Blockchain
Q1) Attempt any EIGHT of the following (out of TEN. [8 x 1 = 8]
● a) What is Non-repudiation?
Non-repudiation, in the context of blockchain, refers to the assurance that a party cannot
deny the authenticity of their signature on a document or the sending of a message that
they originated.
● b) What is difficulty in a block?
In blockchain, "difficulty" is a measure of how hard it is to find a hash that is below a
given target. This value is adjusted periodically to maintain a consistent block creation
time.
● c) In which network, each & every node itself is a client and server?
In a peer-to-peer network, each and every node acts as both a client and a server.
● d) What is Ether?
Ether is the native cryptocurrency of the Ethereum blockchain, which functions as a
peer-to-peer currency and supports smart contracts.
● e) What is consensus?
Consensus refers to the process by which all nodes in a blockchain network agree on
the validity of transactions and the order in which they are added to the blockchain.
Consensus algorithms are used to achieve this decentralized agreement.
● f) What is full node?
A full node is a computer that participates in a blockchain network by validating
transactions and maintaining a complete copy of the entire blockchain.
● g) What is Remix?
Remix is an open-source web and desktop application designed for developing,
compiling, deploying, and debugging smart contracts, primarily those written in Solidity.
● h) What is immutable ledger?
An immutable ledger, in blockchain, is a record of data that, once recorded, cannot be
altered or changed. This means the transactions stored on the blockchain are
irreversible.
● i) Define genesis block.
The genesis block is the very first block in a blockchain, also known as block 0. It is
unique because it does not refer to a previous block and serves as the foundation for all
subsequent blocks in the chain.
● j) What is EVM?
EVM stands for Ethereum Virtual Machine. It is a runtime environment for executing
smart contracts on the Ethereum blockchain. Its memory consists of storage
(permanent), memory (temporary during execution), and stack (temporary for
operations).
Q2) Attempt any FOUR of the following (out of FIVE): [4 x 2 = 8]
● a) Define Symmetric and asymmetric key cryptography.
○ Symmetric Key Cryptography: This method uses a single, secret key for both
encrypting and decrypting information.
○ Asymmetric Key Cryptography: This method uses a pair of keys: a public key
Blockchain
for encryption and a private key for decryption. This is commonly used in
blockchain for secure transactions and generating public and private keys.
● b) What is stream cipher & block cipher?
○ Stream Cipher: Encrypts plaintext data one digit or bit at a time.
○ Block Cipher: Encrypts plaintext data in fixed-size blocks (e.g., 64 or 128 bits) at
a time.
● c) List the applications of hash function.
Hash functions play a crucial role in blockchain by transforming input data into a
fixed-size string of characters. Key applications include:
○ Ensuring data integrity and verifying data using Merkle trees.
○ Creating unique identifiers for blocks in the blockchain.
○ Generating digital signatures for secure transactions.
○ Password hashing for security.
● d) What is Gas and Gas Limit?
○ Gas: In Ethereum, Gas is a unit that measures the computational effort required
to execute operations or transactions on the blockchain. Users pay gas fees to
incentivize miners.
○ Gas Limit: This is the maximum amount of gas a user is willing to spend on a
particular transaction. Gas usage depends on the storage and instructions used
in a smart contract.
● e) What is the purpose of test network? List Ethereum testnets.
○ Purpose of Test Network: Test networks (testnets) provide a simulated
environment for developers to test decentralized applications (dApps) and smart
contracts without using real cryptocurrency, thus avoiding financial risk.
○ Ethereum Testnets: Examples include Sepolia, Goerli, and Holesky.
Q3) Attempt any TWO of the following (out of THREE): [2 x 4 = 8]
● a) Compare client server & peer to peer architecture.
○ Client-Server Architecture: This is a centralized model where clients request
services or resources from a central server. The server manages and provides
access to data. Traditional databases often rely on this centralized authority.
○ Peer-to-Peer (P2P) Architecture: This is a decentralized model where all
participating nodes act as both clients and servers. Data is replicated and shared
among multiple nodes, eliminating the need for a central authority and making
the network more resistant to alteration or hacking.
