Unit 1: Introduction to Blockchain and Decentralization - Practice Quiz

CSE436 — Blockchain 60 Questions
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1 Which development helped blockchain technology expand beyond digital currency?

The growth of blockchain technology Easy
A. The introduction of smart contracts
B. The decline of digital records
C. The removal of computer networks
D. The replacement of cryptography

2 Why have organizations explored blockchain technology?

The growth of blockchain technology Easy
A. To eliminate all data storage
B. To avoid using computer networks
C. To share tamper-resistant records
D. To make every record private

3 Who published the Bitcoin white paper under a pseudonym?

The history of blockchain and Bitcoin Easy
A. Hal Finney
B. Vitalik Buterin
C. Satoshi Nakamoto
D. Nick Szabo

4 In which year was the Bitcoin white paper published?

The history of blockchain and Bitcoin Easy
A. 2006
B. 2010
C. 2008
D. 2012

5 What is a distributed system?

Distributed systems Easy
A. A paper-based method for storing records
B. A program running on one processor
C. A single computer without network access
D. A group of networked computers working together

6 What is a node in a distributed system?

Distributed systems Easy
A. A participating computer or device
B. A password used for encryption
C. A printed copy of a transaction
D. A fee charged by a bank

7 How are blocks commonly connected in a blockchain?

Blockchain Easy
A. By account passwords
B. By cryptographic hashes
C. By network cables
D. By file names

8 What does a block in a blockchain usually contain?

Blockchain Easy
A. Only the network's physical address
B. Transaction data without any metadata
C. Transaction data and a previous block hash
D. Only a user's account password

9 What is the main purpose of a consensus mechanism?

Consensus Easy
A. To assign passwords to network users
B. To help nodes agree on the ledger state
C. To connect computers with physical cables
D. To compress every stored transaction

10 Which of the following is a blockchain consensus mechanism?

Consensus Easy
A. Hypertext Transfer Protocol
B. Proof of Work
C. File Transfer Protocol
D. Domain Name System

11 What does decentralization generally mean in a blockchain network?

Decentralization using blockchain Easy
A. Access is limited to one administrator
B. Control is distributed among participants
C. Control belongs to one central server
D. Records are stored on one device

12 Which feature supports decentralization in a blockchain?

Decentralization using blockchain Easy
A. One administrator storing all records
B. Multiple nodes maintaining the ledger
C. One server approving every update
D. A single device creating every account

13 Which method removes an intermediary from a transaction?

Methods of decentralization Easy
A. Centralization
B. Disintermediation
C. Virtualization
D. Replication

14 Which method decentralizes decision-making through competition among participants?

Methods of decentralization Easy
A. Server-based consolidation
B. Competition-driven decentralization
C. Authority-driven centralization
D. Administrator-led replication

15 Which action is a practical route toward decentralizing an application?

Routes to decentralization Easy
A. Allowing one company to verify transactions
B. Moving all data to one private server
C. Giving one user permanent control
D. Moving shared data to a distributed ledger

16 What does full ecosystem decentralization aim to distribute?

Blockchain and full ecosystem decentralization Easy
A. Only physical network cables
B. Only application screen colors
C. Data, control, and decision-making
D. Only user account names

17 What is a hash in blockchain terminology?

Pertinent terminology Easy
A. A password chosen by a network administrator
B. A fixed-size output produced from input data
C. A physical device that stores cryptocurrency
D. A fee paid to open a digital account

18 What is a public key commonly used for in blockchain systems?

Pertinent terminology Easy
A. Receiving assets and verifying signatures
B. Replacing the consensus mechanism
C. Secretly signing outgoing transactions
D. Deleting confirmed ledger entries

19 Which blockchain platform is widely known for supporting smart contracts?

Platforms for decentralization Easy
A. PostgreSQL
B. Bluetooth
C. Ethereum
D. Ethernet

20 What does DeFi refer to in blockchain technology?

Innovative trends Easy
A. Distributed firmware installation
B. Digitally encrypted file indexing
C. Direct fiber infrastructure
D. Decentralized financial services

21 A group of competing logistics companies wants to share shipment histories without allowing one company to control the database. Which blockchain characteristic most directly supports this use case?

The growth of blockchain technology Medium
A. Shared records maintained through distributed consensus
B. Automatic confidentiality for all published shipment data
C. Unlimited transaction processing on every participating node
D. Centralized validation performed by the largest logistics company

22 Before Bitcoin, digital cash systems struggled with double-spending. What was Bitcoin's key contribution to addressing this problem without a central authority?

