Q 1. What do you know about Blockchain?

What is the
difference between Bitcoin blockchain and Ethereum
blockchain?

The blockchain is a decentralized distributed database of immutable records. The technology

was discovered with the invention of Bitcoins(the first cryptocurrency). It’s a trusted approach
and there are a lot of companies in the present scenario which are using it. As everything is
secure, and because it’s an open source approach, it can easily be trusted in the long run.

Bitcoin Blockchain and Ethereum Blockchain

Topics Bitcoin Ethereum
Concept Digital Currency Smart Contracts
Founder Satoshi Nakamoto Vitalik Buterin
Release Method Genesis Block Mined Presale
Cryptocurrency Used Bitcoin(Satoshi) Ether
Algorithm SHA-256 Ethash
Blocks Time 10 Minutes 12-14 Seconds
Scalable Not yet Yes
Q 2. What is the principle on which blockchain technology is
based on?

It enables the information to be distributed among the users without being copied.

Q 3. What are the different types of Blockchains?

Blockchains are of three types:

Q 4. Why is Blockchain a trusted approach?

 Blockchain can be trusted due to so many reasons.

 Its compatibility with other business applications due to its open-source nature.
 Its security. As it was meant for online transactions, the developers have paid special
attention to keeping up the pace when it comes to its security.
 It really doesn’t matter what type of business one owns, Blockchain can easily be
considered.

Q 5. Name the two types of records that are present in the

blockchain database?

These records are block records and transactional records. Both these records can easily be
accessed, and the best thing is, it is possible to integrate them with each other without following
the complex algorithms.

Q 6. Blockchain is a distributed database. How does it

differ from traditional databases?

Properties Blockchain Traditional Database

Can perform C.R.U.D.
Operations Only Insert Operations
operations
Full Replication of block on Master Slave
Replication
every peer Multi-Master
Majority of peers agree on the Distributed Transactions
Consensus
outcome of transactions (2 phase commit)
Anybody can validate
Invariants transactions across the Integrity Constraints
network
Q 7. What are the properties of Blockchain?
There are four key features of blockchain:

 Decentralized Systems
 Distributed ledger
 Safer & Secure Ecosystem
 Minting

Q 8. What is encryption? What is its role in Blockchain?

Data security always matters. Encryption is basically an approach that helps organizations to
keep their data secure.

The encrypted data is encoded or changed up to some extent before it is sent out of a network by
the sender and only authorized parties can access that information.In Blockchain, this approach
is useful because it simply adds more to the overall security and authenticity of blocks and helps
to keep them secure.

Q 9. What do you mean by blocks in the blockchain

technology?
Blockchain consists of a list of records. Such records are stored in blocks. These blocks are in
turn linked with other blocks and hence constitute a chain called Blockchain.

Q 10. How does a block is recognized in the Blockchain

approach?

Every block in this online ledger basically consists of a hash pointer which acts as a link to the
block which is prior to it, transaction data and in fact a stamp of time.

Q 11. Is it possible to modify the data once it is written in a

block?

No, it’s not possible to do so. In case any modification is required, the organization simply has to
erase the information from all other blocks too. It is because of no other reason than this, data
must be given the extreme care of while using this approach.

Q 12. What are Block Identifiers?

In Blockchain, blocks can be identified by the block header hash and the block height.

Q 13. Is it possible in Blockchain to remove one or more

block from the networks?

Yes, it can be done. There are times when only a specific portion of this online ledger is to be
considered. With the help of default options and filters, this can easily be done without making a
lot of efforts.

Q 14. What exactly do you know about the security of a

block?
Well, a block or the entire blockchain is protected by a strong cryptographic hash algorithm.
Each block has a unique hash pointer. Any modification in the block constituents will result in
the change in the hash identifier of the block. Therefore, it offers an excellent level of security.
Thus, one needs not to worry about the safety as well as the security of data that is present in a
block.

Q 15. What are Merkle trees? How important are Merkle

trees in Blockchains?

Merkle Tree also known as ‘hash tree’ is a data structure in cryptography in which each leaf
node is a hash of a block of data, and each non-leaf node is a hash of its child nodes.

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The benefit of using the Merkle Tree in blockchain is that instead of downloading every
transaction and every block, a “light client” can only download the chain of block headers.

