Blockchain Assignment

BLOCKCHAIN ASSIGNMENT
1. What are the contents of Block in Blockchain?
The contents of a block in blockchain are:
i. a cryptographic hash of the previous block
ii. a timestamp, and
iii. the transaction data (generally represented as a Merkle tree)
2. Please share 3 problems of Centralised systemand explain them?
Problems of a Centralised system could be-
i. Single point of failure
Centralization implies that the entire network is reliant on a sole point of failure.
Organizations have established measures to incorporate it. In any case, the way that
there is an opportunity for disappointment is a major weakness for crucial
administrations
ii. Trust
The trust is a consensus that is set by the service provider and the user. Nonetheless,
that agreement can be broken easily. Huge organizations suffer from trust issues from
their users, every now and then. It only happens when there is a failure of security in
the system, people tend to ignore the service for some time before the service
provider mends the trust by offering solutions & compensation to those affected. All
of this happens because of centralization and the reason that all the data are stored in
a centralized database.
iii. Scalability Limitation
As a single server is used in most cases, it leads to scalability limitations.
3. How Blockchain maintains its immutability?
Immutability can be characterized as the ability of a blockchain record to stay unchanged,
and to stay unaltered. To be brief, data in the blockchain cannot be altered.
Each block of information, such as facts or transaction details, continue utilizing a
cryptographic principle or a hash value. That hash value consists of an alphanumeric string
produced by each block separately. Every block not just contains a hash or a digital
signature for itself but also for the prior one. This guarantees that blocks are retroactively
coupled together and unrelenting. This functionality of blockchain technology guarantees
that nobody can barge into the systemor change the data saved into the block.
It is also essential to realize that blockchains are decentralized and appropriated in nature,
where a consensus is made among the various nodes that store the replica of data. This
consensus guarantees that the originality of the information should be kept up. This is how
Blockchain maintains its immutability.

4. What are different types of Blockchain?
Are of 4 types:
- Public Blockchains
A public blockchain has definitely no entrance restrictions. They permit anybody to take
part as users, miners, developers, or community members. All transactions that happen on
public blockchains are completely transparent, which implies that anybody can look at the
transaction details. Public blockchains are intended to be fully decentralized, with no one
individual or entity controlling which transactions are recorded in the blockchain or the
order in which they are processed. Public blockchains can be profoundly restriction safe,
since anybody has the permission to join the network, regardless of the area, identity, etc.
This makes it incredibly difficult for authorities to close them down.
- Private Blockchain
A private blockchain is permissioned. One cannot join it unless gets permissioned by the
network administrators. Here Participants need consents/agreements to join the network.
Transactions are private and are only available to ecosystem members that have been
allowed to join the network Private blockchains are more centralized than public
blockchains
- Consortium Blockchain
Consortium blockchains are sometimes considered a separate designation from private
blockchains. The main difference between them is that consortium blockchains are
governed by a group rather than a single entity. This approach has all the same benefits of
a private blockchain and could be considered a sub-category of private blockchains, as
opposed to a separate type of chain.
- Hybrid blockchain
The hybrid blockchain is a combination of public and private entities. The best way to
describe it is using a public blockchain where a private network is hosted. This means that
there is restricted participation that is controlled through the private blockchain itself.
5. Why is Blockchain a trusted approach?
Blockchain is a trusted approach due to following ways:
- Its compatibility with other business applications due to its open-source nature.
- Its security. As it was meant for online transactions, the developers have paid special
attention to keeping up the pace when it comes to its security.
- It really doesn’t matter what type of business one owns, Blockchain can easily be
considered.
- Improved traceability
- Increased efficiency and speed

