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QB - BT Solutins

ICOs are used by startups to raise funds quickly by issuing unregulated tokens, while STOs are used to sell regulated security tokens backed by assets which provides greater transparency, investor protection, and growth potential due to compliance with securities laws.

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0% found this document useful (0 votes)
13 views12 pages

QB - BT Solutins

ICOs are used by startups to raise funds quickly by issuing unregulated tokens, while STOs are used to sell regulated security tokens backed by assets which provides greater transparency, investor protection, and growth potential due to compliance with securities laws.

Uploaded by

Janvi Waghmode
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Di#erentiate between KAFKA and RAFT

between KAFKA amore

Answer

Aspect Kafka Raft

Distributed streaming platform for Consensus algorithm for ensuring


real-time data pipelines, integration, consistency and fault tolerance in
Purpose and stream processing distributed systems

Consensus Not a consensus protocol; relies on Consensus protocol based on Raft for
Protocol ZooKeeper for coordination achieving agreement among nodes

Handles high-velocity and high-


volume data, supports data Ensures consistency in distributed
ingestion, streaming data pipelines, systems, manages leader election, log
Functionality and storage replication, and safety

Uses ZooKeeper for coordination Implements Raft for consensus and fault
Implementation and management tolerance

Scalable and fault-tolerant, supports Ensures fault tolerance and consistency in


Scalability millions of messages per second distributed systems

Comprised of brokers in a cluster


with designated controllers, message Focuses on achieving consensus among
Architecture producers, consumers, and topics nodes in a distributed system

Focuses on ensuring consistency and fault


Efficient for real-time data handling tolerance, may have lower throughput
Performance and stream processing compared to Kafka in certain scenarios
Aspect Kafka Raft

Low latency for real-time data Latency may vary based on the
Latency processing implementation and configuration

Data pipelines, integration, stream


processing across distributed Ensuring consistency and fault tolerance
Use Cases systems in distributed systems

Designed to be more understandable and


Can be complex due to the need for implementable than other consensus
Complexity ZooKeeper coordination algorithms

This table summarizes the key differences between Kafka and Raft in terms of their purpose,
functionality, consensus protocol, scalability, performance, and architecture.
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Di#erentiate between ICO and STO

Component ICO STO

ICOs are used by startups to raise STOs are used to sell security tokens
funds by issuing new digital tokens to backed by tangible assets, such as
investors in exchange for property or revenue streams, which
Purpose cryptocurrency. makes them more secure and regulated.

ICOs are largely unregulated, leading STOs are subject to securities


Regulatory to fraud and investor protection regulations, providing greater
Environment concerns. transparency and investor protection.

STO investors have legal rights as they


are purchasing digital tokens representing
ICO investors have no legal rights if company securities, such as shares or
Investor Rights the funds are lost. bonds.
Component ICO STO

ICOs are considered high risk due to STOs are considered low risk due to their
Risk their unregulated nature. regulatory oversight and asset backing.

ICOs are more convenient for both STOs may require investors to pass
token issuers and investors, as they regulatory checks, making them less
Convenience do not require regulatory checks. convenient for both parties.

ICOs have a lower investor base and STOs have the potential for higher
Growth backers can be limited based on the growth due to their regulatory
Potential underlying regulations. compliance and asset backing.

ICOs can raise capital quickly and STOs may take longer due to regulatory
efficiently without intermediaries or checks and may be more expensive due
Time and Cost traditional financial institutions. to legal, accounting, and regulatory work.

ICO tokens may be less liquid than STO tokens may be less liquid than
publicly traded securities, making it publicly traded securities, making it more
more difficult for investors to sell difficult for investors to sell their
Liquidity their holdings. holdings.

STOs are typically associated with


established companies seeking to raise
ICOs are typically associated with capital more flexibly and cost-effectively
Use Cases blockchain and technology projects. than traditional methods.

ICOs offer flexibility in terms of STOs offer flexibility in terms of


fundraising structure and investor fundraising structure and investor
Flexibility participation. participation.

High risks, lack of transparency, and High costs, limited investor pool, and
Disadvantages volatility. limited liquidity.
Explain the steps to create ERC 20 token.

