BC & Transactions, Lesson 4 Benefits and challenges

What is one of the main benefits of blockchain technology mentioned in the passage?

• It reduces the cost and time required to maintain trust across industries.

• It allows businesses to easily scale up their operations.

• It provides a way for small businesses to manage their data more efficiently.

• It significantly reduces the energy consumption required for data storage.

According to the passage, how does blockchain technology help reduce fraud in business?

• It secures and approves data through a consensus vote before adding it to the ledger.

• It creates more opportunities for hackers to access the system.

• It eliminates the need for intermediaries in the banking industry.

• It allows for more efficient financial reporting.

The passage suggests that blockchain technology may not be beneficial for which type of business?

• A large company with many transactions and data transfers.

• A small pottery business with few employees and one supplier.

• A global management and consulting firm.

• A company with a complex accounting system.

What is the main challenge with scalability of blockchain technology mentioned in the passage?

• The cost of running the ledger increases as it grows in size.

• Blockchain technology is unable to handle increased demand or workload.

• Larger ledgers require more disk space, which is costly for all participants.

• Blockchain technology is not suitable for businesses that are rapidly expanding.

Which industry is specifically identified in the passage as benefiting from the adoption of blockchain-based systems?

• The pottery industry.

• The accounting industry.

• The investment banking industry.

• The management consulting industry.

What feature of blockchain technology helps ensure the security of data, according to the passage?

• The data is secured and approved by a consensus vote before being added to the ledger.

• The blockchain ledger is decentralized, making it more difficult to tamper with.

• The blockchain technology is highly scalable, allowing it to handle large amounts of data.

• The blockchain technology requires less energy consumption than traditional data storage methods.