Here is the list of questions organized by unit, without part names or topic names:

Unit 1: Blockchain

1. Explain the growth of blockchain technology and its relationship with

distributed systems.

Blockchain is a decentralized, digital ledger that records transactions across multiple

computers in a way that ensures security, transparency, and immutability. Each record,
called a "block," is linked to the previous one, forming a "chain."

How Blockchain Grew Over Time

 Start with Bitcoin (2008): Blockchain was created to support Bitcoin, letting people
send money directly without banks.
 New Cryptocurrencies: Later, Ethereum and others introduced new features like
"smart contracts," which can automatically enforce agreements.
 More Uses: People started using blockchain for things like tracking products in a
supply chain, keeping medical records, or voting online.
 Businesses: Companies use private blockchains for secure and faster data handling.
 Improvements: Efforts are ongoing to make blockchain faster and let different
blockchains work together.

A distributed system is a network of interconnected computers that work together to

achieve a common goal. These systems share resources and data and do not rely on a
single central authority.

Relationship Between Blockchain and Distributed Systems

 Decentralization: Like distributed systems, blockchain removes the need for a

central authority. Multiple computers (nodes) work together to maintain the system.
 Consensus Mechanisms: Blockchain uses algorithms like Proof of Work (PoW) or
Proof of Stake (PoS) to ensure all nodes agree on the recorded data.
 Fault Tolerance: Distributed systems and blockchain remain functional even if some
nodes fail, ensuring reliability.
 Security: Blockchain adds cryptographic security to distributed systems, ensuring
that data cannot be altered once it is recorded.
 Challenges: Both systems face similar issues, such as handling large amounts of data,
but blockchain uses innovative solutions like sharding to overcome them.
2. Describe the history of blockchain and Bitcoin. How did they evolve to their
current state?

1. Early Ideas of Blockchain (1991-2008)

 In 1991, scientists Haber and Stornetta created a way to secure digital files by linking
them in a chain using cryptography.
 In 2008, Satoshi Nakamoto took this idea and combined it with other technologies to
invent Bitcoin and the first blockchain. He explained the system in a paper called
"Bitcoin: A Peer-to-Peer Electronic Cash System."

2. Bitcoin is Born (2009) :- In 2009, Bitcoin was launched as the first cryptocurrency. It
used blockchain to record transactions securely without needing banks.

 The first block of Bitcoin, called the Genesis Block, was created on January 3, 2009.

3. Bitcoin’s Early Growth (2010-2013)

 2010: Bitcoin got its first real-world value when 10,000 Bitcoins were used to buy two
pizzas.
 2011: Other cryptocurrencies like Litecoin were created, inspired by Bitcoin.
 2013: Bitcoin became popular, reaching $1,000 in value and gaining attention worldwide.

4. Ethereum Brings New Features (2015)

 In 2015, Ethereum was launched. Unlike Bitcoin, Ethereum added smart contracts—
programs that automatically do things like payments when specific conditions are met.
 This made blockchain useful for more than just money, such as running apps and tracking
goods.

5. Bitcoin Becomes Famous (2017-2020)

 2017: Bitcoin’s price hit $20,000, and people worldwide started noticing
cryptocurrencies.
 Problems: The system became slow and expensive as more people used it. Developers
worked on faster ways to process transactions (e.g., the Lightning Network).
 2020: Blockchain started being used in finance without banks (DeFi), allowing people to
lend, borrow, or trade directly.

6. Today (2021-Present) :- Big Companies Join In: Companies like Tesla and PayPal
started using Bitcoin and blockchain.

 New Trends: Digital art and collectibles called NFTs became popular, all powered by
blockchain.
 Improved Technology: Newer blockchains focus on being faster, cheaper, and better for
the environment.
 Governments: Countries began exploring digital money (CBDCs) based on blockchain.

3. What is the CAP theorem, and how does it apply to blockchain systems?

The CAP theorem, introduced by Eric Brewer, states that a distributed system cannot
simultaneously provide all three of the following guarantees:

1. Consistency (C): All nodes in the system see the same data at the same time.
2. Availability (A): Every request to the system receives a response, even if some parts of
the system fail.
3. Partition Tolerance (P): The system continues to function even if there is a
communication breakdown between parts of the network.

