Blockchain - Quiz

Open Decentralized.

Blockchain provides an open and decentralized database for every transaction involving value. This means that the database is accessible to anyone with an internet connection and is not owned or controlled by any central authority. Instead, the database is maintained by a network of nodes, each with a copy of the database and the ability to validate transactions. This decentralized approach ensures transparency, immutability, and security of transactions, without the need for intermediaries such as banks or governments.

True.

Consortium blockchain has a predefined set of nodes that are allowed to write data onto the blockchain. These nodes are typically controlled by a group of organizations that have agreed to participate in the consortium and have a stake in the network. Unlike public blockchains such as Bitcoin or Ethereum, where anyone can participate as a node and write data onto the blockchain, consortium blockchains are designed to be more private and controlled. This makes them suitable for enterprise applications where data privacy and confidentiality are paramount. However, consortium blockchains are still decentralized and allow for multiple parties to verify and validate transactions on the network.

False.

Blockchain networks have the potential to eliminate the need for traditional financial intermediaries such as banks, although it depends on the specific use case and implementation. Blockchain networks allow for direct peer-to-peer transactions without the need for intermediaries to verify and settle transactions. This can significantly reduce transaction costs, increase transaction speed, and improve financial inclusion, particularly for individuals or businesses that may not have access to traditional financial services. However, blockchain networks may still require some form of regulation and oversight to ensure compliance with laws and regulations, particularly in the areas of anti-money laundering (AML) and know-your-customer (KYC) requirements.

Multichain is an example of a Private Blockchain.

Multichain is a platform for building and deploying private blockchains, which are designed to be used within a specific organization or group of organizations. Private blockchains like Multichain allow for faster transactions, greater control over data privacy, and increased scalability compared to public blockchains like Bitcoin and Ethereum. Multichain also provides a range of features such as permission management, asset issuance, and transaction metadata, making it a popular choice for enterprise applications.

Public Blockchain.

The term "for the people, by the people, and of the people" is often used to describe public blockchains. Public blockchains like Bitcoin and Ethereum are decentralized networks that are open to anyone, without requiring permission or access controls. Anyone can participate in the network by running a node, validating transactions, and contributing to the security and consensus of the network. This makes public blockchains highly transparent, censorship-resistant, and trustworthy, with no central authority controlling the network.

True

Block rewards are given to the nodes or miners who successfully add a new block to the blockchain, not for every successful transaction verification in the network. The block rewards serve as an incentive for nodes to participate in the consensus mechanism and help secure the network. In the case of Bitcoin, for example, the current block reward is 6.25 BTC, which is awarded to the miner who successfully adds a new block to the Bitcoin blockchain. The block reward is designed to decrease over time, with the goal of eventually reaching a maximum supply of 21 million BTC.

The output of hashing is popularly known as a digest.

Hashing is the process of taking an input (such as a message or data file) and producing a fixed-length string of characters, which is the digest or hash. This hash is unique to the input data, and even a small change in the input data will result in a completely different hash. Hashing is widely used in cryptography and blockchain technology to ensure the integrity and authenticity of data.

All the options are advantages of using Bitcoin.

Bitcoin offers several advantages over traditional payment methods, including:

1. Your account cannot be frozen: Bitcoin transactions are irreversible and cannot be stopped or frozen by any third party. This means that once a transaction is processed, it cannot be reversed.

2. Negligible transaction fee: The transaction fees associated with Bitcoin are generally much lower than those associated with traditional payment methods such as credit cards or bank transfers.

3. Can be used to transfer money anywhere in the world: Bitcoin transactions can be made from anywhere in the world, without the need for a bank account or other financial institution.

Overall, Bitcoin provides a fast, secure, and cost-effective way to transfer value between individuals and businesses.

True.

In Bitcoin mining, the difficulty level of mining adjusts automatically every 2016 blocks, or roughly every two weeks, based on the computational power of the network. If there are more miners and computing power on the network, the difficulty level increases, and vice versa. The goal of adjusting the difficulty level is to maintain a stable rate of block creation, which is about one block every 10 minutes in the case of Bitcoin. By adjusting the difficulty level, the network can ensure that new blocks are added to the blockchain at a consistent rate, regardless of the number of miners or their computational power.

The first smart contract platform is Ethereum. It was created by Vitalik Buterin and launched in 2015.