 What is blockchain? Explain its importance/need.

Also state its Advantages and

Disadvantages. [ 1) Blockchain combines the terms “block” and “chain”. – A block can be
seen as file that contain information about all transactions that have been processed. – A
chain, the blocks are arranged in linear sequence. 2) a) Blockchain Offers New Career
Opportunities : -There are a lot of reasons why blockchain is important. -there aremany
opportunities to develop applications on top of blockchain platforms.
b) Blockchain Democratizes Access to Finance : -There are a lot of reasons why blockchain is
important. -Blockchain is changing the role of financial institutions in the movement of
money. Blockchain Increases Transparency 3)Advantages Of Blockchain : a) -Immutability :
Blockchain supports immutability. b)-Transparency : Blockchain is changing the role of
financial institutions in the movement of money. Blockchain Increases Transparency.
4)Disadvantages Of Blockchain : a) - Speed and performance : Blockchain is considerably
slower than the traditional database. b) -High implementation cost : Blockchain is costlier
compared to a traditional database.]

 Explain Following Blockchain with example. i) Public ii) Private iii) Consortium iv)
Hybrid [ i) Public Blockchain : -Bitcoin is an example of a public blockchain. -The data on
public blockchains can be accessed by everyone. -Examples of public blockchains: Bitcoin,
Ethereum, Bitcoin, Cash, Litecoin, IOTA. ii) Private Blockchain : -Multichain is an example of
a private blockchain. -The most applications a private blockchain is not necessary. -Examples
of a private blockchain : Multichain iii)Consortium Blockchain : -Consortium blockchain also
called federated blockchains. -The transcation speed is LIghter and faster. -Examples of
Consortium Blockchain: Hyperledger. iv) Hybrid blockchain : -Hybrid blockchain is often
referred to as a combination of both public blockchain and private blockchain. -The hybrid
blockchain owned by a private entity cannot modify the transactions. -Examples of Hybrid
Blockchain: IBM hybrid blockchain, IBM Food Trust.

 What is a Block? Explain its structure diagrammatically. [ 1) Blockchain combines the

terms “block” and “chain”. – A block can be seen as file that contain information about all
transactions that have been processed. 2)- Hash: a hash is the result of a hash function. -
Block heighte : The block height of a block is defined as the number of blocks preceding it in
the Blockchain. – Nonce : A nonce is a random number the miners use to solve a
mathematical puzzle in the mining process. Difficulty : Difficulty in a block is a value that
measures the degree of difficulty to find a hash value for a given target, which represents
the difficulty of mining. - Timestamp : A timestamp in a block is a sequence of characters or
encoded information identifying when a certain event occurred, usually giving date and time
of day. -Merkle : The Merkle tree also known as the hash tree.

 What is a Cryptocurrency? List its examples.[ 1)- Cryptocurrency is a digital currency. –

it is a an alternative form of payment created using encryption algorithum. 2)- 1. Bitcoin
(BTC):One of the most commonly known currencies, Bitcoin is considered an original
cryptocurrency. -2. Litecoin (LTC) : Litecoin was launched in 2011 as an alternative to Bitcoin.
-3. Ethereum (ETH) : Created in 2015, Ethereum is a type of cryptocurrency that is an open
source platform based on blockchain technology. - 4. Bitcoin Cash (BCH) : Bitcoin Cash is a
type of digital currency that was created to improve certain features of Bitcoin.
 Write a Short Note on Evolution of Blockchain.[-The evolution of Blockchain technology
started in 1991. -When research scientists Stuart Haber and W. Scott Stornetta. -Evolution
of blockchain Technology: 1. Bitcoin : -Bitcoin was launched in January 2009. -It is found
by Satoshi Nakamoto. -Bitcoin is a Digital currency for goods or sevices with vendors that
accept bitcoin as payment. - Bitcoin’s market share had declined to 39.6%. 2.Litecoin : -
Litecoin was created in 2011 by Charlie Lee, a former employee of Google. 3.Ethereum:
Ethereum was launched in July 2015 by Vitalik Buterin. . Ethereum is the the second-largest
cryptocurrency after Bitcoin. 4.Ripple: Ripple is a type of cryptocurrency operates on an
open-source. 5.IOTA: Launched in 2016, IOTA stands for Internet of Things (IoT) application
Billions of devices were connected to the Internet by 2020.]