How CAP Theorem Applies to Blockchain

Blockchain is a distributed system, and here’s how it fits the CAP theorem:

1. Partition Tolerance:
Blockchain must handle network issues (e.g., nodes losing connection). It is designed to
work even if some nodes can't communicate. This is non-negotiable for a global,
decentralized network.
2. Consistency vs. Availability:
Blockchain prioritizes Consistency over Availability:
o Transactions must be verified and agreed upon by all nodes (Consistency).
o Some delays may occur, meaning not all requests are processed instantly
(Availability is sacrificed).

Example of CAP Theorem in Blockchain :- Scenario: Sending Bitcoin during a network

slowdown:

 Partition Tolerance: The blockchain continues to operate, even if some nodes

temporarily lose connection.
 Consistency: All nodes eventually agree on the transaction details after confirmations.
 Availability: If there’s heavy traffic or network failure, your transaction might take
longer to confirm, showing a sacrifice in Availability.

In this case, Blockchain provides Partition Tolerance and Consistency but sacrifices
Availability. Simple Example: CAP Theorem Trade-offs :- Imagine an online shopping
website:

1. Consistency: Every user sees the same product prices.

2. Availability: The site is always online and responds to user actions.
3. Partition Tolerance: The site still works even if some servers lose connection.

If the website suffers a server failure: If it prioritizes Consistency and Partition Tolerance,
some users may have to wait for a response (Availability is sacrificed). If it prioritizes
Availability and Partition Tolerance, some users might see outdated prices (Consistency is
sacrificed).

4. Define decentralization in blockchain. Discuss the methods and routes to

achieving decentralization.
Decentralization in blockchain means that no single person, company, or organization has
control over the system. Instead, the control and decision-making are spread across many
participants in the network. This makes the system more transparent, secure, and resistant
to censorship, as no one can easily change or manipulate the data.

There are several ways blockchain achieves decentralization:

1. Consensus Mechanisms:
o Blockchain uses special rules, called consensus mechanisms, to make sure all
participants agree on the state of the blockchain (e.g., which transactions are
valid).
o Popular methods include:
 Proof of Work (PoW): Miners solve complex problems to add
transactions to the blockchain (like in Bitcoin).
 Proof of Stake (PoS): Validators are selected based on how much
cryptocurrency they hold (like in Ethereum 2.0).
 Delegated Proof of Stake (DPoS): A group of trusted validators is
selected by other network participants (used in systems like EOS).
2. Distributed Ledger:
o In blockchain, there is a distributed ledger (a shared database) where all
participants keep a copy of the data. This means no single entity can control or
change the data. If someone tries to change a transaction, other participants will
notice and reject it.
3. Peer-to-Peer Network:
o Blockchain operates on a peer-to-peer (P2P) network, where each participant
(node) has equal rights. Nodes communicate directly with each other, without
relying on a central server. This helps to remove points of failure and makes the
system more robust.
4. Smart Contracts:
o Smart contracts are self-executing contracts that automatically perform actions
based on predefined rules. They don’t need intermediaries like lawyers or banks,
so they help keep the system decentralized. These are used in decentralized apps
(DApps) that run on blockchain networks.
5. Tokenization:
o Blockchain networks use tokens (digital assets) that can represent things like
ownership, voting rights, or access to services. This helps to give everyone a
voice and makes decision-making decentralized, as token holders can vote on
important decisions.
5. What is the consensus problem in blockchain? Why is solving it critical?
Classify blockchain consensus algorithms and explain any one in detail.

A consensus algorithm is a process used in computer systems and networks to help all
the connected computers (nodes) agree on a shared version of data. It ensures that the
data is reliable and consistent, even if some computers fail or try to act dishonestly.

How Does It Work?

1. Nodes (computers) communicate and propose updates to the data.

2. The algorithm ensures that at least a majority of nodes (like 51%) agree on the update.
3. Once there’s agreement, the update is added, and all nodes get the same updated version.

