S-24

Q.1 (a) Define (1) Blockchain (2) Cryptocurrency (3) Token

1. Blockchain:

A blockchain is a digital ledger that records transactions across many computers in a way that the
registered transactions cannot be altered retroactively.

This technology ensures transparency and security, as all participants in the network can see the
same data, and once a transaction is added, it becomes part of a chain of blocks that are linked
together.

2. Cryptocurrency:

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security.

It operates on a technology called blockchain, which allows for secure and anonymous transactions.

Bitcoin is the most well-known cryptocurrency, but there are thousands of others, each with its own
unique features and uses.

3. Token:

A token in blockchain is a digital asset that represents value or utility.

There are different types, like utility tokens for accessing services, security tokens for ownership of
assets, and governance tokens for voting in projects.

Tokens can be traded and are key to many blockchain platforms.

(b) Explain Consensus Protocol.

W-23 2(a)

(c) Discuss blockchain’s working process with its architecture

### Blockchain Working Process:

Diagram

1. Transaction Initiation: The process starts when a user wants to make a transaction (like sending
cryptocurrency). They create a transaction request.
2. Broadcasting the Transaction: This request is sent to a network of nodes (computers) that maintain
the blockchain.

3. Validation: Nodes in the network validate the transaction. They check if the sender has sufficient
balance and if the transaction meets the network's rules.

4. Creating a Block: Validated transactions are grouped together into a block. Each block contains a
list of transactions, a timestamp, and a reference to the previous block.

5. Consensus Mechanism: The network uses a consensus protocol (like Proof of Work or Proof of
Stake) to agree on the validity of the new block. This ensures that all nodes have the same version of
the blockchain.

6. Adding the Block to the Chain: Once consensus is reached, the new block is added to the existing
blockchain. Each block is linked to the previous one through a cryptographic hash, creating a secure
chain.

7. Transaction Completion: The transaction is now complete and permanently recorded on the
blockchain, making it immutable and transparent.

### Blockchain Architecture:

- Nodes: These are the individual computers that participate in the blockchain network. They can be
full nodes (which store the entire blockchain) or lightweight nodes (which store only part of it).

- Blocks: Each block contains a collection of transactions, a timestamp, a nonce (used in Proof of
Work), and the hash of the previous block, linking it to the chain.

- Chain: This is the series of blocks connected in chronological order, forming the complete
transaction history.

- Consensus Layer: This is the mechanism that allows nodes to agree on the state of the blockchain,
ensuring all transactions are validated before being added.
- Cryptographic Hashing: This technique secures the data in the blocks. A hash is a fixed-length string
generated from the block's content, and any change in the block will result in a different hash,
making it easy to detect tampering.

Q.2 (a) Discuss importance of Merkle trees in blockchain.

W-21 3(b)

(b) Elaborate features of Smart Contract with example.

Smart contracts are self-executing contracts with the terms of the agreement directly written into
code. They run on blockchain technology, which ensures transparency, security, and immutability.
Here are some key features of smart contracts:

1. Automation: Smart contracts automatically execute actions when predefined conditions are met.
For example, in a real estate transaction, when the buyer sends the payment, the smart contract can
automatically transfer the property title to the buyer.

2. Transparency: Since smart contracts are stored on a public blockchain, all parties can see the
contract terms and execution, which helps build trust.

For instance, in a supply chain scenario, all stakeholders can track the movement of goods and verify
that conditions are met.

3. Security: Smart contracts use cryptographic security, making them difficult to tamper with. This
ensures that once a contract is deployed, it cannot be altered without consensus from the network.

For example, a smart contract for insurance can automatically pay out claims once verified conditions
are met, reducing the risk of fraud.

4. Cost Efficiency: By eliminating intermediaries, smart contracts can reduce costs associated with
contract execution. For example, in peer-to-peer lending, a smart contract can facilitate loans directly
between individuals without the need for banks or brokers.

5. Accuracy: Smart contracts minimize human error by automating processes.

For example, in an online marketplace, a smart contract can ensure that funds are only released to
the seller once the buyer confirms receipt of the goods.

6. Immutability: Once a smart contract is deployed on the blockchain, it cannot be changed or

deleted. This ensures that the terms are permanent and enforceable.
For instance, in a voting system, the rules and votes recorded in smart contracts cannot be altered
after the election is concluded.

