Introduction
With the advent of technology and the internet, people are adapting to more comfortable and convenient means to make their lives easy. One of the many technologies that have garnered immense success in the recent past is Blockchain. Here are some frequently asked Blockchain Interview Questions and Answers. Blockchain was introduced in the market with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed Blockchain. In the simplest terms, a Blockchain can be described as a data structure that holds transactional records while ensuring security, transparency, and decentralization. Once information is stored on a blockchain, it is extremely difficult to change or alter it.
Each transaction on a blockchain is secured with a digital signature that proves its authenticity.
Blockchain technology allows all the network participants to reach an agreement, commonly known as consensus. All the data stored on a blockchain is recorded digitally and has a common history that is available for all the network participants. This way, the chances of any fraudulent activity or duplication of transactions are eliminated without the need for a third party.
Best of Blockchain Interview Questions and Answers
1.How does blockchain store information ?
As a database, a blockchain stores information electronically in digital format.
2.What aspect garnered success in blockchain ?
The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
3.What distinguishes a typical database from a blockchain ?
The key difference lies in how the data is structured. A blockchain collects information in groups known as blocks whereas a database structures its data into tables.
4.What’s the other name of blockchains ?
distributed ledger technology (DLT)
5.Why do we call blockchains as a distributed ledger technology (DLT) ?
The reason why we do so is because a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted or destroyed.
6.What was the first widespread application of blockchain ?
The blockchain concept predated its first widespread application in use: bitcoin in 2009.
7.Mention a few platforms that make wide use of blockchains
Cryptocurrency, decentralised finance (DeFi) applications, non-fungible tokens (NFTs) and smart contracts
8.Cite the key feature of cryptocurrency functioning ?
Absence of any internal or external administrator
9.What is the term used for a blockchain splits ?
A fork
10.Expand P2P
peer to peer
11.What are the types of blockchain networks ?
public blockchain network, private blockchain network, consortium blockchain network, hybrid blockchain network
12.What are components of a blockchain network?
Node, ledger, wallet, nonce and hash
13.Expand and explain NONCE
A nonce is an abbreviation for “number only used once”, which is a number added to a hashed or encrypted block in a blockchain.
