Blockchain Technology: A Comprehensive Guide for Year 12 ICT Students

Question 1

Which of the following is NOT a potential use case for decentralized applications (dApps)?

Accepted Answer

Centralized cloud computing

Answer

Social networking platforms

Answer

Financial services

Answer

Supply chain management

Question 2

What is the primary distinction between permissioned and permissionless blockchains?

Accepted Answer

Access restrictions to the network

Answer

Consensus mechanisms utilized

Answer

Storage capacity for data

Answer

Transaction fees

Question 3

Which feature is a hallmark of the Ethereum blockchain?

Accepted Answer

Support for implementing smart contracts

Answer

Use of a proof-of-stake consensus mechanism

Answer

Unlimited scalability

Answer

Exclusive focus on privacy

Question 4

Which of the following is NOT a potential advantage of implementing blockchain technology?

Accepted Answer

Centralized control over data

Answer

Enhanced security against cyberattacks

Answer

Reduced costs associated with intermediaries

Answer

Increased transparency and accountability

Question 5

Which of the following is a characteristic that does NOT apply to blockchain technology?

Accepted Answer

Centralized

Answer

Decentralized

Answer

Immutable

Answer

Transparent

Question 6

Which technology underpins the operation of blockchain systems?

Accepted Answer

Distributed ledger

Answer

Cloud storage

Answer

Artificial intelligence

Answer

Quantum computing

Question 7

What is the process called when new data is added to a blockchain?

Accepted Answer

Mining

Answer

Hashing

Answer

Validation

Answer

Merkle tree

Question 8

What is the term that refers to the process of adding new blocks to a blockchain?

Accepted Answer

Mining

Answer

Hashing

Answer

Validation

Answer

Encryption

Question 9

What is the primary purpose of consensus mechanisms in the context of blockchain?

Accepted Answer

Ensuring agreement among network participants

Answer

Verifying transactions

Answer

Protecting against malicious activity

Answer

Facilitating smart contract execution

Question 10

Which characteristic accurately describes blockchain technology?

Accepted Answer

Transparency and tamper resistance

Answer

Centralized data storage

Answer

Control by a single governing body

Answer

Limited adaptability

Question 11

What is the primary purpose of a hash function in the context of blockchain?

Accepted Answer

To generate a unique and fixed-size code representation of data

Answer

To encrypt data for enhanced security

Answer

To decentralize data storage

Answer

To authenticate transactions within a block

Question 12

Identify the most comprehensive list of blockchain technology applications:

Accepted Answer

Cryptocurrencies, healthcare data management, and identity verification

Answer

Cryptocurrencies only

Answer

Healthcare data management and identity verification only

Answer

Identity verification and e-commerce only

Question 13

What is the primary function of distributed ledger technology (DLT) in blockchain?

Accepted Answer

To establish a shared and immutable record of transactions

Answer

To authenticate the identities of network participants

Answer

To centralize transaction processing

Answer

To store data in a single location

Question 14

What is the key difference between public and private blockchains?

Accepted Answer

Public blockchains are open to all users, while private blockchains are restricted to authorized participants.

Answer

Public blockchains are faster than private blockchains.

Answer

Public blockchains are less secure than private blockchains.

Answer

Public blockchains are primarily used for cryptocurrencies, while private blockchains are used for business applications.

Question 15

Which of the following is a primary benefit of using the Proof-of-Work (PoW) consensus algorithm?

Accepted Answer

Enhanced security against double-spending

Answer

Improved scalability

Answer

Reduced energy consumption

Answer

Faster transaction processing

Question 16

What is the primary function of a smart contract?

Accepted Answer

To enforce specific conditions and rules automatically

Answer

To store sensitive data securely

Answer

To enable anonymous communication

Answer

To mine cryptocurrency

Question 17

Which of the following is not considered a potential benefit of using blockchain technology?

Accepted Answer

Simpler and faster fraud

Answer

Enhanced security and trust

Answer

Increased transparency and accountability

Answer

Reduced transaction costs

Question 18

What was the pioneering implementation of blockchain technology?

Accepted Answer

Bitcoin

Answer

Ethereum

Answer

Hyperledger Fabric

Answer

R3 Corda

Question 19

What is the role of a miner in a blockchain network?

Accepted Answer

To verify transactions and add them to the blockchain

Answer

To maintain the network infrastructure

Answer

To create new units of cryptocurrency

Answer

To resolve disputes between users

Question 20

What term describes the process of adding new blocks to a blockchain?

Accepted Answer

Mining

Answer

Hashing

Answer

Smart contracting

Answer

Proof-of-work

Question 21

Which of the following is an example of a decentralized application (dApp) built on the Ethereum blockchain?

Accepted Answer

Uniswap

Answer

Google Drive

Answer

Amazon Web Services

Answer

Microsoft Teams

Question 22

What is the primary purpose of using a hash function in blockchain technology?

Accepted Answer

To create unique and unrepeatable identifiers

Answer

To secure and protect data

Answer

To compress large amounts of data

Answer

To encrypt transactions and messages

Question 23

What is the primary function of a hash function in blockchain?

