Key Crypto Interview Questions for Better Hires

Blockchain technology is an emerging technology that we have yet to fully understand.

There are many companies looking to create the next big blockchain solution, thus making the industry full of opportunities. Blockchain can be used in a plethora of fields and can influence many advancements in cryptography, documentation, and security. If you’re looking for a prime candidate, you’ll need to arm yourself with these crypto interview questions. 

But before we reveal these questions, we need to establish a few basic concepts. We start by explaining the technology that makes cryptocurrencies possible.

What is Blockchain Technology?

Blockchain technology is a public and immutable ledger of all block transactions. This ledger is a list of records called blocks, and these blocks are added to the ledger in chronological order.

The system comprises a series of nodes or validators that cross-reference the accounts of two transacting users. They evaluate whether both parties have the resources necessary to accomplish the transaction.

Once the validators confirm both parties have the necessary resources, they update the ledger with the new ownership. They then encrypt the validated ledger data. This is called a “block.” The nodes then add the new block to a pre-existing chain of blocks. Hence, the term “blockchain.”

Blockchain technology’s main selling points are its transparency and security. It also allows developers to create decentralized platforms. It solves many problems in traditional banking systems, such as control, security, and others.

Many developers use blockchain technology to create their own ecosystems. 

The Importance of Interview Questions

The blockchain industry is still in a relatively nascent state. It’s a world full of possibilities that we have yet to realize. We’ve only scratched the surface in terms of technology’s applicability in different fields and different purposes. 

The main importance of an interview lies in measuring a candidate’s competencies relative to your job posting’s requirements. It’s a way to verify a candidate’s suitability for a role.

Blockchain interview questions are all about eliciting important information and giving candidates a chance to clarify details in their resumes. 

Remember, if you want to gain valuable insights, you’ll need to ask the right questions. 

This is why interviewers must prepare their questions beforehand. It provides structure to the interview, which in turn, leads to keeping the conversation focused on relevant topics. 

For interviewers, studying these interview questions allows them to focus on certain topics during their review. Interview anxiety should not be a problem when you have the chance to learn about key topics.

Here are some topics you should understand prior to your interview.

Basic Crypto Interview Questions

• What is Blockchain?
• How does blockchain work?
• Why is blockchain a trusted approach?
• What are the major elements of a block?
• What are the different types of blockchains?
• Explain the difference between public and private keys.
• What is Cryptocurrency?
• What are the key principles in a blockchain that help eliminate security threats?
• Explain Secret Sharing. 
• What is an RSA algorithm?
• What are the different types of blockchains?
• Explain ledgers and the common types blockchain users acknowledge.
• What is the difference between public and private keys?
• Name the major features of blockchain.
• How are blocks sequentially linked?
• What is the Bitcoin Improvement Proposal?
• What is encryption, and why is it vital to blockchain?
• How does a blockchain ledger differ from traditional ledgers?
• Explain the consensus algorithm.
• Enumerate the types of consensus algorithms.
• What is the most commonly-used cryptographic algorithm in blockchain?
• What are cryptocurrencies?
• Enumerate and explain the core components of blockchain technology.
• Do some blocks have a parent block?
• What is a smart contract?

Advanced Crypto Interview Questions

• What is double-spending?
• Explain the concept of a blind signature.
• How do you eliminate security threats in blockchain?
• Differentiate proof of stake from proof of work.
• What is a 51% attack?
• What is a Coinbase transaction?
• Why are Merkle trees important in blockchain?
• What security measures protect blockchain data?
• What is a security policy?
• Explain trapdoor functions in blockchain development.
• Why are coins and tokens essential to blockchain development?
• Differentiate a scriptPubKey from a P2SHaddress.
• Explain the bitcoin mining process.
• What are the steps in implementing a blockchain project?
• What are the differences between on-chain and off-chain transactions?

In Summary

Blockchain technology is much more than just a means to create decentralized financial platforms. It can have a significant impact on healthcare, the legal sector, and education. It is an industry full of potential. 

Treat this list of questions as a guide for gauging a candidate’s competencies. We hope this information serves you well in the near future. Good luck, gentle reader!