Q1 - Explain Digital signature with its working
Ans- A) Signatures generated on the blockchain reffered as digital Digital
signature initial building block in blockchains. They are in the first place used to
verify the authencity of transactions.
B) Digital signature is a perticular type of electronic signature that encrypts the
signed document
C) Digital Signatures are used in blockchain where the transactions are digitally
signed by senders using their private key before broadcasting the transaction to
the 'network’
D) A digital signature is generated using assymetric cryptography, which is more
secure than hand written signature that Can he easily forged.
Q2- Explain the layered architecture of blockchain
1. Ans - Application Layer: At the top, the Application Layer hosts user interfaces,
decentralized applications (DApps), and smart contracts. Users interact with the
blockchain through this layer, creating transactions and accessing services.
2. Smart Contract Layer: Beneath the application layer, smart contracts execute
predefined actions based on code. This layer automates agreements and
conditions on the blockchain, with platforms like Ethereum facilitating their
development.
3. Consensus Layer: The Consensus Layer is at the heart of the blockchain,
managing how transactions are validated and added to the ledger. Various
consensus algorithms, like Proof of Work or Proof of Stake, ensure agreement
among network nodes, safeguarding the blockchain's security.
4. Network Layer: Below, the Network Layer orchestrates communication between
nodes. It encompasses peer discovery, data propagation, and synchronization.
This layer ensures that nodes maintain a consistent view of the blockchain.
5. Blockchain Layer: This layer houses the actual blockchain, an immutable
ledger that chronicles validated transactions. It provides transparency and
security, with each node maintaining a copy of the ledger.
6. Data Layer: Managing data storage, indexing, and retrieval is the Data Layer's
role. It includes data structures like Merkle trees and ensures historical and
current data can be efficiently accessed.
7. Cryptographic Layer: The foundation of blockchain security, the Cryptographic
Layer applies encryption, digital signatures, and hashing functions to protect data
and verify transaction authenticity.
Q3 - Describe EVM with the help of neat diagram
1. Ans-Stack-based Architecture: The EVM uses a stack for processing
instructions. It operates with a Last-In-First-Out (LIFO) model, where data is
pushed onto and popped from the stack.
2. Memory: EVM has an expandable memory area used for temporary data
storage during contract execution.
3. Storage: Contracts can read from and write to a persistent storage area on the
Ethereum blockchain. This storage is separate from the memory.
4. Instruction Set: EVM has a specific set of opcodes or instructions that define its
operation. These instructions include operations for arithmetic, logic, storage
access, and control flow.
5. Gas: Transactions and smart contract executions in Ethereum consume gas,
which is a measure of computational work. Gas costs help prevent abuse and
ensure efficient execution of code.
6. Accounts: In Ethereum, there are two types of accounts: externally owned
accounts (controlled by private keys) and contract accounts (controlled by
contract code). These accounts interact with the EVM.
7. Data Execution: EVM processes input data, such as transactions or contract
calls, to execute smart contracts and produce output results.
Q4- Write the blockchain use cases
1. Ans - Cryptocurrencies: Blockchain's foundational use case, cryptocurrencies
like Bitcoin enable secure, decentralized digital transactions.
2. Smart Contracts: Self-executing code on a blockchain automates agreements,
applicable in legal, supply chain, and finance sectors.
3. Supply Chain Management: Blockchain enhances transparency, traceability,
and efficiency in tracking products and supply chains.
4. Identity Verification: Decentralized identity solutions offer users control over
personal data and streamline verification processes.
5. Voting Systems: Blockchain improves transparency and security in elections
through verifiable and tamper-resistant voting.
6. Healthcare: Medical records, pharmaceutical supply chains, and clinical trials
benefit from secure and private blockchain data management.
7. Real Estate: Property transactions gain transparency, reduced fraud, and
efficiency through blockchain.
8. Intellectual Property: Blockchain safeguards intellectual property rights and
ensures content ownership.
9. Cross-Border Payments: Reduces fees and accelerates cross-border
payments by cutting intermediaries.
10. Notary Services: Blockchain offers secure timestamping and notarization
services for legal documents.
11. Energy Trading: Peer-to-peer energy trading on blockchain enables
efficient buying and selling of excess energy.
12. Food Safety: Blockchain tracks food product origins, preventing and
managing foodborne illness outbreaks.
13. Education: Blockchain verifies educational credentials and securely issues
certificates.