The history of blockchain and Bitcoin Medium
A. A central server that approved each digital payment
B. A fixed exchange rate between coins and national currency
C. A public ledger ordered through proof-of-work consensus
D. A private database protected by conventional encryption

23 During a network partition, two groups of nodes continue accepting conflicting updates instead of pausing. Which property is the system prioritizing?

Distributed systems Medium
A. Confidentiality over fault tolerance
B. Finality over network accessibility
C. Availability over immediate consistency
D. Immediate consistency over availability

24 An attacker changes a transaction in an old block. Why would nodes normally detect this alteration?

Blockchain Medium
A. The network addresses of all previous nodes would change
B. The altered block would become encrypted with a new key
C. The transaction would automatically lose its digital signature
D. The block hash and subsequent hash references would change

25 A Byzantine fault-tolerant network has 10 validators and follows the condition . What is the maximum number of Byzantine validators it can tolerate?

Consensus Medium
A. 4 validators
B. 3 validators
C. 2 validators
D. 5 validators

26 A charity stores donations on a blockchain, but one employee can transfer all funds using a single private key. Which change would most improve decentralization of fund control?

Decentralization using blockchain Medium
A. Publish the employee's wallet address on the charity website
B. Store the employee's private key on a faster computer
C. Require a multisignature approval from independent trustees
D. Increase the block size used by the underlying network

27 An online marketplace currently approves every listing through a central administrator. Which change most directly decentralizes its decision-making process?

Methods of decentralization Medium
A. Move the administrator's database to a cloud provider
B. Encrypt listings before the administrator reviews them
C. Allow a DAO of participants to vote on listing rules
D. Increase the administrator's server replication capacity

28 A new blockchain network initially uses one operator for rapid development but plans to distribute control later. Which action best represents progressive decentralization?

Routes to decentralization Medium
A. Move all protocol code into a private internal repository
B. Replace community voting with decisions from the founding company
C. Permanently retain one validator while increasing its computing power
D. Gradually transfer validation and governance to independent participants

29 A decentralized exchange uses smart contracts and distributed validators, but its website is hosted on one server controlled by the founding company. What risk remains?

Blockchain and full ecosystem decentralization Medium
A. The validators cannot verify transaction signatures
B. The blockchain cannot produce additional blocks
C. The smart contracts cannot hold digital assets
D. The website remains a centralized access point

30 A protocol upgrade introduces new optional transaction rules, while nodes running the old software can still accept blocks produced under those rules. What is this upgrade called?

Pertinent terminology Medium
A. A hard fork
B. A genesis reset
C. A soft fork
D. A chain reorganization

31 A consortium of banks needs a permissioned ledger with known identities, restricted data access, and configurable consensus. Which platform is the most suitable?

Platforms for decentralization Medium
A. Bitcoin
B. Hyperledger Fabric
C. IPFS
D. Filecoin

32 A blockchain application moves transaction execution off the main chain, bundles many results, and posts compressed data or proofs back to the main chain. Which trend does this describe?

Innovative trends Medium
A. Layer-2 rollups
B. Proof-of-work mining
C. Peer discovery
D. Private-key sharding

33 Which earlier idea most directly influenced Bitcoin's proof-of-work mechanism by requiring computational effort to create a valid value?

The history of blockchain and Bitcoin Medium
A. Merkle trees
B. Relational databases
C. Hashcash
D. Public-key certificates

34 In a distributed payment network, one node sends different transaction histories to different peers. What type of fault is this behavior?

Distributed systems Medium
A. A latency fault
B. A crash fault
C. A Byzantine fault
D. A storage fault

35 A light client wants to verify that one transaction is included in a block without downloading every transaction. What should it request?

Blockchain Medium
A. A copy of every block since genesis
B. A Merkle proof and the block header
C. The source code of the wallet software
D. The private keys of the block validators

36 Two valid Bitcoin branches temporarily exist. Under normal operation, which branch will nodes eventually prefer?

Consensus Medium
A. The branch created by the oldest active mining node
B. The branch with the fewest recorded block timestamps
C. The branch with the greatest cumulative proof of work
D. The branch containing the largest individual transaction

37 A document registry stores complete files on one company server but records each file's hash on a public blockchain. What does the blockchain primarily guarantee?

