1What is the primary drawback of a centralized record-keeping system that distributed systems aim to solve?
A.High latency in data retrieval
B.Single point of failure
C.Complex data structures
D.Redundant data storage
Correct Answer: Single point of failure
Explanation:Centralized systems rely on a single authority or server. If this central point crashes or is compromised, the entire system fails. Distributed systems mitigate this by replicating data across multiple nodes.
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2In the context of distributed systems, what does DLT stand for?
A.Digital Linked Transaction
B.Distributed Ledger Technology
C.Data Linear Topology
D.Decentralized Logic Table
Correct Answer: Distributed Ledger Technology
Explanation:DLT stands for Distributed Ledger Technology, which refers to the technological infrastructure and protocols that allow simultaneous access, validation, and record updating in an immutable manner across a network.
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3Which of the following best describes an immutable ledger?
A.A ledger that can be edited by anyone
B.A ledger that can only be edited by the administrator
C.A ledger where records cannot be altered or deleted once validated
D.A ledger that automatically deletes old records
Correct Answer: A ledger where records cannot be altered or deleted once validated
Explanation:Immutability in blockchain means that once data has been written to the blockchain, it cannot be tampered with or changed retrospectively.
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4In modeling faults, what is a Crash Fault?
A.A node stops functioning and does not respond
B.A node sends conflicting information to different peers
C.A node actively tries to hack the network
D.A node responds with incorrect data due to a bug
Correct Answer: A node stops functioning and does not respond
Explanation:A crash fault occurs when a component simply stops working (halts) but does not perform malicious actions or send corrupt data before stopping.
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5How does a Byzantine Fault differ from a Crash Fault?
A.Byzantine faults are caused by hardware failure only
B.Byzantine faults involve nodes behaving arbitrarily or maliciously
C.Byzantine faults only happen in centralized systems
D.Byzantine faults are easier to solve than crash faults
Correct Answer: Byzantine faults involve nodes behaving arbitrarily or maliciously
Explanation:A Byzantine fault is the most severe class of failure where a node may function correctly, stop, or send conflicting/malicious information to different parts of the system to disrupt consensus.
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6What is the Sybil Attack in the context of peer-to-peer networks?
A.An attack where a user steals private keys
B.An attack where a single adversary controls multiple fake identities
C.An attack that shuts down the internet connection
D.An attack on the hashing algorithm
Correct Answer: An attack where a single adversary controls multiple fake identities
Explanation:In a Sybil attack, a single entity subverts the reputation system of a network service by creating a large number of pseudonymous identities to gain disproportionate influence.
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7The Byzantine Generals Problem is a metaphor for which challenge?
A.Encrypting messages between generals
B.Reaching consensus in the presence of unreliable or malicious nodes
C.Distributing food supplies to an army
D.Calculating the shortest path to a castle
Correct Answer: Reaching consensus in the presence of unreliable or malicious nodes
Explanation:It illustrates the difficulty of decentralized parties arriving at a consensus without relying on a trusted central party, especially when some parties might be 'traitors' (malicious).
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8In a system with nodes, what is the maximum number of Byzantine faulty nodes that can be tolerated to ensure consensus?
A.
B.
C.
D.
Correct Answer:
Explanation:To achieve Byzantine Fault Tolerance, the total number of nodes must be strictly greater than . Therefore, , or .
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9If a network has 4 generals, how many can be traitors for the system to still reach a reliable consensus?
A.
B.1
C.2
D.3
Correct Answer: 1
Explanation:Using the formula , if , then . The system can tolerate at most 1 traitor.
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10Which of the following is NOT a property of a cryptographic hash function used in Blockchain?
A.Collision resistance
B.Pre-image resistance
C.Reversibility
D.Avalanche effect
Correct Answer: Reversibility
Explanation:Cryptographic hash functions must be one-way (deterministic but irreversible). You should not be able to derive the original input from the hash output.
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11What is a Hash Pointer?