Also, if someone needs to verify the existence of a specific transaction in a block, then he
doesn’t have to download the entire block. Downloading a set of a branch of this tree which
contains this transaction is enough. We check the hashes which are just going up the branch
(relevant to my transaction). If these hashes check out good, then we know that this particular
transaction exist in this block.

Q 16. What is a ledger? Is Blockchain an incorruptible

ledger?

Blockchain is considered incorruptible. Any ill-intentioned individual acting alone is powerless.

“To take over the network, an attacker would have to control more than 50 percent of its total
computing power,” Augier explains. “We hope that’s a theoretical scenario, but we can’t be sure.
Should it happen, the individual would take every precaution to avoid being noticed.” Not to
mention the energy required to power the computers needed for the blockchain system to work.

Q 17. Name the common type of ledgers that can be

considered by users in Blockchain?

These are:

Q 18. How is a blockchain ledger different from an ordinary one?

The first and in fact the prime difference is Blockchain is a digital ledger that can be
decentralized very easily. The chances of error in this approach are far less than that in an
ordinary ledger. An ordinary ledger is what that is prepared by hands or by human efforts while
the Blockchain performs all its tasks automatically. You just need to configure it in a proper
manner and by following all the guidelines.

Q 19. What type of records can be kept in a Blockchain? Is

there any restriction on same?

There is no restriction on keeping records of any type in the Blockchain approach. Industries are
using Blockchain for securing all types of records.

The common types of records (to name a few) that can be kept on the Blockchains are:

 Records of medical transactions

 Identity management
 Transaction processing
 Business transactions,
 Management activities
 Documentation

Q 20. A distributed digital ledger is used for recording

transaction in Blockchain. What does the system rely on?

The system relies on the network servicing protocol and the nodes of the network.

Q 21. Can You explain the components of Blockchain

Ecosystem?

Following are the components of blockchain Ecosystem:

Q 22. State difference between proof-of-work & proof-of-
stake?
 Proof-of-work vs proof-of-stake
Q 23. Name some popular platforms for developing
blockchain applications

After the development of bitcoin, various blockchain platforms started coming up. Ethereum
came right after the evolution of Bitcoins, and is one of the popular public platforms for building
Blockchain based applications.

Then there is a Hyperledger community for building enterprise-based solutions. Also, Qtum,
IOTA, EOS are some of the widely used platforms for building Blockchain.

Q 24. What is Double Spending? Is it possible to double

spend in a Blockchain system?

It’s a condition when one digital token is spent multiple times because the token generally
consists of a digital file that can easily be cloned. It simply leads to inflation and organizations
must bear a huge loss. One of the primary aims of Blockchain technology is to eliminate this
approach up to the possible extent.
Blockchain prevents double spending by confirming a transaction by multiple parties before the
actual transaction is written to the ledger. It’s no exaggeration to say that the entirety of bitcoin’s
system of Blockchain, mining, proof of work, difficulty etc, exist to produce this history of
transactions that is computationally impractical to modify.

Q 25. What are the benefits of Blockchain that you know?

Multiple Choice Blockchain Interview

Questions
Q 1. Each block of a Blockchain consists of which of the
following?

A hash pointer to the previous block

Timestamp
List of transactions
All of the above [Ans]
Q 2. Which of the following is first distributed blockchain
implementation?

Bitcoin [Ans]
Ethereum
Q 3. Bitcoin is based on ________ blockchain?

Private
Public [Ans]
Public Permissioned
Permissioned
Q 4. Blockchain can be stored as which of the following?

A flat file
A Database
Both of the above [Ans]
None of the above

Q 5. In blockchain, blocks are linked ________?

Backward to the previous block [Ans]

Forward to next block
Not linked with each other

Q 6. The primary benefit of immutability is…

Scalability
Improved Security
Tamper Proof
Increased Efficiency [Ans]
Q 7. Hash identifying each block in the Blockchain is
generated using which of the following cryptographic
algorithm?

SHA128
SHA256 [Ans]

Q 8. A block in the blockchain can never have more than one

parent block?

True [Ans]
False
Q 9. Blockchain forks can result in which of the following?
Multiple parent blocks
Multiple children blocks [Ans]

Q 10. Which of the following is asymmetric encryption

Algorithm?

Blowfish
Twofish
RSA [Ans]
Tripple DEA
Advanced Blockchain Interview Questions
Q 1. Can you tell me some of the widely used cryptographic
algorithms?