(c) Explain bitcoin with its characteristics.

Bitcoin is a digital currency that allows people to send and receive money over the internet without
the need for a central authority, like a bank.

It was created in 2009 and uses a technology called blockchain, which is a secure and public record of
all transactions. Bitcoin has a limited supply of 21 million coins, making it scarce.

Transactions are made using digital wallets, and the process of creating new Bitcoins is called mining.

Bitcoin's value can fluctuate significantly, sometimes it works and sometimes it down significantly.

1. Decentralization: Bitcoin isn’t controlled by any one person or organization, like a bank or
government. Instead, it runs on a network of computers around the world. This means that no single
entity can decide what happens with Bitcoin, making it more independent.

2. Limited Supply: There will only ever be 21 million Bitcoins available. This limit is built into its design
to prevent inflation, which is when money loses value over time. Because there’s a cap, people
believe it can hold its value better than currencies that can be printed in unlimited amounts.

3. Blockchain Technology: Bitcoin transactions are recorded on something called a blockchain. Think
of the blockchain as a digital notebook that everyone can see. Each page (or block) of this notebook
contains a list of transactions. Once a page is full, it gets added to the notebook, and it can’t be
changed. This makes it very secure and trustworthy.

4. Anonymity and Pseudonymity: When you use Bitcoin, your identity isn’t directly linked to your
transactions. Instead of using your name, you have a unique address (like an email address) that
people use to send you Bitcoin. This gives you some privacy, but it’s not completely anonymous
because all transactions are visible on the blockchain.

5. Security: Bitcoin uses strong math and computer science to keep everything safe. Miners, who are
people using powerful computers, solve complicated problems to confirm transactions. This process
makes it hard for anyone to cheat or steal Bitcoin.
6. Divisibility: You don’t have to buy a whole Bitcoin; you can buy a tiny piece of it. The smallest part
of a Bitcoin is called a "satoshi," and it’s like a penny compared to a dollar. This allows people to
make very small purchases or investments.

7. Global Accessibility: You can send and receive Bitcoin anywhere in the world as long as you have
internet access. This is great for people in places where traditional banking services are limited or
unavailable.

8. Volatility: The price of Bitcoin can change a lot in a short time. One day it might be worth a lot, and
the next day it could drop significantly. This can be exciting for traders but also risky for people who
want to invest.

(c) Explain Ethereum with its characteristics.

Ethereum is a decentralized blockchain platform that allows developers to create smart contracts and
decentralized applications (dApps).

Launched in 2015, it uses its cryptocurrency called Ether (ETH) for transactions.

Unlike Bitcoin, Ethereum supports more complex operations, enabling various applications like
decentralized finance (DeFi) and non-fungible tokens (NFTs).

It is transitioning to a proof-of-stake system to improve efficiency and scalability.

1. Smart Contracts:

- Smart contracts are like computer programs that automatically do things when certain conditions
are met.

- They help people make agreements without needing a middleman, saving time and money.

- Because they are coded, smart contracts ensure that everything happens as promised.

2. Decentralized Applications (dApps):

- Decentralized applications, or dApps, run on the Ethereum blockchain and are not controlled by
one single company.

- This makes them safer and harder to shut down compared to regular apps.

- dApps can be used for many things, like games, finance, and social media.

3. Ether (ETH):

- Ether, or ETH, is the main currency used on the Ethereum network for transactions.
 - People use ETH to pay for services and transactions on the platform.

- You can also trade ETH on various cryptocurrency exchanges.

4. Token Standards:

- The ERC-20 standard allows developers to create tokens that can be used like money and are
interchangeable.

- The ERC-721 standard is for creating unique tokens called non-fungible tokens (NFTs), which
represent one-of-a-kind items.

- These standards make it easier for developers to create and manage their own tokens on
Ethereum.

5. Decentralized Finance (DeFi):

- Decentralized finance, or DeFi, offers financial services without banks or middlemen.

- It includes platforms for lending, borrowing, and trading, allowing users to manage their finances
directly.

- This gives users full control over their money and assets.

6. Non-Fungible Tokens (NFTs):

- Non-fungible tokens, or NFTs, are unique digital items that show ownership of art, music, and
other creative works.

