Blockchain Technology Concepts and Distributed Ledger Technology (DLT) BDC Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A government agency wants to issue digital credentials to citizens. They need to control who can validate transactions, but they also want citizens to be able to verify the authenticity of their own credentials without needing the agency's permission each time. Which type of blockchain best fits this requirement?

   • AA public blockchain where anyone can write and read data.
   • BA permissioned blockchain where the agency controls write access but allows public read access for verification.
   • CA private blockchain where only the agency can write and read data.
   • DA consortium blockchain where a group of agencies jointly manage the network.
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   How does a blockchain achieve immutability of recorded data?

   • ABy requiring a central administrator to approve all changes.
   • BBy using cryptographic hashes that link each block to the previous one, making tampering evident.
   • CBy encrypting all data with a private key that only the network owner holds.
   • DBy storing data on write-once media such as CD-ROMs.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   Which blockchain type is governed by a group of organizations rather than a single entity or the public?

   • ASovereign blockchain
   • BConsortium blockchain
   • CPrivate blockchain
   • DPublic blockchain
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   What is the primary purpose of a consensus mechanism in a blockchain network?

   • ATo allow a single administrator to approve transactions.
   • BTo provide a backup of the ledger on a central server.
   • CTo ensure all participants agree on the valid state of the ledger.
   • DTo encrypt all data stored on the blockchain.
   Reveal Solution Discussion Select an answer first
6. 10expert · hard

   A multinational corporation is considering a blockchain solution for cross-border payments. They need to comply with data-residency regulations that require personal data to remain within specific countries. They also want to avoid relying on a single legal entity as the operator. Which approach best satisfies both constraints?

   • ADeploy a consortium blockchain with nodes located only in the required countries and governed by a multi-jurisdictional board
   • BUse a public blockchain and rely on encryption to protect personal data
   • CUse a private blockchain operated by the corporation's headquarters in a single country
   • DUse a centralized database with a cloud provider that offers regional data centers
   Reveal Solution Discussion Select an answer first