GAINS Ethereum Quiz Answers: April 2020
How well do you know the 2nd largest cryptocurrency by market cap? We tested your knowledge a week ago and had some interesting responses. Find below answers to the quiz.
Question 1. When was Ethereum’s whitepaper published?
Answer: November 2013
The 36-page white paper proposing Ethereum was published in November 2013. It was titled “Ethereum: A Next Generation Smart Contract & Decentralized Application Platform”.
Question 2. Who was Ethereum proposed by?
Answer: Vitalik Buterin
Ethereum was proposed in late 2013 by Vitaly Dmitriyevich Buterin, a cryptocurrency researcher and programmer. Vitalik saw the potential for using the blockchain for other things and pushed for a scripting language for Bitcoin to make the development of applications on the blockchain possible but his proposal was rejected. In late 2013, he proposed the development of a new platform with support for more generalized scripting and application development.
In January 2014, the beginning of the development of the Ethereum platform was publicly announced. The original Ethereum development team consisted of Vitalik Buterin, Mihai Alisie, Amir Chetrit, Anthony Di Iorio, and Charles Hoskinson. Joseph Lubin, Gavin Wood, & Jeffrey Wilke were added in early 2014 as founders.
Vitalik is a bronze medal winner in the International Olympiad in Informatics and a co-founder of Bitcoin Magazine.
Question 3. How many transactions could the Ethereum protocol process per second in January 2016?
Answer: 25 transactions
As of January 2016, the Ethereum protocol could process 25 transactions per second. In comparison, the Visa payment platform processes 45,000 payments per second leading some to question the scalability of Ethereum.
Question 4. What prefix are Ethereum addresses composed of?
Answer: Ethereum addresses are composed of the prefix “0x”.
It is worthy to note that what we use as addresses were never intended to be permanently used as such. From the beginning, Ethereum developers aimed to build a smart contract-based name register, with which payments could be easily sent to names or domains and so on.
Tech part:
Technically, Ethereum’s address generation is similar to Bitcoin’s. You start with a private key and use ECDSA to generate a 64-byte public key. Then you hash this key with Keccak-256. The result is a 32-byte string. The first 12 of these bytes are dropped and the remaining 20 bytes are a 40 character address, to which usually the prefix 0x is added.
Question 5. What is Ether’s block time?
Answer: 14–15 seconds.
Ethereum’s block time started at 60 seconds until developers cut it down to between 10 and 20. In September 2017, block time went as high as 30 seconds but it has been stable at 15 seconds since.
Question 6. How many Ethers are issued per block in general?
Answer: 5 Ether
5 ETHs are produced per block. This number has been constant since the launch of Ethereum. There is no halving as compared to Bitcoin.
Question 7. What algorithm does Ethereum use for its Proof of Work?
Answer: EtHash.
At the time of writing, Ethereum is using a “Proof of Work” (PoW) consensus algorithm, very similar to what Bitcoin uses, called Ethash. Ethereum 2.0 will see a new Proof of Stake (PoS) algorithm called Casper. This new chain will have a Proof of Stake (PoS) consensus algorithm, and it will run in parallel to the main PoW Ethereum blockchain.
Question 8. How many Ethers were in existence at launch?
Answer: 72 million.
Ethereum’s genesis block (i.e. the first block of its blockchain) was launched in 2015 with 72 million Ether already generated. 60 million Ethers sold to investors in 2014 (at 30 cents each, which is still a 510X from today’s price!) + 12 million ETH goes to developers and Ethereum foundation. This means that another 28 million Ether has been mined in nearly 3 years since the public launch of the network.
Question 9. When was the Ethereum Genesis Block?
Answer: July 2015
On July 20, Ethereum’s genesis block was mined into existence.
Question 10. What is the name given to the fork which will introduce Ethereum 2.0?
Answer: Serenity.
Ethereum 2.0 is the term that describes all the updates from Serenity, which will make Ethereum more scalable, faster and a better blockchain.
Question 11. What is the smallest denomination of Ethereum Units?
Answer: Wei.
Wei is the smallest denomination of ether, the cryptocurrency coin used on the Ethereum network.
This convention of nicknames is a nod to the founding figures of ether, as with Bitcoin where the smallest unit is called a Satoshi.
- Wei (wei) — for Wei Dai, who formulated the concepts of all modern cryptocurrencies, and is best known as the creator of the predecessor of Bitcoin, B-money.
- Kwei (babbage) — for Charles Babbage, mathematician, philosopher, inventor, and mechanical engineer who designed the first automatic computing engines.
