Bitcoin

Question 1

Bitcoin Problems

Answer 1

Power Gov’t controls worth of currency
Trust eliminates pipes and rails of banks and payment systems
Opportunity eliminates fees of pipes/rails/friction

Question 2

Hashing

Answer 2

process of transforming any given key or a string of characters into another value

Question 3

Double Spend

Answer 3

check writing, spending $ twice

Question 4

Cryptography

Answer 4

study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents

Question 5

SHA 256

Answer 5

secure hashing algorithm 64 hexadecimal

Question 6

Nonce

Answer 6

only used once

Question 7

immutability

Answer 7

cannot be changed

Question 8

Mining

Answer 8

1st to create new hash, wins (gets fees in BTC)

Question 9

incentive

Answer 9

mining “block” reward & transaction fees every certain # of blocks, reward gets cut in 1/2

Question 10

concensus

Answer 10

when 1 wins, everyone else agrees

Question 11

Proof of Work

Answer 11

miners processing btc. Compete to produce the winning hash and are rewarded with BTC

Question 12

Block Reward

Answer 12

Miners get bitcoin rewards by successfully mining a bitcoin block in the blockchain system. The miner claims the reward by adding it to the beginning of the block. At the time that bitcoin started, the bitcoin block reward was worth 50 bitcoin.

Question 13

Decentralized Ledger

Answer 13

Accounting entries, built on each other - transparent to All, and agreed upon by all

Question 14

Cryptocurrency and blockchain aren’t mentioned in the Whitepaper

Answer 14

1 MB goes into a single block

There’s more money in mining than trying to hack it (energy efficiency)

Question 15

What percent of validators is needed to hack the system

Answer 15

51% Attack (now more like 80-85%)

Question 16

transparency

Answer 16

every transaction/block/wallet, etc is transparent

Question 17

Cyberpunks

Answer 17

original creators of BTC (?)

Question 18

Forks

Hard Fork

Answer 18

miners must approve

discrepancy, so new blockchain is created (old block still runs)

Question 19

Taproot

Answer 19

update to btc code (2018)

added privacy, allows code off block (smart Contracts)

Question 20

Store of Value

Answer 20

only 21M BTC, transparent, hedge against inflation

Question 21

Lightening Network

Answer 21

slow, 10min/block, transact off block then added it back in
Decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants

Question 22

3 reasons to invest in BTC

Answer 22

Revolution (censorship resistant, x-border transportable)
Macro store of value, inflation hedge
Micro

Question 23

Hodlers

Answer 23

never selling btc