14. Gaming: Ownership of in-game assets is secured, facilitating trading and
interoperability across games.
Q5 - What is a Smart contract? Describe its working
Ans - A smart contract is a self-executing, programmable contract with the terms
of the agreement directly written into code. These contracts are deployed on
blockchain platforms like Ethereum and automatically execute when
predetermined conditions are met. Smart contracts enable trustless and
automated transactions, eliminating the need for intermediaries and providing
security and transparency. Here's how they work:
1. Code Deployment: A developer writes the code for the smart contract,
specifying the conditions and actions to be taken. The code is then deployed to
the blockchain.
2. Triggering Conditions: Smart contracts are activated when certain conditions
are met. These conditions can be as simple as a date or a complex combination
of factors, like reaching a specific temperature on a weather sensor.
3. Data Input: Users or other smart contracts interact with the smart contract by
sending transactions to it. These transactions include data and instructions.
4. Validation: The blockchain network validates the transactions against the code
of the smart contract. It checks if the conditions for execution are met.
5. Execution: If the conditions are satisfied, the smart contract automatically
executes the actions defined in its code. For example, it can transfer funds,
update a record, or perform any other predefined function.
6. Immutable and Transparent: Once deployed, smart contracts are immutable,
meaning their code and outcomes cannot be altered. This immutability ensures
trust and transparency, as all parties can independently verify the contract's
execution.
7. Cryptographic Security: Smart contracts rely on cryptographic keys for
authentication and security. Participants must have the correct private keys to
interact with them.
Q6 – Byzantine Fault tolerance (BPT)
Ans -Byzantine Fault Tolerance (BFT) is a property in distributed computing that
ensures the reliability and security of a network even when some nodes are
malicious or faulty. It addresses the Byzantine Generals Problem, a theoretical
scenario where generals surround a city, and some might be traitors providing
false information. BFT consensus algorithms, like Practical Byzantine Fault
Tolerance (PBFT), enable nodes in a network to reach an agreement on the
state of the system or the order of transactions.
Nodes communicate, vote, and confirm the validity of decisions, requiring a
threshold number of confirmations to reach consensus. BFT specifies the
maximum number of tolerated malicious nodes based on the algorithm and
desired security level. It's crucial for applications demanding trust, like blockchain
networks. BFT ensures that distributed systems continue to function correctly,
providing resilience against attacks and errors. However, implementing BFT can
be complex and computationally intensive, making it more suitable for private or
permissioned blockchains and specific network scenarios.
Q7 - Components of Blockchain
1. Ans - Cryptographic Hash: Unique identifiers for data.
2. Blocks: Data containers, linked in a chain.
3. Decentralized Network: Distributed nodes validate and record transactions.
4. Consensus Mechanism: Agreement rules for transaction validation.
5. Transactions: Digital actions or data entries.
6. Smart Contracts: Self-executing contract code.
7. Public/Private Keys: For security and authentication.
8. P2P Network: Peer-to-peer communication.
9. Consensus Rules: Network-specific validation rules.
10. Mining (in Proof of Work): Puzzle-solving to validate blocks.
11. Digital Signatures: Authentication and transaction verification.
Q8 - Explain competing chains with the help of diagram
1. Ans -Common History: Initially, all nodes in the network agree on the same
blockchain history. This history is composed of a sequence of blocks, each
containing a set of validated transactions.
2. Disagreement: A fork occurs when a difference of opinion arises among network
participants. This could be due to a contentious issue, a software upgrade, or the
introduction of conflicting transactions.
3. Fork Point: At a certain block in the blockchain, called the "fork point," the
network splits into multiple branches. Beyond this point, different sets of
transactions and rules may apply.
4. Competing Chains: The network now has multiple chains, each representing a
different version of the blockchain. These chains continue to extend with new
blocks and transactions.
5. Consensus Resolution: To resolve the fork, the network follows a consensus
mechanism (e.g., Proof of Work or Proof of Stake) to determine which chain is
the valid one. The chain with the most accumulated computational power or
stake often becomes the dominant chain.
6. Orphaned Chain: The losing chain, the one not chosen by the network, is
typically abandoned and becomes an "orphaned" chain. Its transactions may be
considered invalid or disregarded.
7. Effects: The fork's effects can vary. It may impact transactions and balances on
the blockchain, and users and miners may need to adapt to the consensus
outcome. The chosen chain becomes the one where all participants converge,
maintaining a single, consistent ledger.
