Blockchain & Cryptocurrency Quiz

Question 1

Bitcoin was created by a person (or group) using the pseudonym Satoshi Nakamoto. When was the Bitcoin whitepaper published?

Accepted Answer

2008

Answer

2005

Answer

2010

Answer

2012

Question 2

What is a 'blockchain' and what problem does it solve?

Accepted Answer

A distributed ledger of transactions maintained by multiple computers simultaneously — solving the 'double-spending problem' in digital currency

Answer

A type of encrypted database for storing passwords

Answer

A method of encrypting internet communications

Answer

A type of smart contract platform

Question 3

What is 'mining' in the context of Bitcoin?

Accepted Answer

The process by which new Bitcoin transactions are verified and added to the blockchain, rewarding miners with new Bitcoin

Answer

Extracting rare digital assets from hidden game locations

Answer

Searching the dark web for undervalued cryptocurrencies to buy

Answer

A form of digital contract negotiation

Question 4

Ethereum is different from Bitcoin in what key way?

Accepted Answer

Ethereum is a programmable blockchain that supports 'smart contracts' and decentralised applications (dApps)

Answer

Ethereum is faster and cheaper to use than Bitcoin

Answer

Ethereum has a fixed supply like Bitcoin

Answer

Ethereum was created by Satoshi Nakamoto

Question 5

What is a 'smart contract'?

Accepted Answer

Self-executing code stored on a blockchain that automatically enforces and executes contract terms when conditions are met

Answer

A legally binding digital agreement signed with an electronic signature

Answer

An AI-generated contract that adapts its terms over time

Answer

A multi-signature security system for large financial transactions

Question 6

NFT stands for what and what makes it different from a regular digital file?

Accepted Answer

Non-Fungible Token — a unique cryptographic token on a blockchain representing ownership of a specific digital (or physical) item

Answer

New Financial Token — a type of cryptocurrency

Answer

Network-Free Transfer — a blockchain transaction method

Answer

Non-Fiat Transaction — a cryptocurrency not backed by government currency

Question 7

What is 'DeFi' (Decentralised Finance)?

Accepted Answer

Financial services (lending, borrowing, trading) built on blockchain without traditional banks or intermediaries

Answer

Government-issued digital currencies (CBDCs)

Answer

A type of cryptocurrency exchange that is registered with financial regulators

Answer

Decentralised physical currency (eliminating digital payments)

Question 8

What is the 'Bitcoin halving' and why does it matter?

Accepted Answer

Approximately every 4 years, the reward for mining a Bitcoin block is cut in half — a deflationary mechanism written into Bitcoin's code

Answer

When the Bitcoin network splits into two competing chains

Answer

When Bitcoin's price drops 50% from its all-time high

Answer

A protocol update that doubles Bitcoin's transaction speed

Question 9

What is a 'crypto wallet' and does it actually store cryptocurrency?

Accepted Answer

Software or hardware that stores private keys that prove ownership of cryptocurrency — the coins themselves exist on the blockchain, not in the wallet

Answer

A physical device that stores cryptocurrency tokens

Answer

An account on a cryptocurrency exchange like Binance or Coinbase

Answer

A bank account denominated in cryptocurrency

Question 10

What was the 'DAO hack' of 2016 and how was it resolved controversially?

Accepted Answer

A hacker exploited a vulnerability in The DAO smart contract and drained $60M worth of ETH — resolved by a controversial hard fork that reversed the theft

Answer

A hacker stole private keys from Coinbase's servers

Answer

Mt. Gox exchange was hacked, losing 850,000 Bitcoin

Answer

A crypto exchange was hacked and the stolen funds were tracked and returned

Question 11

What is 'Proof of Stake' (PoS) and how does it differ from Proof of Work (PoW)?

