Xcore Cryptocurrency Final

Countries in the Bretton Woods system agreed to keep their currencies fixed to the dollar, and the dollar was fixed to gold at _____ per ounce?

$35

What year was the Bitcoin whitepaper initially posted to a public forum?

2008

What is the total number of bitcoins that will ever be created?

21 million

Nearly ____% of central banks are actively engaging in and exploring CBDCs, including the U.S. Federal Reserve.

90

What was the title of the Ethereum white paper?

A Next-Generation Smart Contract and Decentralized Application Platform

Generally Accepted

Accepted by a large enough set of people and suppliers

The Ethereum genesis block launched before or after the Bitcoin genesis block?

After

Unit of Account

Agreed-upon measure of the value of goods and services

Nonce

An input in the computation that is used to alter the hash of a block

Which three standards relate to compliance and national security concerns?

Anti-money laundering (AML), Know-your-customer (KYC), and Combating the financing of terrorism (CFT)

Commodities

Anything from cattle to yams to rice to whatever else might be seen as valuable within a community.

In the context of blockchains, a _____ allows independent protocols to communicate with each other.

Bridge

Divisibility

Can be divided easily so that we can buy different products at different values

Portability

Can be easily transported from one place to another

Durability

Can be used over and over again to settle many transactions

_____ use Web3 technology and rapidly evolving governance and incentive systems to distribute decision-making and financial rewards to members of the community.

DAOs

What are the 3 components of the blockchain trilemma? (Select all that apply.)

Decentralization, Scalability, and Security

______ can operate with order books to match trades, or they can utilize a form of the AMM approach, known as automated market makers.

Decentralized exchanges

____ is the token standard on Ethereum for fungible tokens, while ____ is the token standard on Ethereum for non-fungible tokens.

ERC-20, ERC-721

Uniformity

Each unit is the same size and shape (physical currency)

Non-custodial

Enables you to control your private keys yourself, rather than delegating the job of securing the keys to a third party

Coinage began around 600 BC, when the first coin was minted by a King of Lydia (which is modern day Syria)?

False

What are the three types of stablecoins? (Select all that apply.)

Fiat-collateralized, Crypto-collateralized, and Algorithmic non-collateralized

Which EO priority does this statistic relate to? - "There are ~1.7 billion people around the world who are unbanked with an additional ~1.3 billion who are under-banked."

Financial Inclusion

Which CBDC type leverages private sector innovation (i.e. stablecoins) with public sector safety and soundness standards (i.e. backed by central bank reserve deposits)?

Hybrid CBDCs

In terms of the blockchain trilemma, what were the primary solutions presented in the training? Select all that apply.

Layer 1s, Layer 2s, and Interoperability

______ refers to a protocol that operates on top of an underlying Layer 1 blockchain to improve its scalability.

Layer 2s

Scarcity

Limited supply, thereby giving it value

Select all of the factors limiting Bitcoin's scalability.

Limited to about 1 MB of data, Only fits around 2000 transactions, and Block confirmation time

Lower gas fee

Lower EVM computational effort to process transaction

What is M2?

M1 + savings deposits and small time deposits, money market funds, and other deposits.

Store of Value

Maintain price stability tomorrow, next week, or even next year

Double-Spending

Making two payments with the same currency or funds in order to deceive the recipient

The ________ is a set of interconnected, experiential, 3D virtual worlds, powered by blockchain technology.

Metaverse

Higher gas fee

More EVM computational effort to process transaction

The "Crypto Wars" of the 1950's involved what intelligence agency?

NSA

What Act established a uniform national currency that had to be backed by the U.S. Treasury?

National Banking Act

Are credit cards money?

No, credit cards fail to meet the store-of-value criterion and are therefore not money. They are short-term

Which most accurately describes traits in Decentralized Finance - DeFi?

Open-source and composable

Who released an Executive Order on Ensuring Responsible Development of Digital Assets?

President Biden and the White House

_____ relies on participants' staked coin supply to assign validation rights and drive consensus, while _____ relies on brute force computational power.

Proof-of-stake, Proof-of-work

Web2

Read and Write

Web1

Read only

Web3

Read, Write, and Own

What described a "promissory note"?

