How blockchain works, and why it is so important

Which of these sentences best describes blockchain?

It is a chain of contracts that is publicly available

It is a ledger

It is a set of public records held online

It is a continuously growing list of records

When was blockchain invented and why?

In 2006 during the development of cryptocurrency

In 2006 as part of the development of Bitcoin

In 2008 as part of the development of Bitcoin

In 2008 by the US government

Which of these is not a benefit of a distributed ledger?

Higher data quality than usual

More private than usual

More trustworthy than usual

Lower likelihood of failure than usual

Why is the ‘common knowledge’ effect of blockchain so valuable?

Because it prevents participants claiming they have not seen information

Because it is decentralised

Because it means everyone experiences the same level of trust

Because it means participants are less likely to lie

How might blockchain help two IT systems to interact with one another?

It can reconcile the data instantly

Different systems can write to one another and the data can automatically be aggregated

It provides a substitute system

It can act as a shared ‘blackboard’

What does permissionless platform mean in the context of blockchain?

Because big companies can be held to account about the detail of transactions

It describes an open blockchain that anyone may join or leave at any time - but not all blockchains are open

Because limitless people can perform checks on the information of other users

Because it means there is no entry or exit charge

Which of these four organisations is likely to use blockchain last?

Accountancy firms

Management consultancy firms

Law firms

Healthcare firms

Why might blockchain end up being more user-friendly than traditional ownership records?

Because it is cheaper

Because it is far less complex than traditional records - everything is held in the same format

Because it does not require physical access to view

Because it cannot be contravened so there will be no dispute over ownership any more

Why might ‘permissionlessness’ be positive?

community of participants Because big companies can be held to account about the detail of transactions

Because it means there is no entry or exit charge

Because all transactions within that open blockchain are witnessed by the entire community of participants

Because limitless people can perform checks on other users’ information

Which of these is not a valid concern about blockchain?

The amount of blockchain available for use will run out because it has all been ‘mined’

There will be future challenges for data storage since blockchain is so big

There will be future challenges from hackers as more people begin to understand the blockchain

There will be a great deal of investment required in training people how to use blockchain

How blockchain works, and why it is so important

Which of these sentences best describes blockchain?

When was blockchain invented and why?

Which of these is not a benefit of a distributed ledger?

Why is the ‘common knowledge’ effect of blockchain so valuable?

How might blockchain help two IT systems to interact with one another?

What does permissionless platform mean in the context of blockchain?

Which of these four organisations is likely to use blockchain last?

Why might blockchain end up being more user-friendly than traditional ownership records?

Why might ‘permissionlessness’ be positive?

Which of these is not a valid concern about blockchain?

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