Blockchain-Technology SEM 5

a) What is Non-repudiation?

--> Non-repudiation is a security concept that ensures that a party cannot deny having sent
or received a message or document. It provides proof of the origin and delivery of digital
information, preventing disputes and fraud.

b) What is difficulty in a block?

--> In blockchain technology, difficulty refers to the computational effort required to mine a
new block. It's adjusted to maintain a consistent block generation rate. A higher difficulty
level means more computational power is needed to solve the cryptographic puzzle,
making the network more secure.

c) In which network, each & every node itself is a client and server?

--> In a peer-to-peer (P2P) network, each node acts as both a client and a server. This
means that nodes can directly communicate with each other without relying on a central
server. P2P networks are commonly used in file sharing, decentralized applications, and
blockchain technologies.

d) What is Ether?

--> Ether is the native cryptocurrency of the Ethereum blockchain. It's used to pay for
transaction fees, execute smart contracts, and participate in decentralized applications
(dApps) built on the Ethereum platform. Ether plays a crucial role in enabling the
functionality and security of the Ethereum network.

e) What is consensus?

--> Consensus is a mechanism used in blockchain networks to ensure that all nodes agree
on the same state of the blockchain. It involves a distributed consensus algorithm, such as
Proof of Work (PoW) or Proof of Stake (PoS), to validate and add new blocks to the chain.
Consensus mechanisms are crucial for maintaining the security and integrity of blockchain
networks.

f) What is full node?

--> A full node is a type of node in a blockchain network that stores a complete copy of the
blockchain. It validates transactions, participates in consensus mechanisms, and helps
maintain the integrity of the network. Full nodes play a crucial role in securing the
blockchain and ensuring its decentralized nature.

g) What is Remix?

--> Remix is a web-based IDE (Integrated Development Environment) specifically designed

for developing Ethereum smart contracts. It provides a user-friendly interface for writing,
compiling, testing, and deploying smart contracts on the Ethereum blockchain. Remix is a
popular tool among developers building decentralized applications (dApps) on the
Ethereum platform.

h) What is immutable ledger?

--> An immutable ledger is a record-keeping system where data, once recorded, cannot be
altered or deleted. Blockchain technology employs immutable ledgers to create a
transparent and tamper-proof system for storing and verifying transactions. This
immutability ensures the security and integrity of the data.

i) Define genesis block.

--> A genesis block is the first block in a blockchain. It contains the initial state of the
blockchain and is often hardcoded into the blockchain software. It serves as the foundation
for subsequent blocks and establishes the initial trust and security of the network.

j) What is EVM?

--> EVM stands for Ethereum Virtual Machine. It's a virtual machine that executes smart
contracts on the Ethereum blockchain. It provides a sandboxed environment where
developers can write and deploy code that can interact with the blockchain and other
smart contracts. The EVM ensures the security and reliability of the Ethereum network.

a) Who published a white paper proposing Ethereum in 2013?

--> Vitalik Buterin, a young programmer and writer, published the Ethereum white paper in
2013. This white paper outlined the vision for a decentralized platform that could execute
smart contracts and enable the creation of decentralized applications (dApps).

c) Give the command to find the current difficulty level.

--> BASH :-
"eth difficulty"

This command can be used in the Ethereum console or through a web3.js library to retrieve
the current difficulty level of the Ethereum network. The difficulty level indicates the
computational effort required to mine a new block.

d) What happens if someone loses the private key of his wallet?

--> If someone loses their private key, they lose access to their Ethereum wallet and the
cryptocurrency stored in it. The funds become irretrievable, as the private key is the only
way to access and spend the cryptocurrency.

f) Which institute standardized AES algorithm?

--> The National Institute of Standards and Technology (NIST) standardized the Advanced
Encryption Standard (AES) algorithm. AES is a widely used symmetric-key encryption
algorithm for secure data transmission and storage.

g) What is Nonce?

