Introduction to Blockchain Technologies Quiz Answer. In this post you will get Quiz Answer Of Introduction to Blockchain Technologies
Introduction to Blockchain Technologies Quiz
Offered By ”INSEAD”
Week- 1
The Second Era of the Internet
1.
Question 1
Identify the limitation(s) of the Internet for business and economic activity.
1 point
- We can’t reliably establish one another’s identities online without a third party.
- Powerful intermediaries collect our data and invade our privacy.
- The economic benefits of the Internet have been asymmetrical.
- All of the above
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2.
Question 2
What is the relationship between bitcoin and blockchain?
1 point
- Bitcoin and blockchain mean the same thing and these terms can be used interchangeably.
- A blockchain requires bitcoin in order to operate.
- Blockchain is a specific type of cryptocurrency, whereas bitcoin is the protocol that underlies all cryptocurrencies and other kinds of crypto-assets.
- Bitcoin represents the first implementation of a blockchain protocol.
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3.
Question 3
Which of the following is true about the Bitcoin blockchain?
1 point
- It represents the first distributed system for peer-to-peer exchange.
- It represents the first online implementation of cryptography.
- It represents the first system for digital cash.
- None of the above
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4.
Question 4
What is the relationship between blockchain and distributed ledger technology?
1 point
- A distributed ledger is a specific type of blockchain.
- A blockchain is a specific type of distributed ledger.
- A distributed ledger records transactions on a peer-to-peer network, whereas a blockchain records transactions on a centralized server
- A blockchain records transactions on a peer-to-peer network, whereas a distributed ledger records transactions on a centralized server
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5.
Question 5
Which of the following are not part of a blockchain block?
1 point
- Transactions
- Miners
- Nonce
- Previous block hash
Steps of a Blockchain Transaction
Answer: Select images like the following image
Week- 2
Blockchain Design Principles
1.
Question 1
Satoshi Nakamoto’s original 2008 bitcoin white paper:
1 point
was about creating a second generation of the internet
sought to change civilization and reinvent business
was written about a specific cryptocurrency, but implicitly described broader blockchain design principles
All of the above
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2.
Question 2
What is the double-spend problem?
1 point
A doubling in the amount of time spent waiting for a settlement to clear using traditional payment methods compared to blockchain-based payments.
The idea that when making a purchase, a consumer must spend double the value of an item when paying in cryptocurrency compared to fiat currency, regardless of current exchange rates.
A form of fraud in which the same unit of currency is spent in more than one transaction.
A system of accounting in which each financial transaction is recorded using two different entries (i.e. a debit and a credit), and is prone to human error and dishonest manipulation.
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3.
Question 3
How is integrity achieved in a blockchain network?
1 point
The integrity of a blockchain network relies on humans who choose to do the right thing.
Trusted third parties verify people’s identities and vouch for their reputations.
Consensus mechanisms, such as proof of work or proof of stake, allow a securely distributed group of peers to confirm transactions and achieve network consensus.
There are currently no means of achieving integrity within a blockchain network.
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4.
Question 4
What is the main benefit of distributing power across a peer-to-peer network?
1 point
The actors in a peer-to-peer network are more trustworthy than those in a centralized system.
No single party or central authority can shut the system down.
Large-scale changes to the network protocol can be implemented easily.
The decision-making process is much more efficient in a peer-to-peer network than in a centralized system.
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5.
Question 5
Which of the following is true regarding the incentive structures of a blockchain? Select all that apply.
1 point
Incentives are what encourage network participants to cooperate and create the value that will ensure the success of the blockchain.
The incentive structures of a blockchain have little bearing on the security of the network.
Paradoxically, acting in one’s own self-interests benefits the peer-to-peer network.
On a blockchain, there is no economic benefit to performing a Sybil attack.
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6.
Question 6
Which of the following refers to an advanced form of asymmetric cryptography wherein users get two keys: One for encryption and one for decryption?
1 point
PKI
SHA-256
ERC-20
ICO
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7.
Question 7
How is privacy established in a public blockchain, given that it can be viewed by anyone at any time?
1 point
There are currently no methods for establishing privacy on a public blockchain.
Users are only able to see transactions in which they were directly involved (e.g. as a sender or recipient).
Internet Service Providers do not track the IP addresses of devices that are connected to a blockchain network.
Parties are represented pseudonymously using public addresses; a single party can own multiple public addresses.
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8.
Question 8
A blockchain can be designed to support higher levels of transparency, should all stakeholders agree to do so. The ideal situation for privacy vs. transparency would be:
1 point
Privacy for individuals
Transparency for individuals
Privacy for organizations, institutions, and public officials
Transparency for organizations, institutions, and public officials
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9.
Question 9
How could blockchain technology benefit an artist?
1 point
With blockchain, an artist could register a hash of his/her creative work, thereby providing an immutable, time-stamped proof of existence, authorship, and copyright ownership.
