Learning Objective 4: - Correct Answer Explain how one can verify the source of blockchain transactions
Learning Objective 5: - Correct Answer Explain what is meant by consensus in a blockchain
Learning Objective 6: - Correct Answer Identify the types of blockchains and describe how they differ
Learning Objective 7: - Correct Answer Explain at a very high level how smart contracts work
Learning Objective 8: - Correct Answer Identify some blockchain use cases and examples
The Need: - Correct Answer Almost every exchange of assets (or value) requires using one or more
intermediaries:
-Who take their piece of the pie
-Who add delay to the process
-Who are vulnerable to attack
-Whose trustworthiness might be suspect
-Who might extract and use private information
Examples of intermediaries when performing an exchange of assets: - Correct Answer -Checks Cashed
Payday loan: Cash paycheck (have to pay a fee)
-Western Union: International wire transfer (Pay fee)
-Receive money: Exchange rate loss
, Example: Credit Card Transaction - Correct Answer -Bank issuing the card takes a fee on each
transaction
-Typically, merchant must wait one or two days to receive the funds (If payment is on Friday, might not
receive funds until Tuesday)
Example: Humanitarian Aid - Correct Answer Currently, graft and corruption take a big cut of money
designated for disaster relief and humanitarian aid.
Solution Part 1: - Correct Answer A Blockchain
Solution Part 2: - Correct Answer Ledger Rules
A Blockchain is - Correct Answer a ledger such that:
-Multiple copies exist and are simultaneously kept current and in synch (it's distributed)
-A transaction, once posted, cannot ben changed by anybody, even the person who originated it
-The ledger is resistant to hacking and to the disruption of communication among its copies
-Software enforces a set of rules as to how transactions are validated before being posted
-Some ledgers also allow posting and enforcement of additional rules (known as "smart contracts")
associated with a posted transaction
Smart Contracts - Correct Answer ledger that allows posting and enforcement of additional rules
associated with a posted transaction
Ledger Rules: - Correct Answer When the ledger records the transfer of an asset (such as
cryptocurrency):
-the person making the transfer must own the assets being transferred
-The ledger should be visible by anyone who wants to examine it
The Blockchain Solution: - Correct Answer -Eliminates third party intermediary
-Substantially reduces transaction cost
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