Decentralization using blockchain Medium
A. Permanent availability of every complete file
B. Detection of changes to the registered files
C. Legal ownership of every uploaded document
D. Confidentiality of each file's contents

38 A protocol team wants to prevent one company from controlling software development. Which method best distributes development authority?

Methods of decentralization Medium
A. Use open-source code with multiple independent maintainers
B. Give the company exclusive control of all code reviews
C. Allow only employees to submit software improvements
D. Keep the protocol specification on an internal server

39 A lending protocol is governed by a DAO and runs on a decentralized blockchain, but it uses price data signed by one exchange. Which component most threatens full ecosystem decentralization?

Blockchain and full ecosystem decentralization Medium
A. The single-source price oracle
B. The distributed validator set
C. The public transaction history
D. The DAO governance contract

40 A user must prove that their account balance exceeds a required amount without revealing the exact balance. Which technology is best suited to this requirement?

Innovative trends Medium
A. A proof-of-work nonce
B. A public block explorer
C. A deterministic wallet
D. A zero-knowledge proof

41 A blockchain's transaction volume and total value locked increase tenfold, while its validator count falls and one client implementation reaches 85% usage. Which conclusion is best supported?

The growth of blockchain technology Hard
A. Decentralization increased because greater value now depends on the network
B. Scalability increased without changing the network's concentration-related risks
C. Security increased because transaction volume is proportional to fault tolerance
D. Adoption increased while validator and client decentralization deteriorated

42 Which mapping most accurately identifies ideas that Bitcoin combined from earlier work?

The history of blockchain and Bitcoin Hard
A. Haber–Stornetta: proof of stake; Hashcash: replicated state; Merkle trees: network discovery
B. Haber–Stornetta: smart contracts; Hashcash: data availability; Merkle trees: leader election
C. Haber–Stornetta: timestamped hash chains; Hashcash: proof of work; Merkle trees: compact commitments
D. Haber–Stornetta: digital cash; Hashcash: Byzantine voting; Merkle trees: identity management

43 In a fully asynchronous message-passing system, a deterministic consensus protocol must tolerate one crash failure. What does the FLP result imply?

Distributed systems Hard
A. The protocol must sacrifice consistency whenever messages are reordered
B. The protocol must use at least replicas to preserve validity
C. The protocol cannot guarantee termination in every admissible execution
D. The protocol cannot preserve agreement once any process crashes

44 A Byzantine fault-tolerant protocol has replicas and requires votes to commit. Why can two conflicting commits not both be certified by honest replicas?

Distributed systems Hard
A. The two quorums intersect in exactly replicas, all of which must be honest
B. Each quorum contains every honest replica, so Byzantine votes are irrelevant
C. Each quorum contains fewer than Byzantine replicas by construction
D. The two quorums intersect in at least replicas, including an honest replica

45 During a network partition, every replica continues accepting writes and immediately acknowledges them. Under the CAP model, which property is necessarily at risk?

Distributed systems Hard
A. Partition tolerance, because replicas continue operating independently
B. Durability, because partitions necessarily erase acknowledged transactions
C. Availability, because acknowledgements occur before replicas synchronize
D. Linearizable consistency, because isolated replicas may accept conflicting writes

46 A light client knows a trusted block header containing a Merkle root for transactions. What is sufficient to verify that transaction is included in that block?

Blockchain Hard
A. The transaction and approximately sibling hashes
B. The transaction and every other transaction hash in the block
C. The transaction and the headers of all preceding blocks
D. The transaction and signatures from a majority of full nodes

47 In a simplified proof-of-work random-walk model, an attacker controls fraction of the hash power, honest miners control , and the attacker begins blocks behind. What is the probability that the attacker eventually catches up?

Blockchain Hard
A.
B.
C.
D.

48 A BFT blockchain experiences a partition in which neither side contains the quorum required to finalize a block. Both sides stop finalizing until communication recovers. Which property profile does this exhibit?

Consensus Hard
A. Liveness is preserved, while safety is temporarily lost
B. Validity is lost, while both safety and liveness remain
C. Safety is preserved, while liveness is temporarily lost
D. Finality is probabilistic, while availability remains complete

49 After withdrawing their stake, former validators use old keys to construct a conflicting proof-of-stake history beginning far in the past. Which mechanism most directly helps new nodes reject this long-range attack?

Consensus Hard
A. Weak-subjectivity checkpoints obtained from a sufficiently recent trusted source
B. Larger transaction fees paid to validators on the canonical branch
C. Merkle proofs showing that the conflicting history is internally consistent
D. Shorter block intervals that make the canonical history grow faster

50 A lending protocol executes through immutable contracts, but collateral prices come from one company-controlled server. Which assessment is most accurate?

