UPSC Prelims 2020 Question:

With reference to ‘Blockchain Technology

consider the following statements: 

1. It is a public ledger that everyone can inspect, but which no single user controls.
2. The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
3. Applications that depend on basic features of blockchain can be developed without anybody's permission.
   
   

Which of the statements given above is/are correct?

Explanation:

• Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network where anyone can see the data, but they cannot modify or corrupt it. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved. So, statement 1 is correct.
  
  
• Structure and Design of Blockchain is not restricted to crypto currency only. It has applications in Automotive industry, Banking and financial services, Government- records, Healthcare, Media and entertainment, Retail & consumer goods, Telecommunication and Travel & transportation. So, statement 2 is not correct.
  
  

• Applications based on Blockchain technology can be designed using both the permissioned and non-permissioned Blockchain. In the non-permissioned model, which is also known as a public blockchain, there are no restrictions, and the participation is not controlled by an administrator. Anyone can participate in the consensus and validate the data. So, statement 3 is correct.
  
  

Therefore, option (4) is the correct answer.

Subject: Science & Technology | Recent Developments