PreparingfortheCertifiedBitcoinProfessional(CBP)Exam

Thisguideismeanttofocusyourpreparation,notprovideanexhaustivelistofallpossibletestmaterials.Bitcoinmovesfast
andourexamsareupdatedregularly.ForCBPpurposes,youdontneedtoknowhowtoimplementthetechbutyouwillneed
tounderstandthebasicfeatures,whatproblemsthosefeaturessolve,andwhatproblemstheydontsolve.

HistoryofMoneyandLedgerbasedEconomics
CentralizedLedgers: Understandwhatacentralizedledgerisandhowmoneyhasbeenorganizedon
centralizedledgersinthemoderndigitaleconomy.
FunctionsofCurrency: Distinguishbetweenfunctionsofcurrenciessuchasunitofaccount,storeof
value,andmediumofexchange.
DistributedConsensus: Definedistributedconsensusandexplainwhatmakesbitcoinsledger
differentfromcentralizedledgers.
HistoryofBitcoin:Readthebitcoinprotocolwhitepaper.Knowaboutmajoreventsaffectingbitcoin
sinceitscreationsuchasthefailuresofearlyexchanges(whoandwhy)andthebirthofaltcoins.
PriceDerivation: Understandhowthepriceofbitcoinisderived.

BasicCryptography
TermsandDefinitions: Defineandaccuratelyusebasiccryptographictermssuchascryptography,
encryptionalgorithm,decryptionalgorithm,symmetricvs.asymmetricencryption,ciphervs.plaintext.
HashFunctions: Explainthepurposeofhashfunctions,howtheyareusedinbitcoin,andhowtheir
inputsarerelatedtotheiroutputs.
SymmetricandAsymmetricEncryption: Distinguishbetweensymmetricandasymmetricencryption
algorithms.Understandtheprinciplesofasymmetricencryptionandtheimpactithasonkeyexchange.
DigitalSignatures: Understandthebasicsofdigitalsignatures,whyandhowtheyareusedinbitcoin.
Understandtherelationshipbetweendigitalsignaturesandasymmetrickeys.

BitcoinBasics
BitcoinCommunity: Understandhowusers,advocates,developers,businesses,andgovernments
impacttheBitcoinProtocol.Explainwhattypesofinstitutionsareactivelyinvolvedinpromoting,
maintaining,orlobbyingonbehalfoftheindustry.
BitcoinAddressesandKeys: Understandhowbitcoinaddressesandkeysaregenerated.Explainthe
relationshipbetweenbitcoinaddresses,publickeys,andprivatekeysdistinguishbetweenthemand
describetheprimaryuseofeach.Intermsofaddressesandkeys,describehowfundsareaccessed
andtransferredonthebitcoinnetwork.
BitcoinTransactions: Describeabitcointransactionintermsofinputsandoutputs.Explainwhya
simplebitcointransactionisirreversible.Understandthebasicsoftransactionfees.
BitcoinBlockchainLedger: Explainhowbitcoinsblockchainfunctionsasapublicledger.What
informationispublic?
bitcointheUnit: Knowandunderstandthedenominationsofbitcoinandtheirrelationtooneanother
(e.g.millibit,satoshi).ExplainthedifferencebetweenBitcoin(capitalizedB)andbitcoin.Recognizeother
commonlyusedsymbolsreferringtobitcoinasadigitalcurrency.

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termsoflicense
.

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 BitcointheNetwork: Understandnetworkbasicssuchashowthenetworkisconnectedandthe
importanceofindependentnodesinthestructure.Explaincommonnetworkattacks(suchasDDoS)and
howthenetworkissecuredfromthesetypesofattacks.
BitcoinImprovementProposals(BIPs): WhatisaBIP?Explainthebasicprocessofsubmitting,
evaluating,andimplementingaBIP.ReviewGithubBitcoinImprovementProposals
BuyingandSellingbitcoin: Whatarethedifferentwaysuserscanbuyandsellbitcoin?Whatisa
bitcoinexchange?Whousesbitcoinexchangesandwhy?Understandtherisksofstoringbitcoinon
exchangesandidentifybestpracticesforstoringbitcoin.
BlockchainExplorers: Whatisablockchainexplorer?Howcantheybeusedtotracepayments?
UTXOs: WhatisanUnspentTransactionOutput?Howdotheseaffecttransactionsyousendandthe
changethatisleftoverfromyourtransaction?

Mining
PurposeandFunction: Explainthebasicvaluethatminersprovidetothebitcoinnetwork.Howare
newbitcoinscreated?
Algorithm: ForBitcoinminingalgorithm,defineanddescribethefollowing:difficultyadjustment,hashing
algorithm,coinbasetransaction,coinbasetransactionsize,nonce,andblockreward.
MiningPools: Whatisaminingpool?Whatisacentralizedminingpool?WhatisaP2Ppool?Compare
andcontrast.Fromtheperspectiveofthenetwork:whataretheadvantagesanddisadvantagesofpools
comparedtosingleminers?Fromtheperspectiveofaminer:whatcriteriashouldIconsiderwhen
choosingaminingpool?
MiningHardware: Whatisthemostpopularhardwareusedtodayforbitcoinmining?Describethe
differencesbetweenCPU,GPU,andASIChardware.
SecurityandCentralization: Underwhatconditionsisa51%attackfeasible?Explainwhatapotential
attackercanandcannotdowithalargeproportionofnetworkhashingpower.Understandthe
relationshipbetweenminingpools,specializedhardware,andthelikelihoodofattacks.

Wallets,ClientsandKeyManagement
WalletTypes:Whatisabitcoinwalletandhowaretheyused?Explainthedifferencesbetween
software,web,hot/cold,paper,brain,hardware,multisig,HD,andHDMwallets.
BitcoinClients:
Describethedifferencebetweenlightweightandfullclients.WhatisSimplified
PaymentValidation(SPV)andhowisitusedinlightweightclients?
DeterministicWallets(BIP32): Whataredeterministicwallets?Whatadvantagesdotheyhaveover
JustaBunchofKeyswallets?
PassphraseEncryptedWallets(BIP38): Whatarepassphraseencryptedwallets?Whatadvantages
dotheyhaveoverplainwallets?
Backups,ImportingandExporting: WhatisWalletImportFormat(WIF)?Describetheprocessof
backingupprivatekeysandrestoringthemtothesameornewwallets.

BitcoinCommerce
BitcoinMerchants:
Describehowmerchantscanbeginacceptingbitcoinforproductsandservices.
BitcoinPaymentProcessors: Whatisapaymentprocessor?Whatservicesdotheyprovide?
SecurePaymentProtocol(BIP70): WhatistheSecurePaymentProtocolandhowisitusedonthe
network?Howcanyouidentifysecurepaymentscomparedwithstandardpayments?

Copyright(c)2016,CryptoCurrencyCertificationConsortium(C4).See
termsoflicense
.

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