1. What are the limitations of blockchain Technology.

--- > Blockchain technology provides security and transparency, but it also
has some limitations.

 Limitations of Blockchain:

1. Scalability Problem:
Blockchain networks process transactions slowly when the number
of users increases.

2. High Energy Consumption:

Some blockchain systems require large computational power, which
consumes a lot of electricity.

3. Storage Requirement:
Every node stores the complete blockchain data, so large storage
space is required.

4. High Cost:
Implementing and maintaining blockchain systems can be
expensive.

5. Lack of Regulations:
Blockchain technology is still new, so many countries do not have
proper rules and regulations.

6. Complex Technology:
Understanding and implementing blockchain requires technical
knowledge.
 2. What is Cryptography? Explain role of Cryptography in Blockchain.

Cryptography is a technique used to secure information by converting it

into a secret code so that only authorized users can read it.

 Role of Cryptography in Blockchain:

1. Provides Security:
Cryptography protects transaction data from unauthorized access.

2. Hashing:
Each block in the blockchain has a unique hash value, which helps in
linking blocks together and maintaining data integrity.

3. Digital Signatures:
Cryptography is used to create digital signatures, which verify the
identity of the sender in a transaction.

4. Data Integrity:
If someone tries to change the data in a block, the hash value changes,
and the network can detect the tampering.

5. Authentication:
It ensures that only authorized users can perform transactions in the
blockchain network.

3. Explain Elliptic curve cryptography.

Elliptic Curve Cryptography (ECC) is a type of public key cryptography that
uses mathematical equations of elliptic curves to secure data.

 Key Points:

1. Public Key Cryptography:

ECC uses two keys: a public key for encryption and a private key for
decryption.

2. Elliptic Curve Mathematics:

Mathematical equations of elliptic curves is used to generate secure keys.

3. High Security:
ECC provides strong security even with smaller key sizes compared
to other cryptographic methods.

4. Efficient Performance:
Since the key size is smaller, ECC requires less storage and less
processing power.

5. Use in Blockchain:
ECC is used in blockchain to create digital signatures and verify
transactions securely (for example in cryptocurrencies like Bitcoin).

4. Demonstrate symmetric key cryptography. What are pros and cons of it.
Symmetric key cryptography is a method of encryption where the same
key is used for both encryption and decryption of data.

 Working (Demonstration):

 The sender and receiver share a secret key.

 The sender uses this key to encrypt the message.

 The encrypted message is sent over the network.

 The receiver uses the same key to decrypt the message and
read the original data.

Example:
Message → Encryption using Secret Key → Cipher Text → Decryption
using Same Key → Original Message

 Advantages (Pros):

1. Fast Encryption:
Symmetric key cryptography is faster than other encryption
methods.

2. Less Computational Power:

It requires less processing power.

3. Efficient for Large Data:

Suitable for encrypting large amounts of data.

 Disadvantages (Cons):

1. Key Distribution Problem:

Sharing the secret key securely between sender and receiver is
difficult.

2. Security Risk:
If the key is stolen, the attacker can decrypt all messages.

3. Scalability Issue:
Managing many keys becomes difficult in large networks.

5. Compare Symmetric key and Asymmetric key Cryptography.

Symmetric Key Cryptography Asymmetric Key Cryptography

Uses one secret key for both Uses two keys: public key and
encryption and decryption. private key.

The same key is shared between Public key is shared, private key is
sender and receiver. kept secret.

Faster encryption and decryption. Slower compared to symmetric

cryptography.

Suitable for encrypting large Suitable for secure communication

amounts of data. and authentication.

Key distribution is difficult because Key distribution is easier because

the key must be shared secretly. public key can be shared openly.

Requires less computational power. Requires more computational

power.

Security depends on protecting the Security depends on public and

secret key. private key pair.

Used in data encryption and file Used in digital signatures and

protection. secure key exchange.

6. Differentiate between Centralised and Decentralized system.

Centralized System Decentralized System

Control is managed by a single Control is distributed among

central authority. multiple nodes.

