Answers of 12 Days of Bitcoin Competition Questions

12 Days of Bitcoin Competition

In conjunction with the month of Christmas, Tokenize organised an exciting competition, where the winner can walk away with 0.2BTC as the grand prize. The fastest participant who can answer all the 12 questions related to Bitcoin knowledge correctly will win 0.2BTC. Besides, Tokenize also rewarded all participants who answer all questions correctly. This competition was aimed to reward Tokenize’s followers and users. In addition, this competition will help to enhance and deepen the public’s knowledge in bitcoin and blockchain.

The competition has already ended. The main purpose of this article is to share the correct answers with the fellow participants. Besides, each answer is accompanied by a brief explanation to help the readers to understand. Enjoy reading!

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Day 1: Who created bitcoin?

a. Vitalik Buterin

b. Gavin Andresen

c. Satoshi Nakamoto

d. Charlie Lee

e. Jackson Palmer

Satoshi NakamotoSatoshi Nakamoto is the name used by the unknown person or people who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, he/they also devised the first blockchain database.

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Day 2: What is the name of the bitcoin exchange from Japan that famously collapsed in 2014 due to a devastating hack?

a. Tradehill

b. Bitstamp

c. Mt. Gox

d. Blockchain.info

e. Bit Trade

Mt. Gox was a bitcoin exchange based in ShibuyaTokyo, Japan. Launched in July 2010, by 2013 and into 2014 it was handling over 70% of all bitcoin (BTC) transactions worldwide, as the largest bitcoin intermediary and the world’s leading bitcoin exchange.

In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings.

Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen by hackers, an amount valued at more than $450 million at the time. Although 200,000 bitcoins have since been “found”, the reason(s) for the disappearance — theft, fraud, mismanagement, or a combination of these — were initially unclear. New evidence presented in April 2015 by Tokyo security company WizSec led them to conclude that “most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot wallet over time, beginning in late 2011.”

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Day 3: What is the name of the technology underlying Bitcoin?

a. Bitchain

b. Blocklink

c. Blockchain

d. CoinLedger

e. Satoshisquare

Blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography.

Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin.

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Day 4: True or false? Bitcoin can be sent to an Ethereum address.

a. True

b. False

You cannot send Bitcoin to an Ethereum wallet, or Ether to a Bitcoin wallet. Most wallets will flag you if you try to send Bitcoin directly to an Ethereum wallet, or Ether directly to a Bitcoin wallet. Bitcoin sent to Ethereum wallets generally get lost and cannot be recovered.

It is essential to double check the recipient address before sending bitcoin, Ether, or other cryptocurrencies. Otherwise, you risk losing your funds completely.

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Day 5: The first underground marketplace on the dark web which used bitcoin as its native currency and was created by Ross Ulbricht was called:

a. Black Onion

b. BTC Market

c. East India Trading Company

d. Silk Road

e. Worldwide Drug Emporium

Silk Road first opened in 2011, just three years after the birth of bitcoin. A ‘clandestine eBay’ hidden on the darknet, it was used by almost one million customers to buy drugs online. And it was dependent on the anonymity of bitcoin to function.

Ross Ulbricht, the founder of Silk Road, first had the idea of creating a black market on the deep internet that used bitcoin to protect anonymity back in 2008 — the year bitcoin was launched.

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Day 6: What is the maximum number of block reward reductions allowed in the Bitcoin Protocol?

a. 10

b. 33

c. 128

d. 32

e. 110

f. 5

The number of bitcoin generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years. The result is that the number of bitcoin in existence will not exceed slightly less than 21 million. After 33 halvings the subsidy will be 0 and there will be no more halvings.

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Day 7: Which of these is not a valid Bitcoin standard transaction type?

a. TX_PUBKEY

b. TX_PUBKEYHASH

c. TX_SCRIPTHASH

d. TX_SCRIPTPUBKEYHASH

A Bitcoin transaction is an attempt at changing the ownership of some number of Bitcoins. The blockchain is a record of all “successful” transactions to date. One of the great features of Bitcoin is the flexibility it allows when expressing this change of ownership.

The most popular type of transaction is the TX_PUBKEY, or pay to a public key transaction.

