notes up to midterm

Question 1

unit of account

Answer 1

a monetary unit of measure of value (as a coin)

Question 2

medium of exchange

Answer 2

any item that is widely accepted in exchange for goods and services

Question 3

store of value

Answer 3

an asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without deteriorating in value

Question 4

how many satoshis = 1 bitcoin

Answer 4

100 million satoshis

Question 5

how does a distributed ledger work?

Answer 5

• People announce transactions
• Any user may collect information about those transactions
• Users record transactions on a ledger
• Broadcast my ledger to everyone else
• Confirm the transaction

Question 6

nodes

Answer 6

people interested in collecting transaction data

Question 7

what happens after two people agree on a transaction on the bitcoin blockchain

Answer 7

the transaction is announced to nodes

Question 8

what is the max data that can be on a ledger?

Answer 8

1 MB

Question 9

what happens when a node collects transaction data?

Answer 9

it has to solve a computational puzzle to verify/add the transaction to the ledger

Question 10

nonce

Answer 10

the puzzle solution(Set of digits/letters that result in the output below starting with a set number of zeros)

Question 11

what happens after the node solves the puzzle and puts your transaction on the block?

Answer 11

the nodes broadcast the block and nonce to all other nodes

Question 12

what is the node rewarded with?

Answer 12

free bitcoin

Question 13

in 2009, how many bitcoins were given out per transaction?

Answer 13

50 bitcoins

Question 14

how do you know your odds of solving the puzzle?

Answer 14

odds = your CPU power / total network CPU power

Question 15

what code did litecoin use?

Answer 15

the general bitcoin code

Question 16

how long does it take to mine in litecoin?

Answer 16

2.5 minutes

Question 17

how many litecoin will be produced?

Answer 17

84 million

Question 18

forking

Answer 18

people come together and agree to change the rules

Question 19

soft fork

Answer 19

not a fundamental change and all nodes have to agree

Question 20

hard fork

Answer 20

large/fundamental change and not all nodes have to agree

Question 21

when and what was bitcoins first hard fork?

Answer 21

2014, changed the block size to 8MB, 1,000 nodes agreed

Question 22

what was the 2016 bitcoin hard fork?

Answer 22

created bitcoin classic, 2mb block size, 2,000 nodes agreed

Question 23

what was the 2017 bitcoin hard fork?

Answer 23

created bitcoin cash and 8Mb block size

Question 24

51% attack

Answer 24

if more than 50% of people/nodes agree the motion/proposal passes

Question 25

Replaced-by-fee

Answer 25

you can change an unconfirmed transaction by offering a higher fee

Question 26

what is the basic code of Ethereum?

Answer 26

Open software platform built on blockchain to deploy decentralized applications(dApps)

Question 27

dApps

Answer 27

decentralized applications

Question 28

how much Ether will be produced?

Answer 28

no limit yet

Question 29

what is the INITIAL Ethereum mining time?

Answer 29

15 seconds

Question 30

Byzantium hard fork

Answer 30

reduced reward to 3 ETH

Question 31

what was the INITIAL reward for Ethereum?

Answer 31

5 ETH

Question 32

Constantinople hard fork

Answer 32

reduced the reward to 2 ETH

Question 33

What is the current Ethereum mining time?

Answer 33

13 seconds

Question 34

proof-of-stake

Answer 34

“volunteer” your computer to verify block→ system randomly selects CPUs to verify the block

Question 35

how does proof-of-stake make sure you don't verify bad blocks?

Answer 35

you put up collateral that you can lose

Question 36

how many validators does proof-of-stake select?

Answer 36

128 random validators, 1 makes the block, and 2/3 of the rest must validate

Question 37

what is the smallest denomination of Ether?

Answer 37

WEI

Question 38

what is the value of 1 WEI?

Answer 38

1 ether = 10^18 WEI

Question 39

what is gas?

Answer 39

the cost necessary to perform a transaction on the network

Question 40

what is the value of 1 gas?

Answer 40

1 ether = 10^9 gas = GWEI

Question 41

what is the gas limit?

Answer 41

the max amount of gas a user is willing to pay

Question 42

smart-contract

Answer 42

a digital agreement that executes “automatically", like an if-then statement

Question 43

oracles

Answer 43

provide outside info that is used in smart contracts

Question 44

token(interchangeable)

Answer 44

currency used on the native apps

Question 45

usage token

Answer 45

required to use the service

Question 46

work token

Answer 46

used for proof-of-stake

Question 47

security token("tokenized" securities)

Answer 47

assigning a digital title to data(follows SEC rules)

Question 48

non-fundible tokes(NFTs)

Answer 48

has a unique identifier, applies ownership to any assigned data