BCS613A - Blockchain Technology (Module 1 Notes)
Module 1 - Simplified Notes
Module 1 Basics of Blockchain
Q1. a) Define Blockchain. Explain the network view with diagram.
Blockchain is a digital ledger that is:
- Decentralized: No single owner.
- Distributed: Shared across many computers (nodes).
- Immutable: Cannot be changed easily.
Network View:
- All participants (nodes) keep a copy of the blockchain.
- When a transaction happens, all validate it.
- If valid, it's added to a new block and linked to the previous block.
Q1. b) Generic Elements of Blockchain:
- Block: A page in the ledger with multiple transactions.
- Transaction: A record of activity (like money transfer).
- Hash: Unique code for the block (digital fingerprint).
- Previous Hash: Connects the current block to the previous one.
- Timestamp: Time when block was created.
- Nonce: A number used in mining.
- Consensus Mechanism: Rules to validate transactions.
- Decentralized Network: No central authority, all nodes are equal.
BCS613A - Blockchain Technology (Module 1 Notes)
Q2. a) What is Consensus? Requirements and Types:
Consensus = Agreement by all nodes about transactions.
Requirements:
- Agreement: All must agree on same data.
- Integrity: Only valid transactions allowed.
- Liveness: Should keep adding new transactions.
- Fault Tolerance: Should work even if some nodes fail or cheat.
Types:
- Proof of Work (PoW): Solve puzzles. Winner adds block.
- Proof of Stake (PoS): Higher stake = higher chance.
- Delegated PoS: Voting system.
- Proof of Authority (PoA): Pre-approved validators.
- Byzantine Fault Tolerance (BFT): Works even if some lie.
- Proof of Elapsed Time (PoET): Random wait time decides winner.
Q2. c) Benefits and Limitations of Blockchain:
Benefits:
1. Security: Hard to hack or tamper.
2. Transparency: All can view the ledger.
3. Efficiency: No middlemen.
4. Trust: Trust in system, not in person.
BCS613A - Blockchain Technology (Module 1 Notes)
Limitations:
1. Scalability: Can be slow.
2. Energy Usage: PoW consumes a lot.
3. Immutability: Mistakes are hard to fix.
