Blockchain Solved Question paper 2022 April

Q1) attempt any 8 for each 1 marks

a) Who published a white paper proposing Ethereum in 2013?

b) In which type of network each and every node is itself client and server?
c) Give the command to find the current difficulty level.
d) What happens if someone loses the private key of his wallet?
e) What is EVM?
f) Which institute standardized AES algorithm?
g) What is Nonce?
h) What is Non-repudiation?
i) What is ICO?
j) Who owns the Blockchain?

Answer :

a) Vitalik Buterin is the primary author of the Ethereum white paper.

b) Peer-to-Peer (P2P) network is a type of network where each node acts as both a client and
a server.

c) eth.getBlock("latest") is the command to find the current difficulty level in the

Ethereum blockchain.

d) If someone loses their private key, they lose access to their funds. The funds remain on
the blockchain, but without the private key, they cannot be retrieved or spent.

e) Ethereum Virtual Machine (EVM) is a virtual machine that executes smart contracts on the
Ethereum blockchain.

f) National Institute of Standards and Technology (NIST) standardized the AES algorithm.

g) Nonce is a number used only once. In the context of cryptocurrencies, it's a number used to
create a unique hash for each block in the blockchain.

h) Non-repudiation is the assurance that a party cannot deny having performed a specific
action. In the context of blockchain, it ensures that transactions cannot be denied by the sender.

i) Initial Coin Offering (ICO) is a fundraising method where new cryptocurrencies are sold to
raise capital for projects.

j) No one single entity owns the blockchain. It's decentralized, meaning it's owned and
maintained by a network of nodes.
Q2) attempt any 4 for each 2 marks

a) What is Gas & Gas limit?

b) What is Public & Private blockchain?
c) List & Explain value data types in solidity.
d) What are the benefits of immutable ledger in blockchain?
e) What is stream cipher and block cipher?

Answer :

a) Gas & Gas Limit

● Gas: In Ethereum, gas is the unit of measurement for the computational effort required
to execute a transaction or smart contract. It's essentially the fee paid to miners for
processing transactions.
●
● Gas Limit: The gas limit is the maximum amount of gas a user is willing to spend on a
transaction. It's set by the user to control costs and prevent unexpected expenses. If a
transaction exceeds the gas limit, it fails, and the user only pays for the gas consumed
up to that point.
●

b) Public & Private Blockchain

● Public Blockchain: A public blockchain is open to anyone, allowing anyone to view,

verify, and participate in the network. Examples include Bitcoin and Ethereum.
●
● Private Blockchain: A private blockchain is controlled by a specific organization or
group. Access is restricted, and participants are known to each other. Private
blockchains are often used for internal business processes and supply chain
management.
●

c) Value Data Types in Solidity

Solidity, the programming language used to write smart contracts on the Ethereum blockchain,
supports various value data types:

● Integer Types:
○ uint8: Unsigned integer (0 to 255)
○ uint16: Unsigned integer (0 to 65535)
○ uint32: Unsigned integer (0 to 4294967295)
○ uint64: Unsigned integer (0 to 18446744073709551615)
○
 ○ uint128: Unsigned integer (0 to
340282366920938463463374607431768211455)
○ uint256: Unsigned integer (0 to
1157920892373161954235709850086879078532699846656405640394575840
07913129639935)
○ int8: Signed integer (-128 to 127)
○ int16: Signed integer (-32768 to 32767)
○ int32: Signed integer (-2147483648 to 2147483647)
○ int64: Signed integer (-9223372036854775808 to 9223372036854775807)
○ int128: Signed integer (-170141183460469231731687303715884105728 to
170141183460469231731687303715884105727)
○ int256: Signed integer
(-578960446186580977117854925043439539266349923328202820197287920
03956564819967)
● Boolean: bool (true or false)
● Address: address (20-byte address of an account or contract)
● Fixed-Size Byte Arrays: bytes1 to bytes32
● Dynamic-Size Byte Arrays: bytes and string

d) Benefits of Immutable Ledger in Blockchain

● Transparency: All transactions are visible to everyone, ensuring transparency and

accountability.
● Security: The immutability of the ledger makes it difficult for malicious actors to tamper
with data.
● Trust: By eliminating the need for intermediaries, blockchain fosters trust and reduces
the risk of fraud.
●
● Efficiency: Smart contracts automate processes, reducing manual intervention and
increasing efficiency.
●
● Auditability: The transparent nature of the ledger allows for easy auditing and
verification of transactions.

e) Stream Cipher and Block Cipher in Blockchain

● Stream Cipher: A stream cipher encrypts data one bit at a time, using a keystream to
modify the plaintext. While not
Q3) attempt any 2 for each 4 marks

a) Write a short note on crypto wallet.

b) What are the tasks of miners?
c) Which are the components of blockchain?