Q9 - What is nonce. Explain with diagram. How nonce is used in mining?
Ans - A nonce (number used once) is a 32-bit (in the case of Bitcoin) or a
similar-sized piece of data that is included in a block's header in a blockchain. It
is a random or pseudo-random number that miners modify during the mining
process to find a specific hash value that meets the difficulty target. Here's an
explanation with a simplified diagram:
1. Block Header: A block in a blockchain consists of various components, including
a block header. This header contains several fields, such as the previous block's
hash, a timestamp, a Merkle root, and a nonce.
2. Nonce Field: The nonce is a 32-bit field within the block header. It is initially set
to a specific value (often 0) when miners begin the mining process.
3. Mining Process: Miners aim to find a valid block by varying the nonce. They
repeatedly change the nonce value to create a different block header and then
compute the hash of that header.
4. Hashing: Miners use a cryptographic hash function (e.g., SHA-256) to calculate
the hash of the block header, which includes the nonce.
5. Difficulty Target: The resulting hash is compared to the network's current
difficulty target. This target is a threshold that the hash must be below for the
block to be considered valid.
6. Adjusting the Nonce: If the hash does not meet the difficulty target, miners
increment the nonce and repeat the hashing process. They keep iterating
through different nonce values until they find a hash that meets the target.
7. Success: When a miner discovers a nonce that generates a hash below the
difficulty target, they have found a valid block. This block can then be added to
the blockchain, and the miner is rewarded with cryptocurrency and transaction
fees.
Q10 - What is Ethereum Network?
Ans -The Ethereum network is a decentralized blockchain platform that
revolutionized the world of cryptocurrencies and distributed applications. It
introduced the concept of smart contracts, self-executing agreements with
predefined rules written in code, allowing for automated, trustless interactions on
the blockchain. Ethereum's native cryptocurrency, Ether (ETH), powers the
network and is used for transactions and to compensate network participants.
The Ethereum network is programmable and versatile, enabling the creation of
decentralized applications (DApps) across a wide range of industries, from
finance to supply chain management. It operates on a global network of nodes
that validate transactions and execute smart contracts. Initially based on a Proof
of Work (PoW) consensus mechanism, Ethereum is transitioning to Ethereum
2.0, which uses Proof of Stake (PoS) for increased scalability and energy
efficiency.
Q11- What is PoW and POS
Ans -Proof of Work (PoW):
PoW is the original and most well-known consensus mechanism used by
cryptocurrencies like Bitcoin.
PoW requires significant computational power and energy consumption, as
miners must continuously perform computations to participate in block validation.
The difficulty of these puzzles adjusts over time to maintain a consistent block
creation rate (e.g., 10 minutes for Bitcoin).
PoW is known for its security and resistance to attacks but is criticized for its
environmental impact due to energy consumption.
Proof of Stake (PoS):
PoS is an alternative consensus mechanism used in various blockchain
networks, including Ethereum 2.0, Cardano, and Polkadot.
Validators are incentivized to act honestly because they have a financial interest
in the network's success.
PoS is more energy-efficient than PoW because it doesn't require extensive
computational work.
PoS often incorporates slashing mechanisms, which penalize validators for
malicious behavior or downtime.
Ethereum is in the process of transitioning from PoW to PoS to address
scalability and environmental concerns.
Q12 - Hard and Soft Link
Ans -Hard Link:
A hard link is a reference to an existing file or directory on the same file system.
Hard links are essentially multiple directory entries (or file names) that point to
the same inode (the data structure that stores file metadata and data blocks).
Changes made to the original file are reflected in all hard links since they all point
to the same data on disk.
Hard links can only be created for files, not directories.
They are efficient in terms of storage space because they don't create duplicate
copies of the file data.
Soft Link (Symbolic Link or Symlink):
A soft link is a pointer to another file or directory by its path or filename.
Soft links are independent of the original file, and they point to the file's
pathname rather than its inode.
If the original file is moved or deleted, the soft link becomes "broken" and no
longer points to a valid file or directory.
Soft links can point to files or directories, and they can span file systems.
They are created using the "ln -s" command on Unix-like systems.
Soft links are more flexible but can lead to "dangling links" if the target file is
removed.
Q13 - Public and Private Blockchain
Ans - Public Blockchain:
Public blockchains are open, permissionless networks that allow anyone to
participate, transact, and validate transactions.