Even if some nodes are offline or some data gets lost, the consensus algorithm ensures
that the system works smoothly.

Types of Consensus Algorithms

1. Proof of Work (PoW):

o Computers compete to solve a complex puzzle.
o The first to solve it gets to add a new block and earns rewards.
o Used in Bitcoin but requires a lot of energy.
2. Proof of Stake (PoS):
o Instead of solving puzzles, participants lock up some coins as a "stake."
o Participants are selected to validate blocks based on the size of their stake.
o Consumes less energy than PoW but can favor wealthy participants.
3. Delegated Proof of Stake (DPoS):
o A voting system where participants choose trusted validators to confirm
transactions.
o More efficient than PoS and PoW.
4. Proof of Authority (PoA):
o Validators are trusted individuals or organizations with known identities.
o Suitable for private networks like supply chains.
5. Proof of Burn (PoB):
o Participants "burn" or destroy coins to prove their commitment to the system.
o The more coins burned, the higher the chance to validate transactions.
6. Hybrid PoW/PoS:
o Combines PoW for creating blocks and PoS for confirming them.

Why is a Consensus Algorithm Important?

1. Reliability: Keeps the system running even if some computers are not working.
2. Security: Protects against bad actors trying to manipulate the system.
 3. Decentralization: Ensures no single participant has too much control.

6. Provide an overview of Bitcoin.

Bitcoin is a decentralized digital currency that allows people to send and receive money
online without relying on banks or governments. It uses blockchain technology to securely
record transactions, ensuring transparency and preventing fraud. Bitcoin has a fixed supply of
21 million coins, making it rare and valuable.

How Does Bitcoin Work?

1. Sending Money
To send Bitcoin, you need a wallet. Your wallet has two keys:
o A public key: Like your account number, used to receive Bitcoin.
o A private key: Like your password, used to send Bitcoin.
2. Mining
Computers called miners check and confirm transactions. They solve math problems,
and if they succeed, they add a group of transactions (a block) to the blockchain. Miners
are rewarded with new Bitcoin for their work.
3. Blockchain
The blockchain is like a chain of blocks, where each block contains transaction details.
This makes it easy to track and verify every transaction.

Main Features of Bitcoin

1. No Central Authority
Bitcoin is not controlled by any government or bank. It works on a network of computers
around the world.
2. Blockchain Technology
All transactions are recorded in a public digital book called a blockchain. This keeps
everything transparent and secure.
3. Limited Supply
Only 21 million Bitcoins can ever exist. This makes it rare, like gold.
4. Secure
Bitcoin uses advanced computer techniques to make transactions safe and almost
impossible to hack.
5. Fast and Global
You can send Bitcoin to anyone, anywhere in the world, quickly and without high fees.

Challenges of Bitcoin

1. Price Fluctuates: The value of Bitcoin goes up and down quickly.

2. High Energy Use: Mining Bitcoin takes a lot of electricity.
3. Not Widely Used Yet: Some places don’t accept Bitcoin as payment.
7. What role do cryptographic keys play in Bitcoin transactions?

Cryptographic keys are tools used to secure and authorize Bitcoin

transactions. They ensure that only the rightful owner can send Bitcoin and
that the transaction is valid and secure. There are two types of keys: public
key and private key.

1. Public Key (Like an Address):

o Used to receive Bitcoin.
o You can share it with anyone.
o Think of it as your bank account number.
2. Private Key (Like a Digital Signature):
o Used to send Bitcoin.
o Must be kept secret.
o If stolen, you lose control of your Bitcoin.

What Happens in a Bitcoin Transaction?

1. Sender's Wallet:
o Uses their private key to digitally sign and authorize the
transaction.
2. Transaction Details:
o Includes the sender's private key (wallet address), the amount,
and the recipient's public key (wallet address).
3. Network Verification:
o Other computers (nodes) check and confirm the transaction is
valid.
4. Blockchain Record:
o The transaction is added to the blockchain, a public ledger
everyone can see.

Bitcoin works like an invisible currency, but every transaction is securely

recorded, ensuring trust and transparency.

