CAF-3 · Chapter 12 · Question 4 of 15
What is the specific purpose of "hashing" in a blockchain environment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To create a unique digital fingerprint of the data within a block
Explanation
Hashing is used to create a unique digital fingerprint for the data in a block, linking it securely to the previous block in the chain . --------------------------------------------------------------------------------
More Fintech & Blockchain Applications MCQs
- Q6An enterprise wants to keep its sensitive internal data private while simultaneously sharing key, non-sensitive information on a public…
- Q7Which Distributed Ledger Technology (DLT) provides decentralized computing without needing global consensus, instead allowing each…
- Q8In a Proof of Stake (PoS) consensus mechanism, how are validators selected to maintain the integrity of the network?
- Q9Fintech (Financial Technology) spans various domains designed to make financial services more accessible and efficient. Which of the…
- Q10How does blockchain technology fundamentally revolutionize identity verification within the Fintech sector?