A.A pointer to the memory address of the next block
B.A pointer to where data is stored together with a cryptographic hash of that data
C.A URL link to a digital image
D.A private key used to sign transactions
Correct Answer: A pointer to where data is stored together with a cryptographic hash of that data
Explanation:A hash pointer allows you to retrieve the information and verify that it hasn't changed, forming the basis of the tamper-evident blockchain structure.
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12In a blockchain, if an attacker modifies data in Block , what happens to the hash pointers in subsequent blocks?
A.They remain unchanged
B.Only Block changes
C.All subsequent blocks () become invalid
D.The blockchain automatically corrects the data
Correct Answer: All subsequent blocks () become invalid
Explanation:Because each block contains the hash of the previous block, changing data in Block changes its hash. Block 's 'previous hash' field no longer matches, changing Block 's hash, and so on, breaking the chain.
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13What data structure is commonly used to efficiently summarize transactions within a block?
A.Linked List
B.Merkle Tree
C.Hash Map
D.Binary Search Tree
Correct Answer: Merkle Tree
Explanation:A Merkle Tree is a binary tree of hashes used to efficiently summarize and verify the integrity of large sets of data (transactions) using a single root hash.
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14What is the Double Spending problem in digital cash?
A.Spending more money than you earn
B.Paying twice the amount for a product
C.Using the same single digital token to complete two different transactions
D.Sending money to the wrong address
Correct Answer: Using the same single digital token to complete two different transactions
Explanation:Since digital data can be easily copied, double spending occurs if a user sends the same unit of digital currency to two different recipients simultaneously.
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15Before Bitcoin, how was the double-spending problem typically solved?
A.Using Proof of Work
B.Using a trusted central clearinghouse (Third Party)
C.It was never solved
D.By trusting the users
Correct Answer: Using a trusted central clearinghouse (Third Party)
Explanation:Traditional digital cash systems (like eCash) relied on a centralized bank to verify that a token hadn't been spent already.
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16Which consensus mechanism did Satoshi Nakamoto introduce to solve the Byzantine Generals Problem in a public network?
A.Proof of Stake (PoS)
B.Proof of Work (PoW)
C.Practical Byzantine Fault Tolerance (PBFT)
D.Round Robin
Correct Answer: Proof of Work (PoW)
Explanation:Nakamoto used Proof of Work (PoW) to create a probabilistic consensus where nodes vote with their CPU power, making it computationally expensive to act maliciously.
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17Who is the credited creator of Bitcoin?
A.Vitalik Buterin
B.Nick Szabo
C.Satoshi Nakamoto
D.David Chaum
Correct Answer: Satoshi Nakamoto
Explanation:Satoshi Nakamoto is the pseudonym used by the unknown person or group who developed Bitcoin and authored the white paper in 2008.
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18What is the Genesis Block?
A.The last block in a blockchain
B.A block that contains a virus
C.The very first block in a blockchain
D.A block rejected by the consensus
Correct Answer: The very first block in a blockchain
Explanation:The Genesis Block (Block 0) is the first block of a blockchain, which is hardcoded into the software and has no previous block to reference.
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19What is the primary function of a Nonce in Bitcoin's Proof of Work?
A.To encrypt the transaction data
B.To count the number of users
C.An arbitrary number miners change to generate a hash below a specific target
D.A timestamp for the transaction
Correct Answer: An arbitrary number miners change to generate a hash below a specific target
Explanation:Miners repeatedly increment the Nonce (Number used ONCE) and re-hash the block header until the resulting hash satisfies the difficulty target.
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20Which of the following is a major scalability issue in Proof of Work blockchains?
A.Too much storage space
B.Low transaction throughput (TPS)
C.Lack of security
D.Centralization of nodes
Correct Answer: Low transaction throughput (TPS)
Explanation:Due to block size limits and the time required to mine blocks (10 mins in Bitcoin), PoW blockchains generally suffer from low Transactions Per Second (TPS) compared to centralized networks like Visa.