--> A nonce (number used once) is a random number used in cryptographic protocols to
ensure that a message or transaction is unique. In the context of blockchain, a nonce is a
number added to a block header to create a hash that meets a specific difficulty level.
Miners adjust the nonce to find the correct hash, which is a crucial part of the proof-of-work
consensus mechanism.

i) What is ICO?

--> Initial Coin Offering (ICO) is a crowdfunding method where companies raise funds by
issuing new cryptocurrencies. Investors buy these tokens in exchange for future access to
products or services, or for a stake in the company.

j) Who owns the Blockchain?

--> No one individual or entity owns a decentralized blockchain.It's collectively owned and
maintained by a network of users, ensuring transparency, security, and immutability.

a) What is the formula to calculate transaction fee in Ethereum?

--> Transaction fee in Ethereum is calculated by multiplying the gas limit (estimated
computational work) by the gas price (cost per unit of gas).

The formula is: Transaction Fee = Gas Limit * Gas Price.

b) What is plain text and cipher text?

--> Plaintext is readable data, like a normal message. Ciphertext is the encrypted version of
plaintext, unreadable without a decryption key.Encryption transforms plaintext into
ciphertext, and decryption reverts it back.

c) What is FPGA?

--> FPGA (Field-Programmable Gate Array) is a type of integrated circuit that can be
reconfigured after manufacturing. It allows users to customize the circuit's functionality to
meet specific needs, making it versatile for various applications.

d) In AES, on which factor does the number of encryption rounds depend

On?

--> In Advanced Encryption Standard (AES), the number of encryption rounds depends on
the key size used. AES supports key sizes of 128, 192, and 256 bits, with 10, 12, and 14
rounds respectively.

e) What is smart contract?

--> A smart contract is a self-executing contract with the terms of the agreement directly
written into code. It operates on a blockchain network, automatically verifying and
enforcing the conditions of the contract without the need for intermediaries.

f) What is the size of encryption key in DES?

--> The encryption key size in DES is 56 bits, although the key is represented as a 64-bit
number. Eight of these bits are used for parity checking, leaving 56 bits for the actual
encryption process.

g) What is ASIC?

--> ASIC (Application-Specific Integrated Circuit) is a type of integrated circuit designed to

perform a specific task efficiently. It's optimized for a particular application, making it faster
and more energy-efficient than general-purpose processors for that task.

h) Which algorithm is used by Bitcoin to verify transactions?

--> Bitcoin uses the Proof-of-Work (PoW) algorithm to verify transactions. In PoW, miners
compete to solve complex cryptographic puzzles, and the first miner to solve a puzzle adds
a new block of transactions to the blockchain.
i) Which is a unique PoS cryptocurrency that is aimed at delivering

interoperability among other blockchains?

--> Cosmos is a unique PoS cryptocurrency that focuses on interoperability between

different blockchains. It uses a system of interconnected blockchains, known as the
Cosmos Network, to enable seamless communication and asset transfer between various
blockchain ecosystems.

j) What is DAPP?

--> DAPP (Decentralized Application) is an application that runs on a decentralized network

of computers. It operates on a blockchain, ensuring transparency, security, and user
control without relying on a central authority.

a) What is Gas & Gas limit?

--> Gas is the unit of measurement for the computational effort required to execute a
transaction or smart contract on the Ethereum network.

Gas Limit is the maximum amount of gas a user is willing to spend on a transaction. It's like
setting a budget for the transaction. If the transaction requires more gas than the limit, it
fails, but the user still pays for the gas consumed up to that point.

c) List & Explain value data types in solidity.

--> Solidity supports several value data types:

Boolean: Stores true or false values.

Integer: Stores whole numbers, both signed (int) and unsigned (uint).

Address: Represents an Ethereum address.

Fixed-Point Numbers: Represent numbers with fixed decimal places (not fully
supported yet).

Bytes: Stores byte arrays of fixed size.

String: Stores text strings.

Enums: Define custom data types with a set of named constants.

Function Types: Represent function signatures.

Contract Types: Represent contract types.

d) What are the benefits of immutable ledger in blockchain?

