Unit-1
Note: Blockchain was initiated by an individual or group of individuals under the pseudonym Satoshi
Nakamoto.
Bitcoin was initiated by an individual or group of individuals under the pseudonym Satoshi
Nakamoto.
1. What is a blockchain?
A) A type of cryptocurrency
B) A decentralized digital ledger technology
C) A computer program
D) A type of database used in traditional systems
Answer: B) A decentralized digital ledger technology
2. Which of the following is true about blockchain technology?
A) It allows central authority to control data
B) It can be used for creating secure, transparent transactions
C) It is only used for cryptocurrency
D) It is a form of traditional banking system
Answer: B) It can be used for creating secure, transparent transactions
3. What does a blockchain "block" contain?
A) Transaction details
B) Digital signatures
C) A hash of the previous block
D) All of the above
Answer: D) All of the above
4. Which consensus algorithm is commonly used in Bitcoin's blockchain?
A) Proof of Work (PoW)
B) Proof of Stake (PoS)
C) Delegated Proof of Stake (DPoS)
D) Practical Byzantine Fault Tolerance (PBFT)
Answer: A) Proof of Work (PoW)
5. In a blockchain, what is the role of a miner?
A) To validate and record transactions
B) To spend cryptocurrency
C) To create blocks in the blockchain
D) Both A and C
Answer: D) Both A and C
6. Which of the following is NOT a benefit of blockchain technology?
A) Transparency
B) Security through encryption
C) Centralized control
D) Immutability
Answer: C) Centralized control
7. Which is a key feature of blockchain that enhances security?
A) Data is stored in a centralized server
B) Transactions are encrypted and time-stamped
C) All data is public without any encryption
D) Blockchain allows for easy data deletion
Answer: B) Transactions are encrypted and time-stamped
8. What is a "smart contract" in blockchain?
A) A legal document that authorizes cryptocurrency transactions
B) A self-executing contract with the terms of the agreement directly written into code
C) A contract for cryptocurrency mining
D) A contract that requires human intervention to execute
Answer: B) A self-executing contract with the terms of the agreement directly written into code
9. Which of the following blockchain platforms supports smart contracts?
A) Ethereum
B) Bitcoin
C) Litecoin
D) Dogecoin
Answer: A) Ethereum
10. How are transactions added to a blockchain?
A) By a central authority
B) By miners or validators
C) By the government
D) By a bank
Answer: B) By miners or validators
11. What is the main purpose of the "hash" in a blockchain?
A) To encrypt the transaction data
B) To verify the identity of the users
C) To maintain the integrity of the data and ensure security
D) To mine new cryptocurrencies
Answer: C) To maintain the integrity of the data and ensure security
[Link] is crowdfunding?
A) A way to raise capital for a business by asking for small contributions from many people
B) A form of government loan
C) A type of venture capital investment
D) A method of traditional bank financing
Answer: A) A way to raise capital for a business by asking for small contributions from many people
[Link] of the following is a popular crowdfunding platform?
A) Kickstarter
B) Apple Pay
C) Google Ads
D) Amazon Prime
Answer: A) Kickstarter
14. What is the primary benefit of crowdfunding for startups?
A) It provides instant government grants
B) It allows raising funds without giving up equity
C) It helps to develop a product quickly without customer feedback
D) It guarantees high returns for investors
Answer: B) It allows raising funds without giving up equity
15. What type of crowdfunding involves offering investors ownership in a company in exchange for
funding?
A) Reward-based crowdfunding
B) Equity crowdfunding
C) Debt crowdfunding
D) Donation-based crowdfunding
Answer: B) Equity crowdfunding
16. In reward-based crowdfunding, what do backers typically receive in exchange for their
contribution?
A) Equity in the company
B) A monetary return on investment
C) A reward or product related to the campaign
D) Nothing, it's purely a donation
Answer: C) A reward or product related to the campaign
17. What is "donation-based crowdfunding"?
A) A fundraising method where backers donate money with no expectation of any return
B) A way to sell shares of a company to raise funds
C) A form of debt where lenders expect repayment with interest
D) A method to raise funds through the sale of products
Answer: A) A fundraising method where backers donate money with no expectation of any return
18. What is a currency?
A) A digital form of payment
B) A physical object used as a medium of exchange
C) A form of investment that earns dividends
D) A commodity like gold used for trade
Answer: B) A physical object used as a medium of exchange
19. Which of the following is an example of a traditional (fiat) currency?
A) Bitcoin
B) Ethereum
C) Dollar (USD)
D) Litecoin
Answer: C) Dollar (USD)
