Blockchain Basics: What is Blockchain, How It Works, and How It Differs from Databases

Test Your Knowledge

1. What is one of the key features of blockchain technology?

A) Centralization

B) Immutability

C) Low security

D) Fast processing

2. How does blockchain ensure data security and transparency?

A) By relying on a central authority for validation

B) Through cryptographic techniques

C) By allowing easy updates to data

D) Through consensus mechanisms only

3. What is a primary difference between blockchain and traditional databases?

A) Blockchain stores data in tables while traditional databases use blocks

B) Blockchain is centralized, while traditional databases are decentralized

C) Blockchain uses consensus mechanisms for validation, while traditional databases rely on a central authority

D) Blockchain allows for easy deletion of data, while traditional databases do not