Understanding Blockchain Technology

Blockchain technology is a distributed ledger that allows participants to maintain a copy of the ledger and track transactions. It is used in various applications like payment processing, digital identification, supply chain monitoring, and digital voting. Transactions are shared with all participants and added to a block with a hash to ensure integrity. If a transaction is modified, the hash becomes invalid, ensuring security. Blockchain's versatility suggests it will have more applications in the future.

What is a key characteristic of blockchain technology?

• It is a centralized ledger.

• It is a private ledger.

• It is a distributed ledger.

• It is a temporary ledger.

Who can maintain the ledger in a blockchain?

• Anyone participating in the blockchain

• Only financial institutions

• Only authorized personnel

• Only the creator of the blockchain

Which of the following is NOT an application of blockchain technology?

• Supply chain monitoring

• Weather forecasting

• Digital voting

• Payment processing

What is required to start a transaction on the blockchain?

• A physical document

• A government approval

• A type of transaction

• A digital signature

What is a potential use of blockchain in digital identification?

• To create fake identities

• To track social media activity

• To store personal data securely

• To replace passports

What is the purpose of adding a hash to a block in the blockchain?

• To encrypt the block

• To ensure the integrity of transactions

• To speed up transaction processing

• To reduce the size of the block

What ensures that all devices in a blockchain have the same transaction information?

• Manual synchronization

• Distributed ledger

• Regular updates

• Centralized control

How does the blockchain handle a block with an invalid hash?

• It ignores the block.

• It accepts the block but marks it as suspicious.

• It throws out the block.

• It modifies the block to correct the hash.

What happens if someone modifies an existing transaction in the blockchain?

• The transaction is deleted.

• The hash remains valid.

• The transaction is automatically corrected.

• The hash becomes invalid.

What is the future potential of blockchain technology?

• It will be restricted to government use.

• It will have additional functionalities.

• It will only be used for cryptocurrencies.

• It will become obsolete.