- They are built on the Ethereum blockchain, letting creators sell their work directly to buyers.

- Each NFT is different, which makes them valuable to collectors.

7. Transition to Proof of Stake (PoS):

- Ethereum is changing from a mining system (Proof of Work) to a more eco-friendly system called
Proof of Stake.

- In Proof of Stake, validators are chosen based on how much ETH they hold and are willing to use
as a stake.

- This change aims to make the network faster, cheaper, and more secure, while also being better
for the environment.

Q.3 (a) Write short note on : digital signature

A digital signature is a cryptographic technique used to validate the authenticity and integrity of
digital messages or documents. It serves as a virtual fingerprint, ensuring that the document has not
been altered in transit and confirming the identity of the sender.

They enhance security in electronic transactions and communications, making them essential in
today’s digital world.

Key features of digital signatures include:

1. Authentication: Digital signatures verify the identity of the signer, ensuring that the message or
document comes from a legitimate source.

2. Integrity: They provide assurance that the content has not been tampered with after signing. If any
changes occur, the digital signature becomes invalid.

3. Non-repudiation: Once a document is signed digitally, the signer cannot deny having signed it, as
the signature is uniquely linked to their identity.

applications:

securing emails

Signing contracts,

validating software downloads.

(b) Describe key characteristics of Public Blockchain.

Public blockchains are decentralized networks that allow anyone to participate in the network,
whether by validating transactions or accessing the data. Here are some key characteristics of public
blockchains:

1. Decentralization: Public blockchains operate on a decentralized network of nodes, meaning that

no single entity has control over the entire network. This reduces the risk of manipulation or
centralized failure.

2. Transparency: All transactions on a public blockchain are visible to anyone. This transparency helps
build trust among users, as anyone can verify the authenticity of transactions.
3. Immutability: Once a transaction is recorded on a public blockchain, it cannot be altered or
deleted. This feature ensures the integrity of the data and provides a reliable history of transactions.

4. Permissionless Access: Anyone can join a public blockchain network without needing permission
from a central authority. This openness encourages participation and innovation.

5. Consensus Mechanisms: Public blockchains use consensus algorithms (like Proof of Work or Proof
of Stake) to validate transactions and maintain the integrity of the network. These mechanisms
ensure that all participants agree on the state of the blockchain.

6. Security: Public blockchains are generally secure due to their large number of participants and the
cryptographic techniques used to validate transactions. The decentralized nature makes it difficult for
malicious actors to compromise the network.

7. Incentives: Public blockchains often reward people who help keep the network running, like
miners or validators, with cryptocurrency. This encourages more people to participate and keep the
system secure.

8. Global Access: Anyone from anywhere in the world can use a public blockchain as long as they
have internet access. This means people from different countries can join in and use the technology.

Examples of public blockchains include Bitcoin and Ethereum, which are widely used for
cryptocurrencies and smart contracts, respectively.

(c) Discuss different types of Cryptocurrencies with its real time usage

Winter paper

OR Q.3 (a) Write short note on : Byzantine Fault no.

W-22 4(a)

(b) Analyze smart contract for education sector.

Smart contracts can significantly transform the education sector by automating processes, enhancing
transparency, and improving efficiency. Here’s an analysis of how smart contracts can be applied in
education:
1. Automated Credential Verification: Smart contracts can be used to automatically verify academic
credentials and certifications. When a student completes a course, the smart contract can issue a
digital certificate that is securely stored on the blockchain. Employers or other institutions can easily
verify the authenticity of these credentials without needing to contact the issuing institution.

2. Transparent Funding and Scholarships: Smart contracts can streamline the management of
scholarships and funding. For example, funds can be released automatically to students based on
predefined criteria, such as maintaining a certain GPA or completing specific milestones. This ensures
that funds are used appropriately and reduces administrative overhead.

3. Decentralized Learning Platforms: Smart contracts can facilitate decentralized education platforms
where educators and learners can connect directly. Payments for courses could be handled through
smart contracts, ensuring that educators receive payment upon successful completion of a course.
This creates a more direct relationship between teachers and students.

4. Secure and Transparent Record Keeping: Student records, including grades and attendance, can be
securely stored on a blockchain using smart contracts. This ensures that records are tamper-proof
and easily accessible to authorized parties, such as students and educational institutions.

