Eccouncil EC-Council Blockchain Fintech Certification (BFC) 312-82 Exam Practice Test

Answer : A

The right to publish a new block is commonly determined by Proof 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 work is the correct answer, as PoW is the standard method by which nodes earn the right to publish new blocks in many blockchain networks.

Answer : D

Tokenization is the process of converting rights to an asset into a digital representation on a blockchain. This process allows assets like real estate, art, or securities to be represented as digital tokens that can be traded or transferred on a blockchain.

Key Details:

Digital Representation of Assets: Tokenization involves creating digital tokens on a blockchain that represent ownership or rights to a real-world asset. These tokens can be transferred and traded much like traditional assets.

Advantages of Tokenization: By enabling fractional ownership, tokenization lowers barriers to investment and improves liquidity. It also provides transparency and traceability in asset transactions.

Use Cases: Tokenization is widely used in real estate, art, and securities, as it facilitates easy transfer, enhances liquidity, and enables global access to traditionally illiquid assets.

Thus, D. Tokenization is the correct answer, as it describes the process of converting asset rights into a digital form on a blockchain.

Answer : C

Blockchain can greatly benefit the food industry by making transactions more transparent. By recording each transaction in an immutable ledger, blockchain enables traceability, which is crucial for food safety, quality control, and ensuring that products meet regulatory standards.

Key Details:

Traceability: Blockchain allows for the tracking of food products from farm to table. Each step in the supply chain can be recorded on the blockchain, providing consumers and regulators with transparent information about the origin and journey of food products.

Improving Trust and Safety: With transparent transactions, stakeholders can quickly identify and address issues such as contamination, fraud, or mislabeling, which enhances food safety and consumer trust.

Enhanced Efficiency: By reducing paperwork and enabling digital record-keeping, blockchain streamlines the process of verifying and sharing information about food products across various parties.

Thus, C. Making transactions more transparent is the correct answer, as it highlights blockchain's role in providing transparency in the food industry.

Answer : C

The answer is (C) Quilt.

Hyperledger Quilt is a Java implementation of the Interledger Protocol (ILP). ILP is designed to transfer value across different ledgers, whether they are distributed ledgers (like blockchains) or traditional non-distributed ledgers.

Here's why the other options aren't the best fit:

Composer: Hyperledger Composer was a tool for building blockchain applications, but it has been deprecated.

Cello: Hyperledger Cello aims to provide a modular blockchain platform, making it easier to deploy and manage blockchain networks.

Caliper: Hyperledger Caliper is a benchmarking tool used to measure the performance of different blockchain implementations.

Quilt's primary function is to enable interoperability between different ledger systems, which is crucial for the broader adoption and integration of blockchain technology.

Answer : B

The primary benefit of blockchain in the healthcare industry for patients is total 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 records is the correct answer, as it represents a significant advantage for patients in managing their healthcare information securely.

Answer : D

Smart Contracts are self-executing programs that automate transactions and eliminate the need for intermediaries. They operate on blockchain networks and are coded to execute specific actions when predetermined conditions are met.

Key Details:

Transaction Automation: Smart contracts automatically execute the terms of a contract once the agreed-upon conditions are fulfilled. This reduces manual processing and ensures transparency and trust between parties.

Elimination of Intermediaries: By running on a decentralized network, smart contracts eliminate the need for third-party intermediaries, such as lawyers or notaries, reducing transaction costs and increasing efficiency.

Application Across Industries: Smart contracts are used in various sectors, from finance and supply chain to insurance and real estate, due to their ability to enforce terms without human intervention.

Therefore, D. Smart contracts is the correct answer, as they facilitate automated transactions and remove the need for intermediaries.

Answer : C

A Type II DApp is characterized by utilizing another blockchain, such as Ethereum, as its underlying platform. Type II DApps generally operate as protocols or platforms themselves and rely on a foundational blockchain (Type I) for their infrastructure. This categorization enables Type II DApps to leverage the security, decentralization, and functionality of the underlying blockchain while adding unique features or protocols.

Key Details:

Relationship with Type I DApps: Type I DApps are foundational platforms with their own blockchain, such as Ethereum. Type II DApps are built on these foundational platforms, creating additional protocols or applications that depend on the Type I blockchain.

Examples of Type II DApps: Protocols like the ERC-20 token standard on Ethereum are examples of Type II DApps, as they rely on Ethereum's blockchain but provide their own set of functionalities that can be used by other applications.

Benefits of Using Existing Blockchains: By using established blockchains, Type II DApps benefit from existing infrastructure and security while extending the blockchain's capabilities.

Therefore, C. Type II is the correct answer, as it represents DApps built on another blockchain like Ethereum.