Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ACF101 summer term > TOPIC 2 - BITCOIN/BLOCKCHAIN > Flashcards

TOPIC 2 - BITCOIN/BLOCKCHAIN Flashcards

1
Q

Whats a software protecol that allows multiple parties to operate

A

Blockchain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What data can be in a blockchain

A

Anything

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Some people think of a blockchain as what

A

append only transaction ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What properties does blockchain have

A

Being quickly and easily accessed and shared by many parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What network is a blockchain

A

a distributed and decentralized network

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does blockchain being “distributed mean”

A

Removes single point of failure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does blockchain being decentralized mean

A

Removes central authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does blockchain being immutable mean

A

Can add to it but hard to alter its history

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How are updates given

A

Packaged in blocks and chained together to allow an audit of prior history

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Ledger is broken up into what

A

Blocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Every block contains what

A

A hashed reference to the block before

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does blockchain being cryptographically secured mean

A

last line is repated as the first line in the next block

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What makes up blockchain

A

Blocks + chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Every blockchain setup is what

A

Different

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are transaction participants

A

Sender and receiver

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are transaction amounts

A

How much the bitcoin is plus transaction fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What needs to happen over a purchase

A

Proof the sender has the amounts being sent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What proof from the seller is needed

A

Proof the sender is authorizing the transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is another phrase for public key

A

Verification key

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is a public key

A

Public addresses - How others transact with you

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Another phrase for private key

A

Signing key

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a private key

A

A password

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Is it easy to generate a public key and what with

A

Yes with a private key

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

To authorize a transaction you do what

A

Sign over using a digital signature

25
Q

Other user can verify you have the private key

A

can observe your signature and public key

26
Q

What is in a block

A

A batch of transactions
A hash of the previous and current bock
A nonce
A timestamp

27
Q

What is a nonce

A

Random number

28
Q

Any user can authorize what

A

A block

29
Q

Bitcoin blockchain incentive’s users to authorize how

A

Paying the people with free bitcoin

30
Q

Authorizing a new block involves what

A

Proof of work

31
Q

Blockchains have what protocols

A

A consensus protocols

32
Q

what is the consensus protocol

A

Set of rules that determine what kinds of blocks can become part of the chain

33
Q

What are consensus protocols designed to do

A

resist malicious tampering with a blockchain

34
Q

What is bitcoins proof of work

A

Bitcoin’s consensus protocol

35
Q

Proof of work relies on what

A

A computational lottery to determine which block to add

36
Q

The participants agree what

A

That the longest chain of blocks is the “true” blockchain

37
Q

For an attacker to be guaranteed success they need what

A

More than 50% of the networks computational power

38
Q

Why is attacking bitcoin hard

A

Buying a majority of the computational power is very expensive so very unlikely

39
Q

Miners group what

A

Transactions together and make sure they are valid and add a nonce

40
Q

How do miners compete in the lottery

A

By trying to get a very small value of the hash by cycling through different nonces

41
Q

What do miners get that solve the problem

A

3.125 bitcoins - reward halves every 4 years
Transaction fees

42
Q

When a miner solves the task they do what

A

Broadcast it to every time they solve the puzzle

43
Q

Difficulty of the hashtag problem is re calibrated how often

A

every 2 weeks

44
Q

How often should a block be solved

A

every 10 mins

45
Q

Whats the proof of work with the lottery

A

As the hash has so many leading zeros is it very difficult so a hack is highly improbable

46
Q

Strength of proof of work

A

Great security

47
Q

Weakness in proof of work

A

Electricity cost of mining is enormous and transactions per second are small

48
Q

name of 2 blockchains

A

Permissionless blockchains
Permissioned blockchain

49
Q

Characteristics of a permissionless blockchain

A

anyone can join the network
Low processing time
Bitcoins blockchain

50
Q

Characteristics of permissioned blockchains

A

can put restrictions on who joins
Faster processing time as no proof of work

51
Q

Bitcoin was once thought of a method for what

A

Criminal transactions

52
Q

Has the finance industry came around to bitcoin

A

Yes

53
Q

What can blockchain technology do

A

verification of ownership
Efficient exchange of ownership

54
Q

What is verification of ownership

A

Can quickly check the immutable history recorded on a blockchain

55
Q

What is efficient exchange of ownership

A

Allows for direct transactions without trusted third party
Everybody treated the same

56
Q

Why remove the trusted 3rd party

A

No gatekeeper controls access
No ability to change ledger arbitrarily
No single point failure

57
Q

Why is no trusted 3rd party good for

A

Fees

58
Q

big picture implications of blockchain

A

Removal of many middle people
Trust in the network rather than government
Near zero transaction costs
Financial inclusion for the unbanked

59
Q
A

ACF101 summer term (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions