Q1: What is the primary definition of blockchain technology?
A. A centralized database
B. A distributed ledger system
C. A cloud-based storage solution
D. A type of artificial intelligence
Answer: B. Explanation: Blockchain is defined as a distributed ledger technology that records
transactions across multiple computers in a secure and decentralized manner.
Q2: Which characteristic of blockchain ensures that data once written cannot be altered
easily?
A. Decentralization
B. Immutability
C. Transparency
D. Scalability
Answer: B. Explanation: Immutability ensures that once data is recorded on the blockchain, it
cannot be easily modified or deleted.
Q3: What is the term used for a digital record within a blockchain?
A. Node
B. Block
C. Ledger
D. Chain
Answer: B. Explanation: A block is a digital record that contains transaction data and is linked to
previous blocks forming a chain.
Q4: Which feature of blockchain enhances trust among participants without a central
authority?
A. Centralization
B. Redundancy
C. Decentralization
D. Exclusivity
Answer: C. Explanation: Decentralization distributes control across multiple nodes, enhancing
trust without relying on a central authority.
Q5: How does blockchain technology primarily ensure data transparency?
A. Through hidden encryption
B. By making transaction records public and verifiable
C. Via private communication channels
D. By limiting data access to a few nodes
,Answer: B. Explanation: Blockchain offers transparency by allowing participants to verify
transaction records, ensuring open and auditable data.
Q6: Which of the following is a common type of blockchain network?
A. Centralized blockchain
B. Hybrid blockchain
C. Public blockchain
D. Local blockchain
Answer: C. Explanation: Public blockchains are open to anyone to participate, contrasting with
private and consortium blockchains.
Q7: What distinguishes a private blockchain from a public blockchain?
A. Its immutability
B. Restricted access for participants
C. Higher security levels
D. Use of cryptocurrencies
Answer: B. Explanation: Private blockchains limit access to specific users, whereas public
blockchains are open to all.
Q8: Which blockchain network is managed by a group of organizations rather than a
single entity?
A. Public blockchain
B. Consortium blockchain
C. Private blockchain
D. Hybrid blockchain
Answer: B. Explanation: A consortium blockchain is governed by a group of organizations
sharing control over the network.
Q9: What cryptographic method is primarily used in blockchain to secure data integrity?
A. Symmetric encryption
B. Hashing
C. Steganography
D. Tokenization
Answer: B. Explanation: Hashing is used to create a fixed-size output from input data, ensuring
data integrity and security.
Q10: In blockchain, what are the unique cryptographic keys used for?
A. To determine block size
B. To manage user identity and sign transactions
C. To compress data
D. To store transaction histories
Answer: B. Explanation: Public and private keys are used to manage digital identities and
securely sign transactions in blockchain.
Q11: Which feature of blockchain technology primarily supports the concept of distributed
consensus?
,A. Central servers
B. Peer-to-peer network
C. Cloud computing
D. Virtualization
Answer: B. Explanation: A peer-to-peer network enables the distributed consensus mechanism,
allowing each node to verify and record transactions.
Q12: What is the main role of a block in blockchain architecture?
A. To store software code
B. To record a batch of transactions
C. To generate new digital currencies
D. To manage network nodes
Answer: B. Explanation: Blocks are designed to store batches of validated transactions in a
structured format.
Q13: Which industry was the first to popularize the concept of blockchain through
cryptocurrency?
A. Healthcare
B. Finance
C. Supply Chain
D. Education
Answer: B. Explanation: The financial sector popularized blockchain technology with the advent
of Bitcoin and other cryptocurrencies.
Q14: What are smart contracts in blockchain?
A. Automated contracts executed by centralized authorities
B. Self-executing contracts with the terms directly written into code
C. Traditional paper contracts stored digitally
D. Contracts that require human mediation for execution
Answer: B. Explanation: Smart contracts are self-executing agreements with terms encoded into
software, operating on blockchain networks.
Q15: Which application of blockchain is most associated with digital currencies?
A. Supply chain management
B. Smart contract development
C. Cryptocurrencies
D. Voting systems
Answer: C. Explanation: Cryptocurrencies are digital or virtual currencies that rely on
blockchain technology for security and decentralization.
Q16: Which blockchain component links all blocks in a secure manner?
A. Transaction history
B. Hash pointers
C. Data payload
D. Consensus algorithm
, Answer: B. Explanation: Hash pointers link blocks together by storing the hash of the previous
block, ensuring the chain’s integrity.
Q17: What is a key advantage of blockchain in the financial sector?
A. Increased centralization
B. Faster transaction settlement without intermediaries
C. Reduced transparency
D. Limited scalability
Answer: B. Explanation: Blockchain can expedite transaction settlements by eliminating
intermediaries, making the process faster and more efficient.
Q18: Which of the following is an example of a non-financial blockchain application?
A. Smart Contracts in supply chain management
B. Centralized banking software
C. Traditional stock exchange systems
D. Paper-based voting records
Answer: A. Explanation: Smart contracts in supply chains are a non-financial application of
blockchain, improving traceability and efficiency.
Q19: How does blockchain technology contribute to increased security in transactions?
A. By encrypting all stored data with a single key
B. By using cryptographic techniques and consensus algorithms
C. Through the use of centralized databases
D. By limiting the number of users who can join the network
Answer: B. Explanation: Security is enhanced by employing cryptographic techniques and
consensus mechanisms, which protect against fraud and tampering.
Q20: Which term best describes the continuous, sequential linking of blocks in a
blockchain?
A. Threading
B. Chaining
C. Stacking
D. Layering
Answer: B. Explanation: The process of linking blocks sequentially is referred to as chaining,
forming the blockchain.
Q21: What evolution does blockchain technology represent in data management?
A. From analog to digital
B. From centralized to decentralized
C. From static to dynamic
D. From manual to automated
Answer: B. Explanation: Blockchain represents the evolution from centralized data systems to
decentralized networks, distributing control among many participants.
Q22: Which blockchain feature ensures that all participants have access to the same
version of data?