Question

Passage: Blockchain technology, initially developed for cryptocurrencies, is being explored for various other applications, including supply chain management, healthcare records, and voting systemsThe decentralized and transparent nature of blockchain can enhance security and reduce fraudHowever, the technology faces challenges such as scalability issues and high energy consumption.
What is one challenge mentioned in the passage regarding blockchain technology?

• A. Blockchain lacks applications in healthcare
• B. Blockchain is centralized
• C. Blockchain faces scalability issues
• D. Blockchain is not secure
• E.

Hint:

When evaluating technological challenges, focus on limitations or issues explicitly mentioned, such as performance constraints or resource demands

Answer 1

The Correct Option is C

According to the passage, while blockchain technology offers benefits such as decentralization, transparency, enhanced security, and fraud reduction, it also has challengesOne key challenge explicitly mentioned is scalability issues, which refers to difficulties in handling an increasing number of transactions efficiently
Option (A) is incorrect because the passage states blockchain is being explored for healthcare records, indicating applications existOption (B) is incorrect as blockchain is described as decentralized, not centralizedOption (D) contradicts the passage which highlights enhanced security due to blockchain’s nature
Therefore, option (C) correctly identifies a challenge discussed in the passage