CBC Blockchain Fundamentals & Technologies — Questions and Answers
Question 1: What is the primary function of blockchain technology?
- To store data in a centralized database
- To provide a secure and transparent decentralized ledger (Correct answer)
- To replace traditional cloud storage systems
- To encrypt private messages only
Correct answer: To provide a secure and transparent decentralized ledger
Blockchain is a decentralized, immutable ledger used to record transactions securely and transparently.
Question 2: Which consensus mechanism is most commonly used in Bitcoin’s blockchain?
- Proof of Stake (PoS)
- Proof of Work (PoW) (Correct answer)
- Delegated Proof of Stake (DPoS)
- Practical Byzantine Fault Tolerance (PBFT)
Correct answer: Proof of Work (PoW)
Proof of Work (PoW) is the consensus mechanism used in Bitcoin to validate transactions and secure the network.
Question 3: What makes blockchain immutable?
- Data can be freely edited and changed
- It uses cryptographic hashing and linking (Correct answer)
- It has no security measures
- It depends on a central authority for verification
Correct answer: It uses cryptographic hashing and linking
Blockchain immutability is achieved through cryptographic hashing and a linked chain structure that prevents data alteration.
Question 4: Which feature of blockchain enhances security?
- Centralized control
- Decentralization (Correct answer)
- Unencrypted transactions
- Storing all data in a single node
Correct answer: Decentralization
Decentralization removes a single point of failure, reducing the risk of data tampering and cyberattacks.
Question 5: What role do smart contracts play in blockchain technology?
- They require human verification for execution
- They automate transactions based on predefined rules (Correct answer)
- They store large files on the blockchain
- They can be altered after execution
Correct answer: They automate transactions based on predefined rules
Smart contracts are self-executing agreements with coded terms that automate transactions without intermediaries.
Question 6: Which of the following best describes a public blockchain?
- It is controlled by a single organization
- It is open to everyone and fully transparent (Correct answer)
- It restricts access to specific users
- It operates without any consensus mechanism
Correct answer: It is open to everyone and fully transparent
A public blockchain is open to everyone, allowing any participant to validate transactions and maintain transparency.
CBC Blockchain Fundamentals & Technologies
What is the primary function of blockchain technology?