Popular Transaction Types :

TX_PUBKEY

TX_PUBKEYHASH

TX_SCRIPTHASH

TX_MULTISIG

TX_NULL_DATA

TX_NONSTANDARD

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Day 8: What is a Merkle Root/Tree?

a. The square root of the number of transactions

b. An efficient way of storing and proving transactions were included in a block

c. An algorithm used to send transactions

d. The birthplace of the German Chancellor

Merkle Root/Tree is a fundamental part of blockchain technology. A Merkle tree is a structure that allows for efficient and secure verification of content in a large body of data. This structure helps verify the consistency and content of the data. Merkle trees are used by both Bitcoin and Ethereum.

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Day 9: What is a GH/s?

a. 1000 hashes per second

b. 1,000,000 hashes per second

c. 1,000,000,000 hashes per second

d. 1,000,000,000,000 hashes per second

Bitcoin mining capability is measured in the number of attempts to find a block a miner can perform. Each attempt consists of creating a unique block candidate, and creating a digest of the block candidate by means of the SHA-256d, a cryptographic hashing function. Or, in short, a hash. Since this is a continuous effort, we speak of hashes per second or [H/s].

Hash rate denominations:

1 kH/s is 1,000 (one thousand) hashes per second

1 MH/s is 1,000,000 (one million) hashes per second.

1 GH/s is 1,000,000,000 (one billion) hashes per second.

1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.

1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.

1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.

1 ZH/s is 1,000,000,000,000,000,000,000 (one sextillion) hashes per second.

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Day 10: What is the History of Bitcoin Mining in terms of Hardware use Chronologically

a. CPU — GPU — FPGA — ASIC

b. GPU — CPU — FPGA — ASIC

c. GPU — CPU — ASIC — FPGA

d. ASIC — FPGA — CPU- GPU

1 | CPU Mining

Early Bitcoin client versions allowed users to use their CPUs to mine. The advent of GPU mining made CPU mining financially unwise as the hashrate of the network grew to such a degree that the amount of bitcoins produced by CPU mining became lower than the cost of power to operate a CPU. The option was therefore removed from the core Bitcoin client’s user interface.

2 | GPU Mining

GPU Mining is drastically faster and more efficient than CPU mining.

3 | FPGA Mining

FPGA mining is a very efficient and fast way to mine, comparable to GPU mining and drastically outperforming CPU mining. FPGAs typically consume very small amounts of power with relatively high hash ratings, making them more viable and efficient than GPU mining.

4 | ASIC Mining

An application-specific integrated circuit, or ASIC, is a microchip designed and manufactured for a very specific purpose. ASICs designed for Bitcoin mining were first released in 2013. For the amount of power they consume, they are vastly faster than all previous technologies and already have made GPU mining financially.

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Day 11: What is a nonce?

a. An empty value in each block that is filled by the miner of that block

b. Another name for a node

c. A mining device faster than an ASIC

d. A part inside a processing chip used in mining

e. A name for a troll in Reddit forums

A nonce (“number only used once”) is a number added to a hashed block that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for.

It is often random or pseudo-random numbers. Many nonces also include a timestamp to ensure exact timeliness, though this requires clock synchronization between organizations. The addition of a client nonce (“cnonce”) helps to improve the security in some ways as implemented in digest access authentication. To ensure that a nonce is used only once, it should be time-variant (including a suitably fine-grained timestamp in its value), or generated with enough random bits to ensure a probabilistically insignificant chance of repeating a previously generated value. Some authors define pseudo-randomness (or unpredictability) as a requirement for a nonce.

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Day 12: What is “difficulty” in relation to Bitcoin?

a. A measure of how hard it is to explain what Bitcoin is

b. A measure of how difficult it is to find a hash below the target

c. A measure of long it takes to send bitcoin between addresses

d. A measure of how difficult it is for bitcoin to move a certain number of basis points

e. A measure of how hard it is for Bitcoin to recover to its all-time high

Difficulty is a measure of how difficult it is to find a hash below a given target.

The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares.

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Besides being the fastest participant to answer all the questions correctly, the participants have to like Tokenize Facebook Page, like and share all the questions publicly. Last but not least, they need to tag at least one friend by commenting on the posts together with the correct answer.

Congratulations again to the winners who win the competition. Thank you for everyone for your participation!

Congratulations again to the winners!

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