Understanding Blockchain Basics

What is a blockchain?

• A blockchain is a physical ledger used for accounting.

• A blockchain is a decentralized digital ledger that records transactions in a secure and immutable way.

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

• A blockchain is a type of cryptocurrency.

How does blockchain ensure data integrity?

• Blockchain uses traditional databases for data management.

• Data integrity is ensured by regular backups of the system.

• Data is stored in a central server for easy access.

• Blockchain ensures data integrity by using cryptographic hashing, immutability, and consensus mechanisms.

What are the main components of a blockchain?

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

• Protocols, Servers, Data Structures

• Users, Tokens, Fees

• Transactions, Ledger, Smart Contracts

Explain the concept of decentralization in blockchain.

• Decentralization in blockchain means distributing control across a network, allowing multiple nodes to validate transactions, enhancing security and transparency.

• Decentralization refers to the physical location of servers in a blockchain.

• Decentralization eliminates the need for any validation of transactions.

• Decentralization means a single entity controls the entire network.

What is a consensus mechanism?

• A consensus mechanism is a type of database management system.

• A consensus mechanism is a protocol that ensures agreement on a single data value among distributed systems.

• A consensus mechanism is a hardware component for network security.

• A consensus mechanism is a method for data encryption.

What is Proof of Work (PoW)?

• A consensus mechanism that relies solely on user votes

• A method to create new cryptocurrencies without effort

• A way to store data securely without validation

• Proof of Work (PoW) is a consensus mechanism that requires computational effort to validate transactions and secure a blockchain.

How does Proof of Stake (PoS) differ from PoW?

• PoS requires more hardware than PoW.

• PoW is more energy-efficient than PoS.

• PoW relies on computational power for mining, while PoS relies on the amount of cryptocurrency held by validators.

• Validators in PoS are randomly selected based on their mining speed.

What are the advantages of using PoS over PoW?

• PoS is less secure than PoW.

• PoS is more energy-efficient, faster, scalable, and promotes decentralization compared to PoW.

• PoS transactions are slower than PoW.

• PoS requires more computational power than PoW.

What is Bitcoin and who created it?

• Bitcoin is a social media platform created by Mark Zuckerberg.

• Bitcoin is a type of stock created by Elon Musk.

• Bitcoin is a physical currency created by the Federal Reserve.

• Bitcoin is a decentralized digital currency created by Satoshi Nakamoto.

How does Bitcoin mining work?

• Bitcoin mining requires physical coins to be mined from the ground.

• Bitcoin mining works by solving mathematical problems to validate transactions and add them to the blockchain.

• Bitcoin mining is the process of creating new cryptocurrencies without any validation.

• Bitcoin mining involves trading cryptocurrencies directly.