6. These are 4 key features of blockchain?
4 key features of blockchain are in following ways:
- Immutability
Immutability means something that can’t be changed or altered. This is one of the top
blockchain features that help to ensure that the technology will remain as it is – a
permanent, unalterable network. This is because each node of the network will have a
copy of the current data; therefore, the transparency is committed and the data is
immutable because in order to modify a piece of information, it must be modified in all
nodes of the network, which is impossible.
- Decentralized
Blockchain is a decentralized technology, which means any information stored in it acts as
a unit of the whole network. There is no centralized authority; instead, all the information
is shared among nodes Data is controlled by a decentralized network, instead of a central
authority. Therefore, the entire network operates on the principle of peer-to-peer or user-
to-user. Many organizations such as banks and governments have started using blockchain
to keep records. This does not contribute to the better data transparency but also easier
traceability.
- Enhanced Security
Unlike vulnerable websites which can be easily attacked despite security password, in a
blockchain, data is shared between multiple nodes without any central point, so it cannot
be stolen. Data is entirely secured thanks to encryption with private and public keys. Public
keys are randomly generated as a long string and publicly shared. The private key, on the
other hand, is used as a password to access users’ data.
- Distributed Ledger
All stored data is shared multiple times among all nodes of the network. As mentioned
above, blockchain self-update every 10 minutes. Information in a blockchain is considered
as a shared file. The shared information is easily verified and accessible for anyone in the
network. This also ensures that data cannot be stolen and is synchronized with other files.
Most importantly, because there is no central point, the data cannot be corrupted or
attacked.
7. What is PKI and how it helps in Blockchain?
Public Key Infrastructure (PKI) is a set of roles, policies, hardware, software and procedures
needed to create, manage, distribute, use and store digital certificates and manage public-
key encryption. The purpose of a PKI is to facilitate the secure electronic transfer of
information for a range of network activities such as e-commerce, internet banking and
confidential email.
How PKI helps in Blockchain-

Since blockchain technology aims to provide a distributed and unalterable ledger of
information, it has qualities considered highly suitable for the storage and management of
public keys. Some cryptocurrencies support the storage of different public key types such
as SSH, GPG, RFC 2230 and provides open source software that directly supports PKI
for Open SSH servers. While blockchain technology can approximate the proof of
work often underpinning the confidence in trust that relying parties have in a PKI, issues
remain such as administrative conformance to policy, operational security and software
implementation quality. A certificate authority paradigm has these issues regardless of the
underlying cryptographic methods and algorithms employed, and PKI that seeks to endow
certificates with trustworthy properties must also address these issues.
8. Is it possible to modify the data once it is written in a block? Explain your answer.
It’s almost impossible to change the data once its written in a block because it’s written to
tens of thousands of nodes around the planet, each of which validates each block using
basic accounting and cryptography. Each block contains a cryptographic proof-of-work
which guarantees that it’s expensive to create, which eliminates Sybil attacks by
guaranteeing that block creators have actual skin-in-the-game.
What’s known about block security is: how much work was performed to crest the block,
precisely which block it is intended to follow, and over time, how many blocks have been
created above it.
9. What are Merkle Trees? How important are Merkle trees in Blockchains?
Merkle trees which is also known as Hash tree, encodes the blockchain data in an efficient
and secure manner. It enables the quick verification of blockchain data, as well as quick
movement of large amounts of data from one computer node to the other on the peer-
peer blockchain network.
Merkle trees in Blockchain are important because, a Merkle tree summarizes all the
transactions in a block by producing a digital fingerprint of the entire set of transactions,
thereby enabling a user to verify whether or not a transaction is included in a block.
Merkle trees are created by repeatedly hashing pairs of nodes until there is only one hash
left. They are constructed from the bottom up, from hashes of individual transactions
which is known as Transaction IDs. Each leaf node is a hash of transactional data, and each
non-leaf node is a hash of its previous hashes. Merkle trees are binary and therefore
require an even number of leaf nodes. If the number of transactions is odd, the last hash
will be duplicated once to create an even number of leaf nodes.
10. Find the difference b/w public and private blockchain?
Basis Public Blockchain Private Blockchain

Definition
Permission less blockchain,
anyone can join the
network, read, write or
participate within the
blockchain.
Permissioned blockchain, participants
here need permission from access
controls. There are one or more than
one entity which control the network
& this leads to reliance on third-parties
to transact.
Network
type
Decentralized Centralized
Trust
Trustless Blockchain, as
anyone is able to join the
network, making it prone to
fraudulent activities.
Whereas, private blockchain is more
trusted then public, as few participants
are there.
Benefits
- Secure as the entire
network verifies
transactions.
- Transparent transaction is
made public with individual
anonymity.
- Efficient as verification is done by just
owner of the blockchain.
- Also, owner has control on read and
write on the blockchain.
Immutability Nearly Impossible Could be immutable
11. What is Open Banking?
 Open Banking is the system of allowing access and control of consumer banking and
financial accounts through third-party applications.
 Open banking has the potential to reshape the competitive landscape and consumer
experience of the banking industry.
 Open banking raises the potential for both promising gains and grave risks to consumers as
more of their data is shared more widely.
 Open banking is also known as "open bank data." Open banking is a banking practice that
provides third-party financial service providers open access to consumer banking,
transaction, and other financial data from banks and non-bank financial
institutions through the use of application programming interfaces (APIs).
 Open banking will allow the networking of accounts and data across institutions for use by
consumers, financial institutions, and third-party service providers. Open banking is
becoming a major source of innovation that is poised to reshape the banking industry.
12. What is the difference between Node and Block?
A blockchain exists out of blocks of data. These blocks of data are stored on nodes
(compare it to small servers). Nodes can be any kind of device (mostly computers, laptops
or even bigger servers). Nodes form the infrastructure of a blockchain. All nodes on a
blockchain are connected to each other and they constantly exchange the latest
blockchain data with each other so all nodes stay up to date. They store, spread and

