Blockchain Developer Certification Practice 2026 - Free Blockchain Developer Practice Questions and Study Guide

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What technology underpins cryptocurrencies?

Artificial Intelligence

Blockchain technology

The technology that underpins cryptocurrencies is blockchain technology. Blockchain acts as a decentralized ledger that records all transactions across a network of computers, ensuring transparency, security, and immutability. Each block in the chain contains a list of transactions, and these blocks are linked together in a chronological order. This structure makes it nearly impossible to alter any information without altering all subsequent blocks and gaining consensus from the network, which is a crucial feature for maintaining the integrity of cryptocurrency systems.

Blockchain enables features such as peer-to-peer transactions without the need for a central authority, creating a trustless environment where users can securely transact. The decentralized nature of blockchain also helps in preventing fraud and censorship, as no single entity has control over the entire network, thereby enhancing the robustness and reliability of cryptocurrencies.

The other technologies mentioned—artificial intelligence, quantum computing, and cloud computing—do not provide the foundational infrastructure required for cryptocurrencies. While they can complement blockchain in different contexts, they do not serve the primary role of enabling secure and decentralized financial transactions as blockchain does.

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Quantum computing

Cloud computing

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