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EC-COUNCIL EC-Council Blockchain Fintech CertificationB|FC exam Sample Questions (Q50-Q55):
NEW QUESTION # 50
The right to publish a new block is determined by ________
- A. Nod's current investment in the blockchain
- B. Nodes proof of work
- C. Position in the blockchain
- D. Transaction history
Answer: B
Explanation:
The right to publish a new block is commonly determined byProof of Work (PoW)in blockchain networks like Bitcoin. In PoW, network nodes, known as miners, compete to solve a cryptographic puzzle. The first node to successfully solve it gains the right to add a new block to the blockchain.
Key Details:
* Proof of Work Mechanism: Miners perform computational work to solve a hash puzzle, which proves that they have expended effort. This process ensures that blocks are added in a way that is resistant to tampering and fraud.
* Reward System: The miner who successfully publishes a new block receives a block reward (in Bitcoin, for example), incentivizing miners to participate in maintaining the blockchain network's security.
* Alternative Mechanisms: Other consensus mechanisms, such as Proof of Stake (PoS), do not rely on computational work but rather on a node's stake or investment in the blockchain. However, in the context of traditional blockchain models like Bitcoin, PoW is the primary method for determining block publication rights.
Therefore,A. Nodes proof of workis the correct answer, as PoW is the standard method by which nodes earn the right to publish new blocks in many blockchain networks.
NEW QUESTION # 51
What is the primary benefit to patients of blockchain in the healthcare are industry?
- A. Reduced costs
- B. Total control over personal health records
- C. Improved medical outcomes
- D. Reduced wait times
Answer: B
Explanation:
The primary benefit of blockchain in the healthcare industry for patients istotal control over personal health records. Blockchain enables secure, decentralized storage of health data, allowing patients to control access to their information and share it with healthcare providers as needed.
Key Details:
* Data Ownership and Privacy: Blockchain gives patients the ability to own and manage their health records. They can grant or revoke access to different healthcare providers, ensuring that only authorized personnel have access to their data.
* Improved Security: Health records stored on a blockchain are encrypted and decentralized, making them resistant to tampering and unauthorized access. This enhances patient privacy and reduces the risk of data breaches.
* Interoperability and Accessibility: Blockchain facilitates seamless sharing of health records across different healthcare providers and systems, improving coordination and care continuity without compromising data integrity.
Therefore,B. Total control over personal health recordsis the correct answer, as it represents a significant advantage for patients in managing their healthcare information securely.
NEW QUESTION # 52
When you purchase bitcoins, how are they stored?
- A. In an exchange
- B. In a bitcoin wallet
- C. As a file
- D. As a hash
Answer: B
Explanation:
When you purchase bitcoins, they are storedin a bitcoin wallet. A bitcoin wallet is a digital tool that stores the cryptographic keys necessary to access and manage your Bitcoin holdings. It does not store physical bitcoins but instead holds the keys to access them on the blockchain.
Key Details:
* Functionality of Bitcoin Wallets: Bitcoin wallets manage private and public keys. The private key is required to sign transactions, while the public key generates addresses that allow for receiving bitcoins.
Without access to the private key, the user cannot spend or transfer their bitcoins.
* Types of Bitcoin Wallets: Wallets can be software-based (such as mobile or desktop apps) or hardware- based (physical devices like a Ledger or Trezor). There are also online (custodial) wallets provided by exchanges, but these still technically store bitcoins within a wallet.
* Not a Physical Storage: Bitcoins do not exist as physical files or objects. The wallet is an interface that interacts with the blockchain, where the actual records of ownership are maintained.
Thus,D. In a bitcoin walletis the correct answer, as bitcoins are stored in wallets that hold the keys necessary to interact with the Bitcoin blockchain.
NEW QUESTION # 53
The financial Action Task force defines virtual asset providers as companies that (choose two):
- A. Sell products for virtual currency
- B. Exchange virtual assets for fiat currency
- C. Transfer virtual assets
- D. Purchase virtual currency
Answer: B,C
Explanation:
TheFinancial Action Task Force (FATF)definesVirtual Asset Service Providers (VASPs)in its guidelines to include entities that engage in theexchange of virtual assets for fiat currencyand thetransfer of virtual assets. This categorization is part of the FATF's efforts to regulate and monitor the flow of virtual assets to mitigate risks associated with illicit activities.
Key Details:
* Exchange and Conversion Services: FATF recognizes companies that offer exchange services between virtual assets and fiat currencies as VASPs. These services are critical for converting virtual assets into forms that can be readily used in traditional markets.
* Transfer Services: VASPs that facilitate the transfer of virtual assets are also within the FATF's regulatory scope. This includes services that manage, transfer, or act as intermediaries in the movement of virtual assets between users, ensuring these transactions are conducted transparently and within regulatory frameworks.
Therefore,C. Exchange virtual assets for fiat currencyandD. Transfer virtual assetsare the correct answers, as they align with the FATF's definition of VASPs.
NEW QUESTION # 54
_________change the blockchain layout from a linearly sequential model.
- A. Tree chains
- B. Sub chains
- C. Fork chains
- D. Side chains
Answer: A
Explanation:
Tree Chainsmodify the standard blockchain structure from a linear sequence to a tree-like structure, where blocks can have multiple branches instead of forming a single sequential chain. This structure can improve scalability and enable parallel processing, as multiple chains can be validated simultaneously.
Key Details:
* Tree Structure: In tree chains, blocks can have multiple child blocks, which allows transactions to be processed across several branches concurrently. This reduces bottlenecks associated with linear block validation and enhances throughput.
* Benefits Over Linear Chains: Traditional blockchain models process blocks in a strict sequence. Tree chains allow for more flexibility and higher transaction throughput, as multiple blocks can be validated simultaneously across different branches.
* Use Cases: This structure is advantageous for complex applications that require parallel transaction processing, such as large-scale blockchain networks or systems needing high transaction speeds.
Thus,D. Tree chainsis the correct answer, as it refers to the blockchain model that diverges from a linear structure.
NEW QUESTION # 55
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