Assessment 1

4 out of 5

1. The record of all spendable bitcoin forms a database referred to as what?

   1. The UTXO set. ✓

   2. The ledger.

   3. The blockchain.

   4. The rapid access memory database.

2. What is held within the UTXO set?

   1. The outputs that meet both the global network rules and the local node policies.

   2. Every spendable output which has not yet been used as an input to a transaction. ✓

   3. The history of every transaction made on the network.

   4. The Merkle proofs and transaction output scripts of all bitcoins.

3. When a node joins the network it is required to _______. This involves downloading and validating a complete set of all of the blocks in the longest valid chain of proof of work, and using the information contained within to reconstruct the current state of the ______.

   1. validate the most recent block, block chain.

   2. perform proof-of-work, block being validated.

   3. conduct an initial block download, UTXO set. ✓

   4. download the UTXO set, network.

4. How can nodes build their own working blockchain?

   1. By only retaining the spendable transactions.

   2. Through a logical removal of redundant information. ✓

   3. With the help of trusted parties providing specific UTXO sets.

   4. All of the above.

5. Users can utilize their own working blockchain using only _____, a service can receive transactions and their corresponding ______, using them to create _____ database of personalized information for the user.

   1. A UTXO set, blockheaders, a personalized.

   2. the block headers, Merkle proofs, an immutable. ✓

   3. the desired TXIDs, UTXO set, an optimized.

   4. the Merkle proofs, blockheaders, a secure.