BLOCKCHAIN TECHNOLOGY

UNIT 3
1)Give the different types of blockchain. State their advantages and disadvantages

1.Public Blockchain-These blockchains are completely open to following the idea of

decentralization. They don’t have any restrictions, anyone having a computer and internet
can participate in the network. As the name is public this blockchain is open to the public,
which means it is not owned by anyone. Anyone having internet and a computer with good
hardware can participate in this public blockchain.

Advantages:

• Trustable: There are algorithms to detect no fraud. Participants need not worry
about the other nodes in the network
• Secure: This blockchain is large in size as it is open to the public. In a large size,
there is greater distribution of records
• Anonymous Nature: It is a secure platform to make your transaction properly at
the same time, you are not required to reveal your name and identity in order to
participate.
• Decentralized: There is no single platform that maintains the network, instead
every user has a copy of the ledger.
Disadvantages:
• Processing: The rate of the transaction process is very slow, due to its large
size. Verification of each node is a very time-consuming process.
• Energy Consumption: Proof of work is high energy-consuming. It requires good
computer hardware to participate in the network
• Acceptance: No central authority is there so governments are facing the issue
to implement the technology faster.

2. Private Blockchain-These blockchains are not as decentralized as the public blockchain

only selected nodes can participate in the process, making it more secure than the others.
They are open to some authorized users only. In this few people are allowed to participate
in a network within a company/organization.

Advantages:
• Speed: The rate of the transaction is high, due to its small size. Verification of
each node is less time-consuming.
• Scalability: We can modify the scalability. The size of the network can be
decided manually.
• Privacy: It has increased the level of privacy for confidentiality reasons as the
businesses required.
• Balanced: It is more balanced as only some user has the access to the
transaction which improves the performance of the network.
Disadvantages:
 • Security- The number of nodes in this type is limited so chances of manipulation
are there. These blockchains are more vulnerable.
• Centralized- Trust building is one of the main disadvantages due to its central
nature. Organizations can use this for malpractices.
• Count- Since there are few nodes if nodes go offline the entire system of
blockchain can be endangered.

3. Hybrid Blockchain-It is the mixed content of the private and public blockchain, where
some part is controlled by some organization and other makes are made visible as a public
blockchain.
• Permission-based and permissionless systems are used.
• User access information via smart contracts
• Even a primary entity owns a hybrid blockchain it cannot alter the transaction
Advantages:
• Ecosystem: Most advantageous thing about this blockchain is its hybrid nature.
It cannot be hacked as 51% of users don’t have access to the network
• Cost: Transactions are cheap as only a few nodes verify the transaction. All the
nodes don’t carry the verification hence less computational cost.
• Architecture: It is highly customizable and still maintains integrity, security, and
transparency.
• Operations: It can choose the participants in the blockchain and decide which
transaction can be made public.
Disadvantages:
• Efficiency: Not everyone is in the position to implement a hybrid Blockchain.
The organization also faces some difficulty in terms of efficiency in maintenance.
• Transparency: There is a possibility that someone can hide information from
the user. If someone wants to get access through a hybrid blockchain it depends
on the organization whether they will give or not.
• Ecosystem: Due to its closed ecosystem this blockchain lacks the incentives for
network participation.

4. Consortium Blockchain-It is a creative approach that solves the needs of the organization.
This blockchain validates the transaction and also initiates or receives transactions.

• This is an innovative method to solve the organization’s needs.

• Some part is public and some part is private.
• In this type, more than one organization manages the blockchain.
Advantages:
• Speed: A limited number of users make verification fast. The high speed makes
this more usable for organizations.
• Authority: Multiple organizations can take part and make it decentralized at
every level. Decentralized authority, makes it more secure.
• Privacy: The information of the checked blocks is unknown to the public view.
but any member belonging to the blockchain can access it.
• Flexible: There is much divergence in the flexibility of the blockchain. Since it is
not a very large decision can be taken faster.
Disadvantages:
 • Approval: All the members approve the protocol making it less flexible. Since
one or more organizations are involved there can be differences in the vision of
interest.
• Transparency: It can be hacked if the organization becomes corrupt.
Organizations may hide information from the users.
• Vulnerability: If few nodes are getting compromised there is a greater chance
of vulnerability in this blockchain
2)What is Bitcoin Mining. Explain Functionality of minors
The mining is the most important as well as the interesting topic in bitcoin. This is the process
by which new transactions are validated and added to the so called ‘blockchain’. This
demands dedicated mining hardware and thus, not all nodes are involved in mining. Those
nodes who are participating in mining process is known as miners.
When a new bitcoin transaction happens in the network that is broadcasted on the network.
The miners listen to this broadcasting and engage in transaction verification. Once the
transactions are verified they are added to a block.
Functionality of minors- Bitcoin miners are the spine of bitcoin network. With the use of
special software, the bitcoin miners solve a mathematically puzzled encrypted data (nonce).
Once the nonce is found and transactions are verified, it is then stored in a public ledger.
The Bitcoin miners are responsible for the secure network and secure process of every bitcoin
transaction and as per their work, they are awarded the respective amount of incentive.
▪ First, when each time the transactions are taking place, the record of it is added
to the tally list of Blockchain by the miners.
▪ After that, the miners check about the legal information of the coin like whether
the person who has transacted it have the valid right to do this or whether the
respected encrypted code of it is valid or not.
▪ A proper security check is done. After the approval of permission of taking it
further.
▪ Then miners create a lottery which prevents anyone to easily create or add a new
block in the main chain.
3)Explain Ethereum and D-App.
Ethereum- Ethereum is an Open Source Blockchain platform which allows anyone to develop
and deploy Blockchain based Applications. Any kind of application including cryptocurrency,
tokens, wallets, social apps etc. can be developed and deployed in a Distributed Environment
of Ethereum. In other words, rather than sticking with the cryptocurrency alone, Ethereum
opened the possibilities of the ‘blockchain’ and ‘distributed ledger’ technology to other
application domains. Ethereum is not a single network rather it is more like a protocol for
internode communication. Actually, in Ethereum many networks exist alongside. The
community Ethereum Network, Community test network and other private Blockchain
networks like • Private network• Public test network • Main Ethereum network
D-APP- Decentralized applications or dApps are distributed, decentralized open-source
software applications that run on a decentralized peer-to-peer network. Imagine the
Twitter application that you have on your phone. You can post anything you want on Twitter
but ultimately it’s controlled by a single company that can delete your tweets if they violate
community guidelines or some other reason. But if there was a Twitter-type dApp, then it
would be decentralized and not owned by any one person. If you posted something there,
nobody would be able to delete it including its creators.
Multiple people can create content and consume content on these applications that is free
of any control and interference from one person.
The dApp has the following features:
• Decentralized: A dApp operates on Ethereum which is an open public
decentralized platform.
• Deterministic: dApps perform the same function irrespective of the
environment in which they are executed.
• Turing complete: dApps can perform any action given the required resources.
• Isolated: dApps are executed in an Ethereum Virtual Machine which is a virtual
environment that ensures that even if there is a bug in the smart contract, it
won’t hamper the normal functioning of the blockchain network

4)What is Hyperledger and Hyperledger fabric.

