CSA3006- Blockchain Technology

Module 1 - Introduction to Blockchain

2 Marks Questions

1. Define Blockchain.
2. What is a distributed ledger?
3. How is blockchain different from a traditional database?
4. What are the main categories of blockchain?
5. Define a public blockchain with an example.
6. What is a private blockchain?
7. What is a consortium blockchain?
8. What is a peer-to-peer (P2P) network in blockchain?
9. What is meant by decentralization in blockchain?
10. What is the role of consensus in blockchain?
11. Name two popular consensus mechanisms.
12. What is proof of work (PoW)?
13. How does BFT improve blockchain security?
14. How does PoET ensure fairness in consensus?
15. Name one blockchain network that uses PoET.
16. What are smart contracts?
17. What is an incentive mechanism in blockchain?
18. Define cryptographic hash functions.
19. What is a hash pointer?
20. How does a digital signature work?
21. What is the role of a public key in cryptography?
22. What is a private key?
23. How is a digital wallet different from an exchange?
24. What is a hot wallet?
25. What is a cold wallet?
26. What is local storage in blockchain?
27. How does an online wallet work?
28. Why is blockchain considered secure?

Five or ten marks questions

1. Explain the history and evolution of blockchain technology.

2. Discuss the differences between centralized, decentralized, and distributed
systems with examples.
3. Describe how a distributed ledger works and its advantages over traditional
ledgers.
4. Compare and contrast public, private, and consortium blockchains with their
usecases and examples.
5. Discuss the components of blockchain architecture, including nodes, blocks,
transactions, and ledgers. Describe how a peer-to-peer network functions in
blockchain.
6. What are consensus mechanisms? Explain Proof of Work (PoW) and Proof of
Stake (PoS) in detail. What are the different types of incentives used in
blockchain networks?
7. What is the role of cryptographic techniques in blockchain architecture? Explain
hash functions, digital signatures, and encryption.
8. Explain the structure of a blockchain block, including its components such as
block header, block body, and Merkle tree.
9. Discuss the impact of blockchain decentralization on traditional industries.
10. Explain the structure and working of a Merkle tree in blockchain with a diagram.
How does a Merkle tree ensure data integrity and verification in blockchain
transactions?
11. Describe the process of Merkle tree construction and how hashes are generated at
each level. What is the significance of Merkle root in a blockchain block, and how
is it used in verification?
12. Explain the importance of smart contracts and how they operate.
13. How does Proof of Work (PoW) secure the blockchain network?
14. Discuss various blockchain storage mechanisms such as local storage, hot storage,
and cold storage. Explain the working of online wallets and exchanges with their
pros and cons.
15. How do public and private keys work together to enable secure transactions?
Explain cryptographic hash functions and their significance in blockchain.
16. Describe the role of hash pointers in securing blockchain data structures. What are
digital signatures, and how do they ensure transaction security?
17. Compare and contrast different blockchain wallet types. Explain the working and
security of cold storage wallets.
18. How does blockchain ensure immutability and security in data storage? Discuss
the key challenges faced in blockchain adoption.
19. What are the potential applications of blockchain technology beyond
cryptocurrencies? Explain the concept of decentralized applications (DApps) and
their benefits.
20. How can blockchain be integrated with existing financial systems? Analyze the
future trends and potential advancements in blockchain technology.
21. Explain the Proof of Concept (PoC) process in blockchain development and why
it is essential for adoption.
22. Discuss the Byzantine Fault Tolerance (BFT) mechanism and its importance in
distributed systems. Compare and contrast Proof of Work (PoW), Proof of Stake
(PoS), and Byzantine Fault Tolerance (BFT).
 23. What are the advantages and disadvantages of Proof of Burn (PoB) compared to
PoS? Explain the working mechanism of Proof of Authority (PoA) and its real-
world use cases.
24. How does Proof of Elapsed Time (PoET) work, and why is it considered more
energy-efficient than PoW? Discuss the role of validators in PoA and how they
differ from miners in PoW.
25. Compare the security of PoET with other consensus mechanisms like PoW and
PoS. Analyze the impact of PBFT on blockchain scalability and security.
26. Explain the key differences between PoB, PoA, and PoET in terms of consensus
efficiency. How does PoC help businesses decide whether to implement
blockchain technology?
27. Explain how BFT can be applied to blockchain networks to prevent attacks and
system failures. What are the limitations of PoA, and how can it be improved for
better decentralization?
28. Compare various blockchain consensus mechanisms and discuss which is the
most efficient for enterprise applications.