Accepted Answer

PoS validates transactions based on the amount of cryptocurrency a validator has 'staked' (locked up) as collateral; PoW requires energy-intensive computational work

Answer

PoS requires staking physical collateral; PoW requires solving puzzles with computers

Answer

PoS is used only by Ethereum; PoW is used only by Bitcoin

Answer

PoS is faster but less secure; PoW is slower but more secure

Question 12

What is 'HODL' in cryptocurrency culture?

Accepted Answer

Both 'a misspelling of hold' and is now also interpreted as 'Hold On for Dear Life'

Answer

A technical trading strategy

Answer

A deliberate misspelling of 'hold' from a 2013 Bitcoin forum post — meaning to hold cryptocurrency long-term despite volatility

Answer

An acronym for 'Hold On for Dear Life'

Question 13

The collapse of FTX in November 2022 was a landmark event in crypto. What happened?

Accepted Answer

FTX's founder Sam Bankman-Fried was found to have been using customer funds for trading and investments — the exchange collapsed and SBF was arrested and convicted

Answer

FTX was hacked by North Korean state actors who stole $600M

Answer

A regulatory crackdown forced FTX to shut down operations

Answer

FTX's parent company Binance deliberately drove FTX into bankruptcy

Question 14

What is a 'decentralised exchange' (DEX) and how does it differ from Coinbase or Binance?

Accepted Answer

A DEX allows trading directly between users via smart contracts without a centralised company holding funds or controlling the platform

Answer

A DEX is based in a country without cryptocurrency regulations

Answer

A DEX is exclusively for large institutional traders

Answer

A DEX charges no trading fees unlike centralised exchanges

Question 15

What is 'Bitcoin Pizza Day' and why is it famous?

Accepted Answer

On May 22, 2010, programmer Laszlo Hanyecz paid 10,000 BTC for two pizzas — the first real-world Bitcoin transaction. Those coins would be worth hundreds of millions today

Answer

A Domino's marketing campaign accepting Bitcoin for pizza

Answer

A Bitcoin conference tradition of giving away free pizza

Answer

The day Satoshi Nakamoto revealed their identity at a pizza shop

Question 16

What is a 'stablecoin' and what problem does it solve?

Accepted Answer

A cryptocurrency designed to maintain a stable value (usually pegged 1:1 to USD) — solving crypto's extreme price volatility for everyday transactions

Answer

A cryptocurrency issued by a stable government

Answer

A cryptocurrency backed by physical gold

Answer

A cryptocurrency that cannot be sold or traded, only held

Question 17

What is 'gas' in Ethereum?

Accepted Answer

A fee paid to compensate for the computing energy required to process and validate transactions on the Ethereum network

Answer

The electricity cost of running mining hardware

Answer

The price of ETH on exchanges

Answer

A measurement of transaction speed on the Ethereum network

Question 18

What is 'Web3' and how does it differ from Web2?

Accepted Answer

Web3 describes a vision of a decentralised internet built on blockchains where users own their data, identity, and assets — contrasting with Web2's centralised platforms (Facebook, Google)

Answer

Web3 is the third version of Internet Explorer

Answer

Web3 is the next generation of internet infrastructure (fibre, 5G)

Answer

Web3 is exclusively the metaverse

Question 19

Mt. Gox was a major early Bitcoin exchange that collapsed in 2014. What happened?

Accepted Answer

Mt. Gox lost approximately 850,000 Bitcoin (then ~$450M, later worth billions) to hackers over several years and filed for bankruptcy

Answer

Mt. Gox was shut down by US government regulators

Answer

Mt. Gox's founder fled with customer funds to Japan

Answer

Mt. Gox was a Ponzi scheme that collapsed when it ran out of new investors

Question 20

What is the 'cryptographic hash function' that is central to how blockchain works?

Accepted Answer

A one-way mathematical function that converts any input into a fixed-length output — the same input always produces the same hash, and it is computationally infeasible to reverse

Answer

An algorithm that encrypts data for privacy

Answer

A method for compressing transaction data to save storage space

Answer

The algorithm that generates new cryptocurrency addresses