Distributed Ledger Technology Unit V

1. What is Distributed Ledger Technology (DLT)?

a shared, synchronised digital ledger maintained across multiple network participants.

Is every DLT a blockchain?

No. Blockchain is a type of DLT , DAG based system are another design

What is Consensus in DLT?

A Process that enables network participants to agree on a ledger updates.

Name three key characteristics of DLT

Distribution, Cryptographic Security, and consensus.

What is an alternative Blockchain?

A blockchain designed for uses beyond or different from, Bitcoin’s core purpose

What is Ethereum mainly known for?

Smart Contracts and decentralized applications; it uses PoS

What is Hyper ledger fabric?

A permissioned enterprise DLT framework for controlled business network

What is Proof of Stake

A consensus mechanism where validators risk stake assets to participate in blockchain validation.

What is a Consortium Blockchain?

A blockchain governed by multiple organizations that share control.

State 2 adv and disadvantages of of DLT

Advantage-

• Shared audit trails.

• Reduced reconciliation

Disadvantage-

• complexity

• privacy challenges

1. What is Kadena?

Kadena is a Proof-of-Work blockchain that uses Chainweb, a network of parallel, interconnected chains, to support scalability.

2. What is Rootstock (RSK)?

Rootstock is a Bitcoin sidechain that supports Ethereum-compatible smart contracts while connecting to Bitcoin's ecosystem.

3. What is a sidechain?

A sidechain is a separate blockchain connected to another blockchain through a mechanism that enables asset or data transfer.

4. What is Drivechain?

Drivechain is a proposed Bitcoin sidechain system designed to let Bitcoin support additional blockchain features and use cases.

5. What is Quorum?

Quorum is an enterprise-focused Ethereum-based blockchain designed to support permissioned networks and private transactions.

6. What is the Quorum Transaction Manager?

It manages the distribution, storage, and retrieval of private transaction data between authorized participants.

7. What is a Crypto Enclave in Quorum?

It performs cryptographic operations, including encrypting and decrypting private transaction data, in an isolated component.

8. What is QuorumChain?

QuorumChain refers to an early Quorum consensus design that used voting among participating nodes to agree on blocks.

9. What is the role of a network manager in a blockchain network?

It helps coordinate network participation, connectivity, configuration, or management, depending on the platform.

10. What is Tezos?

Tezos is a blockchain that supports smart contracts and uses on-chain governance to enable protocol upgrades; it uses Proof of Stake.

11. What is Storj?

Storj is a decentralized cloud-storage platform that distributes encrypted data across storage providers.

12. What is MaidSafe (MaidSAFE)?

MaidSafe developed the concept of the SAFE Network, aiming to provide decentralized data storage and internet services.

13. What is BigchainDB?

BigchainDB combines database-style data handling with blockchain-like properties, supporting asset registration, ownership, and transfers.

14. What is the main purpose of BigchainDB?

To record and transfer digital assets while providing decentralized control, cryptographic verification, and tamper-resistant records.

15. Differentiate Kadena and Tezos.

Kadena uses Proof of Work and parallel chains; Tezos uses Proof of Stake and supports on-chain governance.

16. Differentiate Rootstock and Drivechain.

Rootstock is an implemented Bitcoin sidechain; Drivechain refers to a proposed framework for enabling Bitcoin sidechains.

17. Differentiate Storj and MaidSafe.

Storj focuses on decentralized cloud storage; MaidSafe's SAFE Network vision covers broader decentralized data and internet services.

18. Differentiate Quorum and BigchainDB.

Quorum focuses on enterprise blockchain transactions and privacy; BigchainDB focuses on database-style asset records and transfers.

19. Which alternative blockchain is associated with self-amending governance?

Tezos.

20. Which platform is associated with decentralized cloud storage?

Storj.

21. Which platform is designed for Bitcoin-based smart contracts?

Rootstock (RSK).

22. Which platform uses Chainweb architecture?

Kadena.

23. Which platform focuses on asset registration and transfer?

BigchainDB.

24. Which platform is associated with enterprise transaction privacy?

Quorum.

What is the impact of DLT?

It improves transparency, traceability, data integrity, automation, and coordination while potentially reducing intermediaries and reconciliation.

How does DLT improve security and transparency?

Cryptographic hashes and digital signatures help protect records, while authorized participants can verify shared transactions.

What are the major limitations of existing DLT platforms?

Scalability, high fees, energy consumption, latency, privacy issues, interoperability, storage growth, governance, and regulatory uncertainty.

What are the security and data-quality limitations of DLT?

Smart-contract bugs, compromised keys, and unsafe bridges can cause losses; incorrect input data can remain recorded.

How can DLT scalability and transaction speed be improved?

Use Layer 2 solutions, rollups, sharding, and parallel transaction processing.

How can DLT energy consumption and transaction costs be reduced?

Use efficient consensus mechanisms, optimize network processing, and reduce unnecessary on-chain operations.

How can DLT privacy and security be enhanced?

Use zero-knowledge proofs, selective disclosure, permission controls, audits, formal verification, and secure key management.

How can interoperability and storage limitations be addressed?

Use secure cross-chain protocols and store large files off-chain while keeping verification hashes on-chain.

What new applications can DLT support in healthcare and education?

Auditable medical-data access, secure information sharing, and verifiable academic certificates.

How can DLT support digital identity and asset tokenization?

It enables verifiable credentials and digital tokens representing ownership claims or interests in real-world assets.

How can DLT improve supply chains and energy trading?

It tracks products throughout delivery and records peer-to-peer energy transactions, with smart contracts automating agreed payments.

How can DLT be used in insurance and intellectual property?

It can automate eligible insurance claims and record intellectual-property ownership, licenses, and transfers.

What are the future use cases of DLT in AI and IoT?

Track AI dataset origins and model versions, and coordinate device records and machine-to-machine transactions.

How can DLT support government, finance, and environmental systems?

It can improve auditability in public services, coordinate cross-border settlements, and track carbon credits.

What determines the success of future DLT applications?

Practical value, cost-effectiveness, scalability, security, privacy, regulation, interoperability, and the balance between decentralization and performance.