INTERVIEW QUESTIONS AND ANSWERS

Subject Name: Blockchain Technology Subject Code: KIT061

1. What is a Genesis Block?

The genesis block is the first block in the Blockchain which is also known as block 0.In
Blockchain, it is the only block that doesn’t refer to its previous block. It defines the
parameters of the Blockchain such as,level of difficulty, consensus mechanism etc. to
mine blocks.

2. What is the Merkel Tree?

Merkel Tree is a data structure that is used for verifying a block. It is in the form of a
binary tree containing cryptographic hashes of each block. A Merkle tree is structured
similarly to a binary tree where each leaf node is a hash of a block of transactional data
and each non-leaf node is a hash of its leaf node. The Merkel root or hash root is the
final hash root of all the transaction hashes. It encompasses all the transactions that are
underlying all the non-leaf nodes.

3. List down some of the extensively used cryptographic algorithms.

Here are a few popular algorithms:
SHA - 256
RSA (Rivest-Shamir-Adleman)
Triple DES
Ethash
Blowfish

4. Is it possible to modify the data once it is written in a block?

No, it’s not possible to do so. In case any modification is required, the organization
simply has to erase the information from all other blocks too. It is because of no other
reason than this, data must be given extreme care while using this approach.

5. What Is a Consensus Algorithm?

The method of gaining consensus on a change of data over the system or any
distributed network is known as a consensus algorithm. They are widely used in
blockchains because they enable the network of unknown nodes to reach consensus on
the data that is being stored or shared. Proof-of-Stake (PoS) and Proof-of-Work(PoW)
are the most popular consensus algorithms.

6. What are Smart Contracts and why are they useful?

 Smart Contracts are self-executable lines of code in blockchain. They define the rules
of how a transaction has to be processed between the parties under specific conditions.
It is basically a digital contract for a blockchain network that facilitates implementing
new functionalities using the blockchain allowing them to use in real world
applications.

7. How are blocks added to a Blockchain?

Blocks are added to the blockchain through the process of mining. When a transaction
is made, the corresponding block is created which needs to be first validated by more
than half (51% at least) of the nodes on the network. Once validated, the block is
broadcasted to the whole network and then added to the blockchain.

8. What is a 51% attack?

It is the situation where malicious miners/attackers are present in the majority of a
blockchain network i.e., more than 50%. They try to prevent new transactions from
gaining confirmations and are also capable of reversing transactions that are completed;
it means they could double-spend coins.

9. What Is Hashing in Blockchain?

The process of making an input item of any length represents an output item of a fixed
length is referred to as hashing in the blockchain. Take, for example, the use of
blockchain in cryptocurrencies, where transactions of varying lengths are run through a
given hashing algorithm and all produce a fixed-length performance.

10. Can you name some of the popular consensus algorithms?

The most popular consensus algorithms are:
PBFT (Practical Byzantine Fault Tolerance)
Proof-of-work
Proof-of-stake
Delegated proof-of-stake
Proof-of-elapsed time

11. What Is the Difference Between Proof-Of-Stake (Pos) And Proof-Of-Work

(Pow)?

The two most popular consensus algorithms, PoW, and PoS can be differed by their
operation. PoW consumes a lot of resources, while PoS does not. Other significant
differences include the need for a lot of computation power in PoW versus none or very
little computation power in PoS. When compared to PoW, PoS is both more cost-
effective and has a quicker completion time.
12. What Is Ethereum (ETH)?
Ethereum is an open-source software platform based on Blockchain technology that
enables developers to build and deploy decentralized applications (i.e., applications that
are not controlled by a single entity). You may construct a decentralized application in
which the participants are the ones who make the decisions
.
13. What is the difference between Bitcoin blockchain and Ethereum?

Although bitcoin and ether are both digital currencies, the Ethereum blockchain differs
significantly from the Bitcoin Blockchain. Bitcoin was created solely for the purpose of
being a digital currency. whereas Ethereum blockchain is a broader version of
blockchain technology. And it is a distributed ledger technology that organizations are
using to create new services, however, Ethereum is much more stable than bitcoin.

