DEPARTMENT OF ARTIFICIAL INTELLIGENCE AND DATA SCIENCE

CCS339 CRYPTOCURRENCY AND BLOCKCHAIN TECHNOLOGIES

QUESTION BANK
UNIT V

PART A

1. What are smart contracts? [CO5, K1]

Smart contracts are self-executing contracts with the terms of the agreement directly written
into code. They automatically enforce and execute the terms of the contract when predefined
conditions are met.
2. What is the significance of smart contracts in blockchain technology? [CO5, K1]
Smart contracts eliminate the need for intermediaries, reduce transaction costs, and increase
transparency and security by leveraging blockchain's decentralized nature.
3. What is Truffle in blockchain development? [CO5, K1]
Truffle is a popular development framework for Ethereum blockchain. It provides tools for
writing, testing, and deploying smart contracts in a more efficient and streamlined manner.
4. What common issues might developers face with Truffle? [CO5, K1]
Common issues with Truffle include version compatibility problems, debugging complexities,
and challenges in managing dependencies and configurations.
5. What are Decentralized Applications (DApps)? [CO5, K1]
DApps are applications that run on a decentralized network rather than a centralized server.
They leverage blockchain technology for transparent, secure, and censorship-resistant
operations.
6. What distinguishes DApps from traditional centralized applications? [CO5, K1]
DApps are decentralized, meaning they don't rely on a single point of control, have
transparent operations, and often have built-in incentives through token economies.
7. What does NFT stand for in the context of blockchain technology? [CO5, K1]
NFT stands for Non-Fungible Token. These tokens are unique digital assets that represent
ownership or proof of authenticity of digital or physical items.

8. How are NFTs revolutionizing digital ownership? [CO5, K1]

 NFTs enable digital scarcity, allowing unique digital assets like artwork, collectibles, and
virtual real estate to be owned, traded, and monetized securely on the blockchain.
9. How does blockchain technology benefit supply chain management? [CO5, K1]
Blockchain enhances supply chain transparency, traceability, and efficiency by providing an
immutable ledger for recording transactions and tracking goods from production to delivery.

10. What challenges can blockchain solve in supply chain management? [CO5, K1]
Blockchain can mitigate issues like counterfeit products, inefficient inventory management,
and lack of transparency by providing a shared, tamper-proof record of transactions.
11. How can blockchain improve logistics operations? [CO5, K1]
Blockchain can streamline logistics by automating documentation processes, enhancing
transparency in shipment tracking, and enabling secure and efficient payments between
parties.
12. What role do smart contracts play in logistics management? [CO5, K1]
Smart contracts can automate contractual agreements between stakeholders in logistics,
ensuring that payments, deliveries, and other terms are executed automatically upon meeting
predefined conditions.
13. What are some blockchain applications in smart cities? [CO5, K1]
Blockchain can facilitate secure and transparent transactions in smart city infrastructure such
as energy management, waste management, identity verification, and transportation.
14. How does blockchain enhance data security in smart city initiatives? [CO5, K1]
Blockchain ensures data integrity and security by decentralizing data storage and providing
cryptographic techniques to secure data transactions in smart city systems.
15. What are some blockchain applications in smart cities? [CO5, K1]
Blockchain can facilitate secure and transparent transactions in smart city infrastructure such
as energy management, waste management, identity verification, and transportation.
16. How does blockchain enhance data security in smart city initiatives? [CO5, K1]
Blockchain ensures data integrity and security by decentralizing data storage and providing
cryptographic techniques to secure data transactions in smart city systems.
17. How does blockchain disrupt traditional finance and banking? [CO5, K1]
Blockchain enables faster and cheaper cross-border transactions, reduces fraud and
counterfeiting, improves transparency in financial transactions, and provides access to
financial services for the unbanked population.
18. What are some challenges to adopting blockchain in finance and banking? [CO5, K1]
Challenges include regulatory uncertainty, scalability issues, interoperability with existing
systems, and concerns about privacy and data protection.
19. What role does blockchain play in the insurance industry? [CO5, K1]
 Blockchain enhances transparency, reduces fraud, and automates claims processing in
insurance by providing a shared and immutable record of policyholder information and
transactions.
20. How can smart contracts revolutionize insurance processes? [CO5, K1]
Smart contracts can automate insurance processes such as underwriting, claims settlement,
and premium payments, reducing administrative costs and improving the efficiency of
insurance operations.

PART B
1.Explain the concept of smart contracts in detail. How do they function within a
blockchain ecosystem? [CO5, K2]
2.Discuss the design principles and architecture of the Truffle framework for Ethereum
development. What are some common issues faced by developers when using Truffle?
[CO5, K2]
3.Explain Decentralized Applications (DApps) and elaborate on their characteristics and
functionalities? [CO5, K2]
4.How do Decentralized Applications differ from traditional centralized applications,
and what are the challenges associated with their development and adoption? [CO5, K2]
5.Provide an in-depth analysis of Non-Fungible Tokens (NFTs), How do NFTs address
the problem of digital scarcity? [CO5, K2]
6.Explore the applications of blockchain technology in supply chain management.
Discuss specific use cases where blockchain improves transparency, traceability, and
efficiency? [CO5, K2]
7.Discuss the role of blockchain technology in optimizing logistics. What are the
potential barriers to adopting blockchain in logistics? [CO5, K2]
8.What are the key challenges in implementing blockchain projects in smart cities, and
how can they be addressed? [CO5, K1]
9.Discuss the potential benefits of blockchain in areas such as cross-border payments,
remittances, and financial inclusion? [CO5, K2]
10.Describe how blockchain enhances trust, transparency, and efficiency in insurance
processes? [CO5, K2]