Question 1

After approximately how many years is the reward for mining a block of bitcoins halved?&#10;A)1 year.&#10;B)2 years.&#10;C)4 years.&#10;D)6 years.

Accepted Answer

After approximately four years is the reward for mining a block of bitcoins halved? When the Bitcoin protocol was first created, the reward for mining a block was 50BTC, and this was the same reward for the first 210,000 blocks. The current reward is 25BTC, and will be reduced to 12.5BTC after the 420,000th block is mined.

Question 2

Which of the following types of cryptography does Bitcoin use?&#10;A)One time pad.&#10;B)Stenography.&#10;C)Symmetric cipher.&#10;D)Public key cryptography.

Accepted Answer

Bitcoin uses public key cryptography in order to protect its transactions. This type of cryptography uses a pair of keys: a private key, which is kept secret, and a public key, which is shared with everyone.

Question 3

Which of the following hash algorithms does Bitcoin use?&#10;A)SHA-224&#10;B)SHA-256&#10;C)SHA-382&#10;D)SHA-512

Accepted Answer

Bitcoin uses the SHA-256 hash algorithm. The hash generates "random" numbers that require a similar, expected amount of CPU effort.

Question 4

Which of the following types of mining hardware is capable of 3,000,000 Mhashes per second?&#10;A)HashFast Sierra - Second Batch.&#10;B)KnC Neptune.&#10;C)CoinTerra TerraMiner IV.&#10;D)Black Arrow Prospero X-3.

Accepted Answer

The KnC Neptune is capable of 3,000,000 Mhashes per second. This piece of hardware will debut in 2014 for almost $13,000.

Question 5

This mining hardware will debut in February 2014 with a price tag of more than $22,000.&#10;A)BitForce 500 GH/s Mini Rig SC.&#10;B)Xtreme Miners The &#34;Lion.&#34;&#10;C)TerraHash DX Large.&#10;D)Black Arrow Prospero X-3.

Accepted Answer

The Bit Force 500 GH/s Mini Rig SC will debut in February 2014 with a price tag of more than $22,000. Several pieces of Bitcoin mining hardware cost tens of thousands of dollars, but the Bit Force 500 GH/s Mini Rig SC is currently the most expensive on the market.

Question 6

How many times can a Bitcoin address be used?&#10;A)One.&#10;B)Two.&#10;C)Ten.&#10;D)Unlimited.

Accepted Answer

A Bitcoin address can be used only one time. For each transaction, a user must create a new address in order to accept payment.

Question 7

How many characters do most Bitcoin addresses have?&#10;A)27&#10;B)32&#10;C)33&#10;D)34

Accepted Answer

Most Bitcoin addresses have 34 characters. Bitcoin addresses are made up of a sequence of alphanumerical characters and can theoretically have anywhere between 27 and 34 characters.

Question 8

What is the probability that the block chain will accept a mistyped Bitcoin address as valid?&#10;A)One in 540 million.&#10;B)One in 1.07 billion.&#10;C)One in 2.14 billion.&#10;D)One in 4.29 billion.

Accepted Answer

The probability that the block chain will accept a mistyped Bitcoin address as valid is one in 4.29 billion. While it is suggested that users copy and paste Bitcoin addresses, there is additional security for users who transfer them by hand.

Question 9

Which of the following two numbers do all Bitcoin addresses have to begin with?&#10;A)One or three.&#10;B)One or five.&#10;C)Three or five.&#10;D)One or seven.

Accepted Answer

All Bitcoin addresses have to begin with one or three. Because the addresses have 34 characters, the total number of possibilities is exponential.

Question 10

Which of the following is the default encryption for digital Bitcoin wallets?&#10;A)RSA cipher.&#10;B)Symmetric key.&#10;C)Hashing encryption.&#10;D)None of the above.

Accepted Answer

The default encryption for digital Bitcoin wallets is none of the above. Bitcoin wallets are actually, by default, unencrypted. Most Bitcoin users are tech-savvy and encrypt the wallets on their own.

Question 11

How does one user transfer a Bitcoin to another?&#10;A)Digital signature.&#10;B)Sharing their private key.&#10;C)Delivery via email.&#10;D)None of the above.

Accepted Answer

The answer of How does one user transfer a Bitcoin...

Question 12

When was the first mining difficulty increase?&#10;A)December 2009.&#10;B)March 2010.&#10;C)July 2010.&#10;D)November 2010.

Accepted Answer

The answer of When was the first mining difficulty increase?&#10;A)December...

Question 13

How many times has the mining difficulty decreased?&#10;A)Zero.&#10;B)One.&#10;C)Two.&#10;D)Four.

Accepted Answer

The answer of How many times has the mining difficulty...

Question 14

When did the generation difficulty pass 10,000?&#10;A)August 2009.&#10;B)April 2010.&#10;C)December 2010.&#10;D)March 2011.

Accepted Answer

The answer of When did the generation difficulty pass 10,000?&#10;A)August...

Question 15

How long does it typically take for others on the network to validate a transaction?&#10;A)Thirty seconds.&#10;B)Two minutes.&#10;C)Five minutes.&#10;D)Ten minutes.

Accepted Answer

The answer of How long does it typically take for...

Deck 7: Protocol