Bitcoin Blockchain Architecture BBLC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A non-profit organization wants to accept donations in Bitcoin but is concerned about the volatility of the cryptocurrency. The organization's treasurer asks: 'Why would donors choose to send Bitcoin instead of a traditional bank transfer?' Which response best addresses the value proposition of Bitcoin as a decentralized digital currency?

   • ABitcoin transactions are completely anonymous, so donors can give without revealing any information.
   • BBitcoin's value is stable, so the organization does not need to worry about exchange rate fluctuations.
   • CBitcoin enables peer-to-peer transfers without a central intermediary, which can reduce reliance on banks and enable cross-border donations with lower fees and faster settlement in some cases.
   • DBitcoin is backed by gold, so it is a safe store of value.
   Reveal Solution Discussion Select an answer first
2. 32foundation · easy

   What is the primary purpose of proof-of-work in the Bitcoin network?

   • ATo achieve consensus on the state of the ledger and secure the network against attacks
   • BTo encrypt transaction data
   • CTo generate new Bitcoin addresses
   • DTo verify the identity of users
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   What is the primary function of a Bitcoin wallet?

   • ATo validate the entire blockchain
   • BTo mine new bitcoins
   • CTo store private keys and sign transactions
   • DTo store the blockchain ledger
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   What is the role of inputs in a Bitcoin transaction?

   • ATo reference previous unspent outputs that are being spent
   • BTo store the transaction's timestamp
   • CTo calculate the transaction fee
   • DTo specify the recipient's address
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6. 35application · medium

   A user wants to receive Bitcoin from a friend. The user is concerned about privacy and wants to use a new address for each transaction. What is the best practice for the user's wallet to achieve this?

   • AGenerate a new address from the same private key for each transaction.
   • BCreate a new wallet for each transaction and discard the old one.
   • CReuse the same address but change the private key after each transaction.
   • DUse a hierarchical deterministic (HD) wallet that derives a new address from a master seed for each transaction.
   Reveal Solution Discussion Select an answer first