Interview Questions and Answers

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.

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.

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.

A private key is a secret cryptographic key that allows the owner to access and control their bitcoins. It should be kept secure and never shared.

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.

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.

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.

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.

The difficulty adjustment is a mechanism that regulates the rate at which new blocks are added to the blockchain. It ensures that the average time between blocks remains around 10 minutes.

A watch-only wallet is a wallet that can only view and monitor the balance and transactions of a specific Bitcoin address. It does not have the ability to spend bitcoins.

The white paper, titled 'Bitcoin: A Peer-to-Peer Electronic Cash System,' was published by Satoshi Nakamoto and introduced the concept of Bitcoin and its underlying technology. It is considered the foundation of the cryptocurrency.

A block explorer is a web tool or interface that allows users to view information about the blocks, transactions, and addresses on the Bitcoin blockchain. It provides transparency and visibility into the network.

A Satoshi is the smallest unit of bitcoin, named after Bitcoin's pseudonymous creator, Satoshi Nakamoto. One bitcoin is equivalent to 100 million Satoshis.