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Blockchain Interoperability and Scalability Flashcards

6 cards from real CBE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the Lightning Network's approach to scaling Bitcoin transactions?

    Answer: Payment channels that allow off-chain bilateral transactions settled on-chain only when channels close

    The Lightning Network creates peer-to-peer payment channels where parties transact off-chain; only the opening and closing transactions are recorded on the Bitcoin blockchain.

  2. In Polkadot's architecture, what role does the Relay Chain play?

    Answer: It provides shared security and consensus for all connected parachains

    Polkadot's Relay Chain is the central chain that coordinates consensus and security, while parachains handle application-specific logic and connect via slots.

  3. What is a 'wrapped token' in the context of blockchain interoperability?

    Answer: A tokenized version of an asset from one blockchain pegged 1:1 and usable on another blockchain

    Wrapped tokens (e.g., WBTC) lock the original asset in a custodial contract and mint an equivalent ERC-20 token on Ethereum, enabling cross-chain liquidity.

  4. What problem does the 'blockchain trilemma' describe?

    Answer: The difficulty of simultaneously achieving decentralization, security, and scalability in a single blockchain

    Coined by Vitalik Buterin, the blockchain trilemma states that optimizing for two of (decentralization, security, scalability) typically comes at the expense of the third.

  5. Which cross-chain standard does Polkadot use for message passing between parachains?

    Answer: XCM (Cross-Consensus Message Format)

    XCM is Polkadot's language for expressing intent for cross-chain operations, enabling assets and messages to move between parachains and external networks.

  6. What is a 'state channel' and how does it improve blockchain scalability?

    Answer: A private off-chain communication channel where parties exchange signed state updates, settling only the final state on-chain

    State channels allow parties to conduct many interactions off-chain by exchanging cryptographically signed messages, posting only the final outcome to the blockchain.