Arsh Agrawal

Uid- 21BCS7121
Section-15

Value Added Course- “Blockchain Essentials and Development of DApps”

Assignment 1
MM:15
Note:- The Assignment consists of 5 questions. Attempt any three. Each question carries
equal marks.

Q1. Which features distinguish databases from blockchain ledgers? Provide a comparative
analysis of the two.
Q2. Explain how blockchain can be introduced in the education system to certify the credentials
of candidate teachers and ascertain the security of the pupils’ personal data.

Q3. How does blockchain technology prevent/ solve the problem of “Double spending” in
digital currencies such as Bitcoin?
Q4. Suggest which type of blockchain should be used for the security of donations in a charity
organization. What benefits does the blockchain technology introduce in such a scenario?
Explain your answer using an example.
Q5. Analyse, using a diagram, how a distributed ledger works, present its main characteristics,
and explain how it differs from a “traditional” centralized ledger.

A1. Databases and blockchain ledgers are both types of data storage systems, but they have
several key differences. One of the main differences is that databases are typically centralized,
while blockchain ledgers are decentralized. In a centralized database, there is a single point of
control and access, while in a decentralized blockchain, there is no single point of control and
every node in the network has a copy of the ledger. Another key difference is that databases
are typically designed for high-speed transactions and are optimized for fast writes and reads,
while blockchains are optimized for security and immutability. In a database, data can be easily
modified and deleted, while in a blockchain, once data is recorded in a block, it cannot be
altered. Additionally, databases are typically used for private data storage and management,
while blockchain is often used for public data and the management of digital assets. In terms
of security, traditional databases are vulnerable to hacking and data breaches, while blockchains
use complex cryptographic algorithms to ensure the security and integrity of the data stored on
the ledger. In summary, databases and blockchain ledgers are both data storage systems, but
they have different characteristics and are typically used for different purposes. Databases are
centralized, optimized for high-speed transactions, and are commonly used for private data
storage. On the other hand, blockchain ledgers are decentralized, optimized for security and
immutability, and commonly used for public data and the management of digital assets.
A2. Blockchain technology can be used in the education system to certify the credentials of
candidate teachers and to ensure the security of pupils’ personal data in the following ways:
1. Digital Credentials: Blockchain can be used to create a secure and tamper-proof digital record
of a teacher’s credentials, such as their educational qualifications, professional certifications,
and work experience. This information can be stored on a blockchain platform and shared with
schools and other educational institutions for easy verification.
2. Secure Data Management: Blockchain can be used to store and manage sensitive data, such
as pupils’ personal information, in a secure and transparent manner. Blockchain-based systems
can provide secure and private access to the information for authorized parties only, such as
school administrators and government officials.
3. Learning Management Systems: Blockchain can be integrated with Learning Management
Systems (LMS) to record student performance and progress. This can be used for tracking
student’s achievements, and also for providing verifiable records of their education history.
4. Digital Certificates: Blockchain can be used to issue and verify digital certificates, such as
diplomas or degrees, which can be used to demonstrate the authenticity of the student’s
education and qualification.
By implementing these blockchain-based solutions in the education system, educational
institutions can ensure that they are hiring qualified teachers and that pupils’ personal
information is protected, while also providing students with verifiable records of their
education history.

A3. Blockchain technology is used to prevent the problem of double spending in digital
currencies like Bitcoin by using a consensus mechanism called “proof of work.” This
mechanism ensures that a digital currency can only be spent once by requiring a consensus
among all nodes in the network that a particular transaction is valid. The process works as
follows: When a user initiates a transaction, it is broadcasted to the entire network of nodes.
These nodes, called “miners,” then race to validate the transaction by solving a complex
mathematical problem. The first miner to solve the problem gets to add the transaction to the
blockchain, which is a public ledger of all transactions on the network. Once a transaction is
added to the blockchain, it cannot be altered or deleted. This makes it impossible for a user to
spend the same digital currency multiple times because once it’s spent, the transaction is
recorded on the blockchain and can be seen by all other nodes on the network. This mechanism
ensures that digital currencies like Bitcoin are only spent once, preventing the problem of
double spending. It’s important to note that this mechanism not only ensures that the
transactions are verified but also ensures the integrity of the network by making the network
more resistant to tampering and fraud.