Blockchain Fundamentals Quiz Answers: Test Your Knowledge

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Questions and Answers

What does blockchain technology make unalterable and transparent?

Any digital asset (correct)

Any physical asset

Any network connection

Any financial transaction

What is the analogy used to understand blockchain technology?

Google Doc (correct)

Microsoft Excel

Online Database

Facebook Page

What is the number of bits in a nonce?

128-bit

64-bit

32-bit (correct)

16-bit

What is the purpose of a nonce?

To generate a block header hash Signup and view all the answers

What is the definition of Blockchain?

A peer to peer distributed ledger forged by consensus, combined with a system for smart contracts Signup and view all the answers

How many blocks make up a chain?

Multiple blocks Signup and view all the answers

Who released a white paper on 'What is Blockchain and How it works' in 1991?

Stuart Haber and W. Scott Stornetta Signup and view all the answers

What is distributed when we create a document and share it with a group of people?

The document's copy Signup and view all the answers

What was developed by Satoshi Nakamoto in 2009?

A distributed ledger, cryptocurrency/Electronic Cash System, Bitcoin Signup and view all the answers

What are the three critical ideas of blockchain technology illustrated by the Google Doc analogy?

Decentralization, cryptographic hashing, and transparency Signup and view all the answers

What percentage of financial institutions had adopted blockchain technology by 2020?

77% Signup and view all the answers

What is the characteristic of the hash generated by the nonce?

It starts with a huge number of zeroes Signup and view all the answers

What was the main motivation behind the creation of Blockchain?

To eliminate the need for third-party intermediaries Signup and view all the answers

What is a characteristic of Blockchain?

Peer to peer distributed ledger Signup and view all the answers

What is the purpose of miners in blockchain technology?

To mine blocks Signup and view all the answers

Who created a platform for creating smart contracts in 2015?

Vitalik Buterin Signup and view all the answers

What was collaboratively founded by IBM & Linux foundations in 2017?

Hyperledger Signup and view all the answers

What are the blocks in a Blockchain linked using?

Cryptography Signup and view all the answers

What is Bitcoin primarily classified as?

A cryptocurrency Signup and view all the answers

What is the main aim of Bitcoin?

To simplify and increase the speed of transactions without government restrictions Signup and view all the answers

What is Blockchain primarily used for?

To provide a low-cost, secure, and safe environment for peer-to-peer transactions Signup and view all the answers

What is the scope of Blockchain?

More open to changes and has backing of many top companies Signup and view all the answers

What is the strategy of Bitcoin?

To reduce the cost of influencers and reduce transaction time Signup and view all the answers

What is a key difference between Bitcoin and Blockchain?

Bitcoin is limited to currency transactions, while Blockchain can transfer anything Signup and view all the answers

What is a characteristic of Bitcoin?

It likes to be anonymous Signup and view all the answers

What is a requirement for Blockchain?

It should have compliance with KYC and other norms Signup and view all the answers

What is an advantage of Blockchain over Bitcoin?

It is more flexible and can be adapted to different industries Signup and view all the answers

What is the purpose of mining in a blockchain?

To create a new block on the chain Signup and view all the answers

What is the purpose of the Merkle root hash in a block?

To provide a cryptographic hash of all transactions in the block Signup and view all the answers

What is the purpose of the 'nBits' in a block?

To provide the current difficulty of the block Signup and view all the answers

What makes it difficult to manipulate blockchain technology?

The requirement of enormous amount of time and computing power Signup and view all the answers

What is the main characteristic of a blockchain system?

Decentralized, secure, safe, trustworthy, and transparent Signup and view all the answers

What is the role of nodes in a blockchain network?

To maintain copies of the blockchain and keep the network functioning Signup and view all the answers

What is an example of a consensus protocol?

Proof of Work (POW) Signup and view all the answers

What is the consequence of making a change to any block earlier in the chain?

All of the blocks that come after the changed block need to be re-mined Signup and view all the answers

What is the reward for miners when they successfully mine a block?

The miner is rewarded financially Signup and view all the answers

What is the term for the process of linking blocks together?

Block Chaining Signup and view all the answers

What languages can be used to write programs for blockchain?

Any language, including C++, Python, and Solidity Signup and view all the answers

What is the significance of the 'golden nonce' in blockchain technology?

It is the accepted nonce that generates an accepted hash Signup and view all the answers

What type of system does blockchain technology represent?

Decentralized system Signup and view all the answers

What is the consequence of decentralization in a blockchain network?

No one computer or organization can own the chain Signup and view all the answers

How do blocks in a blockchain reference each other?

Using a cryptographic hash Signup and view all the answers

What is the characteristic of the nonce in blockchain technology?

It is 32 bits Signup and view all the answers

What is the term for the header of a block?

Block Header Signup and view all the answers

What is the benefit of transparency in a blockchain ledger?

Every action in the ledger can be easily checked and viewed Signup and view all the answers

Study Notes

Blockchain Definition and History

Blockchain is a peer-to-peer distributed ledger forged by consensus, combined with a system for smart contracts.
In 1991, Stuart Haber and W. Scott Stornetta released a white paper on blockchain.
In 2009, Satoshi Nakamoto released a white paper and developed a distributed ledger, cryptocurrency, and electronic cash system called Bitcoin.
In 2015, Vitalik Buterin created a platform for creating smart contracts in Ethereum.
In 2017, IBM and Linux foundations collaborated to create a platform for creating smart contracts in Hyperledger.
By 2020, nearly 77% of financial institutions had adopted blockchain technology as part of an in-production system or process.

Blockchain vs. Bitcoin

Bitcoin is a cryptocurrency, while blockchain is a ledger.
The main aim of Bitcoin is to simplify and increase the speed of transactions without government restrictions, while blockchain provides a low-cost, secure, and safe environment for peer-to-peer transactions.
Bitcoin is limited to currency transactions, while blockchain can transfer anything from currencies to property rights to stocks.
Blockchain is more open to changes and has the backing of many top companies.

Blockchain Structure and Concepts

Blockchain consists of three important concepts: blocks, nodes, and miners.
Each block has three basic elements: data, a nonce, and a hash.
Miners create new blocks on the chain through a process called mining, which involves solving an incredibly complex math problem to find a nonce that generates an accepted hash.
Nodes are electronic devices that maintain copies of the blockchain and keep the network functioning.
Block metadata contains version, previous block header hash, Merkle root hash, time, and nBits.

Consensus Protocols

There are several consensus protocols, including:
- POW: Proof of Work
- POS: Proof of Stake
- DPOS: Delegated Proof of Stake
- POA: Proof of Authority
- POC: Proof of Capacity
- PoET: Proof of Elapsed Time
- POD: Proof of Deposit
- POB: Proof of Burn

Blockchain Technology

Blockchain technology makes the history of any digital asset unalterable and transparent through decentralization and cryptographic hashing.
A simple analogy for understanding blockchain technology is a Google Doc, where a document is distributed instead of copied or transferred, creating a decentralized distribution chain.
Blockchain is a secure, safe, trustworthy, and transparent system that is the future of all applications in the next 20 years.

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Test your knowledge of Blockchain technology, including its definition, history, applications, and structure. Learn key concepts and more!

Blockchain Fundamentals Quiz

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