 Write down the type of networks.[ 1) Public Blockchain: Public Blockchain network is
accessible to the public without any limitations of validation and participants.
2) Private Blockchain: It is a restrictive network, only authorised people have access to it.
- some critics believe that a private blockchain is not a blockchain at all.
3)Consortium Blockchain: It is a process where the consensus process is controlled by a pre-
selected set of nodes.a semi- decentralised network where multiple entities operate.
4)Hybrid Blockchain: It is a network that possesses properties of both private and public
blockchain networks.]

 What is a Hash Function ? Explain its purpose and working.[ - A hash function
converts strings of different length into fixed-length strings known as hash values or digests.
- A cryptographic hash function has two main features:
1. Pre-image Resistance: The hash function works in only one direction i.e., we cannot
deduce the input from the output. 2. Collision Resistance: When a hash function produces
the same or identical output for two different inputs, this is called a collision.
-Types of Cryptographic Hash Functions: 1. Secure Hashing Algorithm (SHA-2 and SHA-3).
2. RACE Integrity Primitives Evaluation Message Digest (RIPEMD). 3. Message Digest
Algorithm 5 (MD5). 4. BLAKE2.]

 Explain the Distributed P2P Network. [-P2P network stand for peer to peer network. -
peer to peer Network is a distributed peer to peer Network. – the peer to peer network is a
decentralized all cryptocurrency. – peer to peer network is a decentrialized network
communication.-communication is done without any central administratio or sever.- a peer
to peer network is a decentralized commnication model between two peers also known as
nodes.]

 Describe the defense against attackers.[- Blockchain system is protected with the help
of ledgers and cryptographic keys, attacking and manipulating it becomes extremely
difficult. -Blockchain technology enables decentralization through the participation of
members across a distributed network. - There is no single point of failure and a single user
cannot change the record of transactions. -However, Blockchain technologies differ in some
critical security aspects. -Generally, risk identification, threat prevention, equipment and IT
infrastructure are included in this defense.- Principle of security in blockchain: 1) Penetration
Security 2) Maximum Prerogative 3) Vulnerabilities Detection 4) Patches Control.]
 Write the note on Cryptographic puzzle. [ - A mathmatical puzzel that miners must
solve on proof of work blockchain in order to add their block to the chain.- To mine Bitcoins
and append transactions to the Blockchain, miners solve a cryptographic puzzle. - The
process of solving the cryptographic puzzle is referred to as Proof-of-Work (POW). - PoW is
necessary in order to build consensus among miners in the Blockchain network. -Pow, the
miner with more computational resources has better chance to append its block to the
Blockchain ledger by being the first to solve the cryptographic puzzle. -The Pow consensus
mechanisms required to compute the puzzle are miners to solve complex cryptographic
puzzles so they can add a block to the Blockchain.]

 What is a Ethereum Network. Explain with diagram. [-Ethereum is the hottest

cryptocurreny in the blockchain at present. – The first cryptocurrency created in 2008 is
know as Bitcoin and ethereum is new cryptocurrency invented in 2013.-It is a blockchain
based open source platfrom. – That give the developers the opportunity to build Dapp and
deploy them. – ETH is a transcations token that faciliates operation on the Ethereum
network. – ETH is a ether.-Ethereum is a digital money.]

 What is a Smart Contract.Describe its Working. [- A smart contract is a self-enforcing

agreement embedded in computer code managed by a blockchain. - Smart contract are a
digital contract. – That stored on a blockchain that are automatacally executed. - Working
of Smart Contract : - Smart contracts work by following simple “if/when…then…”
statements that are written into code on a blockchain. - A user initiates a transaction from
their blockchain wallet. - The transaction arrives at the distributed database, where the
identity is confirmed.]

 What is DAO.Explain in details. [ -The DAO stand for the Decentralized Autonomous
Orgnization. -A DAO is the most complex form a smart contract. – A smart contract is a
computer program that autonomously exits on the internet. -A DAO is an entity with no
cental leadership. – Decentralized Autonomous Orgnization are fully autonomous and
transparent. As they are built on open source blockchain anyone can view their code. -
Example of DAOs: i) A Charity: -The world and group can decide how they to spend
donations. ii) A Freelancer Network: We could create a network of contractors who pool
their fuds for office spaces and software subscriptions. iii) Ventures and Grants: We a create
a venture funds that pools investment capital and vote on ventures to back.]

