avoiding the long process of traditional banking Signup and view all the answers

What is the purpose of the hash in a blockchain?

For verification purposes Signup and view all the answers

What is the nature of the blockchain network?

Decentralized and distributed among nodes Signup and view all the answers

What is unique about the way blockchain stores data?

It stores data in blocks linked together via cryptography Signup and view all the answers

What is the main purpose of a hashing algorithm in blockchain?

To take an input and return a fixed-size string of characters Signup and view all the answers

Why is it difficult to alter a block in a blockchain?

Because it is linked to the previous block through a hash Signup and view all the answers

What is a key feature of a distributed database in blockchain?

All nodes have a copy of the ledger Signup and view all the answers

What is the main benefit of removing dependency on third-party trust in blockchain?

It reduces the need for intermediaries Signup and view all the answers

What is the role of users in a blockchain network?

To validate and add blocks to their ledgers Signup and view all the answers

What is a benefit of using blockchain technology?

It reduces the need for intermediaries Signup and view all the answers

What is the relationship between blockchain and Bitcoin?

Blockchain is the technology that supports Bitcoin Signup and view all the answers

What is a characteristic of a blockchain?

It is a distributed ledger Signup and view all the answers

What is the role of a hash in blockchain?

To link blocks together Signup and view all the answers

What is a benefit of using blockchain technology in transactions?

It reduces the need for third-party verification Signup and view all the answers