Blockchain Exam 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Centralized Ledger - CORRECT ANSWER - - contains all the accounts recording
transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses
- crucial to any accounting system
- holds financial and non financial data
- increased privacy
Decentralized Ledger - CORRECT ANSWER - list of transactions that is copied and
distributed among multiple nodes. All nodes have a copy of the list and the transactions on it.
Each node reminds or corrects other nodes with the current version of the ledger. When 51% of
nodes agree on a version, that becomes the most current version of the ledger.
Block - CORRECT ANSWER - In a blockchain, is just a list of transactions bound
together. Each of these is a file which stores the information of each transaction
Double Entry Accounting - CORRECT ANSWER - transactions between two parties are
registered with two entries (debit and credit). Assets = Liability + Equity
Triple Entry Accounting - CORRECT ANSWER - ties account with forecasting and could
possibly enable better decision making as a result. Each transaction is located in three places in
this system
Group Consensus - CORRECT ANSWER - a process of making a group decision in which
group members develop and agree to support a decision in the best interest of the whole. the
margin is held at 51% to pass
Chain - CORRECT ANSWER - In blockchain, blocks are held together by "hashes" (64
character alphanumeric string generated by an 256b algorithm). the blocks are stamped with the
hash of the previous block, which allows it to hold its place
, Cryptography - CORRECT ANSWER - the art of writing or solving codes. it is the
technique for secure communication in the presence of third party adversaries. it constructs and
analyzes protocols that prevent third parties from reading private messages
Public Key Cryptography - CORRECT ANSWER - a cryptography method that requires
both a private key (password) and a public key (email address)
Cryptographic Hashing - CORRECT ANSWER - when an input is put into a function and
a fixed sized alphanumeric string is outputted (also known as a hash)
Blockchain Consensus - CORRECT ANSWER - blockchain is decentralized, which allows
any operator to add to the chain. a block is not added to the chain unless it is given consensus
status. provides fault tolerance inside of a decentralized p2p system.
Proof of Stake - CORRECT ANSWER - a type of algorithm by which a cryptocurrency
blockchain network aims to achieve distributed consensus. provides security and efficiency of
blockchain technology. the creator of the next block is chosen via various combinations of
random selection and wealth or age (stake)
Types of data stored in a blockchain - CORRECT ANSWER - hashes that contain: sender /
receiver address, transaction IDs, data modification log, actual data
Public Key - CORRECT ANSWER - keys that are visible to everyone and are derived
from private keys
Private Key - CORRECT ANSWER - allows individual to decrypt information encrypted
by the public key
Proof of Work Consensus - CORRECT ANSWER - the requirement to define / solve (a
very complex computer calculation) in order to add a new block to the chain. allows: the
originator of the transaction is in possession of the funds being transferred and has obtained the
funds by one of the means commonly recognized as valid, as an outcome of the transaction the
Exam Questions and CORRECT Answers
Centralized Ledger - CORRECT ANSWER - - contains all the accounts recording
transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses
- crucial to any accounting system
- holds financial and non financial data
- increased privacy
Decentralized Ledger - CORRECT ANSWER - list of transactions that is copied and
distributed among multiple nodes. All nodes have a copy of the list and the transactions on it.
Each node reminds or corrects other nodes with the current version of the ledger. When 51% of
nodes agree on a version, that becomes the most current version of the ledger.
Block - CORRECT ANSWER - In a blockchain, is just a list of transactions bound
together. Each of these is a file which stores the information of each transaction
Double Entry Accounting - CORRECT ANSWER - transactions between two parties are
registered with two entries (debit and credit). Assets = Liability + Equity
Triple Entry Accounting - CORRECT ANSWER - ties account with forecasting and could
possibly enable better decision making as a result. Each transaction is located in three places in
this system
Group Consensus - CORRECT ANSWER - a process of making a group decision in which
group members develop and agree to support a decision in the best interest of the whole. the
margin is held at 51% to pass
Chain - CORRECT ANSWER - In blockchain, blocks are held together by "hashes" (64
character alphanumeric string generated by an 256b algorithm). the blocks are stamped with the
hash of the previous block, which allows it to hold its place
, Cryptography - CORRECT ANSWER - the art of writing or solving codes. it is the
technique for secure communication in the presence of third party adversaries. it constructs and
analyzes protocols that prevent third parties from reading private messages
Public Key Cryptography - CORRECT ANSWER - a cryptography method that requires
both a private key (password) and a public key (email address)
Cryptographic Hashing - CORRECT ANSWER - when an input is put into a function and
a fixed sized alphanumeric string is outputted (also known as a hash)
Blockchain Consensus - CORRECT ANSWER - blockchain is decentralized, which allows
any operator to add to the chain. a block is not added to the chain unless it is given consensus
status. provides fault tolerance inside of a decentralized p2p system.
Proof of Stake - CORRECT ANSWER - a type of algorithm by which a cryptocurrency
blockchain network aims to achieve distributed consensus. provides security and efficiency of
blockchain technology. the creator of the next block is chosen via various combinations of
random selection and wealth or age (stake)
Types of data stored in a blockchain - CORRECT ANSWER - hashes that contain: sender /
receiver address, transaction IDs, data modification log, actual data
Public Key - CORRECT ANSWER - keys that are visible to everyone and are derived
from private keys
Private Key - CORRECT ANSWER - allows individual to decrypt information encrypted
by the public key
Proof of Work Consensus - CORRECT ANSWER - the requirement to define / solve (a
very complex computer calculation) in order to add a new block to the chain. allows: the
originator of the transaction is in possession of the funds being transferred and has obtained the
funds by one of the means commonly recognized as valid, as an outcome of the transaction the
