Consensus and Scalability Innovations BDC Practice Questions (Page 8)

Questions 36–40

1. 36foundation · easy

   In blockchain design, what is the typical trade-off when increasing scalability?

   • AIncreased decentralization and security
   • BReduced transaction speed
   • CReduced decentralization or security
   • DIncreased transaction fees
   Reveal Solution Discussion Select an answer first
2. 37application · medium

   A team is building a blockchain for a supply chain network where many small transactions occur between different parties. They want to avoid the bottleneck of a single chain and enable parallel processing. Which structure would be most suitable?

   • AA single blockchain with a larger block size.
   • BA state channel network, where all transactions are settled off-chain.
   • CA sidechain with its own consensus, anchored to the main chain.
   • DDAG-based structure, where each new transaction references multiple previous transactions.
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   Which property is fundamental to a blockchain consensus mechanism?

   • AIt must be executed by a single trusted authority
   • BIt must ensure that all honest nodes eventually agree on the same state
   • CIt must allow any node to modify past blocks
   • DIt must require all nodes to be online simultaneously
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5. 39foundation · easy

   What is the main goal of cross-chain interoperability protocols?

   • ATo provide a new consensus mechanism
   • BTo increase the block size of all blockchains
   • CTo allow different blockchain networks to communicate and transfer assets
   • DTo replace all blockchains with a single unified chain
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6. 40application · medium

   A financial institution is building a permissioned blockchain for trade finance. They need high throughput and immediate finality, and they have a known set of 20 member nodes. Which consensus mechanism is most appropriate?

   • APractical Byzantine Fault Tolerance (PBFT), because it provides immediate finality and is designed for permissioned networks.
   • BDelegated Proof of Stake (DPoS), because it elects a small group of delegates for high throughput.
   • CSharding, because it partitions the network to increase throughput.
   • DProof of Work (PoW), because it is the most secure and does not require a known validator set.
   Reveal Solution Discussion Select an answer first