- Mwei (lovelace) — for Ada Lovelace, mathematician, writer, and computer programmer; she published the first algorithm.
- Gwei (shannon) — for Claude Shannon, an American mathematician, cryptographer, and crypto-analysis guru, who is known as “the father of information theory.”
- Twei (szabo) — for Nick Szabo, computer scientist, legal scholar, and cryptographer known for his pioneering research in digital contracts and digital currency.
- Pwei (finney) — for Hal Finney, a computer scientist, and cryptographer; he was one of the early developers of Bitcoin, and alleged to be the first human to receive bitcoin from Satoshi Nakamoto.
- Ether (buterin) — for Vitalik Buterin, the creator of Ethereum.
1 Ether = 1,000,000,000,000,000,000 Wei (10¹⁸)
Question 12. What was the first Ethereum ICO?
Answer: Augur.
Augur’s ICO was launched on August 17, 2015 and continued until September 5 of that year. It raised over five million US dollars for the development of the Augur cryptocurrency.
Question 14. What caused the Ethereum blockchain to split into Ethereum and Ethereum Classic?
Answer: A DAO hack.
After seeing how great smart contracts were, somebody decided to create a new project called the DAO, which stood for Decentralized Autonomous Organization.
In 2016, people were so excited about the DAO project that it raised almost 14% of all ETH coins in circulation, a total of $150 million in ETH was raised in just 28 days!
After the DAO had completed its investment campaign, it was hacked! Somebody stole more than 1/3, or $50 million, from the DAO’s wallet. This wasn’t a security issue with the Ethereum blockchain, it was because the DAO developers made an error when building the technology.
Because of how the DAO smart contract was built, the hacker could not access the stolen $50 million until after 28 days! So, the Ethereum community had to decide what to do about it. Create a hard fork of the Ethereum blockchain or do nothing.
The majority of people decided that too much money was involved to do nothing, so they created a hard fork! After the decision, the Ethereum blockchain kept its name but was now operating on a hard fork. The people that disagreed with the fork decided to remain on the original blockchain. However, this was now called Ethereum Classic.
Question 15. How many ETHs are mined yearly?
Answer: 18 Million
Per its initial presale in 2014, Ether capped its limit to 18 million per year. As of 2018, over 100 million Ether had been mined. Vitalik proposed in April 2018 to cap the total Ether supply at 120 million. Or 144 million (which is double the amount which was first issued), in case it was too late to impose the 120 million limit
Question 16. The abbreviation “ERC” stands for?
Answer: Ethereum Request for Comments.
ERC is an acronym that stands for Ethereum Request for Comments. ERCs are application-level standards for Ethereum and can include token standards, name registries, library/package formats, and more. The most common ones are ERC-20, which is the standard API used for fungible tokens and ERC-721 which is the most popular non-fungible token (NFT) standard.
Question 17. Which of the following is not an example of Ethereum’s test network?
Answer: Mimblewimble
Mimblewimble is a blockchain protocol created to improve privacy, fungibility, and scalability of blockchains. It is used by Grin and Beam cryptocurrencies. Ropsten, Kovan, Rinkeby and Görli are all Ethereum test networks.
Question 18. What is the all-time high price of 1 ETH?
Answer: $1396.
Ethereum grew over 13,000% from 2017 to 2018, hitting an all-time high price of $1396.
Question 19. How much was paid as fees in USD at the time for the most expensive ETH transaction in history
Answer: $300,000.
In February 2019, an unknown account made a transfer of 0.1 ETH and paid 2,100 ETH as a transaction fee, worth around $300,000 at the time. It looks like the poor fellow mixed up the transaction fee with the full value. The 2,100 ETH fee was received by ETH mining pool Sparkpool. Luckily, the pool froze this huge amount of ETH and decided to wait for the sender to contact them. They found the real sender of the transaction who had made a mistake when attaching this fee. Both parties agreed to split the mining reward and Sparkpool returned 1,050 ETH to the sender.
Question 20. Name a major difference between Ethereum and Bitcoin?
Answer: Ethereum was crowdfunded and Bitcoin wasn’t.
Vitalik Buterin lacked the funds after coming up with the idea of Ethereum in late 2013. He turned to crowdfunding, and by 2015, Ethereum was created and publicly traded. Bitcoin on the other hand was released as open-source software in early 2009 without any crowdfunding.
We hope you enjoyed this short and fun quiz and learned a few things. There will be more! Keep on learning with GAINS! Congratulations to all the winners.
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