preserve the blockchain data, so theoretically a blockchain exists on nodes. A full node is
basically a device (like a computer) that contains a full copy of the transaction history of
the blockchain. Once a blockchain block is processed, it is considered sealed – it can never
be changed. This, however, means that any malicious transactions will always be there. In
order to fight this, before processing and finalising a block, the blockchain nodes are also
validating every transaction.
13. What is Consensus and what is its contribution to Blockchain?
A consensus mechanism is a fault-tolerant mechanism that is used in computer and
blockchain systems to achieve the necessary agreement on a single data value or a single
state of the network among distributed processes or multi-agent systems, such as with
cryptocurrencies. It is useful in record-keeping, among other things. In our blockchain, we
keep the ledger transactions synchronized across the network to ensure that ledgers only
approved when the participants confirm transactions. So, for that purpose, we use
consensus algorithm. It requires miners to solve complex cryptographic mathematical
puzzles for which they get rewarded with certain number of Bitcoins. It is important to
understand that each block which is added to the network must follow a set of consensus
rules. The sole goal of the consensus protocol is to allow the node to communicate among
themselves and offer a common set of the validated transaction which can be added to the
ledger. This is designed to prevent unethical miners from adding false transactions and
blocks.
14. What is an ICO and how does it work?
ICOs (Initial coin offerings) are another form of cryptocurrency that businesses use in order
to raise capital. Through ICO trading platforms, investors receive unique cryptocurrency
“tokens” in exchange for their monetary investment in the business. It is a means of
crowdfunding through the creation and sale of a digital token to fund project
development. This unique token functions like a unit of currency that gives investors
access to certain features of a project run by the issuing company. These tokens are
unique because they help fund open-source software projects that would otherwise be
tough to finance with traditional structures.
Function-Through the ICO fundraising model, start-ups can raise capital by issuing tokens
on a blockchain (a list of records secured using cryptography) and then distributing tokens
in exchange for a financial contribution. These tokens, which can be transferred across the
network and traded on cryptocurrency exchanges, can serve an array of different
functions, from granting the holder access to a particular service, to entitling them to
company dividends. Depending on its function, tokens may be classified as either utility
tokens or security tokens. So, an ICO is just similar to a mix between an IPO and online
crowdfunding, but for cryptocurrency.

15. What is Fintech and how it is creating a buzz in the Insurance sector?
The term Fintech (Financial Technology) refers to software and other modern technologies
used by businesses that provide automated and improved financial services. Now-a-days,
there are emerging mobile players in the insurance industry, and despite the industry’s
complicated, firmly rooted environment, there is more opportunity than ever to introduce
customer value with mobile solutions. Banks are partnering with FinTech enterprises to
operate at lower costs and alleviate the reliance on legacy systems. As a result, banking
institutions are able to retain clients, while FinTech companions improve customer
experience with user-centric, mobile solutions. The urgency for financial services to offer
digital products has hit the world hard and is moving faster than originally anticipated. The
insurance sector needs to view entering the Insur-Tech environment as an opportunity to
create partnerships and build mobile strategies focused on providing value in this
increasingly digitized financial ecosystem.
Many insurance companies are aware of and embracing this shift in consumer demand.
Rather than panicking at the potential threat of InsurTech and FinTech competition,
insurers are looking at these start-ups as catalysts for innovation. The younger generation
and millennial customers favour mobile channels for financial transactions. As well, these
segments tend to be less loyal to financial companies and more likely to swap financial
services and insurance policies to fulfil changing needs. Younger age groups value
convenience, remote transactions, and as little direct interaction with institutions as
possible. Therefore, winning young customers is lucrative for insurers. By going completely
digital, insurance companies are no longer confined by geographical barriers. This reduces
operational costs and the cost advantage can be transferred to the customers. Insurance
companies can explore untapped markets by using technology as a vehicle which will be
fuelled by data and innovation.
FinTech has set the bar high for the insurance industry. Customers are expecting higher
quality mobile experiences from all their financial services, similar to the experiences they
receive from Apple, Google, Amazon, and other heavy-hitters. And these were the reasons
which had pushed Insurance sector to become tech savvy, in order to survive the market.
16. Explain Proof of Work and RAFT?
Proof of Work (PoW) is the original consensus algorithm in a blockchain network. The
algorithm is used to confirm the transaction and creates a new block to the chain. In this
algorithm, minors (a group of people) compete against each other to complete the
transaction on the network. The process of competing against each other is called mining.
As soon as miners successfully created a valid block, he gets rewarded. The most famous
application of Proof of Work (PoW) is Bitcoin.

