Here is Question No. 40 a part of our series on UPSC Prelims 2020.
40. With reference to “Blockchain Technology”, consider the following statements:
- It is a public ledger that everyone can inspect but no single user controls it.
- The structure and design of the blockchain is such that all the data in it are about cryptocurrency only.
- Applications that depend on basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1 and 3 only
Answer: D
- Statement 1 is correct: A blockchain is a form of public ledger, which is a series (or chain) of blocks on which transaction details are recorded and stored on a public database after suitable authentication and verification by the designated network participants. A public ledger can be viewed but cannot be controlled by any single user.
- Statement 2 is not correct: Its application is not only of cryptocurrency. It has a wide range of applications in health, education, governance, etc.
- Statement 3 is correct: As per NITI Aayog, the majority of viable use cases for blockchain will be permissioned ones, not public blockchains. “Public blockchains like Bitcoin, have no central authority and are regarded as enablers of total disruptive disintermediation. It can have various uses, and applications based on basic features of the technology can be developed without anybody’s approval.
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