Types of Blockchain Networks Flashcards
7 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Types of Blockchain Networks flashcards as text
A Layer-2 blockchain solution primarily aims to solve which problem of the base (Layer-1) blockchain?
Answer: Scalability and transaction throughput limitations
Layer-2 solutions process transactions off the main chain to increase throughput and reduce fees while inheriting Layer-1 security.
What does 'on-chain' governance mean in the context of blockchain network types?
Answer: Protocol changes are voted on and executed directly via blockchain transactions
On-chain governance allows token holders to vote on protocol changes through transactions recorded on the blockchain itself.
Which blockchain characteristic makes it most suitable for a government-issued digital currency (CBDC)?
Answer: Permissioned with central bank control
CBDCs require central bank oversight and KYC compliance, so a permissioned network with controlled access is most appropriate.
In a federated (consortium) blockchain, which entity typically acts as the validator?
Answer: A pre-selected set of member organization nodes
Federated blockchains use a pre-approved set of nodes from member organizations to validate transactions.
Which type of blockchain would MOST likely be used to issue and track publicly traded securities to ensure transparency for all market participants?
Answer: Public blockchain
Public blockchains provide full transparency for all participants, which is critical for market integrity in publicly traded securities.
What is the main purpose of a 'two-way peg' in blockchain architecture?
Answer: To allow assets to move between a main chain and a sidechain
A two-way peg locks assets on the main chain and releases equivalent assets on the sidechain, and vice versa, enabling interoperability.
Which of these best describes an 'enterprise blockchain' compared to a public blockchain?
Answer: It restricts participation to known, vetted entities for business use cases
Enterprise blockchains are permissioned networks designed for business applications where participants are known and trusted.