Answer :

a) Short Note on Crypto Wallet

A crypto wallet is a digital tool used to store, send, and receive cryptocurrencies. It doesn't
actually store the cryptocurrency itself but rather the private keys needed to access and control
the funds. These private keys are crucial for security and should be kept confidential. Crypto
wallets come in various forms, including software wallets, hardware wallets, and paper wallets,
each offering different levels of security and convenience.

b) Tasks of Miners

Miners are individuals or entities that validate and add new transactions to the blockchain. Their
primary tasks include:

● Solving Cryptographic Puzzles: Miners use powerful computers to solve complex

mathematical problems.
● Validating Transactions: They verify the authenticity and legitimacy of each
transaction.
● Adding Blocks to the Blockchain: Once a puzzle is solved, a new block containing
verified transactions is added to the chain.
● Securing the Network: Miners contribute to the overall security of the blockchain by
participating in the consensus mechanism.

c) Components of Blockchain

A blockchain is composed of several key components:

● Blocks: Individual units of data that contain a set of transactions.

● Transactions: Records of activities on the blockchain, such as sending or receiving
cryptocurrency.
● Hash: A unique digital fingerprint generated for each block.
● Timestamp: A record of the time when a block was created.
● Nonce: A random number used to create the hash.
● Blockchain: The entire chain of blocks, linked together through cryptographic hashes.
Q4) attempt any 2 for each 4 marks

a) Write a short note on DES.

b) What are the advantages of smart contract? Explain any four.
c) What are the layers of blockchain?

Answer :

a) Short Note on DES

DES (Data Encryption Standard) is a symmetric-key block cipher that was widely used for many
years to encrypt sensitive data. It operates on 64-bit blocks of data, using a 56-bit key. While
DES was once a standard, it is now considered insecure due to its relatively short key length,
making it vulnerable to brute-force attacks. Modern cryptographic standards, such as AES, have
largely replaced DES.

b) Advantages of Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into
code. Here are four advantages of smart contracts:

1. Automation: Smart contracts automate processes, reducing the need for intermediaries
and human intervention, which can lead to faster and more efficient transactions.
2. Transparency: All actions and data associated with a smart contract are recorded on
the blockchain, ensuring transparency and accountability.
3. Security: Smart contracts are executed according to the predefined rules of the code,
minimizing the risk of errors and fraud.
4. Efficiency: By automating processes and reducing paperwork, smart contracts can
streamline operations and save costs.

c) Layers of Blockchain

A blockchain typically consists of the following layers:

1. Application Layer: This layer interacts with users and provides the interface for users to
interact with the blockchain. It includes dApps (decentralized applications) and other
user-facing applications.
2. Network Layer: This layer handles the communication and consensus mechanisms
between nodes in the network. It ensures that all nodes agree on the state of the
blockchain.
3. Consensus Layer: This layer is responsible for validating and adding new blocks to the
blockchain. It employs algorithms like Proof-of-Work (PoW) or Proof-of-Stake (PoS) to
achieve consensus.
4. Data Layer: This layer stores the actual data, including transactions and smart contract
code. It ensures the integrity and security of the data.
 5. Execution Layer: This layer executes smart contracts and processes transactions. It
provides the computational power necessary for running smart contracts.

Q5) attempt any 1 for 3 marks

a) Define transaction and explain its structure.

b) What are the uses of SHA algorithm?

Answer :

a) Transaction and Its Structure

A transaction is a fundamental unit of work in a blockchain. It represents a transfer of value or

data between two or more parties on the network. A typical transaction structure includes the
following components:

1. Sender's Address: The digital address of the individual or entity sending the
transaction.
2. Recipient's Address: The digital address of the individual or entity receiving the
transaction.
3.
4. Amount: The quantity of cryptocurrency or digital asset being transferred.
5. Transaction Fee: A small fee paid to miners to process the transaction.
6. Timestamp: The time when the transaction was created.
7. Digital Signature: A cryptographic signature generated by the sender's private key to
authenticate the transaction.

b) Uses of SHA Algorithm in Blockchain

SHA (Secure Hash Algorithm) is a cryptographic hash function widely used in blockchain
technology for several purposes:

1. Creating Unique Identifiers: SHA algorithms generate unique hash values for each
block in the blockchain. This ensures the integrity of the data and prevents tampering.
2.
3. Verifying Data Integrity: By comparing the hash of a block with the hash stored in the
previous block, the system can verify that the data has not been altered.
4.
5. Securing Transactions: SHA algorithms are used to create digital signatures, which are
used to authenticate transactions and prevent unauthorized access.
6.
7. Consensus Mechanisms: Some consensus mechanisms, like Proof-of-Work, rely on
SHA algorithms to solve complex mathematical problems, which is a crucial part of the
mining process
 Blockchain Solved Question paper 2022 October

Q1) attempt any 8 for each 1 marks

a) What is the formula to calculate transaction fee in Ethereum?

b) What is plain text and cipher text?
c) What is FPGA? d) In AES, on which factor does the number of encryption rounds depend on?
e) What is smart contract?
f) What is the size of encryption key in DES?
g) What is ASIC?
h) Which algorithm is used by Bitcoin to verify transactions?
i) Which is a unique PoS cryptocurrency that is aimed at delivering interoperability among other
blockchains?
j) What is DAPP?

Answer :

a) Transaction Fee in Ethereum

The transaction fee in Ethereum is calculated based on the gas price and the gas limit set by
the user. The formula is:

Transaction Fee = Gas Price * Gas Limit

● Gas Price: The amount of Ether paid per unit of gas.

● Gas Limit: The maximum amount of gas a transaction can consume.

b) Plaintext and Ciphertext

● Plaintext: Plaintext is the original, readable form of data before encryption.

● Ciphertext: Ciphertext is the encrypted form of data, which is unreadable without the
decryption key.

c) FPGA

FPGA (Field-Programmable Gate Array) is a type of integrated circuit that can be reconfigured
after manufacturing. It's often used for specific tasks like cryptography, digital signal processing,
and artificial intelligence.

d) AES Encryption Rounds

The number of encryption rounds in AES depends on the key size:

● 128-bit key: 10 rounds

● 192-bit key: 12 rounds
 ● 256-bit key: 14 rounds

e) Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into
code. It operates on a blockchain and automatically executes when specific conditions are met.

f) DES Key Size

The encryption key size in DES is 56 bits.

g) ASIC

ASIC (Application-Specific Integrated Circuit) is a specialized integrated circuit designed for a

specific function, such as Bitcoin mining.

h) Bitcoin's Verification Algorithm

Bitcoin uses the SHA-256 hashing algorithm to verify transactions and create new blocks.

i) PoS Cryptocurrency for Interoperability

Cosmos is a unique PoS cryptocurrency that aims to deliver interoperability among different
blockchains. It uses a proof-of-stake consensus mechanism and a unique architecture to enable
communication between different blockchains.

j) DAPP

DAPP stands for Decentralized Application. It's an application that runs on a decentralized
network of computers, often a blockchain. DApps are resistant to censorship and offer greater
transparency and security compared to traditional applications.

Q2) attempt any 4 for each 2 marks

a) What is the difference between public and private blockchains?

b) Blockchains are slow as compare to database. Justify.
c) What is P2P crypto Exchange?
d) What is BFT?
e) What is Hybrid Blockchain?
Answer :

a) Difference between Public and Private Blockchains

Feature Public Blockchain Private Blockchain

Access Open to anyone Restricted to authorized participants

Permission Permissionless Permissioned

Transparency Highly transparent Less transparent, controlled by a central authority

High security due to Security depends on the network's configuration

Security decentralization and access controls

Cryptocurrencies,
decentralized finance, supply Enterprise applications, supply chain management,
Use Cases chain management financial services

b) Blockchains vs. Databases: Speed

While blockchains offer security and transparency, they are generally slower than traditional
databases. This is due to several factors:

● Consensus Mechanism: Blockchains require a consensus mechanism to validate and

add new blocks, which can be time-consuming, especially for large networks.
● Network Latency: Transactions need to be propagated across the network, which can
introduce delays.
● Block Size Limits: Blockchains have limitations on the size of blocks, which can affect
transaction throughput.

c) P2P Crypto Exchange

A P2P (Peer-to-Peer) crypto exchange is a platform that allows users to directly trade
cryptocurrencies with each other without the need for an intermediary. This decentralized
approach can offer advantages like lower fees, increased privacy, and greater control over
transactions.

d) BFT (Byzantine Fault Tolerance)

BFT is a consensus algorithm used in distributed systems to ensure that the system can
continue to operate correctly even if some nodes are faulty or malicious. It's often used in
blockchains to achieve consensus and maintain the integrity of the network.

e) Hybrid Blockchain
A hybrid blockchain combines elements of both public and private blockchains. It offers a
balance between decentralization and control. In a hybrid blockchain, some parts of the network
may be public, while others are private. This approach can be useful for organizations that want
to leverage the benefits of blockchain technology while maintaining control over certain aspects
of the network.

Q3) attempt any 2 for each 4 marks

a) Write a short note on life cycle of smart contract.

b) What is Hard & Soft forks?
c) What is PoW?

