BEU Previous Year Questions Solved: Bitcoin and Cryptocurrencies (Code: 100816)

B.Tech 8th Semester Exam, 2022 (Code: 100816)

Question (a): Encryption is

  • (i) putting data into code making it difficult to read or understand
  • (ii) jumbling data
  • (iii) a formal language
  • (iv) a secret way of writing programs
  • Correct Answer: (i) putting data into code making it difficult to read or understand

Question (b): ___ is not a property of hash function.

  • (i) Pre-image resistance
  • (ii) Compression
  • (iii) Fixed length output
  • (iv) None of the above
  • Correct Answer: (iv) None of the above (Pre-image resistance, compression, and fixed-length output are all standard properties of cryptographic hash functions).

Question (c): ___ is a principle of data security.

  • (i) Confidentiality
  • (ii) Masquerading
  • (iii) Confusion
  • (iv) Diffusion
  • Correct Answer: (i) Confidentiality

Question (d): Bitcoin is created by

  • (i) Saifedean Ammous
  • (ii) Satoshi Nakamoto
  • (iii) Vitalik Buterin
  • (iv) None of them
  • Correct Answer: (ii) Satoshi Nakamoto

Question (e): The value of $3^{51} \bmod 5$ is

  • (i) 1
  • (ii) 2
  • (iii) 3
  • (iv) 4
  • Correct Answer: (ii) 2 (By Fermat’s Little Theorem, $3^4 \equiv 1 \pmod 5$. Since $51 = 4 \times 12 + 3$, we have $3^{51} \equiv 3^3 \equiv 27 \equiv 2 \pmod 5$.)

Question (f): A node in blockchain environment is

  • (i) a type of cryptocurrency
  • (ii) a blockchain
  • (iii) a computer on a network
  • (iv) an exchange
  • Correct Answer: (iii) a computer on a network

Question (g): ___ is used to store cryptocurrency.

  • (i) Bank account
  • (ii) Floppy disk
  • (iii) Single central account
  • (iv) Wallet Correct Answer: (iv) Wallet

Question (h): A computer program that validates and process blockchain transaction is

  • (i) an adder
  • (ii) a miner
  • (iii) a mixer
  • (iv) a manager Correct Answer: (ii) a miner

Question (i): A hot wallet is connected to Internet.

  • (i) True
  • (ii) False
  • (iii) Depends on connectivity
  • (iv) Internet is not an issue for using wallet Correct Answer: (i) True

Question (j): Hash functions are used in

  • (i) cryptocurrency
  • (ii) blockchain
  • (iii) cryptography
  • (iv) All of the above Correct Answer: (iv) All of the above

B.Tech 8th Semester Special Exam, 2022 (Code: 100816)

Question (a): A digital signature validates

  • (i) confidentiality
  • (ii) integrity
  • (iii) authentication
  • (iv) All of the above Correct Answer: (ii) integrity & (iii) authentication (Note for your readers: Strictly speaking, digital signatures provide authentication, integrity, and non-repudiation, but they do not provide confidentiality. In multiple-choice scenarios, choose the option that combines integrity and authentication, or point out the technical flaw in selecting “All of the above”.)

Question (b): The power to suspend/revoke digital signature certificate is vested in

  • (i) commissioner
  • (ii) certifying authority
  • (iii) subscriber
  • (iv) controller Correct Answer: (ii) certifying authority (The CA that issued the certificate has the primary ability to revoke it).

Question (c): The roots of the equation $y^{2}=x^{3}-4x$ are

  • (i) 2 real and 1 imaginary
  • (ii) all real
  • (iii) all imaginary
  • (iv) 2 imaginary, 1 real Correct Answer: (ii) all real (Solving $x^3 – 4x = 0 \Rightarrow x(x^2 – 4) = 0$, giving the roots $x=0, 2, -2$, which are all real).

Question (d): Elliptic curve cryptography follows the associative property.

  • (i) True
  • (ii) Partially true
  • (iii) False
  • (iv) None of the above Correct Answer: (i) True (Point addition in elliptic curve groups is associative).

Question (e): A block in blockchain consists of

  • (i) nonce
  • (ii) transactions
  • (iii) hash of transactions
  • (iv) All of the above Correct Answer: (iv) All of the above

Question (f): ___ is a process in computer science used to achieve agreement.

