Top Answers to Blockchain Interview Questions

1. Compare Blockchain with relational database

Criteria Blockchain RDBMS
Unit of data Block Table
Single point of failure Does not exist Exists
Centralized control No Yes
Editing/deleting data Not possible Possible
2. What is Blockchain Technology?
The blockchain is an incorruptible digital ledger of economic transactions that can
be programmed to record not just financial transactions but virtually everything of
value.

3. What do you mean by blocks in the Blockchain technology?

A block in the Blockcahin is nothing but just a list of records. When these lists
are joined with each other, they are known as Blockchain. For e.g. � an
organization has 100 ledger books the combination of which is known as Blockchain
and a single ledger would be known as a block.

Video
Check this video on Blockchain by intellipaat:

4. How does a block is recognized in the Blockchain approach?

Every block in this online ledger mainly consists of a hash pointer which acts as a
link to the block which is previous to it, transaction data and in fact a stamp of
time.

5. Is there any network specific conditions for using Blockchain technology in an

organization?
No, there is no such specific condition on using it. However, the network must be a
peer-to-peer network under the worried protocols. It really validates the new block
simply and helps enterprises to keep up the pace in this matter without
capitalizing in third-party applications.

6. Is it possible to modify the data once it is written in a block?

No, it is not possible to do so. In case any customization is required, the
organization simply has to remove the information from all other blocks too. It is
because of no other reason than this, data must be given the extreme care of while
using this method.

7. What type of records can be kept in Blockchain? Is there any restriction on

same?
There is no restriction of keeping records in the Blockchain approach. It must be
noted that the record keeping is not just limited to these applications only.
The common types of records that can be kept on them are:
1. Records of medical transactions
2. Identity management
3. Transaction processing
4. Events related to organizations,
5. Management activities
6. Documentation

8. What is encryption? What is its role in Blockchain?

Encryption is mainly a method that helps organizations to keep their data secure.
In this method, the data is encoded up to some extent before it is sent out of a
network by the sender. The only receiver can know how to decode the same. In
Blockchain, this method is useful because it simply adds more to the overall
security and validity of blocks and help to keep them secure.

9. What exactly do you know about the security of a block?

A block cannot be customized by all the users on a network. Therefore it provides
an excellent level of security. Additionally, every block is secured using
cryptography that is another vote in this matter. Thus one needs not to worry about
the security of data that is present in a block.

Learn Blockchain from Experts! Enrol Today

10. Why Blockchain is a trusted approach?

Blockchain can be trusted due to several reasons. The very first thing is its
compatibility with other business applications because of its open-source nature.
Second one is its security. As it was intended for online transactions, the
developers have paid special attention in keeping up the pace when it comes to its
security. It really doesn�t matter what type of business one owns, Blockchain can
easily be considered.

11. What is Secret Sharing? Does it have any benefit in Blockchain technology?
It is a well-understood that security matters a lot in digital transactions. Secret
sharing in Blockchain technology is an approach that divides secret or personal
information into different units and sent them to the users on the network. The
original information can only be combined when a member to whom a share of the
secret is allocated agree to combine them together with others. There are several
security-related advantages it can offer in Blockchain technology.

12. Why Blockchain is a trusted approach?

Blockchain can be trusted due to several reasons. The very first thing is its
compatibility with other business applications because of its open-source nature.
Second one is its security. As it was intended for online transactions, the
developers have paid special attention in keeping up the pace when it comes to its
security. It really doesn�t matter what type of business one owns, Blockchain can
easily be considered.

13. What is Blockchain Durability and robustness?

Blockchain technology is like the internet in that it has a built-in robustness. By
storing blocks of information that are identical across its network, the blockchain
cannot:
1. Be controlled by any single entity.
2. Has no single point of failure.
Bitcoin was invented in 2008. Since that time, the Bitcoin blockchain has operated
without significant disruption. (To date, any of problems associated with Bitcoin
have been due to hacking or mismanagement. In other words, these problems come from
bad intention and human error, not flaws in the underlying concepts.)
The internet itself has proven to be durable for almost 30 years. It�s a track
record that bodes well for blockchain technology as it continues to be developed

14. What is Transparent and incorruptible in blockchain?

The blockchain network lives in a state of consensus, one that automatically checks
in with itself every ten minutes. A kind of self-auditing ecosystem of a digital
value, the network reconciles every transaction that happens in ten-minute
intervals. Each group of these transactions is referred to as a �block�. Two
important properties result from this:
Transparency data is embedded within the network as a whole, by definition it is
public. It cannot be corrupted altering any unit of information on the blockchain
would mean using a huge amount of computing power to override the entire network.

15. How does Bitcoin use Blockchain?

A transaction is a transfer of value between Bitcoin wallets that gets included in
the blockchain. Bitcoin wallets keep a secret piece of data called a private key or
seed, which is used to sign transactions, providing a mathematical proof that they
have come from the owner of the wallet.
16. Is Blockchain an incorruptible ledger?
Blockchain ledger cannot be corrupted as per the developer�s claim.

17. What are the business benefits of blockchain?

Blockchain consensus mechanisms provide the benefits of a consolidated, consistent
dataset with reduced errors, near-real-time reference data, and the flexibility for
participants to change the descriptions of the assets they own.

Because no one participating member owns the source of origin for information
contained in the shared ledger, blockchain technologies lead to increased trust and
integrity in the flow of transaction information among the participating members.

Immutability mechanisms of blockchain technologies lead to lowered cost of audit

and regulatory compliance with improved transparency. And because contracts being
executed on business networks using blockchain technologies are smart, automated,
and final, businesses benefit from increased speed of execution, reduced costs, and
less risk, all of which enables businesses to build new revenue streams to interact
with clients.

18. What are blockchain requirements?

Blockchain is a truly disruptive technology that can transform business networks.
We also believe that this innovation has to happen in the open, collaborating with
other technology companies and industries. To this end, IBM continues to contribute
code to the Hyperledger Project.

From IBM�s perspective, industrial-grade blockchain technologies have the following

characteristics:

A shared, permissioned ledger is the append-only system of record (SOR) and single
source of truth. It is visible to all participating members of the business
network.
A consensus protocol agreed to by all participating members of the business network
ensures that the ledger is updated only with network-verified transactions.
Cryptography ensures tamper-proof security, authentication, and integrity of
transactions.
Smart contracts encapsulate participant terms of agreements for the business that
takes place on the network; they are stored on the validating nodes in the
blockchain and triggered by transactions.