BLOCKCHAIN EXAM 1 QUESTIONS
& ANSWERS 100% CORRECT!!
Centralized Ledger - 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 - ANSWERlist 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 - ANSWERIn 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 - ANSWERtransactions between two parties are registered
with two entries (debit and credit). Assets = Liability + Equity
Triple Entry Accounting - ANSWERties account with forecasting and could possibly
enable better decision making as a result. Each transaction is located in three places
in this system
Private Key - ANSWERallows individual to decrypt information encrypted by the
public key
Proof of Work Consensus - ANSWERthe 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 recipient will now be recognized by everyone as
being in possession of the funds transferred, the sender will not be able to present
itself as being in possession of the funds any more
Group Consensus - ANSWERa 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 - ANSWERIn 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 - ANSWERthe 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 - ANSWERa cryptography method that requires both a
private key (password) and a public key (email address)
Cryptographic Hashing - ANSWERwhen an input is put into a function and a fixed
sized alphanumeric string is outputted (also known as a hash)
Blockchain Consensus - ANSWERblockchain 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 - ANSWERa 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 - ANSWERhashes that contain: sender /
receiver address, transaction IDs, data modification log, actual data
Public Key - ANSWERkeys that are visible to everyone and are derived from private
keys
Why is blockchain trustless? - ANSWERblockchain removes trust as a requirement
in safe interactions/transactions. When two parties want to make a transaction, they
sign transactions with private keys, then blockchain approves the transaction if
consensus is found that both parties (if we know them or not) have the funds to
complete their transaction
Blockchain anonymity - ANSWERBlockchain is not entirely anonymous although it
can by pseudonymous. Transactions can be traced to wallets and some people have
had their transactions traced back to their actual person. While complete anonymity
is not a given because of verifiable ledgers and public keys, many can still go to
further lengths to protect their identity.
Nothing at Stake Problem - ANSWERa hypothetical problem that occurs in PoS
blockchains in which every validator is expected to build every fork in a blockchain. it
assumes that a validator will seek only profit at any opportunity and went out of their
way to modify their mining software or obtain modified mining software
Proof of Activity - ANSWERa combination of PoW and PoS in which blocks are
created using the PoW method and opened using the PoS method where fees are
split between the winning miner and the group of validators
Proof of Work - ANSWERthe process used to determine whether or not the process
of mining has actually been done. this is used to deter fraud, prevent easy mining
(too many blocks being mined), and to achieve integrity in many cryptocurrencies
& ANSWERS 100% CORRECT!!
Centralized Ledger - 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 - ANSWERlist 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 - ANSWERIn 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 - ANSWERtransactions between two parties are registered
with two entries (debit and credit). Assets = Liability + Equity
Triple Entry Accounting - ANSWERties account with forecasting and could possibly
enable better decision making as a result. Each transaction is located in three places
in this system
Private Key - ANSWERallows individual to decrypt information encrypted by the
public key
Proof of Work Consensus - ANSWERthe 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 recipient will now be recognized by everyone as
being in possession of the funds transferred, the sender will not be able to present
itself as being in possession of the funds any more
Group Consensus - ANSWERa 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 - ANSWERIn 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 - ANSWERthe 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 - ANSWERa cryptography method that requires both a
private key (password) and a public key (email address)
Cryptographic Hashing - ANSWERwhen an input is put into a function and a fixed
sized alphanumeric string is outputted (also known as a hash)
Blockchain Consensus - ANSWERblockchain 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 - ANSWERa 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 - ANSWERhashes that contain: sender /
receiver address, transaction IDs, data modification log, actual data
Public Key - ANSWERkeys that are visible to everyone and are derived from private
keys
Why is blockchain trustless? - ANSWERblockchain removes trust as a requirement
in safe interactions/transactions. When two parties want to make a transaction, they
sign transactions with private keys, then blockchain approves the transaction if
consensus is found that both parties (if we know them or not) have the funds to
complete their transaction
Blockchain anonymity - ANSWERBlockchain is not entirely anonymous although it
can by pseudonymous. Transactions can be traced to wallets and some people have
had their transactions traced back to their actual person. While complete anonymity
is not a given because of verifiable ledgers and public keys, many can still go to
further lengths to protect their identity.
Nothing at Stake Problem - ANSWERa hypothetical problem that occurs in PoS
blockchains in which every validator is expected to build every fork in a blockchain. it
assumes that a validator will seek only profit at any opportunity and went out of their
way to modify their mining software or obtain modified mining software
Proof of Activity - ANSWERa combination of PoW and PoS in which blocks are
created using the PoW method and opened using the PoS method where fees are
split between the winning miner and the group of validators
Proof of Work - ANSWERthe process used to determine whether or not the process
of mining has actually been done. this is used to deter fraud, prevent easy mining
(too many blocks being mined), and to achieve integrity in many cryptocurrencies