 What is a gas? Why is important in Ethereum. [-Gas is the name for the execution fee
from sender of transaction need to pay for every operation made on an ethereum
blockchain. -Transaction Fee=Total Gas Used*Gas Price. ii)Gas is very important in a
Ethereum : - The key concept in Ethereum is that of “Gas”. -Ethereum is a decentralized
computing platform that uses ETH also called ether to pay transactions fees or “Gas”. –
“Gas” is the name for the execution fee from sender of transaction need to pay for every
operation made on an ethereum blockchain.]
 What is a Fork. What are some of the type of forking.Explain with diagram. [ i) -A
fork is a change the digital currency software which create two differtent path of the
blockchain with a shared History. ii)There are two type of fork in blockchain: a) Hard Fork : A
hard fork requires all nodes or users to upgrade to the latest version of the protocol
software. - A hard fork is a non-backward compatible change in the blockchain software that
introduces a new rule to the network b) Soft Fork : - Updates which are backwards
compatible with prior versions of the Blockchain software are known as soft forks. - A soft
fork is a backward-compatible change in the blockchain software where the rules become
stricter, and less is permitted than in the situation before.]

 Describe EVM with the help of diagram. [ -EVM stand for the Ethereum Virtual Machine.
-EVM is apirce of software that Ethereum network after each new block is added to the
chain. – the purpose of EVM is to serve as a runtime environment for smart contract build
on Ethereum. - EVM is the core engine that runs th ethereum Platfrom. – it is the run time
environment that executes all the smart contracts on the Ethreum network. – the global
super computer executes all the smart contract.The functionality of EVM is restricted to
virtual machine. – Ethereum required a programming language for the EVM.

 Why Does it Cost Money to Invoke a Method of a Smart Contract. [ - Some methods,
which do not modify the state of the contract and have no logic other than returning a
value, are free. -Apart from sending ether as a payment, invoking methods that make
change the state cost money also because they require gas for execution. - Since miners
execute contract code on their machines, they must cover their costs from executing the
code requested by a caller.]

 Explain RSA Algorithm. [ RSA algorithm is an asymmetric cryptography algorithm.

Asymmetric actually means that it works on two different keys i.e. Public Key and Private
Key. >> Generating Public Key: -Select two prime no's. Suppose P = 53 and Q = 59. -Now
First part of the Public key : n = P*Q = 3127. -We also need a small exponent say e : -But e
Must be. -An integer. -Not be a factor of n. -1 < e < Φ(n) [Φ(n) is discussed below],
Let us now consider it to be equal to 3. - Our Public Key is made of n and e.
>> Generating Private Key: -We need to calculate Φ(n) : -Such that Φ(n) = (P-1)(Q-1) -
so, Φ(n) = 3016 -Now calculate Private Key, d : -d = (k*Φ(n) + 1) / e for some integer k
-For k = 2, value of d is 2011. -Now we are ready with our – Public Key ( n = 3127 and e = 3)
and Private Key(d = 2011) Now -we will encrypt “HI” : -Convert letters to numbers : H = 8
and I = 9 - Thus Encrypted Data c = 89e mod n. -Thus our Encrypted Data comes out to
be 1394 -Now we will decrypt 1394 : - Decrypted Data = cd mod n. -Thus our Encrypted
Data comes out to be 89 -8 = H and I = 9 i.e. "HI".]

 Describe a Dapp in details. [ - Dapp means Decentralized Application. – Dapp are a digital
application or program that exit and rum on a blockchain or P2P network on a single
computer. -Advantages of Dapp: 1. Zero Downtime. 2.Privacy. 3.Resistance to Censorship.
4.Complate Data Integrity .5.Trustless Computation. - Operations of Dapps: Dapp can be
achived using consensus algorithms such as Proof of Work and Proof of Stake. -Example of
DApp : 1.KYC-Chain -KYC Means Know Your Customer. -It is provide the KYC data in a secure
and convenient way based on smart contract. 2.Open Bazaar: It allow the commercial
 activies directly between seller and buyers. 3.Lazooz: This is a decentralized equivalent of
Uber.]

 What is the principle on which Blockchain technology is based on? [1.

