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Blockchain Final Questions with Correct Answers
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Blockchain Final Questions with Correct Answers
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Blockchain Final Questions with Correct AnswersThe type of blockchain determines the necessary audit steps required to
verify transactions. Accessibility to the blockchain determines which
type is being used: Correct Answer-• Public blockchains: Are large
distributed networks. They are open for anyone to participate at any
level and have open-source code their community maintains (Bitcoin)
• Permissioned blockchains: Control roles individuals can play within
the network. Permissioned networks are distributed and use a self
created coin. Their code may not be open source (Ripple)
• Private blockchains: Tend to be smaller and generally do not use a
token. Membership is controlled. This blockchain is favored when
members are trusted and trade confidential information.
Public blockchains: Correct Answer-Are large distributed networks.
They are open for anyone to participate at any level and have open-
source code their community maintains (Bitcoin)
Permissioned blockchains: Correct Answer-Control roles individuals can
play within the network. Permissioned networks are distributed and use
a self created coin. Their code may not be open source (Ripple)
Private blockchains: Correct Answer-Tend to be smaller and generally
do not use a token. Membership is controlled. This blockchain is favored
when members are trusted and trade confidential information.
The business use of the blockchain provides a complete list of
transactions which identifies ownership. The list of transactions from a
business perspective can assist with: Correct Answer-• Origination:
,Because the blockchain is immutable a business can track all 'things' to
its origination point - why is this useful to business?
• Movement: The current supply chain is transnational. Legal and ethical
movement of goods is vital to many businesses
• Current Location: Active ledgers can track movement of good for JIT
inventory
• Termination: Final consumption and removal to eliminate counterfeits
and duplicates
Origination: Correct Answer-Because the blockchain is immutable a
business can track all 'things' to its origination point - why is this useful
to business?
Movement: Correct Answer-The current supply chain is transnational.
Legal and ethical movement of goods is vital to many businesses
Current Location: Correct Answer-Active ledgers can track movement
of good for JIT inventory
Termination: Correct Answer-Final consumption and removal to
eliminate counterfeits and duplicates
The blockchain can protect Patents in two ways: Correct Answer-•
Hashing - the patents is hashed into a fixed outcome and added to the
blockchain. Improper use of the hashed patents would be known when
incorporated into other ideas and track to specific unauthorized users
• Proof of Existence - Recording the hashed patents into the blockchain.
, • This process is the same as already discussed in class. The difference
here is the use of Smart Contracts to record events on the blockchain.
Hashing Correct Answer-the patents is hashed into a fixed outcome and
added to the blockchain. Improper use of the hashed patents would be
known when incorporated into other ideas and track to specific
unauthorized users
Proof of Existence Correct Answer-Recording the hashed patents into
the blockchain.
Smart Contracts Correct Answer-allows assigning value and conditions
to exchanges between parties. Recall Bitcoin protocol sends and receives
on mutual agreement. A Smart Contact adds conditions set by either
party prior to execution.
Smart Contacts Characteristics (Ethereum Blockchain) Correct Answer-•
Disintermediation - contracts become automated on the Ethereum
Blockchain
• Automation - Computer programs create contracts and agreements
• Self Executing and Immutable - Reduces transaction costs and 3rd
parties cannot interfere in their execution.
DAO - Decentralized Autonomous Organization Correct Answer-is a
collect of smart contracts which are self executing, immutable, and
automatically added to the appropriate blockchain.
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