Fundamental Concepts and Working Principles of Blockchain Technology BBLC Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   What is a key difference between public and private blockchains?

   • APublic blockchains are permissionless, while private blockchains restrict access to authorized participants.
   • BPublic blockchains use Proof of Stake, while private blockchains use Proof of Work.
   • CPublic blockchains are faster than private blockchains.
   • DPrivate blockchains are always more secure than public blockchains.
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   How does Proof of Stake (PoS) differ from Proof of Work (PoW)?

   • APoS requires participants to solve complex mathematical puzzles to add blocks.
   • BPoS uses a central authority to approve transactions.
   • CPoS selects validators based on the number of tokens they hold and are willing to 'stake'.
   • DPoS is less energy-efficient than PoW.
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A consortium of banks is implementing a shared ledger for cross-border payments. They need to provide regulators with a complete audit trail of all transactions, but they also need to keep transaction amounts confidential from other banks that are not party to the transaction. Which approach best meets both requirements?

   • AUse a consortium blockchain where all member banks can see all transactions, because trust among members is assumed.
   • BUse a private blockchain where only the two transacting banks can see the transaction, and regulators are given read-only access to the entire ledger.
   • CUse a permissioned blockchain with private transactions or off-chain data storage, where transaction details are encrypted and only authorized parties (including regulators) can decrypt them.
   • DUse a public blockchain where all transactions are visible to everyone, ensuring full transparency for regulators.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   Which challenge is often cited when integrating blockchain with existing business systems?

   • AThe requirement to use a specific programming language.
   • BThe lack of any security features.
   • CThe inability to store any data on the blockchain.
   • DInteroperability with legacy systems and other blockchains.
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A non-profit organization wants to show donors that their contributions are used as intended. They are considering a public blockchain to record all expenses. What is the main advantage of using a public blockchain over a private one for this purpose?

   • AThe non-profit can edit past transactions to correct errors.
   • BAnyone, including donors, can independently verify the recorded transactions without needing special access.
   • CTransactions are automatically approved by a central authority.
   • DThe non-profit can control who can see the transactions.
   Reveal Solution Discussion Select an answer first