1.Decentralization :Blockchain is a P2P network where no single participant(user) controls
the transaction.2. Integrity: The tight integrity is observed in the way every user gets
incentivized for their effort and also in the way this entire P2P network functions.
3. Cryptography :Cryptography is a method of securing data from unauthorized access.
4. Security : Blockchain being a distributed network, there is no one central point of failure
and also no single person can behave recklessly to damage the entire chain of the network.
-Blockchain Technology Use Case: 1.Financial Sector: Financial Sector is a service providers,
and regulators. 2.Non-Financial Sector: Non-Financial Sector is a Healtcare. ]

 Explain Byzantine Fault Tolerance(BFT) in detail. [- Byzantine Fault Tolerance (BFT) is a

consensus approach that resists a system to get into the Byzantine Generals’ problem. -It
also means the system should stay intact even if one of the nodes (or general) fails. -
addition, BFT aims to reduce the effect of malicious byzantine nodes (or general) on the
network. -Barbara Liskov and Miguel Castro introduced a Practical Byzantine Fault Tolerance
(pBFT. -Beyond the blockchain industry, a few use cases of BFT systems include the aviation,
space, and nuclear power industries.]

 Describe Process of SHA-256. [ -SHA-2 (Secure Hash Algorithm 256), of which SHA-256 is
a part, is one of the most popular hash algorithms around. -The NSA, or National Security
Agency, designed and published SHA-256 and the rest of the SHA-2 family of hash functions
in 2001. -SHA-256 generates a 256-bit (32-byte) signature. -Step 1 - Pre-Processing. ... -Step
2 - Initialize Hash Values (h) ... -Step 3 - Initialize Round Constants (k) ... -Step 4 - Chunk Loop.
.. -Step 5 - Create Message Schedule (w) ...-Step 6 - Compression. - Step 7 - Modify Final
Values -Step 8 - Concatenate Final Hash.]

 What is the Nonce. How is Nonce used in Mining. [1. A nonce is a random or
semirandom number that is generated for a spacific use. – It is stand for “Number used
once”,or”number once”. – Nonce is a 32-bit random number which can be used one time. -
The nonce is a bitcoin block is 32-bit field. 2. Miners must guess the valid nonce and add it to
the hash of the existing header, followed by rehashing the value and comparing the value to
the target hash. When the resulting hash value meets the requirements, miners can receive
rewards for the block.]

 Explain the competing chains. [ -Blockchain forks are an important concept in

Blockchain. - A fork refers to competing or coexisting side chains within the same network.
Simply, because of the decentralized structure of the network, the occurrence of forks
seems to be natural. - The reason is that one group of miners will find a next solution first,
even if the computer power within the network is evenly distributed among the several
competing groups. The next solution will be shared among the network nodes, accepted and
spread through the network.]
 Explain the Digital Signature with is working. [ 1.-Digital Signature are a fundamental
building block in blockchain, used mainly to authenicate transcation. -Digital signature is a
digital code. 2. -Working of Digital Signature : A digital signature presenting the
authnticity of digital messages or doucment. – A digital signature is a cryptographic analogue
of a handwritten signature to validate the authenticity integrity and non repudiation of a
message or document transferred over a digital medium. – a digital signature gives a recipiet
reason to believe that the message was created by a known sender.]

 Describe the Consensus mechanisms in details.[- A consensus mechanism is a fault-

tolerant mechanism that is used in computer and blockchain systems. -There are different
kinds of consensus mechanism algorithms, each of which works on different principles. -The
consensus protocols differ with different Blockchain networks.- There are three core
consensus techniques including: 1. Proof of Work (PoW) which is the initial Blockchain
consensus mechanism and was first used by Bitcoin. 2 Proof of Stake (POS) which solves the
lag of computing power in PoW. 3. Byzantine Fault Tolerant (BFT) protocols that instrument
a three-phase commit scheme for Blockchain enlargement.]

 What is a Digital Currency Bitcoin and Ethereum.[- Ether (ETH), the native
cryptocurrency of the Ethereum network, is the second most popular digital token after
bitcoin (BTC). – Bitcoin : -Bitcoin was launched in January 2009. -It is found by Satoshi
Nakamoto. -Bitcoin is a Digital currency for goods or sevices with vendors that accept bitcoin
as payment. - Bitcoin’s market share had declined to 39.6%. Ethereum : - Ethereum
enables building and deploying smart contracts and decentralized applications (dApps). -
Ethereum is a deentralized global software platfrom powerby blockchain techonology. -It is
most commonly knows for its native cryptocurrency,ether(ETH).]