Understanding Blockchain Technology

What is the definition of blockchain?

• A blockchain is a physical ledger used for accounting.

• A blockchain is a type of cryptocurrency.

• A blockchain is a decentralized digital ledger that records transactions in a secure and immutable way.

• A blockchain is a centralized database managed by a single entity.

How does a block in a blockchain function?

• A block in a blockchain is a type of cryptocurrency.

• A block in a blockchain functions as a container for transaction data, linking to previous blocks and ensuring security through cryptographic hashes.

• A block in a blockchain serves as a digital wallet for users.

• A block in a blockchain is a physical storage device for data.

What role does cryptography play in blockchain security?

• Cryptography is used to speed up transaction processing.

• Cryptography eliminates the need for consensus mechanisms.

• Cryptography is primarily for user interface design in blockchain.

• Cryptography ensures data integrity, confidentiality, and authenticity in blockchain security.

Can you name one application of blockchain technology?

• Social media

• Weather forecasting

• Online gaming

• Supply chain management

What are the main components of a blockchain?

• Transactions, Miners, Smart Contracts, Wallets

• Data, Encryption, Hashing, Tokens

• Ledgers, Validators, Fees, DApps

• Blocks, Chain, Consensus Mechanism, Nodes

How are blocks linked together in a blockchain?

• Blocks are linked by including the hash of the previous block in each new block.

• Blocks are linked by a central authority managing the chain.

• Blocks are linked through a random selection process.

• Blocks are linked by timestamps of each block.

What is a hash function in the context of blockchain?

• A hash function is a type of database used for storing blockchain data.

• A hash function is a cryptographic algorithm that produces a unique fixed-size output from input data, ensuring data integrity in blockchain.

• A hash function is a method for compressing data into a smaller size.

• A hash function is a visual representation of blockchain transactions.

How does blockchain ensure data integrity?

• Blockchain uses centralized servers for data storage.

• Blockchain relies solely on user permissions for security.

• Data integrity is ensured by regular backups.

• Blockchain ensures data integrity by using cryptographic hashing, decentralization, and consensus mechanisms.

What is a smart contract?

• A smart contract is a type of cryptocurrency used for transactions.

• A smart contract is a traditional legal agreement signed on paper.

• A smart contract is a self-executing contract with the terms written into code on a blockchain.

• A smart contract is a physical document that requires notarization.

In what industries is blockchain technology being used?

• Manufacturing

• Finance, Supply Chain, Healthcare, Real Estate, Entertainment

• Agriculture

• Telecommunications