Blockchain Components 1

What is the role of a block in a blockchain?

• Blocks are used for mining cryptocurrencies

• Blocks are responsible for encrypting data in a blockchain

• Blocks store data, timestamps, and a reference to the previous block in a blockchain.

• Blocks are used to track user activity in a blockchain

Describe the purpose of a timestamp in a blockchain.

• To encrypt the data stored in the blockchain

• To identify the sender of a transaction

• To determine the size of the block

• To record the exact time when a block is added to the chain and establish the chronological order of transactions and blocks.

Describe the function of a wallet in the context of blockchain.

• A wallet is a type of software used for video editing

• A wallet is a physical device used to access the internet

• A wallet functions as a digital tool for storing and managing cryptocurrencies securely.

• A wallet is used to mine new cryptocurrencies

What is the importance of immutability in blockchain?

• Immutability in blockchain increases the risk of data tampering

• Immutability in blockchain slows down transaction processing

• Immutability in blockchain ensures data integrity and security by preventing alteration or deletion of recorded information.

• Immutability in blockchain allows for easy modification of recorded data

Discuss the role of miners in the blockchain ecosystem.

• Miners validate transactions, add them to blocks, and secure the network through mining.

• Miners create new cryptocurrencies

• Miners are responsible for marketing blockchain technology

• Miners are only involved in verifying user identities

What is the purpose of a peer-to-peer network in blockchain?

• To provide a single point of control for all network participants

• To enable decentralized data sharing and consensus mechanisms without a central authority.

• To increase the speed of transactions by centralizing data storage

• To limit access to data by requiring permission from a central authority

Explain the term 'block reward' in the context of blockchain.

• A form of interest paid to blockchain users

• A type of encryption used to secure blockchain transactions

• A penalty imposed on miners for errors in block creation

• Cryptocurrency given to miners for adding a new block to the blockchain.

What is the primary advantage of structured P2P networks?

• • Simple implementation

• • High scalability and efficient search

• • Anonymity of nodes

• • Minimal maintenance

Which of the following is a characteristic of an unstructured P2P network?

• • Uses a central server for coordination

• • Nodes have a predefined structure for connectivity

• • Nodes connect randomly to each other

• • Utilizes a Distributed Hash Table (DHT)

In a hybrid P2P network, the central server typically handles:

• • User authentication and directory services

• • All data storage

• • Routing of all data packets

• • Nothing; it is purely decentralized