Blockchain Technology Types of Blockchain Networks 2 — Questions and Answers
Question 1: Which blockchain network type requires participants to be vetted and approved before joining?
- Public blockchain
- Permissioned blockchain (Correct answer)
- Open-source blockchain
- Decentralized blockchain
Correct answer: Permissioned blockchain
Permissioned blockchains require identity verification and approval before a participant can join the network.
Question 2: A hospital consortium wants to share patient data across member institutions while keeping it private from the public. Which blockchain type is most appropriate?
- Public blockchain
- Consortium blockchain (Correct answer)
- Bitcoin network
- Open blockchain
Correct answer: Consortium blockchain
Consortium blockchains allow a group of organizations to share data privately among members without exposing it publicly.
Question 3: What is a key disadvantage of private blockchains compared to public blockchains?
- Higher transaction fees
- Reduced decentralization and trust (Correct answer)
- Slower consensus mechanisms
- Inability to store data
Correct answer: Reduced decentralization and trust
Private blockchains are controlled by a single organization, reducing the decentralization that makes public blockchains trustworthy.
Question 4: Which of the following is an example of a public blockchain?
- Hyperledger Fabric
- Quorum
- Ethereum mainnet (Correct answer)
- Corda
Correct answer: Ethereum mainnet
Ethereum mainnet is a public blockchain open to anyone, unlike Hyperledger Fabric, Quorum, and Corda which are permissioned.
Question 5: In a hybrid blockchain, which component is typically kept private?
- The consensus rules
- Sensitive transactional data (Correct answer)
- The node software
- Smart contract code
Correct answer: Sensitive transactional data
Hybrid blockchains keep sensitive transactional data private while allowing public verification of certain aspects like hashes.
Question 6: Which blockchain network type is most likely to use a Proof of Authority (PoA) consensus mechanism?
- Public blockchain
- Private or consortium blockchain (Correct answer)
- Decentralized autonomous blockchain
- Layer-2 blockchain
Correct answer: Private or consortium blockchain
PoA relies on trusted, pre-approved validators, making it suited for private or consortium blockchains where validators are known.
Question 7: What distinguishes a consortium blockchain from a private blockchain?
- Consortium blockchains are open to the public
- Consortium blockchains are governed by multiple organizations (Correct answer)
- Private blockchains are faster
- Private blockchains use more nodes
Correct answer: Consortium blockchains are governed by multiple organizations
A consortium blockchain is governed by a group of organizations, while a private blockchain is controlled by a single entity.
Blockchain Technology Types of Blockchain Networks 2
Which blockchain network type requires participants to be vetted and approved before joining?