Pass the ECCouncil Certified Blockchain Professional 312-82 Questions and answers with ExamsMirror

The smallest subunit of Ether is called aWei. Ether (ETH) is divided into several subunits for precision in transactions, with Wei being the smallest, equivalent to 10−1810^{-18}10−18 Ether.

Key Details:

Subunits of Ether: The Ethereum network uses smaller units to facilitate transactions that require a higher degree of accuracy. The most commonly used subunits are Gwei (billion Wei), but Wei represents the smallest possible division.

Importance in Transactions: Wei ensures that Ether can be broken down into very small units, allowing for microtransactions and precise gas calculations, which are essential in smart contract executions.

Naming Convention: This denomination was named in honor of Wei Dai, a cryptographer who proposed b-money, an early concept of digital currency.

Therefore,D. Weiis the correct answer, as it is the smallest unit of Ether.

APermissioned ledgeris a blockchain where participants are known and trusted, and access to the network is restricted to authorized entities. Permissioned ledgers are commonly used in enterprise and consortium settings where privacy, compliance, and control over data are essential.

Key Details:

Controlled Access: In a permissioned ledger, only pre-approved participants can validate transactions and participate in the consensus process. This model ensures that all network members are identified and trusted, which is ideal for environments requiring a higher level of control and privacy.

Use Cases: Permissioned ledgers are widely used in industries such as finance, healthcare, and supply chain, where it’s important to know and trust participants due to regulatory or operational needs.

Contrast with Permissionless Ledgers: Unlike permissionless ledgers (such as Bitcoin), which allow anyone to join and participate in the network, permissioned ledgers restrict participation to entities that meet specific criteria.

Thus,A. Permissioned ledgeris the correct answer, as it describes a blockchain network where participants are known and trusted.

Asoft forkis a change to a blockchain protocol that is backward-compatible, meaning it does not result in the creation of a new chain and does not require all client nodes to upgrade. Nodes that do not upgrade can still participate in the network, although they may not have access to all new features introduced by the soft fork.

Key Details:

Backward Compatibility: In a soft fork, updated nodes enforce the new rules, while non-updated nodes continue to follow the older protocol but remain part of the same blockchain. This contrasts with hard forks, where incompatibility leads to the creation of a new chain.

Use Cases: Soft forks are commonly used to implement protocol upgrades or adjustments that do not fundamentally alter the structure of the blockchain, such as increasing block size limits or adding new features that are optional.

Examples: An example of a soft fork is the Segregated Witness (SegWit) update on the Bitcoin blockchain, which was implemented to increase block capacity without splitting the chain.

Thus,B. Soft forkis the correct answer, as it refers to a backward-compatible update that does not require a new chain or mandatory upgrades from all nodes.

AType II DAppis a decentralized application that uses both the blockchain and protocol of aType I DApp. Type I DApps are the foundational blockchain-based platforms, such as Ethereum, that operate with their own blockchain. Type II DApps build on these platforms, using the existing blockchain and protocol, but offering specific functionalities or services.

Key Details:

Type I DApps: These are fundamental blockchain platforms, like Bitcoin or Ethereum, which have their own blockchain and provide a foundation for other applications.

Characteristics of Type II DApps: Type II DApps leverage the infrastructure of Type I DApps but add additional functionality through smart contracts or protocols. For example, protocols such asERC-20 tokensorERC-721 NFTsare built on Ethereum and utilize Ethereum's underlying blockchain and consensus protocol.

Integration: By utilizing both the blockchain and protocol of a Type I DApp, Type II DApps inherit the security, decentralization, and features of the underlying Type I platform, which simplifies their development and ensures compatibility.

In summary,B. Using the blockchain and protocol of a type Iaccurately describes the categorization of Type II DApps.

AFully Anonymous DAppis a decentralized application that is designed to maintain complete anonymity for all participants. These DApps do not require user identity verification, and interactions are carried out in a manner that does not reveal personal information. Fully anonymous DApps are particularly popular in privacy-focused blockchain ecosystems.

Key Details:

Privacy and Anonymity: Fully anonymous DApps employ various privacy-preserving techniques, such as zero-knowledge proofs or ring signatures, to ensure that user transactions and interactions cannot be traced back to their identities.

Use Cases: Fully anonymous DApps are often used in applications where privacy is paramount, such as private transactions, anonymous messaging, and confidential voting systems. By design, they prioritize user anonymity over other features.

Comparison with Other DApp Types: While other DApp types might include some level of user identification or reputation systems, fully anonymous DApps offer total anonymity, making them ideal for users who require privacy at all levels of interaction.

Therefore,A. Fully anonymous DAppis the correct answer, as it describes a DApp that allows participants to remain completely anonymous.

Tokenizationis 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. Tokenizationis the correct answer, as it describes the process of converting asset rights into a digital form on a blockchain.

AType II DAppis 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 IIis the correct answer, as it represents DApps built on another blockchain like Ethereum.

Auguris a decentralized, blockchain-based predictions market built on the Ethereum network. It enables users to create and participate in markets based on the outcome of real-world events, using smart contracts to automate the process and secure transactions.

Key Details:

Ethereum-Based: Augur utilizes the Ethereum blockchain to facilitate the creation and settlement of prediction markets. It leverages Ethereum's smart contracts to ensure transparency, immutability, and trustless interactions.

Decentralized Prediction Market: In Augur, users can bet on the outcome of various events, ranging from sports to elections. The decentralized nature of the platform ensures that no central authority controls the markets, providing a level of censorship resistance.

Token Usage: Augur uses a token called REP (Reputation) that holders use to report and dispute outcomes of events on the platform. This ensures that the market outcomes are validated in a decentralized manner.

Thus,A. Auguris the correct answer, as it is a blockchain-based prediction market built on Ethereum.

Hyperledger Fabricis designed to provide a foundation for developing blockchain solutions with a modular architecture. Fabric, a project under the Hyperledger umbrella by the Linux Foundation, offers flexibility through its pluggable components, enabling enterprises to tailor blockchain networks according to their specific requirements.

Key Details:

Modular Architecture: Hyperledger Fabric supports modular plug-ins for various functions, including consensus, identity management, and privacy settings. This allows organizations to customize the blockchain to suit their operational needs.

Permissioned Network: Fabric is a permissioned blockchain, meaning that it restricts network participation to authorized entities, which is ideal for enterprise use cases that require confidentiality and controlled access.

Enterprise-Grade Features: Fabric's architecture is well-suited for complex business processes, providing features like private data collections, which allow subsets of participants to create private channels for transactions.

Thus,B. FABRICis the correct answer, as it is specifically developed to support modular, enterprise-grade blockchain solutions.

According to studies conducted by Deloitte and other industry research, blockchain offers several benefits for the insurance industry, particularly inmore efficient claims processingandlower costs. Blockchain’s capabilities in data immutability, transparency, and automation play key roles in streamlining insurance processes and reducing operational expenses.

Key Details:

Efficient Claims Processing: Blockchain enables quicker verification and processing of claims by automating workflows through smart contracts. This reduces paperwork, minimizes errors, and speeds up the claims process, improving customer satisfaction.

Lower Costs: By reducing intermediaries and leveraging automation, blockchain lowers administrative costs. It minimizes the need for manual verification and fraud detection, which traditionally consume significant resources in the insurance industry.

Transparency and Fraud Reduction: Blockchain provides an immutable and transparent record of all transactions. This helps prevent fraud, as all stakeholders have access to the same data, reducing discrepancies and the need for extensive audits.

In conclusion,A. More efficient claims processingandD. Lower costsare the correct answers, as these are key benefits of blockchain for the insurance industry identified in Deloitte’s research.