20. What is cryptocurrency?
A) A type of physical currency used worldwide
B) A digital or virtual currency that uses cryptography for security
C) A traditional currency backed by gold
D) A digital form of traditional fiat currency
Answer: B) A digital or virtual currency that uses cryptography for security
21. Which of the following is the first cryptocurrency ever created?
A) Litecoin
B) Bitcoin
C) Ethereum
D) Dogecoin
Answer: B) Bitcoin
22. What is the main technology behind most cryptocurrencies?
A) Blockchain technology
B) Cloud computing
C) Virtual reality
D) Artificial Intelligence
Answer: A) Blockchain technology
23. How does cryptocurrency work?
A) Through a central bank that manages the transactions
B) By using a decentralized network of computers (nodes) that validate transactions
C) By using a physical ledger kept in a bank vault
D) By allowing any user to print and exchange coins at will
Answer: B) By using a decentralized network of computers (nodes) that validate transactions
24. What is the purpose of "mining" in cryptocurrency?
A) To create new coins and validate transactions on the blockchain
B) To track government-issued currencies
C) To print new money in a centralized bank
D) To exchange traditional currency for cryptocurrency
Answer: A) To create new coins and validate transactions on the blockchain
25. Which of the following is TRUE about cryptocurrencies?
A) Cryptocurrencies are regulated by a central authority like a government
B) Transactions made with cryptocurrencies are completely anonymous
C) Cryptocurrencies are exchanged only through physical coins
D) Cryptocurrencies can be transferred globally without the need for intermediaries
Answer: D) Cryptocurrencies can be transferred globally without the need for intermediaries
26. What is a "wallet" in the context of cryptocurrency?
A) A physical wallet used to store paper currency
B) A device that generates the physical coins
C) A software or hardware system used to store and manage cryptocurrencies
D) A system for printing new coins
Answer: C) A software or hardware system used to store and manage cryptocurrencies
27. Which consensus mechanism is used by Bitcoin to validate transactions?
A) Proof of Stake (PoS)
B) Proof of Work (PoW)
C) Proof of Authority (PoA)
D) Delegated Proof of Stake (DPoS)
Answer: B) Proof of Work (PoW)
UNIT-2
Extensibility of Blockchain Concepts
1. What does "extensibility" in the context of blockchain refer to?
A) The ability to add new functionalities or features to a blockchain network without
disrupting its core principles
B) The ability to make blockchain transactions faster
C) The ability to reduce blockchain energy consumption
D) The ability to store unlimited data on the blockchain
Answer: A) The ability to add new functionalities or features to a blockchain network without
disrupting its core principles
2. Which of the following blockchain concepts is commonly used to ensure extensibility by adding
smart contract functionalities?
A) Proof of Work (PoW)
B) Sidechains
C) Tokenization
D) Merkle Trees
Answer: B) Sidechains
3. What is the challenge of extending blockchain networks?
A) Ensuring that changes don’t compromise the security or decentralization of the network
B) Lowering the transaction fees
C) Making blockchains easier to understand
D) Simplifying the mining process
Answer: A) Ensuring that changes don’t compromise the security or decentralization of the network
Digital Identity Verification
4. What is a primary benefit of using blockchain for digital identity verification?
A) It allows users to create multiple identities easily
B) It ensures that identity data is tamper-resistant and controlled by the user
C) It eliminates the need for passwords
D) It allows governments to centralize identity data
Answer: B) It ensures that identity data is tamper-resistant and controlled by the user
5. Which of the following can be a potential use case of blockchain in digital identity?
A) Securing medical records
B) Digital voting systems
C) Online payment authentication
D) All of the above
Answer: D) All of the above
6. How does blockchain contribute to reducing identity theft in digital identity verification?
A) By providing a central database for storing user information
B) By ensuring that identity data is encrypted and decentralized, making it harder to hack
C) By making the verification process slower and more complex
D) By providing an easy way to share personal information
Answer: B) By ensuring that identity data is encrypted and decentralized, making it harder to hack
Blockchain Neutrality
7. What does the concept of "neutrality" in blockchain mean?
A) The blockchain network can be controlled by any government or central authority
B) The blockchain treats all transactions and participants equally without bias or
discrimination
C) Only specific groups can access the blockchain network
D) The blockchain can only be used for cryptocurrencies
Answer: B) The blockchain treats all transactions and participants equally without bias or
discrimination
8. Which of the following is a benefit of blockchain neutrality?
A) Centralized control over network rules
B) Limiting the participation of certain countries or organizations
C) Ensuring that no party has full control over the blockchain's governance
D) Faster transaction speeds
Answer: C) Ensuring that no party has full control over the blockchain's governance
9. Why is blockchain neutrality an important feature for decentralized networks?
A) It ensures that participants do not need to trust a central authority
B) It allows for faster transaction speeds
C) It makes the blockchain more efficient
D) It enables government oversight
Answer: A) It ensures that participants do not need to trust a central authority
Digital Art
10. What is a key advantage of using blockchain in digital art?
A) It guarantees physical storage of the artwork
B) It allows artists to sell art without the need for physical galleries or intermediaries
C) It prevents all forms of digital piracy
D) It automatically creates the artwork for the artist
Answer: B) It allows artists to sell art without the need for physical galleries or intermediaries
11. What does an NFT (Non-Fungible Token) represent in the context of digital art?
A) A physical copy of the artwork
B) A certificate of authenticity and ownership of a unique digital asset
C) A digital currency used for buying digital art
D) A standard file format for digital art
Answer: B) A certificate of authenticity and ownership of a unique digital asset
12. Which blockchain platform is most commonly associated with the creation and exchange of NFTs
for digital art?
