Subject – Blockchain Question Bank for Internal Assessment

(IA) – 02

Two Marks Questions:

Q. 1. What is Private Blockchain? Explain it's key characteristics.?

Ans:
• A private blockchain is a type of blockchain that is restricted to a specific group
of participants. Unlike a public blockchain, which is open to anyone,
• a private blockchain is controlled by a single organization or a group, with access
only available to invited members.

Key Characteristics:
1. Permissioned Access: Only approved participants can join the network, making
it more secure and controlled. You need permission to participate.
2. Centralized Control: There is usually a single organization or a group that
manages the network and decides who can join and what transactions are
allowed.
3. Faster Transactions: Because fewer participants are involved and there’s no
need for a global consensus, transactions are usually faster and more efficient.
4. Privacy: Information on a private blockchain is accessible only to members of
the network, making it suitable for business use where data confidentiality is
important.
5. Governance: The rules for the network are set by the managing organization,
which can modify or update the blockchain as needed.
private blockchains are often used in industries like finance, supply chain, and
healthcare, where control, privacy, and efficiency are essential.
2. Write a short note on Ethereum Virtual Machine (EVM).?
Ans:

The Ethereum Virtual Machine (EVM) is the runtime environment for smart
contracts on the Ethereum blockchain.
• It serves as a decentralized computing engine, executing scripts using a peer-to-
peer network of nodes.
• he EVM supports programming languages like Solidity and Vyper, converting
smart contract code into low-level bytecode that the EVM can execute.

Transactions and Gas:

• Every action performed on the EVM costs "gas," which is a unit that measures
the computational work required to execute operations.

State Management:
• The EVM maintains a global state of all smart contracts and accounts.
In simple terms, the Ethereum Virtual Machine is a powerful, decentralized engine
that executes smart contracts and manages the state of the Ethereum blockchain. It
allows developers to build applications that run securely and automatically without the
need for intermediaries,
Q. 3. Write a short note on Mist Wallet?
Ans: Mist Wallet is a software wallet designed for the Ethereum blockchain.
• Mist Wallet is specifically built for storing, sending, and receiving Ethereum
(ETH) and tokens created on the Ethereum network (like ERC-20 tokens).

Key Features

• Node Software:
o Mist Wallet runs as a full node, meaning it downloads and stores the entire
Ethereum blockchain on your device.

Smart Contract Interaction:

• Users can interact with smart contracts directly through the Mist interface. This
makes it easy to use decentralized applications (dApps)

Integrated Browser:
• Mist Wallet includes a built-in browser for accessing dApps,

Mist Wallet was an Ethereum wallet that allowed users to store and manage their ETH
and tokens while interacting with dApps
It provided enhanced security as a full node wallet

Q. 4. What is Public Blockchain? Explain it's key characteristics?

Ans: A public blockchain is a type of blockchain that is open and accessible to anyone
who wants to participate. This means that anyone can join the network, view the
transactions, and even contribute to the blockchain by validating transactions.

Key Characteristics of Public Blockchains

1. Decentralization:
o Public blockchains are decentralized, meaning they are not controlled by a
single entity or organization.
Transparency:
All transactions on a public blockchain are recorded on a public ledger that anyone can
access. This transparency allows anyone to verify transactions,
Security:
• Public blockchains use cryptographic techniques to secure the data and
transactions. Each block is linked to the previous one through a cryptographic
hash,
Immutability:
• Once data is recorded on a public blockchain, it cannot be changed or deleted.
This immutability ensures that transaction history remains intact,
Q. 5. Discuss various types of Test Networks used in Ethereum?
Ans: Test networks, or testnets, are crucial in the Ethereum ecosystem as they allow
developers to test their applications and smart contracts in an environment
Ropsten
• Description: Ropsten is a proof-of-work (PoW) testnet that closely resembles
the Ethereum mainnet.

Characteristics: Realistic Testing, Vulnerable to Spam:

Rinkeby

• Description: Rinkeby is a proof-of-authority (PoA) testnet that is maintained by

a set of trusted validators.

Characteristics: Stable and Fast , Consensus Mechanism

Kovan

• Description: Kovan is another proof-of-authority testnet that is used primarily

by the Parity Ethereum client.

• Characteristics: Fast Block Times, table Environment

Goerli

• Description: Goerli is a cross-client proof-of-authority testnet that supports

multiple Ethereum clients.