Accepted Answer

To create a unique digital fingerprint for each block

Answer

To encrypt the data in each block

Answer

To verify the authenticity of transactions recorded on the blockchain

Answer

To control access to the blockchain network

Question 24

Which category of data is commonly stored and managed using smart contracts?

Accepted Answer

Financial agreements and transactions

Answer

Medical records and patient data

Answer

Personal information and social media data

Answer

Product specifications and manufacturing details

Question 25

What is the term used to describe the process of validating and adding new blocks to the blockchain network?

Accepted Answer

Mining

Answer

Hashing

Answer

Consensus

Answer

Cryptography

Question 26

What is the key distinction between a public and a private blockchain network?

Accepted Answer

Public blockchains are open and accessible to anyone, while private blockchains are restricted to specific authorized participants

Answer

Private blockchains offer higher levels of security and control compared to public blockchains

Answer

Public blockchains are primarily used for cryptocurrencies, while private blockchains are designed for business and enterprise applications

Answer

Both public and private blockchains utilize the same consensus mechanisms

Question 27

Which of the following is a key characteristic of blockchain technology?

Accepted Answer

Immutability of recorded data

Answer

Centralized data storage

Answer

Control by a single authority

Answer

Inherently high transaction fees

Question 28

In a blockchain network, what is the primary role of a miner?

Accepted Answer

To create and distribute new blocks

Answer

To validate and record transactions

Answer

To maintain the entire blockchain history

Answer

To control the network's consensus mechanism

Question 29

Distinguish between cryptocurrencies and tokens. Which statement accurately describes their difference?

Accepted Answer

Cryptocurrencies serve as a medium of exchange, while tokens represent value or rights.

Answer

Tokens are backed by physical assets, whereas cryptocurrencies are not.

Answer

Cryptocurrencies are decentralized, while tokens are centralized.

Answer

Tokens are always created through an ICO, but cryptocurrencies are not.

Question 30

What is the primary purpose of a distributed ledger in the context of blockchain?

Accepted Answer

To maintain a complete and unalterable record of all transactions.

Answer

To enable the creation and execution of smart contracts.

Answer

To facilitate communication between nodes in the blockchain network.

Answer

To manage the mining process and distribute rewards to miners.

Question 31

Which of the following is NOT a potential ethical concern associated with blockchain technology?

Accepted Answer

Enhanced environmental sustainability

Answer

Data privacy and surveillance

Answer

Algorithmic bias and discrimination

Answer

Increased cybercrime

Question 32

Which development process involves creating, deploying, and managing smart contracts on a blockchain network?

Accepted Answer

Smart Contract Development Cycle

Answer

Blockchain Mining

Answer

Cryptography

Answer

Consensus Protocols

Question 33

Which characteristic defines blockchain technology, ensuring that once data is added, it cannot be deleted or altered?

Accepted Answer

Immutability

Answer

Centralization

Answer

Transparency

Answer

Reversibility

Question 34

What is the primary purpose of a smart contract in a blockchain system?

Accepted Answer

To facilitate automatic execution of contracts or agreements without relying on intermediaries

Answer

To store sensitive information securely on the blockchain

Answer

To create and manage new cryptocurrencies

Answer

To monitor and manage decentralized applications

Question 35

Which type of blockchain network is controlled and managed by a central entity, offering limited access to participants?

Accepted Answer

Private blockchain

Answer

Public blockchain

Answer

Hybrid blockchain

Answer

Federated blockchain

Question 36

In the context of blockchain technology, what technique ensures secure transfer of data over a network?

Accepted Answer

Cryptography

Answer

Hashing

Answer

Cloud storage

Answer

Artificial intelligence

Question 37

What is the process called that verifies and adds new blocks of data to a blockchain network?

Accepted Answer

Mining

Answer

Hashing

Answer

Encryption

Answer

Verification

Question 38

What is the key characteristic of a decentralized application (dApp) in a blockchain system?

Accepted Answer

Operation on a distributed network without a central authority

Answer

Reliance on a centralized database for data storage and operations

Answer

Support for cryptocurrency transactions as its primary function

Answer

Management of smart contracts as its sole purpose

Question 39

Identify the name of the prominent cryptocurrency that operates on its own dedicated blockchain network.

Accepted Answer

Bitcoin

Answer

Ethereum

Answer

Litecoin

Answer

Dogecoin

Question 40

What is the primary function of a smart contract within blockchain technology?

Accepted Answer

Automating the execution of agreements securely.

Answer

Anonymizing user data.

Answer

Validating cryptocurrency transactions.

Answer

Storing data in a centralized manner.

Question 41

Which characteristic does NOT apply to decentralized applications (dApps)?

Accepted Answer

Centrally managed by a single entity.

Answer

Open-source

Answer

Runs on a decentralized network.

Answer

Distributed architecture

Question 42

Which challenge is considered critical in the implementation of blockchain technology?

