Fundamental Concepts and Working Principles of Blockchain Technology BBLC Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A government agency is evaluating blockchain options for a national land registry. They need a system that provides a tamper-evident record of property ownership, but they also require that only authorized notaries can submit new transactions. Which blockchain type best meets these needs?

   • APublic blockchain, because it offers the highest level of decentralization and transparency.
   • BPrivate blockchain, because it allows the agency to control who can participate and submit transactions.
   • CConsortium blockchain, because it allows multiple government agencies to share control.
   • DHybrid blockchain, because it combines public and private features.
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A food retailer wants to trace the origin of produce from farm to store to quickly identify the source of contamination during a recall. They need a system that provides a complete, auditable history of each product's journey. Which blockchain characteristic is most directly leveraged in this use case?

   • ADecentralization, because it removes the need for a central authority to manage the supply chain.
   • BImmutability, because once a record is added, it cannot be altered, ensuring the traceability data is reliable.
   • CSmart contracts, because they can automatically execute recalls when contamination is detected.
   • DConsensus mechanisms, because they ensure all parties agree on the order of transactions.
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   A pharmaceutical company wants to use blockchain to track drug shipments across multiple distributors. They want to provide regulators with a complete audit trail of each batch's journey. Which blockchain feature is most directly responsible for enabling this audit trail?

   • AThe use of smart contracts to automate inventory management
   • BThe decentralization of data across multiple nodes
   • CThe ability to update or delete records to correct errors
   • DThe ability to append new blocks containing transaction records in chronological order
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   In which industry is blockchain commonly applied for identity management?

   • AHospitality, for booking hotel rooms.
   • BRetail, for displaying product prices.
   • CHealthcare, for managing patient records and consent.
   • DConstruction, for mixing concrete.
   Reveal Solution Discussion Select an answer first
6. 10expert · hard

   A consortium of energy companies wants a blockchain to record renewable-energy certificates. They need to prevent a single company from controlling the ledger, but they also require high throughput and low latency. They are considering Proof of Authority (PoA) with a fixed set of validators. What is the most significant trade-off they must accept?

   • AThe network will be fully decentralized because validators are elected by all participants.
   • BThe network will be permissionless, allowing anyone to become a validator.
   • CThe network will have high throughput, but it will require significant energy consumption similar to Proof of Work.
   • DThe validators are known and trusted, but the network is only as decentralized as the validator set; a colluding majority could rewrite history.
   Reveal Solution Discussion Select an answer first