Quiz #365
Prompt: Crypto
❓ Quiz
Question 1
What is a blockchain?
A.
A centralized database managed by a single entity.
B.
A distributed, immutable ledger that records transactions.
C.
A type of digital currency used for online gaming.
D.
A software application for trading stocks.
Question 2
What is the primary purpose of 'mining' in Proof-of-Work (PoW) cryptocurrencies like Bitcoin?
A.
To create new cryptocurrencies out of thin air.
B.
To verify transactions and add them to the blockchain, earning rewards.
C.
To exchange one cryptocurrency for another.
D.
To secure personal crypto wallets from hackers.
Question 3
What is a 'crypto wallet'?
A.
A physical device used to store fiat currency.
B.
A digital address where you send money to buy crypto.
C.
A software application or physical device that stores public and private keys, allowing users to send and receive cryptocurrency.
D.
A platform for trading different cryptocurrencies.
Question 4
What is a 'smart contract'?
A.
A legal document signed between two parties for crypto investments.
B.
A self-executing contract with the terms of the agreement directly written into code on a blockchain.
C.
A regulated financial derivative based on cryptocurrency.
D.
An AI program that predicts crypto price movements.
Question 5
What does the acronym 'DeFi' stand for in the context of cryptocurrency?
A.
Decentralized Finance.
B.
Digital E-currency Federation.
C.
Distributed Electronic Funds.
D.
Decrypted Financial Initiative.
Question 6
What is the 'halving' event in Bitcoin?
A.
An event where the total supply of Bitcoin is cut in half.
B.
A scheduled event where the reward for mining new blocks is cut in half.
C.
When Bitcoin's price drops by 50%.
D.
The process of splitting one Bitcoin into two smaller units.
Question 7
What is the main difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX)?
A.
CEXs require users to store their own private keys, while DEXs do not.
B.
DEXs are regulated by government bodies, while CEXs are not.
C.
CEXs operate through an intermediary and require KYC, while DEXs allow peer-to-peer trading without an intermediary.
D.
CEXs only list major cryptocurrencies, while DEXs list all tokens.
Question 8
What is 'staking' in Proof-of-Stake (PoS) systems?
A.
The process of solving complex mathematical puzzles to validate transactions.
B.
Lending out cryptocurrency to earn interest on a centralized platform.
C.
Locking up cryptocurrency to support the network and earn rewards for validating transactions.
D.
The act of buying cryptocurrency for the first time.
Question 9
What is a 'stablecoin'?
A.
A cryptocurrency whose price is extremely volatile.
B.
A cryptocurrency backed by gold or other precious metals.
C.
A cryptocurrency designed to maintain a stable value relative to a fiat currency or other asset.
D.
A cryptocurrency used exclusively for international trade.
Question 10
What is a 'private key' in cryptocurrency?
A.
A public address used to receive cryptocurrency.
B.
A secret alphanumeric code that proves ownership of crypto funds and allows them to be spent.
C.
A password for logging into a crypto exchange.
D.
A unique identifier for a blockchain transaction.
