Blockchain ACTUAL Exam Questions and
CORRECT Answers
What is blockchain? - CORRECT ANSWER - Blockchain is an encrypted, distributed
database shared across multiple computers or nodes that are part of a community or system.
What makes it one of the most exciting technologies? - CORRECT ANSWER - Its ability
to reduce the possibility of security breaches by even its own operators.
How does blockchain reduce the possibility of security breaches? - CORRECT
ANSWER - In a traditional implementation, a rogue administrator can potentially change
historical transactions because of his or her access levels to the data. However, with a blockchain
implementation across data centers, one would need a large number of teams working together
across data centers to modify historical data—which greatly reduces the possibility of data
tampering. The more widespread the environments, the more difficult it is to tinker with data.
Who has implemented blockchain? - CORRECT ANSWER - Eleven banks of the R3
consortium have already connected on the centralized Ethereum-based blockchain network. The
Estonian government has used blockchain-based technology (keyless signature infrastructure) to
authenticate data in their databases since 2013.
How blockchain can help in Healthcare? - CORRECT ANSWER - Using digital signatures
on blockchain-based data that allows access only when authorized by multiple people could
regulate the availability and maintain the privacy of health records. In addition, a community of
people, including hospitals, doctors, patients, and insurance companies, could be part of the
overall blockchain, reducing fraud in healthcare payments.
How blockchain can help in Defense? - CORRECT ANSWER - Unauthorized access or
modification of critical defense infrastructure, such as operating systems and network firmware,
could seriously compromise national security. For most countries, defense infrastructure and
computer systems are distributed across different locations. Blockchain technology distributed
across multiple data centers can ensure security against attacks on important network and
hardware equipment by ensuring consensus-based access for modification.
,How blockchain can help in Government? - CORRECT ANSWER - Government
departments that work in silos cause the exchange of information to be delayed, negatively
impacting citizen services. Linking the data between the departments with blockchain ensures
that data is released in real time, when both the departments and the citizen consent to sharing
data. Blockchain technology could improve transparency and check corruption in governments
worldwide.
How blockchain can help in Law? - CORRECT ANSWER - Blockchains can contain a
huge amount of data, including entire contracts. The impact of "smart contracts"—protocols that
facilitate or enforce contract performance using blockchain—will have a profound impact for
industries. Smart contracts eliminate the middleman, such as a legal firm, as payment will
happen based on certain milestones being met. By its very nature, the smart contract is easily
enforceable electronically, creating a powerful escrow by taking it out of the control of a single
party.
How blockchain can help in Energy? - CORRECT ANSWER - Microgeneration of
electricity is becoming a huge trend in the power generation business. New energy initiatives
such as home power generation and community solar power are filling in gaps of power supply
across the world. As microgeneration adds to traditional power suppliers, it fosters creation of an
energy market. Smart meters can register produced and consumed electricity in a blockchain,
which allows for consumption of the surplus energy in a different location, providing credits or
currency to the original producer. The credits can then be redeemed against the grid when the
microgenerator needs additional electricity from the grid. The blockchain enforces these
contracts in real time or near-real time, allowing for a utility market to be created with minimal
red tape.
What are the problems with traditional currencies issued by governments & transacted through
trusted third parties? - CORRECT ANSWER - 1. Lack of transparency
2. delays in settlements
3. high transaction fees
4. Multiple versions of truth
5. Currency exchange fees
6. exchange rate volatility
7. cyber crime
8. inconsistency of rules / rules change at whims
, What are the two services performed by trusted third parties like banks and credit card
companies? - CORRECT ANSWER - - Authentication: who someone is
- Duplication: prevent double spending and making sure you have the money you want to
transfer
What are the benefits of peer-to-peer cryptocurrencies - CORRECT ANSWER - 1. full
transparency
2. full privatcy
3. rapid settlement
4. low transactions fees
5. one version of the truth
6. no currency exchange fees because of country
7. volatility (not solved yet)
8. cyber crime unprofitable
9. rules are added
Why is block chain considered unbreakable? - CORRECT ANSWER - it does not store
any person data at all, blockchain only stored account transactions.
Who wrote the 8-page white paper for bitcoin? - CORRECT ANSWER - An unknown
person or group named "Satoshi Nakamoto"
Who is the real Satoshi Nakamoto? - CORRECT ANSWER - Australian entrepreneur
Craig Wright
After release of the white paper, how did Bitcoin become a reality? - CORRECT
ANSWER - In 2009, the first block is mined. The first transaction was made between
Nakamoto and Hal Finney
CORRECT Answers
What is blockchain? - CORRECT ANSWER - Blockchain is an encrypted, distributed
database shared across multiple computers or nodes that are part of a community or system.
