Blockchain Technology Types of Blockchain Networks 3 — Questions and Answers
Question 1: Which blockchain type gives a single company full administrative control over who can read and write to the ledger?
- Public blockchain
- Consortium blockchain
- Private blockchain (Correct answer)
- Federated blockchain
Correct answer: Private blockchain
A private blockchain is owned and controlled by a single organization that sets all access permissions.
Question 2: Hyperledger Fabric is best categorized as which type of blockchain?
- Public permissionless blockchain
- Private or consortium permissioned blockchain (Correct answer)
- Hybrid public-private blockchain
- Decentralized finance blockchain
Correct answer: Private or consortium permissioned blockchain
Hyperledger Fabric is a permissioned blockchain framework designed for enterprise consortiums and private networks.
Question 3: A supply chain involving five competing companies wants a shared ledger where all five control validation equally. Which model fits best?
- Public blockchain
- Private blockchain owned by one company
- Consortium blockchain (Correct answer)
- Sidechain
Correct answer: Consortium blockchain
A consortium blockchain distributes governance equally among multiple organizations, making it ideal for competing companies collaborating.
Question 4: What is the primary security advantage of public blockchains over private blockchains?
- Faster block finality
- Immutability enforced by a large decentralized network (Correct answer)
- Lower energy consumption
- Restricted access
Correct answer: Immutability enforced by a large decentralized network
Public blockchains derive their security from thousands of independent nodes, making tampering computationally infeasible.
Question 5: Which statement about sidechains is correct?
- Sidechains replace the main blockchain entirely
- Sidechains operate independently but can transfer assets to and from a main chain (Correct answer)
- Sidechains are only used in private blockchains
- Sidechains eliminate the need for consensus
Correct answer: Sidechains operate independently but can transfer assets to and from a main chain
Sidechains run parallel to a main chain with a two-way peg that allows assets to move between them.
Question 6: Which feature is most associated with permissionless blockchains?
- Identity verification required to join
- Anyone can participate in transaction validation (Correct answer)
- A central administrator controls the nodes
- Transactions are kept confidential from non-members
Correct answer: Anyone can participate in transaction validation
Permissionless blockchains allow anyone to join, submit transactions, and participate in consensus without needing approval.
Question 7: R3 Corda is commonly used in which industry sector and classified as what blockchain type?
- Gaming — public blockchain
- Financial services — permissioned blockchain (Correct answer)
- Social media — hybrid blockchain
- Retail — public blockchain
Correct answer: Financial services — permissioned blockchain
R3 Corda is a permissioned blockchain platform built specifically for financial services institutions.
Blockchain Technology Types of Blockchain Networks 3
Which blockchain type gives a single company full administrative control over who can read and write to the ledger?