Q 2. Tell me more about RSA algorithm? How secure is this

algorithm?
Security of R.S.A.

There are different approaches used in attacking the RSA algorithm:

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 Brute force: It involves all possible secret keys

 Mathematical attacks: In mathematical attack, we are using different techniques, which
is similar in effort to factor the product of two primes

Q 3. Explain the significance of blind signature and how it is

useful?
It is a form of digital signature in which the content of a message is disguised (blinded) before it
is signed. The resulting blind signature can be publicly verified against the original, unblinded
message in the manner of a regular digital signature.

Blind signatures are typically employed in privacy-related protocols where the signer and
message author are different parties. Examples include cryptographic election systems
and digital cash schemes.

Q 4. What is Secret Sharing? Does it have any benefit in

Blockchain technology?

It is a well-known fact that security matters a lot in digital transactions. Secret sharing is an
approach meant for same. In Blockchain technology it is an approach that divides secret or
personal information into different units and sent them to the users on the network.

The original information can only be combined when a participant to whom a share of the secret
is allocated agree to combine them together with others. There are several security-related
benefits it can offer in Blockchain technology.

Q 5. Can you explain what are off-chain transactions?

An off-chain transaction is the movement of value outside of the blockchain. While an on-chain
transaction – usually referred to as simply ‘a transaction’ – modifies the blockchain and depends
on the blockchain to determine its validity an off-chain transaction relies on other methods to
record and validate the transaction.

Q 6. What exactly do you know about executive accounting?

Does Blockchain support the same?

Executive accounting is nothing but a special type of accounting which is designed exclusively
for a business that offers services to the people. There is no strict upper limit on services and a
business can manage any through the executive accounting. Blockchain has algorithms that are
specially meant to handle executive accounting. In fact, it cut down many problems that are
associated with the same.

Q 7. What are the threats to the information you are familiar

with?

There are lots of threats to information in the present scenario. Due to increase in online
transactions over the internet, many hackers have become active and are adopting new
approaches to hack information and servers that contain financial information.

The major threat is software attack, identity theft, information extortion, as well as sabotage. In
addition to this, Trojan horses, worms, and viruses are other trouble creators.
Q 8. How will you handle the risk management when it
comes to securing the transactions records?

It is basically a process of finding the threats and all the vulnerabilities to the financial records of
an organization. The best thing that can be done with this approach is to take the right
countermeasures against them immediately.

Another approach is to pay attention to a backup plan. Based on the value of information, more
approaches such as buying new risk management software can simply be considered. The prime
risk to information is from black-hat hackers.

Q 9. What is 51% attack?

51% Attack refers to a situation where a group of miners who hold more than 50% of the
Network Hash Rate could manipulate with the New transactions (Stopping the transactions to
proceed or gaining conformations) or able to reverse the transactions that were recently
confirmed and kind of doing Double spend. It is Highly unlikely to be able to do that today but it
is possible.

Q 10. What challenges information leak can impose on an

organization?

An information leak can cut down the reputation of an organization up to an excellent extent. In
addition to this, it can be the reason for organization bearing huge losses. Many organizations
who fail to implement security protocols to keep their data secure have already lost the trust of
their customers and are struggling very hard to get the same reputation again. The overall profits
of any organization can reduce up to 80% if no attention is paid to the online transaction security.

Q 11. What is information processing according to you?

What are the key challenges that are associated with it?

The information is often shared on a network. Before actually transmitting it over a network, it
needs to be changed into formats that can fit the standards of the channels (the channel is a link
between the sender and a receiver).

The work done to convert the information at both sender and receiver end is generally regarded
as information processing. The biggest challenge to information processing is securing it during
that time. Another challenge is processing bulk information can impose a limit on performance.

Q 12. Name organizations that can use Blockchain

technology?

There is no strict upper limit on the category of business who can consider this approach. The
fact is almost all the businesses are engaged in online or financial transactions that they need to
make to run the processes smoothly. Large-scale corporations, financial institutions, private
businesses, government departments and even defense organizations can trust this technology
very easily.

Q 13. What are the core requirements for a Business

Blockchain?

A business blockchain requires a shared ledger, smart contract functionality, privacy and trust.

Q 14. What are the key principles in Blockchain that are helpful in eliminating the security
threats that needs to be followed?