Producing proof of work can be a random process with low probability. In this, a lot of trial
and error is required before a valid proof of work is generated. The main working principle
of proof of work is a mathematical puzzle which can easily prove the solution.
In the puzzle game, bitcoin software creates a challenge, and there is a game begins. This
game involves all miners competing against each other to solve the challenges, and this
challenge will take approximately 10 minutes to be completed. Every single miner starts
trying to find the solution to that one Nonce that will satisfy the hash for the block. At
some specific point, one of those miners in the global community with higher speed and
great hardware specs will solve the cryptography challenge and be the winner of the
game. Now, the rest of the community will start verifying that block which is mined by the
winner. If the nonce is correct, it will end up with the new block that will be added to the
blockchain. The concept of generating a block provides a clear explanation of proof of
work (PoW).
Raft is a consensus algorithm that is designed to be easy to understand. It's equivalent to
Paxos in fault-tolerance and performance. The difference is that it's decomposed into
relatively independent subproblems, and it cleanly addresses all major pieces needed for
practical systems. We hope Raft will make consensus available to a wider audience, and
that this wider audience will be able to develop a variety of higher quality consensus-based
systems than are available today.
17. Which company owns Blockchain?
IBM is the largest company in the world embracing blockchain. With over $200 million
invested in research and development, the tech giant is leading the way for companies to
integrate hyper ledgers and the IBM cloud into their systems. IBM has already helped
more than 220 businesses develop applications and data governance tools that run on
blockchain.
18. What is STO and How it is different than ICO?
A security token offering (STO) / tokenized IPO is a type of public offering in which
tokenized digital securities, known as security tokens, are sold in cryptocurrency
exchanges, or security token exchanges. Tokens can be used to trade real financial assets
such as equities and fixed income, and use a blockchain virtual ledger system to store and
validate token transactions.
Unlike an ICO coin, a security token contains an underlying asset such as stocks, bonds,
funds, or Real Estate Investment Trusts (REITs).
Most ICOs are designed to raise funds in an unregulated environment. They position their
offerings as utility tokens to circumvent regulations. Most founders and projects argue

that they distribute user tokens to access their distributed applications (DApps) or native
platforms. The main logic here is that the purpose of their coin is used, not speculation.
Such reasoning allows ICO projects to avoid regulation and the need to register with the
SEC or other strict regulatory bodies.
In contrast, STOs are introduced with a view of regulatory governance. They are registered
with the required government agencies, meet all legal requirements, and are 100% legal. It
is, therefore, much more comfortable to introduce an ICO than an STO. STO requires a
company to do a lot of compliance work in advance. While anyone can establish and
participate in an ICO (unless local laws require otherwise), only fully compliant companies
and accredited or at least known investors can sell and buy securities tokens.
19. In Which use case you will Apply Public Blockchain?
Public Blockchain can be used in making voting mechanism more efficient. Elections are
vital to modern democratic systems. But as a matter of concern, fraudulent systems
persist in such democracies, even USA and Japan. Breaching systems have become more
sophisticated. The biggest election system flaws that need addressing right now are
election manipulation, hacking of electronic voting machines, booth capturing, and vote-
rigging.
Blockchains offer a versatile method for solving the election systemissues by providing an
efficient technique for block formation and sealing (voting), data collection (counting), and
result declaration while ensuring security and privacy.
The ideal blockchain voting system is one based on a public ledger. A voter would create a
voting wallet with their credentials and receive an authenticated and tamper-proof
personal ID. The identity verification would be done by an automated systemthat assigns
a unique signature for each voter.
Voting on the blockchain can be done by anonymously transferring the token from the
voters to the candidate’s election wallet. Voting could be done regardless of the
geographic location of the voter. Voting using blockchain preserves anonymity while
providing tools for open public inspection and maintaining transparency.
20. What is Trade Finance and why you will be used Blockchain for this and the benefit you
see?
Trade finance signifies financing for trade, and it concerns both domestic and international
trade transactions. A trade transaction requires a seller of goods and services as well as a
buyer. Various intermediaries such as banks and financial institutions can facilitate these
transactions by financing the trade.
Blockchain Trade Finance involves receiving and classification of trade documents,
extraction of data from the recorded documents, generation of valid reports for cross-