5. Incentivizing Participation: Smart contracts can be designed to reward students for their
participation and achievements. For instance, students could earn tokens for completing assignments
or participating in discussions, which could be redeemed for educational resources or discounts on
future courses.

Overall, smart contracts have the potential to make the education sector more efficient, secure, and
accessible. By automating processes and ensuring transparency, they can help improve the overall
experience for students and educators alike.

(c) Explain various types of blockchain in detail.

W-21

Q.4 (a) Describe Ripple blockchain with its important use cases.

- Ripple is a digital payment protocol and cryptocurrency that enables fast and low-cost international
money transfers.

- It was designed to facilitate transactions between financial institutions rather than serving as a
public ledger for general use. -Ripple uses a consensus algorithm called the Ripple Protocol
Consensus Algorithm (RPCA) to validate transactions, allowing for quick settlements, typically within
seconds.
Use cases:

1. Cross-Border Payments: Banks can use Ripple to send money to other countries quickly and
cheaply. This helps businesses and individuals avoid high fees typically associated with international
transfers.

2. Money Transfers: People can use Ripple to send cash to family or friends in different countries
easily and at low cost. It's a great way to support loved ones without worrying about long wait times.

3. Cash Flow Management: Banks can use Ripple to manage their money better, helping them not to
keep too much money in different currencies. This increases their ability to use funds for other
investments.

4. Payment Settlement: Ripple allows banks to settle payments with each other right away, saving
time and money compared to traditional methods.

5. Working with Banks: Many banks are adding Ripple's technology to make their payment systems
faster and more efficient.

(b) Write short note on : Hyperledger platform

W-23 2(c)

(c) Explain different algorithms of Permissioned Blockchain.

W-22 5(c)

Q.4 (a) Give brief overview of Corda .

1. Definition: Corda is a blockchain platform designed for businesses to conduct secure transactions.

2. Privacy: Corda emphasizes privacy by allowing only the involved parties to see transaction details,
unlike traditional blockchains where everyone can access the data.

3. Smart Contracts: It uses smart contracts, which are automated agreements that execute when
specific conditions are met, helping to streamline processes and reduce the need for intermediaries.
4. Distributed Ledger Technology: Corda is a type of distributed ledger technology (DLT) focused on
legal agreements and business transactions rather than being a general-purpose blockchain.

5. Integration: Corda can easily integrate with existing business systems, making it user-friendly for
companies looking to adopt it.

6. Industry Applications: It is widely used in sectors like finance, healthcare, and supply chain
management to improve efficiency and trust between parties.

7. Corda Network: The platform includes a network that connects different organizations, enabling
secure transactions and data sharing.

(b) Describe key characteristics of Consortium Blockchain .

In

(c) Explain following protocols: (1) Proof-of-work (2) Proof-of-stake .

Q.5 (a) Analyze blockchain implementation in the context of data security.

1. Decentralization: One of the key features of blockchain is that it is decentralized. This means that
instead of having a single point of control (like a central server), the data is distributed across a
network of computers (nodes). This reduces the risk of data breaches because there is no central
location for hackers to target.

2. Immutability: Once data is added to the blockchain, it cannot be altered or deleted. This
immutability ensures that the transaction history is secure and tamper-proof. If someone tries to
change a record, it would require altering all subsequent blocks in the chain, which is practically
impossible without consensus from the network.

3. Encryption: Blockchain uses cryptographic techniques to secure data. Each transaction is

encrypted and linked to the previous transaction, creating a secure chain. This encryption protects
sensitive information from unauthorized access.

4. Consensus Mechanisms: Blockchains use consensus algorithms (like Proof of Work or Proof of
Stake) to validate transactions. This means that before a transaction is added to the blockchain, it
must be verified by multiple participants in the network. This process enhances security by
preventing fraudulent transactions.
5. Transparency and Auditability: While blockchain ensures privacy through encryption, it also
provides transparency. All transactions are recorded on the blockchain, allowing for easy auditing
and verification. This transparency builds trust among participants because they can independently
verify the integrity of the data.

6. Access Control: Many blockchain implementations allow for permissioned access, where only
authorized users can view or interact with certain data. This adds an extra layer of security by
ensuring that sensitive information is only accessible to those who need it.