--> Immutable ledgers in blockchain offer several benefits:

Security: Once data is recorded, it cannot be altered or deleted, ensuring data

integrity.

Transparency: All transactions are visible to everyone on the network, promoting trust
and accountability.

Auditability: The history of transactions is permanently recorded, allowing for easy

audits and verification.

Efficiency: Smart contracts automate processes, reducing the need for intermediaries
and streamlining operations.

e) What is stream cipher and block cipher?

-->

Block Cipher Stream Cipher

Block Cipher Converts the plain text into Stream Cipher Converts the plain text
cipher text by taking plain text’s block at a into cipher text by taking 1 bit plain text
time. at a time.

Block cipher uses either 64 bits or more than

While stream cipher uses 8 bits.
64 bits.

The complexity of block cipher is simple. While stream cipher is more complex.

Block cipher uses confusion as well as

While stream cipher uses only confusion.
diffusion.
 In block cipher, reverse encrypted text is While in-stream cipher, reverse
hard. encrypted text is easy.

The algorithm modes which are used in block The algorithm modes which are used in
cipher are ECB (Electronic Code Book) and stream cipher are CFB (Cipher Feedback)
CBC (Cipher Block Chaining). and OFB (Output Feedback).

Block cipher works on transposition While stream cipher works on

techniques like rail-fence technique, substitution techniques like Caesar
columnar transposition technique, etc. cipher, polygram substitution cipher, etc.

Block cipher is slow as compared to a stream While stream cipher is fast in comparison
cipher. to block cipher.

Suitable for applications that require strong Suitable for applications that require
encryption, such as file storage and internet strong encryption, such as file storage
communications. and internet communications.

a) Differenciate Symmetric and asymmetric key cryptography.

-->

Symmetric Key Encryption Asymmetric Key Encryption

It requires two keys, a public key and a

It only requires a single key for both
private key, one to encrypt and the other
encryption and decryption.
to decrypt.

The size of ciphertext is the same or smaller The size of ciphertext is the same or larger
than the original plaintext. than the original plaintext.
 The encryption process is very fast. The encryption process is slow.

It is used when a large amount of data needs

It is used to transfer small amount of data.
to be transferred.

It provides confidentiality, authenticity,

It only provides confidentiality.
and non-repudiation.

The length of key used is 128 or 256 bits The length of key used is 2048 or higher

In symmetric key encryption, resource

In asymmetric key encryption, resource
utilization is low compared to asymmetric
utilization is high.
key encryption.

It is efficient as it is used for handling large It is comparatively less efficient as it can

amount of data. handle a small amount of data.

Security is higher as two keys are used,

Security is lower as only one key is used for
one for encryption and the other for
both encryption and decryption purposes.
decryption.

c) List the applications of hash function.

--> Hash functions have numerous applications:

Data integrity verification: Ensuring data hasn't been altered.

Password storage: Storing hash values instead of plain text passwords.

Digital signatures: Verifying the authenticity of digital documents.

Blockchain technology: Securing and verifying transactions.

Data deduplication: Identifying duplicate files or data.

Random number generation: Creating pseudo-random numbers.

Q) What is the purpose of test network? List Ethereum testnets.

--> Test networks are replicas of a mainnet blockchain, designed for testing and
development purposes. They allow developers to experiment with new features, smart
contracts, and applications without risking real funds or disrupting the main network.

Popular Ethereum testnets include:

Goerli: A widely-used testnet for testing Ethereum's latest features and upgrades.

Kovan: Another popular testnet, known for its stability and reliability.

Rinkeby: A testnet that focuses on testing Ethereum's scaling solutions.

Sepolia: A newer testnet that provides a fresh environment for testing.

q) What is the difference between public and private blockchains?

-->

S. Basis of Public BlockChain Private BlockChain

n Compari
o son

1. Access – In this type of blockchain anyone can In this type of blockchain

read, write and participate in a read and write is done
blockchain. Hence, it is upon invitation, hence it is
permissionless blockchain. It is a permissioned
public to everyone. blockchain.