documentation and transactions, automatically validating the data between documents
and generated reports is done and document scrutiny is performed adhering to various
rules and regulations.
The key benefits of blockchain technology in trade finance is that it can reduce processing
time, eliminate the use of paper, and save money while ensuring transparency, security,
and trust. Removing intermediaries from the process removes the risk of manipulation by
the participants in the process.
Here are some major advantages of blockchain in trade finance-
• Efficiency: Blockchain technology makes the trade finance process more efficient by
completing the transactions directly between the relevant parties with no intermediary
and with digitized information. With blockchain, the parties can operate smart
contracts that trigger commercial actions automatically. This allows to dramatically
streamline trade finance processes, thereby cutting costs and increasing the transaction
speed.
• Traceability: With blockchain technology, the importers and exporters can track goods
and assets and where they are currently residing. Also, related asset information can be
received from the previous and pass on to the new owner for possible action. This
allows new financing opportunities and can improve the perfection of an interest in the
trading of goods. This is considered one of the main benefits of blockchain in trade
finance.
• Transparency: Blockchain, being a distributed ledger technology can record multiple
details of the transactions against commercial agreements and can distribute the data
to improve further trust. This allows reducing the risk of tampering the records and
offers more options for financing trade.
• Auditability: Utilising Blockchain each trade finance transaction can be recorded
sequentially and indefinitely. This provides a lasting audit trail for the life of the traded
asset as well as better verification of assets authenticity with a reduction of compliance
costs.
• Security: Each transaction within the trade network is verified using independently
verified cryptography. The encryption and cryptographically protected keys securely
transmit data between different financial institutions and thus privatize the data.
21. What are CBDC and its benefit?
Central Bank Digital Currency (CBDC) is a digital formof central bank money that is
different from balances in traditional reserve or settlement accounts.
CBDC uses a blockchain-based token to represent the digital form of a fiat currency of a
particular nation (or region). A CBDC is centralized; it is issued and regulated by the

competent monetary authority of the country.
A central bank digital currency (CBDC) would use digital tokens and blockchain technology
to represent a country's official currency. Unlike decentralized cryptocurrency projects like
Bitcoin, a CBDC would be centralized and regulated by a country's monetary authority.
Pros-
 Address decline in use of cash, likely to accelerate amidst Covid-19 – help central banks
maintain control over currency’s circulation and support financial inclusion
 Challenge threat posed by cryptocurrency or other digital coins launched by private
companies like Facebook’s Libra
 Fast, efficient method of payment and exchange
 CBDC would enhance the efficiency of the payments system.
 The widespread use of CBDC, and the obsolescence of paper currency, would
discourage tax evasion, money laundering, and other illegal activities that are made
easier by paper currency, especially, large-denomination bills.
22. How e-wallet is helping in creating a cashless economy?
Mobile wallet applications are quickly gaining traction due to its fast, secure, and
convenient payment methods. These are mobile applications which allow the user to send,
receive, and store money.
A user can add or store money in his wallet by simply linking his bank account. Similarly, a
user can also send money to his friends, relatives, or any other person by entering phone
number, email ID, unique ID, or scanning QR code.
Moreover, a user can also make payments to merchants and pay various utility bills like
water bill, electricity bill, mobile recharge, and many more directly from the mobile wallet
app.
Thus, cashless payments eliminate several business risks at a time such as theft of cash by
employees, counterfeit money, and robbery of cash. It also reduces costs of security,
withdrawing cash from bank, transporting, and counting. Also speed of transaction have
been increased and middlemen eliminated.
A fully cashless society appears to be many years away. But a major FinTech advancement
could very well shorten this period. With the introduction of cutting-edge technology and
constant improvement of existing technologies, we might see faster, more transparent and
more secure cashless payments than ever. But only time will tell when we will truly
become a cashless society.