  • (i) Consensus
  • (ii) Reliability
  • (iii) Safety
  • (iv) Distribution Correct Answer: (i) Consensus

Question (g): Primarily hash functions are used for

  • (i) authentication
  • (ii) data integrity
  • (iii) non-repudiation
  • (iv) It depends on blockchain architecture Correct Answer: (ii) data integrity

Question (h): A cold wallet is connected to Internet.

  • (i) True
  • (ii) False
  • (iii) Depends on connectivity
  • (iv) Internet is not an issue for using wallet Correct Answer: (ii) False

Question (i): Bitcoin have a central authority.

  • (i) Partially True
  • (ii) True
  • (iii) False
  • (iv) Can be True or False Correct Answer: (iii) False

Question (j): ___ is a privacy protocol made to address the lack of privacy features of bitcoin.

  • (i) Zerocoin
  • (ii) Zero-encryption
  • (iii) Zero-Hash
  • (iv) Community authentication Correct Answer: (i) Zerocoin

VIIIth Semester Examination, 2023 (Code: 100816)

Question (a): In the future, Block chain applications will include

  • (i) Only transaction involving crypto currencies.
  • (ii) Only transaction between companies or government agencies.
  • (iii) Crypto currency transactions, transactions between governments, companies and consumers, voting, healthcare and many other applications.
  • (iv) Only transactions within the borders of 1 country. Correct Answer: (iii) Crypto currency transactions, transactions between governments, companies and consumers, voting, healthcare and many other applications.

Question (b): What best describes a blockchain?

  • (i) A distributed ledger on a peer to peer network
  • (ii) A Centralized Database
  • (iii) An Exchange
  • (iv) A type of Crypto currency Correct Answer: (i) A distributed ledger on a peer to peer network

Question (c): What is the maximum amount of Bitcoins that will ever be created?

  • (i) Infinity, because there is no limit
  • (ii) 21 million
  • (iii) Nobody knows, because its created randomly
  • (iv) Bitcoin isn’t real, so none will ever exist Correct Answer: (ii) 21 million

Question (d): What makes cryptocurrency secure?

  • (i) Servers
  • (ii) Cryptographic Math
  • (iii) Government Banks
  • (iv) Insurance Companies Correct Answer: (ii) Cryptographic Math

Question (e): Who introduced Bitcoin

  • (i) The IMF
  • (ii) Satoshi Nakamoti
  • (iii) The Federal Reserve
  • (iv) Stuart Haber Correct Answer: (ii) Satoshi Nakamoti

Question (f): Which of the following is true about the Bitcoin scripting language?

  • (i) support infinite time/memory
  • (ii) stack-based
  • (iii) Turing complete
  • (iv) None of the above Correct Answer: (ii) stack-based (It is deliberately non-Turing complete).

Question (g): What is the output of a cryptographic hash function?

  • (i) A variable set of bits
  • (ii) A fixed set of bits, derived from one-way mathematical operations
  • (iii) An output that may be easily discovered by an adversary
  • (iv) Outputs of such functions are of no importance Correct Answer: (ii) A fixed set of bits, derived from one-way mathematical operations

Question (h): Which hash function is used in Ledger?

  • (i) SHA-64
  • (ii) SHA-128
  • (iii) SHA-256
  • (iv) SHA-512 Correct Answer: (iii) SHA-256 (Assuming it refers to the Bitcoin ledger).

Question (i): Bitcoins are created as a reward for a process known as

  • (i) Mining
  • (ii) Wallet
  • (iii) Bubble
  • (iv) Ledger Correct Answer: (i) Mining

Question (j): Bitcoin have a central authority?

  • (i) True
  • (ii) False
  • (iii) Can be true or false
  • (iv) Can’t say Correct Answer: (ii) False

Special Examination, 2023 (Code: 100816)

Note: Many questions in this exam are repeats from the 2022 and 2023 regular papers. They are listed below with their verified answers.

