Understanding Blockchain Technology

What is the definition of blockchain?

• A blockchain is a decentralized digital ledger that securely records transactions across multiple computers.

• A blockchain is a centralized database managed by a single entity.

• A blockchain is a type of cryptocurrency.

• A blockchain is a physical ledger used for accounting.

What are the main components of a blockchain?

• Protocols, Servers, Data Structures

• Transactions, Ledger, Smart Contracts

• Blocks, Chain, Consensus Mechanism, Cryptographic Hashes, Nodes

• Users, Tokens, Fees

What are the different types of blockchain?

• Public, Private, Consortium, Hybrid

• Public, Private, Open, Closed

• Tokenized, Layered, Scalable, Secure

• Centralized, Decentralized, Distributed, Open-source

How does distributed ledger technology work?

• It uses traditional databases for record storage.

• It relies on a central authority for transaction validation.

• It allows for single-point control of data management.

• Distributed ledger technology enables secure, transparent, and decentralized record-keeping across multiple locations.

What is an overview of smart contracts?

• Smart contracts are only applicable in real estate transactions.

• Smart contracts are automated, self-executing contracts on a blockchain that enforce and execute terms of an agreement.

• Smart contracts are physical documents that need to be signed by all parties.

• Smart contracts are traditional paper contracts that require manual enforcement.