Answer :
a) Life Cycle of a Smart Contract

A smart contract typically goes through the following life cycle:

1. Development: The smart contract is written in a programming language like Solidity and
deployed to a blockchain network.
2. Deployment: The compiled smart contract code is deployed to the blockchain, where it
becomes a part of the network's state.
3. Execution: Once deployed, the smart contract can be triggered by specific events or
transactions. It executes the defined logic and updates the blockchain state accordingly.
4. Interaction: Users can interact with the smart contract by sending transactions to it.
These transactions can trigger specific functions within the contract.
5. Maintenance: As needed, smart contracts can be updated or modified through the
deployment of new versions or patches. However, it's important to note that once a
transaction is executed, it cannot be reversed.

b) Hard and Soft Forks

● Hard Fork: A hard fork is a significant change to the protocol rules of a blockchain that
results in the creation of a new blockchain. This change is not backward compatible,
meaning that nodes running the old version will not be able to validate blocks created by
the new version.
● Soft Fork: A soft fork is a change to the protocol rules that is backward compatible.
Nodes running the old version can still validate blocks created by the new version. Soft
forks are often used to introduce new features or improve the efficiency of the
blockchain.

c) Proof-of-Work (PoW)
Proof-of-Work (PoW) is a consensus mechanism used in many blockchains, including Bitcoin. In
PoW, miners compete to solve complex cryptographic puzzles. The first miner to solve a puzzle
is rewarded with a block reward, and their solution is added to the blockchain. This process
ensures the security and integrity of the blockchain. PoW is energy-intensive, as miners require
powerful computers to solve these puzzles.

Q4) attempt any 2 for each 4 marks

a) Write a short note on challenges of blockchain.

b) Write a short note on ICO.
c) Which are the different value data types in solidity?

Answer :

a) Challenges of Blockchain

While blockchain technology offers many benefits, it also faces several challenges:

● Scalability: As the number of transactions increases, blockchains can become slow and
expensive.
● Energy Consumption: Proof-of-Work consensus mechanisms, like those used by
Bitcoin, require significant energy consumption.
● Complexity: Blockchain technology can be complex to understand and implement,
especially for non-technical users.
● Regulatory Uncertainty: The regulatory landscape for blockchain is still evolving,
creating uncertainty for businesses and individuals.
● Security Risks: Blockchain networks are vulnerable to attacks, such as hacking and
phishing.

b) ICO (Initial Coin Offering)

An ICO is a fundraising method used by startups to raise capital by issuing their own
cryptocurrency tokens. Investors purchase these tokens in exchange for other cryptocurrencies,
such as Bitcoin or Ethereum. ICOs have gained popularity as a way for startups to bypass
traditional funding methods. However, they are also subject to regulatory scrutiny and potential
risks for investors.

c) Value Data Types in Solidity

Solidity, the programming language used for smart contracts on the Ethereum blockchain,
supports various value data types:

● Integer Types: uint8, uint16, uint32, uint64, uint128, uint256, int8, int16,
int32, int64, int128, int256
 ● Boolean: bool
● Address: address
● Fixed-Size Byte Arrays: bytes1 to bytes32
● Dynamic-Size Byte Arrays: bytes and string

Q5) attempt any 1 for 3 marks

a) Write a short note on first Generation Blockchain.

b) Describe EVM with the help of neat diagram.

Answer :

a) First Generation Blockchain

First-generation blockchains, like Bitcoin, laid the foundation for the entire blockchain
ecosystem. They primarily focused on digital currencies and decentralized transactions. Key
characteristics of these blockchains include:

● Cryptocurrency Focus: Primarily designed for digital currencies like Bitcoin.

● Limited Functionality: Smart contract capabilities were either absent or very limited.
● Scalability Challenges: Faced scalability issues as the network grew.
● Energy Consumption: Proof-of-Work consensus mechanisms were energy-intensive.

b) Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) is a virtual machine that executes smart contracts on the
Ethereum blockchain. It provides a platform for developers to create and deploy decentralized
applications (dApps).
Here's a breakdown of the EVM's components:

1. Transaction Pool: This is where incoming transactions are temporarily stored before
being processed.
2. Block Miner: Miners compete to solve cryptographic puzzles to add new blocks to the
blockchain.
3. World State: This stores the current state of all smart contracts and accounts on the
Ethereum network.
4. Execution Environment: This is where smart contract code is executed. It includes the
EVM interpreter, which processes bytecode instructions.
5. Gas Meter: This measures the computational cost of executing smart contracts and
limits the amount of resources that can be used.

The EVM's ability to execute smart contracts has significantly expanded the possibilities of
blockchain technology beyond just digital currencies. It has enabled the development of a wide
range of decentralized applications, including decentralized finance (DeFi), supply chain
management, and gaming.
 Blockchain Solved Question paper 2023 April

Q1) attempt any 8 for each 1 marks

a) What is Non-repudiation?
b) What is difficulty in a block?
c) In which network, each & every node itself is a client and server?
d) What is Ether?
e) What is consensus?
f) What is full node?
g) What is Remix?
h) What is immutable ledger?
i) Define genesis block.
j) What is EVM?

Answer :

a) Non-repudiation is the assurance that a party cannot deny having performed a specific
action. In the context of blockchain, it ensures that transactions cannot be denied by the sender.

b) Difficulty in a block refers to the level of computational effort required to mine a new block.
It's adjusted periodically to maintain a consistent block generation rate.

c) Peer-to-Peer (P2P) network is a type of network where each node acts as both a client and
a server.

d) Ether is the native cryptocurrency of the Ethereum blockchain. It's used to pay transaction
fees and reward miners for processing transactions.

e) Consensus is the process by which a decentralized network of nodes agrees on the state of
the blockchain. This ensures that all nodes have a consistent and accurate record of
transactions.

f) A full node is a computer that stores a complete copy of the blockchain. It helps to validate
transactions, maintain the network's security, and contribute to the consensus mechanism.

g) Remix is an integrated development environment (IDE) specifically designed for developing

smart contracts on the Ethereum blockchain. It provides tools for writing, testing, and deploying
smart contracts.

h) An immutable ledger is a record that cannot be altered or deleted once it has been added.
Blockchain technology provides a highly secure and immutable way to store data.

i) The genesis block is the first block in a blockchain. It contains the initial state of the network
and sets the foundation for subsequent blocks.
j) EVM stands for Ethereum Virtual Machine.

It's a virtual machine that executes smart contracts on the Ethereum blockchain. It provides a
platform for developers to create and deploy decentralized applications (dApps).

Q2) attempt any 4 for each 2 marks

a) Define Symmetric and asymmetric key cryptography.

b) What is stream cipher & block cipher?
c) List the applications of hash function.
d) What is Gas and Gas Limit?
e) What is the purpose of test network? List Ethereum testnets.

Answer :

a) Symmetric and Asymmetric Key Cryptography

Symmetric Key Cryptography:

● Uses a single key for both encryption and decryption.

● Faster and more efficient than asymmetric key cryptography.
● Requires secure distribution of the key to all parties involved.
● Examples: AES, DES

Asymmetric Key Cryptography:

● Uses a pair of keys: a public key for encryption and a private key for decryption.
● Slower than symmetric key cryptography but provides better security.
● No need for secure key distribution as the public key can be shared publicly.
● Examples: RSA, DSA

b) Stream Cipher & Block Cipher

Stream Cipher:

● Encrypts data bit by bit.

● Uses a keystream to modify the plaintext.
● Well-suited for real-time communication.
● Examples: RC4, Salsa20

Block Cipher:

● Encrypts data in fixed-size blocks.

● Uses a complex series of transformations to encrypt each block.
 ● More secure than stream ciphers for large data sets.
● Examples: AES, DES

c) Applications of Hash Functions

● Data Integrity: Verifying the integrity of data by comparing hash values.

● Digital Signatures: Creating digital signatures to authenticate messages.
● Password Storage: Storing password hashes instead of plain text passwords.
● Blockchain Technology: Securing and verifying transactions in blockchain networks.
● Data Deduplication: Identifying duplicate data based on hash values.

d) Gas and Gas Limit

● Gas: A unit of measurement used to quantify the computational effort required to

execute a transaction or smart contract on the Ethereum blockchain.
● Gas Limit: The maximum amount of gas a user is willing to spend on a transaction. It
helps to control costs and prevent unexpected expenses.

e) Purpose of Test Networks and Ethereum Testnets

Purpose of Test Networks:

● Testing and Experimentation: Provide a safe environment to test dApps and smart
contracts without risking real funds.
● Developer Onboarding: Allow developers to learn and experiment with blockchain
technology.
● Security Audits: Identify and fix vulnerabilities in smart contracts before deploying them
to the mainnet.

Ethereum Testnets:

● Ropsten: A popular testnet for Ethereum, providing a realistic environment for testing.
● Kovan: Another widely used testnet, often used for larger-scale testing.
● Rinkeby: A testnet focused on developer testing and experimentation.
● Goerli: A newer testnet with a focus on scalability and performance.

Q3) attempt any 2 for each 4 marks

a) Compare client server & peer to peer architecture.

b) Explain the contents of block of a blockchain.
c) Explain Ethereum architecture with neat diagram.

Answer :
a) Client-Server vs. Peer-to-Peer Architecture

Feature Client-Server Peer-to-Peer

Central Server Yes No

Client requests services from a

Communication central server Nodes communicate directly with each other
More resilient to failures as multiple nodes can
Reliability Relies on the server's uptime provide services

Vulnerable to
Security single-point-of-failure attacks More secure as there's no central authority

Web servers, email servers, file

Examples servers BitTorrent, blockchain networks

b) Contents of a Blockchain Block

A block in a blockchain typically contains the following information:

1. Block Header:

○Previous Block Hash: A cryptographic hash of the previous block, creating a

chain of blocks.
○ Nonce: A random number used to generate the block's hash.
○ Timestamp: The time when the block was created.
○ Merkle Root: A cryptographic hash of all transactions included in the block.
2. Transactions: A set of transactions that have been verified and bundled together. Each
transaction includes:

○ Sender's Address: The address of the sender of the transaction.

○ Recipient's Address: The address of the recipient of the transaction.
○ Amount: The amount of cryptocurrency being transferred.
○ Digital Signature: A cryptographic signature to verify the sender's identity.

c) Ethereum Architecture
The Ethereum architecture consists of several key components:

1. Ethereum Virtual Machine (EVM): A virtual machine that executes smart contracts.
2. Blockchain: A distributed ledger that records all transactions and smart contract
executions.
3. Nodes: Computers that participate in the Ethereum network and validate transactions.
4. Mining: The process of adding new blocks to the blockchain.
5. Smart Contracts: Self-executing contracts with the terms of the agreement directly
written into code.
6. Ethereum Network: The decentralized network of nodes that powers the Ethereum
ecosystem.

The EVM enables the execution of complex smart contracts, which can automate various
processes and create decentralized applications (dApps). The blockchain ensures the security
and transparency of all transactions and smart contract interactions

Q4) attempt any 2 for each 4 marks

a) Enumerate and explain types of blockchain.

b) Write a short note on ICO.
c) Explain forking with types.

Answer :

a) Types of Blockchain

1. Public Blockchain:

○ Open to everyone.
○ Anyone can participate in the network.
○ Highly transparent and decentralized.
○ Examples: Bitcoin, Ethereum
2. Private Blockchain:

○
Controlled by a specific organization or group.
○
Access is restricted to authorized participants.
○
Less transparent but offers more control.
○
Examples: Enterprise blockchain solutions for supply chain management,
finance, etc.
3. Consortium Blockchain:

○ Controlled by a group of organizations.

○ Multiple organizations collaborate to validate and add blocks to the chain.
○ Offers a balance between decentralization and control.
 ○ Examples: Hyperledger Fabric, Corda

b) ICO (Initial Coin Offering)

An ICO is a fundraising method used by startups to raise capital by issuing their own
cryptocurrency tokens. Investors purchase these tokens in exchange for other cryptocurrencies,
such as Bitcoin or Ethereum. ICOs have gained popularity as a way for startups to bypass
traditional funding methods. However, they are also subject to regulatory scrutiny and potential
risks for investors.

c) Forking

Forking is a process where a blockchain splits into two separate chains. This can happen due to
disagreements among developers or changes to the protocol rules. There are two main types of
forks:

1. Hard Fork:

○
A significant change to the protocol rules that is not backward compatible.
○
Nodes running the old version will not be able to validate blocks created by the
new version.
○ Creates a new blockchain with a different history.
○ Example: Bitcoin Cash forked from Bitcoin.
2. Soft Fork:

○ A change to the protocol rules that is backward compatible.

○ Nodes running the old version can still validate blocks created by the new
version.
○ Does not create a new blockchain.
○ Example: SegWit was a soft fork on the Bitcoin blockchain

Q5) attempt any 1 for 3 marks

a) Explain the uses of SHA-256 algorithm.

b) What are the tasks of miners?

Answer :

a) Uses of SHA-256 Algorithm

SHA-256 is a cryptographic hash function widely used in various applications, including

blockchain technology. Here are some of its key uses:

● Data Integrity:
○ Verifying the integrity of data by comparing hash values.
 ○ Any modification to the data will result in a different hash value.
● Digital Signatures:
○ Creating digital signatures to authenticate messages and documents.
○ The hash of a message is signed with a private key, and the recipient can verify
the signature using the corresponding public key.
● Password Storage:
○ Storing password hashes instead of plain text passwords.
○ This makes it more difficult for attackers to compromise passwords, even if they
gain access to the database.
● Blockchain Technology:
○ Securing and verifying transactions in blockchain networks.
○ Creating unique identifiers for blocks.
○ Verifying the integrity of the blockchain by comparing hash values of consecutive
blocks.

b) Tasks of Miners

Miners are individuals or entities that validate and add new transactions to a blockchain. Their
primary tasks include:

1. Solving Cryptographic Puzzles:

○ Miners use powerful computers to solve complex mathematical problems.
○ The first miner to solve a puzzle is rewarded with a block reward.
2. Validating Transactions:
○ Verifying the authenticity and legitimacy of each transaction.
○ Ensuring that transactions are valid and follow the rules of the blockchain.
3. Adding Blocks to the Blockchain:
○ Once a puzzle is solved, a new block containing verified transactions is added to
the chain.
○ This process helps to maintain the security and integrity of the blockchain.
4. Securing the Network:
○ Miners contribute to the overall security of the blockchain by participating in the
consensus mechanism.
○ This helps to prevent malicious actors from tampering with the blockchain.
 Blockchain Solved Question paper 2023 October

Q1) attempt any 8 for each 1 marks

a) What is hash function?

b) Define PoW.
c) What is DApp?
d) What is consensus?
e) What is Nonce?
f) What is Ether?
g) Give the name of crypto currencies where blockchain is used.
h) What is DAO?
i) What is plain text and cipher text?
j) What is a smart contract?