8. How are Bitcoin transactions structured, verified, and recorded?

1. Structure of a Bitcoin Transaction : When you send Bitcoin, the transaction includes
three main parts:

1. Input: The Bitcoin you are using comes from previous transactions (like a receipt
showing you own the Bitcoin).
2. Output: The Bitcoin is sent to the recipient’s wallet (their public key).
3. Digital Signature: Created using your private key to prove you own the Bitcoin and
authorize the transaction.

Example:

 You are sending 1 Bitcoin.

o Input: Shows where this Bitcoin came from (e.g., you received it earlier).
o Output: Shows where this Bitcoin is going (e.g., your friend’s wallet).
o Digital Signature: Proves you are the owner and have the right to send this
Bitcoin.

2. How Transactions Are Verified

Verification makes sure the transaction is real and secure. Here’s how it works:

1. Check Digital Signature:

o The network checks your digital signature using your public key.
o This proves that you are the owner of the Bitcoin and authorized the transaction.
2. Prevent Double-Spending:
o The network ensures you’re not trying to send the same Bitcoin to multiple
people.
3. Group Transactions into a Block:
o Verified transactions are grouped together in a block to be added to the
blockchain.

3. Recording Transactions on the Blockchain

Once verified, the transaction is recorded permanently:

1. Mining:
o Miners solve a complex puzzle to add the block (with your transaction) to the
blockchain.
o This process secures the network.
2. Adding to the Blockchain:
o After solving the puzzle, the block is added to the blockchain.
o The blockchain is a public ledger that keeps a permanent record of all
transactions.
3. Broadcast to the Network:
o All computers (nodes) in the network update their copy of the blockchain to
include the new block.
Why Is This Process Important?

 Security: Digital signatures and mining ensure transactions cannot be faked or altered.
 Transparency: The blockchain records every transaction, and anyone can view it.
 Decentralization: No single person or company controls the process.

9. Explain mining and its importance in the Bitcoin network.

Mining is the process by which new Bitcoin transactions are added to the blockchain and
new Bitcoin coins are created. Miners use powerful computers to solve complex
mathematical problems that validate and secure transactions on the Bitcoin network.

How Does Bitcoin Mining Work?

1. Transaction Collection:
o Miners collect unconfirmed Bitcoin transactions from the network.
o These transactions are grouped together into a "block."
2. Solving the Mathematical Puzzle:
o To add this block to the blockchain, miners must solve a cryptographic puzzle.
o The puzzle requires significant computing power to solve, so miners compete to
solve it first.
3. Proof of Work (PoW):
o The puzzle is a process known as Proof of Work (PoW).
o It ensures that miners are doing actual work to secure the network. The miner who
solves the puzzle first gets to add the block to the blockchain.
4. Adding the Block:
o After solving the puzzle, the miner announces the solution to the network.
o Other nodes verify the solution. If correct, the block is added to the blockchain.
5. Reward:
o The miner who successfully adds the block to the blockchain is rewarded with
new Bitcoins and transaction fees from the transactions included in the block.

Importance of Mining in the Bitcoin Network

1. Security:
o Mining secures the Bitcoin network by making it extremely difficult for any
malicious actor to alter or reverse transactions.
o The Proof of Work makes changing a transaction or creating fake transactions
highly computationally expensive.
2. Decentralization:
o Mining helps maintain Bitcoin’s decentralized nature. There is no central
authority or single entity controlling the network.
 o The more miners there are, the stronger the network becomes, and it becomes
harder for any single party to take control.
3. Transaction Verification:
o Mining ensures that all Bitcoin transactions are verified, preventing fraud like
double-spending (spending the same Bitcoin more than once).
4. Issuing New Bitcoins:
o Mining also creates new Bitcoins. Every time a miner adds a block, they are
rewarded with newly created Bitcoins. This is how new Bitcoins enter circulation.

10.How does the Bitcoin network function?

The Bitcoin network is a collection of computers (called nodes) that work together to keep
track of Bitcoin transactions. It’s a decentralized network, meaning there’s no central
authority like a bank or government in charge. Instead, everyone in the network helps keep it
running.

