Blockchain Technology Types of Blockchain Networks 4

Question 1

A Layer-2 blockchain solution primarily aims to solve which problem of the base (Layer-1) blockchain?

Accepted Answer

Scalability and transaction throughput limitations

Answer

Layer-2 solutions process transactions off the main chain to increase throughput and reduce fees while inheriting Layer-1 security.

Question 2

What does 'on-chain' governance mean in the context of blockchain network types?

Accepted Answer

Protocol changes are voted on and executed directly via blockchain transactions

Answer

On-chain governance allows token holders to vote on protocol changes through transactions recorded on the blockchain itself.

Question 3

Which blockchain characteristic makes it most suitable for a government-issued digital currency (CBDC)?

Accepted Answer

Permissioned with central bank control

Answer

CBDCs require central bank oversight and KYC compliance, so a permissioned network with controlled access is most appropriate.

Question 4

In a federated (consortium) blockchain, which entity typically acts as the validator?

Accepted Answer

A pre-selected set of member organization nodes

Answer

Federated blockchains use a pre-approved set of nodes from member organizations to validate transactions.

Question 5

Which type of blockchain would MOST likely be used to issue and track publicly traded securities to ensure transparency for all market participants?

Accepted Answer

Public blockchain

Answer

Public blockchains provide full transparency for all participants, which is critical for market integrity in publicly traded securities.

Blockchain Practice Test