Quiz: Bitcoin Fundamentals

Question 1: Who introduced Bitcoin in 2008?

A. Vitalik Buterin B. Satoshi Nakamoto C. Gavin Andresen D. Hal Finney

Question 2: What primary problem does Bitcoin's blockchain aim to solve in digital transactions?

A. Double-spending B. High transaction fees C. Slow transaction speeds D. Lack of privacy

Question 3: Which consensus mechanism does Bitcoin utilize?

A. Proof of Stake (PoS) B. Proof of Authority (PoA) C. Proof of Work (PoW) D. Delegated Proof of Stake (DPoS)

Question 4: What is the maximum supply of Bitcoin that can ever exist?

A. 21 million B. 42 million C. 100 million D. Unlimited

Question 5: In Bitcoin transactions, what is the purpose of the 'blockchain'?

A. To generate new bitcoins B. To store private keys C. To encrypt user data D. To record all transactions in a public ledger

Question 6: What is a 'satoshi' in the context of Bitcoin?

A. A type of mining hardware B. The smallest unit of Bitcoin C. A Bitcoin wallet D. A blockchain explorer

Question 7: How often is a new block added to the Bitcoin blockchain, on average?

A. Every 1 minute B. Every hour C. Every 10 minutes D. Every 30 minutes

Question 8: What is 'mining' in the context of Bitcoin?

A. Extracting physical bitcoins from the earth B. Creating new Bitcoin wallets C. Sending bitcoins from one user to another D. Solving complex mathematical problems to validate transactions

Question 9: Which of the following is NOT a characteristic of Bitcoin?

A. Centralized control B. Decentralization C. Transparency D. Immutability

Question 10: What does 'peer-to-peer' mean in the context of Bitcoin transactions?

A. Transactions are mediated by a central authority B. Transactions occur directly between users without intermediaries C. Transactions require approval from multiple nodes D. Transactions are reversible

Question 11: What is the primary purpose of Bitcoin's Proof of Work mechanism?

A. To speed up transactions B. To secure the network and validate transactions C. To create new Bitcoin addresses D. To reduce transaction fees

Question 12: In Bitcoin terminology, what is a 'node'?

A. A user who spends bitcoins B. A type of cryptocurrency exchange C. A computer that participates in the Bitcoin network D. A digital wallet