Blockchain

Question 1

What is meant by Blockchain?

Answer 1

A digital ledger of transactions that is shared across the entire network of computers in the particular blockchain.

Question 2

What is the 1st step to create Blockchain Transactions?

Answer 2

A user raises a transaction

Question 3

What is the 2nd step to create Blockchain Transactions?

Answer 3

A block is created to digitally represent the transaction

Question 4

What is the 3rd step to create Blockchain Transactions?

Answer 4

The block is distributed to every computer in the network.

Question 5

What is the 4th step to create Blockchain Transactions?

Answer 5

Every computer validates the transaction to prove it is authentic

Question 6

What is the 5th step to create Blockchain Transactions?

Answer 6

The now authenticated and complete block is added to the chain.

Question 7

What is a feature which help Blockchain protect against hacking?

Answer 7

Each transaction is shared across the internet by a number of users.

Question 8

What is a 2nd feature which helps Blockchain protect against hacking?

Answer 8

All the details of the transaction are recorded by all the users in the blockchain.

Question 9

What is a 3rd feature which helps Blockchain protect against hacking?

Answer 9

The ledgers of all the users in the blockchain will be updated for the transactions, but only when they have all agreed it is consistent.

Question 10

What is a 4th feature which helps Blockchain protect against hacking?

Answer 10

When a new block is added to the blockchain, it is linked to the previous block using a CRYPTOGRAPHIC HASH that is generated from the previous block. This encrypts the data.

Question 11

Why is Blockchain so useful to accounting systems?

Answer 11

It provides certainty about asset ownership.

It maintains ledgers of accurate information

It reduces costs and improves efficiency.