Hyperledger Fabric, an open source project from the Linux Foundation, is the modular
blockchain framework and de facto standard for enterprise blockchain platforms. Intended
as a foundation for developing enterprise-grade applications and industry solutions, the open,
modular architecture uses plug-and-play components to accommodate a wide range of use
cases.
Hyperledger Fabric is an open, proven, enterprise-grade, distributed ledger platform. It has
advanced privacy controls so only the data you want shared gets shared among the
“permissioned” (known) network participants.
Smart contracts document the business processes you want to automate with self-executing
terms between the parties written into lines of code. The code and the agreements contained
therein exist across the distributed, decentralized blockchain network. Transactions are
trackable and irreversible, creating trust between organizations. This enables businesses to
make more informed decisions quicker — saving time, reducing costs, and reducing risks.
Explain the layers of Hyperledger Technology -Hyperledger uses the following key business
components:
1. Consensus layer: It takes care of creating an agreement on the order and
confirming the correctness of the set of transactions that constitute a block.
2. Smart layer: This layer is responsible for processing transaction requests and
authorizing valid transactions.
3. Communication layer: It takes care of peer-to-peer message transport.
4. Identity management services: these are important for establishing trust on the
blockchain
5. API: It enables external applications and clients to interface with the blockchain.
5)What is consensus and its types?
Consensus- Blockchains are peer-to-peer networks with no central administrator or authority.
It is crucial to ensure that the network participants reach consensus on the state of the ledger
i.e., the uniqueness and order of records. This is done through consensus algorithms that
apply different methods to ensure that the right order and uniqueness of transactions has
been determined and validated by enough users to be added to the ledger.
1) Proof of work
2) Proof of stake
3) Delegated Proof-of-Stake (DPoS)
4) Leased Proof-of-Stake
5) Byzantine Fault Tolerance
6) Delegated Byzantine Fault Tolerance (dBFT)
7) Proof-of-Authority (PoA)
8) PoI (Proof-of-Importance).
6) Explain Proof of work consensus algorithm-
The first and original Blockchain algorithm presented to the blockchain network is proof of
work. The algorithm adds a new block to the chain and confirms the transaction. In this
method, minors (a group of individuals) compete with one another to complete the network
transaction. Mining is the is the process of competing with one another.
He is Rewarded as soon as miners have successfully produced a valid block. Bitcoin is the most
well-known application of Proof of Work (PoW). This blockchain consensus mechanism is used
by several blockchain technologies to validate all of their transactions and add appropriate
blocks to the network chain.
All of the information pertaining to the blocks is gathered via the decentralized ledger system.
However, each transaction block needs to be treated with careful attention.
Producing proof of work can be a random process with low probability. In this, a lot of trial
and error is required before A valid proof of work is generated. The main idea behind this
technology is to readily provide solutions to challenging mathematical problems.
To begin with, these mathematical problems demand a lot of computational power. For
instance, understanding the Hash Function or how to determine the output without knowing
the input. Another is integer factorization, which also applies to crossword puzzles.
This occurs when the server suspects a DDoS attack, and t The miners are helpful in this
situation. The hash is the consensus mechanisms need a lot of computation to solution to the
entire mathematical equation problem.
Proof of work, however, has some limitations. The network appears to be expanding rapidly,
requiring a lot of processing power. The system's overall sensitivity is rising as a result the
confirm this process.
7) Explain Proof of Stake Consensus algorithm-
A Proof of Stake (PoS) consensus algorithm is a set of rules governing a blockchain network
and the creation of its native coin, that is, it has the same objective as a Proof of Work (PoW)
algorithm in the sense that it is an instrument to achieve consensus. Unlike PoW, there are
no miners involved in the process.
Instead, participants in the network who want to be involved in proving the validity of
network transactions and creating blocks in a PoS network have to hold a certain stake in the
network, for instance by placing a certain amount of the network’s currency in a wallet
connected to its blockchain.

This is known as “placing a stake” or “staking”. A block creator in a PoS system is limited to
creating blocks proportionate to his or her stake in the network.

Thus, PoS networks are based on deterministic algorithms, meaning that validators of blocks
are elected depending on the nature of the stake. For instance, selecting account balance as
the sole criterion on which the next valid block in a blockchain is defined could potentially
lead to unwanted centralisation. This would mean that wealthy members in a network would
enjoy great advantages.
PoS networks are based on deterministic algorithms, meaning that validators of blocks are
elected depending on the nature of the stake.
For this reason, there are various selection methods to define a stake, or a combination
thereof. Different cryptocurrencies that utilise PoS employ different variants to define
“stakes”.
8) What is BFT? Explain p-BFT? State Advantages and Disadvantages.
What is Byzantine Fault Tolerance?
Byzantine Fault Tolerance (BFT) is the feature of a distributed network to reach consensus
(agreement on the same value) even when some of the nodes in the network fail to
respond or respond with incorrect information. The objective of a BFT mechanism is to
safeguard against the system failures by employing collective decision making (both –
correct and faulty nodes) which aims to reduce to influence of the faulty nodes. BFT is
derived from Byzantine Generals’ Problem.
PBFT-pBFT tries to provide a practical Byzantine state machine replication that can work
even when malicious nodes are operating in the system.
Nodes in a pBFT enabled distributed system are sequentially ordered with one node being
the primary (or the leader node) and others referred to as secondary (or the backup
nodes). Note here that any eligible node in the system can become the primary by
transitioning from secondary to primary (typically, in the case of a primary node failure).
The goal is that all honest nodes help in reaching a consensus regarding the state of the
system using the majority rule.
A practical Byzantine Fault Tolerant system can function on the condition that the
maximum number of malicious nodes must not be greater than or equal to one-third of all
the nodes in the system. As the number of nodes increase, the system becomes more
secure.
pBFT consensus rounds are broken into 4 phases (refer with the image below):
• The client sends a request to the primary(leader) node.
• The primary(leader) node broadcasts the request to the all the
secondary(backup) nodes.
• The nodes (primary and secondaries) perform the service requested and then
send back a reply to the client.
• The request is served successfully when the client receives ‘m+1’ replies from
different nodes in the network with the same result, where m is the maximum
number of faulty nodes allowed.
The primary(leader) node is changed during every view (pBFT consensus rounds) and can
be substituted by a view change protocol if a predefined quantity of time has passed
without the leading node broadcasting a request to the backups(secondary). If needed, a
majority of the honest nodes can vote on the legitimacy of the current leading node and
replace it with the next leading node in line.

9)What Are CorDapps? Explain features of R3-CORDA

CorDapps are:

• Distributed applications that can be distributed on the Corda Network.

• A set of .jar files containing Java or Kotlin class definitions.
• Made up of components that work together to let nodes communicate and agree on
updates to the shared ledger.
A Corda Distributed Application (CorDapp) solves a specific problem using the Corda
framework. CorDapps are stored on Corda nodes and executed on the Corda network.
This distributes the app, allowing it to run on multiple systems simultaneously—unlike
traditional apps, which utilize one dedicated system to achieve an assigned task. CorDapps
let nodes communicate with each other to reach agreement on updates to the ledger by
defining flows that Corda node owners can invoke over RPC
features of R3-CORDA-
Privacy-Any system using distributed ledger technology must prioritise privacy. It's because
your data will inevitably be spread over several nodes and servers that belong to various
commercial firms. The only persons with access to a transaction's information in R3's Corda
are those participating in the transaction and those who need to confirm the transaction's
origin. It indicates that two or more people can conduct business together while only
disclosing information that is essential.
Consensus-Through the use of consensus, organisations on a distributed and decentralised
network can come to some agreement about the transactions taking place between them. It
is critical to know this idea in order to spot fraud and uphold the integrity of any blockchain
network, whether it is public or private.
Through a process of consensus and the use of a variety of algorithms, such as Byzantine Fault
Tolerant algorithms transactions in Corda are confirmed. Like any other blockchain, the
special characteristics of the Corda network allow for the implementation of several distinct
consensus pools employing various algorithms, providing its users with a pluggable consensus
model based on their needs
Contracts-Any company being managed across several companies over a blockchain-based
distributed system requires smart contracts and programme files encoding the business logic
and rules validation. To process transactions in R3's Corda, all participants must
deterministically execute the same code in order to validate the proposed ledger revisions
No Block, But Chain-The UTXO input/output model, which is the foundation of Corda's
functionality, is remarkably similar to the transaction structure used in conventional
blockchains like Bitcoin. However, unlike other commercial blockchain frameworks, such as
Hyperledger Fabric, which groups together a number of transactions between "n" participants
across the channel into a block based on various criteria, the storage and verification do not
result in a chain of blocks.
10)IOTA Protocol (known as Tangle) is DLT explain , Enlist some use cases of IOTA.
The IOTA Tangle is an innovative type of distributed ledger technology (DLT) that is
specifically designed for the Internet of Things (IoT) environment. The IOTA technology is
based on a new type of DLT, not the traditional blockchain model. It was created by the IOTA
Foundation, a non-profit foundation incorporated and registered in Germany. The IOTA
Foundation’s mission is to support the development and standardization of new DLTs,
including the Tangle.
The design limitations of existing blockchain systems for some applications led to the
development of virtual currency alternatives that could be used to serve different purposes.
IOTA Tangle was developed to enable micro-transactions without fees for the growing
ecosystem of IoT devices. IoT devices are network-enabled devices, including products such
as smart appliances, home security systems, computer peripherals, wearable technology,
routers, and smart speaker devices that have Wi-Fi connections, Bluetooth connections,
or near-field communication (NFC).

