Questions and Answers
What is a blockchain?
A permissionless blockchain has a central authority that controls transactions.
False
What does P2P stand for?
Peer to Peer
The first block of a blockchain is known as the ______.
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What is one main application of blockchain technology?
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Match the following blockchain features with their descriptions:
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Blockchain technology can help in creating an immutable data backup.
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Who created Bitcoin?
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What is one of the main characteristics of cryptocurrency?
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Bitcoin is the first decentralized digital currency.
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What mechanism does a sidechain utilize to connect to the Ethereum Mainnet?
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A _____ is a digital system for recording transactions in which details are recorded in multiple locations simultaneously.
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Which of the following best describes a semi-private blockchain?
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Distributed ledgers have a central data store that manages all transactions.
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Match the following blockchain concepts with their descriptions:
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Name a security feature inherent in blockchain technology.
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What is a disadvantage of the Proof of Work process?
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Ethereum is solely managed by a single entity.
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What does Ethereum primarily support in addition to its cryptocurrency?
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Smart contracts are embedded in computerized codes on a ______.
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Match the following terms with their definitions:
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Which of the following best describes how Ethereum expands on Bitcoin's capabilities?
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The history of all smart contracts is stored solely on the Ethereum platform's server.
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Who facilitates transactions between parties in a peer-to-peer network like Ethereum?
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Study Notes
Blockchain Technology Overview
- Blockchain serves as a secure network for transactions, protecting sensitive data from unauthorized access.
- Types of blockchain include permissionless (public) and semi-private variants.
- Core applications encompass voting management systems, supply chain management, healthcare, real estate, NFT marketplaces, copyright protection, and identity systems.
Key Blockchain Definitions
- Blockchain: A distributed ledger operating on a peer-to-peer network.
- P2P: Stands for "Peer to Peer," emphasizing direct interaction without intermediaries.
- Genesis Block: The first block in a blockchain, foundational for subsequent transactions.
- Cryptocurrency: Digital currency utilizing cryptography for security, characterized by decentralization and eliminating the need for traditional banking institutions.
Permissionless vs. Private Blockchains
- Permissionless Blockchain: Open-access for all participants, operates without central authority, allows everyone with good hardware and internet to participate.
- Semi-private Blockchain: Combines public participation with private controls enforced by a specific group.
Sidechains and Distributed Ledger Technology
- Sidechain: A separate blockchain connected to a main blockchain (e.g., Ethereum) via a two-way bridge; operates independently with tailored parameters.
- Distributed Ledger: A decentralized digital system that records transactions across multiple locations simultaneously, lacking a central data store.
Cryptocurrency Insights
- Cryptocurrencies operate without central regulatory authorities, relying on decentralized systems to document transactions.
- Transactions are recorded in public ledgers, while digital wallets serve as storage for cryptocurrencies.
Bitcoin Specifics
- Bitcoin is the inaugural decentralized digital currency, employing a Proof of Work consensus mechanism.
- Larger mining pools dominate block validation due to their computational power, disadvantaging smaller miners.
Ethereum and Smart Contracts
- Ethereum: A blockchain platform supporting the cryptocurrency ether (ETH) and decentralized applications (dApps); operates independently of any single entity.
- Smart Contracts: Digital agreements coded on the blockchain that self-execute when predefined conditions are met; allow for complex transactions beyond simple monetary exchanges.
Ethereum's Blockchain Features
- The Ethereum blockchain maintains a complete history of all smart contracts, stored by a worldwide network of volunteers.
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Description
Explore the fundamentals of blockchain technology including its types, core applications, and key definitions. This quiz covers permissionless and private blockchains, alongside concepts like cryptocurrency and the genesis block. Test your knowledge and understanding of how blockchain serves as a secure network for transactions.
