Privacy and Zero-Knowledge Innovations BDC Practice Questions (Page 8)

Questions 36–38

1. 36foundation · easy

   In a zero-knowledge proof, what is the fundamental property that distinguishes it from a traditional proof?

   • AThe prover reveals all intermediate computations to the verifier to ensure full transparency.
   • BThe proof is generated by a trusted third party and shared with both prover and verifier.
   • CThe verifier must perform the same computations as the prover to check the proof.
   • DThe prover convinces the verifier that a statement is true without revealing any information beyond the truth of the statement.
   Reveal Solution Discussion Select an answer first
2. 37expert · hard

   A privacy coin project must prevent double-spending while hiding transaction amounts and sender identities. They are considering using a combination of ring signatures and confidential transactions. What additional component is necessary to ensure the system is secure against double-spending?

   • AA stealth address to hide the recipient
   • BA key image to prevent the same input from being spent twice
   • CA range proof to ensure transaction amounts are non-negative
   • DA trusted setup to generate parameters
   Reveal Solution Discussion Select an answer first
3. 38application · medium

   A digital asset exchange wants to implement confidential transactions so that the amounts transferred between users are hidden from the public ledger, but the exchange still needs to prove to regulators that no new coins were created. Which mechanism should they use?

   • APublic key cryptography with a trusted third party
   • BMerkle tree root commitments
   • CPedersen commitments with range proofs
   • DDigital signatures on transaction inputs
   Reveal Solution Discussion Select an answer first