We all know how popular Blockchain is? It has disrupted the financial industry with its impeccable features. Bitcoin, Etherium, ripple, and a lot of other digital currencies have leveraged their potentiality by using this technology. Investors across the world are started investing in this futuristic technology. And it has been entering into many industries to create a revolution.
If you are in search of blockchain interview questions you have landed at the right place. In this blog, we are going to cover the most frequently asked questions in a blockchain interview. We have prepared all these questions based on the expert’s opinion. Without wasting much time, let us plunge into the topic.
To give clarity about blockchain interview questions we have divided these interview question s into three categories. Which are,
- Basic Blockchain interview questions:
- Multiple choice interview questions
- Advanced Blockchain Interview questions.
Basic Blockchain interview Questions:
Q) What is blockchain?
Blockchain is a distributed digital public ledger which is highly secure and immutable. In the blockchain, one can transfer the information which is economical or has some value. It contains blocks which are attached to each other and are developed based on the cryptographic principle.
Q) What are the various types of Blockchain technologies available?
There are mainly three types of blockchains available in the market which are
- Public Blockchain
- Private blockchain
- Consortium blockchain
Q) What makes blockchain more Popular?
Below are the things that make blockchain accessible.
- It’s integration with other technologies open source nature
- Highly secure in nature
- Blockchain can be suitable or integratable for any kind of business.
Q) What are the two types of records available in the blockchain network?
There are two types of records available in the network which are block records and transactional records. These records are quite flexible in nature and are integrated with one another without following any complex algorithms.
Q) What are the properties of blockchain?
There are fours critical features of blockchain
Distributed ledger
Safer and Secure System
Mining
Decentralised System
Q) What is meant by encryption? And what its role in blockchain?
Encryption is the best possible way to secure the information to transfer it from one party to another. It is nothing but changing or modifying the data to some extent, and the authorised parties can only view the information. Blockchain adds more security to the encryption process by storing the information in the form of blocks in an immutable way.
Q) In which Order blocks are stored in Blockchain?
It is a simple thing to know in blockchain, but many don’t see how blocks are stored. In the blockchain, blocks are stored in a backward manner by linking to each bone to its previous block.
Q) How to recognize a block in blockchain?
There is a number of blocks in this giant blockchain ledger, and each block contains specific information. Each block contains a unique identification number called Hash. It is used as a key to finding the particular block on a blockchain network.
Q) Is it possible to alter the data once entered into blockchain?
No, it is not possible to alter the information once it gets stored on the blockchain network. If any organization requires any kind of modifications, they need to erase the information from all other blocks too. In the blockchain, the data would be given utmost priority while entering into a chain.
Q) What do you know about the security of a blockchain?
A blockchain is a robust algorithm which is designed based on a cryptographic method and contains a hash. Each block is secured with a unique hash. Any Modification to a block will result in a change in the hash identifier of the block. Therefore one can not hack the information in it. Hence one can store all kinds of valuable information without bothering about any security issues.
Q) What is a ledger in blockchain?
In general, the book which records the financial information is called a ledger, in the same fashion a digital network is used to store the information in the blockchain is called a ledger. Blockchain is an open distributed ledger that can record the information between the parties and the information entered on it will be verifiable and more secure in nature.
Q) What are the common types of ledgers available in blockchain?
There are three types of the commonly available ledger in Blockchain. Which are
- Centralised network
- Decentralised network
- Distributed network.
Q) What makes blockchain ledger special from all other networks?
The first thing to consider is blockchain is a digital ledger and can be decentralised very quickly. The chances of committing errors are very less compared to a manual ledger. An ordinary ledger requires human skill to record the transaction on it, but when it comes to the blockchain, it is an automated one.
Multiple choice Blockchain interview questions:
1) Which among the below is the first Bitcoin implemented on the blockchain?
Bitcoin [Ans]
Etherium
Ripple
Litecoin ( LTC)
2) How is blockchain stored?
A database
A flat file
None of the above
Both of the above [Ans]
3) In which manner blocks are linked in Blockchain?
Forward to the next block
backward to the previous block [Ans]
No link exists between the blocks.
4)What does the meaning of immutability in blockchain?
Blockchain is Alterable
It is unalterable [Ans]
5)Bitcoin is based on which of the following?
Public permissioned
Private permissioned
Public [Ans]
Private
6)Does a block consist of which of the following?
Timestamp
List of transactions
Hash pointer
All of the above [Ans]
7) how many parent blocks can one block have in blockchain?
Only one [Ans]
Two
Three
Unlimited
8) is Blockchain is very easy to tamper?
True
False [Ans]
Can’t say
9) Does the blockchain contain information in which of the following?
Tables
Blocks [Ans]
Square
Rectangles
10) blockchain is made out of which of the below algorithm?
SHA256 [Ans]
SHA128
Advanced Blockchain interview questions:
Q) What is meant by secret sharing? Does it add any value to the Blockchain?
Security matters a lot in any transaction and in the same way it is essential in blockchain transactions as well. In the blockchain, it is an approach to divide the information into various parts and then it sent to the other party on the network.
After it is reaching the authorised person, it allows us to combine the information if it is correct; otherwise, it will not. This is an additional security feature in the blockchain.
Q) What do you mean by off-chain transactions?
Off-chain transactions are special ones in Blockchain. It does not affect the network unlike on chain network. On a chain, network depends on the blockchain to agree upon the transactions. Off-chain transaction completely works out of blockchain and serves for a special purpose.
Q) What are the security Threats do you familiar with?
Security hacks are overgrowing due to the increased number of online transactions. Hackers are approaching with different strategies to steal the financial information of others. The primary type of threats includes identity theft, software hacking, hacking passwords etc. In addition to before explained forms of risks, there are some other ways to cause problems to online data such as Worms, Trojan horses, and viruses are other trouble creators.
Q) What type of businesses is eligible to use the Blockchain?
Blockchain is not permitted to any specific kind of organizations. Its powerful security system has attracted every industry towards its implementation. Whoever deals with financial data or sensitive information can use this technology without considering how small or big the organization is. It is best suitable for organizations such as governments, Defence, banks etc.
Q) Explain about security policy?
Security policy is defined as a particular procedure or rules and regulations followed by the parties while executing a process. To enhance the security whoever involves in the system must follow some specified set of rules. Multiple policies are incorporated in executing the related financial process or sensitive data transfer to protect it from all types of hacks.
Q) What are the requirements for the business blockchain?
All it requires is smart contract functionality, a shared ledger, and privacy policy.
Q) What are the ways to handle risk management in terms of securing records?
One needs to be very active in the areas where the threats can happen and ready to
act immediately if anything goes wrong.
The other approach is to have a backup plan. If the information is highly sensitive, then it is better to buy risk management software.
Q) What is 51% of attack?
Yes, this happens on the network when a person or group of people hold more than 50% of the chain if this happens to the chain the people who own more than 50% can easily manipulate the chain.
Q) Do we able to remove a block from the network?
Yes, we can do that. In the blockchain network, there are some default options and filters available to do that.
Conclusion:
Digitalisation is becoming more popular these days, and information has got the highest priority among all. Security is the key feature and blockchain is helping the organizations across the globe with its features. Career opportunities are growing day by day in blockchain technology. We have covered most frequently asked interview questions of blockchain. I hope this blog has given you some knowledge of various types of interview questions asked in an interview. All the very best for your Interview and happy learning!