Tangle was created with the promise of high scalability, no fees, and near-instant transfers.

• The IOTA Tangle is an innovative type of distributed ledger technology (DLT) that is
specifically designed for the Internet of Things (IoT) environment.
• IOTA is based on a new type of DLT, rather than the traditional blockchain model.
• Tangle was created with the promise of high scalability, no fees, and near-instant
transfers
USE CASES OF IOTA –
1 SMART ENERGY
Energy is a major use case for IOTA and the Tangle. Since it focuses on machine-to-machine
interaction, IOTA can decentralize the power grid for clean and efficient energy throughput.
For instance, Smart charging can be used to enable independent charging and discharging of
vehicles as the car and station connect with special IOTA software and hardware. The first
working prototype for smart charging has been developed in the Netherlands, and it was built
using IOTA.
2 MANUFACTURING AND SUPPLY CHAINS
Global trade and supply chains are all involved in moving products from suppliers to
transporters, to distribution, to retail and then it is picked up from the store by daily
consumers. At every point of the supply chain, the IOTA can help in providing better
authentication, documentation, and flow of products from the raw materials to the point of
sale.
3 MOBILITY
Soon sharing data will be big business in the transportation industry. Any vehicle will become
a digital platform for transacting and transmitting data with other devices, vehicles, and
stations.
11)Explain DeFi and NFT
Decentralized Finance (DeFi)-
Developed on top of blockchain networks, DeFi is a network of financial apps. Because it is
open and programmable, runs without a centralised authority, and lets developers to create
new models for payments, investing, lending, and trading, it differs from conventional
financial networks.
Customers may quickly create safe decentralised financial apps by utilising distributed
networks and smart contracts. DeFi companies, for instance, currently provide goods that
make it possible to trade on decentralised exchanges, earn interest on bitcoin holdings, and
conduct peer-to-peer lending and borrowing. Compound, Aave, UniSwap, and MakerDAO
are a few of the well-known DeFi systems.

Non-Fungible Tokens (NFTs)-

NFTs are one-of-a-kind, indivisible digital tokens that may be used to demonstrate the origin
of valuable assets, whether they be digital or physical. NFTs, for instance, can be used by an
artist to tokenize their creations and guarantee that they are original and theirs..
The blockchain network stores and updates the ownership Information. Because they
enable interoperability between gaming platforms, NFTs are likewise becoming more and
more popular in the gaming sector. For instance, Crypto Kitties, the first NFT project on
Ethereum, allowed users to acquire digital cat collectibles backed by NFTs.
 UNIT 4
1) What is Cryptocurrency? Explain In Brief.
Cryptocurrency is a digital payment system that does not rely on banks to verify
transactions. Cryptocurrency payments exist purely as digital entries to an online database.
When cryptocurrency funds are transferred, the transactions are recorded in a public
ledger.
• In cryptocurrency, “coins” (which are publicly agreed on records of ownership)
are generated or produced by “miners”.
• These miners are people who run programs on ASIC (Application Specific
Integrated Circuit) devices made specifically to solve proof-of-work puzzles.
• The work behind mining coins gives them value, while the scarcity of coins and
demand for them causes their value to fluctuate.
• Cryptocurrencies can be used for buying goods just like fiat currency.
• Cryptocurrencies use encryption to verify and protect transactions.
• It does not exist in physical form and is not typically issued by any central
authority.
• They use decentralized control in contrast to central bank digital currency.

Advantages of cryptocurrency
1. Protection from inflation
2. Self-governed and managed
3. Secure and private
4. Currency exchanges can be done easily
5. Decentralized
6. Cost-effective mode of transaction
7. A fast way to transfer funds
Disadvantages of cryptocurrency
1. Can be used for illegal transactions
2. Data losses can cause financial losses
3. Decentralized but still operated by some organization
4. Some coins not available in other fiat currencies
5. Adverse Effects of mining on the environment
6. Susceptible to hacks
7. No refund or cancellation policy

2)What is bitcoin? Describe it’s working.

Bitcoin is the most widely accepted cryptocurrency. Founded in 2009 by Satoshi Nakamoto,
it is still the most commonly traded. It is a decentralized digital currency that can be
transferred on a peer-to-peer bitcoin network.
• It is a virtual currency designed to act as money and outside the control of any
person or group thus eliminating the need for third-party in financial
transactions.
• It is used as a reward for the miners in bitcoin mining
• It can be purchased on several exchanges.
 1. Buying: Many marketplaces like Bitcoin exchanges allow users to buy or sell bitcoins
using different currencies. If one does not want to mine a bitcoin, it can be bought using a
cryptocurrency exchange. Most people will not be able to purchase the entire BTC due to
its price, so it is possible to buy portions of BTC on these exchanges in fiat currency like U.S.
Dollars. The following steps can be followed to buy bitcoin outside the online exchanges:
• Each person who joins the bitcoin network is issued a public key and a private
key.
• When a person buys a bitcoin or sends/receives it, the person will receive a
public key.
• The person can only access the bitcoin using the private key (it has) with the
public key (it received).
2. Mining: People on the bitcoin network compete among themselves to mine bitcoins using
computers to solve complex maths puzzles. This is how bitcoins are created.
3. Transfer: Bitcoin transactions are digitally signed for security. Everyone on the network
gets to know about a transaction. Anyone can create a bitcoin wallet by downloading the
bitcoin program. Each bitcoin wallet has two things:
• Public key: It is like an address or an account number via which any user or
account can receive bitcoins.
• Private key: It is like a digital signature via which anyone can send bitcoins.
The public key can be shared with anyone but the private key must be held by the owner. If
the private key gets hacked or stolen then bitcoin gets lost.
A bitcoin transaction contains three pieces of information:
• Private key: The first part contains the bitcoin wallet address of the sender i.e.
the private key.
• Amount of bitcoin to be transferred: The second part contains the amount that
has been sent.
• Public key: The third part contains the bitcoin wallet address of the recipient
i.e., the public key.
Bitcoin transactions are verified by the nodes on the network. Once the transaction is
verified and executed successfully, the transaction is recorded in a distributed public ledger
called a blockchain. A bitcoin can also be considered as an invisible currency with only the
transaction records between different addresses.
3)How Does Bitcoin Mining Work?
In the Bitcoin network, there are nodes that use the computing power of their CPU to
process the transactions. The following are the steps followed while mining a bitcoin:
• The user initiates the bitcoin transaction by listing the details like the number of
bitcoins to be sent, and the public address, and affixing the private key to
generate a digital signature. The encrypted information to the miners present on
the network.
• The miners will verify the transaction to check whether there is sufficient balance
to carry out the transaction.
• The faster the CPU of a miner, the greater the chances for the miner to get
rewarded for verifying the transaction. The miner’s job is only to provide the
CPU, there is no manual intervention from the miner. The bitcoin program will
run automatically on the system.
 • Once the transaction is verified, the number of transactions is broadcasted to
the network of miners who can copy or download the block.
• These blocks through timestamps are stored in sequential order to form a
blockchain.
• Each miner in the network must have an updated copy of the blockchain ledger
in order to earn bitcoins.

