Meerut Institute of Engineering & Technology, Meerut
Course: [Link] (Emerging Trends – I)
Subject Code: MVA 101
Semester: I
Assignment: Unit 3 – Blockchain (ET)
Q1. Describe the structure of blockchain.
A blockchain is a distributed, immutable digital ledger that records transactions across a
network of computers. It consists of a chain of blocks linked together using cryptographic
techniques.
Structure of a Block:
1. Block Header – Contains metadata such as block number, timestamp, nonce, previous
block hash, and Merkle root hash.
2. Block Body – Contains the actual list of transactions.
Structure of the Blockchain:
- Genesis Block: The first block of the chain.
- Linked Blocks: Each block contains the hash of the previous one, forming a secure chain.
- Nodes: Computers in the network that maintain copies of the blockchain.
- Consensus Mechanism: Rules (like Proof of Work or Proof of Stake) that allow all nodes
to agree on the current state of the blockchain.
Q2. Classify different types of blockchain.
Blockchains can be classified based on accessibility and control:
1. Public Blockchain – Open to everyone (e.g., Bitcoin, Ethereum). Fully decentralized.
2. Private Blockchain – Controlled by a single organization. Faster but less decentralized.
3. Consortium Blockchain – Controlled by a group of organizations (e.g., Hyperledger
Fabric).
4. Hybrid Blockchain – Combines public and private features (e.g., Dragonchain).
Q3. Explain in detail the seven principles of blockchain.
1. Integrity – Every transaction is verified and permanently recorded.
2. Transparency – All participants can view transactions.
3. Decentralization – No central authority; data is shared across nodes.
4. Security – Cryptographic algorithms protect data.
5. Immutability – Data cannot be changed once added.
6. Consensus – Transactions validated through mechanisms like PoW or PoS.
7. Smart Contracts – Self-executing code that enforces rules automatically.
Q4. What is cryptocurrency? Write down the key features of Bitcoin.
Cryptocurrency is a digital or virtual currency that uses cryptography for security and
operates on a decentralized blockchain network.
Key Features of Bitcoin:
1. Decentralized – No central authority; operates on a peer-to-peer network.
2. Limited Supply – Only 21 million bitcoins can ever exist.
3. Transparency – All transactions visible on the public ledger.
4. Security – Uses SHA-256 encryption and Proof of Work.
5. Pseudonymity – Transactions linked to wallet addresses, not personal identities.
6. Global Accessibility – Can be used anywhere worldwide.
Q5. What is a smart contract? Explain in detail its advantages.
A smart contract is a self-executing digital contract with predefined rules written in code
and stored on the blockchain. It automatically triggers actions when conditions are met.
Advantages:
1. Automation – Reduces manual intervention.
2. Transparency – All terms are visible to participants.
3. Security – Tamper-proof and immutable.
4. Cost Efficiency – Eliminates intermediaries.
5. Speed – Executes instantly when conditions are fulfilled.
6. Trust – Operates based on predefined logic.
Q6. Describe in detail the application areas/uses of blockchain.
Applications of Blockchain:
1. Cryptocurrency & Payments – Fast and secure global transactions.
2. Supply Chain Management – Improves traceability and reduces fraud.
3. Healthcare – Secure sharing of medical data.
4. Voting Systems – Transparent and tamper-proof elections.
5. Banking & Finance – Simplifies settlements and reduces fraud.
6. Real Estate – Simplifies property transfer and verification.
7. Government Services – Increases transparency in record keeping.
8. Intellectual Property – Protects copyrights and digital assets.