Blockchain and Distributed Ledger Technology Quiz

What is a key feature of blockchain technology?

• Centralized control

• Immutability

• High transaction fees

• Slow processing

What does DLT stand for?

• Distributed Ledger Technology

• Digital Ledger Transaction

• Decentralized Ledger Tool

• Data Logging Technology

Which consensus mechanism is used in Bitcoin?

• Delegated Proof of Stake

• Proof of Work

• Byzantine Fault Tolerance

• Proof of Stake

What is a characteristic of symmetric encryption?

• Is less secure than asymmetric encryption

• Uses two different keys

• Uses the same key for encryption and decryption

• Is slower than asymmetric encryption

Which of the following is NOT a feature of distributed ledger technology?

• Transparency

• Decentralization

• Fault tolerance

• Centralized authority

What is the main advantage of using smart contracts?

• Increased paperwork

• Automation of transactions

• Higher transaction costs

• Dependence on third parties

What does the term 'immutable' refer to in blockchain?

• Data cannot be altered once recorded

• Data is stored in a central location

• Data is always public

• Data can be easily changed

Which of the following is a challenge faced by blockchain technology?

• High transaction speed

• Scalability issues

• Low energy consumption

• Complete regulatory compliance

What is the purpose of hashing in cryptography?

• To store data in plaintext

• To ensure data is easily retrievable

• To create a fixed-size output from variable input

• To encrypt data

Which type of DLT requires permission from a central authority?

• Hybrid DLT

• Permissionless DLT

• Open DLT

• Permissioned DLT