● b) Explain the contents of block of a blockchain.
A block in a blockchain is a container for a list of records, primarily transaction data.
Each block typically consists of:
○ Block Header: Contains metadata such as the hash of the previous block
(linking it to the chain), a timestamp, a nonce (a number used in the mining
process), and the Merkle root (a hash of all transactions in the block).
○ Transaction Data: A collection of verified transactions.
● c) Explain Ethereum architecture with neat diagram.
While a diagram cannot be provided in this format, the Ethereum architecture is a
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decentralized system built around several key components:
○ Nodes: Computers that run the Ethereum software, validate transactions, and
store a copy of the blockchain.
○ Ethereum Virtual Machine (EVM): A runtime environment for executing smart
contracts.
○ Accounts: There are two types: Externally Owned Accounts (EOAs) controlled
by private keys, and Contract Accounts controlled by their smart contract code.
○ Transactions: Cryptographically signed instructions from one account to
another, which can transfer Ether or interact with smart contracts.
○ Smart Contracts: Self-executing agreements with the terms directly written into
code, deployed on the blockchain.
Q4) Attempt any TWO of the following (out of THREE): [2 x 4 = 8]
● a) Enumerate and explain types of blockchain.
There are primarily four types of blockchain networks:
○ Public Blockchains: These are open to anyone, fully decentralized, and allow
any participant to join the network, validate transactions, and add blocks.
Examples include Bitcoin and Ethereum.
○ Private Blockchains: These are controlled by a single organization, which
restricts access and participation to selected entities or individuals.
○ Consortium Blockchains: Partially decentralized, these are controlled by a
group of organizations rather than a single one.
○ Hybrid Blockchains: These combine elements of both public and private
blockchains, leveraging the benefits of both.
● b) Write a short note on ICO.
An Initial Coin Offering (ICO) is a fundraising method used by new cryptocurrency
projects. In an ICO, a project sells a certain amount of its newly issued crypto tokens to
early investors in exchange for other established cryptocurrencies (like Bitcoin or
Ethereum) or fiat money.
● c) Explain forking with types.
A fork in a blockchain refers to a split in its protocol, which can occur due to software
upgrades, disagreements within the community, or the deliberate creation of a new
blockchain with modified rules. Forks are categorized into two main types:
○ Soft Fork: A backward-compatible change to the blockchain's protocol. Nodes
that do not upgrade can still operate on the network.
○ Hard Fork: A non-backward-compatible change that results in a permanent
divergence from the previous version of the blockchain. Nodes must upgrade to
the new protocol to continue participating in the new chain. Examples include
Bitcoin Cash and Bitcoin Satoshi Vision, which forked from Bitcoin.
Q5) Attempt any ONE of the following (out of TWO): [1 x 3 = 3]
● a) Explain the uses of SHA-256 algorithm.
The SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function widely
Blockchain
used in blockchain technology. Its primary uses include:
○ Generating Block Hashes: In blockchains like Bitcoin, SHA-256 is used to
generate the unique hash identifier for each block.
○ Transaction Verification: It processes transaction details to create a hash,
which is crucial for verifying the integrity of transactions.
○ Digital Signatures: It plays a role in creating digital signatures to secure
transactions.
○ Password Hashing: It is also used for securely storing passwords by hashing
them.
● b) What are the tasks of miners?
Miners are essential participants in a blockchain network, particularly in Proof of Work
(PoW) systems. Their key tasks include:
○ Verifying and Validating Transactions: Miners confirm the legitimacy of
transactions on the network.
○ Grouping Transactions into Blocks: They collect pending transactions and
assemble them into new blocks.
○ Solving Cryptographic Puzzles: In PoW, miners compete to solve complex
computational puzzles. The first to solve the puzzle earns the right to add the
next block.
○ Adding New Blocks to the Blockchain: Once a puzzle is solved, the new block
is added to the distributed ledger.
○ Securing the Network: By performing these tasks, miners contribute to the
security and integrity of the blockchain, preventing fraudulent activities like
double-spending.