Bitcoin Interview Questions and Answers
Ques 11. What is the significance of the 21 million supply limit in Bitcoin?
Bitcoin has a maximum supply of 21 million coins, which is hardcoded into its protocol. This scarcity is designed to mimic the scarcity of precious metals like gold and is intended to control inflation.
Ques 12. Explain the term 'Segregated Witness' (SegWit) in the context of Bitcoin.
Segregated Witness is a protocol upgrade that separates transaction signatures from the transaction data, increasing the block size limit and addressing certain scalability issues in the Bitcoin network.
Ques 13. What is a double-spending problem, and how does Bitcoin solve it?
Double-spending is the risk of a digital currency being spent more than once. Bitcoin solves this problem by using a decentralized network and a consensus mechanism based on proof-of-work to validate and confirm transactions.
Ques 14. Explain the role of confirmations in Bitcoin transactions.
Confirmations refer to the number of blocks added to the blockchain after a transaction has been included in a block. More confirmations increase the security and irreversibility of the transaction.
Ques 15. What is the role of a mempool in the Bitcoin network?
The mempool is a short-term memory pool of unconfirmed transactions in the Bitcoin network. Miners select transactions from the mempool to include in the next block.
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