Blockchain Architecture and Cryptography
What to Know
Candidates must reason about hash functions, digital signatures, and Merkle structures. Hash functions provide preimage resistance, second-preimage resistance, and collision resistance; block linkage depends on collision resistance, while address and commitment schemes depend on preimage properties. SHA-256 is common; Keccak variants underpin Ethereum addressing.
Signatures use asymmetric cryptography: ECDSA (secp256k1) or EdDSA. Know that signing proves possession of a private key, not identity, and that ECDSA requires unique nonces. Nonce reuse leaks the private key; this is a classic exam scenario.
Understand Merkle trees for efficient inclusion proofs and state models: UTXO (Bitcoin-like) versus account-based (Ethereum-like), each with distinct replay and double-spend considerations. Cover consensus families: proof of work, proof of stake, and BFT variants, including finality and fork-choice rules. Know that probabilistic finality differs from deterministic finality.
Also cover key derivation (BIP32/39-style hierarchical deterministic wallets), multisignature and threshold signing, and why hardware security modules or secure elements protect keys.
Traps
- Claiming a hash collision lets an attacker reverse a hash; collisions and preimages are different attacks.
- Confusing encryption with signing; signatures are not confidential.
- Assuming proof of stake removes the need for key protection; validator keys are high-value targets.
- Mixing up deterministic and probabilistic finality when a question asks about settlement assurance.
Rule of Thumb
Match the primitive to the property required: linkage needs collision resistance, commitments need hiding plus binding, authentication needs unforgeability. Worked example: two signatures sharing an ECDSA nonce reveal the private key via algebra, so nonce generation must be deterministic or from a CSPRNG.
Study Focus
Be able to explain a Merkle inclusion proof step by step and to contrast UTXO and account models for replay protection.