Shivaji University , Kolhapur

Question Bank For Mar 2022 ( Summer ) Examination

Subject Code : 84728 Subject Name : Blockchain

Technologies

1. What is the task of miners in a blockchain network?

A) Miners act as a single third party to aggregate records and provide trust in the network by
the miners’ authority.

B) Miners are computers that allow access to the blockchain, ensuring the number of corrupt nodes
will stay low.

C) Miners are nodes that compete for a reward by calculating the correct nonce to make a
transaction possible.

D) Miners determine the consensus rules that should be followed and interfere when these rules
are broken

2. What is an advantage of a public blockchain?

A) It does not use disinterested third parties to secure blocks, as all participants have a
vested interest.

B) It is more resilient against fraud, because it uses federated nodes to combat fraud.

C) It is open to everyone in the world without permission and licensing requirements.

D) Its networks are built by for-profit companies and the working of the network is guaranteed.

3. How do blockchains use private and public-key cryptography?

A) Asymmetric encryption allows a sender to transfer cryptocurrency to a public key. The

recipient can then access these funds with their private key and hold it in their wallet.

B) In public-key cryptography, one key is used to encrypt and decrypt transaction. The sender
uses this key to send cryptocurrency and the recipient’s wallet holds it after decryption.

C) Symmetric encryption allows a sender to transfer cryptocurrency to another user. The

recipient can then access their funds when the sender grants access to their private key.

D) The algorithm in the blockchain encrypts and stores private and public keys to all user's
wallets. The user then accesses their funds through their twenty-word passphrase key.
4. A competitive consensus algorithm that was developed because blockchains had difficulty
meeting the transaction speed demands. Which consensus algorithm is this?

A) Delegated Proof of Stake (DPoS)

B) Proof of Burn

C) Proof of Stake (PoS)

D) Proof of Work (PoW)

5. What is the value of using block chain networks with Internet of Things (IoT)?

A. Allowing block chain users to follow C. Enabling software that programs itself
self-driving cars and access these cars to solve problems without human
intervention
B. Avoiding a spoofing attack using the
secured identity that is stored on a D. Solving expensive and complex
blockchain calculations using Hyperledger Fabric
mining

6. How does blockchain technology help to protect intellectual property rights (IP)?

A) It allows a user to include IP transactions in smart contracts.

B) It allows a user to record an event and establish the timeline.

C) It allows a user to record the creation of software packages.

D) It allows a user to send a transaction and receive IP ownership.

7. What is the role of a DAO (decentralized autonomous organization)?

A) Address the principal-agent dilemma with collaboration and acceptance of actions within
agreed rules

B) Embed regulated online smart contracts with the current judicial system, using public blockchains

C) Offer complex online smart contracts without any link to tangible and intangible offline assets

D) Provide a private blockchain contract platform on which users can run their online applications

8. What does P2P stand for?

A. Password to Password C. Peer to Peer

B. Product to Product D. Private Key to Public Key

9. What is a node?
 A. A type of cryptocurrency C. A Blockchain

B. An exchange D. A computer on a Blockchain network

10. What is a blockchain?

A) A centralized database that holds a subset of all transactions on all nodes.

B) A client-server database existing on a limited number of nodes at the same time.

C) A distributed database with a record of all transactions on the network.

D) A standalone database with history of all transactions on various nodes.

11. What is digital fiat currency ?

A. A digital form of currency, C. An online system, that enables

that represents a country’s making transactions without a bank
financial reserves account
B. An e-currency, that creates a D. Same as cryptocurrency
transparent and borderless debt
market
12. The term used for blockchain splits is?

A. fork C. merger

B. division D. None of the above

13. What is a miner?

A. A person doing calculations to verify C. A type of blockchain

a transaction
D. An algorithm that predicts the
B. Computers that validate and next part of the chain
process blockchain transactions

14. Bitcoin is created by

A. Saifedian Ammous C. Satoshi Nakamoto

B. Bill Buterin D. None of the above

15. What is the purpose of a nonce?

A. A hash function C. Follows nouns

B. Sends information to the blockchain D. Prevents double spending

network

16. A bearer instrument used to transfer value between two parties over a blockchain network?

A. A DApp C. A Node
B. A Hash D. A Token
17. An attacker tries to corrupt the transaction history of a blockchain to be able to spend a token or
a cryptocurrency twice? What is the most likely thing this attacker did?

A. The attacker changed the C. The attacker gained control of

transaction on his node and more than 51% of the network’s
propagated it in the network computing power
B. The attacker edited the smart D. The attacker hard-forked the
contract and recovered investor’s network and created a new
cryptocurrency blockchain network
18. How does blockchain improve supply chains?

A) By automatically creating trade agreements between two parties

B) By creating safe centralized marketplaces to trade goods on

C) By stabilizing the national currencies of the countries involved

D) By transferring tokenized ownership through a software system

19. What is a benefit of a decentralized marketplace?

A) It is based on open-source technology, so it can be used without any investment.

B) It is not under a paid license to operate and therefore it is managed better.

C) It is relatively cheap due to the use of cryptocurrency and is very accessible.

D) It is tamper-proof, resilient to being shut down and trustworthy due to smart contracts.