Accepted Answer

Scalability

Answer

Data privacy concerns

Answer

High implementation costs

Answer

Lack of regulatory guidelines

Question 43

What is the primary responsibility of a miner in a Proof-of-Work blockchain?

Accepted Answer

Generating new blocks.

Answer

Validating transactions.

Answer

Providing liquidity to the network.

Answer

Establishing the blockchain rules.

Question 44

Which of the following is a defining characteristic of blockchain technology?

Accepted Answer

Immutable

Answer

Centralized

Answer

Hierarchical

Answer

Scalable

Question 45

What is a primary function of cryptocurrencies?

Accepted Answer

Facilitating online payments

Answer

Storing sensitive data

Answer

Executing legal agreements

Answer

Verifying user identities

Question 46

Which of the following is an advantage of using smart contracts?

Accepted Answer

Automated execution of agreements

Answer

Reduced transaction processing time

Answer

Increased reliance on third parties

Answer

Enhanced susceptibility to fraud

Question 47

What is the primary purpose of a decentralized application (dApp)?

Accepted Answer

Facilitating direct communication between users

Answer

Providing secure cloud storage

Answer

Managing cryptocurrency transactions

Answer

Executing complex mathematical calculations

Question 48

Which of the following is not a type of consensus mechanism used in blockchain?

Accepted Answer

Majority Voting

Answer

Proof of Work

Answer

Proof of Stake

Answer

Proof of Authority

Question 49

What is a key advantage of using a permissionless blockchain?

Accepted Answer

Open access for anyone to participate

Answer

Increased privacy

Answer

Higher security

Answer

Improved scalability

Question 50

What is the primary function of a distributed ledger in blockchain technology?

Accepted Answer

Maintaining a secure and verifiable record of transactions

Answer

Providing data encryption

Answer

Executing smart contracts

Answer

Facilitating communication between nodes

Question 51

Which of the following accurately describes blockchain technology?

Accepted Answer

A decentralized, immutable ledger shared across a network of computers

Answer

A centralized, modifiable ledger controlled by a single entity

Answer

A cloud-based storage system for storing vast amounts of data

Answer

A cryptographic function used to secure online transactions

Question 52

In the context of blockchain, what is the term for the process of adding new blocks to the chain?

Accepted Answer

Mining

Answer

Hashing

Answer

Encrypting

Answer

Validating

Question 53

What is the primary purpose of a smart contract in blockchain technology?

Accepted Answer

To automatically execute predefined agreements based on specific conditions

Answer

To provide secure channels for financial transactions

Answer

To ensure anonymity for users conducting transactions

Answer

To store and manage sensitive data securely

Question 54

Which fundamental characteristic of blockchain technology decentralizes its operations?

Accepted Answer

Decentralization

Answer

Immutability

Answer

Anonymit

Answer

Centralized control

Question 55

What primary purpose do smart contracts serve in blockchain systems?

Accepted Answer

To automate the execution of predetermined agreements

Answer

To mint new cryptocurrencies

Answer

To store sensitive user data securely

Answer

To process transactions on a blockchain

Question 56

What key difference distinguishes a public blockchain from its private counterpart?

Accepted Answer

Access control mechanisms

Answer

Transaction fees

Answer

Data immutability features

Answer

Consensus mechanisms employed

Question 57

Which of the following is a prime example of a decentralized application (dApp)?

Accepted Answer

CryptoKitties

Answer

Facebook

Answer

PayPal

Answer

Google Drive

Question 58

In the context of blockchain, what is the primary function of a hash function?

Accepted Answer

Creating a unique and irreversible representation of data

Answer

Encrypting data for enhanced security

Answer

Validating transactions to maintain network integrity

Answer

Storing digital signatures for authentication purposes

Question 59

Which consensus mechanism is employed to validate transactions and maintain network consensus in the Bitcoin blockchain?

Accepted Answer

Proof of Work

Answer

Proof of Stake

Answer

Delegated Proof of Stake

Answer

Practical Byzantine Fault Tolerance

Question 60

Which of the following is NOT a key characteristic of blockchain technology?

Accepted Answer

Anarchy

Answer

Decentralization

Answer

Immutability

Answer

Transparency

Question 61

What is the primary purpose of a cryptocurrency?

Accepted Answer

To facilitate digital payments and transactions without the need for intermediaries.

Answer

To store and manage personal data securely.

Answer

To automate the execution of agreements and contracts.

Answer

To connect different blockchain networks.

Question 62

What is the primary role of miners in a blockchain network?

Accepted Answer

Verifying and adding new blocks to the blockchain.

Answer

Creating new cryptocurrencies.

Answer

Operating the nodes that connect the blockchain.

Answer

Developing and maintaining smart contracts.

Question 63

Which of the following properties is a fundamental characteristic of blockchain technology?

Accepted Answer

Decentralized structure

Answer

Centralized control

Answer

Transparency

Answer

Limited accessibility

Question 64

Which of the following is an example of a cryptocurrency built on blockchain technology?

Accepted Answer

Bitcoin

Answer

Google Pay

Answer

Loyalty points

Answer

Gift cards