Explain how t
Explain how the blockchain works. - Correct Answer 1. Imagine 10 people with a file folder and a piece of paper.
2. Whenever someone does something, they announce it to all 10 people.
3. Everyone makes a note the announcement on their page until the page is filled. Then everyone ...
Explain how the blockchain works. - Correct Answer 1. Imagine 10 people with a file folder and a piece
of paper.
2. Whenever someone does something, they announce it to all 10 people.
3. Everyone makes a note the announcement on their page until the page is filled. Then everyone seals
the page by solving a math puzzle.
4. Solving it ensures that everyone's page had the same info and can't change.
5. Whoever solves it first is rewarded with cryptocurrency.
6. Once the page is sealed, it's added to the file folder and a new page is started. This continues forever.
7. Over time these pages (blocks) that contain important records (transactions) are added to the folder
(chain), creating a database (blockchain).
Off-chain/On-chain - Correct Answer #2
What makes it one of the most exciting technologies? - Correct Answer Its ability to reduce the
possibility of security breaches by even its own operators.
How does blockchain reduce the possibility of security breaches? - Correct Answer In a traditional
implementation, a rogue administrator can potentially change historical transactions because of his or
her access levels to the data. However, with a blockchain implementation across data centers, one would
need a large number of teams working together across data centers to modify historical data—which
greatly reduces the possibility of data tampering. The more widespread the environments, the more
difficult it is to tinker with data.
Who has implemented blockchain? - Correct Answer Eleven banks of the R3 consortium have already
connected on the centralized Ethereum-based blockchain network. The Estonian government has used
blockchain-based technology (keyless signature infrastructure) to authenticate data in their databases
since 2013.
, What are the problems with traditional currencies issued by governments & transacted through trusted
third parties? - Correct Answer 1. Lack of transparency
2. delays in settlements
3. high transaction fees
4. Multiple versions of truth 5. Currency exchange fees 6. exchange rate volatility 7. cyber crime
8. inconsistency of rules / rules change at whims
How blockchain can help in Government?
How blockchain can help in Law?
How blockchain can help in Energy?
What are the problems with traditional currencies issued by governments & transacted through trusted
third parties?
What are the two services performed by trusted third parties like banks and credit card companies? -
Correct Answer 1. Authentication: who someone is
2. Duplication: prevent double spending and making sure you have the money you want to transfer
What are the benefits of peer-to-peer cryptocurrencies? - Correct Answer 1. full transparency
2. full privatcy
3. rapid settlement
4. low transactions fees
5. one version of the truth
6. no currency exchange fees because of country 7. volatility (not solved yet)
8. cyber crime unprofitable 9. rules are added
Why is blockchain considered unbreakable? - Correct Answer It does not store any person data at all,
blockchain only stored account transactions.
After release of the white paper, how did Bitcoin become a reality? - Correct Answer In 2009, the first
block is mined. The first transaction was made between Nakamoto and Hal Finney.
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