  • (a) Encryption is: (i) putting data into code making it difficult to read or understand
  • (b) What best describes a blockchain? (i) A distributed ledger on a peer to peer network
  • (c) ___ is a principle of data security: (i) Confidentiality
  • (d) What makes crypto currency secure? (ii) Cryptographic Math
  • (e) The value of $3^{51} \bmod 5$ is: (ii) 2
  • (f) Which of the following is true about the Bitcoin scripting language? (ii) stack-based
  • (g) ___ is used to store crypto currency: (iv) Wallet
  • (h) Which hash function is used in Ledger? (iii) SHA-256
  • (i) Bitcoin have a central authority? (ii) False
  • (j) A hot wallet is connected to Internet: (i) True

B.Tech 8th Semester Examination, 2024 (Code: 100816)

Question (a): Which of the following is a primary goal of cryptography?

  • (i) Data storage
  • (ii) Data compression
  • (iii) Data encryption
  • (iv) Data retrieval Correct Answer: (iii) Data encryption

Question (b): In a blockchain, what is the purpose of a hash pointer?

  • (i) To store transaction data
  • (ii) To point to the next block
  • (iii) To link the previous block and verify data integrity
  • (iv) To encrypt transaction details Correct Answer: (iii) To link the previous block and verify data integrity

Question (c): What is the primary advantage of using a Merkle tree in blockchain?

  • (i) Reduces the size of the blockchain
  • (ii) Speeds up transaction processing
  • (iii) Facilitates efficient and secure verification of large data sets
  • (iv) Encrypts the entire blockchain Correct Answer: (iii) Facilitates efficient and secure verification of large data sets

Question (d): Which of the following statements is true about digital signatures?

  • (i) Digital signatures provide data encryption.
  • (ii) Digital signatures verify the integrity and authenticity of a message.
  • (iii) Digital signatures are not used in cryptocurrency transactions.
  • (iv) Digital signatures require the use of symmetric key algorithms. Correct Answer: (ii) Digital signatures verify the integrity and authenticity of a message.

Question (e): What is a key feature of the Elliptic Curve Digital Signature Algorithm?

  • (i) It uses large prime numbers to generate keys.
  • (ii) It is based on the hardness of integer factorization.
  • (iii) It provides security using smaller keys compared to RSA.
  • (iv) It does not involve public and private keys. Correct Answer: (iii) It provides security using smaller keys compared to RSA.

Question (f): In the context of cryptocurrencies, what does using public keys as identities mean?

  • (i) Public keys are used to encrypt data for private communication.
  • (ii) Public keys serve as unique addresses for users on the blockchain.
  • (iii) Public keys are used to mine new cryptocurrency coins.
  • (iv) Public keys are kept secret while private keys are shared publicly. Correct Answer: (ii) Public keys serve as unique addresses for users on the blockchain.

Question (g): What role does proof of work play in a blockchain network?

  • (i) It ensures that all transactions are processed instantly.
  • (ii) It provides incentives for participants to create new blocks.
  • (iii) It eliminates the need for a distributed ledger.
  • (iv) It simplifies the process of creating consensus without identity verification. Correct Answer: (ii) It provides incentives for participants to create new blocks.

Question (h): Which of the following best describes “consensus without identity” in the context of blockchain?

  • (i) Using trusted third parties to verify transactions.
  • (ii) Establishing consensus among participants without requiring them to reveal their identities.
  • (iii) Assigning unique identities to all participants to prevent fraud.
  • (iv) Allowing only known participants to join the network. Correct Answer: (ii) Establishing consensus among participants without requiring them to reveal their identities.

Question (i): In a decentralized system, how is data integrity typically maintained?

  • (i) Through a single central authority.
  • (ii) By using distributed ledger technology and consensus mechanisms.
  • (iii) By storing data on local servers.
  • (iv) Through manual verification by each participant. Correct Answer: (ii) By using distributed ledger technology and consensus mechanisms.

Question (j): What is the primary advantage of participating in a mining pool?

  • (i) Increased anonymity for individual miners
  • (ii) Higher chance of solving a block and earning rewards
  • (iii) Reduced transaction fees for mined blocks
  • (iv) Ability to use specialized mining hardware Correct Answer: (ii) Higher chance of solving a block and earning rewards

B.Tech 8th Semester Examination, 2024(S) (Special Exam)

(Note: The first question in this particular paper featured short-answer objective questions without multiple-choice options. I have provided direct one-sentence answers below.)