To create an ERC-20 token, follow these steps:


Set up the development environment: Install NodeJS and NPM on your machine. Create a
new folder for your project and run npx hardhat to initialize a new Hardhat project.
Install dependencies: Hardhat will install all necessary dependencies for your project.
Create the ERC-20 token contract: In the contracts folder, create a new Solidity file named
MyToken.sol. Define the token's name, symbol, and number of decimals. Implement the
required ERC-20 functions, such as totalSupply(), balanceOf(), transfer(), transferFrom(),
approve(), and allowance().
Compile the contract: Use the Hardhat compiler to convert the Solidity code into bytecode.
Deploy the contract: Use Hardhat's deployment tools to deploy the contract to the Ethereum
network.
Interact with the contract: Once the contract is deployed, you can interact with it using a tool
like Remix or a custom front-end application.
Test the contract: Write and run tests to ensure the contract functions as expected.
Write a Solidity program to check whether a number is prime or not

// SPDX-License-Identifier: MIT

pragma solidity ^0.8.0;

contract PrimeChecker {

function isPrime(uint256 number) public pure returns (bool) {

if (number <= 1) {

return false;

if (number == 2) {

return true;

if (number % 2 == 0) {

return false;

for (uint256 i = 3; i * i <= number; i += 2) {

if (number % i == 0) {

return false;

}
}

return true;

List out Di#erent tools available in Hyperledger. &Discuss about framework in Hyperledger

Hyperledger comprises various frameworks, including:


1. Hyperledger Fabric: A modular blockchain framework implementation that serves
as a foundation for developing applications or solutions with a modular architecture,
allowing interchangeable components like consensus and membership services13.
2. Hyperledger Sawtooth: A distributed ledger framework designed for deploying,
running, and building blockchain networks, emphasizing scalability and supporting
various consensus algorithms3.
3. Hyperledger Burrow: A framework for executing smart contracts in permissioned
blockchains, built around the BFT consensus algorithm3.
4. Hyperledger Indy: A distributed ledger designed for decentralized identity
management, including libraries, reusable components, and tools for creating digital
identities on a blockchain network3.
Hyperledger also includes various tools for blockchain development, such as:
1. Hyperledger Composer: A development framework and toolkit for rapidly
developing and deploying blockchain applications and smart contracts, leveraging
tools like Node.js, CLI, NPM, and easy-to-test DevOps processes2.
2. Hyperledger Explorer: A blockchain module explicitly designed for developing
user-driven web applications, allowing for viewing, deploying, invoking/querying
blocks, network information, transaction data, chaincodes, and other relevant data
stored in a blockchain ledger2.
3. Hyperledger Quilt: A business blockchain tool facilitating interoperability between
ledger systems, enabling atomic swaps between a single account namespace for
accounts and ledgers2.
4. Hyperledger Ursa: A shared cryptographic library preventing the replication of
cryptographic work, increasing the overall security of the blockchain network2.
These frameworks and tools enable the development of highly scalable and robust industrial
and non-monetary applications, fostering innovation and secure, transparent, and efficient
business processes
Compare between ERC 20 and ERC 721
Explain Different Components Of Hyperledger Fabric in detail.
Hyperledger Fabric is a permissioned blockchain framework, with a modular architecture (plug-
and-play). It leverages container technology to host smart contract (Chaincode) which contains
application logic.
Fabric consist of below major components

• Membership Service Provider(MSP)

• Client

• Peer

• Orderer
Membership Service Provider (MSP): MSP defines the rules for identity validation,
authentication, and access to the network. It manages user IDs and authenticates clients who
want to join the network, providing credentials for these clients to propose transactions. MSPs
can be local or channel-specific, defining administrative and participatory rights at the
organization or channel level.

There are two types of MSPs.


1. Local MSP: It defines users(Clients) and nodes(peers, orderers). It defines who
has administrative or participatory rights at that level.

2. Channel MSP: It defines administrative and participatory rights at the channel


level.

Client

Clients are applications that act on behalf of a person to propose transactions on the network.
The client uses a Fabric SDK in order to communicate with the network. The client
communicates with the SDK in order to Read or Write the data in a Fabric blockchain and an

in-state DB. Even the client is issued with a certificate from the CA authority in order to make
sure that a valid client has initiated the transaction over the network.

Peer: A node that commits transactions and maintains the state and a copy of the ledger. A
peer receives ordered state updates in the form of blocks from the ordering service and
maintains the state and the ledger.