What makes it one of the most exciting technologies? - CORRECT ANSWER - Its ability
to reduce the possibility of security breaches by even its own operators.
How does blockchain reduce the possibility of security breaches? - CORRECT
ANSWER - In a traditional implementation, a rogue administrator can potentially change
historical transactions because of his or her access levels to the data. However, with a blockchain
implementation across data centers, one would need a large number of teams working together
across data centers to modify historical data—which greatly reduces the possibility of data
tampering. The more widespread the environments, the more difficult it is to tinker with data.
Who has implemented blockchain? - CORRECT ANSWER - Eleven banks of the R3
consortium have already connected on the centralized Ethereum-based blockchain network. The
Estonian government has used blockchain-based technology (keyless signature infrastructure) to
authenticate data in their databases since 2013.
How blockchain can help in Healthcare? - CORRECT ANSWER - Using digital signatures
on blockchain-based data that allows access only when authorized by multiple people could
regulate the availability and maintain the privacy of health records. In addition, a community of
people, including hospitals, doctors, patients, and insurance companies, could be part of the
overall blockchain, reducing fraud in healthcare payments.
How blockchain can help in Defense? - CORRECT ANSWER - Unauthorized access or
modification of critical defense infrastructure, such as operating systems and network firmware,
could seriously compromise national security. For most countries, defense infrastructure and
computer systems are distributed across different locations. Blockchain technology distributed
across multiple data centers can ensure security against attacks on important network and
hardware equipment by ensuring consensus-based access for modification.
,How blockchain can help in Government? - CORRECT ANSWER - Government
departments that work in silos cause the exchange of information to be delayed, negatively
impacting citizen services. Linking the data between the departments with blockchain ensures
that data is released in real time, when both the departments and the citizen consent to sharing
data. Blockchain technology could improve transparency and check corruption in governments
worldwide.
How blockchain can help in Law? - CORRECT ANSWER - Blockchains can contain a
huge amount of data, including entire contracts. The impact of "smart contracts"—protocols that
facilitate or enforce contract performance using blockchain—will have a profound impact for
industries. Smart contracts eliminate the middleman, such as a legal firm, as payment will
happen based on certain milestones being met. By its very nature, the smart contract is easily
enforceable electronically, creating a powerful escrow by taking it out of the control of a single
party.
How blockchain can help in Energy? - CORRECT ANSWER - Microgeneration of
electricity is becoming a huge trend in the power generation business. New energy initiatives
such as home power generation and community solar power are filling in gaps of power supply
across the world. As microgeneration adds to traditional power suppliers, it fosters creation of an
energy market. Smart meters can register produced and consumed electricity in a blockchain,
which allows for consumption of the surplus energy in a different location, providing credits or
currency to the original producer. The credits can then be redeemed against the grid when the
microgenerator needs additional electricity from the grid. The blockchain enforces these
contracts in real time or near-real time, allowing for a utility market to be created with minimal
red tape.
What are the problems with traditional currencies issued by governments & transacted through
trusted third parties? - CORRECT ANSWER - 1. Lack of transparency
2. delays in settlements
3. high transaction fees
4. Multiple versions of truth
5. Currency exchange fees
6. exchange rate volatility
7. cyber crime
8. inconsistency of rules / rules change at whims
, What are the two services performed by trusted third parties like banks and credit card
companies? - CORRECT ANSWER - - Authentication: who someone is
- Duplication: prevent double spending and making sure you have the money you want to
transfer
What are the benefits of peer-to-peer cryptocurrencies - CORRECT ANSWER - 1. full
transparency
2. full privatcy
3. rapid settlement
4. low transactions fees
5. one version of the truth
6. no currency exchange fees because of country
7. volatility (not solved yet)
8. cyber crime unprofitable
9. rules are added
Why is block chain considered unbreakable? - CORRECT ANSWER - it does not store
any person data at all, blockchain only stored account transactions.
Who wrote the 8-page white paper for bitcoin? - CORRECT ANSWER - An unknown
person or group named "Satoshi Nakamoto"
Who is the real Satoshi Nakamoto? - CORRECT ANSWER - Australian entrepreneur
Craig Wright
After release of the white paper, how did Bitcoin become a reality? - CORRECT
ANSWER - In 2009, the first block is mined. The first transaction was made between
Nakamoto and Hal Finney