20. How can blockchain technology best help securing identity data?

A) By eliminating third parties through providing secured-data storage at a user’s server

B) By encoding all the health data and save it on a private and permissionless blockchain

C) By protecting data that has been submitted on the internet using a cryptographic algorithm

D) By providing information personal data without disclosing the actual data that proves it

21. What are DApps designed to do?

A) Execute smart contracts with the business logic in the front-end of a standalone application

B) Manage cryptocurrencies only, without any embedded voting system for governance of
the blockchain

C) Run applications on a peer-to-peer (P2P) network expanding smart contracts beyond

simple value transfer

D) Support applications that run on multiple public cloud providers avoiding any vendor lock-
in and fraud

22. In which scenario is a smart contract the best solution to the problem?

A) A bartender wants to force customers to pay for their drinks by transferring cryptocurrency to
his wallet.

B) A chief financial officer wants her smart watch to notify her when her partner enters their
front door.

C) An energy company wants to automatically buy power when the price reaches a
predetermined rate.

D) An insurance company wants to pay out a farmer whenever the case manager feels it is best to
do so.

23. What is the best use case for smart contracts?

A) Digitalize and automate legally binding contracts using artificial intelligence (AI)

B) Enforce the execution of contracts in the legal system using cryptocurrencies

C) Ensure automatic payments by predetermined actions or events in insurance contracts

D) Extend the Bitcoin blockchain, the best-known smart contract platform, to the judicial system

24. What is a key characteristic of the Hyperledger network?

A) It is a public blockchain network and one of the oldest networks, existing since 2009.

B) It is private, open sourced and can run everyone’s own distributed ledger technology (DLT).

C) It utilizes cryptocurrency as a reward mechanism, which makes the network more secure.

D) It utilizes the Proof of Stake (PoS) consensus algorithm as its main security measure.

25. Public blockchains give an incentive to encourage users to mine blocks and secure the
network. What incentive is this?
A) Public blockchains allow users to create tokens to sell on secondary markets.

B) Public blockchains do not offer rewards, because they are open source.

C) Public blockchains offer cash rewards for running mining nodes.

D) Public blockchains offer rewards for mining in the form of cryptocurrency.

26. Blockchain enables self-sovereign identity. How does blockchain do this?

A) It enables centralized third parties to offer easy-to-use and valid identity information.

B) It enables each person to have exclusive control of their money, property and identity.

C) It enables governments to effortlessly issue identities with advanced digital certificates.

D) It enables only internet companies to offer world-class secure personal identity repositories.

27. In what way do blockchains use a public witness?

A) A digital courthouse or library acts as a public witness to store information to reference.

B) A node on a blockchain network attests to the accuracy and truthfulness of information.

C) A person sends a transaction over a public network to earn rewards as a public witness.

D) A preferred node can be elected to attest to the accuracy and truthfulness of information.

28. How can information be secured in a blockchain?

A) By using a closed peer-to-peer (P2P) network, sharing information across platforms

B) By using a distribution of cryptocurrencies over miners through the network

C) By using asymmetric cryptography, consisting of a public and private key

D) By using distributed ledger technology (DLT), which records transactions at the source

29. How do fraudsters use a Ponzi scheme?

A) A fraudster convinces a victim to pay for receiving something of greater value later on.

B) A fraudster finds investors, then dumps the tokens of the investors to crash the market.

C) A fraudster pays dividends to initial investors using the funds of subsequent investors.

D) A fraudster steals credit cards and uses them to buy money, goods or property.

30. An attacker tries to corrupt the transaction history of a blockchain to be able to spend a token or
a cryptocurrency twice. What is the most likely thing this attacker did?
A) The attacker changed the transaction on his node and propagated it in the network.

B) The attacker edited the smart contract and recovered investor’s cryptocurrency.

C) The attacker gained control of more than 51% of the network’s computing power.

D) The attacker hard-forked the network and created a new blockchain network.

31. What is an advantage of using the consensus algorithm Proof of Elapsed Time (PoET) instead
of Proof of Work (PoW)?

A) PoET can often be used in a permissionless blockchain more easily than PoW, because
PoET’s lottery system for node selection is secure.

B) PoET has generally lower transaction costs than PoW, because the hardware needed is
more generic than the hardware needed for PoW.

C) PoET is much more secure than PoW, because PoET supports the trusted
execution environment (TEE) by time-stamping the transactions.

D) PoET is usually faster than PoW, because fewer nodes compete for validation than in PoW, since
PoET randomly selects the nodes

32. Which consensus algorithm is the least energy efficient?

A) Delegated Proof of Stake (DPoS)

B) Proof of Authority (PoA)

C) Proof of Space (PoSpace)

D) Proof of Work (PoW)

33. Which description fits only the Proof of Work (PoW) consensus algorithm?

A) A collaborative consensus algorithm, where approved accounts do the validation.

B) A collaborative consensus algorithm that is facilitated by farmers, who offer leftover memory
of their computer to make transactions possible.

C) A consensus algorithm, where the validation is done for the entire transaction flow,
including not only the correctness, but also the sequence of transactions.

D) An intensive and expensive, competitive algorithm where each mining node on the
blockchain is competing to secure blocks.

34. How do hybrid blockchain networks combat 51% attacks?

A) Through a central controller ensuring the security of each node in the network
B) Through a Proof of Work (PoW) algorithm, which allows miners to secure the network

C) Through incentivization, where miners receive currency for securing the network

D) Through Merkle tree roots, that allow the network to restore itself to its last valid block

35. What is not a classification for a node?

A) Full node

B) Lightweight node

C) Merkle node

D) Miner node