BLOCKCHAIN
1. Define Fork. Types of forks, Characteristics.
Ans: A fork is a method where a blockchain’s rules or transaction history split
into two different paths because nodes are disagreed with blocks or rules those
are valid.
There are 2 types of forks are there:
• Hard Fork.
• Soft Fork.
➢ Hard Fork: - A hard fork is a permanent & non-backward-compatible
change to a blockchain’s rules, so that nodes are running the old version of
the software that will be rejected by new nodes those are running the new
software versions.
➢ Soft Fork: - A soft fork is a backward-compatible change that tightens or
restricts blockchain rules so upgraded the nodes, those are rejected for
some old-style transactions & blocks created under the new rules are still
accepted by non-upgraded nodes.
Characteristics of Hard Fork (2 marks):
• Non-backward-compatible → old nodes cannot accept new-rule blocks.
• High chance of permanent chain split if some users don’t upgrade.
• Requires full network upgrade to stay on the same chain.
• Can create two separate cryptocurrencies after the split.
Characteristics of Soft Fork (2 marks):
• Backward compatible → old nodes can still accept new blocks.
• Very low chance of chain split if majority supports the update.
• Only upgraded nodes enforce the new stricter rules.
2. Define Consensus Mechanisms.
Ans: A Consensus Mechanism is a set of rules or protocols those are used in a
decentralized blockchain network to achieve agreement among all nodes on the
single one.
Purpose: It ensures agreement, prevents double-spending, and secures the
network by deciding which blocks/transactions are accepted.
Major types: Common examples are Proof of Work (PoW) — miners solve
puzzles (e.g., Bitcoin), and Proof of Stake (PoS) — for validate blocks (e.g.,
Ethereum post-merge).
Key characteristics: Consensus methods trade off security, decentralization,
scalability and energy use.
3. Define Meta-mask, uses, Advantages & Disadvantages.
Ans: MetaMask is a popular crypto wallet & gateway to the decentralized web
(Web3), acting as a browser extension to manage digital assets (tokens, NFTs)
and interact with blockchain apps on networks like Ethereum.
Uses:
• Send/receive tokens and sign transactions.
• Connect to decentralized apps (NFT marketplaces).
• Import/export keys and connect hardware wallets.
• Store and manage ETH and ERC-20/ERC-721 tokens.
Advantages:
• Easy to use and widely supported by dApps.
• You control your private keys.
• Works across many EVM chains and supports hardware wallets.
• Quick dApp integration with a single click.
Disadvantages:
• User is fully responsible for their private keys, if it will stole.
• Transaction fees (gas) can be high on busy networks.
• Can be confusing for beginners (network selection, gas settings, scams).
4. Define Solidity. Data types & Syntax.
Ans: Solidity is a high-level, object-oriented programming language used to
write smart contracts on the Ethereum blockchain and other EVM-compatible
networks.
Data Types:
• Value types: uint, int, bool, address, bytes, string.
• Fixed-size types: uint8, uint16, uint256, etc.
• Reference types: arrays, structs, mappings.
• Special types: payable (allows receiving ETH), enum (custom choices).
Syntax:
5. Define Hyperledger. Working with diagram.
Ans: Hyperledger is an open-source umbrella project that provides enterprise-
grade, permissioned blockchain frameworks and tools for building private
distributed ledgers.
Working process:
➢ Client creates a transaction proposal.
➢ Endorsing peers execute the proposal and return signed endorsement
responses.
➢ Client collects endorsements and sends the transaction to the ordering
service (orderer).
➢ Orderer takes the transactions into blocks and broadcasts them to all peers
in the channel.
Diagram:
6. Define Double spending problem.
Ans: Double spending is when the same digital money/token is spent more than
once by the same owner.
prevention: Blockchains prevent it by recording transactions in a single shared
ledger and using consensus (e.g., confirmations) so only the first valid transaction
becomes part of the canonical chain.
How to mitigate:
• Node validation: nodes check if coins are already spent and reject
duplicates.
• Strong consensus: blockchain consensus (PoW/PoS) ensures only one
valid transaction is accepted into the main chain.
7. Define EVM.
Ans: The Ethereum Virtual Machine (EVM) is a sandboxed runtime that
executes smart-contract into bytecode and ensures that every node runs the same
code deterministically.
8. Define dApps.
Ans: A decentralized application (dApp) is an application that runs on a
blockchain or decentralized network, using smart contracts for backend logic
instead of a central server.
9. Define Ethereum. Working of Ethereum.
Ans: Ethereum is a decentralized platform (blockchain) that runs smart
contracts, where programs that execute exactly as written enabling apps and
value-transfer without a central authority.
Working principles:
• User requests a transaction (example: send 2 ETH).
• The request is sent as data to the EVM (Ethereum Virtual Machine).
• The EVM processes the transaction and checks if it is valid.
• A valid transaction is forwarded to the user’s wallet.
• The wallet sends the transaction into the distributed Ethereum network.
• Network nodes verify and confirm the transaction.
• After confirmation, the amount (2 ETH) is delivered to the receiver’s
wallet.
• The receiver finally gets the amount (2 ETH).
Diagram:
10. Define Smart Contract.
Ans: A smart contract is a self-executing program stored on a blockchain that
automatically runs and enforces rules or agreements when predefined conditions
are met, without needing any third party.
11. Difference between Hyper ledger & Bitcoin.
Ans:
12. Difference between Hyper ledger and Ethereum.
Ans:
13. Real-World Applications of Ethereum.
Ans:
• Decentralized Finance (DeFi): Lending, borrowing, staking, and
decentralized exchanges (e.g., Uniswap, Aave).
• NFTs & Digital Ownership: Buying, selling, and proving ownership
of digital art, collectibles, and assets.
• Smart Contracts & Automation: Used for automated agreements
like payments, rentals, escrows, and business processes.
• DAOs(Decentralized-Autonomous-Organizations):
Community-run organizations with on-chain voting and governance.
• Gaming & Metaverse: Play-to-earn games, virtual worlds, and
tokenized in-game items.
• Identity & Certification: Verifiable credentials, on-chain identity, and
certificate issuance.
14. Define Gas Limit & Ether.
Ans:
Gas limit is the maximum amount of gas, where a user is willing to spend on a
transaction or smart contract execution in Ethereum.
Ether (ETH) is the native cryptocurrency of Ethereum, used to pay for gas fees,
transactions, and smart contract operations.