Certified Bitcoin Professional Practice Exam

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What role does the blockchain play in Bitcoin transactions?

Verifies user identity
Records and secures transactions
Issues new coins
Provides customer service

The correct answer is: Records and secures transactions

The blockchain serves as a decentralized digital ledger that records all transactions conducted with Bitcoin. Each transaction is grouped into blocks, which are then cryptographically linked in a chain, hence the name "blockchain." This structure ensures that every transaction is transparent, traceable, and immutable, meaning once it is recorded, it cannot be altered without consensus from the network. The security of the blockchain is maintained through a process called mining, which involves solving complex mathematical problems that validate and confirm transactions before they are added to the blockchain. This process not only records the transactions but also protects them from tampering or fraud. By using blockchain technology, Bitcoin provides a trustless and secure environment for peer-to-peer transactions, removing the need for intermediaries and enhancing the efficiency of financial transactions. Other roles mentioned, such as verifying user identity or providing customer service, do not align with the fundamental purpose of the blockchain in the Bitcoin network. Likewise, while new coins are issued through mining, the primary function of the blockchain goes beyond just the creation of new coins; its main role is to record and secure the entirety of transactions within the network.