Block Chain

What is a simple definition of blockchain?

An append only transaction log.

List three key characteristics of blockchain.

Decentralized, immutable, and transparent.

How does a traditional ledger differ from a blockchain-based ledger?

Traditional ledgers are centralized and typically maintained by a single authority, whereas blockchain ledgers are decentralized and distributed across multiple nodes.

What consensus mechanism requires miners to solve complex puzzles?

Proof of Work (PoW).

What does PoS stand for in blockchain technology?

Proof of Stake.

What is the role of a nonce in blockchain mining?

It is a number used only once to find a valid hash for a block.

Name one advantage of blockchain technology.

Improved accuracy by removing human involvement in verification.

How does blockchain enhance security compared to traditional systems?

It uses cryptographic techniques and consensus protocols, making unauthorized alterations extremely difficult.

What is a smart contract?

A self-executing contract with the terms of the agreement written directly into code.

Give an example of an application of blockchain in supply chain management.

Tracking the movement of goods from origin to consumer to provide transparency and reduce fraud.

What are the potential benefits of using blockchain for voting systems?

Secure and transparent voting, reducing fraud in elections.

Explain what decentralized identity management entails in blockchain.

Providing secure digital identities controlled by individuals rather than centralized authorities.

What does DeFi stand for, and what does it enable?

Decentralized Finance; it allows users to lend, borrow, and trade cryptocurrencies without traditional banks.

How can blockchain improve charity and donations?

By tracking donations to ensure they reach the intended recipients, increasing trust in charitable organizations.

Identify a disadvantage of the Proof of Work mechanism.

It requires a large amount of electricity, leading to high energy consumption.

What makes blockchain immutable?

Once a transaction is recorded, it cannot be changed without altering all subsequent blocks, which is computationally infeasible.

What does the term 'disintermediation' refer to in the context of blockchain?

The reduction or elimination of intermediaries in transactions, leading to enhanced trust and security.

What kind of applications can benefit from improved traceability through blockchain?

Supply chain management and healthcare, among others.

Why is transparency an important characteristic of blockchain?

It allows all participants to view transactions, promoting trust and accountability.

What is a benefit of energy trading using blockchain?

It enables decentralized energy markets where individuals can buy and sell energy directly to each other.

How does blockchain address issues of identity theft?

By providing decentralized identities that individuals control, reducing the reliance on centralized authorities.