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21What is the Scalability Trilemma in blockchain?
A.You can only choose two: Decentralization, Security, Scalability
B.You can only choose two: Privacy, Speed, Cost
C.You can only choose two: Hardware, Software, Network
D.You can only choose two: Mining, Staking, Voting
Correct Answer: You can only choose two: Decentralization, Security, Scalability
Explanation:The Trilemma posits that it is difficult for a blockchain system to simultaneously achieve optimal Decentralization, Security, and Scalability.
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22Which technology was borrowed from Adam Back's work for Bitcoin?
A.Smart Contracts
B.Hashcash (Proof of Work)
C.Ring Signatures
D.Zero Knowledge Proofs
Correct Answer: Hashcash (Proof of Work)
Explanation:Adam Back invented Hashcash in 1997 as a mechanism to limit email spam and denial-of-service attacks. Bitcoin adapted this PoW mechanism for block generation.
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23In Bitcoin, how is the 'Longest Chain Rule' used?
A.To determine which transactions are the largest
B.To resolve forks by accepting the chain with the most accumulated work
C.To decide the block size limit
D.To remove old blocks to save space
Correct Answer: To resolve forks by accepting the chain with the most accumulated work
Explanation:When two blocks are mined simultaneously (a fork), nodes follow the chain with the most cumulative Proof of Work (usually the longest chain) as the valid version of truth.
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24What does SHA-256 produce?
A.A 128-bit hash
B.A 256-bit fixed-length string
C.An encrypted version of the file
D.A compressed version of the file
Correct Answer: A 256-bit fixed-length string
Explanation:SHA-256 is a cryptographic hash function that outputs a fixed 256-bit (32-byte) signature regardless of the input size.
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25What is a Soft Fork?
A.A backward-compatible upgrade to the blockchain protocol
B.A divergence in the chain that is permanent and non-backward compatible
C.A fork made of plastic
D.A method to clone a blockchain
Correct Answer: A backward-compatible upgrade to the blockchain protocol
Explanation:A soft fork tightens rules. Old nodes will still recognize the new blocks as valid, maintaining backward compatibility.
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26What is the primary motivation for Distributed Record Keeping in supply chains?
A.To conceal data from competitors
B.To increase transparency and traceability among multiple stakeholders
C.To reduce the cost of internet bandwidth
D.To centralize authority
Correct Answer: To increase transparency and traceability among multiple stakeholders
Explanation:Distributed ledgers allow all participants in a supply chain to view the same immutable history of a product, enhancing trust and traceability.
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27In the context of CAP Theorem, which two properties do typical blockchains (like Bitcoin) prioritize?
A.Consistency and Availability
B.Availability and Partition Tolerance
C.Consistency and Partition Tolerance
D.Speed and Security
Correct Answer: Availability and Partition Tolerance
Explanation:Public blockchains usually prioritize Availability and Partition Tolerance (AP) (eventual consistency) over immediate Consistency, allowing the network to function even if nodes are disconnected.
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28Which of the following is a characteristic of Private Blockchains?
A.Anyone can join and read the ledger
B.Access is restricted to permissioned users
C.They utilize Proof of Work exclusively
D.They are fully decentralized
Correct Answer: Access is restricted to permissioned users
Explanation:Private (Permissioned) blockchains restrict read/write access to known, authorized participants, unlike public blockchains.
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29What is a Coinbase Transaction?
A.A transaction to buy coins from a database
B.The first transaction in a block that creates new coins for the miner
C.A transaction fee paid to the network
D.A transaction that failed verification
Correct Answer: The first transaction in a block that creates new coins for the miner
Explanation:The coinbase transaction is a unique transaction included by the miner in a block which generates the block reward (new cryptocurrency).
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30Which digital cash pioneer created eCash and focused on privacy/anonymity using blind signatures?
