Chapter 2 - Assessment

1. Why does Bitcoin use a binary-to-text encoding? (choose the best answer)

a) It's faster than transmitting data in binary or hexadecimal formats.

b) It's easier to read for humans.

c) It allows data to be transmitted more efficiently; more bytes packed in fewer symbols.

d) It allows data to be communicated reliably across communication channels that only support text values.

2. What is the Base58 encoding of the hash ‘094d77441cfead50daa8e9ce893698962dbcbbce’ (use the hash calculator provided in the resources section)

a) 8WygiWcQrL6yW4DRd6UC69yZcCd

b) 27tuAWsiWtLMWgqzMoufsUUF6xvztCd

c) 2WuJxky7mEh5NeDG8H

d) 7qVJXrzCUiU4HxaFVYp

3. Why does Bitcoin use the Base58 binary-to-text encoding format? (choose the best answer)

a) It avoids characters that are difficult for humans to read; making Bitcoin addresses more readable and more secure.

b) It's more efficient than Base64.

c) It's faster for computers to process than Base64 – which is the more common binary-to-text encoding.

d) Because no self-respecting bank or national government would ever use account numbers with emojis in them.

4. What does the "check" in Base58Check refer to? (choose the best answer)

a) That the address is correct, so it gets a check.

b) A shortened hash, or "checksum", of the encoded data that gets appended to the end of the Base58 encoded data.

c) The owner of the Bitcoin address – like a bank cheque.

d) The Elliptic Curve Digital Signature fingerprint of the owner of the Bitcoin address encoded in Base58.

5. What is the corresponding Bitcoin Address for the hash ‘094d77441cfead50daa8e9ce893698962dbcbbce’ (use the hash calculator provided in the resources section)

a) 1HT7xU2Ngenf7D4yocz2SAcnNLW7rK8d4E

b) 14Y3caEeuKWhDaBXXb6sK6fb5ufBsFdp42

c) 1rBt9iuvBMX8oVGtLaLPCpdkYXMREddEu

d) 1Mj3t74K94BP6zqhbifLHeN5TzD5zgFDcb

6. What are the two places Base58Check is used in the Bitcoin system? (choose the best answer)

a) Private ECDSA keys during the Bitcoin address creation process and public keys in a Wallet Import Format (WIF).

b) Public ECDSA keys during the Bitcoin address creation process and private ECDSA keys in a Wallet Import Format (WIF).

c) Private addresses during the Bitcoin address creation process and public mnemonics in a Wallet Import Format (WIF).

d) Public addresses during the Bitcoin address creation process and private mnemonics in a Wallet Import Format (WIF).

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