2. Network Don’t know each other Know each other

Actors –

3. Decentr A public blockchain is decentralized. A private blockchain is

alized more centralized.
Vs
 Centrali
zed –

4. Order The order of magnitude of a public The order of magnitude is

Of blockchain is lesser than that of a more as compared to the
Magnitu private blockchain as it is lighter and public blockchain.
de – provides transactional throughput.

5. Native Yes Not necessary

Token –

6. Speed – Slow Fast

7. Transact Transactions per second are lesser in Transaction per second is

ions pre a public blockchain. more as compared to
second – public blockchain.

8. Security A public network is more secure due A private blockchain is

– to decentralization and active more prone to hacks, risks,
participation. Due to the higher and data breaches/
number of nodes in the network, it is manipulation. It is easy for
nearly impossible for ‘bad actors’ to bad actors to endanger
attack the system and gain control the entire network. Hence,
over the consensus network. it is less secure.

9. Energy A public blockchain consumes more Private blockchains

Consum energy than a private blockchain as it consume a lot less energy
ption – requires a significant amount of and power.
electrical resources to function and
achieve network consensus.
 1 Consens Some are proof of work, proof of Proof of Elapsed Time
0. us stake, proof of burn, proof of space (PoET), Raft, and Istanbul
algorith etc. BFT can be used only in
ms – case of private
blockchains.

b) Blockchains are slow as compare to database. Justify.

--> Yes, blockchains are generally slower than traditional databases.

This is primarily due to the consensus mechanism required to validate and add new blocks
to the chain. This process involves multiple nodes verifying each transaction, which can be
time-consuming. Additionally, the decentralized nature of blockchains, while ensuring
security, can slow down transaction processing.

In contrast, traditional databases are centralized and can process transactions much
faster.

However, they lack the inherent security and transparency of blockchains.

c) What is P2P crypto Exchange?

--> A P2P (Peer-to-Peer) crypto exchange is a platform that allows users to directly buy and
sell cryptocurrencies with each other without the need for a central intermediary. This
decentralized approach offers more flexibility, privacy, and control over transactions. Users
can set their own prices and choose their preferred payment methods, making P2P
exchanges a popular choice for many crypto traders.

d) What is BFT?

--> Byzantine Fault Tolerance (BFT) is a consensus mechanism that allows a distributed
system to function correctly even if some nodes are faulty or malicious. It ensures that the
network can reach agreement on the state of the system, regardless of the behavior of
individual nodes. BFT is crucial for the security and reliability of blockchain networks.

e) What is Hybrid Blockchain?

--> A hybrid blockchain combines the best features of both public and private blockchains.
It offers a balance between decentralization and control, allowing for both public and
private transactions. Hybrid blockchains often have a public layer for transparency and a
private layer for confidentiality, making them suitable for various applications, including
supply chain management, healthcare, and finance.

a) Write a short note on life cycle of smart contract.

--> A smart contract's life cycle involves four main stages:

1.Creation: The contract is designed and coded, defining its rules and conditions.

2.Deployment: The code is compiled and deployed to a blockchain network, making it

accessible to all nodes.

3.Execution: Triggered by specific events or inputs, the contract's code executes,

automatically enforcing the agreed-upon terms.

4.Finalization: Once execution is complete, the results are recorded on the blockchain,
ensuring transparency and immutability.

b) What is Hard & Soft forks?

--> Hard Fork: A significant change to a blockchain's protocol that creates a new,
incompatible chain. This split occurs when a majority of nodes agree to the new rules,
leaving the old chain behind. Hard forks can lead to the creation of new cryptocurrencies.

Soft Fork: A less disruptive change to a blockchain's protocol that is backward compatible.
Nodes running the old software can still process and validate blocks created by the new
software. Soft forks are often used to introduce new features or improve the efficiency of
the network.

c) What is PoW?