Answer :

a) Hash Function: A hash function is a mathematical function that maps data of arbitrary size to
a fixed-size value. This fixed-size value is often called a hash, hash value, checksum, or
message digest. Hash functions are used to verify data integrity, create digital signatures, and
store passwords securely.

b) Proof of Work (PoW): A consensus mechanism used in blockchains where miners compete
to solve complex mathematical problems. The first miner to solve a puzzle is rewarded with a
block reward, and their solution is added to the blockchain. This process ensures the security
and integrity of the blockchain.

c) DApp: A DApp, or Decentralized Application, is an application that runs on a decentralized

network of computers, often a blockchain. DApps are resistant to censorship and offer greater
transparency and security compared to traditional applications.

d) Consensus: Consensus is the process by which a decentralized network of nodes agrees on

the state of the blockchain. This ensures that all nodes have a consistent and accurate record of
transactions.

e) Nonce: A nonce is a number used only once. In the context of cryptocurrencies, it's a number
used to create a unique hash for each block in the blockchain.

f) Ether: Ether is the native cryptocurrency of the Ethereum blockchain. It's used to pay
transaction fees and reward miners for processing transactions.

g) Some cryptocurrencies where blockchain is used include: Bitcoin, Ethereum, Litecoin, Ripple,
Cardano, and many others.
h) DAO: A DAO, or Decentralized Autonomous Organization, is an organization that is run by
rules encoded as computer programs. DAOs are controlled by their members and operate
without central authority.

i) Plaintext: Plaintext is the original, readable form of data before encryption. Ciphertext:
Ciphertext is the encrypted form of data, which is unreadable without the decryption key.

j) Smart Contract: A smart contract is a self-executing contract with the terms of the agreement
directly written into code. It operates on a blockchain and automatically executes when specific
conditions are met.

Q2) attempt any 4 for each 2 marks

a) What are the advantages of smart contract?

b) What is hard fork and soft fork?
c) What is PoS? Which blockchain uses PoS?
d) Explain symmetric & asymmetric key cryptography.
e) Explain the structure of blocks in Blockchain.

Answer :

a) Advantages of Smart Contracts

● Automation: Smart contracts automate processes, reducing the need for intermediaries
and human intervention.
●
● Transparency: All actions and data associated with a smart contract are recorded on
the blockchain, ensuring transparency and accountability.
●
● Security: Smart contracts are executed according to the predefined rules of the code,
minimizing the risk of errors and fraud.
●
● Efficiency: By automating processes and reducing paperwork, smart contracts can
streamline operations and save costs.
●
● Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or
deleted, ensuring data integrity.
●

b) Hard Fork and Soft Fork

● Hard Fork: A significant change to the protocol rules of a blockchain that results in the
creation of a new blockchain. This change is not backward compatible, meaning that
 nodes running the old version will not be able to validate blocks created by the new
version.
●
● Soft Fork: A change to the protocol rules that is backward compatible. Nodes running
the old version can still validate blocks created by the new version. Soft forks are often
used to introduce new features or improve the efficiency of the blockchain.
●

c) PoS and Blockchain Using PoS

● Proof of Stake (PoS): A consensus mechanism where validators are selected to create
new blocks based on the amount of cryptocurrency they stake. This reduces energy
consumption compared to Proof of Work (PoW).
●
● Blockchain Using PoS: Ethereum, Cardano, Solana, and Tezos are some of the
prominent blockchains that utilize PoS.
●

d) Symmetric and Asymmetric Key Cryptography

● Symmetric Key Cryptography: Uses a single key for both encryption and decryption.
It's faster but requires secure key distribution.
●
● Asymmetric Key Cryptography: Uses a pair of keys: a public key for encryption and a
private key for decryption. It's slower but offers better security and doesn't require secure
key distribution.

e) Structure of Blocks in Blockchain

A block in a blockchain typically consists of:

1. Block Header:
○ Previous Block Hash: A cryptographic hash of the previous block, linking blocks
together.
○
○ Nonce: A random number used to generate the block's hash.
○ Timestamp: The time when the block was created.
○ Merkle Root: A cryptographic hash of all transactions included in the block.
○
2. Transactions: A set of transactions that have been verified and bundled together. Each
transaction includes:
○ Sender's Address: The address of the sender of the transaction.
○ Recipient's Address: The address of the recipient of the transaction.
○ Amount: The amount of cryptocurrency being transferred.
 ○ Digital Signature: A cryptographic signature to verify the sender's identity