With smart contracts, an artist could be paid directly from fans without multiple intermediaries taking a cut.
With smart contracts, an artist could assign and automatically enforce customized usage rights for his/her work to another party.
All of the above
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10.
Question 10
In what sense do public blockchains support financial inclusion?
1 point
Users do not require a birth certificate, home address, or proof of citizenship in order to join the network.
There is no minimum account balance required to participate in the network.
The infrastructure makes micropayments feasible, thereby lowering the barriers to investing, entrepreneurship, and participation in global trade.
All of the above
Week- 3
Public and Private Ledgers
1.
Question 1
How does ownership attribution on a public blockchain differ from that of a private blockchain?
1 point
On a public blockchain, ownership of an asset is attributed to an address, which is pseudonymous. On a private blockchain, ownership attribution may or may not be pseudonymous; the identity setup is a design decision.
On a public blockchain, ownership of an asset is attributed to a self-selected username, which may or may not be pseudonymous. On a private blockchain, ownership attribution is indicated using a company’s ticker symbol.
On both public and private blockchains, ownership of an asset is attributed to a private key. On a public blockchain, private keys remain hidden from the network, whereas on a private blockchain, companies must disclose their private keys as part of their reporting requirements.
None of the above
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2.
Question 2
What is a key difference between a centralized and distributed ledger?
1 point
A centralized ledger can be backed-up, whereas a distributed ledger cannot.
A centralized ledger is more resilient to hardware failure compared to a distributed ledger.
In a centralized ledger all data is stored in a single location, whereas in a distributed ledger fragments of the full dataset are spread across across multiple locations.
A centralized ledger is controlled by a single, highly-trusted entity, whereas a distributed ledger is controlled by multiple, independent nodes who each retain a full copy of the ledger.
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3.
Question 3
Which of the following best describes a public blockchain?
1 point
Anyone can view the ledger.
Anyone can become a network node.
Anyone can enter records on the ledger.
All of the above
Only the first two options are correct.
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4.
Question 4
Which of the following best describes a permissioned blockchain?
1 point
A firm or consortium of firms controls who can view the ledger.
A firm or consortium of firms controls who can become a network node.
A firm or consortium of firms controls who can enter records on the ledger.
All of the above
Only the second and third options are correct.
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5.
Question 5
A private distributed ledger is:
1 point
Permissionless
Trustless
Open
All of the above
None of the above
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6.
Question 6
Whether public or private, in what sense does blockchain technology have a high level of transparency?
1 point
In principle, all transactions are traceable with attribution of assets to identifiers (e.g. addresses).
In principle, anyone with access to the blockchain can decrypt any of its encrypted data.
In principle, the real-world identities corresponding to each identifier (address) are known.
In principle, only nodes with verified identities can join the network.
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7.
Question 7
How can one party prove to another party that they know a value, x, without revealing x itself (or any additional information).
1 point
private key
zero-knowledge proof
total-knowledge proof
probabilistic proof
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8.
Question 8
Which of the following is an approach to privacy that conceals one’s identity by algorithmically generating a new public/private key pair for every transaction, based on a single master seed key?
1 point
zk-SNARK
consortium blockchain
classic exchange wallet
hierarchical deterministic (HD) wallet
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9.
Question 9
How could blockchain technology assist in reducing the asymmetry of information between a firm and its shareholders?
1 point
It can’t; implementing blockchain technology would actually increase the asymmetry of information between a firm and its shareholders.
By providing shareholders with a fully traceable record of the firm’s business dealings (e.g. asset ownership, transactions, and contracts), provided that the firm’s addresses are fully disclosed.
By allowing the firm to selectively disclose a subset of its information in order to build a good reputation.
By providing shareholders with intermittent accounting reports which have been certified by a trusted third party.
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10.
Question 10
In which scenario would it make sense for an organization to adopt a consortium blockchain?
1 point
A dictator wants to conceal the corruption in his government’s land title registry.
A medical lab wants to have exclusive write-access for recording patient records.
A financial institution wants to leverage the network effects and cryptographic auditing capabilities of a blockchain, however they are required by law to follow KYC/AML regulations.
All of the above
Week- 4
The Blockchain Ecosystem
1.
Question 1
The optimal approach to governance of a blockchain ecosystem would be:
1 point
A complete hands-off approach wherein the technology operates with “the iron will of unstoppable code”
A top-down approach in which strict regulations are used to control behavior
A multi-stakeholder approach entailing stewardship, collaboration, and incentives to act in common interests
All of the above
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2.
Question 2
This group of stakeholders represents those who were among the first to enter the blockchain space, and generally believes that any form of governance or oversight is antithetical to the principles of blockchain.
1 point
Industry pioneers
Venture capitalists
Academia
Users
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3.
Question 3
How can venture capitalists assist in advancing blockchain technology?