A) Bitcoin
B) Ethereum
C) Litecoin
D) Ripple
Answer: B) Ethereum
13. How does blockchain technology ensure the provenance of digital art?
A) By tracking the artwork’s digital signature and ownership history on an immutable ledger
B) By allowing artists to directly print and sign copies of their digital art
C) By making it possible for anyone to copy the artwork without any restrictions
D) By encrypting the artwork, making it impossible to view
Answer: A) By tracking the artwork’s digital signature and ownership history on an immutable ledger
14. What makes NFTs unique in comparison to cryptocurrencies like Bitcoin or Ethereum?
A) NFTs are divisible into smaller units
B) NFTs are fungible, like cryptocurrencies
C) NFTs represent unique, non-interchangeable items or assets
D) NFTs are only used for gaming purposes
Answer: C) NFTs represent unique, non-interchangeable items or assets
UNIT-3
Gridcoin
1. What is Gridcoin primarily used for?
A) Mining cryptocurrency for profit
B) Supporting scientific research through distributed computing
C) Providing a platform for NFTs (Non-Fungible Tokens)
D) Storing large amounts of data for the blockchain
Answer: B) Supporting scientific research through distributed computing
2. What is the key feature of Gridcoin that differentiates it from traditional cryptocurrencies like
Bitcoin?
A) It uses Proof of Work (PoW) for mining
B) It rewards users for contributing to scientific research through the BOINC platform
C) It only operates on private blockchains
D) It supports only gaming applications
Answer: B) It rewards users for contributing to scientific research through the BOINC platform
3. Which distributed computing platform does Gridcoin integrate with for supporting scientific
research?
A) SETI@home
B) BOINC (Berkeley Open Infrastructure for Network Computing)
C) Ethereum
D) Bitcoin Cash
Answer: B) BOINC (Berkeley Open Infrastructure for Network Computing)
4. What is the primary consensus mechanism used by Gridcoin to verify transactions and distribute
rewards?
A) Proof of Stake (PoS)
B) Proof of Work (PoW)
C) Proof of Research (PoR)
D) Proof of Authority (PoA)
Answer: C) Proof of Research (PoR)
5. How does Gridcoin incentivize contributors to scientific research?
A) By paying users with fiat currency
B) By rewarding users with Gridcoin tokens based on the computational power they
contribute
C) By offering ownership stakes in scientific projects
D) By providing interest on cryptocurrency holdings
Answer: B) By rewarding users with Gridcoin tokens based on the computational power they
contribute
FoldingCoin
6. What is the primary purpose of FoldingCoin?
A) To support cryptocurrency mining for personal profit
B) To aid in protein folding simulations for scientific research, specifically in the field of
medicine
C) To provide a decentralized gaming platform
D) To store NFTs and digital art
Answer: B) To aid in protein folding simulations for scientific research, specifically in the field of
medicine
7. Which scientific project does FoldingCoin support by distributing rewards for computing power?
A) SETI@home
B) Folding@home (FAH)
C) Bitcoin mining
D) Ethereum's smart contracts
Answer: B) Folding@home (FAH)
8. How are FoldingCoin rewards distributed to participants?
A) Based on the number of blocks mined
B) Based on the amount of computational power contributed to the Folding@home project
C) Through regular interest payments
D) By staking the tokens in a decentralized finance (DeFi) protocol
Answer: B) Based on the amount of computational power contributed to the Folding@home project
9. What kind of scientific research is facilitated by FoldingCoin and the Folding@home platform?
A) Climate change modeling
B) Drug discovery and understanding diseases like Alzheimer's and cancer
C) Financial modeling
D) Space exploration simulations
Answer: B) Drug discovery and understanding diseases like Alzheimer's and cancer
10. Which of the following is TRUE about the FoldingCoin blockchain?
A) It is a fork of Bitcoin, focused on supporting protein folding simulations
B) It allows users to earn tokens by verifying blockchain transactions
C) It is used for decentralized gaming
D) It only functions on private blockchains
Answer: A) It is a fork of Bitcoin, focused on supporting protein folding simulations