Sepolia

• Description: Sepolia is a newer testnet that uses proof-of-stake (PoS) consensus.

Characteristics:

• PoS Testing: It is designed to test Ethereum’s transition to PoS, making it

relevant for developers working on applications that will run on the Ethereum
2.0 network.
• Less Network Activity: Sepolia may have less activity than other testnets,
allowing for focused testing
Q. 6. Compare Bitcoin and Ethereum.?

Ans:
Q. 7. Explain any two types of Smart Contracts?

ANS:

1) Smart contracts are self-executing agreements with terms directly written into
code, running on a blockchain. They automatically enforce and execute contract
conditions without intermediaries

2) Following are the categories of smart contracts

• SMART LEGAL CONTRACTS Smart legal contracts in blockchain are

digital agreements that combine traditional legal contract terms with smart
contract code
• These contracts are legally binding and. aim to reduce the need for manual
intervention and increase efficiency in legal transactions.

Decentralized Autonomous Organizations (DAO)

• Decentralized Autonomous Organizations (DAOs) in blockchain are
organizations run by smart contracts, where decision-making is distributed
among members rather than centralized leadership.
• Members use governance tokens to vote on proposals, manage funds, and shape
the organization’s operations.
• The blockchain ensures transparency and automation of rules, making DAOs
self-governing and resistant to censorship.
Q. 8. Write a short note on Metamask Wallet.
Ans:
• MetaMask is a popular cryptocurrency wallet and gateway to blockchain
applications, especially on the Ethereum network
• It allows users to store, send, and receive digital assets like Ether (ETH) and
tokens
• MetaMask also enables users to interact with decentralized applications
(dApps) directly from their web browser, making it easy to access services such
as decentralized finance (DeFi) platforms, games, and NFTs.
• For example, if you want to buy an NFT on a marketplace like OpenSea,
MetaMask can connect your wallet to the platform, allowing you to make the
purchase seamlessly.

Features:

1. User-Friendly Interface: Easy to set up and use, even for beginners.

2. Secure Storage: Stores private keys locally, providing a secure way to manage
digital assets.
3. Access to dApps: Enables users to connect to decentralized applications directly
from the browser.

Q. 9. Explain State Machine Replication (SMR).

• Ans: State Machine Replication (SMR) is a fundamental concept used in

blockchain to ensure consistency and reliability across distributed systems.
• SMR is the process of replicating a state machine (a system that transitions
through a series of states based on inputs) across multiple nodes in a network.
• Each node maintains a copy of the state machine and processes the same
sequence of inputs
 Q. 10. Explain various types of Accounts in Ethereum?

Ans: Externally Owned Accounts (EOAs)

• Definition: Accounts controlled by private keys. They represent users or

entities.
• Characteristics:
• Control: Owned by individuals or entities with a private key. Only the holder of
the key can access and control the account.
• Balance: Hold Ether (ETH), the native cryptocurrency of Ethereum, which can
be used for transactions and smart contract interactions.
• Transactions: Can send ETH and initiate transactions to smart contracts.

Contract Accounts

• Definition: Accounts that are associated with smart contracts. They execute
predefined code when triggered by transactions.

Control: Not directly controlled by a private key. Instead, they are governed by the
code written in the smart contract.
Balance: Can also hold ETH and may have a balance depending on transactions
received.

• Functionality: Execute specific functions defined in the smart contract. They

can respond to transactions and interact with other contracts

EOAs are like individual bank accounts controlled by a person, while contract accounts
are like automated programs that handle specific tasks and rules on the Ethereum
blockchain
Q. 11. Compare Ethereum and Hyperledger Fabric?

Ans:
Q. 12. List and explain various types of nodes used in Ethereum.?

Ans: In Ethereum, different types of nodes perform various tasks to maintain the
blockchain network. Here are the main types of nodes

Full Node:

• Stores the entire blockchain data and validates all transactions.

• Participates in verifying new blocks and transactions, ensuring the network's
integrity.
• Helps in keeping the blockchain decentralized.

Light Node:

• Stores only the block headers, not the full blockchain data.
• Verifies transactions using minimal data, making it faster and using less storage.
• Ideal for devices with limited storage and processing power.

Miner/Validator Node:

• These nodes create new blocks by solving complex puzzles (Proof of Work) or
validating transactions (Proof of Stake).
• They help secure the network and earn rewards for processing transactions.