Types of Peers

• Endorsing Peer: Endorsing peers is a special type of committing peers who have an
additional role to endorse a transaction. They endorse the transaction request which
comes from the client. Each endorsing peer possesses the copy of smart contract
installed and a ledger.

• Committing Peer: Peers who commit the block which is received from the Ordering
service, in their own copy of the blockchain. This block contains the list of transactions

where committing peer to validate each transaction and mark it as either valid or
invalid and commits to the block.
• Anchor Peer: As Fabric network can extend across multiple organization, we need
some peers to have communication across an organization. Not all peers can do this,
but these are special peers who are only authorized to do so which are nothing but
Anchor peer.

• Leading Peer: Leader peers are those who communicate or disseminate messages
from Ordering service to other peers in the same organization. These peers use Gossip
protocol to make sure that every peer receives the message.

Orderer

In a Blockchain network, transactions have to be written to the shared ledger in a consistent


order. The order of transactions has to be established to ensure that the updates to the world
state are valid when they are committed to the network.

Hyperledger Fabric provides three ordering mechanisms: SOLO, Kafka, and Simplified
Byzantine Fault Tolerance (SBFT), the latter of which has not yet been implemented in Fabric
v1.0.

• SOLO

It is the Hyperledger Fabric ordering mechanism most typically used by developers


experimenting with Hyperledger Fabric networks. SOLO involves a single ordering
node. In this, the transactions are ordered in chronological order to form a block.

• Kafka
It is the Hyperledger Fabric ordering mechanism that is recommended for production
use. This ordering mechanism utilizes Apache Kafka, an open source stream
processing platform that provides a unified, high-throughput, low-latency platform for
handling real-time data feeds. I
• SBFT
It stands for Simplified Byzantine Fault Tolerance. This ordering mechanism is both
crash fault-tolerant and byzantine fault-tolerant, meaning that it can reach agreement
even in the presence of malicious or faulty nodes.

Explain the challenges and benefits of Cybersecurity in blockchain based Applications


Blockchain technology has the potential to significantly enhance cybersecurity in various
ways, but it also presents challenges that must be addressed.Benefits of blockchain in
cybersecurity include:
1. Secure data storage and processing: Blockchain records are immutable, and any
change recorded on the blockchain is transparent and can't be modified. This ensures
that data stored on a blockchain is protected better than traditional digital or paper-
based records12.
2. Safe data transfers: The blockchain enables fast and secure transactions involving
data and finances. Smart contracts, which are an integral part of blockchain
technology, contribute to security by automatically executing agreements, reducing
the risk of human error and potential points of vulnerability12.
3. No single point of failure: Permissionless blockchain systems are decentralized and,
therefore, more resilient than traditional systems. To affect the operation or security
of the whole blockchain, a malicious actor has to compromise 51% or more of
network nodes. This means that even in the case of DDoS attacks, the system will
operate normally thanks to multiple copies of the ledger12.
4. Data transparency and traceability: The blockchain improves cybersecurity by
having digitally signed and time-stamped transactions and allowing network users to
easily trace the transaction history and review accounts at any historical moment. This
feature also allows a company to have valid information about its assets or product
distribution12.
5. User confidentiality: The confidentiality of blockchain network participants is high
due to the use of public key cryptography to authenticate users. However, some
blockchain-based startups go a step further and improve this technology. For instance,
Guardtime developed a Keyless Signature Infrastructure (KSI) that allows users to
verify signature validity without disclosing keys12.
Challenges of blockchain in cybersecurity include:
1. Scalability: Blockchain networks have different limits for block volume and number
of transactions per second. From the cybersecurity standpoint, your blockchain
system must handle all security-related transactions and data to ensure secure data
storage without harming performance2.
2. Reliance on private keys: Blockchains rely on private keys, which are long
sequences of random numbers automatically generated by a wallet. Private keys are
used for interacting with the blockchain and ensure security. If a user loses their
private key, critical encrypted data could become permanently inaccessible, making
key management a critical security concern2.
3. Adaptability: Though blockchain technology can be applied to almost any business,
companies may face difficulties integrating it. It's quite challenging to secure supply
chain systems, for instance, as it may take much time to re-implement supply chain
logic using a blockchain2.
4. High operation and customization costs: A blockchain network requires substantial
computing power and storage capacity, leading to high operation and customization
costs2.
5. Lack of governance: The decentralized nature of blockchain can lead to a lack of
governance, making it difficult to enforce regulations and standards2.
In summary, blockchain technology offers numerous cybersecurity benefits, such as secure
data storage and processing, safe data transfers, no single point of failure, data transparency
and traceability, and user confidentiality. However, it also presents challenges, including
scalability, reliance on private keys, adaptability, high operation and customization costs, and
lack of governance. These benefits and challenges must be carefully considered when
implementing blockchain-based cybersecurity solutions.
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Rewrite
SHORT ANSWER

