Crypto Currency – Assessment

1. Question

What does “GPT” stand for in the term “GPT-4”?

Generalized Programming Technique
General Processor Technology
Generative Pretrained Transformer
Generic Processing Test

2. Question

What is the process of creating new Bitcoin called?

Mining
Minting
Manufacturing
Printing

3. Question

What is a public key in cryptocurrency?

A key used to encrypt data
A key used to decrypt data
A key which is publicly available for everyone
Both A and C

4. Question

What is the smallest unit of Bitcoin called?

Ether
Satoshi
Litecoin
Ripple

5. Question

What is the term for an online ledger where all transactions of a cryptocurrency are recorded?

Blockchain
Database
Ledger
Archive

6. Question

What is a ‘hard fork’ in a blockchain?

A software upgrade that is backward compatible
A change to the blockchain protocol that makes previously invalid blocks/transactions valid
A security measure that prevents data alteration
A software error that leads to a network crash

7. Question

What is Ethereum?

A type of digital currency
A platform for creating decentralized applications
A digital wallet for storing Bitcoin
A type of encryption used in cryptocurrencies

8. Question

What is a ‘smart contract’?

A contract that can be executed without the need for a third party
A contract that can be modified after it's signed
A contract that is only valid in certain conditions
A contract that is stored in a digital format

9. Question

What does ‘ICO’ stand for in the context of cryptocurrencies?

Initial Coin Offering
Initial Crypto Order
International Currency Order
Internal Coin Operation

10. Question

Which term is used to describe a drastic price drop in cryptocurrencies?

Fall
Crash
Dip
Ditch

11. Question

What does ‘HODL’ mean in the cryptocurrency community?

Hold On for Dear Life
Hold Or Dump Later
Hope Of Double Lift
Hype Of Digital Ledger

12. Question

Which cryptocurrency is known as ‘digital silver’?

Litecoin
Bitcoin
Ethereum
Ripple

13. Question

What is Ripple primarily designed for?

As a cryptocurrency for trading
As a payment protocol for financial institutions
As a platform for smart contracts
As a digital storage of value

14. Question

What does DeFi stand for in the cryptocurrency world?

Deficit Finance
Decentralized Finance
Digital Finance
Definitive Finance

15. Question

What is a ‘whale’ in cryptocurrency terms?

A large amount of cryptocurrency
A large-scale miner
A large cryptocurrency exchange
An individual or entity with a large amount of cryptocurrency

16. Question

What is a ‘hash’ in the context of cryptocurrencies?

A function that converts an input of letters and numbers into an encrypted output
A type of cryptocurrency
A measure of how much processing power the blockchain network is using
A sequence of characters used in blockchain mining

17. Question

What is a ‘nonce’ in the context of cryptocurrencies?

A token used to pay transaction fees
A random number used in cryptographic communications
The number of transactions confirmed by a miner
A term used to refer to a new cryptocurrency

18. Question

What is the purpose of a ‘cryptocurrency wallet’?

To store cryptographic keys
To mine new cryptocurrency
To perform transactions on a blockchain network
Both A and C

19. Question

What is a ‘cold wallet’?

A cryptocurrency wallet that is connected to the internet
A cryptocurrency wallet that is not connected to the internet
A cryptocurrency wallet that has been hacked
A cryptocurrency wallet that has been frozen by authorities

20. Question

What is ‘staking’ in the context of cryptocurrencies?

Holding a cryptocurrency in a wallet to support the security and operations of a blockchain network
The process of selling cryptocurrencies
The process of buying cryptocurrencies
The process of creating new cryptocurrencies

21. Question

What is a ‘peer-to-peer’ (P2P) network in the context of cryptocurrencies?

A network where transactions must go through a central server
A network where transactions happen directly between users without an intermediary
A network where all nodes have equal power and authority
Both B and C

22. Question

What is a ‘dust attack’?

A type of network attack where a large number of small transactions are made to slow down the network
A type of attack where a miner tries to modify the blockchain
A type of attack where a large amount of cryptocurrency is stolen from a wallet
A type of attack where a hacker tries to take control of a blockchain network

23. Question

What is ‘gas’ in the context of Ethereum?

The currency used in Ethereum
The cost of performing a transaction or executing a contract on the Ethereum blockchain
The energy consumed by the Ethereum network
The reward given to miners for verifying transactions

24. Question

What is the main difference between Bitcoin and Bitcoin Cash?

Bitcoin Cash allows for larger block sizes
Bitcoin Cash is not a cryptocurrency
Bitcoin Cash is the original version, while Bitcoin is a fork
Bitcoin is a digital currency, while Bitcoin Cash is a platform for decentralized applications

25. Question

What is a ‘51% attack’?

A type of attack where a miner or group of miners control more than 50% of a network's mining power
A type of attack where a miner steals 51% of a user's cryptocurrency
A type of attack where a hacker takes control of 51% of a network's nodes
A type of attack where a miner tries to reverse 51% of a blockchain's transactions

26. Question

What is ‘double-spending’ in the context of cryptocurrencies?

Spending the same cryptocurrency twice
Spending twice the amount of a transaction fee
Spending double the amount of a user's cryptocurrency balance
Spending a cryptocurrency and its equivalent in fiat currency at the same time

27. Question

What is the main difference between a public blockchain and a private blockchain?