Yes, there are a few principles that need to be followed with respect to time. They are:
1.Auditing
2.Securing applications
3. Securing testing and similar approaches
4. Database security
5. Continuity planning
6. Digital workforce training

All these principles are basic and are easy to implement. They are helpful in making the
transactions records useful.

Q 15. What is a security policy?

A security policy defines what exactly needs to be secured on a system. It bounds a network user
under some core protocols that they all must agree and follow to enhance the overall security.
When it comes to information or financial records of an organization, multiple security policies
are implemented than just one.

Q 16. Is the Blockchain Different from Banking Ledgers?

Banks and accounting systems use ledgers to track and timestamp transactions. The difference is
that the blockchain is completely decentralized and an open source. This means that people do
not have to rely on or trust the central bank to keep track of the transactions. The peer-to-peer
blockchain technology can keep track of all the transactions without the fear of having them
erased or lost.

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Furthermore, the blockchain, because of its open-source nature, is more versatile and
programmable than central banking ledgers. If programmers need new functionality on the
blockchain, they can simply innovate on top of already existing software through consensus.
This is difficult for central banks because of all of their regulations and central points of failure.

Q 17. Can you list some of the popular consensus algorithms? Why we need different
consensus mechanisms?

Some of the popular consensus algorithms are:

 PBFT (Practical Byzantine Fault Tolerance)

 Proof-of-work
 Proof-of-stake
 Delegated proof-of-stake
 Proof-of-elapsed time

Now, the possible reasons why we need consensus mechanism more than “proof-of-work” are”

 Different business needs

 Different use cases
 Also:
 Cryptography/Strength of Algorithm
 Regulation requirements
 Implementation
 Performance
 Tokenization
 Security
 Privacy

Q 18. Is there any network specific conditions for using

Blockchain technology in an organization?

There is no specific condition of using it. However, the network must be a peer-to-peer network
under the concerned protocols. It validates the new block simply and helps organizations to keep
up the pace in this matter without investing in third-party applications.

Q 19. Name the steps that are involved in the Blockchain project
implementation?

Well, there are total six steps involved in this process and they are:

1. Requirement identification
2. Screen ideas consideration
3. Project development for Blockchain
 4. Feasible study on the security
5. Implementation
6. Controlling and monitoring the project

Q 20. Explain a real-life use-case where Blockchain is being used?

Blockchain in Stock Market

Problems in Present Stock Market:

Centralized and expensive

 Depositories and transfer agents are a single point of failure

 Registration, transfer, distribution, scrutineering, courier fees
 The more widely held, the higher the administration costs

Limited Transparency

 Information asymmetry leads to market advantages

 Forged securities still a concern
 Counterparty risk is systemic

How Blockchain solves the problem

The centralized hub can be removed and the blockchain can be used to directly transfer
share ownership between investors.

A ledger updated in minutes could save millions in collateral and settlement costs, while
also automating banks’ creaky and expensive back office systems.

1. Differentiate between Blockchain and Hyperledger.

Blockchain is a decentralized technology of immutable records called blocks, which are

secured using cryptography. Hyperledger is a platform or an organization that allows
people to build private Blockchain.

Using Blockchain you can build public and private Blockchain whereas with Hyperledger
you can only build private Blockchains.

Blockchain is divided into public, private, and consortium Blockchains and Hyperledger
is a private Blockchain technology with access to Blockchain data and is limited to
predefined users, configurations, and programming.

Blockchain can be used in multiple fields such as business, government, healthcare,

etc. while Hyperledger is primarily used for enterprise-based solutions. Wherever we
talk about public Blockchain, it refers to the usage of Blockchain on the internet, and
Hyperledger-based Blockchain solutions are solutions meant for usage on the intranet,
within an organization.

2. How do you explain Blockchain technology to someone who doesn't know

it?

Blockchain technology is a distributed ledger, which stores transaction details in the

form of immutable records or non-modifiable records (called blocks) which are secured
using cryptography.

Let’s consider the example of a school where Blockchain is similar to a digital report
card of a student. Say, each block contains a student record that has a label (stating the
date and time) of when the record was entered. Neither the teacher nor the student will
be able to modify the details of that block or the record of report cards. Also, the teacher
owns a private key that allows him/her to make new records and the student owns a
public key that allows him to view and access the report card at any time. So basically,
the teacher owns the right to update the record while the student only has the right to
view the record. This method makes the data secure.