14. Give real-life use cases of blockchain.

Supply chain management: Blockchain can provide reduced cost and risk across the
supply chain. It can also provide increased supply chain transparency.
Healthcare: To keep a record of patient’s data. The ledger technology manages the
medicine supply chain, facilitates the secure transfer of patient medical records.
Digital voting: The token-based system created using blockchain technology will
ensure the system of ‘one unchangeable vote per person.
Real Estate: Ownership and title details are stored on the blockchain, thereby making
it easier to transfer ownership and trace ownership.
Media: Blockchain can maintain data integrity, allowing advertising agencies to target
the right customers, and musicians to receive proper royalties for original works.

15. What are the components of a blockchain architecture?

Node: User/computer within the blockchain architecture.
Hashing: It is a term used to refer to the process of converting any input values into a
fixed-size random string which is called a hash. Hashes are used to link each block by
one another, forming a chain.
Transaction: It is the smallest building block of the blockchain system.
Block: It is used for maintaining a set of transactions that are distributed to all the
nodes in the network.
Chain: The sequence of blocks.
Miners: Specific nodes that perform a block verification process before adding to the
blockchain structure.
Consensus Protocol: Set of rules to carry out blockchain operations.

16. What Is Cryptocurrency Mining and how Bitcoin mining works?

The word “crypto mining” refers to the process of obtaining cryptocurrencies by the use
of computers to solve cryptographic equations. Validating data blocks and applying
transaction records to a public record (ledger) is also a part of this method.
 Bitcoin mining is not just the process of putting new bitcoins into circulation, but it is
also an important part of the blockchain ledger’s upkeep and growth. It is carried out
with the assistance of highly advanced computers that solve extremely difficult
computational math problems.

17. Differentiate between Blockchain and Hyperledger.

● Blockchain is a decentralized technology of immutable records called blocks, which are
secured using cryptography. Hyperledger is a platform or an organization that allows
people to build private Blockchain.
● Using Blockchain you can build public and private Blockchain whereas with
Hyperledger you can only build private Blockchains.
● Blockchain is divided into public, private, and consortium Blockchains and
Hyperledger is a private Blockchain technology with access to Blockchain data and is
limited to predefined users, configurations, and programming.

18. How is a Blockchain distributed ledger different from a traditional ledger?

● A Blockchain distributed ledger is highly transparent as compared to a traditional
ledger.Blockchain distributed ledgers are irreversible.
● Information registered on a distributed ledger cannot be modified whereas on a
traditional ledger it is reversible.
● A distributed ledger is more secure. It uses cryptography and every transaction is
hashed and recorded whereas in traditional ledger security can be compromised.In a
distributed ledger, there is no central authority. It is a distributed system and the
participants hold the authority to maintain the sanity of the network and are responsible
for validating the transactions. Traditional ledgers are based on the concept of
centralized control, which controls all transactions.
● In a distributed ledger, identities are unknown and hidden whereas in a traditional
ledger identities of all participants have to be known before the transactions happen.

19. What is cryptography? What is its role in Blockchain?

Blockchain uses cryptography to secure users’ identities and ensure transactions are
done safely with a hash function.
Cryptography uses public and private keys in order to encrypt and decrypt data. In the
Blockchain network, a public key can be shared with all the Bitcoin users but a private
key (just like a password) is kept secret with the users.
 Blockchain uses SHA - 256 which is secure and provides a unique hash output for
every input. The basic feature of this algorithm is whatever input you pass, it will give
you a standard alphanumeric output of 64 characters. It is a one-way function from
which you can derive an encrypted value from the input, but not vice-versa.

20. What are the different types of Blockchain?

There are three different types of Blockchain - Public, Private, and Consortium
Blockchain.
Public Blockchain ledgers are visible to all the users on the internet and any user can
verify and add a block of transactions to the Blockchain. Examples, Bitcoin, and
Ethereum.
Private Blockchain ledgers are visible to users on the internet but only specific users
in the organization can verify and add transactions. It’s a permissioned blockchain,
although the information is available publicly, the controllers of the information are
within the organization and are predetermined. Example, Blockstack.
In Consortium Blockchain, the consensus process is controlled by only specific nodes.
However, ledgers are visible to all participants in the consortium Blockchain. Example,
Ripple.