CS-802-A Block Chain Technologies - May 2022 Question Paper

Under each question, How to answer lists the points an answer should cover, outlined by CampusPrep from the syllabus. Check the details against your textbook.

1. 7 Marks
   aDefine the three major characteristics of money that Bitcoin possesses.
   How to answer

   • Define money functions: medium of exchange, store of value, unit of account
   • Show how Bitcoin satisfies each characteristic
   • Mention divisibility, scarcity, portability aspects
2. 7 Marks
   bDifferentiate between public versus private block chain.
   How to answer

   • Define public blockchain with open participation
   • Define private blockchain with restricted access
   • Compare on access, consensus, decentralization, use-case
3. 7 Marks
   aDescribe four components of block chain technology.
   How to answer

   • List four components: distributed ledger, cryptography, consensus, smart contracts / P2P network
   • Brief role of each component
   • How they combine in blockchain technology
4. 7 Marks
   bWhat is a Hash function? Write down the properties of a Hash function.
   How to answer

   • Define hash function and one-way mapping
   • List properties: determinism, pre-image resistance, collision resistance, avalanche
   • Give example e.g. SHA-256
5. 7 Marks
   aDiscuss the working of a digital signature.
   How to answer

   • Define digital signature using public-key cryptography and hash
   • Steps: hashing, signing with private key, verification with public key
   • Mention authentication, integrity, non-repudiation
6. 7 Marks
   bDiscuss whether a public block chain requires its own native cryptocurrency to provide incentives to its validator network.
   How to answer

   • Explain validator incentives and Sybil resistance need
   • Role of native cryptocurrency: block rewards, fees
   • Discuss alternatives and conclusion for public chains
7. 7 Marks
   aDescribe the process of PoW.
   How to answer

   • Define Proof of Work and puzzle based on hash target
   • Steps: transaction collection, nonce search, broadcast and verification
   • Mention difficulty adjustment and security
8. 7 Marks
   bDiscuss why an organization might decide to implement a block chain solution?
   How to answer

   • Reasons: trust, disintermediation, transparency, traceability
   • Efficiency, security and shared ledger benefits
   • When blockchain fits vs traditional database
9. 7 Marks
   aIdentify potential issues that companies face with smart contracts in the supply chain.
   How to answer

   • Smart contract issues: bugs, immutability, oracle dependency
   • Supply chain specific: interoperability, privacy, scalability
   • Legal enforceability and upgrade challenges
10. 7 Marks
    bWhat are the design issues for permissioned block chain?
    How to answer

    • Define permissioned chain and known validators
    • Design issues: membership, consensus choice, privacy, governance
    • Scalability, throughput and access control trade-offs
11. 7 Marks
    aExplain Lamport-Shostak-Pease BFT algorithm.
    How to answer

    • State Byzantine Generals Problem and 3m+1 requirement
    • Explain recursive OM(m) message exchange rounds
    • Mention conclusion on agreement with faulty nodes
12. 7 Marks
    bGive a brief note on distributed consensus in closed environment.
    How to answer

    • Define closed / permissioned environment consensus
    • Examples: PBFT, Raft, Paxos for known nodes
    • Advantages: finality, speed vs trust assumptions
13. 7 Marks
    aHow block chain is revolutionizing the traditional business network? Explain with example.
    How to answer

    • Contrast traditional centralized business network
    • Blockchain features: shared ledger, immutability, smart contracts
    • Example e.g. supply chain / trade finance transformation
14. 7 Marks
    bWhy Know Your Customer (KYC) is important in financial area?
    How to answer

    • Define KYC and regulatory requirement
    • Role in AML, fraud prevention, identity verification
    • How blockchain can streamline KYC sharing
15. 14 Marks
    Write short notes on the following.

    1. i)Hyperledger fabric
    2. ii)Ripple and Corda
    3. iii)Cross border payments
    How to answer

    • Hyperledger Fabric: permissioned architecture, channels, chaincode
    • Ripple and Corda: consensus, payment / financial focus
    • Cross-border payments: speed, cost, settlement benefits