Blockchain Technology: Most Frequently Asked Interview Questions

Most Frequently Asked Interview Questions on Blockchain Technology

What Is Blockchain Technology?

Blockchain is a decentralized, distributed digital ledger that stores records of transactions across multiple computers. Transactions are secured and maintained using cryptography, and no single entity has complete control over the network. This makes it incredibly secure and tamper-resistant.

What Are the Benefits of Blockchain Technology?

Blockchain technology offers many benefits, including increased security, transparency, cost savings, and efficiency. By removing intermediaries from the equation, it can also enable faster, more efficient transactions. In addition, it can reduce the risk and cost of fraudulent activities, as data stored on the blockchain is immutable and cannot be changed or manipulated.

What Is a Smart Contract?

A smart contract is an automated agreement that is executed digitally and stored on the blockchain. It specifies the terms of a transaction and automatically executes when certain conditions are met. It is cryptographically secure and tamper-proof, making it an ideal platform for verifying complex agreements.

What Are the Limitations of Blockchain Technology?

Despite its impressive potential, blockchain technology also has several limitations. Since it is still in its early stages, scalability is a major issue. The speed and cost of transactions are also limiting factors, and the technology isn't yet ready for commercial use. Additionally, blockchain technology requires users to be technically savvy and have a good understanding of the technology.