Key Parts of the Bitcoin Network:

1. Nodes:
o These are computers that are connected to the Bitcoin network. They store
information about every Bitcoin transaction.
o There are two types of nodes: full nodes (which keep a complete record of all
transactions) and light nodes (which only store part of the record).
2. Blockchain:
o The blockchain is like a giant digital ledger where every Bitcoin transaction is
recorded.
o It’s called a blockchain because the transactions are grouped into blocks, and
these blocks are linked together in a chain. Once something is added to the
blockchain, it can’t be changed.
3. Miners:
o Miners are computers that help the Bitcoin network by verifying and confirming
transactions.
o They do this by solving very hard math problems (called proof of work), and
when they solve these problems, they add a new block of transactions to the
blockchain.
o Miners are rewarded with new bitcoins and transaction fees for their work.
4. Bitcoin Wallets:
o A Bitcoin wallet is a place where you store your Bitcoin.
o It has two keys:
 Public key: This is like your bank account number, and it’s where people
send Bitcoin to you.
 Private key: This is like your password. It’s what you use to send Bitcoin
to others. You need to keep it safe, or someone could steal your Bitcoin.
11.What are Bitcoin wallets? Compare different types of wallets and their
features.

A Bitcoin wallet is a digital tool that allows you to store and manage your Bitcoin. It's
similar to a physical wallet, but instead of holding cash or cards, it holds the private keys
and public keys needed to access and control your Bitcoin.

Key Concepts:

1. Private Key:
o This is like a secret password.
o It is used to sign transactions, proving that you are the owner of the Bitcoin in
your wallet.
o Important: If someone else gets access to your private key, they can steal your
Bitcoin. Never share it!
2. Public Key:
o This is like your Bitcoin address (similar to an email address).
o You share this key with others so they can send Bitcoin to you.
o Important: You can freely share your public key without worrying about
security.

Types of Bitcoin Wallets

1. Hot Wallets (Software Wallets):

o These are wallets that are connected to the internet.
o They can be apps you download on your phone or computer or even online
wallets.
o Example: Wallet apps like Exodus, Blockchain Wallet, or Electrum.
o Pros: Easy to use, convenient for quick transactions.
o Cons: Since they are online, they can be vulnerable to hackers.
2. Cold Wallets (Hardware Wallets):
o These are physical devices (like a USB stick) that store your Bitcoin offline.
o Example: Devices like Ledger Nano S or Trezor.
o Pros: Much more secure because they are not connected to the internet, making
them harder to hack.
o Cons: Not as convenient for quick access since they need to be plugged into a
computer.
3. Paper Wallets:
o A paper wallet is a physical printout of your Bitcoin public and private keys.
o It’s like writing down your keys on paper and keeping it safe.
o Pros: Very secure if kept offline.
o Cons: If the paper gets lost or damaged, you could lose your Bitcoin forever.

Why Do You Need a Bitcoin Wallet?

1. To Store Bitcoin: Without a wallet, there’s no way to store your Bitcoin. The wallet
holds the private key that proves ownership of the Bitcoin.
2. To Send Bitcoin: If you want to send Bitcoin to someone else, you need a wallet to
create and sign the transaction.
3. To Receive Bitcoin: You use your public key (Bitcoin address) to receive Bitcoin from
others.
4. To Control Your Bitcoin: With a wallet, you are the sole owner of your Bitcoin, not a
bank or third-party institution.

How to Use a Bitcoin Wallet:

1. Creating a Wallet:
o You can create a wallet by downloading a wallet app or purchasing a hardware
wallet. Some wallets are free, and others might cost a little money (especially
hardware wallets).
2. Getting Your Bitcoin Address:
o After setting up your wallet, you’ll get a public key (Bitcoin address) that you
can share with others to receive Bitcoin.
3. Sending Bitcoin:
o To send Bitcoin, you’ll need the recipient's public key (Bitcoin address).
o You then create a transaction, enter the amount of Bitcoin you want to send, and
sign it with your private key.
o The wallet helps you generate the signature and sends the transaction to the
Bitcoin network.
4. Checking Your Balance:
o Your Bitcoin wallet shows how much Bitcoin you have by checking the
blockchain for your address and listing any Bitcoin associated with it.
12.Describe the Bitcoin payments.

