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Questions and Answers
What is the main characteristic of cryptocurrencies?
What is the main characteristic of cryptocurrencies?
- They rely on traditional intermediaries for transactions
- They use a decentralized system for verification and transfer (correct)
- They are controlled by a central authority
- They are considered traditional currencies
How are individual coin ownership records stored in cryptocurrencies?
How are individual coin ownership records stored in cryptocurrencies?
- In a centralized government database
- In a digital ledger using strong cryptography (correct)
- In physical ledgers at banks
- In a public record accessible to anyone
What is the purpose of validators in some crypto schemes?
What is the purpose of validators in some crypto schemes?
- To control the creation of additional coins (correct)
- To maintain the central authority of the cryptocurrency
- To oversee the transfer of coin ownership
- To maintain the cryptocurrency through a proof-of-stake model
In a proof-of-stake model, what do owners put up as collateral?
In a proof-of-stake model, what do owners put up as collateral?
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How are cryptocurrencies generally viewed in practice?
How are cryptocurrencies generally viewed in practice?
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What is the role of a proof-of-stake model in maintaining cryptocurrencies?
What is the role of a proof-of-stake model in maintaining cryptocurrencies?
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What distinguishes cryptocurrencies from traditional currencies?
What distinguishes cryptocurrencies from traditional currencies?
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What function do validators serve in some crypto schemes?
What function do validators serve in some crypto schemes?
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How are cryptocurrencies generally classified in practice?
How are cryptocurrencies generally classified in practice?
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What is the primary purpose of individual coin ownership records stored in a digital ledger for cryptocurrencies?
What is the primary purpose of individual coin ownership records stored in a digital ledger for cryptocurrencies?
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