Question 1

What is blockchain technology?

Accepted Answer

Blockchain technology is a method of recording data across a distributed network of computers. Transactions are grouped into blocks and linked using cryptographic hashes, making the record transparent, verifiable, and highly resistant to unauthorized modification.

Question 2

How does blockchain differ from cryptocurrency?

Accepted Answer

Cryptocurrency is one application of blockchain technology. Blockchain can also support smart contracts, decentralized applications, supply chain tracking, digital identity, tokenization, enterprise data management, and many other use cases beyond digital currency.

Question 3

What are smart contracts used for?

Accepted Answer

Smart contracts are blockchain-based programs that automatically execute predefined instructions when specific conditions are met. They can support decentralized finance, NFT marketplaces, automated payments, insurance, governance, digital assets, and business workflows.

Question 4

What is the difference between blockchain and DLT?

Accepted Answer

Distributed ledger technology is a broad category of systems that share and synchronize records across multiple participants. Blockchain is one type of DLT that generally organizes data into cryptographically linked blocks, although not every distributed ledger uses a traditional blockchain structure.

Question 5

Why is blockchain architecture important?

Accepted Answer

Blockchain architecture determines how a network handles security, transactions, consensus, scalability, data storage, and interoperability. Understanding its architecture helps organizations and developers choose suitable platforms for public, private, enterprise, and decentralized applications.

Blockchain Technology Deep Dive