FREE CCI Blockchain Technology Questions and Answers

Question 1

What is a blockchain?

Accepted Answer

A decentralized digital ledger

Answer

A blockchain is fundamentally a distributed, immutable ledger that records transactions across a network of computers. Unlike a central database, it operates without a central authority, with all participants having access to a synchronized copy of the ledger. This decentralized nature enhances security, transparency, and resistance to tampering.

Question 2

What is the primary purpose of blockchain technology?

Accepted Answer

To record and verify digital transactions

Answer

The primary purpose of blockchain technology is to provide a secure and transparent way to record and verify digital transactions. Each transaction is grouped into a 'block,' which is then cryptographically linked to the previous block, forming a chain. This creates an unchangeable and verifiable record of all activities on the network, ensuring trust without intermediaries.

Question 3

What is a block in a blockchain?

Accepted Answer

A container of transaction data

Answer

In a blockchain, a 'block' is a fundamental data structure that holds a collection of verified transactions. Each block also contains a timestamp, a reference to the previous block's hash, and a cryptographic hash of its own data. Once a block is filled and validated, it is added to the blockchain, becoming a permanent and immutable part of the ledger.

Question 4

What ensures the integrity of a blockchain?

Accepted Answer

Cryptographic hash linking blocks

Answer

The integrity of a blockchain is primarily ensured by cryptographic hashing, which links each new block to the previous one. Each block contains a unique hash of its own data and the hash of the preceding block. Any attempt to alter a past transaction would change that block's hash, invalidating all subsequent blocks and making tampering immediately detectable and practically impossible.

Question 5

What is a smart contract?

Accepted Answer

Code that executes agreements automatically

Answer

A smart contract is a self-executing contract with the terms of the agreement directly written into lines of code. These contracts run on a blockchain, automatically executing and enforcing the terms when predefined conditions are met, without the need for intermediaries. This provides transparency, immutability, and efficiency for various applications beyond simple currency transfers.

CCI - Certified Cryptocurrency Investigator Practice Test

CCI - Certified Cryptocurrency Investigator Practice Test

FREE CCI Blockchain Technology Questions and Answers