23. Which all domains will affect with Blockchain list down 5 and explain any 2?
Different domains are:
1. Crowd funding
2. Supply chain
3. Fintech
4. IoT
5. Smart contracts.
Smart contracts - Smart contracts use blockchain technology to verify, validate, capture
and enforce agreed-upon terms between multiple parties.
Smart contracts on the blockchain allow for transactions and agreements to be carried out
among anonymous parties without the need for a central entity, external enforcement, or
legal system. The transactions are transparent, irreversible, and traceable.
Blockchain is the perfect environment for smart contracts, as all the data stored is
immutable and secure. The data of a smart contract is encrypted and exist on a ledger,
meaning that the information recorded in the blocks can never be lost, modified, or
deleted.
Supply chain - Blockchain can enable more transparent and accurate end-to-end tracking
in the supply chain: Organizations can digitize physical assets and create a decentralized
immutable record of all transactions, making it possible to track assets from production to
delivery or use by end user. This increased supply chain transparency provides more
visibility to both businesses and consumers.
Blockchain can drive increased supply chain transparency to help reduce fraud for high
value goods such as diamonds and pharmaceutical drugs. Blockchain could help companies
understand how ingredients and finished goods are passed through each subcontractor
and reduce profit losses from counterfeit and grey market trading, as well as increase
confidence in end-market users by reducing or eliminating the impact of counterfeit
products.
Furthermore, businesses can maintain more control over outsourced contract
manufacturing. Blockchain provides all parties within a respective supply chain with access
to the same information, potentially reducing communication or transfer data errors. Less
time can be spent validating data and more can be spent on delivering goods and
services—either improving quality, reducing cost, or both.
Finally, blockchain can streamline administrative processes and reduce costs by enabling
an effective audit of supply chain data. Processes involving manual checks for compliance
or credit purposes that may currently take weeks can be accelerated through a distributed

ledger of all relevant information.
24. What is a Smart contract and how is useful it in a Blockchain situation?
A smart contract is an agreement between two people in the form of computer code. They
run on the blockchain, so they are stored on a public database and cannot be changed. The
transactions that happen in a smart contract are processed by the blockchain, which
means they can be sent automatically without a third party.
Example: if we want to crowdfund then we can generate a program with certain terms and
condition like an ICO and whosoever want to fund to our program can accept the
agreement and send the money in form of cryptocurrency and they will get token as a
proof that they had invested in our program (like a share).
Smart contracts can be used to perform functions in a great variety of industries. Whether
regulatory compliance, contractual enforceability, cross-border financial transactions,
property ownership, home buying, supply management, material provenance, document
management and many other applications.
Today, smart contracts are relevant in areas such as trade in digital financial assets with
legal transfer of ownership, banking and credit services, logistics processes, tracking the
origin and path of goods, decentralized storage, and use of renewable energy.
25. How e-wallet can help the Money Lending problem?
“The wallets are trying to solve the problem that financial institutions haven’t for
customers—that of convenience and ease of transaction and also money lending. E-wallets
are here to replace physical wallets in your pockets. E-wallet providers’ aim should be to
convert at least one of everyday cash transactions into a digital transaction. Like for any
bill payment we will not require to transact in cash, with the help of eWallet we can
transfer any amount from anywhere, and so the problem of money lending is also solved
weather it is for payment or money transfer to anyone.
26. What is the SWIFT banking systemand can it improve with blockchain?
SWIFT stands for “Society of Worldwide Interbank Financial Telecommunications”. SWIFT
is a global member-owned cooperative and the world’s leading provider of secure financial
messaging services. It is used by most banks to facilitate money transfer across borders.
SWIFT is not a bank; it doesn’t hold the funds for the transferor. It simply facilitates the
compliance and tracking of money across nations.
Blockchain’s greatest advantages are that it is transparent, secure and traceable. With
these features, SWIFT can be improved using the Blockchain technology.

