Fundamental Concepts and Working Principles of Blockchain Technology BBLC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A startup is choosing between a traditional centralized database and a blockchain-based distributed ledger for a multi-party supply chain application. They want to ensure that no single participant can unilaterally alter historical records. Which key difference between a centralized database and a blockchain is most relevant to this requirement?

   • AA centralized database is cheaper to operate, whereas a blockchain is more expensive, so cost is the main consideration.
   • BA centralized database stores data in tables, whereas a blockchain stores data in blocks, so the data structure is the main difference.
   • CA centralized database has a single point of control, whereas a blockchain distributes control among multiple participants.
   • DA centralized database is always faster, whereas a blockchain is always slower, so performance is the main consideration.
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A developer is designing a private blockchain for a logistics company. They want to ensure that if a malicious node tries to alter a transaction in an old block, the tampering is immediately detectable by other nodes. Which design choice is most effective?

   • AInclude the hash of the previous block's header in each new block, and have nodes validate the entire hash chain periodically.
   • BEncrypt all transaction data with a shared key known to all nodes.
   • CStore all transactions in a single, append-only log file without hashing.
   • DUse a digital signature on each transaction, but do not link blocks together.
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   Which characteristic is essential for a distributed ledger?

   • AThe ledger is stored only on a central server for security.
   • BA single point of control that validates all transactions.
   • CEach participant maintains a copy of the ledger and updates it through consensus.
   • DTransactions are recorded only after a central authority approves them.
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   What is a key implication of decentralization for trust in business networks?

   • ATrust is eliminated entirely because no one is in control.
   • BParticipants must trust a central authority to validate transactions.
   • CTrust is based on the reputation of the largest participant.
   • DTrust is placed in the network's rules and consensus rather than in a single intermediary.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   Why is immutability important for business records on blockchain?

   • AIt allows records to be corrected easily if errors are found.
   • BIt ensures that historical records are trustworthy and can be audited with confidence.
   • CIt allows any participant to delete outdated records to save space.
   • DIt reduces the need for cryptographic hashing.
   Reveal Solution Discussion Select an answer first