All data is stored in one central Data is stored across many

server. computers in the network.

If the central server fails, the whole Failure of one node does not
system may stop working. affect the whole system.

Less transparency because More transparency because many

authority controls the data. nodes verify the data.

Higher risk of hacking since there is More secure because data is

a single point of attack. distributed.

Easier to manage and update. More complex to manage.

7. Write short note on-

1. Cryptocurrency

Introduction:
Cryptocurrency is a digital or virtual currency that uses cryptography
for secure transactions.

Key Points:

1. It works on blockchain technology to record transactions.

2. It is decentralized, meaning no central authority like a bank

controls it.

3. Transactions are secure and transparent.

4. It can be used for online payments and money transfer.

5. Popular examples include Bitcoin and Ethereum.

Conclusion:
Cryptocurrency allows secure and fast digital transactions without
intermediaries.

2. Decentralized System

Introduction:
A decentralized system is a system where control and data are
distributed among multiple nodes instead of a single central
authority.

Key Points:

1. There is no single controlling authority.

2. Data is stored on multiple computers in the network.

3. The system is more secure and transparent.

4. Failure of one node does not affect the whole system.

5. Blockchain technology works on a decentralized network.

Conclusion:
A decentralized system provides better security, transparency, and
reliability compared to centralized systems.

8. Explain Stream cipher and Block cipher.

Stream cipher and block cipher are two techniques used in symmetric
key cryptography to encrypt data.

1. Stream Cipher

Definition:
A stream cipher encrypts data one bit or one byte at a time.

Key Points:

1. Data is encrypted bit by bit or byte by byte.

2. It uses a secret key and a keystream for encryption.

3. It is fast and efficient for real-time communication.

4. Commonly used in network communication and wireless

systems.

5. Example: RC4.

2. Block Cipher

Definition:
A block cipher encrypts data in fixed-size blocks (for example 64-bit or
128-bit blocks).

Key Points:

1. Data is divided into blocks before encryption.

2. Each block is encrypted separately using a secret key.

3. It provides higher security for large data.

4. Commonly used in file encryption and data protection.

5. Example: AES.

9. Explain algorithm RSA & SHA 256.

 1. Define Blockchain. What are the important features of it?
Also explain the generic features of Blockchain.

Blockchain is a technology used to store transaction data in blocks.

These blocks are connected one after another forming a chain.
The data stored in blockchain is secure and cannot be easily changed.

Example: Cryptocurrency like Bitcoin uses blockchain to store

transactions.

Important Features of Blockchain

1. Decentralization – No single person or organization controls the

system.

2. Transparency – All users in the network can see the transactions.

3. Security – Data is protected using cryptography.

4. Immutability – Once data is stored, it cannot be changed.

Generic Features of Blockchain

1. Peer-to-Peer Network – Computers in the network directly

communicate with each other.

2. Consensus – All nodes agree before adding a new block.

3. Timestamp – Each block stores the time of the transaction.

4. Distributed Ledger – Data is stored on many computers in the

network.
 DTSI +
PCTD
2. List & Explain types of Blockchain?

1. Public Blockchain

It is a blockchain that is open to everyone.

Anyone can join the network, read data, and perform transactions.
Example: Bitcoin, Ethereum

2. Private Blockchain

It is controlled by a single organization.

Only authorized users can access and participate in the network.

3. Hybrid Blockchain

It is a combination of public and private blockchain.

Some data is public, while some data is kept private for security.

4. Consortium Blockchain

This blockchain is managed by a group of organizations instead of 1 single

organization.
It is commonly used in banking and business collaborations

3. Explain the evolution of blockchain with timeline

Evolution of Blockchain
1. 1991 – Idea of Blockchain
The concept of blockchain was first introduced by Stuart Haber & W.
Scott Stornetta.
They created a system to secure digital documents using
cryptography and timestamps.
2. 2008 – Introduction of Bitcoin
A person (or group) named Satoshi Nakamoto introduced blockchain
technology in the whitepaper of Bitcoin.
3. 2009 – First Blockchain Network
Bitcoin network started working & the first blockchain transaction was
recorded.
4. 2015 – Smart Contracts
Ethereum introduced smart contracts, allowing developers to build
applications on blockchain.
5. Present – Multiple Applications
Today blockchain is used in banking, supply chain, healthcare, digital
identity, and many other industries.
4. What are cryptocurrencies? Give the pros and cons of
cryptocurrency? Which are the different types of
cryptocurrencies are available?