4)What are the types of cryptocurrencies-

1)Coins: As coins are based on their blockchain, they may be distinguished from altcoins.
Bitcoin on the Bitcoin blockchain and Ether, on the Ethereum blockchain are two good
examples. Building or creating a cryptocurrency begins with or follows the creation of a
blockchain.

2) Altcoins: They are viewed as alternatives to Bitcoin, the original cryptocurrency, even if
they may all be considered coins. Also known as stictions, apart from Ethereum, most of the
first ones were forked from Bitcoin. These include Name coin, Peercoin, Litecoin, Dogecoin,
and Aurora coin.

3) Tokens: In a blockchain, tokens mentioned before, a digital wallet stores them and
accessed with a key, which can be reassigned to someone else. Tw types of tokens exist.
First, is a native token. This type of token has an intrinsic utility. It forms the core part of a
blockchain. That is to say, a blockchain could without a native token. Often times, they're
used as incentive to validate transactions, or create blocks. Be careful not run that tokens
and gg coins have different properties. The majority of people frequently use them
interchangeably, yet this is incorrect.

4) Bitcoin: The king of the castle. Created in 2008, it the original code for blockchain
technology. Its creations spurred many other cryptocurrencies. It's easily the housed most
trusted and known virtual currency on the market, even if it has its flaws.

5)Ethereum: Probably the second most well-known cryptocurrency. It allows users to do

more than just use it as a virtual currency. It's an open-source blockchain. Money and assets
are quickly transferred with the use of smart contracts, Assets include houses, cars, stocks,
and other property owned with real-world value.

6)Litecoin: One of the first cryptocurrencies to emerge after Bitcoin's initial release. It has a
much shorter processing time-about 2.5 minutes-than Bitcoin's crazy 10-minute timeframe.
Litecoin provides more tokens and a different mining algorithm, but it ultimately didn't take
off the same way its big brother did.

7)Ripple: Because every single token was mined before its release, it is quite possibly the
most despised cryptocurrency by the community. This action is known as pre-mining and is
a huge no-no. Essentially, this takes away the community aspect of virtual currencies. It
attempts to take a decentralized platform and centralize it.

8)Monero: Solved many of Bitcoin's privacy issues. It adds an additional level on anonymity
to transactions. A few darknet markets (networks that require specific software or
authorization to access them) started accepting the cryptocurrency in 2016, where it
ultimately reached its peak.

5)Explain Crypto wallets-

• People dealing with cryptocurrency use a wallet as a safe depository and an
instrument for incoming and outgoing payments. Let's analyse the available types of
wallets and
• choose the most suitable one based on your computer's resources and tasks.
• There are hot and cold wallets. There are also warm wallets, but they are used much
less often.
• Cold wallets are used to store money, while hot wallets are used to send and receive
the currency quickly.
• As a rule, a wallet has a private key and a public key. The Private key belongs only to
you, and you should never show it to anyone.
• You must keep it in mind as you sign all transactions with this key. At the same time,
someone can use public keys to transfer money to your account.

6)Short note on Metamask-

• MetaMask is a web browser add-on which enables anyone to run the Ethereum
DApps without running the Ethereum full node. An Ethereum full node installation
• will take a lot of memory as well as time; so Metamask is a tool that eliminates the
overburden of this hectic installation task. Initially, Metamask was available only for
Google Chrome, but now it is available for Firefox and other popular web browsers.
• MetaMask add-on for chrome can be added from chrome web store or from
'metamask.io' website. This MetaMask add-on provides a user interface for
interacting with the blockchain.
• The user can connect to the Ethereum main network or 'test net' or he may create
his own private network and run DApps on the blockchain.
• In normal case, a web3.js (the JavaScript API for Ethereum DApps) must be installed
in the local system to interact with the Ethereum DApps. Web3.js is a collection of
libraries used to interact with local or remote Ethereum node using Http or IPC
connection. But MetaMask will inject the web3.js to each page for accessing the
Ethereum blockchain by itself. This approach eliminates the effort of web3.js
installation in the local system.
• After adding the Metamask, the user can interact with Ethereum blockchain as
normal. The user can create an account, access Ethereum DApps, or deploy once
own DApp MetaMask retrieves data from the blockchain and allows the users to
manage the data securely.
• The Metamask provides a vault account for each user, this vault secures, stores and
tightly controls access to tokens, password, certificates, API keys and otherelements
in blockchain apps. The vault account act as a second level encryption for the user
account.
7)Explain Coinbase-
Coinbase is a trading platform that allows users to buy, sell and store more than 30 different
digital currencies.
Coinbase is more geared towards beginners while Coinbase Pro, the premium service, is for
avid and experienced traders who make high volume transactions and want more trading
options.
The platform is straightforward. Like many trading apps, users can see their balance and a
watch list, which allows them to track the prices of different kinds of cryptocurrencies.
Traders can also check which cryptocurrencies are the biggest movers. Coinbase Cardis also
introduced, that users can use to earn rewards for spending the assets in their portfolio.
Coinbase charges a fee for trading via the platform. Coinbase
doesn't charge users to hold their assets in a digital wallet or to transfer cryptocurrency
from one wallet to another within the Coinbase network, like from Coinbase-to-Coinbase
Pro.
Once you have your digital wallet set up, users can trade. Users can trade. Coinbase does
not offer trading for all cryptocurrencies, but the exchange does regularly add new coins.

8)Digital Tokens-
Digital tokens, simply known as "Tokens," are another market- shaking blockchain-based
technology that is trending. Tokens are a digital asset that are developed on top of
cryptocurrencies of a blockchain network. They are a minor variation of cryptocurrencies.

The token may be used for a variety of things, including granting rights, paying for services,
transferring data, offering incentives, getting access to further services, and many more. To
put it another way, a token can be utilized anyway the developer or creating company sees
fit.

The tokens are a digital asset that is less liquid than a cryptocurrency and will never be
utilised as one. Therefore, the value of every token that is produced will likewise be
specified.

The tokens may be refundable under specific circumstances, allowing us to trade them for
cryptocurrencies. Wallets are used to maintain tokens, just like they are with
cryptocurrencies.

Most tokens are now produced on the Ethereum network. It is easy to create tokens using
the Ethereum network. The establishment of a smart contract is all that is required to create
a token in Ethereum.

All that is required to create the tokens is the addition of the essential codes to the
structure. When the token is finished, the Ethereum network can use it.

9) What id NFT? Diff Between Fungible and Non Fungible Tokens (NFT)
10)Diff Between 1) Fiat currency and crypto currency 2) IPO and ICO
 UNIT 5
1)What is Ethereum-
Ethereum is a blockchain-based computing platform that gives programmers the ability to
create and deploy decentralised apps, which are those that are not controlled by a single
entity. You can design a decentralised application where the decision-making suthority
resides with the system's users.

