Blockchain Technology Concepts and Distributed Ledger Technology (DLT) BDC Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   What is the primary difference between a distributed ledger and a traditional centralized database?

   • AA distributed ledger is maintained by multiple participants, while a centralized database is controlled by a single entity.
   • BA distributed ledger can only be accessed by one user at a time, while a centralized database allows concurrent access.
   • CA distributed ledger requires a central server to synchronize data, while a centralized database does not.
   • DA distributed ledger stores data in tables, while a centralized database stores data in blocks.
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2. 22expert · hard

   A multinational corporation is evaluating whether to replace its centralized ERP database with a DLT for intercompany transactions. The ERP currently provides strong consistency, complex query capabilities, and fine-grained access control. The corporation's main goal is to reduce reconciliation effort between subsidiaries. Which trade-off should the corporation most carefully evaluate before choosing a DLT?

   • ADLT automatically enforces all regulatory compliance requirements without additional configuration.
   • BDLT eliminates the need for any database administrator because the network is self-managing.
   • CDLT always provides higher throughput than a centralized database because it distributes the workload.
   • DDLT may provide eventual consistency rather than the strong consistency of a centralized database, which can affect real-time reporting.
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4. 23application · medium

   A developer is explaining to a client how a blockchain prevents someone from silently changing a transaction that was confirmed several blocks ago. Which combination of mechanisms makes such an alteration detectable?

   • AEach transaction is encrypted with the sender's private key, and any change makes the encryption unreadable to all nodes.
   • BEach block stores the hash of the previous block, so changing a transaction changes that block's hash and breaks the link to all subsequent blocks.
   • CThe network stores a backup of every block on a separate server, and the server compares all blocks nightly to detect changes.
   • DEach block stores a timestamp, and any change to a transaction is rejected because the timestamp no longer matches the network clock.
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5. 24foundation · easy

   What is a smart contract?

   • AA type of cryptocurrency that is used to pay for transaction fees.
   • BA legal document that is stored on a blockchain and requires a notary to execute.
   • CA program that runs on a blockchain and automatically executes the terms of an agreement when conditions are met.
   • DA digital signature that verifies the identity of a transaction sender.
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6. 25foundation · easy

   Which of the following is a real-world use case of blockchain technology?

   • ATracking the provenance of goods in a supply chain.
   • BStoring large multimedia files for streaming services.
   • CReplacing traditional relational databases for high-speed transaction processing.
   • DProviding free cloud computing resources to users.
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