Cryptocurrency is a digital or virtual currency that uses blockchain

technology and cryptography to make secure transactions.
It works without any central authority like banks or governments.

Example: Bitcoin, Ethereum

Advantages (Pros): -

1. Secure Transactions – Uses cryptography for security.

2. No Middleman – Transactions happen directly between users.

3. Fast Transactions – Transfers can be done quickly.

4. Global Access – Can be used anywhere in the world.

Disadvantages (Cons): -

1. High Price Volatility – Prices change very quickly.

2. Illegal Activities Risk – Sometimes used for illegal transactions.

 3. No Government Control – Difficult to regulate.

4. Risk of Losing Wallet Keys – If keys are lost, money cannot be

recovered.

Types of Cryptocurrencies: -

1. Bitcoin – First and most popular cryptocurrency.

2. Altcoins – Cryptocurrencies other than Bitcoin. Example: Ethereum

3. Stablecoins – Cryptocurrencies with stable value. Example: Tether

5. Explain the emergence of Bitcoin.

Emergence of Bitcoin

1. 2008 – Introduction

Bitcoin was introduced in 2008 by Satoshi Nakamoto through a

research paper called “Bitcoin: A Peer-to-Peer Electronic Cash System”.

2. Purpose

It was created to provide a digital currency that works without banks

or central authorities.

3. 2009 – First Bitcoin Network

In 2009, the Bitcoin network started, and the first block called the
Genesis Block was created.

4. Peer-to-Peer Transactions

Bitcoin allows users to send and receive money directly through a

peer-to-peer network.

5. Use of Blockchain

All Bitcoin transactions are stored in a blockchain, making them secure

and transparent.
 6. Explain transaction life cycle in Bitcoin. Also explain the
transactions in Bitcoin.

Bitcoin Transaction

A Bitcoin transaction is the transfer of Bitcoin from one user to

another through the blockchain network.

Example: A user sends Bitcoin to another user using a digital wallet.

Transaction Life Cycle in Bitcoin

1. Transaction Creation
A user creates a transaction using a Bitcoin wallet to send Bitcoin
to another user.

2. Broadcast to Network
The transaction is broadcast to the peer-to-peer network for
verification.

3. Transaction Verification
Network nodes check if the transaction is valid and the sender
has enough balance.

4. Block Creation
Verified transactions are grouped together into a block.
 5. Block Added to Blockchain
The block is added to the blockchain, and the transaction
becomes permanent.

7. What is bitcoin mining? Explain the functionality of minors.

Bitcoin Mining

Bitcoin mining is the process of verifying Bitcoin transactions and

adding them to the blockchain.
Miners use powerful computers to solve complex mathematical
problems.

Example: Mining is used in Bitcoin to maintain the blockchain network.

Functions of Miners

1. Verify Transactions
Miners check whether the Bitcoin transactions are valid.

2. Create New Blocks

Verified transactions are grouped together to form a new block.

3. Add Block to Blockchain

After solving the mathematical problem, the miner adds the block
to the blockchain.

4. Receive Reward
The miner who solves the problem gets Bitcoin as a reward.
 8. Explain platforms for Decentralization.

Decentralization Platforms

Decentralization platforms are blockchain platforms that allow

developers to build decentralized applications (DApps) without a
central authority.

Types of Decentralization Platforms

1. Ethereum
It is a popular blockchain platform used to create smart contracts
and decentralized applications.

2. EOS
EOS is a platform designed to support fast and scalable
decentralized applications.

3. Cardano
Cardano is a blockchain platform that focuses on security and
sustainability.

4. Polkadot
Polkadot allows different blockchains to connect and share
information.