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3. What is Merkel Tree?

Merkel Tree is a data structure that is used for verifying a block. It is in the form of a
binary tree containing cryptographic hashes of each block. A Merkle tree is structured
similarly to a binary tree where each leaf node is a hash of a block of transactional data
and each non-leaf node is a hash of its leaf node. The Merkel root or hash root is the
final hash root of all the transaction hashes. It encompasses all the transactions that are
underlying all the non-leaf nodes.

4. What do you mean by blocks in Blockchain technology?

Blockchain is a distributed database of immutable records called blocks, which are

secured using cryptography. Refer to the video to see the various attributes of a block.

There are a previous hash, transaction details, nonce, and target hash value. A block is
like a record of the transaction. Each time a block is verified, it gets recorded in
chronological order in the main Blockchain. Once the data is recorded, it cannot be
modified.

5. How is Blockchain distributed ledger different from a traditional ledger?

 A Blockchain distributed ledger is highly transparent as compared to a traditional

ledger.

 Blockchain distributed ledgers are irreversible. Information registered on a distributed

ledger cannot be modified whereas on a traditional ledger it is reversible.

 A distributed ledger is more secure. It uses cryptography and every transaction is

hashed and recorded whereas in traditional ledger security can be compromised.

 In a distributed ledger, there is no central authority. It is a distributed system and the

participants hold the authority to maintain the sanity of the network and are
responsible for validating the transactions. Traditional ledgers are based on the
concept of centralized control, which controls all transactions.

 In a distributed ledger, identities are unknown and hidden whereas in traditional

ledger identities of all participants have to be known before the transactions happen.

 In a distributed ledger, there is no single point of failure as the data is distributed and
information is shared across multiple nodes. If one node fails, the other nodes carry
the same copy of the information. In comparison, traditional ledgers have a single
point of failure. If a single system crashes, the entire network comes to a standstill.

 In a distributed ledger, data modification or change cannot be done but for a

traditional ledger, it is possible.

 In a distributed ledger, validation is done by the participants in the network while in a

traditional ledger, validation is done by a centralized authority.
 The copy of the ledger is shared amongst participants in a distributed ledger while in
a traditional ledger, a single copy is maintained in a centralized location. It is not
shared amongst the participants.

6. How can you identify a block?

Every block consists of four fields -

 The hash value of the previous block (thereby getting linked in a blockchain)

 It contains details of several transaction data

 It has a value called the nonce. The nonce is a random value which is used to vary
the value of the hash in order to generate hash value less than the target

 Hash of the block itself. It is the digital signature of the block and an alphanumeric
value used to identify a block

The hash address is the unique identification of the block. It is a hex value of 64
characters that have both letters and digits. It is obtained by using the SHA - 256
algorithms.

Refer to the video to see how a block is structured. The hash of the previous block,
transaction data, and the nonce consolidate the header of the block. They are together
passed through a hashing function and then the hash value is generated.

7. What is cryptography? What is its role in Blockchain?

Blockchain uses cryptography to secure users’ identities and ensure transactions are
done safely with a hash function.

Cryptography uses public and private keys in order to encrypt and decrypt data. In the
Blockchain network, a public key can be shared with all the Bitcoin users but a private
key (just like a password) is kept secret with the users.

Blockchain uses SHA - 256 which is secure and provides a unique hash output for
every input. The basic feature of this algorithm is whatever input you pass, it will give
you a standard alphanumeric output of 64 characters. It is a one-way function from
which you can derive an encrypted value from the input, but not vice-versa.

8. What are the different types of Blockchain?

There are three different types of Blockchain - Public, Private, and Consortium
Blockchain.

Public Blockchain ledgers are visible to all the users on the internet and any user can
verify and add a block of transactions to the Blockchain. Examples, Bitcoin,
and Ethereum.

Private Blockchain ledgers are visible to users on the internet but only specific users in
the organization can verify and add transactions. It’s a permissioned blockchain,
although the information is available publicly, the controllers of the information are within
the organization and are predetermined. Example, Blockstack.

In Consortium Blockchain, the consensus process is controlled by only specific nodes.

However, ledgers are visible to all participants in the consortium Blockchain.
Example, Ripple.

