Blockchain Interview Questions and Answers
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Best Blockchain Interview Questions and Answers
As the popularity of Blockchain improving day by day, the career opportunities in this field is also increasing every day. All the jobs associated with Blockchain are highly paid and so if you are aspirants looking for a job in this field, then you will have to know some of the preparing tips which will certainly lead you towards success. Here, we have discussed some of the frequently asked Blockchain Interview Questions and Answers which has to be prepared for sure if you are preparing for a Blockchain interview.
These top 50 Blockchain Interview Questions and Answers are prepared in consultation with the top interviewers and employers in this field. Also, we have consulted several aspirants who have recently attempted a Blockchain interview for preparing these set of top 50 Blockchain Interview Questions and Answers. It is compatible for both freshers and professionals looking for a job in the field of Blockchain. So, if you are a person trying for a job in the field of Blockchain, then just dive in, these questions will surely let you crack the technical interviews at ease. We wish you all success in your career excellence.
Top Blockchain Interview Questions and Answers
A decentralized database that consists of immutable records is known as the Blockchain which came into act with the discovery of bitcoin. Most of the companies nowadays are using this trusted technology as it is an open source technology and completely secure.
Bitcoin Blockchain | Ethereum Blockchain |
It involves the concept of digital currency | Smart contracts is the concept behind ethereum Blockchain |
Satoshi Nakamoto is the founder of bitcoin Blockchain | Vitalik Buterin is the founder of ethereum Blockchain |
It is not yet scalable | It is highly scalable |
The algorithm behind bitcoin Blockchain is SHA-256 | Ethash is the algorithm behind ethereum Blockchain |
The main underlying principle of Blockchain technology is that it distributes information between several users without duplicating or copying.
There are three types of Blockchain namely Public, Private and Consortium.
There are many reasons why Blockchain is referred to as the trusted approach and those reasons are listed below:
- As is an open source, it is highly compatible with the other business applications
- It is highly secure, as it is used for online transactions it is build with maximum security
- Blockchain can be used for any type of businesses whatever its nature may be
Blockchain | Traditional Database |
It can perform only insert operation | It can perform create, retrieve, update and delete operations |
The block of every peer can be replicated | It undergoes master slave and multi-master replication techniques |
The outcome of the transactions are agreed by most of the peers | The consensus involved in traditional database is distributed transactions |
The main properties of Blockchain are as follows:
- Decentralized Systems
- Distributed ledger
- Safer & Secure Ecosystem
- Minting
Encryption is the process used to protect and safeguard data; it is highly used for data security. In Blockchain, encryption is used to elevate the overall security and authenticity of the data or blocks.
Cryptography in Blockchain is used to safeguard the identity of the users and to perform safe transactions with the help of hash functions. It makes use of the public and private keys to encrypt and decrypt a particular block of data in Blockchain.
The commonly used cryptographic algorithms are as follows:
- SHA – 256
- RSA (Rivest-Shamir-Adleman)
- Triple DES
- Ethash
- Blowfish
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The record lists are stored in the form of blocks in Blockchain, all the blocks are linked with the other blocks and thus represent a chain and so it is defined to be a Blockchain.
Genesis block or block 0 is the first block in the Blockchain and it is the only block which does not refer to its previous block and defines parameters like consensus mechanism and level of difficulty.
Every block present in the online ledger contains a hash pointer which actually connects all the blocks and is used for data transaction and time stamp.
Blocks in Blockchain can be identified with the help of block height and block header hash.
No, we cannot edit the data written in the blocks, in case, if we wanted to do, then we will have to erase all the information from the blocks.
Yes, at times we will require only a specific online ledger or block to execute a function; this can be achieved with certain filters and options.
Here are some of the differentiations detailed:
- Blockchain distributed ledger is irreversible and transparent while traditional ledger is reversible
- Blockchain distributed ledger is highly secure when compared to traditional ledger
- In the distributed ledger of Blockchain the identities of the participants remain hidden where in transaction ledger the details are visible
The common types of record which can be held in the Blockchain are as follows:
- Records of medical transactions and documentation
- Identity management & Transaction processing
- Events & Management activities of organizations
All users on the same network cannot access every block present in the Blockchain and so it ensures maximum security. Also, all the blocks of Blockchain are secured with the cryptography technology and so none of the organizations will have to worry about the data security of the blocks.
In Blockchain, the secret sharing is nothing but it separates both the confidential and personal blocks separately and transmits them accordingly to the users over the network. Blockchain is highly secure and so it undergoes several security methods to ensure data security at every step.
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Yes, Blockchain ledger is incorruptible and so it cannot be corrupted.
