Question

In order for a new block to be added to the blockchain, four criteria must be met. Which of the following are examples of the required criteria?

a. A hardware company purchases lumber.
b. The digital signature of the vendor and consumer, as well as the transaction amount and date and time of purchase are stored on a block.
c. An independent bookstore pays off a line of credit used to purchase a bulk order of J.K. Rowling’s most recent novel
d. An importer wants to check on the status of items he ordered from China last month.

Answer 1

The correct criteria for adding a block to the blockchain involve storing the transaction details such as digital signatures, the amount, and timestamps. Cryptocurrency must also be a store of value, usable as a unit of account, and function as a medium of exchange.

Step-by-step explanation:

In order for a new block to be added to a blockchain, several criteria must be satisfied, but the examples provided are not all directly related to those criteria. The one that fits best is:

• b. The digital signature of the vendor and consumer, as well as the transaction amount and date and time of purchase are stored on a block.

This relates to how a transaction is recorded on the blockchain: it involves the necessary digital information being included in a block before it can be added to the chain. Other criteria for adding a block to the blockchain include verifying that the transaction is valid, ensuring block consensus through a process like Proof of Work or Proof of Stake, and updating all nodes with the new block to maintain a decentralized and accurate ledger.

Cryptocurrency must also satisfy being a valid store of value, a unit of account, and being readily usable as a medium of exchange to fully function as money. While Bitcoins can be used for purchasing goods and services online, their acceptance for everyday transactions like paying for groceries or rent is less common.