SEC+ Mod 4 Part 3

What is the primary characteristic of a decentralized network in blockchain?

• It operates on a centralized server.

• It operates on a decentralized network.

• It uses a single point of control.

• It relies on a single entity for validation.

Answer explanation

The primary characteristic of a decentralized network in blockchain is that it operates on a decentralized network.

How is data structured in a blockchain?

• In a linear sequence.

• In a hierarchical tree.

• Into "blocks" containing groups of data.

• In a circular loop.

Answer explanation

Data in a blockchain is structured into 'blocks' containing groups of data, not in a linear sequence, hierarchical tree, or circular loop.

What is the purpose of cryptographic hashing in blockchain?

• To create a fixed-size, "hash" or digital fingerprint.

• To encrypt the entire blockchain.

• To create a variable-size, "hash" or digital fingerprint.

• To store data in plain text.

Answer explanation

Cryptographic hashing in blockchain is used to create a fixed-size, 'hash' or digital fingerprint for data integrity and security purposes.

What do consensus mechanisms in blockchain rely on?

• A single validator.

• A centralized authority.

• Multiple validators to validate before adding to the chain.

• Random selection of validators.

Answer explanation

Consensus mechanisms in blockchain rely on multiple validators to validate before adding to the chain, ensuring decentralization and security.

What is a key feature of transparency and auditability in blockchain?

• Transactions are hidden and inaccessible.

• Transactions are transparent and accessible.

• Transactions are encrypted and private.

• Transactions are deleted after a certain period.

Answer explanation

Transactions in blockchain are transparent and accessible, allowing for easy verification and auditability of the data.

What does an immutable ledger in blockchain ensure?

• Transactions can be edited or deleted.

• Transactions are recorded/added and cannot be deleted.

• Transactions are temporary.

• Transactions are stored in a mutable format.

Answer explanation

An immutable ledger in blockchain ensures that transactions are recorded/added and cannot be deleted.

What do smart contracts in blockchain support?

• Programmable smart contracts.

• Manual contract execution.

• Non-programmable contracts.

• Paper-based contracts.

Answer explanation

Smart contracts in blockchain support programmable smart contracts, allowing for automated execution of predefined conditions and actions.

What is a common feature of digital tokens in blockchain?

• They are physical tokens.

• They are native digital tokens or cryptocurrencies.

• They are used only for internal transactions.

• They are not used in blockchain.

Answer explanation

They are native digital tokens or cryptocurrencies.

What does privacy and encryption in blockchain ensure?

• All transactions are public.

• Some transactions are private and encrypted.

• No transactions are encrypted.

• All transactions are deleted after encryption.

Answer explanation

Privacy and encryption in blockchain ensure that some transactions are private and encrypted, not all transactions are public.

What is the primary advantage of decentralization in blockchain technology?

• It increases the speed of transactions.

• It reduces the risk of a single point of failure.

• It makes the system more expensive.

• It centralizes control to a single authority.

Answer explanation

Decentralization in blockchain technology reduces the risk of a single point of failure, making the system more secure and resilient.