Blockchain IA1

1 Explain the role of distributed systems in blockchain tech. Discuss how distributed systems ensure
the reliability of blockchain networks

GFG:

How Blockchain Integrates with Distributed Systems?

Below is how blockchain integrates with distributed systems:

• Decentralization: Both, block chain and distributed system divide functions into many nodes
(computers). In blockchain this means that no one party has absolute authority to govern the
whole system to increase the level of protection.

• Consensus Mechanisms: Even though blockchain possesses a decentralized structure, nodes

must agree on the current state in the ledger, which is done by applying consensus
algorithms of PoW, or PoS. The same mechanisms are also used in distributed systems for
maintaining have consistency over the nodes.

• Fault Tolerance: Both are basically intended to function as a system even if some of the
nodes in the distributed computing application fail. In blockchain the ledger is duplicated to
maintain its integrity while in distributed systems data is replicated for availability.

• Data Replication: Again, an effective ledger of Blockchain is stored on every node, and data
consistency and data available in blockchain. Distributed systems also mimic the idea of
making copies of data on different nodes with an aim of improving the access speed, and
efficiency.

• Security and Transparency: It proves the existence of the ICT by the use of cryptographic
hashing while at the same time the transaction history is made available to all the members
in the network. As mentioned earlier, distributed systems are more secure and transparent
because of this added protection.

OR FROM PPT:
2.Describe the historical development of blockchain tech. Highlight the key milestones and their
significance in shaping the current blockchain ecosystem
3.Compare and contrast the diff types of blockchain priv public etc. provides examples for each type
 OR

Blockchain networks come in several types, primarily classified as public, private, consortium (or
federated), and hybrid. Here’s a comparison and examples for each type:

1. Public Blockchain

• Definition: A decentralized network open to anyone. Anyone can participate as a node,

validate transactions, and access the ledger.

• Key Features: Completely decentralized, permissionless, high transparency, and security

through distributed consensus mechanisms.

• Use Cases: Primarily for cryptocurrencies, open-access dApps, and smart contracts.

• Examples:

o Bitcoin: A public blockchain designed for peer-to-peer transactions.

o Ethereum: Supports decentralized applications and smart contracts.

2. Private Blockchain

• Definition: A restricted blockchain accessible only to specific, authorized participants within

an organization. Access is controlled, making it more centralized.

• Key Features: Higher transaction speed, controlled access, permissioned, and managed by a
single entity or organization.

• Use Cases: Internal enterprise solutions, such as asset management, supply chain tracking,
and confidential transactions.

• Examples:
 o Hyperledger Fabric: A framework for building private blockchains for enterprise
solutions.

o Corda: Used in finance for confidential data sharing among permissioned parties.

3. Consortium (Federated) Blockchain

• Definition: A semi-decentralized blockchain controlled by a group of organizations rather

than a single entity. Permissions are shared among pre-selected nodes, making it
collaborative yet restricted.

• Key Features: Partially decentralized, shared control, faster consensus, and enhanced
privacy.

• Use Cases: Ideal for industries requiring collaboration between multiple organizations, such
as finance, healthcare, and logistics.

• Examples:

o R3 Corda: Built specifically for financial institutions.

o Energy Web Foundation: Used for energy trading and grid management.

4. Hybrid Blockchain

• Definition: Combines features of both public and private blockchains, allowing some data to
be public while restricting access to other data.

• Key Features: Flexible access, partial decentralization, customizability, and controlled

transparency.

• Use Cases: Industries needing a balance of public transparency and private data security, like
government records, retail, and real estate.

• Examples:

o Dragonchain: Allows companies to operate partly in public and partly in private.

o Ripple (XRP): Uses a hybrid approach for facilitating both public and private
transactions in cross-border payments.
4.Explain cap theorem and how it applies to blockchain tech.Discuss the trade-offs between
consistency availability and partition tolerance in BC networks

The CAP Theorem states that a distributed system cannot simultaneously achieve Consistency (C),
Availability (A), and Partition Tolerance (P). It must choose two, sacrificing the third. Blockchain
networks, inherently decentralized, prioritize Partition Tolerance due to their distributed nature,
leading to trade-offs between Consistency and Availability:

1. Consistency vs. Availability: Blockchains prioritize Partition Tolerance and Eventual

Consistency over strict Availability. In cases of network partitions (temporary communication
issues), nodes may create separate versions of the chain. The consensus protocol later
reconciles these forks to ensure a consistent view, sacrificing immediate availability.

2. Consistency and Partition Tolerance: Blockchain networks often choose Consistency and
Partition Tolerance, allowing nodes to eventually agree on one chain version through
consensus protocols (like Proof of Work). This approach provides resilience to network splits
but can delay transaction confirmations.

3. Partition Tolerance and Availability vs. Strict Consistency: Achieving high availability with
Partition Tolerance can reduce strict consistency, leading to eventual consistency. This
means that while blockchains prioritize reliability across nodes, they converge on a unified
ledger state over time rather than instantly.

In summary, blockchains favor Partition Tolerance and Eventual Consistency over immediate
Availability, providing resilience and security at the cost of instant transaction confirmation. This
balance supports decentralization and robustness but can delay responsiveness during high demand.

5.Discuss how BC enables decentralisation. Explain the methods used for decentralisation and
provide examples of decentralised applications.

Blockchain enables decentralization by distributing control across nodes, removing the need for a
central authority. Here’s how it works:

1. Consensus Mechanisms:

o Proof of Work (PoW) (e.g., Bitcoin): Miners solve complex puzzles to validate
transactions, resisting central control.

o Proof of Stake (PoS) (e.g., Ethereum): Validators are chosen based on staked tokens,
reducing energy consumption while ensuring decentralization.

o Delegated PoS (e.g., EOS): Community elects validators, increasing scalability but
slightly centralizing control.

2. Distributed Ledger:

o Each node holds a copy of the blockchain, ensuring transparency and reducing
reliance on a central administrator.
 3. Smart Contracts:

o Self-executing contracts on blockchains (e.g., Ethereum) enable trustless applications

by automating processes without intermediaries.

4. Tokenized Governance:

o Decentralized Autonomous Organizations (DAOs) allow token holders to vote on

network decisions, promoting community control.

Examples of Decentralized Applications (DApps)

• Bitcoin: Peer-to-peer digital currency.

• Ethereum: Platform for DApps, such as Uniswap (decentralized exchange) and Aave
(lending).

• Filecoin: Decentralized storage network.

• Aragon: DAO creation and management platform.

Blockchain’s decentralized structure empowers users, enabling applications without centralized

oversight through consensus, transparency, automation, and community governance.