Bitcoin payments are the process of sending or receiving Bitcoin as a method of exchange for
goods, services, or transfers. Unlike traditional payment methods, Bitcoin operates on a
decentralized network, meaning there’s no central authority (like a bank) controlling the
transactions. Instead, the Bitcoin network is powered by its users.

Key Elements of Bitcoin Payments

1. Bitcoin Wallet:
o Both the sender and receiver must have a Bitcoin wallet. It is a digital tool or
software that stores your Bitcoin and allows you to send and receive payments.
o A Bitcoin wallet consists of two important keys:
 Public Key: Like an email address or bank account number. It’s where
others can send you Bitcoin.
 Private Key: Like a password. It’s used to sign and authorize transactions.
It should always be kept secret.
2. Sender: The person or entity who wants to send Bitcoin to another person.
3. Receiver: The person or business receiving the Bitcoin payment.

How Bitcoin Payments Work

1. Initiating the Payment

 The sender creates a Bitcoin payment by entering:

o The amount of Bitcoin they wish to send.
o The receiver’s Bitcoin address (public key).
 The sender then uses their private key to sign the transaction. This ensures that they have
the authority to send the Bitcoin from their wallet.

2. Broadcasting the Transaction

 Once signed, the transaction is broadcast to the Bitcoin network. The Bitcoin network is
made up of a group of nodes (computers connected to the network).
 These nodes are responsible for verifying the transaction before it is confirmed and
added to the public ledger called the blockchain.
3. Transaction Verification

 The Bitcoin network checks if the sender has enough Bitcoin to make the payment. It also
makes sure that the transaction follows the rules and is legitimate.
 This verification happens through a process called mining (in Proof of Work) or staking
(in Proof of Stake), where nodes validate and confirm the transaction.

4. Recording on the Blockchain

 After verification, the transaction is recorded in a block and added to the blockchain.
 The blockchain is a decentralized public ledger that keeps a permanent record of all
Bitcoin transactions. It is like a massive digital notebook that is stored across thousands
of computers.

5. Confirmation

 Once the transaction is added to the blockchain, it is considered confirmed. However, for
more security, a transaction might need several confirmations to ensure it can’t be altered
or reversed.
 The receiver can now see the payment in their wallet, and the payment process is
complete.

Example of Bitcoin Payment:

Let’s say you want to buy a book online using Bitcoin:

1. Step 1: Get the Receiver’s Bitcoin Address

o The online bookstore provides a Bitcoin address (public key) for payment. This
is like giving you their bank account number.
2. Step 2: Make the Payment
o You open your Bitcoin wallet and enter the amount of Bitcoin to send.
o You sign the transaction with your private key, authorizing the payment.
3. Step 3: Broadcast to the Network
o The payment is broadcast to the Bitcoin network for verification.
4. Step 4: Verification
o Miners or validators check if you have enough Bitcoin and whether the
transaction is valid. Once validated, it is added to the blockchain.
5. Step 5: Final Confirmation
o After a few minutes or sometimes hours, the payment gets confirmed, and the
bookstore can see that they have received the Bitcoin.
Unit 2: Smart Contracts & Ethereum

1. Explain the history of smart contracts and provide a definition.

What are Ricardian contracts, and how do they relate to smart contracts?

1. 1990s – Idea by Nick Szabo

o Nick Szabo came up with the idea of smart contracts. He wanted to
automate agreements using digital rules without needing banks or lawyers.
2. 2008 – Bitcoin Launches
o Bitcoin uses blockchain to record transactions but doesn’t support complex
smart contracts.
3. 2013 – Ethereum is Proposed
o Vitalik Buterin suggests creating Ethereum, a platform that can run smart
contracts automatically.
4. 2015 – Ethereum Launches
o Ethereum is launched with Solidity, a special programming language for
smart contracts. It allows automatic execution of contracts on the blockchain.
5. Now – Smart Contracts Everywhere
o Smart contracts are used in cryptocurrency, finance, and other areas on
platforms like Ethereum and others.

