If you are a blockchain expert and want to prepare yourself for an interview, this guide will help you in cracking the difficult interviews at the beginner’s level.
Table of Contents
- Advent of Blockchain
- Best Interview Questions for Blockchain Experts
- Concluding Lines
Advent of Blockchain
Blockchain, a peer-to-peer, decentralized, distributed ledger technology is taking the world by storm. At present, it is one of the most demanding technologies because blockchain developers and experts are leveraging blockchain for adding values to their businesses by offering transparency, security, traceability, and efficiency. Moreover, tech giants such as IBM, Microsoft, and others are adopting and implementing blockchain solutions for their operations. Top companies such as FedEx, KIK, Walmart, and more have already utilized blockchain solutions for their operations. Public sectors have also started considering this technology to move away from siloed and inefficient centralized systems.
Best Interview Questions for Blockchain Experts
From the above discussion, it is clear that the demand for blockchain experts is constantly growing. Now, without further delay, let’s focus on a few questions you should be thorough with before sitting down for your job interview.
Question: What is blockchain technology? What is the role of P2P in Blockchain?
Answer: Blockchain is a peer-to-peer, decentralized, distributed, digital ledger of transactions that is duplicated and distributed across the entire network. It is a time-stamped series of immutable records which is not managed by any single authority.
The peer-to-peer architecture of blockchain allows all cryptocurrencies to be transferred worldwide, without the need of any middle-man or central server. With the distributed peer-to-peer network, anyone who wishes to participate in the process of verifying and validating blocks can set up a Bitcoin node.
Question: Is blockchain a trusted approach?
Answer: Blockchain is undoubtedly a trustable technology that helps participating parties to share their valuable data in a secure and tamper-proof manner. It makes uses of cryptography for securing crucial information, thus making it extremely hard for attackers to play with stored data. Due to its high potential to provide security, it is widely adopted and implemented by various organizations and businesses for their operations.
Question: What are the requirements for implementing Blockchain technology for enterprise usage?
Answer: Here are the most basic ones:
- Is the network peer-to-peer?
- Does the system offer smart contract functionality for the execution of decentralized applications or not?
- Can data be stored permanently without compromising the security measures?
- Does it offer decentralized data storage?
- What are its data privacy aspects?
- Is the immutability ensured?
Question: What are the restrictions for putting records in blockchain?
Answer: There is no such restriction. One can store any kind of record, depending upon their requirements. The most common type of records that are recorded in blockchain are records of transaction processing, identity management, business transactions, health management data, and all other documentation.
Question: What are the components of the Blockchain Ecosystem?
Answer: The major components of blockchain are:
- Node Application
- Shared Ledger
- Consensus Algorithm
- Virtual Machine
Question: What is the role of the consensus mechanism in blockchain? Distinguish between PoW and PoS?
Answer: Consensus mechanisms are used for a system of connected users with no central database to verify the legitimate transactions. Consensus mechanisms are used by blockchain to verify which transactions should be added to the blockchain in a decentralized manner. In addition, they make sure that everyone in the network uses the same copy of the blockchain on their computers.
There are various consensus mechanisms, but the most common ones are PoW and PoS.
In PoW, the central principle behind is to solve complex mathematical problems and make the largest number of guesses as quickly as possible. In this mechanism, miners compete to be the earliest one to find a hash regarding a specific block, which can only be solved using sheer computing power to make the most significant number of guesses. While in PoS, miners can join the mining process using their coins to stake. It allows users to mine for rewards using very minimal hardware and software resources.
Question: What is blockchain mining?
Answer: Blockchain mining is a process by which transactions of a blockchain are verified without involving any third-party. Every time a transaction is sent from a Bitcoin wallet, it is sent to the transaction pool. Miners then pick hundreds of transactions and combine them to form a block with other overheads like Merkel Root, SHA-256 Hash, Nonce, etc.
Question: What are smart contracts?
Answer: The term smart contract is used to describe computer code that can facilitate the exchange of items such as money, content, property, or anything of value. When such smart contracts run on the blockchain platform, they become like a self-operating computer program that executes automatically when desired conditions are met. Since these run on the blockchain, they run exactly as programmed, without any chance of censorship, downtime, deception, or third-party interception.
What are the use cases of blockchain?
Blockchain can be implemented and applied across various domains such as:
- Supply Chain
- Travel Industry
- Financial Industry and many others.
If learning blockchain deeply from scratch is beyond your current scope, these questions will help you in preparing yourself for the best.
Hope you will crack your next interview and get a job as a blockchain expert in a top organization. Good luck!
To know more about blockchain certifications and become a blockchain expert, check out Blockchain Council.