Blockchain Technology Study Guide

Blockchain Technology Study Guide

Short Answer Questions

What is a blockchain? How is it usually managed?

A blockchain is a growing list of records (called blocks) that are linked and protected in a secure cryptographic way. It is usually managed by a peer-to-peer network that collectively adheres to a protocol for communicating between nodes and validating new blocks.

What information does a block in a blockchain usually contain?

Blocks in a blockchain usually contain three pieces of information: 1) transaction information, such as date, time, and transaction amount; 2) information about the parties involved in the transaction, such as the identities of the parties (using a unique "digital signature" instead of real names); 3) information that distinguishes blocks, each of which stores a unique code called a "hash".

Briefly describe the process by which blocks are added to a blockchain.

First, a transaction occurs or data to be stored in a blockchain is generated. Then, the transaction must be verified by the blockchain's network of computers. Once the data is verified, it is stored in a block. The block is given a unique hash value and is added to the end of the blockchain.

How does the blockchain ensure security and trust?

Blockchain ensures security and trust by: 1) New blocks are stored in a linear manner and cannot be tampered with; 2) The use of hash functions makes it difficult to tamper with the content of the block, so that any change to the content of the block will result in a change in the hash value; 3) Consensus mechanisms such as proof of work require users to "prove" themselves in order to participate in the blockchain network, thereby improving security.

What is proof of work (PoW)? How does it work?

Proof of work is a consensus mechanism that requires computers to "prove" that they have completed "work" by solving complex computational mathematical problems. Computers that solve the problem are eligible to add a block to the blockchain, a process called "mining".

What role do public and private keys play in blockchain?

Public and private keys are used to create hash values. Public keys are similar to school lockers, while private keys are similar to locker passwords. Anyone can put information into the blockchain through the public key, but only those with the private key can access and manage the information.

What are the limitations of blockchain technology?

The limitations of traditional blockchain technology include: 1) As the length of the blockchain increases, the time and computing power required to process the block also increase; 2) The linear structure of the blockchain limits the ability to store dynamic information.

What is a smartblock? How is it different from a regular block?

A smartblock is a special block that can store and execute code, similar to a smart contract. Unlike regular blocks that can only store data, smartblocks can automatically perform operations based on predefined rules.

What is blockchain sharding? What problem does it try to solve?

Blockchain sharding is a technology that connects multiple blockchains together, using smartblocks as connection points to form a blockchain network. It attempts to solve the problems caused by the linear structure of traditional blockchains and improve data processing efficiency and scalability.

List the application scenarios of blockchain and blockchain sharding technology.

Application scenarios of blockchain and blockchain sharding include: 1) Supply chain management, tracking and recording the source and transportation process of products; 2) Digital identity verification, creating a secure and reliable digital identity system; 3) Copyright protection, protecting the intellectual property rights of creators; 4) Voting system, building a transparent and fair voting mechanism.

Essay question

Discuss how blockchain technology changes supply chain management.

Analyze the advantages and challenges of blockchain in digital identity authentication.

Explain how smartblocks and blockchain sharding can improve the scalability of blockchain.

Compare and contrast the two consensus mechanisms of Proof of Work (PoW) and Proof of Stake (PoS).

Explore the potential impact of blockchain technology in the future society.

Key Terms

Term Definitions Blockchain A growing list of records (called blocks) that are linked and protected in a secure cryptographic way. Block A single unit of record in a blockchain, containing transaction information, timestamp, and hash value. Hash A one-way function that converts data of any length into a fixed-length string, used to ensure the integrity of blockchain data. Smartblock A special block that can store and execute code, similar to a smart contract. Blockstrand A technology that connects multiple blockchains together, using smartblocks as connection points, to form a blockchain network. Consensus A mechanism that ensures that all participants agree on the state of a blockchain, such as Proof of Work (PoW) and Proof of Stake (PoS). Proof of Work is a consensus mechanism that requires computers to solve complex computational problems to gain the right to add blocks. Public Key is a key used to encrypt information and can be shared publicly. Private Key is a key used to decrypt information and must be kept secret. Digital Signature uses a private key to encrypt data to prove the ownership and integrity of the data.