Understanding Blockchain Technology

What is the definition of 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 type of cryptocurrency.

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

Who is credited with the invention of blockchain technology?

• Satoshi Nakamoto

• Elon Musk

• Vitalik Buterin

• Charles Hoskinson

In what year was Bitcoin, the first blockchain application, introduced?

• 2005

• 2009

• 2010

• 2012

What was the primary purpose of the first blockchain?

• To store personal data securely for social media.

• To facilitate smart contracts for real estate transactions.

• To create a new form of currency for online shopping.

• To enable secure, decentralized transactions for Bitcoin.

What is a key feature of blockchain that ensures data integrity?

• Data encryption

• Decentralized storage

• Cryptographic hashing

• Centralized control

How does decentralization benefit blockchain technology?

• Decentralization increases security, transparency, and trust in blockchain technology.

• Decentralization increases the cost of maintaining the network.

• Decentralization limits user access to the blockchain.

• Decentralization reduces the efficiency of transactions.

What is the structure of a block in a blockchain?

• A block is made up of multiple chains linked together.

• A block consists of a header and a body, where the header contains metadata and the body contains transactions.

• A block is a single transaction without any metadata.

• A block contains only the header with no body.

What information is typically stored in a block header?

• Block size, transaction count, miner address, gas limit.

• Transaction fees, block reward, network difficulty, validator list.

• Node ID, block height, transaction IDs, consensus algorithm.

• Block version, previous block hash, timestamp, nonce, Merkle root hash.

How does a block reference the previous block in the chain?

• A block contains a timestamp of the previous block.

• A block references the previous block by its ID.

• A block includes a list of transactions from the previous block.

• A block includes a hash of the previous block in its header.

How does blockchain enhance security compared to traditional databases?

• Blockchain relies on a single central server for data storage.

• Records in blockchain can be easily altered by any user.

• Blockchain does not use any encryption methods for data protection.

• Blockchain enhances security by decentralizing data storage, ensuring immutability of records, and using cryptographic techniques.