CBP Bitcoin Script and Protocol Development Flashcards

What is a 'timelock' in Bitcoin scripting?

Answer: A script condition that prevents spending until a specific block height or time

Timelocks (via OP_CHECKLOCKTIMEVERIFY or OP_CHECKSEQUENCEVERIFY) create Bitcoin scripts that cannot be spent until a certain block height or time has passed.

What is a multi-signature (multisig) transaction?

Answer: A transaction requiring signatures from multiple private keys to be spent

A multisig transaction requires a defined number of signatures (e.g., 2-of-3) from multiple private keys before the funds can be spent.

What is P2SH (Pay-to-Script-Hash)?

Answer: A script type where funds are sent to a hash of a redemption script

P2SH allows complex spending conditions to be hashed into a standard address format, with the full redeem script only revealed when spending the funds.

What is the purpose of the Bitcoin mempool?

Answer: A temporary holding area for unconfirmed transactions waiting to be included in a block

The mempool (memory pool) is where unconfirmed transactions wait until a miner selects them for inclusion in the next block.

What is 'Replace-By-Fee' (RBF) in Bitcoin transactions?

Answer: A mechanism allowing a sender to replace an unconfirmed transaction with one paying a higher fee

RBF (BIP 125) allows senders to replace an unconfirmed transaction in the mempool with a higher-fee version to speed up confirmation.

What does the term 'block subsidy' refer to in Bitcoin?

Answer: The newly created Bitcoin awarded to miners per block, separate from transaction fees

The block subsidy is the fixed amount of new Bitcoin created and given to miners per block, which halves approximately every four years in an event called the halving.