9. What happens when you try to deploy a file with multiple contracts?

In Blockchain, deploying a file with multiple contracts is not possible. The compiler only
deploys the last contract from the uploaded file and the remaining contracts are
neglected.

10. What is a Genesis Block?

 The genesis block is the first block in the Blockchain which is also known as block 0

 In Blockchain, it is the only block that doesn’t refer to its previous block.

 It defines the parameters of the Blockchain such as,

 level of difficulty,

 consensus mechanism etc. to mine blocks

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Blockchain Interview Questions - Intermediate Level

11. How is the hash (Block signature) generated?

The process of generating a block signature involves:

 Passing transaction details through a one-way hash function i.e., SHA-256.

 Running the output value through a signature algorithm (like ECDSA) with the user’s
private key.

 Following these steps, the encrypted hash, along with other information (such as the
hashing algorithm), is called the digital signature.

12. List down some of the extensively used cryptographic algorithms.

Here are a few popular algorithms:

 SHA - 256

 RSA (Rivest-Shamir-Adleman)

 Triple DES

 Ethash

 Blowfish

13. What is a smart contract and list some of its applications?

Smart contracts are self-executing contracts which contain the terms and conditions of
an agreement between the peers

Some of the applications are:

Transportations: Shipment of goods can be easily tracked using smart contracts

Protecting copyrighted content: Smart contracts can protect ownership rights such as
music or books

Insurance: Smart contracts can identify false claims and prevent forgeries

Employment contract: Smart contracts can be helpful to facilitate wage payments

14. What is the Ethereum network and how many Ethereum networks are you
familiar with?
Ethereum is a blockchain-based distributed computing platform featuring smart contract
functionality that enables users to create and deploy their decentralized applications

There are three types of networks in Ethereum:

 Live network (main network) - Smart contracts are deployed on the main network

 Test network (like Ropsten, Kovan, Rinkeby) - Allow users to run their smart
contracts with no fees before deploying it on the main network

 Private network - Are those which are not connected to the main network. They run
within the premises of the organization but carry the features of an Ethereum
network.

15. Where do nodes run a smart contract code?

Nodes run smart contracts code on Ethereum Virtual Machine (EVM). It is a virtual
machine designed to operate as a runtime environment for Ethereum-based smart
contracts.

EVM is operated in a sandboxed environment (isolated from the main network). This is
a perfect testing environment.

You can download the EVM, run your smart contract locally in an isolated manner and
once you have tested and verified it, you can deploy it on the main network.

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16. What is a Dapp and how is it different from a normal application?

Dapp:
 A Dapp is a decentralized application which is deployed using smart contract

 A Dapp has its back-end code (smart contract) which runs on a decentralized peer-
to-peer network

 Process:

 Front-end

 Smart contract (backend code)

 Blockchain (P2P contract)

Normal application:

 Normal application has a back-end code which runs on a centralized server

 It’s a computer software application that is hosted on a central server

 Process:

 Front-end

 API

 Database (runs on the server)

17. Name some leading open source platforms for developing Blockchain
applications.

 Ethereum is one of the popular platforms for building Blockchain-based applications

 Eris is used for building enterprise-based solutions

Some of the other widely used platforms for building Blockchain include Hyperledger,
Multichain, Open chain.

18. What is the very first thing you must specify in a Solidity file?

It is necessary to specify the version number of Solidity at the beginning of code as it

eliminates incompatibility errors that can arise while compiling with another version. This
is a mandatory clause that has to be there at the top of any Solidity code you write. You
also need to mention the correct version number for the code.

19. What is the difference between Bitcoin and Ethereum?

Criteria Bitcoin Ethereum

P2P currency and

Concept P2P currency
smart contract

Consensus
Proof of work Proof of work/ Proof of
mechanism
stake

Hashing Algorithm SHA-256 Ethash

Time is taken to mine 10 Minutes

12-15 seconds
a block (approx.)

Reward 12.5 BTC 3 ETH

Transaction fee Optional A fee is calculated

 in gas

1 BTC = 6934.34
Value (8/21/18) 1 ETH = 278.98 USD
USD

20. What is the nonce and how is it used in mining?

In Blockchain, mining is a process to validate transactions by solving a difficult

mathematical puzzle called proof of work. Now, proof of work is the process to
determine a number (nonce) along with a cryptographic hash algorithm to produce a
hash value lower than a predefined target. The nonce is a random value that is used to
vary the value of hash so that the final hash value meets the hash conditions.