Features of Ethereum
1) Ether: This is Ethereum's cryptocurrency.
2) Smart contracts: Ethereum supports the creation and implementation of such a contract.
3) Ethereum Virtual Machine: Ethereum offers the underlying technology the software and
architecture that recognises smart contracts and enables you to communicate with them.
4) Decentralized applications (Dapps): A Dapp is a short form of Decentralized apps, which
are consolidated DAPP, App, or DApp) is a short form for a applications, are possible using
Ethereum.
5) Decentralized Autonomous Organizations: You may build these for democratic decision-
making using Ethereum.
Types of Ethereum Network -
1)Mainnet-Mainnet is the current live network of Ethereum. The current version of main
net is Byzantium (Metropolis) and its chain ID is Chain ID is used to identify the network.
2)Testnet-The commonly used test network for the Ethereum blockchain is known as
Testnet. Before being implemented on the live production blockchain, smart contracts and
DApps are tested on this test blockchain. Additionally, since it's a test network, study and
experimentation are allowed.
The primary testnet, known as Ropsten, has all the characteristics of various smaller and
specialized testnets that were made for certain versions. Kovan and Rinkeby, for example,
were created as additional testnets to evaluate Byzantium versions.
3)Private net- As the name suggests, this is the private network that can be created by
generating a new genesis block.
This is usually the case in private blockchain distributed ledger networks, where a private
group of entities start their blockchain and use it as a permissioned blockchain.
Differentiate Bitcoin And Ethereum
2)Explain Decentralized Autonomous Organization (DAOs)-
A DAO is a digital organisation that functions in a decentralised, democratic manner without
the use of hierarchical administration.
In summary, a DAO is an organisation where decision-making is preferably delegated to
certain specified authorities or a group of designated individuals as a part of an authority
rather than being centralised.
DAOS rely on smart contracts for decision-making or, in other words, decentralised voting
systems within the organisation since it lives on a blockchain network and is regulated by
the protocols included in a smart contract.
The voting mechanism, which is controlled by a decentralised application, must thus be
used before any organisational decision can be taken. This is how it works. People
contribute money through the DAO because it needs it to function and make decisions.
Based on it, a token that represents each member's share in the DAO is issued to them.
With those tokens, users may cast votes in the DAO, and the proposal's status is determined
by which users cast the most votes.
This voting procedure must be used for every decision made inside the organisation.
3)What are the Components of Ethereum network?
1)Nodes –
1. Mining Node –
These nodes are responsible for writing all the transactions that have occurred
in the Ethereum network in the block.
2. Ethereum Virtual Machine Node –
These are the nodes in the Ethereum network in which Smart Contracts (it is a
type of contract between supporter and developer in which there are a set of
rules based on which both the parties agree to interact with each other. The
agreement will be automatically executed when the pre-defined rules are met.)
are implemented. By default, this node utilizes a 30303 port number for the
purpose of communication among themselves.
2)Ether –
• Ether is a type of cryptocurrency used in the Ethereum network just like a
bitcoin is used in a blockchain network. It is a peer-to-peer currency, similar to
Bitcoin. It tracks and promotes each transaction in the network.
• It is the second-largest cryptocurrency in the world. The first one is Bitcoin.
Other cryptocurrencies can be used to get ether tokens, but vice versa is not
true.
3)Gas –
• Gas is an internal currency of the Ethereum network. We need gas to run
applications on the Ethereum network, much as we need gas to run a vehicle.
• To complete every transaction on the Ethereum network, a consumer must first
make a payment-send out ethers-and the intermediate monetary value is
known as gas.
• Gas is a unit of measurement on the Ethereum network for the computing
power used to execute a smart contract or a transaction.
• The price of gas is very low compared to Ether. The execution and resource
utilization costs are predetermined in Ethereum in terms of Gas units,
called gwei.
4)Ethereum Accounts –
1. Externally owned account –
These accounts are used to store transactions.
2. Contract account –
As the name itself suggests, these accounts store the details of Smart
Contracts.
5)Nonce –
For externally owned accounts, nonce means the number of transactions via this account.
For a contract account, nonce means the number of contracts generated via this account.
6)Storage Root –
It is the main root node of a Merkle tree. Hash of all details of the account is stored here.
The root of the Merkle tree is the verification of all transactions.

4)Explain Smart contracts, Its Types and Process?

Smart Contracts-
A smart contract is a simple computer programme that makes it easier for two parties to
exchange any asset. You may wish to exchange money, stocks, real estate, or any other kind
of digital asset. These contracts can be created by any user on the Ethereum network. The
terms and conditions that were mutually agreed upon by the parties make up the majority of
the contract (peers)
A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the
negotiation or performance of a contract. Smart contracts allow the performance of credible
transactions without third parties. These transactions are trackable and irreversible.
The main advantage of smart contracts is that they cannot changed once they have been
performed, and every transaction carried out on top of one is forever recorded-it is
immutable.
Therefore, the transactions associated with the original contract will not change if the smart
contract is modified in the future; you cannot edit those transactions.
Any smart contract execution on Ethereum is decentralised since the smart contract
verification is carried out by anonymous network participants without the requirement for a
centralised authority.
The identities of the two parties are secure on the Ethereum network, and any asset or
currency may be transferred in a trustworthy and transparent manner.
When a transaction is completed correctly, the sender's and the receiver's accounts are
updated appropriately, which builds confidence between the parties.

Types of Smart Contracts-

1)Smart Legal Contract: The most traditional type of smart contract is a smart legal contract,
which has the same legal requirements as its traditional counterparts (i.e., mutual assent,
expressed by a valid offer and acceptance; adequate consideration; capacity; and legality) and
is used to hold parties responsible for upholding their end of an agreement. When correctly
configured, a smart contract is legally binding and requires the parties to uphold their duties;
failing to do so may result in immediate legal action being taken against the party in violation
by the smart contract.
2) Decentralized Autonomous Organizations: Communities on the blockchain are known as
Decentralized Autonomous Organizations, or DAO. A set of established guidelines that are
defined using smart contracts can serve to define these communities. Every person is bound
by the community's rules, and it is up to each individual to uphold those laws. These
regulations, which are composed of several smart contracts, collaborate to keep an eye on
community actions.
3) Application Logic Contracts: Application Logic Contracts, or ALCs, are blockchain contracts
that incorporate application- based code that keeps up with other contracts on the network.
They allow communication between various devices, such as when blockchain technology and
the Internet of Things (IoT) are combined. ALCs are an essential component of multi- function
smart contracts and are often managed by a programme.

The process
There are two parties (a buyer and a seller) interested in purchasing and selling an item.
Those two parties establish a smart contract, which is a digital and self-executing agreement,
with its terms or conditions written in codes on a decentralised blockchain network. When all
parties agree to these conditions, the transaction is completed. fully
data The smart contracts platform provides top-notch security and total transparency.
Additionally, it prevents manipulation and enables the two parties to follow the transaction.
The parties involve identities, however, are kept private.

Need of Smart Contracts-

1)Transparency
The parties' understanding of the terms and conditions is complete. Furthermore, users have
a very straightforward means of confirming the elements that would affect them and the
contract beneficiaries since the execution of the programme or the smart contract requires a
few specific inputs.
2)Time Efficient
As previously noted, whenever a control variable or a user call activates a smart contract, it
starts working right away. The blockchain and other sources in the network make data
instantly available to the system, so it doesn't take very long for the execution to validate,
process, and settle the transaction.
3)Safety
Every block of data on the blockchain is cryptographically encrypted, which is a fundamental
aspect of the technology. In other words, even while the data is redundantly stored on a large
number of network nodes, only the owner of the data has access to see and utilise the data.
4)Trust
The fact that smart contracts will never display subjectivity or bias in carrying out the
agreement implies that all parties involved are totally committed by the outcomes and can
completely rely on the system.
This also implies that the "trusted third-party" necessary in traditional transactions of vital
significance is not necessary in this case.
5)Cost effective
Using a smart contract has very little expenses. Businesses typically employ administrative
personnel whose only responsibility it is to ensure that the transactions they do are legal and
comply with laws.