--> Proof of Work (PoW) is a consensus mechanism used in blockchain networks to verify
and secure transactions. In PoW, miners compete to solve complex cryptographic puzzles.
The first miner to solve a puzzle is rewarded with a block of newly minted cryptocurrency.
This process consumes significant computational power, making it energy-intensive.
However, it ensures the security of the network by making it extremely difficult for malicious
actors to manipulate the blockchain.

a) Compare client server & peer to peer architecture.

-->
 Client-Server Network Peer-to-Peer Network

In Client-Server Network, Clients and

In Peer-to-Peer Network, Clients and
server are differentiated, Specific server
server are not differentiated.
and clients are present.

Client-Server Network focuses on While Peer-to-Peer Network focuses on

information sharing. connectivity.

In Client-Server Network, Centralized While in Peer-to-Peer Network, Each peer

server is used to store the data. has its own data.

While in Peer-to-Peer Network, Each and

In Client-Server Network, Server respond
every node can do both request and
the services which is request by Client.
respond for the services.

Client-Server Network are costlier than While Peer-to-Peer Network are less
Peer-to-Peer Network. costlier than Client-Server Network.

Client-Server Network are more stable While Peer-to-Peer Network are less
than Peer-to-Peer Network. stable if number of peer is increase.

b) Explain the contents of block of a blockchain.

--> A blockchain block typically contains the following elements:

1.Transactions: A collection of transactions that have occurred within a specific

timeframe. These transactions are verified and recorded on the blockchain.

2.Timestamp: A record of the time when the block was created. This timestamp helps
maintain the chronological order of transactions.

3.Nonce: A number that miners adjust to solve a cryptographic puzzle. This process is
essential for securing the blockchain and adding new blocks.
4.Hash: A unique cryptographic hash of the block's data, including the transactions,
timestamp, and nonce. This hash acts as a digital fingerprint for the block, ensuring its
integrity.

5.Previous Block Hash: A reference to the hash of the previous block in the chain. This
creates a chain of blocks, where each block is linked to the one before it, forming an
immutable record.

These components work together to create a secure, transparent, and decentralized

system for recording and verifying transactions.

c) Explain Ethereum architecture with neat diagram.

--> Ethereum's architecture consists of several key components:

1. Ethereum Virtual Machine (EVM): A sandboxed environment that executes smart

contracts. It provides a secure and isolated execution environment.

2. Blockchain: A distributed ledger that records all transactions and smart contract
executions. It ensures transparency and immutability.

3. Nodes: Computers that participate in the network. They store the blockchain, validate
transactions, and execute smart contracts.

4. Consensus Mechanism: Currently Proof-of-Stake (PoS), it ensures agreement among

nodes on the state of the blockchain.

5. Ethereum (ETH): The native cryptocurrency used to pay for transaction fees and
computational resources.

6. Accounts: Entities that hold Ether and interact with smart contracts. They can be
externally owned accounts (controlled by private keys) or contract accounts (controlled by
code).

7. Transactions: Actions that transfer value (Ether) or execute smart contract functions.
They are broadcasted to the network and included in blocks.

8. Gas and Gas Price: Gas is a unit of measurement for the computational effort required
to execute a transaction or smart contract. Gas price is the cost per unit of gas.

a) Write a short note on crypto wallet.

--> A cryptocurrency wallet is a digital tool used to store and manage your
cryptocurrencies. It doesn't actually store the coins themselves; instead, it holds the
private keys that allow you to access and control your digital assets on the
blockchain.

There are several types of crypto wallets:

Software wallets: These are digital wallets installed on your computer or mobile
device. They offer flexibility but require careful security measures.

Hardware wallets: These are physical devices that store your private keys offline,
providing a high level of security.

Web wallets: These are online wallets accessible through a web browser. They are
convenient but may be less secure than other options.

When choosing a crypto wallet, consider factors like security, user-friendliness, supported
cryptocurrencies, and additional features like staking or dApp integration.

b) What are the tasks of miners?

--> Miners are individuals or organizations that validate and add new blocks to a
blockchain. Their primary tasks include:

1.Solving Cryptographic Puzzles: Miners use powerful computing hardware to solve

complex mathematical problems. The first miner to solve a puzzle is rewarded with newly
minted cryptocurrency.