Recorded how many coins a person had deposited with the merchant

Hashes

Results of a mathematical function that takes a random input and results in a unique output

Which three CBDC types were highlighted in the Policy & Regulation course?

Retail CBDCs, Wholesale CBDCs, and Hybrid CBDCs

NFTs can automatically trigger and execute ______ payments to the identified creator each time an NFT is sold or changes hands in the secondary market.

Royalty

Who was Bitcoin created by?

Satoshi Nakamoto

Collectibles

Small, homogenous items such as shells, beads, teeth, and so on

Traditional intermediaries are being replaced by _______ that execute transactions autonomously.

Smart contracts

_____ employs a parallel transaction processing engine, called Sealevel, which allows the network to process thousands of smart contract calls all at once.

Solana

Ethereum's primary programming language used to write smart contracts is ______?

Solidity

The President's Working Group (PWG) report outlined what three stablecoin risks?

Stablecoin runs, Payment system risks, and Scaling risks

The President's Working Group (PWG) report was released to identify regulatory gaps related to _______?

Stablecoins

What are the common components of Decentralized Finance - DeFi? (Select all that apply.)

Stablecoins, Borrowing/lending protocols, and Decentralized exchanges

What are some of the different types of Layer 2s? (Select all that apply.)

State channels, Optimistic Rollups, and Zero-knowledge Rollups

____ was the label for the process of Ethereum's transition from proof-of-work consensus to proof-of-stake consensus.

The Merge

Ether (ETH)

The cryptocurrency used to pay transaction fees on the network

Paper Money

The evolution of promissory notes to banknotes

What did the Federal Reserve Act of 1913 establish?

The first U.S. central bank

Custodial

The keys in your crypto wallet are controlled by a third-party entity

Ethereum

The programmable smart contract blockchain

Consensus

The way the Bitcoin protocol agrees on how its underlying technical architecture will operate

Fungible tokens

There is no difference between one unit and another unit. They can be exchanged for one another at the same value..

SHA-256

They type of hashing algorithm that Bitcoin uses

What is barter?

Trading/exchanging of goods and services without the use of money

A crypto wallet holds the access to your funds, but not the actual funds. The actual funds live on the blockchain.

True

The "crypto" in cryptocurrency refers to cryptography, or the process of encryption and decryption?

True

Metals

Two precious items such as gold and silver

Which EO priority addresses concerns related to preserving the dollar's role as the leading reserve currency?

U.S. Leadership in the Global Financial System & Economic Competitiveness

Non-fungible tokens

Used to represent ownership of unique items, either digital or real-world items. They can not be exchanged for one another at the same value.

Medium of exchange

Used to trade goods and services

Miners

Validate transactions by using computational equipment to solve a mathematical puzzle

Who was Ethereum created by?

Vitalik Buterin

Which internet phases are decentralized?

Web1 and Web3

The "free banking" era was a period between 1837 - 1862 in the U.S., also known as?

Wildcat banking era

Scalability

a blockchain's ability to process transactions more efficiently and expand as adoption increases over time

What is money?

anything that serves as a medium of exchange, a unit of account, and a store of value

What are characteristics of Good Ledgers?

consistency, immutable, timestamped, ownership, accuracy, and comprehensive

Decentralization

control and governance shifting from one central entity to automated smart contracts and nodes connected to a cryptocurrency network

P-Chain

coordinates validators on the network

What is M1?

currency and checkable deposits M1=currency + checkable deposits

C-Chain

executes EVM smart contracts

Inflation is the rate at which the value of a currency is ____ and, consequently, the general level of prices for goods and services is ____?

falling, rising

X-Chain

handles the creation and exchange of assets

What is fiat money?

inconvertible paper money made legal tender by a government decree.

As a layer 0, match the two primary components of the Polkadot network. Parachain

independent blockchains that run in parallel with each other

As a layer 0, match the two primary components of the Polkadot network. Relay chain

network's central chain that provides security, consensus, and interoperability to the entire network

Security

protecting a blockchain's immutability as blocks continue to be appended to the chain

Complete the sentence. Decentralized governance enables protocols to:

provide enduring value as open financial infrastructure

The ____ key acts as the "account number" and the ____ key acts as the "password" within your crypto wallet.

public, private