5)Write short note on EVM OR EVM is known as quasi-Turing complete machine.

EVM is intended to function as a runtime environment for compiling and deploying Ethereum-
based smart contracts. The smart contract language for Ethereum ie Solidity programming
language, is understood by EVM.
In essence, you may install your stand-alone environment, which can serve as a testing and
development environment, a EVM is run in a sandbox environment. In other words, the EVM
doesn't interact with the OS so it has no access to disk, RAM or networking it's essentially self-
contained.
Once you are satisfied with the smart contract's performance and usefulness, you may deploy
it on the Ethereum main network after testing it (using it) "n" times and confirming it. EVM is
quasi-Turing complete machine.
Theoretically, Turing machine can run any computation irrespective of complexity, recursion,
depth, length and complication no matter how much time and storage is required to complete
it. Executing instructions on EVM incurs some cost known as gas.
Ethereum platform has built in token known as ether.
Gas in this context means some fraction of ether which needs to be supplied along with other
inputs while executing the transaction or smart contract. This is similar to the
fuel(gas/petrol/diesel) that is required to run a motor vehicle.
A vehicle runs as long as fuel is available. In the same manner code execution on Ethereum
continues till the availability of the gas. Hence, EVM is known as quasi-Turing complete
machine due to dependency on gas availability for execution.
Also, gas offers protection against infinite loop scenario in smart contract programming. The
significance of EVM is also evident in the effectiveness of preventing Denial-of-Service or DOS
attacks. In addition, EVM is also responsible for ensuring that a specific program does not
have access to the states of each other.
6)Interaction of Smart Contract and EVM with DApp
When a external application such as Dapp wants to interact with the smart contract it needs
some details about contract such as the function signatures and properties exposed by it.
This is similar to how a distributed application interacts with an external web service using
service description language. A smart contract program, written say solidity gets compiled
to a bytecode.
The Ethereum language compiler generates a human readable interface know as Application
Binary Interface (ABI).
It contains all the necessary details needed by a interact with smart contract using an external
helper library such as Web3. Any programming language used in the smart contract is
translated into bytecode that the EVM can understand.
The EVM has the ability to read and run this bytecode. As soon as your smart contract is
created in Solidity, it is translated into bytecode and deployed on the EVM, providing security
against hacker attacks.
7)Working of EVM
Consider the case when person A wishes to give person B 10 ethers. A smart contract will be
used to transfer funds from A to B and send the transaction to the EVM. The Ethereum
network will use the proof-of-work consensus algorithm to validate the transaction.
The Ethereum miner nodes will validate this transaction, determining if A is who he claims to
be and whether he has the required amount to transmit. The miners will charge a fee to
validate this transaction and will get a reward throughout this process. Once the transaction
is validated, the ether will be deducted from A's wallet and deposited to B's wallet.
Using their respective EVMs, each node on the Ethereum network runs smart contracts.

8)Explain Swarm? Which elements are used in it

Swarm is a decentralised storage, service, and communication platform created to provide

dApp developers with a permissionless, censorship-resistant architecture. Swarm, which is
based on the Ethereum web3 stack, seeks to offer a variety of Web 3.0 services, including as
chat. streaming audio and video, and database hosting.
By giving consumers back control over their data, Swarm aspires to become "the operating
system of the re-decentralised internet."
Swarm, which is built on Ethereum, makes advantage of the blockchain's security and smart-
contract features as well as its developer community. Swarm is a representation of a
communication and storage network that intends to someday provide the fundamental
infrastructure for a completely decentralised internet, with digital services distributed
throughout a wide global network of nodes.
Swarm's front-end user interface is similar to that of the World Wide Web, but the network's
back-end is different from traditional internet usage since data is hosted on a peer-to- peer
architecture rather than on centralised servers.
Due to its incentive system, the decentralised infrastructure is intended to be self-sustaining.
Users may exchange resources for network services like data storage and distribution, with
payments handled by Ethereum smart contracts and powered by the native BZZ currency.

Elements used in Swarm-

1) Chunks: Data saved on Swarm is divided into chunks, which are 4KB or smaller blocks. A
32-byte hash of the content in each chunk identifies it. data that is uploaded to Swarm is
divided into chunks that are distributed between nodes and given a timestamp for
identification.
2) Reference: A unique file identifier that facilitates the retrieval of data stored in chunks for
clients. Smart contracts control the built-in BZZ incentives, which are distributed to nodes
who make their resources accessible for file storage.
3) Manifest: A data structure that allows for URL-based content retrieval. The Manifest uses
the unique reference to identify the appropriate data chunks when a client requests content
on Swarm, allowing the nodes containing those chunks to be contacted for retrieval.

9)Enlist and Brief about Different DApps employing Swarm. And Explain use cases of swarm
DAPPS Employing Swarm
1)Etherna: A decentralised open-source video platform that prioritises content durability,
creator rewards, and censorship resistance.
2) Zetaseek: It is a search engine built on the blockchain for individual users that is intended
to organise "files, links, and references" in information that has been posted to the Swarm
network.
3) Scaleout: A platform for data storage that focuses on end-to-end privacy, the use of
DevOps tools, and advanced machine learning.
4) Boma: A communication and engagement platform with a privacy-focused approach that
offers event organisers a variety of features like engagement data, CMS capabilities, galleries,
and audio and video streaming.
5) Giveth: It is a decentralised platform for organisations to raise money that offers
accountability and transparency while facilitating donor communities.

USE CASES OF SWARM

Swarm enables dApp developers to safely and effectively store and deliver data and content
to blockchain customers.
The node-to-node message capability, scalable state-channel infrastructure, database
services, and media streaming services are all features of the Swarm base-layer architecture.
In 2020, Swarm started distributing Swarm Grant Waves to promote network adoption and
broaden the ecosystem. The Grant Waves provide developers with mentoring as well as cash
assistance for Swarm initiatives.

10) Note on Whisper

Whisper is an Ethereum's inter-application communication protocol.
One of the three fundamental requirements for decentralised applications is messaging.
Compute, Storage, and Messaging are the three types of resources that non-trivial programs
usually need in order to deliver services.
Created with the grand vision of building a global decentralised computing platform,
Ethereum serves these basic needs with three pieces of foundational technologies: the EVM
(Ethereum Virtual Machine) provides compute, Swarm handles storage of large files, and
Whisper is the answer to messaging.
In a nutshell, Whisper is a peer-to-peer (P2P) messaging protocol for decentralised
applications (Dapps) to provide Dapp developers a simple API to send and receive messages
in almost complete secrecy.
Due to this concern on privacy, Whisper's creators had to make some unusual trade-offs
between performance and privacy. Whisper is therefore more suited to a certain group of use
scenarios.

Use Cases for Whisper

1)Publish-subscribe coordination signalling- Dapps could collaborate with one another by

implementing the pubsub pattern with Whisper.
2)Secure, untraceable communication- Whisper is designed from the ground up to support
highly private and secure communication with plausible deniability.

Fundamentals of Whisper-
1)A network of equal peers
The Whisper network is made up of decentralised systems connected together as nodes. A
node creates this network by utilising the DEVp2p protocol to identify its peers.
As the basis upon which the protocols in the Ethereum stack are constructed, DEVp2p is a
crucial bit of technology in the Ethereum ecosystem. Whisper and its sister technologies
Ethereum and Swarm do not interact despite using the same wire protocol.
The common use of the same implementation by Whisper and Ethereum nodes is only a
coincidence brought on by practicality.