The common ledger types used in Blockchain are as follows:
- Centralized network
- Decentralized network
- Distributed network
The transfer of useful values across the wallets of bitcoin also comes under the concept of Blockchain as bitcoin consists of a piece of secret data which might be a seed or a private key and this can be used to initiate secure transactions.
Merkle tree is a binary tree or a data structure that consists of the cryptographic hashes required for each of the block to verify each block. It can also be defined as a hash tree where each leaf node can be represented as the hash of the data block and non-leaf node can be represented as the hash of the specific child nodes.
No, it is not actually possible to deploy a file in Blockchain that consists of multiple contracts. Only the last contract of the file that has been uploaded will be deployed while the other contracts will not be deployed.
One of the primary differences is that the Blockchain ledger cab be easily decentralized. It is less prone to errors when compared to the normal ledger. Also, Blockchain ledger is generated automatically while normal ledger has to be prepared with a lot of human efforts.
The network servicing protocol and the nodes of the network are the two factors on which the system relies while the distributed ledger in Blockchain is used to record transactions effectively and at ease.
The main components of Blockchain ecosystem are namely Shared Ledger, Node Application, Virtual Machine and Consensus Algorithm.
The key principles that are being used in Blockchain to avoid security threats while transactions are as follows:
- Auditing
- Securing applications
- Securing testing and similar approaches
- Database security
- Continuity planning
- Digital workforce training
A shared ledger, smart contract functionality, trust and privacy are some of the prerequisites required for a successful business Blockchain.
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Some of the popular consensus algorithms are as follows:
- PBFT (Practical Byzantine Fault Tolerance)
- Proof-of-work
- Proof-of-stake
- Delegated proof-of-stake
- Proof-of-elapsed time
Proof-of-work | Proof-of-stake |
The probability of mining a block is totally dependent on the amount of work done by the miner | The new blocks are validated by the stakeholders with the help of coins share over the network |
It consumes energy from the proof-of-stake | Peercoin is one of the examples of proof-of-stake |
No, as analyzed there no specific network condition to use Blockchain technology in any organization but the network we prefer should be within a concerned protocol and it should be a peer-to-peer network. It can be used to effectively validate the blocks and assist organizations without the need for any third-party applications.
The steps involved in Blockchain implementation are as follows:
- Requirement identification
- Screen ideas consideration
- Project development for Blockchain
- Feasible study on the security
- Implementation
- Controlling and monitoring the project
Block records and Transactional records are the two types of records present in Blockchain database which can be easily accessed and integrated without following any complex procedures or algorithms.
There are several platforms emerging every day after the introduction of bitcoin among which ethereum is one of the popular platforms to develop engaging Blockchain applications at ease. To enterprise level applications, we can make use of the hyperledger communication whereas some of the other platforms used to develop Blockchain applications are Qtum, IOTA, and EOS.
Double spending is a condition where a single token is used up multiple times as the token originally contains digital files which can be cloned at ease. Double spending generally leads to inflation which cause huge loss to the organizations, so the main aim of Blockchain is to avoid double spend.
The major pros of Blockchain technology are as follows:
- Real-time settlement
- Saves money
- It’s highly resilient and secure
- It is immutable
It is nothing but bitcoin and it is based on publick Blockchain technology.
The Blockchain can be stored in the form of both flat file and database.
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The process where the message content is blinded before signing is known as the blind signature, this process is used in Blockchain transactions where the author of the message and the signer is different.
The movement of value outside the Blockchain is known as the off-chain transaction which relies on methods used to record and validate a transaction.
Executive accounting refers to a business that caters exclusive range of services to the people more effectively. And, Blockchain does have various algorithms which supports executive accounting.
As online transactions are increasing every day, hackers and security threats are also evolving every day, listed below are some of the popular information threats:
- Software attack
- Identity theft
- Information extortion
- Sabotage
And, some of the trouble creators like worms, viruses and Trojan horses
A block can be identified with the below listed fields:
- Every block actually consists of the previous block’s hash value
- Blocks also consist of various transactional data
- Nonce is one of the values found in every block
- And, also it has the hash of the own block which is an alphanumeric value or a digital signature used to identify a block
Smart contracts are nothing but self-executing contracts which holds the agreements and terms and conditions of the peers.
Some of the applications of smart contract are as follows:
- Transportations
- Insurance
- Protecting copyright content
- Employment contract
A decentralized application that is deployed using the smart contract is known as dapp which hold a back-end code which is executed on a holistically decentralized peer-to-peer network.
The process of updating the cryptocurrency protocol or code is known as forking.
The main forking types include hard forks, soft forks and accidental forks.
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