A smart contract is a digital agreement between two parties. It’s written in code and
stored on a blockchain (a kind of digital ledger).

How it works:

1. Two people agree to a set of terms, like "I will send you 10 BTC if you deliver 100
items."
2. The contract is written in code and stored on a blockchain.
3. The contract automatically checks if the conditions are met (for example, if the 100
items are delivered).
4. Once the conditions are satisfied, the contract executes itself and sends the 10 BTC.

What Makes Smart Contracts Special?

 No middleman: You don’t need banks, lawyers, or other intermediaries.

 Security: They’re stored on a blockchain, which makes them safe from being
tampered with.
  Automatic execution: No need to manually check or enforce the contract. It
happens automatically when the conditions are met.

What are Ricardian Contracts?

A Ricardian contract is a type of contract that combines regular contract language (what
a contract looks like in the real world) with digital code (what smart contracts use). Think
of it like a regular contract you would sign, but it also includes computer code to make it
work in the digital world.

Key Features:

1. Readable by humans: You can read and understand it like any normal contract.
2. Readable by machines: It also contains code that can be executed by a computer,
like a smart contract.
3. Links to digital assets: It’s used to represent agreements related to things like
cryptocurrencies or digital assets.

Example: Imagine you and a friend agree to trade cryptocurrency. A Ricardian

contract could explain the terms of the trade in simple language ("I will send you 5
BTC if you send me 10 ETH") and also have computer code that makes the transaction
happen automatically once both of you fulfill your part.

Comparison: Smart Contracts vs. Ricardian Contracts

 Smart Contracts: These are fully automated contracts that run on their own once
conditions are met. They focus on automation and don’t usually explain the terms
in regular language.
 Ricardian Contracts: These are like normal contracts, written in regular
language, but they also include code that makes them work in a blockchain system.

2. What are smart contract templates? Discuss their role in simplifying smart
contract development.

Smart contract templates are pre-written, customizable contracts that can be used to
create a specific agreement automatically on a blockchain. They contain predefined terms
and conditions, which can be easily modified for different use cases, saving time and
effort in writing a new contract from scratch. These templates help users or developers to
quickly deploy contracts for various purposes like lending, insurance, or property
transactions without needing to write the entire code manually.
 Key Points:

 Pre-written: Templates are already coded with the structure of a contract.

 Customizable: You can modify details like parties, amounts, or dates as needed.
 Efficiency: They make it easier and faster to deploy smart contracts on blockchain
platforms. They’re commonly used in decentralized finance (DeFi) applications, token
creation, and other blockchain-based agreements.

3. Explain the process of deploying smart contracts.

What was "The DAO"? Discuss its significance in the history of blockchain
and smart contracts.

Deploying a smart contract involves several steps, mainly carried out on a blockchain
platform like Ethereum. Here's the process:

1. Write the Contract Code: A smart contract is written using a programming

language like Solidity (for Ethereum). It defines the rules, conditions, and actions
that the contract will automatically enforce once deployed.
2. Compile the Code: After writing the smart contract, it is compiled into bytecode,
which the blockchain can execute.
3. Deploy to the Blockchain: The compiled bytecode is deployed to a blockchain
through a transaction. The contract is uploaded to the network and stored on the
blockchain. Once deployed, the contract has its own address, and users can interact
with it.
4. Interact with the Smart Contract: After deployment, users can interact with the
contract via transactions on the blockchain. These transactions trigger the actions
defined in the contract.

The DAO (Decentralized Autonomous Organization) was a digital organization built

on the Ethereum blockchain that aimed to allow people to pool their money together
and invest in projects. Here's how it worked in simple terms:

1. People Invest:
o Anyone could send Ether (the cryptocurrency of Ethereum) to The DAO and in
return, they would get DAO tokens.
o These tokens gave them the ability to vote on which projects to fund.
2. Voting System:
o The DAO used smart contracts to automatically execute decisions made by token
holders.
o Token holders would vote on different ideas or startups that they wanted to invest
in.
3. Goal:
o The DAO was like a crowdfunding platform, but instead of a central authority
(like a bank), the decisions were made by everyone who invested using the DAO
tokens.
 However, The DAO was hacked in 2016 because of a flaw in the code, and a lot of
money was stolen. This event led to a split in the Ethereum blockchain (called a hard
fork) to try to get the stolen money back.

