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Assignement - 2-1

The document discusses proof of work (PoW) as a consensus mechanism in blockchain technology, where miners compete to generate a target hash to add new transaction blocks to the blockchain. It outlines the advantages of blockchain, such as immutability, transparency, and censorship resistance, as well as disadvantages including slower performance, high implementation costs, and challenges in data modification. Additionally, it lists various consensus algorithms, including proof of stake and delegated proof of stake.

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santhosh kumar
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18 views3 pages

Assignement - 2-1

The document discusses proof of work (PoW) as a consensus mechanism in blockchain technology, where miners compete to generate a target hash to add new transaction blocks to the blockchain. It outlines the advantages of blockchain, such as immutability, transparency, and censorship resistance, as well as disadvantages including slower performance, high implementation costs, and challenges in data modification. Additionally, it lists various consensus algorithms, including proof of stake and delegated proof of stake.

Uploaded by

santhosh kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ASSIGNEMENT – 2

DISTRIBUTED LEDGER TECHNOLOGY

Q1. What is proof of work in Blockchain technology?


A. Proof of work (PoW) is a form of adding new blocks of transactions to a
cryptocurrency’s blockchain. Crypto miners compete to win the right to update
the blockchain and receive awards.
WORKING OF PROOF OF WORK:
The proof-of-work model is a consensus mechanism used to confirm and record
cryptocurrency transactions.
Every cryptocurrency has a blockchain, which is a public ledger made up of
blocks of transactions. With proof-of-work cryptocurrencies, each block of
transactions has a specific hash. For the block to be confirmed, a crypto miner
must generate a target hash that is less than or equal to that of the block.
To accomplish this, miners use mining devices that quickly generate
computations. The aim is to be the first miner with the target hash because that
miner is the one who can update the blockchain and receive crypto rewards.
The reason proof of work in cryptocurrency works well is because finding the
target hash is difficult but verifying it is not. The process is difficult enough to
prevent the manipulation of transaction records. At the same time, once a target
hash is found, it's easy for other miners to check it.

Q2. Consensus algorithm?


A. A consensus mechanism enables the blockchain network to attain
reliability and build a level of trust between different nodes, while
ensuring security in the environment. This is the reason why it is one of
the vital parts of every Blockchain app development guide and every
dApp project in the distributed ledger environment.
DIFFERENT TYPES OF CONSENSUS ALGORITHM:
1. Proof of work
2. Proof of stake
3. Delegated proof of stake
4. Proof of capacity
5. proof of burn etc.

Q3. Advantage and disadvantage of Blockchain technology?


A. Advantages of Blockchain Technology:
Immutability : Blockchain supports immutability, meaning it is impossible
to erase or replace recorded data. Therefore, the blockchain prevents data
tampering within the network.
Transparency : Blockchain is decentralized, meaning any network member
can verify data recorded into the blockchain. Therefore, the public can trust
the network.
Censorship : Blockchain technology is free from censorship since it does not
have control of any single party. Therefore, no single authority (including
governments) can interrupt the operation of the network.

Traceability : Blockchain creates an irreversible audit trail, allowing easy


tracing of changes on the network.

DISADVANTAGES OF BLOCKCHAIN:
Speed and performance : Blockchain is considerably slower than the
traditional database because blockchain technology carries out more
operations. First, it performs signature verification, which involves signing
transactions cryptographically. Blockchain also relies on a consensus
mechanism to validate transactions. Some consensus mechanisms, such as
proof of work, have a low transaction throughput. Finally, there is
redundancy, where the network requires each node to play a crucial role in
verifying and storing each transaction.
High implementation cost : Blockchain is costlier compared to a traditional
database. Additionally, businesses need proper planning and execution to
integrate blockchain into their process.
Data modification : Blockchain technology does not allow easy modification
of data once recorded, and it requires rewriting the codes in all of the blocks,
which is time-consuming and expensive. The downside of this feature is that
it is hard to correct a mistake or make any necessary adjustments.
Submitted By:
Santhosh Kumar
RA2011050010097

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