Layer-2 Solutions: Enhancing Blockchain Scalability

Question 1

How does the Lightning Network enhance blockchain scalability?

Accepted Answer

Uses micropayment channels for fast and cheap transactions

Answer

Creates a separate network independent of the main blockchain

Answer

Eliminates block confirmations for instant transactions

Answer

Requires significant computational resources to operate

Question 2

Which of the following is a primary benefit of layer-2 solutions for enhancing blockchain scalability?

Accepted Answer

Faster transaction processing times

Answer

Increased block size on the main blockchain

Answer

Reduced hardware requirements for blockchain nodes

Answer

Lower energy consumption

Question 3

What is the core mechanism employed by the Lightning Network, a prominent layer-2 solution, to facilitate rapid transaction processing?

Accepted Answer

State channels

Answer

Proof-of-Work

Answer

Sharding

Answer

Plasma

Question 4

How does sharding contribute to blockchain scalability?

Accepted Answer

By dividing the blockchain into smaller, manageable segments

Answer

By increasing the size of each block

Answer

By reducing the number of transactions per block

Answer

By eliminating the need for miners

Question 5

Which of the following is NOT a potential advantage of implementing Layer-2 solutions?

Accepted Answer

Reduced decentralization

Answer

Lower transaction fees

Answer

Enhanced transaction throughput

Answer

Improved security

Question 6

Which of the following is a potential security vulnerability associated with Layer-2 solutions?

Accepted Answer

Centralization of authority

Answer

Reduced block sizes

Answer

Lack of immutability

Answer

Increased transaction volume

Question 7

Which of the following principles forms the basis of many Layer-2 solutions?

Accepted Answer

Separation of consensus and transaction processing

Answer

Enhancing data availability

Answer

Maximizing block size

Answer

Minimizing gas fees

Question 8

What is the primary function of the Lightning Network?

Accepted Answer

To enable off-chain transactions on the Bitcoin blockchain

Answer

To improve the security of blockchain transactions

Answer

To provide interoperability between different blockchains

Question 9

Which of the following is a potential limitation of Layer-2 solutions?

Accepted Answer

They may introduce additional security risks

Answer

They are incompatible with all blockchain protocols

Answer

They significantly increase transaction costs

Answer

They always require a high transaction volume to be effective

Question 10

How do Layer-2 solutions generally achieve scalability?

Accepted Answer

By processing transactions off the main blockchain

Answer

By reducing the number of nodes in the blockchain network

Answer

By increasing the block size of the blockchain

Answer

By using more powerful computing resources

Question 11

What is a key difference between a Rollup and a Sidechain?

Accepted Answer

Rollups are processed on the main chain while Sidechains are separate blockchains

Answer

Sidechains can handle more transactions than Rollups

Answer

Rollups are more secure than Sidechains

Question 12

How does Optimistic Rollup enhance the security of Layer-2 solutions?

Accepted Answer

By using fraud proofs to challenge invalid transactions

Answer

By requiring a higher minimum transaction value

Answer

By implementing multi-signature verification

Question 13

How do Layer-2 solutions contribute to the overall interoperability of the blockchain ecosystem?

Accepted Answer

By facilitating cross-chain communication and asset transfers

Answer

By standardizing the programming languages used in blockchain development

Answer

By reducing the energy consumption of blockchain transactions

Question 14

Which of the following is NOT a primary objective of layer-2 solutions?

Accepted Answer

Increasing transaction costs

Answer

Enhancing transaction speed

Answer

Improving scalability

Answer

Reducing network congestion

Question 15

Which of the following layer-2 protocols is specifically designed for fast and efficient off-chain transactions for Bitcoin?

Accepted Answer

Lightning Network

Answer

Polygon

Answer

Optimistic Rollups

Answer

Arbitrum

Question 16

What is the primary role of state channels within the context of layer-2 solutions?

Accepted Answer

Facilitating off-chain transactions between multiple participants

Answer

Providing interoperability between different blockchains

Answer

Verifying the validity of transactions and preventing fraud

Answer

Managing balances and facilitating cross-chain transfers

Question 17

Which of the following is a potential limitation associated with zk-rollups?

Accepted Answer

They require significant computational resources for transaction verification.

Answer

They are vulnerable to quantum computing attacks

Answer

They are prone to network congestion and slow transaction times

Answer

They are incompatible with all existing blockchains

Question 18

What is the main distinction between sidechains and layer-2 solutions?

Accepted Answer

Sidechains operate with their own independent consensus mechanism, unlike layer-2 solutions.

Answer

Sidechains are more widely adopted and easier to implement than layer-2 solutions

Answer

Layer-2 solutions are more secure and have higher transaction capacities than sidechains

Answer

Layer-2 solutions require significant computational resources, while sidechains do not

Question 19

How do off-chain transactions enabled by layer-2 solutions impact the security of the underlying blockchain?

Accepted Answer

They reduce the load on the main blockchain, potentially mitigating network congestion and enhancing overall security

Answer

They weaken the consensus mechanisms and immutability guarantees of the blockchain

Answer

They introduce new security vulnerabilities and increase the risk of malicious attacks

Answer

They have no significant impact on the security of the underlying blockchain

Question 20

Which Layer-2 scaling solution enables off-chain transactions using a network of nodes to route payments, increasing transaction throughput?

Accepted Answer

Lightning Network

Answer

Plasma

Answer

Rollups

Question 21

The Lightning Network achieves faster transaction speeds and lower fees primarily through the use of which mechanism?

Accepted Answer

State channels

Answer

Smart contracts

Answer

Proof-of-Stake consensus

Answer

Zero-knowledge proofs

Question 22

For a user seeking to send a small amount of Bitcoin quickly and cheaply, which Layer-2 solution is most appropriate?

Accepted Answer

Lightning Network

Answer

Plasma

Answer

Sharding

Answer

Rollups

Question 23

Which Layer-2 solution aims to improve scalability by partitioning the blockchain into smaller shards, each processing a subset of transactions?

Accepted Answer

Sharding

Answer

Lightning Network

Answer

Plasma

Answer

Rollups

Question 24

Rollups, as a Layer-2 scaling solution, primarily focus on:

Accepted Answer

Batching transactions off-chain and submitting them to the main chain in a single transaction

Answer

Creating separate blockchains for different applications

Answer

Utilizing a network of nodes to route payments

Question 25

Which statement about Layer-2 scaling solutions is incorrect?

Accepted Answer

They inherently increase the security of transactions compared to on-chain transactions

Answer

They can introduce complexity in implementation and deployment

Answer

They may introduce potential for centralized control or single points of failure

Question 26

What is a major advantage of Layer-2 scaling solutions over simply increasing the block size of the main blockchain?

Accepted Answer

They improve scalability while preserving the security and decentralization of the main blockchain

Answer

They reduce development costs and complexity

Answer

They enhance compatibility with existing blockchain applications