Blockchain Components- 2

What is the purpose of a consensus mechanism in blockchain?

• To achieve agreement among nodes on the network regarding the validity of transactions.

• To prevent any changes to the blockchain

• To encrypt all data on the blockchain

• To increase the speed of block creation

How do smart contracts function in a blockchain network?

• Smart contracts function by executing predefined rules and conditions when specific criteria are met, enabling trustless and transparent transactions on the blockchain.

• Smart contracts function by allowing unlimited changes to the predefined conditions

• Smart contracts function by randomly selecting outcomes without any predefined rules

• Smart contracts function by relying on a centralized authority to validate transactions

What role do cryptographic hash functions play in securing blockchain transactions?

• Cryptographic hash functions are used to reveal the identity of blockchain users

• Cryptographic hash functions slow down blockchain transactions

• Cryptographic hash functions are only used for aesthetic purposes in blockchain

• Cryptographic hash functions ensure data integrity and security by creating unique digital fingerprints of transaction data that are stored on the blockchain.

Explain the concept of Proof of Work as a consensus mechanism.

• Proof of Work involves miners competing to solve cryptographic puzzles, with the first one to find the correct solution being rewarded with the right to add the next block to the blockchain. This mechanism ensures that transactions are legitimate and prevents double-spending.

• Proof of Work involves miners collaborating to solve cryptographic puzzles

• Proof of Work rewards miners based on the number of transactions they include in a block

• Proof of Work allows any participant to add blocks to the blockchain without competition

What are the advantages of using smart contracts in blockchain technology?

• Automation, transparency, security, efficiency, cost-effectiveness

• Flexibility, anonymity, scalability

• Speed, privacy, simplicity

• Decentralization, immutability, interoperability

Why is it important for cryptographic hash functions to be collision-resistant?

• To speed up the hashing process

• To prevent two different inputs from producing the same hash value and maintain data integrity and security.

• To increase the likelihood of hash collisions

• To allow for easy data compression

Describe the process of mining in a Proof of Work consensus mechanism.

• Mining involves physical extraction of minerals from the ground

• Mining in a Proof of Work consensus mechanism involves solving complex mathematical puzzles using computational power to add new blocks to the blockchain.

• Miners in Proof of Work use telepathy to solve puzzles

• Proof of Work mining is done by planting trees

What is the difference between public and private keys in blockchain cryptography?

• Public keys are longer than private keys.

• Public keys are used for decryption and signing, while private keys are used for encryption and verification.

• Public keys are kept secret, while private keys are shared publicly.

• Public keys are used for encryption and verification, while private keys are used for decryption and signing.

How does a smart contract self-execute based on predefined conditions?

• By waiting for a specific date to arrive

• By manually executing code on a centralized server

• By sending an email to the smart contract address

• By being deployed on a blockchain network and triggered by transactions meeting the specified conditions.

Why are cryptographic hash functions considered one-way functions?

• Cryptographic hash functions can be easily reversed with minimal computational effort.

• Cryptographic hash functions always produce the same output for different inputs.

• Cryptographic hash functions are reversible by design.

• Cryptographic hash functions are one-way functions because it is computationally infeasible to reverse the process of hashing to obtain the original input.