Cryptocurrency Blockchain Technology Fundamentals 3

Question 1

What distinguishes a permissioned blockchain from a public one?

Accepted Answer

Participation requires authorization from a governing entity

Answer

Permissioned (private or consortium) blockchains restrict who can read, write, or validate, making them suitable for enterprise use cases requiring access control.

Question 2

What is 'block finality' in blockchain systems?

Accepted Answer

The point at which a block is considered irreversible

Answer

Finality refers to the guarantee that a confirmed block will not be reverted; some blockchains offer probabilistic finality (Bitcoin) while others offer absolute finality (certain PoS chains).

Question 3

What is a 'genesis block'?

Accepted Answer

The very first block of a blockchain, with no predecessor

Answer

The genesis block is block zero (or block one) of a blockchain, hardcoded into the software, and has no previous block hash to reference.

Question 4

How does hashing ensure data integrity in a blockchain?

Accepted Answer

By producing a fixed-length fingerprint that changes if the input changes at all

Answer

Cryptographic hash functions are deterministic and avalanche-sensitive, so even a single-bit change in input produces a completely different output, making tampering immediately detectable.

Question 5

What does 'transaction throughput' (TPS) measure in a blockchain?

Accepted Answer

The number of transactions the network can confirm per second

Answer

TPS (transactions per second) is a key scalability metric; Bitcoin handles ~7 TPS while Visa processes thousands, driving research into Layer 2 and other scaling solutions.

Cryptocurrency Practice Test

Cryptocurrency Practice Test

Cryptocurrency Blockchain Technology Fundamentals 3