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Finance Lessons

Crypto, From Scratch

Final Exam: Crypto From Scratch

A graded, locked capstone exam covering every crypto-basics lesson — blockchains, keys and wallets, transactions and fees, and the UTXO vs account models.

15 min Updated Jun 2, 2026

Four lessons in, you can talk a skeptical relative through blockchains, swat away the “my wallet holds my coins” myth, trace a payment from send to confirmed, and tell a UTXO from an account balance. This is where the talk gets tested. No fresh diagrams, no warm-up — just the ideas you already learned, dressed up with the kind of almost-right traps that catch people who only think they get it.

Warning:

How this exam works

This is a graded exam. Questions come one at a time. Once you submit an answer it is final — there is no going back, no second try, and a wrong answer simply fails that question. Your score stays hidden until the end, where you need 70% to pass. Read every option twice before you commit.

Question 1 of 26

A blockchain exists mainly to solve which problem?

Select an answer to continue.

Course Recap

Big picture

Crypto, from scratch — the complete map

  • Crypto, from scratch
    • What a blockchain is
      • Append-only, tamper-EVIDENT ledger (not secret)
      • Blocks linked by the previous block’s hash
      • Hash = one-way fingerprint; any change cascades
      • Replicated across nodes; consensus picks one chain
    • Keys & wallets
      • Wallet stores KEYS, not coins (coins live on the ledger)
      • Private key signs & stays secret
      • Public key/address is safe to share
      • Seed phrase = the only recovery, no reset
      • Not your keys, not your coins (hot vs cold)
    • Transactions & fees
      • Sign → broadcast → mempool → block → confirmations
      • Block space is scarce
      • Higher fee = faster inclusion (an auction)
      • Fee goes to the block producer, not the receiver
      • Gas ≈ computation; congestion spikes fees
    • UTXO vs account
      • UTXO (Bitcoin): discrete coins, change returns, balance = sum
      • Account (Ethereum): one running balance + nonce
      • UTXO: parallel, replay-proof, but coin selection is fiddly
      • Account: simpler, contract-friendly, global-state bottleneck
Four lessons, one ladder: what a blockchain is, who really owns a wallet, what a transaction does on its journey, and the two ways chains keep score.

Key Takeaways

Success:

What to remember

You’ve genuinely finished this course if you can, without peeking:

  • Say what a blockchain is — an append-only, tamper-evident (not encrypted) ledger, blocks linked by the previous block’s hash, replicated across nodes, one shared chain chosen by consensus — and explain why “blockchain = Bitcoin” and “it’s a central database” are both wrong.
  • Explain who owns a wallet — it holds keys, not coins; the private key signs and stays secret; the address is safe to share; the seed phrase is the only recovery with no reset; and “not your keys, not your coins” separates self-custody from a custodial exchange.
  • Trace a transaction — sign → broadcast → mempool → block → confirmations; know that block space is scarce, fees are an auction that pays the block producer (not the receiver), gas measures computation, and one confirmation isn’t true finality.
  • Tell UTXO from account — Bitcoin’s discrete coins spent whole with change returned (balance = sum of UTXOs) versus Ethereum’s single running balance ordered by a nonce — and recite the trade-offs without ever calling change a “loss.”

Aced it? You now understand the machinery under every coin and every DeFi app — exactly what you need before going deeper. Pick your next ladder and keep climbing.

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