In short, The DAO was a way for people to make collective decisions about how to invest
their money, but the hack showed that smart contracts need to be very secure.

4. Provide an overview of Ethereum and its importance in blockchain

technology.
What are the key components of the Ethereum ecosystem?

The Ecosystem of the Ethereum blockchain comprises several integral

components. At its foundation lies the Ethereum blockchain, which
operates on a decentralized peer-to-peer network.

5. What is the Ethereum Virtual Machine (EVM), and how does it enable
Ethereum's functionality?
6. Explain the structure of blocks and the blockchain in Ethereum.
Discuss the role of wallets, client software, nodes, and miners in the
Ethereum network.
7. What APIs and tools are commonly used in Ethereum development?
Define decentralized applications (DApps). How do they interact with the
Ethereum network?
8. What are the supporting protocols in Ethereum, and why are they essential?
Which programming languages are used for Ethereum development, and
why?
9. Provide an overview of the Ethereum development environment.
What are test networks, and why are they important for Ethereum
developers?
10.What are the components of a private Ethereum network?
Explain the process of starting and mining on a private Ethereum network.
11.What is Remix IDE, and how is it used for Ethereum development?
Explain the purpose of MetaMask and how it integrates with Remix IDE to
deploy smart contracts.

Unit 3: Serenity, Ethereum, Hyperledger & Tokenization

 1. What is Web3, and how can it be explored using Geth?
Describe the process of contract deployment and interacting with contracts via frontends.
2. What is Ethereum 2.0, and how does it differ from Ethereum 1.0?
Discuss the development phases and architecture of Ethereum 2.0 (Serenity).
3. Explain the different development phases of Ethereum 2.0.
How does each phase contribute to the network's scalability, security, and sustainability?
4. List and describe key projects under the Hyperledger umbrella.
What is Hyperledger's reference architecture, and how does it enable enterprise
blockchain solutions?
5. What is Hyperledger Fabric? Explain its core components and use cases.
What is Hyperledger Sawtooth? Discuss how it differs from Fabric and its advantages.
6. How do you set up a Sawtooth development environment? Describe the key steps
involved.
7. What is tokenization on a blockchain? Discuss its role in asset representation.
Explain the process of tokenization.
8. Describe the different types of tokens on a blockchain, such as utility tokens, security
tokens, and others.
9. What are token offerings, and how do they differ from traditional fundraising methods?
Explain token standards, with a focus on ERC-20.
10. How is tokenization used in trading and finance?
What is DeFi (Decentralized Finance), and how does it leverage tokenization and
blockchain technology?
11. Describe the steps involved in building an ERC-20 token.
What are the key components of an ERC-20 token?
12. Discuss emerging concepts in tokenization and how they might shape the future of
blockchain and finance.

Unit 4: Solidity Programming

1. Explain the layout of a Solidity source file. What are the key components and their
purposes?
2. Describe the structure of a Solidity contract. What are the key elements within a contract?
3. Discuss the various data types in Solidity, including types, units, and globally available
variables.
What are the different input and output parameters in Solidity functions?
4. Explain the control structures available in Solidity. How are function calls made?
5. Describe the order of evaluation of expressions and assignment in Solidity.
6. What are scoping rules in Solidity, and how are variables declared within the contract?
7. Discuss the error handling mechanisms in Solidity: Assert, Require, Revert, and
Exceptions.
How do they differ, and when should each be used?
8. Explain the concept of smart contracts in Solidity. How are contracts created and
deployed?
9. What is the role of visibility in Solidity contracts? Explain the different visibility types
and how getters are used.
10. What are function modifiers in Solidity? Provide examples of how they are used and
explain their importance.
11. Explain constant state variables in Solidity. How do they differ from regular state
variables?
12. Describe how functions are defined in Solidity and explain the concept of inheritance in
Solidity.
How does inheritance work with smart contracts?
13. What are abstract contracts in Solidity? How do interfaces and libraries fit into the
contract development process?