Bitcoin Interview Questions and Answers
Ques 16. Explain the concept of a '51% attack' in the context of Bitcoin.
A 51% attack occurs when an entity gains control of more than 50% of the total computational power of the Bitcoin network. This could potentially allow the attacker to manipulate transactions or double-spend bitcoins.
Ques 17. What is the role of a full node in the Bitcoin network?
A full node is a computer that maintains a complete copy of the Bitcoin blockchain and validates transactions independently. It enhances the security and decentralization of the network.
Ques 18. Explain the term 'halving' in the context of Bitcoin.
Halving is an event that occurs approximately every four years, reducing the reward that miners receive for adding a new block to the blockchain by half. It is programmed to control the issuance of new bitcoins.
Ques 19. What is the role of a Bitcoin exchange?
A Bitcoin exchange is a platform that facilitates the buying, selling, and trading of bitcoins and other cryptocurrencies. It acts as an intermediary between buyers and sellers.
Ques 20. Explain the concept of a 'paper wallet' in the context of Bitcoin.
A paper wallet is a physical document containing a public address for receiving bitcoins and a private key for spending or transferring bitcoins stored in that address. It is considered a form of cold storage.
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