2.Verifying Transactions: Miners verify the authenticity of each transaction in a block to

ensure it complies with the blockchain's rules.

3.Securing the Network: By solving puzzles and verifying transactions, miners contribute to
the security of the blockchain network, making it resistant to attacks.

Maintaining the Blockchain: Miners store a copy of the blockchain, ensuring its
integrity and availability.

a) Write a short note on challenges of blockchain.

--> Blockchain technology, while promising, faces several challenges:

Scalability: As the number of transactions increases, blockchains can become slow and
inefficient. This limits their ability to handle large-scale applications.
Energy Consumption: Proof-of-Work consensus mechanisms, like Bitcoin's, require
significant energy consumption, raising environmental concerns.

Complexity: Blockchain technology is complex, requiring specialized knowledge to develop

and implement. This can hinder adoption and innovation.

Regulatory Uncertainty: The regulatory landscape for blockchain is still evolving, creating
uncertainty for businesses and developers.

Interoperability: Different blockchains often have incompatible protocols, making it difficult

to transfer data and assets between them.

Security Risks: While blockchain is inherently secure, it's not immune to attacks. Hackers
can exploit vulnerabilities in smart contracts or network protocols.

b) Write a short note on ICO.

--> An Initial Coin Offering (ICO) is a crowdfunding method used by startups to raise funds
for their projects by issuing cryptocurrency tokens. It's similar to an Initial Public Offering
(IPO) but operates within the blockchain ecosystem.

In an ICO, a company releases a whitepaper outlining its project and the utility of its tokens.
Investors purchase these tokens in exchange for cryptocurrency like Bitcoin or Ethereum.
The funds raised can be used to develop the project, expand operations, or acquire
resources.

While ICOs offer a decentralized and innovative way to raise capital, they also carry
significant risks. Investors should conduct thorough research, assess the project's viability,
and understand the regulatory landscape before participating in an ICO.

a) Enumerate and explain types of blockchain.

--> There are primarily four types of blockchains:

1. Public Blockchains:

Open to everyone.

Highly decentralized, no central authority.

Examples: Bitcoin, Ethereum.

2. Private Blockchains:
Permissioned, controlled by a central authority.

High level of privacy and security.

Used for internal operations within organizations.

3. Consortium Blockchains:

Semi-decentralized, multiple organizations collaborate.

Offers a balance between security and transparency.

Used for inter-organizational collaboration.

4. Hybrid Blockchains:

Combines features of public and private blockchains.

Allows for both public and private transactions.

Offers flexibility and customization.

c) Explain forking with types

--> Forking in blockchain refers to a divergence in the blockchain's protocol, leading

to the creation of a new chain. There are two primary types of forks:

Soft Fork:

A backward-compatible change to the protocol.

Old nodes can still process and validate new blocks.

Often used to introduce new features or improve efficiency.

No new cryptocurrency is created.

Hard Fork:

A significant change to the protocol that creates a new, incompatible chain.

Old nodes cannot validate new blocks.

Can lead to the creation of a new cryptocurrency.

Used for major upgrades or to resolve significant disagreements within the community.
Forks can occur due to various reasons, including scaling issues, security concerns,
or ideological differences among developers.

a) Write a short note on DES.

--> Data Encryption Standard (DES) is a symmetric-key block cipher that was widely used
for many years. It encrypts data in 64-bit blocks, using a 56-bit key. While it was once a
standard, DES is now considered insecure due to its relatively short key length.

DES operates in multiple rounds, involving complex operations like substitution and
permutation.

However, advancements in computing power have made it feasible to brute-force attacks,

rendering DES vulnerable. To address this, Triple DES (3DES) was developed, which
involves applying DES three times with different keys.

b) What are the advantages of smart contract? Explain any four.

--> Smart contracts offer several advantages:

Transparency: All contract terms and execution are visible on the blockchain, ensuring
transparency.

Security: Immutability of the blockchain guarantees that the contract cannot be altered
once deployed.

