Privacy and Zero-Knowledge Innovations BDC Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   How do zero-knowledge techniques enable private smart contract execution while maintaining verifiability?

   • ABy allowing the contract to compute on hidden inputs and produce a zero-knowledge proof that the computation was performed correctly.
   • BBy using a trusted execution environment (TEE) that only outputs the final result to the blockchain.
   • CBy storing the contract state off-chain and only publishing a hash of the state.
   • DBy encrypting the contract code so that only the executing node can read it.
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   What is the purpose of confidential assets in a blockchain that uses zero-knowledge proofs?

   • ATo ensure that the asset's value is always equal to the market price.
   • BTo encrypt the asset's metadata so that only the issuer can read it.
   • CTo create a new asset that is only visible to a select group of users.
   • DTo hide the type and amount of an asset being transferred while still proving that the transaction is valid.
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   Which mechanism is commonly used to achieve anonymous transactions in a blockchain?

   • AEncrypting the transaction with the receiver's public key so only the receiver can read it.
   • BStoring transaction data off-chain and only posting a hash on-chain.
   • CUsing a central authority to shuffle transactions before they are added to the ledger.
   • DUsing zero-knowledge proofs to prove that a transaction is valid without revealing the sender, receiver, or amount.
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A startup is building a blockchain-based identity system where users must prove attributes (e.g., age, nationality) without revealing the underlying data. They expect the system to be used for many years and are concerned about future quantum computers. Which proof system should they choose?

   • ASchnorr signatures
   • Bzk-STARKs
   • CBulletproofs
   • Dzk-SNARKs
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A blockchain platform wants to support private smart contracts but has limited on-chain storage and needs to minimize gas costs for users. Which proof system is most suitable?

   • AHash-based signatures
   • Bzk-SNARKs
   • Czk-STARKs
   • DBulletproofs
   Reveal Solution Discussion Select an answer first