Which of the following statements regarding the features of blockchain technology are correct? 1. Records stored in the database…

Question

Which of the following statements regarding the features of blockchain technology are correct?

1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.

2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.

3. Consortium blockchain is a blend of public and private blockchains allowing selective data access.

4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.

1. A. 1 and 3
2. B. 2 and 4 only
3. C. 1, 2 and 4 (Correct answer)
4. D. 1 and 4 only

Correct Answer

Option C — C

Detailed Solution & Explanation

The correct answer is Option C.

Key Points

• Blockchain is a distributed, tamper-evident digital ledger. Checking each feature:
• Statement 1 is correct: records can be made visible to relevant stakeholders while remaining tamper-resistant — transparency without the risk of unauthorised alteration.
• Statement 2 is correct: identical copies of the ledger are held on many nodes across the network and synchronised, so there is no single point of failure.
• Statement 4 is correct: cryptographic hashing links each block to the previous one, so altering an accepted record would break the chain — making data effectively immutable.
• Statement 3 is incorrect, and is the key: a consortium blockchain is a semi-decentralised ledger governed by a group of pre-selected organisations. Describing it as 'a blend of public and private' actually fits a hybrid blockchain, not a consortium one.
• the three broad types are public (open, e.g. Bitcoin), private (single-org controlled), and consortium/permissioned (a group of known participants).

Exam Tip

• the consortium-vs-hybrid distinction is the trap — consortium = controlled by a *group*; hybrid = mixes public and private features.