2) Identity-driven communication
A Dapp instance can begin receiving messages from a node after it has connected to Whisper
by creating an identity there. Although it is required to create two-way communications, an
identity is not absolutely necessary in order to send messages. This raises interesting use
cases and challenges.
In general, a Whisper identity is an entity (an individual or a group) that consumes messages.
An identity can be viewed practically as the owner of an encryption key.
Therefore, one has to generate an encryption key in order to receive Whisper messages. For
various use cases, symmetric (AES-256) and asymmetric (secp256k1) keys are both supported.
Encryption ensures that only the intended recipient(s) can access the content of a piece of
message. If a node can decrypt a piece of message, then the message is intended for a
recipient using that node.

3)Delivering Messages in Darkness

Whisper makes a big deal out of its ability to communicate in the dark. This means that two
nodes in a Whisper network can communicate without leaving any traceable evidence to
traffic analysers and other peers, even if those peers participated in the message routing.
Performance is traded for privacy in order to achieve this.

4) Probabilistic message filtering

A node must be able to decode the message in order to determine whether a message is
meant for an identity using its service.
A node must utilise every key it has in its possession before it can decide if a piece of message
is transmitted to its users since the envelope carries no information about the intended
receiver. Decryption is a costly task! In most real applications, it is impossible to decode all
incoming messages because to the fact that each node will get a copy of every message sent
across the network.
 UNIT 6
1) Explain in brief about layered view of blockchain, explain in brief How blockchain made
impact on banking sector
1. Application Layer
Several applications are developed due to the characteristics of the blockchain, such as the
immutability of the data, the transparency between the participants, the resistance against
enemy attacks, etc. Some applications are only incorporated into the application layer,
assuming any available “flavor” of blockchain. While some applications are integrated into
the application layer and intertwined with other blockchain layers. That’s why the application
layer should be considered a blockchain part
2. Execution Layer
It is the Exemption Layer where the execution of the instructions mandated by the Application
Layer occurs at all nodes in a blockchain network. The instructions can be simple instructions
or a set of multiple instructions in the form of an intelligent contract.
3. Semantic Layer
The semantic layer is a logical layer because there is order in transactions and blocks. Whether
valid or invalid, the transaction has a series of instructions that are passed through the
execution layer but are checked in the semantic layer. In the case of bitcoin, in this layer, it is
checked whether it is carrying out a legal transaction, or a double-spending attack, or the
execution of this transaction is authorized.
4. Propagation Layer
The back layer is more of a unique phenomenon having no more interaction with other nodes
in the system. The propagation layer is a layer of peer-to-peer communication that allows
nodes to find each other and communicate and synchronize with each other in relation to
current network conditions. When a transaction occurs, we know that it is transmitted over
the entire network.
5. Consensus Layer
The consent layer is often the base layer for a blockchain. There can be various ‘ways’ to get
community consent, depending on the application of the case—blockchain security and
safety in this area.

Impact of blockchain in banking sector

For the banking and financial services markets, the Blockchain technologies provide various
attractive features.
Financial institutions and banks no longer see blockchain technology as threat to traditional
business models. The world's biggest banks are in fact looking for opportunities in this area
by doing research on innovative blockchain applications.
1. Improves Sending & Receiving Payments
Sending and receiving payments using traditional banking methods is not exactly effective.
Let’s say you want to send money from the U.S to the U.K, you’ll have to pay a fee to the
middleman for wire transfer. To make matters worse, the person you’re sending money to,
may not even register the transaction until a week later.
2. Clearance and Settlements Systems
As mentioned above, an average bank transfer takes up to 3 days to settle, which is because of
the lack of proper infrastructure. The antique financial infrastructure makes moving money
around a hassle for both consumers and banks.
3. Ensures Security of Payments and Banking Data
Financial transactions of all kinds come with their fair share of risks. Customers need to know
who owns the assets like stocks, commodities that you’re investing into. The largest financial
markets globally achieve this transparency with a complicated chain of brokers, online
exchanges, custodian banks, and so on. These relationships are built on a slow paper-based
method that can be highly inaccurate.
4. Secure Loans and Credits Offering
Banks and lenders underwrite loans using an old method known as “Credit Reporting”. The
utilization of blockchain technology allows P2P loans, complex programmed loans, and a faster,
more secure loan process in general.
5. Customer KYC and Fraud Prevention
Another sector that can be greatly improved with the utilization is customer KYC.
Banks/firms/lenders need to verify the identity of their customers using a series of documents
before allowing them to use their products or services.
2) How can blockchain Technology be used for Voting systems?
Electronic voting systems have been widely studied for decades to reduce the costs of
conducting elections while maintaining the fairness of elections in accordance with the
standards of safety, privacy, and regulation.
A modern blockchain-based electronic voting system that discusses some of the existing
system drawbacks and evaluates certain of the common blockchain technologies for creating
an e-voting system based on blockchain.
The system is decentralized and does not depend on self-belief. Each voter registered will be
able to vote via any Internet- connected device. The Blockchain can be confirmed and
distributed to the public, in such a way that nobody can misuse it.
In order to achieve a decentralized e-voting framework without a trusted Third Party, the key
idea is to combine block chaining with hidden exchange scheme and homomorphous
encryption.
This offers a public and open voting process while ensuring that the identity of the voter, data
transmission privacy and voting verification during the billing phase are secured anonymity.
The method of democratic and open voting ensures the confidentiality of the identity of the
elector and data transmission privacy and vote verification during the billing process.
Blockchain technology is useful for voting systems, especially in national elections. A voter
can cast a vote only once and check whether it has been correctly recorded or not. This
process ensures data integrity. The use of a consensus protocol in the distribution and
authentication process makes fraud easy to detect and prevents any type of alterations.