Public blockchains are accessible to anyone, while private blockchains restrict who can participate in the network
Public blockchains use cryptographic security measures, while private blockchains do not
Private blockchains are a type of cryptocurrency, while public blockchains are not
Private blockchains use proof-of-stake consensus algorithms, while public blockchains use proof-of-work

28. Question

What is ‘sharding’ in the context of blockchain?

The process of dividing a blockchain into smaller pieces to increase its scalability
The process of sharing a blockchain's data with other networks
The process of dividing a blockchain's hash power among multiple miners
The process of sharing a blockchain's transaction fees among its users

29. Question

What is a ‘DAO’ in the context of blockchain?

Decentralized Autonomous Organization
Digital Asset Optimization
Distributed Application Operator
Decentralized Application Output

30. Question

What is ‘yield farming’ in the context of DeFi?

The process of lending or providing liquidity to earn rewards
The process of mining cryptocurrencies
The process of buying low and selling high to maximize returns
The process of investing in cryptocurrency projects with high potential

31. Question

What is a ‘stablecoin’?

A cryptocurrency that has a stable value
A cryptocurrency that is resistant to market volatility
A cryptocurrency that is backed by a reserve of assets
All of the above

32. Question

What is ‘fiat currency’?

A type of digital currency
A type of cryptocurrency
A type of currency that is backed by a physical commodity
A type of currency that is issued by a government

33. Question

What does ‘FOMO’ stand for in the context of cryptocurrencies?

Fear Of Market Overload
Fear Of Missing Out
Fear Of Monetary Oscillation
Fear Of Maximalist Opposition

34. Question

What is ‘altcoin’?

An alternative to Bitcoin
A type of digital coin
A coin used in alternative trading systems
A coin that is used in alternative investment strategies

35. Question

What is ‘scalability’ in the context of blockchain?

The ability of a blockchain to handle a large number of transactions per second
The ability of a blockchain to be used in various applications
The ability of a blockchain to be modified to fit different use cases
The ability of a blockchain to be divided into smaller parts

36. Question

What is the ‘halving’ event in Bitcoin?

An event where the value of Bitcoin is halved
An event where the number of Bitcoin in circulation is halved
An event where the reward for mining new blocks is halved
An event where the size of the Bitcoin blockchain is halved

37. Question

What is a ‘digital signature’ in the context of blockchain?

A signature that is used to sign digital documents
A signature that is used to verify the identity of a user
A signature that is used to sign and verify transactions
All of the above

38. Question

What is ‘Layer 2’ in the context of blockchain?

A second layer of security for a blockchain network
A second version of a blockchain network
A secondary blockchain that operates on top of the main blockchain
A layer of the blockchain where transactions are stored

39. Question

What is ‘liquidity’ in the context of cryptocurrencies?

The ease with which a cryptocurrency can be bought and sold without affecting the market price
The amount of a cryptocurrency that is available for trading
The ability of a cryptocurrency to maintain its value over time
The volatility of a cryptocurrency's price

40. Question

What is the primary purpose of a ‘block explorer’?

To explore the internet for new blocks
To visually represent the blockchain's data structure
To browse the contents of individual blocks and transactions on a blockchain
To find hidden blocks in a blockchain

41. Question

What is a ‘cryptocurrency exchange’?

A place where cryptocurrencies are bought and sold
A place where cryptocurrencies are created
A place where cryptocurrencies are stored
A place where cryptocurrencies are destroyed

42. Question

What is ‘tokenization’ in the context of blockchain?

The process of converting rights to an asset into a digital token on a blockchain
The process of converting a blockchain into tokens
The process of converting a cryptocurrency into tokens
The process of converting a transaction into tokens

43. Question

What is ‘SegWit’ in the context of Bitcoin?

A proposal to increase the block size limit
A protocol upgrade that changes the way data is stored
A type of wallet for storing Bitcoin
A proposal to decrease the block size limit

44. Question

What is a ‘sidechain’ in the context of blockchain?

A secondary blockchain that operates in parallel to the main chain
A chain of blocks that is stored on the side of the main chain
A chain of blocks that is used for testing purposes
A chain of blocks that is used for private transactions

45. Question

What is ‘oracles’ in the context of blockchain?

Entities that feed real-world data to smart contracts
Entities that predict the future price of cryptocurrencies
Entities that verify the transactions on a blockchain
Entities that store the data of a blockchain

46. Question

What is ‘zero-knowledge proof’?

A method by which one party can prove to another party that they know a value, without conveying any information apart from the fact they know the value
A method to prove that a transaction is valid without revealing any details about the transaction
A method to prove that a user owns a certain amount of cryptocurrency without revealing their identity
All of the above

47. Question

What does ‘DEX’ stand for in the context of cryptocurrencies?

Decentralized Exchange
Digital Exchange
Distributed Exchange
Direct Exchange

48. Question

What is a ‘multisig wallet’ in the context of cryptocurrencies?

A wallet that requires multiple signatures to authorize a transaction
A wallet that supports multiple cryptocurrencies
A wallet that has multiple levels of security
A wallet that is owned by multiple users

49. Question

What does ‘KYC’ stand for in the context of cryptocurrencies?

Know Your Coin
Keep Your Cryptocurrency
Know Your Customer
Keep Your Code

50. Question

What is ‘Atomic Swap’ in the context of blockchain?

The process of exchanging one cryptocurrency for another without the need for a central intermediary
The process of swapping the positions of two transactions in a blockchain
The process of swapping the values of two cryptocurrencies
The process of changing the atomic structure of a blockchain