7. Resilience Against Attacks: The distributed nature of blockchain makes it resilient against attacks.
Even if one node is compromised, the integrity of the overall network remains intact because the
data is replicated across multiple nodes.

(b) Describe the challenges of blockchain implementation.

W-21 4(b)

(c) Discuss various applications of blockchain in education sector.

1. Checking Degrees:

- It helps employers verify if a degree is real.

- This reduces the chances of fake degrees being used.

2. Keeping Student Records:

- Student grades and attendance can be stored securely.

- It makes transferring to another school easier since records can be shared quickly.

3. Learning Platforms:

- It connects students and teachers directly online.

- This can create better learning experiences without needing a physical school.

4. Skill Badges:

- Schools can award digital badges for specific skills.

 - These badges can be shared easily to show what a student can do.

5. Tuition Payments:

- Smart contracts can automate tuition payments.

- Payments happen only when certain conditions are met, like completing a course.

6. Sharing Research:

- Schools can share research data securely.

- This promotes collaboration while protecting everyone’s ideas.

7. Staying in Touch with Alumni:

- Schools can keep a secure list of former students.

- This helps maintain connections for events or donations.

8. Digital Learning Records:

- Students can have a digital wallet for all their courses and skills.

- They can easily share this with employers during job searches.

Q.5 (a) Identity scope of blockchain technology in three business domains.

1. Finance:

- Blockchain makes money transfers faster and cheaper by removing banks from the equation.

- It keeps transactions secure and helps prevent fraud, which builds trust.

2. Supply Chain Management:

- It tracks products from the maker to the buyer, making everything clear and open.

- It helps confirm that products are real, which is super important for food safety and luxury items.

3. Healthcare:

- Blockchain can safely store patient records, making it easy for doctors to find important info.

- It helps track medicines to stop fake drugs from being sold.

4. Real Estate:

- It makes property deals easier by keeping a clear record of who owns what, reducing fraud.

- Smart contracts can automate tasks like holding money until conditions are met during a sale.

5. Voting Systems:

- Blockchain can make voting safer and clearer. Each vote is recorded in a way that can't be
changed.

- This can help people trust election results more because there’s a clear record of all votes.

(b) Describe the limitations of blockchain implementation.

W-21

(c) Discuss various applications of blockchain in healthcare sector.

1. Storing Patient Records:

- Blockchain technology allows for the secure storage of patient medical records. Each patient's
data is stored in blocks that are linked together, making it easy for authorized healthcare providers to
access the information. This ensures that records are not lost or tampered with, and patients can
have a complete history available whenever they visit a new doctor.

2. Tracking Medicines:

- With blockchain, every step a medication takes from the manufacturer to the pharmacy can be
recorded. This creates a transparent supply chain that helps prevent counterfeit drugs from entering
the market. If a patient receives a medication, they can trace its origin and verify its authenticity,
which is crucial for safety.

3. Managing Clinical Trials:

- Clinical trials often involve large amounts of data that need to be collected and analyzed.
Blockchain can provide a secure way to record this data, ensuring that it is accurate and cannot be
altered after it has been entered. This transparency can increase trust in trial results and help speed
up the approval process for new treatments.

4. Simplifying Billing:
 - Billing in healthcare can be complicated and often leads to disputes. Blockchain can streamline
this process by providing a clear and secure record of all transactions. This reduces the chances of
fraud and errors, making it easier for patients to understand their bills and for providers to get paid
accurately and on time.

5. Securing Telemedicine:

- As telemedicine becomes more popular, protecting patient information during virtual visits is
essential. Blockchain can encrypt and secure the data shared between patients and doctors during
these consultations, ensuring that sensitive information remains private and is only accessible to
authorized individuals.

6. Sharing Health Information:

- Different healthcare providers often need access to the same patient information to provide
coordinated care. Blockchain can facilitate the secure sharing of health records between hospitals,
clinics, and specialists. This ensures that everyone involved in a patient's care has the necessary
information to make informed decisions.

7. Personal Health Control:

- With blockchain, patients can have more control over their own health records. They can manage
who has access to their information and can share it with different healthcare providers as needed.
This empowers patients to take an active role in their healthcare and ensures their privacy.