Blockchain Interview Questions And Answers

Blockchain Interview Questions And Answers. Here Coding compiler sharing a list of 20 interview questions on Blockchain. These Blockchain questions were asked in various interviews conducted by top MNC companies and prepared by Blockchain experts. We are sure that these advanced Blockchain questions will help you to crack your next Blockchain job interview. All the best for your future and happy learning.

Blockchain Interview Questions

  1. What is Blockchain?
  2. What does Blockchain do?
  3. What are the features of Blockchain?
  4. Why do we need decentralized systems?
  5. Benefits of Blockchain Technology?
  6. What are the benefits of the distributed ledger?
  7. What are confirmations on the Blockchain?
  8. What is a hash on the Blockchain?
  9. What is a Blockchain client?
  10. What is a nonce in a Blockchain?
  11. What is a Node in Blockchain?
  12. What are Smart Contracts?
  13. What is a block in Blockchain?
  14. What is block time in Blockchain?
  15. What is the hard fork?
  16. What are the types of Blockchains?

Blockchain Interview Questions And Answers

1) What is Blockchain?

A) A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping.

2) What does Blockchain do?

A) Blockchain is, quite simply, a digital, decentralized ledger that keeps a record of all transactions that take place across a peer-to-peer network.

Blockchain Interview Questions # 3) What are the features of Blockchain?

A) The key features of blockchain are,

  • Distributed Database – Information stored on a blockchain exists as a shared and continually reconciled database.
  • Decentralized Systems – Decentralized systems enables users to store their assets in a network that can be accessed over the Internet.
  • Distributed Ledger – It provides information of all the digital transactions and the users who have done the digital transactions ever.
  • Safer and Secure Ecosystem – Due to its incorruptible digital ledger of economic transactions that can be programmed to record digital transactions provides safer and secure ecosystem.

4) Why do we need decentralized systems? Benefits of Blockchain Technology?

A) Decentralization benefits in various ways they are:

Entitle users: Decentralized systems enables users to keep control of all their digital transactions.

Fault tolerance: Decentralized systems helps in controlling fault tolerance because they are less likely to fail accidentally.

Durability and robustness: Blockchain doesn’t contain centralized system. It’s distributed and it’s very hard to attack and more expensive to destroy or manipulate.

Free from frauds: It’s very much tough in decentralized systems to commit frauds and scams to benefit from the system.

Faster transaction time: Blockchain and decentralized technology enable users to do transactions faster and reduce time to minutes when compared to normal bank transactions.

Lower cost for transactions: Decentralized systems like Blockchain get rid of third-party intermediaries and transaction costs, and service charger for exchanging assets. This greatly reduces the transaction fees and benefits users.

Provides lucidity: Blockchain is very transparent technology, the data can be publicly viewable, and all transactions can’t be altered or deleted.

Data authenticity: In a decentralized system like blockchain data is complete, consistent, timely, accurate, and widely available over the network.

Blockchain Interview Questions # 5) What are the benefits of the distributed ledger?

A) As we know Blockchain is a public ledger and it contains the information like all the participants and all the digital transactions that have ever been executed. There are many advantages of public ledger, they are:

Fraud prevention: In Blockchain data is decentralized and ledger data distributed across the multiple nodes. If there is any unauthorized changes to ledger data, Blockchain technology responds very well and prevents it. Ledger data can’t be changed and it prevents any kind of frauds.

Get rid of multiple ledgers: Blockchain distributed ledger technology helps organizations in maintaining all their transaction data into a single ledger, it reduces the complications of having multiple ledgers.

Ownership Assurance: Distributed ledgers can enable new ways of assuring ownership to the digital assets, goods and intellectual property.

Eliminates Mediatory: Blockchain eliminates mediatory and reduces the transaction time for settlements with keep track of everything in ledger in a secured way.

Interview Questions on Blockchain

Blockchain Interview Questions # 6) What are confirmations on the Blockchain?

