Unit I: Basics of Blockchain
1️⃣ What is Blockchain? Explain why it is used.
Answer:
Blockchain is a distributed ledger technology where data is stored in blocks linked chronologically (like a
chain) and secured using cryptography. Each block contains a list of transactions. Blockchain is
decentralized, meaning no single entity controls it.
Uses:
● Ensures data integrity, as blocks are immutable.
● Provides transparency, as every participant has access to the ledger.
● Enhances security using cryptographic hashing.
● Used in cryptocurrencies, supply chain management, digital identity, and more.
2️⃣ Discuss the components of Blockchain with examples.
Answer:
● Blocks: Contains data (transactions), a timestamp, and the hash of the previous block.
● Chain: A sequence of blocks linked by cryptographic hashes.
● Decentralized Network: No central authority; nodes verify transactions.
● Consensus Mechanism: Ensures agreement across nodes (e.g., PoW, PoS).
● Cryptography: Ensures data integrity and security (SHA-256 hashing).
● Smart Contracts (optional): Programs stored on the blockchain to automate processes.
3️⃣ Explain how Blockchain works with real-time examples.
Answer:
● A user requests a transaction (e.g., send cryptocurrency).
● The request is broadcast to the network (nodes).
● Nodes validate the transaction using a consensus mechanism.
● A new block is created and added to the blockchain.
● The transaction is complete and visible to all participants.
Example: Bitcoin payment between two parties.
4️⃣ Differentiate between types of Blockchain.
Answer:
● Public Blockchain: Open to all, e.g., Bitcoin, Ethereum.
● Private Blockchain: Access restricted, e.g., Hyperledger.
● Consortium Blockchain: Controlled by a group of organizations.
● Hybrid Blockchain: Combines public and private features.
5️⃣ What is cryptography? Explain encryption and decryption with examples.
Answer:
Cryptography secures data by converting it into unreadable formats (encryption) and restoring it to
readable form (decryption).
● Encryption: Plaintext → Ciphertext (e.g., AES, RSA).
● Decryption: Ciphertext → Plaintext.
Example:
If a message “HELLO” is encrypted with a key into “IFMMP”, only someone with the key can decrypt it
back to “HELLO”.
6️⃣ Explain Ciphers with examples.
Answer:
A cipher is an algorithm used for encryption and decryption.
● Substitution Cipher: Each letter is replaced (e.g., Caesar Cipher).
● Transposition Cipher: Rearranges characters (e.g., Rail Fence Cipher).
Unit II: Advanced Concepts
7️⃣ Explain Consensus Methods in Blockchain.
Answer:
Consensus mechanisms help all nodes agree on the blockchain’s current state.
● Proof of Work (PoW): Miners solve complex puzzles to add blocks (Bitcoin). High energy usage.
● Proof of Stake (PoS): Validators are chosen based on their stake. Energy efficient (Ethereum
2.0).
8️⃣ Describe Blockchain Applications in Government.
Answer:
● Digital Identity: Secures citizen identity verification.
● Land Records: Transparent land ownership records reduce fraud.
● Public Distribution Systems (PDS): Tracks distribution of goods.
● Social Welfare Systems: Transparent and efficient fund allocation.
9️⃣ Explain Privacy and Security in Blockchain.
Answer:
● Privacy: User identity can be pseudonymous; transactions are visible but identities are hidden.
● Security: Immutable data, cryptographic hashing, consensus mechanisms, and decentralized
control prevent unauthorized changes.
🔟 Compare Proof of Work and Proof of Stake.
1️⃣1️⃣ How are land records maintained using Blockchain?
Answer:
Land ownership data is recorded on a blockchain. Each transaction (sale, purchase, transfer) is
time-stamped and immutable, reducing the chance of fraud. Smart contracts automate verification,
ensuring transparency and trust.
1️⃣2️⃣ What are public distribution systems and how can Blockchain help?
Answer:
Public Distribution Systems (PDS) distribute essential commodities (e.g., grains). Blockchain ensures
transparency, prevents corruption, and verifies delivery to intended beneficiaries.
