Fintech - Blockchain

The following is NOT a characteristic of the Distributed Ledger

• All nodes have access to the entire history

• A single party controls access to the information

• Every party can verify the records of its transaction

• All nodes have access to the entire database

A Blockchain allows for... (Select ALL that apply!)

• Peer-to-Peer transmission of information

• Transparency with pseudo-anonymity

• Irreversibility of Records

• Faster transactions than traditional credit cards

According to the reading, the following is a Transformative application of the blockchain

• Bitcoin-based giftcards

• Bitcoin payments

• Smart contracts

• Private ledgers

Answer explanation

The authors (HBR, 2018) identify the following relations.

In Proof-of-Stake, the fourth innovation of the blockchain technology, transaction validators are chosen _____ and it provides ______ (choose two)

• at random given ownership of coins

• by a competitive process

• faster transactions vs Proof-of-Work

• more secure transactions vs Proof-of-Work

What are some key differences between the blockchain and the early-internet growth? (select two)

• Much less resources were available in the early internet

• The early internet was non-commercial

• There was no hype surrounding the early internet

• Blockchain is much more secure

The following is TRUE about bitcoin

• It is environmentally friendly

• It exchanges energy by currency

• It cannot be hacked

• It is fast

Which one is NOT a factor useful to decide on a blockchain-enhanced business model?

• Level of damage if data is corrupted

• Incentives to distort the data in the ledger

• User trust in the data

• Number of expected transactions

The following are weaknesses of the blockchain technology (select all that apply)

• Vulnerability to a single entity controlling many nodes

• Weak encryption

• No way to recover private data

• Distributed data