Questions and Answers
What is the main limitation of Blockchain 1.0?
What is the purpose of a digital wallet in cryptocurrency transactions?
What is the consequence of losing a private key in a digital wallet?
What is the main feature of Ethereum's blockchain?
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What is the term for a unique digital asset, such as a piece of art, that is stored on a blockchain?
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In what year did Ethereum's blockchain go live?
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What is the name of the cryptocurrency that uses cryptography to secure and verify transactions in the network?
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What is the purpose of a hardware wallet?
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What is the characteristic of a blockchain that makes it difficult to modify or corrupt records of transactions?
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What is the term for the process of verifying financial transactions and addressing the problem of double-spending in digital transactions?
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What is the primary function of an oracle in a blockchain network?
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What is the main difference between Blockchain 2.0 and Blockchain 3.0?
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What is the purpose of the Deploying American Blockchains Act of 2023?
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What is the significance of the classification of a cryptocurrency as a commodity or a security?
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What is the role of standards in the blockchain industry?
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What is the primary benefit of Blockchain-as-a-Service (BaaS)?
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What is the purpose of the ISO documents related to blockchain and distributed ledger technologies?
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What is the significance of the court ruling in 2023 on Ripple's XRP crypto token?
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What is the primary benefit of smart contracts?
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What is the primary feature of Blockchain 3.0 that enables its use in various industries?
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What is the key benefit of using blockchain in healthcare, as highlighted in the text?
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How does the combination of AI and blockchain enhance patient care, according to the text?
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Based on the provided text, which of these standards is most directly related to the application of blockchain in supply chain management?
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Which of these industry sectors is NOT specifically mentioned in the text as benefiting from blockchain technology?
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What is the primary function of blockchain DLT in supply chain management, as described in the text?
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What is the significance of the increasing integration of AI with blockchain technology?
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What is the primary characteristic of a public blockchain?
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Which statement accurately describes the role of distributed ledger technology (DLT) in relation to blockchain?
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What distinguishes a private blockchain from a public blockchain?
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What is the significance of a distributed ledger excluding tampered data sets?
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Which feature of blockchain technology allows for the creation of decentralized applications?
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Which of the following best characterizes the term 'consortium blockchain'?
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What aspect has led to the diminishing hype surrounding blockchain technology over the years?
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Which of the following statements about smart contracts is correct?
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Study Notes
Blockchain Overview
- Blockchain gained significant attention in 2017, marking its emergence beyond the initial concept of Bitcoin (2009).
- Functions as a distributed digital ledger across a network of computers, enhancing transaction transparency and security.
- Ethereum launched in 2015, enabling features like smart contracts and decentralized applications, as a notable blockchain platform.
- Despite decreasing hype, blockchain technology continues to see increasing usage and evolution as an emerging technology.
Key Concepts
- Blockchain Technology: An incorruptible digital ledger that can record any value, beyond just financial transactions.
- Distributed Ledger (DL): A database stored across multiple locations or participants, ensuring data is verified by all nodes.
- Immutability: Blockchain’s design prevents tampering, providing a reliable source of truth in data sets.
- Distributed Ledger Technology (DLT): Encompasses blockchain but can exist without it; blockchain is a specific type of DLT.
Blockchain Typology
- Public Blockchain: Open to anyone (permissionless).
- Private Blockchain: Restricted to single organization participation (permissioned).
- Consortium Blockchain: Involves multiple organizations (permissioned).
- Comprised of five design elements that integrate existing ideas into a secure digital ledger.
Evolution of Blockchain
- Blockchain 1.0 (2009): Bitcoin introduced to validate transactions and prevent double spending.
- Cryptocurrency Impact: Over 20,000 cryptocurrencies generated, with values fluctuating (Bitcoin peaked at nearly $69,000 in March 2024).
- Blockchain 2.0 (2015): Ethereum expanded blockchain uses for applications, data storage, and smart contracts using Solidity programming language.
- Smart contracts automate terms without third-party involvement, applicable in diverse fields (e.g., supply chain, voting).
Blockchain Challenges and Solutions
- Scalability and Interoperability: Initial applications faced limitations; new advancements address these issues to support complex decentralized applications.
- Blockchain 3.0: Enhancements in privacy and governance, promoting interoperability, and offering Blockchain-as-a-Service (BaaS) via vendors like AWS and Microsoft.
Legislative Context
- Legislative frameworks lag behind technology, with the Deploying American Blockchains Act of 2023 introduced in Congress to boost U.S. competitiveness in blockchain technology.
- Legal cases primarily revolve around the classification of cryptocurrencies (commodity vs. security), influencing regulatory frameworks by entities like the SEC.
International Standards
- Several ISO documents related to blockchain and distributed ledger technologies are available, with ongoing publications that may interest records and information management (RIM) professionals.
Use Cases
- Supply Chain Management: Blockchain enhances transparency, traceability, and accountability in logistics.
- Healthcare: Blockchain-based systems empower patients over their health data with controlled access.
- Sector Applications: Increasing integration of blockchain in government, finance, cybersecurity, and media, with potential advancements in AI for enhanced data insights and patient care.
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Description
Test your knowledge of blockchain technology and cryptocurrency concepts, including digital wallets, private keys, and Ethereum's blockchain features.