1 point
By making informed investments in blockchain technology
By advocating for blockchain technology
By appointing academics and other nontraditional advisors to their boards
All of the above
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4.
Question 4
More so than others, this group of stakeholders experienced a very swift change of opinion about blockchain technology—initially dismissing it as a speculative tool for gamblers and criminals, to now investing heavily in the technology and wading into leadership discussions.
1 point
Academia
Banks and financial services
Industry pioneers
NGOs
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5.
Question 5
More so than others, this group of stakeholders is split on basic technical issues, including the block-size debate.
1 point
Venture capitalists
Governments
Banks and financial services
Developers
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6.
Question 6
Within the blockchain ecosystem, academia is well-suited to:
1 point
Setting up labs, conducting research, and deliberating on issues without commercial bias.
Developing courses and other educational materials related to blockchain technology
Providing forums for collaboration and exchange among other stakeholders in the blockchain ecosystem
All of the above
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7.
Question 7
More so than others, this group of stakeholders has been uncoordinated in their approach to blockchain—some favoring laissez-faire policy, and others favouring strict rules and regulations.
1 point
Industry pioneers
Venture capitalists
Governments
NGOs
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8.
Question 8
This category of stakeholders includes groups like Jerry Brito’s Coin Center and Perianne Boring’s Chamber of Digital Commerce, representing “boots on the ground…to open a dialogue with government.”
1 point
Academia
Governments
NGOs
Developers
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9.
Question 9
More so than others, this group of stakeholders cares about how the security, privacy, and identity setup of a blockchain will personally affect themselves (and others).
1 point
Users
Academia
Banks and financial services
NGOs
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10.
Question 10
Which of the following does not represent a level of blockchain stewardship?
1 point
The platform level
The application level
The consortium level
The ecosystem level
Week- 5
Blockchain Implementation Challenges
1.
Question 1
In what sense is blockchain technology “not ready for prime time?”
1 point
The infrastructure is unevenly distributed
There is not enough wallet support, and a lot of interfaces are not user-friendly
Implementing blockchain technologies requires a profound shift in culture, behaviour, and ideology
All of the above
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2.
Question 2
One of the biggest challenges associated with using proof-of-work (PoW) as a consensus mechanism is:
1 point
It is relatively easy and inexpensive to perform an attack on a network that uses PoW
PoW is still very new and has not been widely tested; potential malfunctions are unknown
The amount of energy required to solve PoW problems is unsustainable
Validating a miner’s solution to a PoW problem is both difficult and costly
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3.
Question 3
How have some governments and lawmakers stifled blockchain innovation?
1 point
By attempting to introduce laws or policies without fully understanding the technology
By applying intellectual property rules to any non-physical property (e.g. cryptoassets)
By imposing heavy regulations in response to fears or worst case-scenarios
All of the above
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4.
Question 4
In 2014, thieves stole 8 million VeriCoins from the MintPal exchange. Within days of the attack, VeriCoin developers released new code that, in essence, rolled back time prior to the attack. They then collaborated with exchanges to make sure that this new code was adopted. This situation is an example of:
1 point
a fork
a Sybil attack
branching
hashing
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5.
Question 5
In the Bitcoin blockchain, what would likely happen if there were no transaction fees to incentivize miners?
1 point
Nothing would change.
The block reward would increase.
The consensus mechanism would change.
The hash rate would drop and network security would decline.
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6.
Question 6
How is blockchain a “job killer?”
1 point
Blockchain enables radical automation of asset management.
Blockchain reduces or eliminates the need for intermediaries to establish trust.
Blockchain enables physical objects (e.g. IoT devices) to create and control wealth.
All of the above
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7.
Question 7
Why is the governance of blockchain protocols so difficult—particularly for large, public blockchains?
1 point
Unlike the Internet, formal oversight bodies do not exist.
It is difficult for stakeholders with diverse interests to agree on a path forward.
Making ad hoc changes to a blockchain protocol could put everyone’s assets at risk.
All of the above
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8.
Question 8
Which of the following refers to an entity that uses intelligent software to manage and organize resources and processes?
1 point
decentralized network
distributed autonomous agent
full node
mining pool
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9.
Question 9
Which of the following best illustrates the concept of “privacy by design?”
1 point
Google’s Nest thermostat uses cameras and sensors to collect data about users’ homes.
Social media users receive targeted advertisements and marketing messages.
A peer-to-peer messaging protocol is built with end-to-end encryption, and respects users’ right to be forgotten
All of the above
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10.
Question 10
In 2014, Europol and the US Federal Bureau of Investigation (FBI) seized a dark-web marketplace for illegal drugs, which had 13,757 listings priced in Bitcoin. Consequently, the price of bitcoin plummeted and cryptocurrencies became synonymous with crime. What was the name of this site?
1 point
Anonymous
Silk Road
The Farmers Market
Tor
