Blockchain Security Threats

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What is the primary requirement for updating a blockchain?

Using a central authority to control the network

Reaching a consensus among a majority of nodes

Creating a large number of pseudonymous identities

Validating against strict criteria defined by the blockchain protocol (correct)

What is the main goal of decentralization in blockchain?

To increase the control of top management

To reduce the efficiency of the system

To create a large number of pseudonymous identities

To distribute control and authority to the peripheries (correct)

What is a 51% attack in blockchain?

An attack on a computer network using a large number of pseudonymous identities

A type of cryptographic security mechanism

When an attacker has the majority of 'votes' that can decide which chain counts as truth (correct)

A type of decentralized system where nodes are under the control of a single authority

What is the benefit of decentralization in terms of decision making?

Expedited decision making Signup and view all the answers

What is the primary challenge that a Sybil attack poses to blockchain?

It can pull off a 51% attack Signup and view all the answers

What is the characteristic of a decentralized system in blockchain?

Control and authority are distributed to the peripheries Signup and view all the answers

What is the primary goal of the PoW algorithm in a blockchain network?

To prevent Sybil attacks Signup and view all the answers

What is the purpose of the 'nonce' value in the PoW equation?

To find a number that meets the difficulty target Signup and view all the answers

What is the 'Partial hash inversion problem' in the context of PoW?

A computational problem to find a hash less than the target value Signup and view all the answers

What is the analogy used to describe the PoW mechanism in the Bitcoin Network?

Miners are like gamblers in a casino Signup and view all the answers

What is the purpose of the 'target network difficulty value' in the PoW equation?

To control the rate of block creation Signup and view all the answers

What is the security implication of the PoW mechanism?

It makes the blockchain resistant to collusion attacks Signup and view all the answers

What is a key benefit of a longer blockchain?

It becomes safer and more secure Signup and view all the answers

What is a key principle related to personal data and privacy in blockchain?

Individuals should control their own data and decide what to share Signup and view all the answers

Why is the Bitcoin blockchain considered significant?

It is the largest civilian deployment of PKI in the world Signup and view all the answers

What was a major concern that led to the development of secure data protection?

Data breaching incidents in financial firms Signup and view all the answers

What is a benefit of blockchain protocols?

They allow users to choose their desired privacy level Signup and view all the answers

What is the relationship between blockchain length and security?

A longer blockchain is more secure Signup and view all the answers