A.Hal Finney
B.David Chaum
C.Adam Back
D.Wei Dai
Correct Answer: David Chaum
Explanation:David Chaum is a cryptographer who created DigiCash (eCash) in the 1980s, introducing blind signatures to allow for anonymous digital payments.
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31What prevents a user from modifying the content of a previous block in Bitcoin?
A.The timestamp
B.The computational energy required to redo the Proof of Work for that block and all subsequent blocks
C.The fear of getting banned
D.The centralized server rejects it
Correct Answer: The computational energy required to redo the Proof of Work for that block and all subsequent blocks
Explanation:To modify a past block, an attacker would have to re-mine that block and every block that came after it faster than the rest of the honest network combined, which is computationally infeasible.
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32What is the role of Asymmetric Cryptography (Public/Private keys) in Blockchain?
A.To mine new blocks
B.To sign transactions and verify ownership
C.To compress the blockchain data
D.To connect to the internet
Correct Answer: To sign transactions and verify ownership
Explanation:Users sign transactions with their private key, and the network verifies the signature with the corresponding public key to prove ownership of funds.
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33In a peer-to-peer network, what is Gossip Protocol?
A.A method where nodes share information randomly with peers to propagate data across the network
B.A chat room for miners
C.A security breach protocol
D.A way to gossip about price
Correct Answer: A method where nodes share information randomly with peers to propagate data across the network
Explanation:Gossip protocols are used to broadcast transactions and blocks. A node tells its neighbors, who tell their neighbors, spreading data exponentially.
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34What happens when a collision occurs in a hash function?
A.The system crashes
B.Two different inputs produce the same output hash
C.The hash function deletes the data
D.The inputs are automatically encrypted
Correct Answer: Two different inputs produce the same output hash
Explanation:A collision is a failure of a hash function where but . Good cryptographic hash functions make this extremely rare.
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35Why is Proof of Work considered energy inefficient?
A.It requires constant internet connection
B.It requires massive computational power performing repetitive calculations
C.It uses old batteries
D.It requires manual human labor
Correct Answer: It requires massive computational power performing repetitive calculations
Explanation:PoW relies on brute-forcing hash values, which requires specialized hardware (ASICs) running 24/7, consuming significant electricity.
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36What defines the Target in Bitcoin mining?
A.The number of bitcoins to be mined
B.The specific IP address of the node
C.A 256-bit number that the block hash must be less than or equal to
D.The version number of the software
Correct Answer: A 256-bit number that the block hash must be less than or equal to
Explanation:The target determines the difficulty. Miners must find a hash numerically lower than this target value.
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37Which of the following is an example of a State Machine Replication problem?
A.Ensuring all nodes execute the same transactions in the same order
B.Replicating hardware components
C.Copying emails to a backup server
D.Backing up a database to a USB drive
Correct Answer: Ensuring all nodes execute the same transactions in the same order
Explanation:Blockchain can be viewed as state machine replication where the ledger is the state, and every valid block updates the state across all nodes consistently.
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38What is the UTXO model?
A.Universal Text Xylophone Organization
B.Unspent Transaction Output
C.User Transaction Order
D.United Token Exchange Oracle
Correct Answer: Unspent Transaction Output
Explanation:Bitcoin uses the UTXO model where user balances are not stored as a single number, but as a collection of unspent outputs from previous transactions.
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39In the context of Adversaries, what is a 51% Attack?
A.When 51% of users sell their coins
B.When an attacker controls more than 50% of the network's mining power
C.When the price drops by 51%
D.When 51% of nodes crash
Correct Answer: When an attacker controls more than 50% of the network's mining power
Explanation:With majority control of the hash rate, an attacker can reorganize the blockchain, double-spend coins, and prevent other transactions from being confirmed.
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40The concept of Timestamping in blockchain ensures what?
A.That the transaction happens instantly
B.Proof that data existed at a specific point in time
C.That the miner gets paid
D.That the clock on the user's computer is correct
Correct Answer: Proof that data existed at a specific point in time
Explanation:The timestamp field in the block header proves that the data (transactions) must have existed at that time to get into the block hash.