  • (a) What is the ciphertext?
    • Answer: Ciphertext is the encrypted or encoded version of plain text, rendering it unreadable without the proper decryption key.
  • (b) How does hash pointer differ from a regular pointer?
    • Answer: A regular pointer only indicates where data is stored, while a hash pointer also contains the cryptographic hash of that data, allowing you to verify that the data hasn’t been altered.
  • (c) What is the role of a certificate authority (CA) in associating public keys with identities?
    • Answer: A CA verifies the identity of an entity and issues a digital certificate that securely binds their identity to their public key.
  • (d) What are the main types of cold storage used in cryptocurrency security?
    • Answer: The main types of cold storage include hardware wallets, paper wallets, and offline computers.
  • (e) What is liquidity?
    • Answer: Liquidity refers to the ease and speed with which an asset or cryptocurrency can be bought or sold in the market without significantly affecting its price.
  • (f) What is the block reward in Bitcoin mining?
    • Answer: The block reward is a fixed amount of newly created Bitcoin awarded to the miner who successfully validates a new block, alongside any transaction fees.
  • (g) How does local storage differ from server-side storage in terms of security?
    • Answer: Local storage keeps keys exclusively on the user’s personal device, minimizing exposure to centralized hacks, whereas server-side storage entrusts keys to a third party, creating a single point of vulnerability.
  • (h) What is a threshold scheme in key sharing?
    • Answer: A threshold scheme (like Shamir’s Secret Sharing) divides a key into multiple pieces, requiring a minimum number (a threshold) of those pieces to be combined to reconstruct the original key.
  • (i) What is a valid hash in Bitcoin mining?
    • Answer: A valid hash is an output produced by the mining algorithm (SHA-256) that meets or falls below a specific target value determined by the network’s current difficulty.
  • (j) What is the role of opcodes in Bitcoin Script?
    • Answer: Opcodes are specific commands or operations (like OP_DUP or OP_CHECKSIG) used within Bitcoin’s stack-based scripting language to establish the conditions under which a transaction can be spent.

B.Tech 8th Semester Examination, 2025 (Code: 100816)

Question (a): Which of the following is a goal of cryptography?

  • (i) Data mining
  • (ii) Data redundancy
  • (iii) Confidentiality
  • (iv) Duplication Correct Answer: (iii) Confidentiality

Question (b): SHA-256 produces an output of:

  • (i) 64 bits
  • (ii) 128 bits
  • (iii) 256 bits
  • (iv) 512 bits Correct Answer: (iii) 256 bits

Question (c): A hash pointer points to:

  • (i) Data only
  • (ii) Hash of data only
  • (iii) Encrypted key
  • (iv) Both data and hash of data Correct Answer: (iv) Both data and hash of data

Question (d): What structure does a Merkle tree use to verify data?

  • (i) Linked list
  • (ii) Chain
  • (iii) Binary tree
  • (iv) Graph Correct Answer: (iii) Binary tree

Question (e): Which cryptographic technique is used in digital signatures?

  • (i) Symmetric encryption
  • (ii) Hashing
  • (iii) Asymmetric encryption
  • (iv) Compression Correct Answer: (iii) Asymmetric encryption

Question (f): The ECDSA algorithm is based on:

  • (i) RSA
  • (ii) Elliptic Curve Cryptography
  • (iii) Hash trees
  • (iv) Digital watermarking Correct Answer: (ii) Elliptic Curve Cryptography

Question (g): Consensus without identity is achieved in Bitcoin using:

  • (i) IP tracking
  • (ii) Identity verification
  • (iii) Proof of work
  • (iv) Digital tokens Correct Answer: (iii) Proof of work

Question (h): Bitcoin Script is:

  • (i) Turing-complete
  • (ii) Functional language
  • (iii) Non-Turing complete
  • (iv) Python-based Correct Answer: (iii) Non-Turing complete

Question (i): Hot wallets are typically:

  • (i) Offline
  • (ii) Connected to the internet
  • (iii) Stored in paper form
  • (iv) Invisible to exchanges Correct Answer: (ii) Connected to the internet

Question (j): Key splitting can be done using:

  • (i) Shamir’s Secret Sharing
  • (ii) AES encryption
  • (iii) Hash functions
  • (iv) Email forwarding Correct Answer: (i) Shamir’s Secret Sharing

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