Decentralization using blockchain Hard
A. The protocol is fully decentralized because settlement occurs on-chain
B. The protocol is trustless because contract execution is deterministic
C. The oracle is decentralized because its signed data is publicly verifiable
D. The oracle remains a trust and censorship point despite decentralized settlement

51 A protocol replaces one administrator key with a 3-of-5 multisignature. Three keys are held by employees of one company, while two are held by independent organizations. What is the resulting effective control structure?

Methods of decentralization Hard
A. Control is decentralized because five distinct public keys exist
B. The independent organizations jointly control all administrative actions
C. The company retains unilateral control through its three-key threshold
D. No participant can act unless every represented organization agrees

52 A project wants to decentralize progressively without allowing early token holders to capture permanent control. Which route best addresses this objective?

Routes to decentralization Hard
A. Issue transferable governance tokens first, then document administrator powers later
B. Delegate all upgrades to investors, then decentralize application access after adoption
C. Constrain administrator powers, diversify operations, then broaden governance participation
D. Eliminate emergency controls immediately, while keeping one operator for infrastructure

53 A censorship-resistant contract has thousands of validators, but almost all users access it through one hosted front end and one RPC provider. Which change most improves full ecosystem decentralization?

Blockchain and full ecosystem decentralization Hard
A. Increase the contract's gas limit while retaining the existing access stack
B. Increase validator rewards while retaining the hosted user interface
C. Store interface graphics on-chain while keeping one domain and RPC endpoint
D. Replicate front ends and permit users to select independent RPC providers

54 Which statement most accurately distinguishes a trust-minimized system from a system commonly described as trustless?

Pertinent terminology Hard
A. Trust-minimized systems require permission; trustless systems require no consensus rules
B. Trust-minimized systems use cryptography; trustless systems use only economic incentives
C. Trust-minimized systems reduce trusted assumptions; no deployed system removes every assumption
D. Trust-minimized systems permit forks; trustless systems guarantee irreversible execution

55 A decentralized application stores its interface under an IPFS content identifier, but only the developer's node pins the files. What does the content identifier guarantee?

Platforms for decentralization Hard
A. Anonymous retrieval, but not protection against content modification
B. Consensus on content updates, but not resistance to deletion
C. Permanent availability, but not integrity of retrieved content
D. Integrity of retrieved content, but not continued network availability

56 A validity rollup posts state roots and validity proofs to a base chain but keeps transaction data on a committee-controlled server. What is the primary limitation?

Platforms for decentralization Hard
A. The base chain cannot verify whether state transitions satisfy the rollup rules
B. The rollup cannot compress transactions because proofs require complete duplication
C. Validators must re-execute every rollup transaction before accepting each proof
D. Users may be unable to reconstruct state or exit if the committee withholds data

57 A project claims that using zero-knowledge validity proofs automatically makes all user transactions private. Why is this claim incorrect?

Innovative trends Hard
A. Zero-knowledge proofs provide confidentiality but cannot establish state correctness
B. Validity proofs can verify computation while transaction data remains publicly visible
C. Validity proofs provide privacy only when proof generation is performed on-chain
D. Zero-knowledge proofs hide signatures but necessarily reveal all account balances

58 A researcher wants to compare the economic security of two rapidly growing proof-of-stake networks. Which measure is more informative than raw total value locked?

The growth of blockchain technology Hard
A. The gross transaction count before filtering bots and internal transfers
B. The estimated cost of corrupting consensus relative to the value exposed
C. The market price of one token relative to its historical maximum
D. The number of wallet addresses created during the previous quarter

59 What was Bitcoin's key systems-level contribution to the double-spending problem in an open network?

The history of blockchain and Bitcoin Hard
A. It introduced the first cryptographic hash function resistant to all collisions
B. It made digital signatures impossible to copy between conflicting transactions
C. It combined proof of work with a network rule for selecting accumulated-work history
D. It required a trusted timestamp authority to approve the order of every payment

60 In a modular blockchain, light clients use data availability sampling against erasure-coded blocks. What can sufficiently successful random sampling establish with high probability?

Innovative trends Hard
A. Every transaction in the block was authorized by a unique human user
B. The entire block was executed correctly by every consensus participant
C. Enough block data was published to permit reconstruction by the network
D. No alternative block at the same height can ever obtain finality