Introduction Assessment 3

1.Nodes assemble new transactions into block templates against which they perform_______ i) When a valid ______ ii) solution is found, the block becomes a ________ iii) for all of the transactions it includes.

i) proof-of-work calculations, ii) script, iii) time-record

i) hashpower, ii) proof-of-work, iii) secure payment layer

i) proof-of-work calculations, ii) proof-of-work, iii) proof of existence timestamp

i) noncing, ii) block, iii) timestamp

2.Which statements are true?

Bitcoin protects both sender and receiver by providing sound money to protect users from monetary debasement

Bitcoin protects both sender and receiver by hiding one's identity, making transactions private, making transactions reversible.

Bitcoin protects both sender and receiver by providing authenticity of payment

Bitcoin protects both sender and receiver by providing irreversible transactions and the use of script to define conditions of future transfer.

3.What does ECDSA stand for and how does it protect those receiving transactions?

Elliptic Curve Digital Signature Algorithm provides a secure and easily verifiable knowledge proof for the purposes of payment authentication.

Elliptic Curve Digital Secret Algorithm provides an anonymous way to send and receive transactions.

Elliptic Curve Digital Seed Algorithm is how your Bitcoin wallet seed is generated.

Elliptic Curve Digital SHA-256 Algorithm is the hashing algorithm of Bitcoin’s proof-of-work.

4.As transactions are created, network nodes assemble them into ________ i) against which they perform ________ ii) When a valid _______ iii) is found, the block becomes a ___________ iv) for all of the transactions it includes.

i) block templates, ii) proof-of-work, iii) proof-of-work solution, iv) proof of existence timestamp

i) the blockchain, ii) hashpower, iii) proof-of-work, iv) proof-of-existence

i) blocks, ii) hashing, iii) hash solution, iv) proof-of-work timestamp

i) block templated, ii) proof-of-work, iii) timestamp, iv) proof of existence

5.Which statements are true?

Each valid block represents a consensus driven agreement on the order in which events could be recorded by the network.

Blocks are added in chronological order and as more work is added to the chain of blocks, this serves as proof that transactions in a given block were validated and accepted by the network participants collectively prior to the time indicated in the block header.

As long as there is a hash power majority pool of nodes who are competing to collect and append new transactions to the longest chain of proof of work, the system’s security is maintained.

Attackers looking to overpower the network in order to maintain a chain of work that includes fraudulent activity are burdened by the high cost of performing proof-of-work. This expenditure is financially nonviable to maintain, eventually leading to the re-emergence of the honest chain as the legitimate record of activity on the ledger.