This guide is for those interested in pursuing a career in blockchain technology. The following collection of top blockchain technology interview questions will help you better understand all the key ideas. So, if you’re a newbie blockchain engineer, practice these questions and you’ll be able to ace the interview in no time. To begin, let us analyze the significance of blockchain technology in today’s environment.
Why is blockchain technology important?
Without a question, blockchain is the newest buzzword in the technological world.
In simple terms, it’s a distributed ledger and a trustworthy technique to speed up the transaction process, according to the worldwide blockchain expert team. Furthermore, when it comes to the employment market and business value of this technology, its potential is enormous. Blockchain technology is expected to be worth $3.1 trillion by 2030, according to studies.
Let’s get started with some blockchain interview questions.
Most Relevant Interview Questions for a Blockchain Expert
Despite the fact that blockchain technology is one of the most complex, it is gaining popularity. As a result, a prospective blockchain engineer should be aware of the questions to expect and how to prepare for an interview in order to have a successful career in this field. As a result, we’ve put up a list of the top 10 interview questions to assist you. It will assist you in preparing for the interview process.
In reality, there is a high demand in the industry for blockchain specialist professionals. So, let’s take a look at some key questions and answers to help you stay ahead of the pack.
1. What do you mean by blockchain technology?
With the distributed peer-to-peer network, blockchain works as a distributed and immutable ledger that makes hacking the platform impossible. In other words, it is the most secure technology to record transactions and assets that can be intangible and tangible. In addition to this, technology is dominating various industries such as finance, healthcare, the internet of things, etc.
2. What are the use cases of blockchain technology?
From adding transparency to efficiency in data transactions, the blockchain professional can use it in a variety of aspects. For example, tech giants have been saving businesses time and money with this technology.
Interestingly, this time-stamped series of immutable records is popular in the finance sector. In addition to it, companies may provide scalability, security, and privacy during transaction processes with its implementation. Though blockchain came into the trend with cryptocurrency, application of blockchain technology is nowadays reaching the healthcare and entertainment industry as well.
Therefore, even smart appliances store data over blockchain ledger to avoid cyberattacks. Due to the smart contract, the travel industry, cybersecurity, and automobiles industry also use blockchain technology for safe data sharing and close monetary deals.
3. How does Blockchain work?
A block or immutable record of data is the prime component in the blockchain. A block helps in the storage and collection of data. When closely linked, more blocks form a chain of data which is known as the blockchain. Furthermore, when it records data once, nobody can change it. Thus, blockchain provides top-notch data security and privacy.
In simpler terms, a block will get a place in a network after verifying transactions. So, blockchain includes all verified transactions to ensure a spender owns them.
4. What is the importance of Blockchain in cryptocurrency?
Blockchains are best known for the traceability of transactions to maintain a secure and decentralized record. Also, this type of shared database does not involve any third party during the transaction process. Plus, cryptocurrencies are sped up by this technology. Blockchain networks are powering almost all cryptocurrencies for security purposes, such as Bitcoin and Ethereum.
Moreover, big companies can transform themselves with the security, privacy and transparency blockchain offers. In addition to this, this decentralized ledger is also improving patient care, patient data management, and advancing medical care when incorporated in clinics.
5. Enumerate the famous blockchain platform.
Following are the most famous or popular blockchain platform.
- Hyperledger Fabric
- Hyperledger Sawtooth
- ConsenSys Quorum
6. What are the types of Blockchain?
There are 3 types of blockchain available. They are as follows:
- Private Blockchain
- Public Blockchain
- Consortium or Federated Blockchain
It is the first type of distributed ledger that is available for anybody to read, write and audit.
This type of blockchain is a private property that sets controls for selected individuals.
Consortium or Federated Blockchain
As the name suggests, it is closely controlled by the selected members of the Consortium. Additionally, they have the rights to read, write and audit the Blockchain.
7. What are the advantages of blockchain technology?
The major advantages of using Blockchain are as follows:
- Improved traceability
- Decentralized structure
- Reduced cost
- Significantly faster than conventional methods
- Transparency of transactions
- Fraud control
- Increased efficiency
- No payment for intermediaries services
8. What are the components of the Blockchain Ecosystem?
The blockchain ecosystem has the following major components:
- Node Application
- System management
- Shared Ledger
- Smart contract
- Consensus Algorithm
- Peer network
- Virtual Machine
All of the above components of blockchain technology play a crucial role in running a blockchain platform.
9. What are the features of Blockchain?
The features of blockchain are as follows:
Increased Networking Capacity
Blockchain is a list of records that increases the capacity of a network. Also, note that this is more true for public blockchain, as it is an open-source platform that imposes no limitations on the maximum number of nodes joining in the network.
Blockchain ensures the security of nodes from hacking and other cyberattacks. Further, it uses a consensus mechanism that makes it easier for network nodes to detect any suspicious activity immediately.
It is almost impossible to modify, rewrite or edit the data stored on blockchain ledger.
The platform does not operate under a centralized authority. Instead, network members are the ones who drive all the platform-based decisions following the consensus mechanism.
This decentralized ledger can settle global money transfers in less period than other available digital payment services.
The DLT ( Distributed Ledger Technology) allows blockchain networks to send copies of original transaction data to each node within the network. Hence, it maintains a robust transparency.
Consensus being a decision-making process, helps blockchain network members to come to an agreement quickly.
10. Can Blockchain be split?
Yes, blockchain split is true. Forking the blockchain can split it in two or more versions. A fork is a change in the protocol and is short-lived but permanent. With permanent splitting,
versions of a blockchain give different histories.
Learn blockchain technology to get prepared for the job as a blockchain developer and acquire a dream career in this domain. If you want to achieve excellence, visit BLOCKCHAIN COUNCIL and enroll yourself in a blockchain degree program. Opting for a blockchain certification will help you perform best in the job interview. Now, we hope that you got the answer to how to become a blockchain engineer.
Without further delay, read all the questions thoroughly and increase your chance of selection.