Certified Blockchain Business Foundations (CBBF) — Question 4

How does a private Blockchain differ from a public one? Select all that apply.

Answer options

• A. A private Blockchain does not use proof of work consensus
• B. A private Blockchain is more efficient and has faster transaction times
• C. A private Blockchain is not distributed
• D. A private Blockchain often requires the identity of users to be known

Correct answer: D

Explanation

Option D is correct because private Blockchains typically require user identities to be verified for access and governance. Options A, B, and C describe characteristics that can vary; for instance, private Blockchains can still use proof of work, may not always have faster transaction times, and can be distributed depending on their design.