A startup is building a decentralized identity system where users control their own credentials. They want to avoid any single point of failure and ensure that no central authority can revoke a user's identity. Which architecture best aligns with these goals?

A consortium blockchain where a group of companies controls identity issuance

A private blockchain operated by the startup itself

Self-sovereign identity using a public blockchain for decentralized identifiers and verifiable credentials

A centralized identity provider that issues and revokes credentials

An insurance company wants to automate claims payouts when a flight is delayed by more than three hours. They plan to use a smart contract that receives flight data from an external source. What is the most important additional component they need to ensure the smart contract executes correctly?

A multi-signature wallet to approve the payout

A decentralized storage solution to archive the flight data

An oracle service that provides trusted flight-delay data to the smart contract

A second smart contract to verify the oracle's identity

Which characteristic is a core feature of blockchain technology?

Reliance on a trusted third party to validate every transaction.

Immutability of recorded data once consensus is achieved.

Data stored only on a single server for easy access.

A single point of control that can modify historical records at will.

Which property of a cryptographic hash function is essential for ensuring data integrity in a blockchain?

Variable output length: the hash size changes with input size.

Speed: hashing is extremely fast, allowing real-time encryption.

Determinism: the same input always produces the same hash.

Reversibility: the original data can be recovered from the hash.

A startup is choosing between a centralized database and a DLT for a supply-chain tracking system. Their main requirement is that multiple independent organizations must be able to verify the history of a product without trusting a single central operator. Which characteristic of DLT most directly addresses this requirement?

Each participant maintains a copy of the ledger and validates updates through consensus

The system uses a shared spreadsheet stored on a cloud drive with edit permissions for all partners

The database uses a master-slave replication model to ensure high availability

The system uses a cloud-based relational database with role-based access control

EC-CouncilBlockchain Developer Certification

Domain 1Objective 1

Blockchain Technology Concepts and Distributed Ledger Technology (DLT) BDC Practice Questions (Page 7)

Part of the Blockchain Fundamentals and Architecture domain, which makes up ~14% of our current practice bank.

46questions here

10free pages

10concepts

Questions 31–35

31expert · hard
A startup is building a decentralized identity system where users control their own credentials. They want to avoid any single point of failure and ensure that no central authority can revoke a user's identity. Which architecture best aligns with these goals?
Select an answer first
32application · medium
An insurance company wants to automate claims payouts when a flight is delayed by more than three hours. They plan to use a smart contract that receives flight data from an external source. What is the most important additional component they need to ensure the smart contract executes correctly?
Select an answer first
33foundation · easy
Which characteristic is a core feature of blockchain technology?
Select an answer first
34foundation · easy
Which property of a cryptographic hash function is essential for ensuring data integrity in a blockchain?
Select an answer first
35application · medium
A startup is choosing between a centralized database and a DLT for a supply-chain tracking system. Their main requirement is that multiple independent organizations must be able to verify the history of a product without trusting a single central operator. Which characteristic of DLT most directly addresses this requirement?
Select an answer first

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