i. Transparency- Blockchain’s transaction ledger for public addresses is open to viewing.
In SWIFT, this would add an unprecedented layer of accountability, holding each
sector of the business responsible to act with integrity towards the company’s growth,
its community and customers.
ii. Enhanced security- Blockchain is secure because each new transaction is encrypted
and linked to the previous transaction. Blockchain is formed by a complicated string of
mathematical numbers and hence it is impossible to alter. This immutable and
incorruptible nature of blockchain makes it safe from false information and hacks. It's
decentralized nature also gives it a unique quality of being ‘trustless’ – meaning that
parties do not need trust to transact safely.
iii. Easier traceability- With the blockchain ledger, each time an exchange of goods is
recorded on a Blockchain, an audit trail is present to trace where the goods came
from. This can not only help improve security and prevent fraud in exchange-related
businesses, but it can also help verify the authenticity of the traded assets. In
industries such as medicine, it can be used to track the supply chain from
manufacturer to distributer, or in the art industry to provide an irrefutable proof of
ownership.
27. From where and how a user can buy a Crypto token?
There are different places where one can buy crypto token. These are-
1. Cryptocurrency exchanges (online)
2. Bitcoin ATMs (you put money inside and can load your bitcoin wallet)
3. Bitcoin Voucher Cards
4. Buy it personally from other people
The best way to buy crypto coins is by opening a wallet with one of the large
cryptocurrency exchange websites by providing an official document ID. At the exchange,
one can buy any crypto coins and hold them in the same wallet which makes it convenient
and saves a lot of time. It is called an online wallet. One can also buy tokens by
participating in an ICO after registering through the project website. After registration, one
has to move the Bitcoins or Ether to a wallet, the user controls. All there is left to do now is
to participate in the ICO by sending crypto to the campaign’s address and receiving tokens
to one’s address.
28. Prepare a comparison between Fiat and Cryptocurrency?
Fiat Currency Cryptocurrency
Fiat currency is a “legal tender” backed
by a “central government.”
Cryptocurrency is not “legal tender”
and it is not backed by a central

government or bank (it is decentralized
and global)
It can take the form of physical dollars or
it can be represented electronically, such
as with bank credit
Its form is more like bank credit, it is
represented digitally, but not backed by
a bank or government
No intermediary is required Intermediary is required
Divisibility- Cannot be bought in ‘n’
decimals
Divisibility- Can be bought in ‘n’
decimals
Immutability- Transaction once made
can be undone
Immutability- Transaction once made
cannot be undone
Transactions are based on network
speed, may take minutes
Transactions may take days
The government controls the supply An algorithm controls the supply
You can pay your taxes with it
You can’t pay your taxes with it (instead
you have to pay taxes on it)
29. List down Blockchain Opportunity for Digital Currency, Record Keeping, Smart Contracts
Area. At Least 3 for each?
Block chain opportunities in Digital currency:
• No inflation- Since there are neither political forces nor corporations that can change this
order, there is no possibility of developing inflation in the system.
• No borders- payments made in this systemare impossible for cancelation. Coins cannot be
forged, copied or spent twice. These opportunities guarantee the integrity of the field
system.
• Decentralization- there is no central controlling authority in the network, the network is
alluded to all participants, each computer crypto-valued member is a member of this
system. This means that the central government has no power to dictate rules to
cryptocurrency owners. And even if some part of the network goes offline, the payment
system will continue to function steadily.
Blockchain opportunities in Record keeping:
• Cost savings- This is the most obvious benefit. Because blockchain transactions don't
require intermediaries, processes can be made more efficient and less expensive. There's
no need for auditors or legal professionals to validate the authenticity of information, so
those costs come out of the process.
• Efficiency- Fewer people means faster turnaround. Transactions that might take days
waiting for multiple sign-offs can be concluded in seconds.

• Security- The fewer participants there are in a transaction, less risk there is that something
could go wrong. Handoff points are a prime vulnerability, and blockchain effectively
eliminates them.
• Flexibility- Any digital asset can use blockchain, including difficult-to-protect items like
multimedia and email records.
Blockchain opportunities in Smart Contract:
• Smart contracts allow the performance of dependable transactions without the
engagement of third parties. It is a decentralized method, which means that
intermediaries at the moment of confirming deals are not required.
• Blockchain is the perfect environment for smart contracts, as all the data stored is
immutable and secure.
Submittedby-
Akanksha Verma
(20DM014)

Blockchain Assignment

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Blockchain Assignment