Benefits of Blockchain in Cybersecurity:

1. Secure Data Storage: Immutable records protect data better than traditional methods.
2. Safe Data Transfers: Fast, secure transactions and automated smart contracts reduce
vulnerabilities.
3. Decentralization: No single point of failure; 51% network compromise needed to
affect security.
4. Data Transparency: Digitally signed, time-stamped transactions offer traceability.
5. User Confidentiality: Public key cryptography ensures high user confidentiality;
innovations like KSI enhance this.

Challenges of Blockchain in Cybersecurity:

1. Scalability Issues: Limited block volume and transaction speed can affect
performance.
2. Private Key Reliance: Loss of private keys can result in permanent data loss.
3. Integration Challenges: Difficulties in adapting blockchain to existing systems, like
supply chains.
4. High Costs: Significant computing and storage requirements lead to increased
operation costs.
5. Governance Issues: Decentralized nature makes enforcing regulations and standards
challenging.

Discuss the different challenges addressed by blockchain in healthcare industry


Blockchain technology faces several challenges in the healthcare industry, as highlighted in
the provided sources:
1. Lack of Technical Knowledge: Many users lack the technical knowledge required
to fully utilize blockchain technology, such as expensive hardware and software
resources, hindering its widespread adoption2.
2. Lack of Paperless Method Adoption: Resistance to moving away from paper
records and transitioning to a fully paperless blockchain network poses a significant
challenge in healthcare settings where traditional record-keeping methods are
prevalent2.
3. Lack of Government Involvement: Government-owned hospitals may face
challenges in adopting blockchain due to the decentralized nature of the technology,
which requires a shift in decision-making processes and involvement of central
authorities2.
4. Lack of Cost Reduction: Blockchain technology can be costly, requiring expensive
hardware and software resources for mining and maintenance, which may deter
widespread adoption in healthcare settings2.
5. Lack of Privacy: Maintaining patient privacy while storing data on a blockchain
network can be challenging, as the distributed nature of blockchain may compromise
individual privacy if not managed effectively2.
6. Lack of Incentive: Inadequate incentives for miners and users engaging with
blockchain technology can hinder its adoption, as the rewards may not align with the
costs and efforts involved in mining and maintaining the network2.
7. Lack of Cryptocurrency Acceptance: Resistance to accepting cryptocurrency as a
mode of payment in healthcare settings can impede the integration of blockchain
technology, as traditional payment methods still dominate the industry5.
These challenges underscore the need for addressing technical knowledge gaps, promoting
paperless practices, encouraging government involvement, reducing costs, enhancing privacy
measures, providing adequate incentives, and fostering acceptance of cryptocurrency in
healthcare to facilitate the effective implementation of blockchain technology in the industry.

SHORT ANSWER
Challenges of Blockchain in Healthcare:

1. Lack of Technical Knowledge: Users often lack the expertise and resources needed
for blockchain adoption.
2. Paperless Resistance: Reluctance to move from paper-based to digital record-
keeping hampers adoption.
3. Government Involvement: Decentralized nature conflicts with centralized decision-
making in government-owned hospitals.
4. Cost Concerns: High costs of hardware and software deter adoption due to
maintenance and mining expenses.
5. Privacy Issues: Ensuring patient privacy in a distributed blockchain environment is
challenging.
6. Incentive Shortage: Insufficient rewards for miners and users can deter engagement.
7. Cryptocurrency Resistance: Reluctance to accept cryptocurrency as payment
hinders blockchain integration.

Addressing these challenges is crucial for successful blockchain implementation in


healthcare.

ASSIGNMENT QUESTIONS
Define crypto assets.
Crypto assets are digital representations of value or rights that can be electronically
transferred or stored using distributed ledger technology or similar mechanisms. These assets
rely primarily on cryptography and distributed ledger technology, are not issued or
guaranteed by central authorities, and can be used for exchange, investment, or accessing
goods and services

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