Blockchain Basics Exam Newest 2025 Complete Questions And Correct Detailed Answers (Verified Answers) |Already Graded A+||Brand New Version!!

Blockchain Basics EXAM NEWEST 2025 COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!! What does decentralization mean? - Answer- Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. what is a distributed immutable ledger? - Answer- A Distributed Immutable Ledger means the data doesn't sit on one all-powerful server and the data stored in it cannot be deleted or edited Transactions bring about transfer of value in Bitcoin Blockchain. The concept UTXO defines the inputs and outputs of such a transaction. Once a block is verified and algorithmically agreed by the miners, it is added to the chain of blocks, viz., the blockchain. What is UTXO? - Answer- An Unspent Transaction Output (UTXO) can be spent as an input in a new transaction. The main operations in a blockchain are transaction validation and block creation with the consensus of the participants. Yet, there are many underlying implicit operations, as well. What is a smart contract? - Answer- A Smart Contract provides the very powerful capability of "code execution" for embedding business logic on a Blockchain. Significant innovations such as smart contracts have opened up broader applications for blockchain technology. Private and permissioned- blockchains allow for controlled access to the blockchain, enabling many diverse business models. Explain private vs public blockchain - Answer- In a Private Blockchain, access to the Blockchain is limited to selected participants. Permissioned or Consortium Blockchain has the benefits of a public blockchain with allowing only users with "permission" to collaborate and transact. Address - Answer- In cryptocurrency, these are used to send or receive transactions on the network, they usually present themselves as a string of alphanumeric characters. ASIC (Application Specific Integrated Circuit) - Answer- Often compared to GPUs these are specially made for mining and may offer significant power savings Bitcoin - Answer- The first decentralized, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralized issuer. Block - Answer- These are packages of data that carry permanently recorded data on the blockchain network. Blockchain - Answer- a shared ledger where transactions are permanently recorded by appending blocks. These serve as a historical record of all transactions that ever occurred, from the genesis block to the latest block, hence its name. Block Explorer - Answer- An online tool to view all transactions, past and current, on the blockchain. They provide useful information such as network hash rate and transaction growth. Block Reward - Answer- A form of incentive for the miner who successfully calculated the hash in a block during mining. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of those. Central Ledger - Answer- A ledger maintained by a central agency. Confirmation - Answer- The successful act of hashing a transaction and adding it to the blockchain. Cryptocurrency - Answer- Also known as tokens, these items are representations of digital assets. Cryptographic Hash Function - Answer- These mechanisms produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example. Dapp or Decentralized Application - Answer- An application that is open source, operates autonomously, has its data stored on a blockchain, incentivized in the form of cryptographic tokens and operates on a protocol that shows proof of value. DAO or Decentralized Autonomous Organizations - Answer- These can be thought of as corporations that run without any human intervention and surrender all forms of control to an incorruptible set of business rules. Distributed Network - Answer- A type of network where processing power and data are spread over the nodes rather than having a centralized data center. Difficulty - Answer- This refers to how easily a data block of transaction information can be mined successfully. Ethereum - Answer- A blockchain based decentralized platform for apps that run smart contracts, and is aimed at solving issues associated with censorship, fraud and third party interference. EVM or Ethereum Virtual Machine - Answer- A Turing complete virtual machine that allows anyone to execute arbitrary EVM Byte Code. Every Ethereum node runs on this mechanism to maintain consensus across the blockchain. Fork - Answer- This creates an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network. Genesis Block - Answer- The first or first few blocks of a blockchain. Hard Fork - Answer- Type of fork that renders previously invalid transactions valid, and vice versa. This type of fork requires all nodes and users to upgrade to the latest version of the protocol software. - Answer- Hard Fork Hash - Answer- The act of performing a hash function on the output data. What is a Hash used for? - Answer- used for confirming coin transactions. Hash Rate - Answer- Measurement of performance for the mining rig is expressed in hashes per second. Hybrid PoS/PoW (Proof of Stake/Proof of Work) - Answer- Allows for both Proof of Stake and Proof of Work as consensus distribution algorithms on the network. In this method, a balance between miners and voters (holders) may be achieved, creating a system of community-based governance by both insiders (holders) and outsiders (miners). Mining - Answer- The act of validating blockchain transactions. (Mining)Necessity of Validation - Answer- warrants an incentive for the miners, usually in the form of coins.