ACC308 Blockchain Technology || Well Elaborated Answers
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Course
Blockchain
Institution
Blockchain
What is Blockchain? - Correct Answer -Transformative technology
-Blockchain originated as the technology underlying the digital currency Bitcoin.
-Trust is at the heart of commerce. Blockchain delivers the potential for a powerful new form of transactional trust.
-Blockchain could impact many ...
ACC308 Blockchain Technology || Well Elaborated Answers
What is Blockchain? - Correct Answer -Transformative technology
-Blockchain originated as the technology underlying the digital currency Bitcoin.
-Trust is at the heart of commerce. Blockchain delivers the potential for a powerful new form of
transactional trust.
-Blockchain could impact many facets of information management from the way transactions are
processed and recorded to the way they are reported and verified.
What is Blockchain? Cont. - Correct Answer Blockchain is a shared or "distributed" digital ledger of
transactions over a network of participating computers; transactions are designed to create records that
are secure, reliable, transparent, and accessible.
Peer-to-peer communications among the participants
Need for management of the network by a central third party is eliminated
How Blockchain Works - Correct Answer Computers participating in a blockchain use an automated
process to validate the format of the transaction record to be included in the next "block;" Once this
"consensus" is reached, the information is recorded in a block.
Not just information but anything of value - money, titles, identities, votes - can be moved, stored, and
managed securely and privately. Trust is established through mass collaboration and clever code rather
than by powerful intermediaries like governments and banks.
Built-in Security - Correct Answer Encryption Blockchain technology uses public- and private-key
cryptography to sign transactions.
All blocks are timestamped, sequenced chronologically can be used to prove the existence of records
Irrevocability: once included in blocks, transactions are permanent records; more secure than traditional
centralized databases; audit trail is automatically created. Access to a complete record of all transactions.
, Types of Blockchain - Correct Answer Public Blockchain: permissionless. Anyone can join the blockchain
network, this means they can read, write, or participate with a public blockchain. Public blockchains are
decentralized and no one has control over the network and they are secure in that the data cannot be
changed once validated on the blockchain.
Private Blockchain: permissioned. Permissioned network place restrictions on who is allowed to
participate in the network and in what transactions.
Consortium blockchain implementations can include the membership of an entire industry. For example,
several global banks have joined a consortium of financial institutions to investigate blockchain
technology.
Transaction Processing in the Blockchain - Correct Answer 1. Transactions are initiated
2. Details of pending transactions are distributed throughout the network.
3. Details of pending transactions are transcribed into a block candidate. The new block cryptographically
references the last block in the chain.
4. The block is distributed throughout the network and the formats of the transaction record are
validated. This is referred to as "consensus."
5. Transactions are executed and the block is added to the blockchain. Each computer in the network
carries the full blockchain ledger.
Smart Contract - Correct Answer -Smart contracts are agreements written in computer code that do not
need human intervention to be executed.
-A smart contract is software code representing business logic.
-Blockchain technology supports and executes smart contracts.
-Smart-contract programs can be designed to communicate with other smart contracts and send data
among themselves.
-Smart-contract technology can speed up business processes, reduce operational error, and improve cost
efficiency.
Hypothetical example: smart contract - Correct Answer A simple apartment rental agreement between
two parties:
-A smart contract could be programmed and deployed to a blockchain to accept a digital currency
payment (e.g. Bitcoin) from the renter (in a way similar to a series of post-dated checks) and
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