Gold and Bitcoin certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Gold and Bitcoin exam and earn Gold and Bitcoin certificate.
Table of Contents
- Question 1
- Answer
- Explanation
- Question 2
- Answer
- Explanation
- Question 3
- Answer
- Question 4
- Answer
- Explanation
- Question 5
- Answer
- Question 6
- Answer
- Explanation
- Question 7
- Answer
- Explanation
- Question 8
- Answer
- Explanation
- Question 9
- Answer
- Explanation
- Question 10
- Answer
- Explanation
- Question 11
- Answer
- Question 12
- Answer
- Explanation
- Question 13
- Answer
- Explanation
- Question 14
- Answer
- Question 15
- Answer
- Explanation
Question 1
Blockchain was first proposed in the famous Satoshi Nakamoto white paper.
A. True
B. False
Answer
B. False
Explanation
Actually, blockchain was developed in 1991 by Haber and Stornetta as a way to keep track of versions of a document.
Question 2
One advantage of blockchain is that it enables the efficient exchange of ownership—without relying on a middle layer—in a system where everybody is a peer.
A. True
B. False
Answer
A. True
Explanation
There is no customer vs. banker, retail vs. institutional investor. Everyone is treated equally. It is an example of financial democracy.
Question 3
Check all problems that blockchain potentially solves:
A. Slow and expensive wire transfers
B. Counterfeiting of currency
C. A future pandemic
D. Slow and expensive title searches for property
E. Having to wait one day before taking ownership of stock
Answer
A. Slow and expensive wire transfers
B. Counterfeiting of currency
D. Slow and expensive title searches for property
E. Having to wait one day before taking ownership of stock
Question 4
Hashes are often represented by 64 hexadecimals, meaning 0-9 and a-f.
A. True
B. False
Answer
A. True
Explanation
In hexadecimal, the number 10=a, 11=b,…15=f, 16=10, … This is an example of base 16 counting. In base 2, we count 0=0, 1=1, 2=10, 3=11, 4=100, …. It is easier to write down 64 characters for a SHA-256 rather than 256 characters.
Question 5
0b14d501a594442a01c6859541bcb3e8164d183d32937b851835442f69d5c94e is a SHA-256 of what? Use SHA-256 program.
A. Qwerty
B. 111111
C. 1q2w3e
D. password1
Answer
D. password1
Question 6
To brute force at SHA-256, the number of tries would exceed the number of atoms in the known universe.
A. True
B. False
Answer
A. True
Explanation
We talked about the energy needed. Even with harvesting all the energy of the sun by putting a Dyson ball around the sun for 32 years, we would only get to 2182, and we need 2255.
Question 7
If you are the first to come up with the nonce with 19 leading zeros, you broadcast to the network that you have found the solution, and the network verifies and allows you to post your block, which includes two types of fees for you: the coinbase fee of (currently) 3.125 bitcoin and transaction fees.
A. True
B. False
Answer
A. True
Explanation
Currently, the coinbase (newly created bitcoin) fee is much greater. Transaction fees amount to roughly 1% of the reward. Note that every four years, the coinbase fee halves. By 2041, the fee will be zero.
Question 8
To attack the bitcoin blockchain, an attacker needs 67% of the network’s hashing power.
A. True
B. False
Answer
B. False
Explanation
The attacker needs only 51% of the power. Later in the course, we will go through what an attack would look like.
Question 9
Bitcoin blocks are posted approximately every 10 minutes. As new (faster) computers come online, the block posting will become more frequent—perhaps approaching one block every few seconds in the future.
A. True
B. False
Answer
B. False
Explanation
The bitcoin program targets 10 minutes. If new computing comes onto the network and block times decrease, the bitcoin program adjusts the difficulty (say 20 leading zeros rather than 19). As computing comes off the network (e.g., when China banned mining), the difficulty decreases.
Question 10
In contrast to bitcoin, the U.S. dollar is fully collateralized, and this explains its popularity.
A. True
B. False
Answer
B. False
Explanation
Historically, the dollar was fully collateralized with gold, but that ended on August 15, 1971. The U.S. dollar is not collateralized, and this is why we call it a fiat currency.
Question 11
Which are characteristics of a cyptocurrency:
A. No double spending
B. Censorship resistance
C. Cryptographic scarcity
D. User sovereignty
E. Portability
Answer
A. No double spending
B. Censorship resistance
C. Cryptographic scarcity
D. User sovereignty
E. Portability
Question 12
A private key is a long random number.
A. True
B. False
Answer
A. True
Explanation
The private key is a 256-bit random number. Given that it is so long, it is nearly impossible to guess.
Question 13
Suppose I have 0.80 BTC and I need to send you 0.75 BTC. The way it works in BTC is that I send you 0.80 BTC and you send me back the “change,” which is 0.05 BTC.
A. True
B. False
Answer
B. False
Explanation
Actually, if I send you the full 0.80, there is no guarantee you will give me change. The way the bitcoin transaction works is that I create a new private key. Given that I own 0.80 BTC, I send you 0.75, and I send myself 0.05 BTC. In the end, I have a private key that controls the 0.05 BTC.
Question 14
Which problems does DeFi potentially solve?
A. Expensive, slow wire transfers
B. Future global pandemic
C. Opacity
D. Lack of interoperability
E. Lack of financial inclusion
Answer
E. Lack of financial inclusion
Question 15
It is impossible to use any form of BTC on the Ethereum blockchain.
A. True
B. False
Answer
B. False
Explanation
We talked about wrapping a bitcoin and issuing a token on the Ethereum blockchain, much in the same way that stablecoins operate, where fiat currency is used as collateral.