Archive Node:

• Similar to a full node, but also stores historical blockchain data, including past
states.
• Used for deep data analysis, historical lookups, and advanced debugging.

Each node type has different responsibilities, contributing to the Ethereum network's
security, efficiency, and scalability.
 Five Marks Questions
13. Explain PAXOS consensus algorithm for a private blockchain.

Ans:
Q. 14. Describe the concept of Hyperledger and list out its frameworks and tools?

ANS:
Hyperledger Frameworks:

1. Hyperledger Fabric:

• A flexible blockchain framework that allows businesses to create private and

permissioned blockchains.
• Ideal for enterprise use where only specific users can participate.

2. Hyperledger Sawtooth:

• Designed to run versatile blockchain networks.

• Supports various consensus mechanisms and allows for smart contracts in multiple
programming languages.

Hyperledger Iroha:

• Aimed at building simple blockchain applications.

• Features an easy-to-use design, useful for digital assets and identity
management.

Hyperledger Besu:

• A framework for running Ethereum-based networks.

• Can be used for both public and private blockchain applications.

Hyperledger Burrow:

• Focuses on running smart contracts using the Ethereum Virtual Machine (EVM).
• Ideal for systems that need compatibility with Ethereum smart contracts.

TOOLS:

• Hyperledger Caliper
• Hyperledger Cello
• Hyperledger Explorer
• Hyperledger Aries
• Hyperledger Quilt
• Hyperledger Transact
15. Explain Hyperledger Fabric architecture with the help of diagram.

Ans:

Hyperledger Fabric is a blockchain framework designed for building permissioned

networks, where all participants are known to each other. It’s particularly useful for
business use cases.

Peers:

• These are the computers (nodes) in the network. Peers maintain the shared ledger
and execute smart contracts, called chaincode, to validate transactions.
• There are different types of peers:
o Endorsing Peers: Run the chaincode to endorse a transaction.
o Committing Peers: Commit the validated transactions to the ledger.

Orderer:

• This component is responsible for arranging the transactions in the correct order
and creating blocks to add to the blockchain.
• It ensures the transactions are added in a sequential and consistent manner across
all peers.

Ledger: The ledger is the shared, tamper-proof record of all the transactions.

Chaincode (Smart Contracts):

• Chaincode is the business logic or application code that runs on the network. It
defines the rules for transactions.

Certificate Authority (CA):

• The CA issues digital certificates to authenticate the identities of participants in

the network.
• This ensures that only authorized participants can access the network.
Q. 16. Write a program in solidity to check whether a number is prime or not?

Ans:

// SPDX-License-Identifier: MIT

pragma solidity ^0.8.0;

contract PrimeCheck {

// Function to check if a number is prime

function isPrime(uint256 number) public pure returns (bool) {

if (number <= 1) {

return false; // 0 and 1 are not prime numbers

for (uint256 i = 2; i * i <= number; i++) {

if (number % i == 0) {

return false; // If divisible by any number other than 1 and itself, not prime

return true; // If no divisors found, it's a prime number

}
Q. 17. Explain components of Ethereum blockchain architecture in detail

Ans:

The Ethereum blockchain architecture consists of several key components that work
together to enable decentralized applications (dApps), smart contracts, and secure
transactions

Nodes

• Nodes are computers that run the Ethereum software and maintain the
blockchain network.
• Each node keeps a copy of the entire blockchain and validates transactions.

Ethereum Virtual Machine (EVM)

• The EVM is a runtime environment that executes smart contracts.

• It ensures that all nodes in the network execute smart contract code in the same
way, making the blockchain trustworthy.

Smart Contracts

• Smart contracts are self-executing programs with rules written in code.

• Once deployed, they run automatically when certain conditions are met.

Accounts

• There are two types of accounts in Ethereum:

o Externally Owned Accounts (EOAs): Controlled by users with private
keys, can send transactions.
o Contract Accounts: Represent smart contracts, execute code when
triggered by a transaction
Transactions

• Transactions are instructions that move data or value from one account to
another.

Consensus Mechanism

• Ethereum uses a consensus mechanism to agree on the state of the blockchain.

Blocks

• A block is a group of transactions that is added to the blockchain.

Decentralized Applications (dApps)

• dApps are applications that run on the Ethereum blockchain instead of a single
server.