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41What is the Avalanche Effect in hashing?
A.A large input produces a small output
B.A small change in input results in a significant, unpredictable change in the output
C.The hash function becomes faster over time
D.The network collapses like an avalanche
Correct Answer: A small change in input results in a significant, unpredictable change in the output
Explanation:A key property of cryptographic hashes: changing even one bit of the input should change roughly half the bits of the output hash.
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42Which consensus algorithm is generally considered to have the highest throughput (scalability) but potentially lower decentralization?
A.Proof of Work (PoW)
B.Delegated Proof of Stake (DPoS)
C.Nakamoto Consensus
D.Hashcash
Correct Answer: Delegated Proof of Stake (DPoS)
Explanation:DPoS relies on a small number of elected delegates to validate blocks, allowing for much faster confirmation times and throughput than PoW, at the cost of centralization.
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43Wei Dai's b-money proposal was significant because:
A.It was the first to use PoW for money issuance
B.It created the first smart contract
C.It proposed a centralized bank
D.It used physical coins
Correct Answer: It was the first to use PoW for money issuance
Explanation:Proposed in 1998, b-money was an early proposal for an anonymous, distributed electronic cash system that introduced concepts like requiring computational work to mint currency.
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44In a distributed system, Safety ensures that:
A.Something good eventually happens
B.Nothing bad ever happens (e.g., no two nodes decide on different values)
C.The system is fast
D.The system is energy efficient
Correct Answer: Nothing bad ever happens (e.g., no two nodes decide on different values)
Explanation:In distributed computing properties, Safety guarantees that the system remains consistent and valid (no forks/disagreements finalized).
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45In a distributed system, Liveness ensures that:
A.The system never halts and eventually produces a result
B.The system is consistent
C.The system is private
D.The system cannot be hacked
Correct Answer: The system never halts and eventually produces a result
Explanation:Liveness guarantees that the system continues to make progress and that valid transactions will eventually be processed.
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46Why is Latency a challenge in global blockchains?
A.Light travels too slow
B.Propagation delay of blocks across the global network increases the risk of forks
C.Computers are slow
D.Miners are lazy
Correct Answer: Propagation delay of blocks across the global network increases the risk of forks
Explanation:If it takes time for a block to reach all nodes, other miners might solve a block in the meantime without knowing one was already found, creating a temporary fork (stale blocks).
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47A Smart Contract is best described as:
A.A legal document scanned into a PDF
B.Self-executing code stored on a blockchain that runs when conditions are met
C.A verbal agreement between miners
D.A contract signed with AI
Correct Answer: Self-executing code stored on a blockchain that runs when conditions are met
Explanation:Smart contracts are scripts on the blockchain that automatically enforce and execute the terms of an agreement without intermediaries.
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48What is the Block Header?
A.The first transaction in the block
B.Metadata containing the version, previous block hash, merkle root, timestamp, and nonce
C.The title of the blockchain
D.The signature of the creator
Correct Answer: Metadata containing the version, previous block hash, merkle root, timestamp, and nonce
Explanation:The block header contains the crucial metadata that links the block to the chain and validates the Proof of Work.
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49Why do blockchains use Public Key Cryptography (Digital Signatures) instead of passwords?
A.Passwords are too short
B.To remove the need for a central server to store and verify passwords
C.It is cheaper
D.It looks cooler
Correct Answer: To remove the need for a central server to store and verify passwords
Explanation:Passwords require a central authority to verify. Digital signatures allow anyone on the network to verify the authorization of funds mathematically without a central secret database.
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50The combination of P2P networking, cryptography, and consensus algorithms in blockchain results in a system that is:
A.Trustless
B.Trust-dependent
C.Managed
D.Fragile
Correct Answer: Trustless
Explanation:The term 'trustless' means users do not need to trust a third party or each other; they only need to trust the code and the protocol rules.
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