Bitcoin Interview Questions and Answers
Ques 1. What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Ques 2. Explain the concept of blockchain in the context of Bitcoin.
Blockchain is a distributed ledger that records all transactions across a network of computers. In the case of Bitcoin, it is used to secure and verify transactions, creating a transparent and tamper-resistant history of all transactions.
Ques 3. What is mining in the context of Bitcoin?
Mining is the process by which new bitcoins are created and added to the circulating supply. It involves solving complex mathematical problems using computational power, and miners are rewarded with bitcoins for their efforts.
Ques 4. How does a Bitcoin transaction work?
A Bitcoin transaction involves the transfer of ownership of bitcoins from one address to another. It is verified by network nodes through cryptography and recorded in the blockchain.
Ques 5. What is a Bitcoin wallet?
A Bitcoin wallet is a digital wallet that allows users to store and manage their bitcoins. It can be hardware-based, software-based, or exist as a paper wallet.
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