Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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Blockchain Fundamentals Flashcards

7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Blockchain Fundamentals flashcards as text

  1. What is the purpose of a cryptographic hash function in blockchain?

    Answer: To produce a fixed-size, deterministic fingerprint of arbitrary data

    Hash functions like SHA-256 convert any input into a fixed-length digest; even tiny input changes produce completely different outputs, making tampering detectable.

  2. Which consensus mechanism is used by the Bitcoin network?

    Answer: Proof of Work (PoW)

    Bitcoin uses Proof of Work, requiring miners to expend computational energy to find a hash below the network's difficulty target to add blocks.

  3. What is a 'UTXO' in Bitcoin's accounting model?

    Answer: An unspent transaction output that can be used as future input

    UTXOs (Unspent Transaction Outputs) are discrete coin amounts from prior transactions that serve as inputs when constructing new transactions.

  4. What is the 'blockchain trilemma' as described by Vitalik Buterin?

    Answer: The challenge of simultaneously achieving decentralization, security, and scalability

    The blockchain trilemma states that achieving all three of decentralization, security, and scalability at once is extremely difficult; improving one typically weakens another.

  5. In the context of blockchain, what is a 'mempool'?

    Answer: A staging area where unconfirmed transactions wait before being included in a block

    The memory pool (mempool) holds broadcast transactions that have not yet been picked up and confirmed by miners or validators.

  6. What does 'decentralization' mean in a blockchain network?

    Answer: Control and data are distributed across many independent nodes with no single point of authority

    Decentralization distributes control among many participants so no single entity can censor transactions, alter history, or shut down the network.

  7. What distinguishes a 'coinbase transaction' from regular transactions in Bitcoin?

    Answer: It is the first transaction in a block that creates new coins and collects fees for the miner

    A coinbase transaction has no inputs; it is created by the miner to mint the block subsidy and collect accumulated transaction fees as their reward.