Fundamental Concepts and Working Principles of Blockchain Technology BBLC Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A retail company is evaluating blockchain for a loyalty program. They expect millions of small transactions per day. Which challenge is most likely to hinder their adoption?

   • ASmart contracts cannot handle conditional logic
   • BLack of any consensus mechanism suitable for permissioned networks
   • CLimited scalability and transaction throughput on many blockchain platforms
   • DInability to store any data on the blockchain
   Reveal Solution Discussion Select an answer first
2. 12expert · hard

   A multinational corporation wants to use blockchain for internal audit trails across its subsidiaries. They are deciding between a private blockchain and a public blockchain. Which factor most strongly favors a private blockchain in this scenario?

   • AThe requirement to use a cryptocurrency for internal transactions.
   • BThe need to avoid any consensus mechanism.
   • CThe need to restrict access to sensitive corporate data to authorized employees and auditors.
   • DThe desire to have the highest possible level of decentralization.
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   What is a common limitation of blockchain technology in business?

   • AScalability challenges due to the need for consensus across many nodes.
   • BIt is always faster than traditional databases.
   • CIt cannot store any data securely.
   • DIt is only suitable for cryptocurrency applications.
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   What is the core purpose of blockchain technology in business?

   • ATo enable multiple parties to share a tamper-resistant, synchronized record of transactions without a central authority.
   • BTo provide high-speed data storage for large volumes of unstructured data.
   • CTo create a private network for internal communication within a single organization.
   • DTo replace all existing IT systems with a single, unified platform.
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   What is a smart contract?

   • AA self-executing program stored on a blockchain that automatically enforces the terms of an agreement.
   • BA type of cryptocurrency used to pay for blockchain transactions.
   • CA database that stores encrypted business documents.
   • DA legal document that is stored on a blockchain and requires a notary to execute.
   Reveal Solution Discussion Select an answer first