Fundamental Concepts and Working Principles of Blockchain Technology BBLC Practice Questions (Page 10)

Questions 46–50

1. 46application · medium

   A pharmaceutical company is implementing a blockchain to track drug shipments across multiple suppliers. They want regulators to be able to audit the entire history, but they also need to protect proprietary pricing information from being visible to all participants. Which blockchain design best satisfies both requirements?

   • AA private blockchain with a single organization controlling all nodes, giving that organization full control over data visibility.
   • BA private blockchain with no external access, because regulators can request data directly from the company when needed.
   • CA consortium blockchain with permissioned access, where transaction details are encrypted or hashed and only authorized parties (including regulators) can decrypt or view them.
   • DA public blockchain where all transaction data is visible to everyone, ensuring full transparency for regulators.
   Reveal Solution Discussion Select an answer first
2. 47expert · hard

   A decentralized insurance platform uses a smart contract to automatically pay claims when a flight is delayed. The contract relies on an oracle to provide flight status data. The oracle is compromised and reports a delay for a flight that was actually on time, causing the contract to pay out incorrectly. Which mitigation would best prevent this type of failure?

   • AUse multiple independent oracles and require a majority agreement before the smart contract accepts the data.
   • BIncrease the gas limit for the smart contract to ensure it can process more data.
   • CWrite the smart contract in a more secure programming language to prevent code vulnerabilities.
   • DStore the flight data directly on the blockchain instead of using an oracle.
   Reveal Solution Discussion Select an answer first
4. 48application · medium

   A bank is evaluating whether to use a blockchain or a traditional centralized database for a new interbank reconciliation system. They need all participating banks to have a consistent, shared view of transactions, but they also need to control which banks can participate. Which statement best describes the advantage of a permissioned DLT over a centralized database in this scenario?

   • AThe centralized database can be accessed by all banks through a shared API, providing the same consistency.
   • BA permissioned DLT eliminates the need for any consensus mechanism.
   • CEach bank maintains its own copy of the ledger, and consensus ensures all copies converge to the same state.
   • DA permissioned DLT is always faster than a centralized database.
   Reveal Solution Discussion Select an answer first
5. 49foundation · easy

   Which statement best defines blockchain technology in a business context?

   • AA centralized database that stores transaction records in a single server for faster access.
   • BA type of cloud storage service that ensures data is encrypted and backed up across multiple regions.
   • CA peer-to-peer file-sharing protocol that allows users to exchange digital files without a central server.
   • DA distributed, append-only ledger that records transactions in cryptographically linked blocks shared across a network.
   Reveal Solution Discussion Select an answer first
6. 50foundation · easy

   How is blockchain related to distributed ledger technology (DLT)?

   • ABlockchain and DLT are two names for the same technology with no differences.
   • BBlockchain is a specific type of DLT that organizes data into cryptographically linked blocks.
   • CDLT is a specific type of blockchain that uses a centralized database.
   • DDLT is a consensus mechanism used only in blockchain networks.
   Reveal Solution Discussion Select an answer first