Certified Bitcoin Professional Practice Exam

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Study for the Certified Bitcoin Professional Exam. Enhance your blockchain knowledge with flashcards and multiple-choice questions. Each question includes hints and explanations. Prepare for your certification!

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Do deterministic wallets require a specific passphrase for encryption?

Yes, it is mandatory
No, they do not require a passphrase
Only if the user wants extra security
Yes, but it can be any set of characters

The correct answer is: No, they do not require a passphrase

Deterministic wallets, which derive all their addresses from a single seed, do not inherently require a specific passphrase for encryption. Instead, they can function without any passphrase at all, relying solely on the seed. This means that a user can create a deterministic wallet without implementing additional security measures like a passphrase. While a passphrase can provide an extra layer of security, especially in enhancing the protection of the seed against unauthorized access, it is not a requisite component for the basic operation of a deterministic wallet. Therefore, the choice indicating that they do not require a passphrase accurately reflects the fundamental functionality of deterministic wallets. In contrast, some users might choose to implement a passphrase to safeguard their wallets further, but this is entirely optional and depends on individual security preferences rather than a requirement.