018_Blockchain Technology - CompTIA Security+ SY0-701 - 1.4

What is blockchain technology commonly described as?

• A centralized database

• A distributed ledger

• A private server network

• A temporary storage system

What is the primary function of a distributed ledger in blockchain?

• To store personal information securely

• To track and record transactions

• To generate random numbers

• To replace cloud computing

How does blockchain ensure that all participants maintain an updated copy of the ledger?

• By using a central authority to distribute updates

• By allowing participants to download updates manually

• By automatically distributing changes to all participants

• By encrypting the ledger every 24 hours

What are some common use cases of blockchain technology?

• Social media management and online gaming

• Payment processing, digital identification, and supply chain monitoring

• File storage and document editing

• Cloud computing and email encryption

How is blockchain used in payment processing?

• It enables anonymous payments with no records

• It processes payments through a central banking system

• It records and verifies transactions without a central authority

• It converts paper currency into digital assets

In what ways can blockchain help with digital identification?

• By allowing users to create fake digital identities

• By securing identity verification through cryptographic records

• By making it easier to access social media accounts

• By replacing all forms of personal ID with a single username

Why is blockchain beneficial for supply chain monitoring?

• It reduces the need for shipping companies

• It allows real-time tracking of goods with tamper-proof records

• It removes the need for logistics planning

• It automates warehouse management

How does blockchain improve security and transparency in digital voting?

• By replacing paper ballots with touchscreen voting

• By centralizing all votes in a government database

• By creating a permanent, tamper-proof voting record

• By allowing votes to be changed if mistakes are made

What are the main steps involved in a blockchain transaction?

• Initiating a transaction, broadcasting it, adding it to a block, and securing it with a hash

• Sending a request, getting approval, and finalizing through a central authority

• Creating a transaction, storing it privately, and manually verifying it

• Encrypting the data, sending it to a central bank, and receiving confirmation

Why is transaction information shared with all participants instead of a single entity?

• To prevent data loss in case of server failure

• To ensure decentralization and transparency

• To allow competitors to access private information

• To reduce the cost of transaction processing