Blockchain Technology Types of Blockchain Networks 5 — Questions and Answers
Question 1: Which blockchain network type is most vulnerable to a 51% attack?
- Private blockchain with a trusted administrator
- Small public proof-of-work blockchain with low hash rate (Correct answer)
- Consortium blockchain with 10 members
- Permissioned blockchain with PoA consensus
Correct answer: Small public proof-of-work blockchain with low hash rate
Small public PoW blockchains with low hash rates are most vulnerable because an attacker can more easily acquire majority hash power.
Question 2: A company wants blockchain data to be auditable by regulators but invisible to competitors. Which approach best achieves this?
- Public blockchain with full transparency
- Hybrid blockchain with selective disclosure (Correct answer)
- Private blockchain with no external access
- Decentralized autonomous organization (DAO)
Correct answer: Hybrid blockchain with selective disclosure
Hybrid blockchains allow selective disclosure, enabling regulatory auditors to access data while keeping it private from competitors.
Question 3: What is the key difference between Proof of Work used on a public blockchain and Proof of Authority used on a private blockchain?
- PoW is faster and cheaper than PoA
- PoA relies on trusted validators while PoW relies on computational competition (Correct answer)
- PoA requires more energy than PoW
- PoW requires identity verification for miners
Correct answer: PoA relies on trusted validators while PoW relies on computational competition
PoA uses pre-approved trusted validators making it efficient for private networks, while PoW uses energy-intensive competition open to anyone.
Question 4: Dragonchain is an example of which blockchain architecture type?
- Public permissionless blockchain
- Hybrid blockchain combining public and private elements (Correct answer)
- Pure private enterprise blockchain
- Layer-2 sidechain
Correct answer: Hybrid blockchain combining public and private elements
Dragonchain uses a hybrid model where business logic runs privately while cryptographic proofs are anchored to public blockchains.
Question 5: Which characteristic makes consortium blockchains particularly attractive for trade finance applications?
- They allow anonymous transactions for privacy
- They enable multiple competing banks to share a trusted ledger without a central intermediary (Correct answer)
- They eliminate the need for KYC compliance
- They offer unlimited transaction throughput
Correct answer: They enable multiple competing banks to share a trusted ledger without a central intermediary
Consortium blockchains let competing financial institutions collaborate on a shared ledger while sharing governance and eliminating single-point intermediaries.
Question 6: What does 'immutability' mean differently in public vs. private blockchains?
- Public chains delete old records; private chains keep all records
- Public chain immutability is enforced by decentralized consensus; private chain immutability depends on the controlling organization (Correct answer)
- Private chains are more immutable because they have fewer nodes
- There is no difference in immutability between the two
Correct answer: Public chain immutability is enforced by decentralized consensus; private chain immutability depends on the controlling organization
On public blockchains, no single entity can alter records; on private blockchains, the controlling organization could theoretically modify the ledger.
Question 7: Which blockchain type is LEAST suitable for a decentralized finance (DeFi) application requiring open, permissionless access?
- Ethereum mainnet
- Solana
- Hyperledger Fabric (Correct answer)
- Avalanche
Correct answer: Hyperledger Fabric
Hyperledger Fabric is a permissioned blockchain that requires identity and access approval, making it incompatible with open DeFi applications.
Blockchain Technology Types of Blockchain Networks 5
Which blockchain network type is most vulnerable to a 51% attack?