Blockchain Interview Questions - Expert Level

21. Name the steps that are involved in the Blockchain project
implementation.

Requirement identification:

 Identify the problem and goal

 Identify the most suitable consensus mechanism

 Identify the most suitable platform

 Account for implementation and deployment costs

Planning stage

 In this stage and individual evaluates all requirements and decides a suitable
blockchain platform to be implemented.
Development and implementation of a project

 Designing the architecture

 Designing the user interface

 Building the APIs

Controlling and monitoring the project

 Applying Proof of Concept (POC)

 Identifying and fixing issues

22. Explain a real-life use-case where Blockchain is being used.

In supply chain management, smart contracts provide permanent transparency and

validation of transactions shared by multiple supply chain partners. Check out our
diagrammatic display of supply chain management using Blockchain in our video.

23. List and explain the parts of EVM memory.

The memory of an EVM is divided into three types:

Storage:

 Storage values are stored permanently on the Blockchain network

 It is extremely expensive

Memory:

 Memory is a temporary modifiable storage

 It can be accessed only during contract execution. Once the execution is finished, its
data is lost

Stack:

 A stack is temporary and non-modifiable storage.

 Here, when the execution completes, the content is lost.

24. What happens if the execution of a smart contract costs more than the
specified gas?

Initially, your transaction will be executed, but if the execution of a smart contract costs
more than the specified gas, then the miners will stop validating your contract. The
Blockchain will record the transaction as failed, also the user doesn’t get a refund.

25. What does the gas usage in a transaction depend on and how is the
transaction fee calculated?

Gas usage depends upon the amount of storage and set of instructions (codes) used in
a smart contract. The transaction fee is calculated in Ether, which is given as:

Ether = Tx Fees = Gas Limit * Gas Price

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26. What is the fork? What are some of the types of forking?

In simple terms, updating a cryptocurrency protocol or code is called forking. Fork

implies that a Blockchain splits into two branches. It can happen when the participants
of the network cannot come to an agreement with regards to the consensus algorithm
and new rules to validate transactions.

There are three types of forking:

 Hard forks

 Soft forks

 Accidental forks

27. Differentiate between Proof of Work vs Proof of Stake.

Proof of Work (PoW):

In Blockchain, PoW is the process of solving a complex mathematical puzzle called

mining. Here, the probability of mining a block is based upon the amount of
computational work done by a miner. Miners spend a lot of computing power (with
hardware) for solving the cryptographic puzzle.

Proof of Stake (PoS):

PoS is an alternative to PoW in which the Blockchain aims to achieve distributed

consensus. The probability of validating a block relies upon the number of tokens you
own. The more tokens you have, the more chances you get to validate a block. It was
created as a solution to minimize the use of expensive resources spent in mining.

28. What is a 51% attack?

In Blockchain, a 51% attack refers to a vulnerability where an individual or group of

people controls the majority of the mining power (hash rate). This allows attackers to
prevent new transactions from being confirmed. Further, they can double-spend the
coins. In a 51% attack, smaller cryptocurrencies are being attacked.

29. What are function modifiers in Solidity? Mention the most widely used
modifiers.

In Solidity, function modifiers are used to easily modify the behavior of your smart
contract functions. In simple terms, it can build additional features or apply restrictions
on the function of smart contracts. The most extensively used function modifiers in
solidity are:

 View, which are functions that cannot modify the state of a smart contract. They are
read-only functions. Refer to our video to see an example of a View function
 Pure, which are functions that neither read nor write the state of a smart contract.
They return the same result determined by its input values. Refer to our video to see
an example of a Pure function

30. Write a crowd-sale smart contract code in Solidity programming language.

Refer to our video to know how to write a Crowd function.

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What is blockchain, where is it used, and will it become mainstream?

These are just some of the questions on the lips of the public as the word—
and cryptocurrency in general—are becoming more widely used.

But if you're new to the idea of blockchain, it can seem a tricky concept to
get your head around. With this in mind, we recently sat down with Dr.
Ying-Ying Hsieh, Assistant Professor of Innovation and Entrepreneurship at
Imperial College Business School, to talk about blockchain and its
applications in cryptocurrency and beyond.

Here are her confusion-busting answers to some of the public's most

common questions.