They are decentralized, relying on a global network of nodes to validate and
secure the blockchain.
Anyone can join a public blockchain network without requiring authorization, and
all transactions and data are visible to anyone.
Public blockchains use consensus mechanisms like Proof of Work (PoW) or
Proof of Stake (PoS) to secure the network.
Bitcoin and Ethereum are prominent examples of public blockchains, and they
are commonly used for cryptocurrencies, decentralized applications (DApps),
and open, trustless financial systems.
Private Blockchain:
Private blockchains are restricted, permissioned networks where access is
controlled, and participation is typically limited to authorized entities.
These blockchains are often used by organizations or consortiums where trust is
established among participants, such as a group of banks or a supply chain
consortium.
Participants in a private blockchain are known and vetted, which can enhance
privacy and security.
Transaction visibility and data access can be controlled, making private
blockchains suitable for confidential business operations.
Consensus mechanisms in private blockchains may differ from public
blockchains, and they often prioritize efficiency over decentralization.
Use cases for private blockchains include supply chain management, interbank
settlements, and enterprise resource planning (ERP) systems.
Q14 - types of blockchain network
1. Ans - Public Blockchain:
Open and permissionless.
Anyone can participate, transact, and validate.
2. Private Blockchain:
Restricted and permissioned.
Enhanced privacy and security.
3. Consortium Blockchain:
Controlled by a predefined set of nodes.
Balances decentralization with control.
4. Hybrid Blockchain:
Combines elements of public and private blockchains.
5. Permissioned Blockchain:
Provides enhanced control and governance.
6. Sidechain:
A secondary blockchain connected to a primary blockchain.
Often used to build specialized solutions.
7. Cross-Chain Blockchain:
Facilitates interoperability and communication between different blockchain
networks.
8. Enterprise Blockchain:
Tailored for the needs of businesses and organizations.
Used for supply chain management, identity verification, and more.
9. Permissionless Blockchain:
Accessible to anyone without prior authorization.
Emphasizes decentralization and trustlessness.
Q15 - Data Types in Solidity
1. Value Types: bool: Represents a boolean value (true or false).
enum: A user-defined data type for creating enumerated lists of values.
2. Reference Types:
arrays: Fixed-size or dynamic arrays, which can hold elements of a specific data
type.
structs: User-defined data structures that can hold multiple data types.
3. User-Defined Types:
library: A library is a special type of contract that can be used to share reusable
functions and code across multiple contracts.
4. Function Types:
function: Function types are used to declare and define functions within smart
contracts.
5. Special Types:
bytes1...bytes32: Fixed-size byte arrays.
ufixed: Unsigned fixed-point numbers.
bytes<N>: Fixed-size byte arrays (where N is between 1 and 32).
Q16 - Define Gas, DAO, ICO
1. Ans- Gas: Gas is a unit of computational work on a blockchain, used to measure
and pay for transaction and contract processing. It ensures the blockchain's
security and fairness by determining transaction fees.
2. DAO (Decentralized Autonomous Organization): A DAO is a blockchain-
based organization run by code, enabling members to make decisions and
govern the organization without centralized control. It's transparent and governed
by smart contracts.
3. ICO (Initial Coin Offering): An ICO is a fundraising method used by blockchain
projects to sell tokens to investors in exchange for capital. It's akin to
crowdfunding, with investors receiving project-related tokens or coins in return.
Q17 - Define Ethereum. bitcoin DAPPS. Cyptography, mining, immutable
ledger
1. Ans - Ethereum: Ethereum is a blockchain platform that enables the creation of
decentralized applications (DApps) and smart contracts. Its native cryptocurrency
is Ether (ETH).
2. Bitcoin: Bitcoin is the first and most well-known cryptocurrency, used for peer-
to-peer digital transactions. It operates on a decentralized and secure
blockchain.
3. DApps (Decentralized Applications): DApps are applications built on
blockchain technology, providing transparency, security, and trustlessness. They
can include games, finance apps, and more.
4. Cryptography: Cryptography is the practice of securing information using
mathematical techniques. In the context of blockchain, it ensures data integrity,
privacy, and authentication.
5. Mining: Mining is the process of validating and adding transactions to a
blockchain through solving complex computational puzzles. Miners are rewarded
with cryptocurrency.
6. Immutable Ledger: An immutable ledger is a blockchain where once data is
recorded, it cannot be altered or deleted. This ensures the permanent integrity of
the data on the blockchain.