Q3) attempt any 2 for each 4 marks

a) Which are the different types of Blockchain?

b) What are the challenges of Blockchain?
c) Write a short note on ICO

Answer :

a) Types of Blockchain

There are primarily three types of blockchains:

1. Public Blockchain:
○ Open to everyone.
○ Anyone can participate in the network.
○ Highly transparent and decentralized.
○ Examples: Bitcoin, Ethereum
2. Private Blockchain:
○ Controlled by a specific organization or group.
○ Access is restricted to authorized participants.
○ Less transparent but offers more control.
○ Examples: Enterprise blockchain solutions for supply chain management,
finance, etc.
3. Consortium Blockchain:
○ Controlled by a group of organizations.
○ Multiple organizations collaborate to validate and add blocks to the chain.
○ Offers a balance between decentralization and control.
○ Examples: Hyperledger Fabric, Corda

b) Challenges of Blockchain

● Scalability: As the number of transactions increases, blockchains can become slow and
expensive.
● Energy Consumption: Proof-of-Work consensus mechanisms, like those used by
Bitcoin, require significant energy consumption.
● Complexity: Blockchain technology can be complex to understand and implement,
especially for non-technical users.
● Regulatory Uncertainty: The regulatory landscape for blockchain is still evolving,
creating uncertainty for businesses and individuals.
● Security Risks: Blockchain networks are vulnerable to attacks, such as hacking and
phishing.
c) ICO (Initial Coin Offering)

An ICO is a fundraising method used by startups to raise capital by issuing their own
cryptocurrency tokens. Investors purchase these tokens in exchange for other cryptocurrencies,
such as Bitcoin or Ethereum. ICOs have gained popularity as a way for startups to bypass
traditional funding methods. However, they are also subject to regulatory scrutiny and potential
risks for investors

Q4) attempt any 2 for each 4 marks

a) Write a short note on digital signature.

b) Explain the working of mining.
c) Write a short note on Byzentine fault tolerance.

Answer :

a) Digital Signature

A digital signature is a cryptographic technique used to authenticate the origin and integrity of a
digital message or document. It involves a mathematical scheme for verifying the authenticity of
digital messages or documents. A digital signature is created using a private key and can be
verified using the corresponding public key.

b) Working of Mining

Mining is the process of validating and adding new transactions to a blockchain. Here's how it
works:

1. Transaction Verification: Miners verify the authenticity and validity of each transaction.
2. Creating a Block: Miners collect verified transactions and create a new block.
3. Solving a Cryptographic Puzzle: Miners compete to solve a complex mathematical
puzzle.
4. Adding the Block to the Blockchain: The first miner to solve the puzzle adds the block
to the blockchain.
5. Reward: The miner who successfully adds a block to the blockchain is rewarded with a
certain amount of cryptocurrency.

c) Byzantine Fault Tolerance

Byzantine Fault Tolerance (BFT) is a mechanism that allows a distributed system to continue
operating correctly even if some of its nodes are faulty or malicious. It's essential for blockchain
networks to maintain their security and reliability. BFT algorithms ensure that the majority of
honest nodes can reach consensus on the state of the blockchain, even if some nodes are
behaving maliciously.
Q5) attempt any 1 for 3 marks

a) Which are the different data types in solidity?

b) Differentiate between blockchain and database

Answer :

a) Different Data Types in Solidity

Solidity, the programming language used to write smart contracts on the Ethereum blockchain,
supports various data types. Here are some of the key data types:

Value Types:

● Integer Types: uint8, uint16, uint32, uint64, uint128, uint256, int8, int16,
int32, int64, int128, int256
● Boolean: bool
● Address: address
● Fixed-Size Byte Arrays: bytes1 to bytes32
● Dynamic-Size Byte Arrays: bytes and string

Reference Types:

● Arrays: Arrays can be fixed-size or dynamic-size.

●
● Structs: User-defined data types that group variables of different types.
●
● Mappings: Key-value pairs where keys are of any type, and values are of any type.
b) Blockchain vs. Database

Feature Blockchain Database

Centralization Decentralized Centralized
Immutability Immutable Mutable

Security depends on the database system and its

Security Highly secure due to cryptography implementation

Transparency depends on the database's

Transparency Transparent, all transactions are visible configuration

Can be limited, especially for public Can be highly scalable, depending on the
Scalability blockchains database system

Cryptocurrencies, smart contracts, supply Various applications, including financial systems,

Use Cases chain management, voting systems e-commerce, and data warehousing