A) Bitcoin Confirmations. Roughly every ten minutes, a new block is created and added to the blockchain through the mining process. This block verifies and records any new transactions. The transactions are then said to have been confirmed by the Bitcoin network.

Blockchain Interview Questions # 7) What is a hash on the Blockchain?

A) Signatures are a fundamental part of blockchains. Similar to signing a check, cryptographic signatures determine which transactions are valid. Signatures are generated from a hash of data to be signed, and a private key. Transaction hashes are highly visible in a blockchain.

Blockchain Interview Questions # 8) What is a Blockchain client?

A) A Blockchain client is referred to any node able to parse and verify the blockchain, its smart contracts and everything related. It also allows you/provides interfaces to create transactions and mine blocks which is the key for any blockchain interaction.

Blockchain Interview Questions # 9) What is a nonce in a Blockchain?

A) In cryptography, a nonce is an arbitrary number that can only be used once. It is similar in spirit to a nonce word, hence the name. It is often a random or pseudo-random number issued in an authentication protocol to ensure that old communications cannot be reused in replay attacks.

Blockchain Interview Questions # 10) What is a Node in Blockchain?

A) In Blockchain, Node is a computer connected to the blockchain network using a client that performs the task of validating and relaying transactions) gets a copy of the blockchain, which gets downloaded automatically upon joining the blockchain network.

The Best Blockchain Interview Questions

Blockchain Interview Questions # 11) What are Smart Contracts?

A) Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

Blockchain Interview Questions # 12) What is a block in Blockchain?

A) Blocks hold batches of valid transactions that are hashed and encoded into a Merkle tree. Each block includes the cryptographic hash of the prior block in the blockchain, linking the two. The linked blocks form a chain. This iterative process confirms the integrity of the previous block, all the way back to the original genesis block.

Blockchain Interview Questions # 13) What is block time in Blockchain?

A) The block time is the average time it takes for the network to generate one extra block in the blockchain.[38] Some blockchains create a new block as frequently as every five seconds. By the time of block completion, the included data becomes verifiable.

Blockchain Interview Questions # 14) What is the hard fork?

A) A hard fork is a rule change such that the software validating according to the old rules will see the blocks produced according to the new rules as invalid. In case of a hard fork, all nodes meant to work in accordance with the new rules need to upgrade their software.

Blockchain Interview Questions # 15) What are the types of Blockchains?

A) There are three types of Blockchain networks are available, they are, Public Blockchains, Private Blockchains and Consortium Blockchains.

Essential Blockchain Interview Questions

Blockchain Interview Questions # 16) Explain about Public Blockchains?

A) A public blockchain has absolutely no access restrictions. Anyone with an internet connection can send transactions to it as well as become a validator

Blockchain Interview Questions # 17) Explain Private blockchains?

A) A private blockchain is a permission. One cannot join it unless invited by the network administrators. Participant and validator access is restricted.

Blockchain Interview Questions # 18) Explain Consortium Blockchains?

A) A consortium blockchain is often said to be semi-decentralized. It, too, is permission but instead of a single organization controlling it, a number of companies might each operate a node on such a network.

Advanced Blockchain Interview Questions For Experienced

19) What are the different types of records in Blockchain technology?

A) There are two different types of records available in Blockchain, they are,

  1. Block Records
  2. Transactional Records

20) What is the difference between the distributed database and traditional database?

A) There are many differences between distributed database and traditional database, they are,

Operations in Distributed Database (Blockchain) and Traditional Database

Blockchain Distributed Database – In blockchain, we can store data but there is no chance for edit and delete.
Traditional Database – In the traditional database, we can perform CRUD operations.

Replication in Blockchain Vs Traditional Database

Blockchain – There is a full replication of block on every peer of the blockchain.
Traditional – Here we can have master-slave multi-master.

The consensus in Blockchain Vs Traditional Database

Blockchain – In blockchain, most of the peers agree on the outcome of transactions.
Traditional – Here in the traditional database, distributed transactions can happen.


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