1. What is blockchain?

Blockchain is simply a piece of software that enables the sharing of value,

such as payments, between peers online. Importantly, blockchain allows
the information to be shared without the need to go through any third-party
intermediaries such as banks or payment companies. As its name
suggests, it is made of blocks that are connected in chains and each block
stores a small part of the history of the transactions that have taken places
on the blockchain.

2. When was blockchain first created?

Blockchain is not so much an original idea as it is a combination of a

number of pre-existing technologies such as cryptography, peer-to-peer
computing and others. The successful first digital implementation of
blockchain was in 2008, with the publication of a whitepaper by an
anonymous developer, nicknamed Satoshi Nakamoto, in which the idea of
blockchain-mediated cryptocurrency, known as bitcoin, was first proposed.

Credit: Imperial College London

3. How does blockchain support bitcoin?

Bitcoin is a cryptocurrency that one can think of as digital cash. Bitcoin only
exists online and therefore, its exchange needs to be recorded digitally.
Blockchain essentially acts as a digital ledger to record all transactions
happening between the peers online and provides a secure and
decentralised record for all of the exchanges.

4. What does a decentralised blockchain mean?

It means that the information in the blockchain is not stored in a single

place but it is distributed across the network of people who are using it. For
example, standard cash, such as pounds or dollars, are issued by the
central banks that keep the records of where the money is going. However,
with bitcoin, there is no single entity that is responsible for issuing bitcoins
and keeping the records. Bitcoin works through an anonymous network of
people who provide nodes to the blockchain. Anyone can join or exit the
blockchain at any time and the cross-validation between the nodes is
required to record anything on the ledger.

5. Does the decentralised nature of the blockchain make it more

secure?

Yes, here is an example: if you have a pot of gold you can store it in the
vault and trust the people who own the vault, i.e. banks and their
personnel, to keep it safe for you. But if your gold is analogous to bitcoin,
then, rather than putting your pot of gold into a bank vault, you actually put
it in someone's house in some imaginary village and it gets moved to a new
house every 10 minutes or so. No one knows where your gold will be
moved, which makes it very difficult for any burglar to know where it will be
at any given time. Moreover, to enter the houses in which your gold is
stored, the burglar would need to solve complicated equations, which are
both time consuming and extremely energy expensive.

6. But there have been many reports of bitcoins being stolen, so it is

possible to hack the blockchain, right?

Well, most of those reports actually refer to the hacking of exchanges in

which the cryptocurrencies are being traded and not the blockchain itself. In
fact, we can still find the stolen currency on the blockchain we just do not
have the access to it or know who has stolen it.
Credit: Imperial College London
7. Can anyone start a blockchain?

Yes, in principle anyone with some computing knowledge can do it, but the
start is the easy part. The success and value of the blockchain comes from
its size and to make it attractive to the users the creator of the new
blockchain needs to be able to grow it fast by adding as many blocks as
possible to the chain. The scaling of the blockchain is referred to as
bootstrapping and it is often done through the so-called initial coin offerings
at the early stages of a cryptocurrency creation.

8. Are there different types of blockchains?

Currently there are several different types of blockchains, which were

mostly developed to improve the original bitcoin blockchain. Another very
popular blockchain is the Ethereum blockchain developed to exchange
ether tokens online. Ethereum blockchain is more energy efficient, allows
smart contracts (transfer of currency only under certain conditions) and
also uses proof-of-stake rather than proof-of-work protocols to validate
transactions.

9. Is there any disadvantage to using a blockchain?

Perhaps the biggest disadvantage from the government's perspective is

that blockchain-based technologies are very difficult to track. The
decentralised nature of the blockchain makes it difficult to regulate
transactions happening online and therefore, it is very attractive for
criminals to use it for illegal trade and money laundering purposes. In fact,
we often see bitcoins being the preferred payment method during the
ransomware attacks and in online black market for weapons and drugs.

10. Can blockchain be used outside the cryptocurrency field?

There are many potential avenues for the use of blockchain, though, so far,
it has been used more as a proof-of-concept and not yet fully implemented.
Essentially, any situation where trust is of key importance could make use
of blockchain, whether that is the financial industry or electronic voting
systems. In the shipping industry the blockchain could be used to track
where the goods versus the money is, and in the healthcare system it could
be used for the secure storage of patient data.