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WorksheetsChapter 6: The Magic Ledger (DLT)
Total questions: 19
Worksheet time: 17mins
What is Blockchain?
An interconnected list of systems that are timestamped, secured and agreed upon by such system's participants
An interconnected list of records that are timestamped, secured and agreed upon by such system's participants
E.g. the content of these records are the amounts transferred, user info, details of terms behind each transactions
it provides the users the ability to access, observe, and analyze data stored on the blockchain
What are the THREE (3) elements of blockchain?
Accounting
Computer Science
Governance Systems
Technology
Processing & Communication
What is the function of a digital ledger in blockchain?
Records and logs the transactions of a community of users
Allowing every participant to maintain his or her own copy of this ledger
Allowing every participant to receive an updated ledger automatically
Processing the users' financial and non-financial information across the entire entity
Which one of the following are NOT the duties of the notary?
Identifying the parties involved and provisioning of significant proofs of identities
Acknowledging that the parties involved are of proper capacity to engage in what is intended
Witnessing the state of a document
Attesting to the seals and signatures contained in that documents
Handling, processing and storing the data
What is the duties of a notary in blockchain?
It allows the duties of a notary to be written into the computer code
The computer code will perform by the blockchain itself
Eliminating the need for third-party notary
What is a node?
it represents each participating computer in a network
it represents a machine in a network
it is a technology used to track students' attendance
Centralized systems are expensive and depend on one machine to do most of the heavy lifting jobs. However, upgrades can be done quickly to the system.
True
False
Compared to centralized systems, decentralized systems require all the computer nodes to form a large computer network in order to function such as sharing files, peripherals and other tools.
True
False
Decentralized systems are more reliable than a centralized systems because....
Decentralized systems are not prone to a single point of failure
If more resources needed in decentralized systems, simply adding more machines to the decentralized network
Decentralized systems do not rely on one central node to complete a specific task/process
Decentralized systems rely on one single machine to process and analyze the data
Which one of the following is NOT the FOUR (4) types of blockchain networks?
Private
Public
Hybrid
Consortium
Network
What is hashing?
A cryptography process to ensure data confidentiality, data integrity and authenticity
Converting a data set of arbitrary size into one of a fixed size
Converting a message regardless of its length into text with a fixed number of characters
No two messages have the same hash value
How to secure the contents of a digital wallet?
Key encryption with 2 keys created
Public key
Private key
My house key
What is a public and a private key?
A public key serves as the wallet's address and gives the user a point of access to send or receive tokens to the wallet
A private key gives the owner access privileges to the wallet and its content
Private key serves as the wallet's address and gives the user a point of access to send or receive tokens to the wallet
Public key gives the owner access privileges to the wallet and its content
Why does a blockchain network need to have protocols?
Protocols are programmed set of rules to determine the way in which information is treated and handled under certain circumstances to allow the transmission of communications
System errors can be maximized
Protocols are programmed set of rules to ensure the blockchain interferes the conflict of interest between the parties
What is consensus in a blockchain network?
a mutual understanding between the participants about what is published in the ledger
a mutual understanding between participants about what is a blockchain
Determine who are the participants that make the mistake or have conflict of interest
What are the similarities and differences between DLT & Blockchain?
Both give control of information and transactions to the users
Both are a type of database spread across multiple locations, nodes or participants
DLT do not need to have transactions mathematically linked
Blockchains links transactions together and this added feature offer more secure and efficient way to create immutable logbooks
What are the THREE (3) critical pieces of information in a block?
The hash of the previous block
the data for the current block
A hash of the current block
The keys to the door in my block
How is a digital signature created and what is its function?
When the private key in the wallet are processed through a special cryptographic function
When the blockchain transactions require proof that the sender is indeed the real owner of what is being sent
It is encrypted to avoid forgery for fraudulent purposes in other transactions or at another times.
Ironclad evidence to all users in blockchain that it is indeed the owner who requested the transactions in the blockchain
What are the FOUR (4) steps to create a blockchain transaction?
When 2 parties initiate a transaction, the blockchain assigns an encryption
Blockchain verifies the transactions and creates a block
The new block is appended/added to the blockchain
The digital ledger will be updated when the blockchain transaction is completed
The blockchain then require participant to enter data manually to update the ledger
