IS 130 Final Topic 17

Question 1

What is Blockchain?

Answer 1

• A set of blocks linked to form a chain

Question 2

What do the blocks in a Blockchain contain?

Answer 2

A set of transactions and is linked to the next block using a hash pointer

Question 3

What is Distributed Ledge Technology (DLT) ?

Answer 3

The technology underpinning Blockchain
- Shared between multiple nodes on a peer-to-peer network
- No central authority

Question 4

What are Permissioned DLTs

Answer 4

Have nodes that need authorization from the system administrator to access the network, to have a copy of the ledger, and to make changes

Question 5

What are Permissionless DLTs

Answer 5

When any actor can become a node in the peer-to-peer network, effectively owning a complete and up-to-date copy of the entire ledger

Question 6

What are the generations of Blockchain technology?

Answer 6

1st Gen - Bitcoin
2nd Gen - Etherum, Hyperledge Fabric
3rd Gen - DLT

Question 7

Define Blockchain system

Answer 7

A mixture of cryptography, public key infrastructure, and economic modeling applied to peer-to-peer networking and decentralized consensus, to effectively build a distributed database

Question 8

What are the different components of the Blockchain architecture?

Answer 8

• Decentralization
• Immutability
• Auditability
• Fault tolerance and resilience

Question 9

What is Decentralization?

Answer 9

A component of Blockchain architecture
- Being peer-to-peer distributed removes performance bottlenecks and costs, and prevents central authority as the only entity that can maintain records to performance

Question 10

What is Immutability?

Answer 10

A component of Blockchain architecture
- Once a transaction is validated and in the Blockchain, it cannot be tampered with, changed, erased, or forgotten

Question 11

What is Auditability?

Answer 11

A component of Blockchain architecture
- All nodes hold a copy of the ledger and can access all time-stamped transaction records, making transparent the transaction management

Question 12

What is Fault tolerance / Resilience?

Answer 12

A component of Blockchain architecture
- Any faults of data leakages that occur can be repaired using the replicas stored in Blockchain peers

Question 13

What are Smart Contracts?

Answer 13

Programmable applications stored in the Blockchain that manage transactions under specific terms and conditions

Question 14

What are Consensus Algorithms?

Answer 14

A collective decision-making process requiring a form of resolution in which individuals must support the majority decision

Question 15

What are the benefits of DLTs when it comes to IoT devices?

Answer 15

• Trust
• Resilience
• Adaptability
• Fault Tolerances
• Security
• Complete decentralization

Question 16

What are the challenges of DLTs and IoTs?

Answer 16

• Scalability
• Storage
• Latency (more storage = suffrage for accuracy)
• Security (monopolization)
• Privacy
• Environmental impact
• Compliance