3)Write a short note on drug and medical equipment supply chains

using block Chain.
The structure of a healthcare supply chain is primarily based upon a typical supply chain. In
this case, the “consumers” would be the patients in need of treatment. They are the ultimate
beneficiaries in the supply chain. At present, the supply chain can be divided into three parts.
They are:
Source
The healthcare supply chain always begins with the manufacturer, who will use raw materials
to develop and create products. The manufacturer will then either directly transport the
goods to the institution or work through a mediator.
Mediator
The mediator, in this case, can be distributors or group purchasing organizations. A group
purchasing organization is an organization that functions to create contracts between
vendors and stakeholders in an effort to reduce the overall cost of purchasing goods. They
exclusively cater to the healthcare sector in procuring goods and services.
Stakeholder
Finally, the products and services are delivered to the stakeholders. In this case, the medical
establishments like hospitals, nursing homes, and other places that treat the patients. Here is
where the invoicing and payments will take place. That is, the shareholders will compensate
all the parties in the supply chain.
The supply chain is also monitored by regulatory bodies like Food and Drug Administration
and other insurance companies like Medicare that check if the goods being used are safe for
use.
4)Explain how blockchain and IOT can work together.
In IoT-based networks, many datasets are available publicly for all users. Blockchain is used
to guarantee the privacy and integrity of these shared data sets.
A huge volume of data is captured on the IoT platform by a cloud service. Many nodes are
connected with a gateway in small networks. In a large network, many nodes are also
connected with gateways based on the cluster. Each node contains a pair of public and private
keys. Every node in the network uses its public key at the time of registration and creates a
digital profile record on the blockchain.
When a node receives a transaction, the private key is used for creating a digital signature,
which is verified by the gateway.
Different loT devices are connected with the blockchain to synchronize and maintain a
protocol for interacting with the blockchain network.
Various intelligent devices and objects communicate with each other in an IoT environment
to perform various tasks. Malicious activities in the network can occur through various types
of attacks during this process. Blockchain technology for encryption and secrecy has been
commonly used in the IoT network for this purpose. Blockchain in IoT will increase the power
of the existing system, which can serve as a building block for creating new business models.
There is limited protection in the modern IoT world when transmitting private information
between IoT devices. A hacker may use the transaction data to access private data on devices
and commit fraud.
IoT tools, on the basis of computation efficiency, bandwidth, and resource usage, are
detected and validated during transactions. After the validation process has been completed,
the miner nodes are used in the blocks for storing data.
The systems are synchronized with the miner nodes to get the latest information on the data
blocks. Various protocols are applied in the blockchain-powered IoT systems for the
synchronization process.
5)Applications of Blockchain In IOT
1)Smart City
A smart city is a diverse IoT-based network system that offers several applications and
security solutions to citizens. Smart cities rely on the assembly, analysis, and digitalization of
information.
2)Industrial Sector
Blockchain and IoT have opened numerous new opportunities and provided hope for
improved productivity, efficiency, and transparency in the industrial sector.
IOT provides real-time data by using sensors. Because the prices of sensors are falling day by
day, sensors are becoming affordable for many industries. Blockchain is combined with IoT
for sharing real-time data among users in a decentralized and distributed manner.
3)Supply Chain
The supply chain is an area in which many business problems occur, such as late deliveries,
absent suppliers, and untrust worthy intermediaries.
There is a lot of paperwork involved in the shipping procedures for supplies. In addition, there
are many losses of supplies and delays in deliveries of them. These problems can be resolved
by using blockchain, which removes the dependency on an intermediary.
IoT devices can be connected to components or products, and the blockchain captures the
data from these devices.
Using blockchain, the location of the shipping container and the time stamp of the transaction
can be captured. This eliminates the need for paperwork, and delays can be minimized.
Digitization creates more opportunities for many companies and drives the supply chain.
4) Autonomous Vehicle
The autonomous vehicle is an attractive technology that may offer benefits for years to come.
Sensors are attached to vehicles and all their information is captured on the IoT platform,
which is connected to a blockchain.
The data can show when a car needs to be refuelled or repaired due to an engine breakdown
or other problems.
Because the blockchain keeps a permanent record of each the trust between the
manufacturer and the consumer increases.
6) With the help of a diagram explain blockchain for agriculture supply chain.
Information and Communication Technology (ICT) plays an important role in improving the
technologies of agriculture. ICT facilitates the e-farming system that promotes business
efficiency and performance and reduces ambiguity and risks.
The aim of e-agriculture is to allow farmers to share knowledge to help farmers become more
successful, smarter and avoid possible risks. Blockchain will help use and promote this
exchange of information.
Introducing blockchain into efarm systems helps to build faith between participants who
share their knowledge and use the e-farming servers provided to improve their agricultural
operations.
Such programs are designed to improve cost efficiency, enhance food security and reduce
ambiguity and risks.
In regard to main agriculture firms, blockchain technologies may also be used to report honey
adulteration activities, to support intelligent pollution contracts and to improve the beehive
insurance market in agriculture-related industries, like bee industries.

7) Write a short note on use of blockchain technology in medical sector

• Blockchain must be transparent in the field of healthcare and scalable, secure and data
privacy must be protected.
• The healthcare blocks primarily contain health documents, images, and documents.
This includes a network of hospitals funded, managed, and controlled by a central
organization.
• Data from patients are one of the most informative and important factors of
healthcare. The medical record of a patient is usually spread over many networks
owned and operated by one or more health providers. In order to digitalize patient
data into what is generally referred to as the electronic medical record (EMR), the
synthesis technology has developed.
• Due to many issues such as security and privacy, there are many hurdles to the
exchange of EMRs with several healthcare providers and related organizations.
Blockchain can be used to provide safe EMRs and other exchanging of health
information between various vendors.
• Blockchain can facilitate the interoperability of updated digital health profile of
patients in a timely manner along with other benefits, such as, patient data security,
protecting patient's identity, and the coordination of care.
Secure Health Information Exchange between Stakeholders
1)Ensuring Privacy
The ensuring privacy of healthcare record is one of the major concerns while exchanging
information between various stakeholders, such as, doctors, local and international research
and development units, health organizations, government sectors, patient's history, and
information forwarded to their caregivers.
2)Improve Integrity of Health Records
Improving or maintaining the high level of data integrity is critical in healthcare as the
prescription, lab test and major operation are suggested based on these records. Errors in the
record could lead to wrong diagnosis and inappropriate care.
3)Decentralized Health Insurance Records
Most countries are following health insurance system in which insurance is used to pay the
expenses against the healthcare services that are provided to the patient, both locally and
internationally.
8)Limitations of Blockchain Technology in Medical Sector
1)Security and Privacy
A key concern of healthcare blockchain applications is that despite the use of the technology,
personal identities may be discovered because of confidential data which has been collected
about the same individual patients would be tied to it.
2)Immutability
Although blockchain offers transparency via immutable Audit records, immutability
disappears, if poor quality or inaccurate information is entered into the chain for malicious
purposes.
3)Speed
Not all of the existing loT facilities are capable of executing encryption algorithms easily and
capably. Buying strong computing equipment is a huge investment for healthcare
organizations before enabling blockchain use.
4) Lack of Expertise
The public and patient populations lack experience, awareness, and faith in blockchain.
5)Healthcare Infrastructure
In such a blockchain-based structure, incentive to keep nodes alive in one nation calls for
major socio-technical changes and alignments.
6)Cost Undisclosed
No one is specific on the up-front costs of implementing and keeping a blockchain-based
framework. The cost of maintaining the existing framework is balanced by the benefits of
migrating to the blockchain

9)Write a short note on use of blockchain technology in government sector.

Blockchain technology plays a vital role in the development of social and governmental
activities for e-governance.
In the current system, data such as employee IDs are stored in a centralized database with
multiple duplicate servers. However, this centralized system suffers from many cyber-attack
issues, such as denial of service (DoS) and distributed denial of service (DDoS).
Blockchain technology can initialize many flexible services, such as voting records, property
registrations, patent exchanges, criminal records, and licenses for driving and other activities.
In a distributed system, shared and approved transactions are stored, and each block contains
a hash value to ensure its integrity in the ledger.
In government sector, verifying authenticity of the document can be done using blockchain
which eliminates the need for centralized authority.
The document certification service helps in Proof of Ownership (who authored it), Proof of
Existence (at a certain time) and Proof of tampered) of the documents. Since it is counterfeit-
proof and can be verified by independent third parties these services are legally binding. Using
blockchain for notarization secures the privacy of the document and those who seek
certification. By publishing proof of publication using cryptographic hashes of files into block
chain takes the notary time stamping to new level.
It also eliminates the need for expensive notarization fees and ineffective ways of transferring
documents.

Applications of Blockchain Technology in Government sector

1)Individual Identity
In the traditional system, personal records are stored separately in different systems, such as
an employment file, educational file, and business file. The information about an individual
that is stored in a government database maybe different from the information stored in other
databases.
This problem can be solved by using blockchain technology, where information about a
person is permanently recorded at a single point in time and can be made available for
anyone, or any institution, that wants it.
2)Land and Property Registry
Ownership of property, such as a house or land, can be transferred using a blockchain-based
smart contract. The rules of the transaction are maintained by the smart contract. The buyer
keeps the total cost of the property in the blockchain and distributed system. Then, the seller
can receive the transferred money, and this transaction is confirmed before the property is
handed over. After that, the registration of the property is updated in the blockchain.
3)Birth and Marriage Certificates
Some vital records such as birth, marriage, and death certificates can be permanently stored
using blockchain technology. This ensures that the total number of citizens listed in the
automated system cannot be changed.
4)Vehicle Registrations
If someone wants to buy a used car, its mileage record scan be analysed by its vehicle
identification number (VIN)using blockchain technology.
Because the mileage and history records of the car are permanently stored, the seller cannot
cheat the buyer.