MODULE 2 – BITCOIN

1. What is a Bitcoin transaction?

2. Explain the concept of inputs and outputs in Bitcoin transactions.
3. What is a UTXO (Unspent Transaction Output)?
4. How does a Bitcoin wallet sign a transaction?
5. What is a Bitcoin Script?
6. How do Bitcoin scripts enhance transaction security?
7. What is a multi-signature (multisig) transaction?
8. Give two applications of Bitcoin scripts.
9. What is OP_CHECKSIG in Bitcoin scripting?
10. What is a Bitcoin block?
11. What information is stored in a Bitcoin block?
12. What is the purpose of the Merkle tree in a Bitcoin block?
13. Explain the concept of block height in Bitcoin.
14. How does the Bitcoin network propagate transactions?
15. What is the role of nodes in the Bitcoin network?
16. What is the block propagation mechanism used in Bitcoin?
17. What is a full node in the Bitcoin network?
18. Mention two limitations of Bitcoin.
19. What is the Bitcoin block size limit?
20. Name two proposed improvements to Bitcoin’s scalability.
Bitcoin Mining
21. What is the primary task of Bitcoin miners?
22. How does Proof-of-Work (PoW) secure the Bitcoin network?
 23. What is the Bitcoin mining difficulty?
24. How often is Bitcoin’s mining difficulty adjusted?
25. What is the function of the nonce in Bitcoin mining?
26. What is an ASIC miner?
27. Why are GPUs less efficient than ASICs for Bitcoin mining?
28. How does Bitcoin mining consume energy?
29. What is a mining pool?
30. Why do miners prefer mining pools over solo mining?

10 MARKS QUESTIONS
1. Explain the structure of a Bitcoin transaction with a detailed example.
2. Explain the working of Bitcoin in detail with a well-labeled diagram. Additionally,
discuss its key components, including transactions, mining, and consensus mechanisms.
Highlight the role of cryptographic techniques in ensuring security and decentralization.
3. How does the Unspent Transaction Output (UTXO) model work in Bitcoin? Compare it
with the account-based model used in Ethereum.
4. Describe the process of signing a Bitcoin transaction and how cryptographic keys ensure
security.
5. What is Bitcoin Script, and how does it work? Provide examples of simple Bitcoin
scripts.
6. Explain the role of OP_CODES in Bitcoin scripting with suitable examples.
7. Compare and contrast Pay-to-PubKey-Hash (P2PKH) and Pay-to-Script-Hash (P2SH)
transactions in Bitcoin.
8. Discuss the practical applications of Bitcoin scripts in implementing advanced transaction
types such as time-lock and multi-signature transactions.
9. How do Bitcoin smart contracts differ from Ethereum smart contracts? Explain with use
cases.
10. Explain the structure of a Bitcoin block, including its key components and how they
contribute to security and integrity.
11. What is the significance of the Merkle Tree in Bitcoin? How does it improve transaction
verification?
12. Describe the various types of nodes in the Bitcoin network and their roles in maintaining
network security and decentralization.
13. How does Bitcoin achieve consensus in a decentralized network? Explain the importance
of Proof-of-Work (PoW).
14. What are the major scalability issues in Bitcoin, and how do solutions like the Lightning
Network help address them?
15. Discuss the limitations of Bitcoin in terms of transaction speed, fees, and energy
consumption. What improvements have been proposed to overcome these issues?
16. What are hard forks and soft forks in Bitcoin? Explain with examples of past Bitcoin
forks.
17. Explain the role of Bitcoin miners in transaction validation and network security.
18. Describe the process of Bitcoin mining and how miners solve the Proof-of-Work (PoW)
puzzle.
19. What is the mining difficulty in Bitcoin, and how is it adjusted over time?
20. Discuss the evolution of Bitcoin mining hardware from CPUs to ASICs. How has it
impacted mining efficiency?
21. Compare and contrast ASIC miners and GPU miners in terms of performance, power
consumption, and profitability.
22. How does hardware optimization and cooling technology impact Bitcoin mining
profitability?
23. Analyze the environmental impact of Bitcoin mining and discuss possible solutions to
reduce its carbon footprint.
24. Why does Bitcoin mining consume so much energy? Compare its energy usage with
traditional financial systems.
25. What are the benefits and drawbac What are Bitcoin mining pools, and how do they
work? Explain their significance in reducing mining difficulty for individuals.
26. What are the risks associated with mining pool centralization, and how can they be
mitigated?mention the risks of using renewable energy sources for Bitcoin mining?
27. Discuss the concept of block rewards and transaction fees as mining incentives. How do
they change over time?
28. Explain different Bitcoin mining strategies, including solo mining vs. pool mining and
strategic electricity usage.
29. What is the impact of Bitcoin halving events on mining profitability and network
security?