Title: Blockchain Technology Exam Answers (Jan–Jul 2025 Semester)
Name: \[Your Name]
Reg. No.: \[Your Registration Number]
Course: \[Your Course Name]
Date: \[Submission Date]
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**SECTION A**
**Answer All Questions (2 marks x 10 = 20 marks; doubled = 40 marks)**
1. **What is a Merkle Tree in blockchain technology?**
A Merkle Tree is a data structure used in blockchain to efficiently and securely verify the integrity of
large datasets. Each leaf node is a hash of a data block, and non-leaf nodes are hashes of their child
nodes. It ensures data integrity and efficient verification (Narayanan et al., 2016).
2. **Define smart contracts.**
Smart contracts are self-executing contracts with the terms of the agreement directly written into
code. They automatically enforce and execute the terms once conditions are met, commonly used on
platforms like Ethereum (Szabo, 1997).
3. **What is the difference between public and private blockchains?**
Public blockchains are open to anyone and decentralized (e.g., Bitcoin), while private blockchains are
permissioned and controlled by a single organization or consortium (e.g., Hyperledger Fabric).
4. **List two consensus mechanisms.**
* Proof of Work (PoW)
* Proof of Stake (PoS)
5. **What is a cryptocurrency wallet?**
A cryptocurrency wallet is a digital tool that allows users to store, send, and receive digital currencies.
It holds public and private keys and interacts with the blockchain to facilitate transactions.
6. **Define the term 'block' in a blockchain.**
A block is a collection of data or transactions that are cryptographically linked to the previous block,
forming a chain. Each block contains a hash, timestamp, and transaction data.
7. **What is hashing in blockchain?**
Hashing is the process of converting data into a fixed-length cryptographic string, ensuring data
integrity. It is used to secure blocks and validate transactions.
8. **Mention two blockchain platforms.**
* Ethereum
* Hyperledger Fabric
9. **What is decentralization in blockchain?**
Decentralization refers to distributing control and decision-making from a central authority to a
distributed network of nodes.
10. **Name two real-world applications of blockchain.**
* Supply chain tracking
* Digital identity verification
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**SECTION B**
**Answer All Questions (5 marks x 4 = 20 marks; doubled = 40 marks)**
1. **Briefly explain the working of Bitcoin.**
Bitcoin is a decentralized digital currency using peer-to-peer technology. Transactions are validated by
network nodes through cryptography and recorded on a public ledger called the blockchain. Users
broadcast transactions, which are then verified by miners using Proof of Work. Once verified,
transactions are grouped into blocks and added to the blockchain.
2. **List any five real-world applications of blockchain.**
* **Supply Chain Management:** Improves traceability and transparency (IBM, 2021).
* **Healthcare:** Secures patient records (Mettler, 2016).
* **Voting Systems:** Enables secure and tamper-proof voting (Swan, 2015).
* **Banking and Finance:** Facilitates faster cross-border payments.
* **Digital Identity:** Provides secure, self-sovereign identity management.
3. **Explain the difference between Proof of Work and Proof of Stake.**
* **Proof of Work (PoW):** Requires solving complex puzzles to validate transactions. Energy-intensive
(used by Bitcoin).
* **Proof of Stake (PoS):** Validators are chosen based on their stake in the network. More energy-
efficient (used by Ethereum 2.0).
4. **What are the challenges in blockchain adoption?**
* **Scalability:** Limited transaction throughput.
* **Regulatory Uncertainty:** Lack of legal clarity.
* **Energy Consumption:** High for PoW systems.
* **Interoperability:** Difficulty integrating with existing systems.
* **Privacy Concerns:** Public blockchains may expose data.
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**SECTION C**
**Answer Any Two Questions (10 marks x 2 = 20 marks; doubled = 40 marks)**
1. **Describe the components and structure of a blockchain.**
Key components include:
* **Blocks:** Contain transaction data, previous block hash, and timestamp.
* **Nodes:** Computers that maintain the network.
* **Transactions:** Data exchanged between parties.
* **Hashing:** Cryptographic function to ensure data integrity.
* **Consensus Mechanisms:** Protocols for validating transactions.
The structure consists of a chain of blocks, each linked to the previous via cryptographic hashes,
ensuring tamper-resistance and chronological order (Narayanan et al., 2016).
2. **Explain the working of Ethereum blockchain.**
Ethereum is a decentralized platform enabling smart contracts and decentralized apps (dApps). It uses
accounts (EOAs and contract accounts), the Ethereum Virtual Machine (EVM) to execute smart
contracts, and a consensus mechanism (initially PoW, now PoS). Transactions involve sending Ether or
invoking contracts, and miners/validators confirm them by creating blocks added to the Ethereum
blockchain (Buterin, 2014).
3. **Explain the role of blockchain in cybersecurity.**
Blockchain enhances cybersecurity through:
* **Immutability:** Once recorded, data can’t be altered.
* **Decentralization:** Reduces single points of failure.
* **Cryptographic Security:** Uses public-key cryptography.
* **Auditability:** Transparent ledger ensures accountability.
* **Identity Management:** Secures user credentials and access control.
Blockchain provides a robust framework for secure data sharing and reduces the risk of data tampering
or cyber-attacks (Yaga et al., 2018).
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**SECTION D**
**Answer Any One Question (20 marks x 1 = 20 marks; doubled = 40 marks)**
1. **Describe in detail the role of blockchain in supply chain management.**
Blockchain enhances supply chain management by improving transparency, traceability, and
accountability:
* **Transparency:** All stakeholders have access to a shared ledger.
* **Traceability:** Each product's journey is recorded and immutable.
* **Real-Time Data Sharing:** Enables faster decision-making.
* **Fraud Reduction:** Prevents counterfeit goods.
* **Efficiency:** Reduces paperwork and streamlines audits.
For example, IBM Food Trust allows stakeholders to trace food products from farm to shelf, reducing
foodborne illnesses and waste (IBM, 2021). Blockchain ensures every transaction is time-stamped and
verified, fostering trust among participants.
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**References**
Buterin, V. (2014). *Ethereum White Paper: A next-generation smart contract and decentralized
application platform*. Available at:
[https://ethereum.org/en/whitepaper/](https://ethereum.org/en/whitepaper/)
IBM (2021). *IBM Blockchain for Supply Chain*. Available at: [https://www.ibm.com/blockchain/supply-
chain](https://www.ibm.com/blockchain/supply-chain)
Mettler, M. (2016). Blockchain technology in healthcare: The revolution starts here. *2016 IEEE 18th
International Conference on e-Health Networking, Applications and Services (Healthcom)*.
Narayanan, A., Bonneau, J., Felten, E., Miller, A. and Goldfeder, S. (2016). *Bitcoin and Cryptocurrency
Technologies*. Princeton University Press.
Swan, M. (2015). *Blockchain: Blueprint for a New Economy*. O'Reilly Media.
Szabo, N. (1997). The idea of smart contracts. Available at:
[https://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/
LOTwinterschool2006/szabo.best.vwh.net/smart.contracts.html](https://www.fon.hum.uva.nl/rob/
Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/
smart.contracts.html)
Yaga, D., Mell, P., Roby, N., & Scarfone, K. (2018). *Blockchain Technology Overview*. NIST.
[https://doi.org/10.6028/NIST.IR.8202](https://doi.org/10.6028/NIST.IR.8202)
