Blockchain CBBF 1 Flashcards
What are the core principles of Blockchain?
- Security
- Immutability
- Trustless
- Distributed ledger
- Group consensus
- Decentralised
What are the 4 primary functions of a normal dB?
CRUD functions
- Create
- Read
- Update
- Delete
Which two functions normally part of a normal DB don’t we have in blockchain?
Update and delete
This is what makes blockchain immutable.
What are the two types of assets?
Tangible - Car, House
Intangible - Intellectual Property (IP), Reward Points
Which 3 pre-existing technologies did blockchain draw on?
Ledger
Cryptography
Computer networking (p2p)
What is the advantage of distributed computing in the developing world?
High fault tolerance.
When did triple entry account appear?
2009 when blockchain emerged (not entirely true, Triple entry accounting was invented by professor Yuji Ijiria and is not related to blockchain)
- Debits
- Credits
- Link to every previous transaction on the book.
(an immutable link to all last debits and credits)
What are the blockchain rules?
- Data is immutable (but changed by issuing an offsetting transaction)
- Have to prove it hasn’t be tampered with.
- All nodes have to agree.
How big a majority is needed to get a consensus? (In %)
51% or more
What is blockchain primarily used for today?
To record the transactions of monetary assets.
But:
It could be used for many other non-monitory items an event tracking system.
What are Smart Contracts?
Code that we can be written and published to the blockchain and executed any time a certain event is recorded on the blockchain.
It enables us to take action on events which means we can create:
Workflow platform
Business process automation solution
What is consensus?
All the nodes in the blockchain comparing their copy of the ledger and decided which version the majority agree on.
When did Satishi Nakamoto publish the white paper for blockchain?
2008
What date did Ethereum and Hyperledger go live?
2015
Blockchain is primarily defined as a shared ………… ledger.
Immutable
Name the technologies used to create blockchain (3)
1) ledger
2) cryptography
3) Computer networking technology
Blockchain can best be described as a …………. ledger.
Triple
Nodes running on a blockchain must have ………….. on ALL data stored.
Consensus
What kind of data can be stored on a blockchain?
Most things:
E.g.
Medical records
Ownership of tangible and intangible assets
Training certificates
…………… running on a blockchain allow actions to be taken in events/transactions.
Smart Contracts
Data CANNOT be changed once it is committed to a blockchain? (True/False)
True
The white paper that was released outlining Bitcoin was created by ………..
Satoshi Nakamoto
What year was the first Bitcoin created?
2009
When blockchain was new 6 years it was only a way to ……….and ………. data.
Record
Track
Ethereum allowed blockchain the ability to write …………….
Turing complete, dApps
What is used to pay for transaction costs on the Ethereum blockchain?
Gas
What is the stable and fixed cost method to pay for transactions on a platform where cryptocurrency can be volatile?
Gas
What is the main difference between Bitcoin script and the EVM?
EVM is Turning complete.
Bitcoin can process on average …… transactions per second.
Ethereum can process on average…… transactions per second.
7
15
If processing speed/performance is your primary consideration for an app ………. might not be the best choice.
Blockchain
Where do Smart Contracts live?
On the blockchain
Which languages can you use for smart contracts?
C derivatives
Python
Nettherum - Using .net
What is the maximum number of Ether that will go into supply?
Around 90 million .
EVM run just like a ………. on a ………..
Process
Computer/server
…….. is the unit in which EVM resource usage is measured.
gas
If the cost of a transaction is twice as much next week as it was last week, people won’t want to use it. This is why gas is ………. from Ether, so that the fiat cost remains stable over time.
Decoupled.
Has is gas price calculated?
Transaction
Sum of functions used in your Smart Contract (each of which has a different cost)
Sum of data
Fixed cost + a variable cost
What do you have to do to start a private Ethereum network?
Launch an Ethereum network and give it a unique network ID
Ethereum provides a decentralised ………….. virtual machine, which can execute computer programs using a global network of nodes.
Turing-complete
Smart contracts are ………..
Computer code
Smart contracts ………. rules and perform ………….. actions.
Enforce
Negotiated
…….. is the unit in which Ethereum Virtual Machine (EVM) resource usage is measured.
Gas
More than …….. of the Fortune 500 businesses are considering blockchain technologies.
Half
Blockchain is sometimes referred to as, or as a significant component of ……..
Web 3.0
Blockchain transcends all physical and geographical barriers and uses ………. and. ………. to enable transactions globally.
Maths
Cryptography
The uniqueness of blockchain lies in its capacity to store and retain …………. transactional history, so that chances of fraud, hacking and third party interference are greatly reduced.
Person to person
Blockchain investments are extending to the. ……… countries and. ……….. areas of the world quickly, providing a way to do personal business as well as commerce.
Underdeveloped
Unbanked.
Describe Web 1.0
A way to distribute content accross the world. Democracising content distribution without an intermediary.
Describe Web 2.0
Access to people, social media we can reach out to people everywhere.
Two way access. Removal of intermediaries to people you want to access.
Describe Web 3.0
Remove intermediaries to provide access to financial services.
Web of value, communication, programmable money.
IOT
Name some new blockchain networks
Dfinity IOTA - (tangle) HashGraph NEO Lightening Network - (offchain) EOS
Internet 1.0 is considered to be the internet of ……………
Static information
Internet 2.0 brought us ……..
Social engagement
Internet 3.0 brought us the internet of ………..
Value
Name the top 5 blockchain platforms for enterprises
Ethereum Hyperledger fabric R3 Corda Ripple Quorum
Name two blockchain platforms, who’s focus is the financial services industry.
R3 Corda
Ripple
Which two of the top 5 blockchain platforms have their own cryptocurrency?
Ethereum
Ripple
What is the first question to ask when assessing whether a blockchain solution is suitable?
“Can a traditional database meet your needs?”
If so, you DO NOT need blockchain.
Which questions you should you ask to decide if an asset is suitable for tokenisation (3)
1) Can I credibly say that rights to the asset I am tokenizing can be fully and exclusively captured — and transferred — on the blockchain?
2) Is this a class of asset that I want people to be able to transfer?
3) Is implementing prices going to support or detract from the goal of my platform?
Define “trustless” in a blockchain context
Anonymous transactions ensuring a high level of security, with the blockchain acting as an intermediary.
What problem did Satoshi solve?
Double spending.
Describe Bitcoin in 4 words
- Digital
- Decentralized
- Dis-Intermediated
- Trustless