Efficiency: Automated execution reduces the need for intermediaries, streamlining

processes and saving time.

Trustlessness: Smart contracts operate on pre-defined rules, eliminating the need for trust
between parties.

c) What are the layers of blockchain?

--> A blockchain typically consists of the following layers:

Application Layer: This layer interacts with users and provides the services offered by the
blockchain. It includes decentralized applications (dApps) and user interfaces.

Network Layer: This layer handles the communication and consensus mechanisms
between nodes. It ensures that transactions are validated and added to the blockchain.
Consensus Layer: This layer determines the rules for validating transactions and adding
new blocks to the chain. Common consensus mechanisms include Proof of Work (PoW)
and Proof of Stake (PoS).

Data Layer: This layer stores the actual data, including transactions and smart contract
code. It ensures that the data is secure, immutable, and accessible to all nodes in the
network.

These layers work together to create a secure, transparent, and decentralized system
for recording and verifying information.

a) Write a short note on first Generation Blockchain.

--> First-generation blockchains, like Bitcoin, primarily focused on digital currencies

and decentralized peer-to-peer transactions. They introduced the concept of a
distributed ledger, ensuring transparency and security. Key features of first-
generation blockchains include:

1.Cryptographic Security: Strong cryptographic algorithms protect the network and

transactions.

2.Decentralization: No central authority, power is distributed among network nodes.

3.Immutability: Once data is recorded, it cannot be altered.

4.Transparency: All transactions are visible to everyone on the network.

However, first-generation blockchains were limited in their functionality, primarily

serving as digital ledgers for cryptocurrency transactions. They lacked the ability to
execute complex computations or support smart contracts.

b) Describe EVM with the help of neat diagram.

--> The Ethereum Virtual Machine (EVM) is a sandboxed environment that executes smart
contracts. It's a crucial component of the Ethereum blockchain, enabling the creation of
decentralized applications (dApps).

The EVM operates on a stack-based architecture, using a stack to store temporary data. It
also includes memory for temporary storage, storage for persistent data, and a call stack
for function calls.
When a smart contract is deployed to the Ethereum blockchain, its bytecode is executed by
the EVM. The EVM interprets the bytecode, performs calculations, and interacts with the
blockchain's state. This allows for the creation of self-executing contracts with predefined
rules and conditions.

a) Explain SHA-256 algorithm and its uses.

--> SHA-256 is a cryptographic hash function that takes an input (message) of any size
and produces a fixed-size 256-bit hash value. This hash value is a unique digital
fingerprint of the input data.

Key Properties of SHA-256:

Deterministic: The same input always produces the same hash output.

Collision Resistance: It's extremely difficult to find two different inputs that produce the
same hash.

Preimage Resistance: Given a hash, it's computationally infeasible to find the original input.

Uses of SHA-256:

Data Integrity: Verifying the integrity of files and data.

Digital Signatures: Verifying the authenticity of digital documents.

Blockchain Technology: Securing and verifying transactions.

Password Storage: Storing hash values instead of plain text passwords.

Random Number Generation: Generating pseudo-random numbers.

SHA-256 is widely used in various security applications due to its robustness and
cryptographic strength.

a) Define transaction and explain its structure.

--> A transaction is the basic unit of activity on a blockchain. It represents the transfer
of value (e.g., cryptocurrency) or the execution of a smart contract.

Structure of a Transaction:

Sender: The address of the account initiating the transaction.

Recipient: The address of the account receiving the value or the contract address.

Amount: The quantity of value being transferred.

Nonce: A unique number assigned to each transaction by the sender.

Gas Price: The fee paid per unit of gas used for computation.

Gas Limit: The maximum amount of gas allowed for the transaction.

Data: Optional data, often used for smart contract interactions.

Signature: A digital signature generated by the sender to authenticate the transaction.

Once a transaction is created, it's broadcasted to the network of nodes. These nodes
validate the transaction and add it to a block, which is then added to the blockchain. This
process ensures the security and transparency of the transaction.