UPSC Prelims 2020 · Question 20 of 100

UPSC Prelims 2020 question on Blockchain Technology

With reference to 'Blockchain Technology', consider the following statements:

1. It is a public ledger that everyone we inspect, but which no single user controls

2. The structure and design of blockchain is such that all the data in it are about crypto currency 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?

  1. 1 only
  2. 1 and 2 only
  3. 2 only
  4. 1 and 3 only
Show answer

Answer: D. 1 and 3 only

Verdict

Correct statements: 1 and 3 → Option (d).

Statement by statement

Statement 1 – CORRECT: Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the 'chain,' in a network connected through peer-to-peer nodes. It is a public ledger that anybody can see, but they cannot corrupt it. No single user controls it. Hence statement 1 is correct.

Statement 2 – INCORRECT: The structure and design of blockchain is NOT limited to crypto currency only. Blocks store information about transactions like the date, time, and dollar amount of most recent purchases from any online site that works on a blockchain principle. Blockchain has wide applications beyond cryptocurrency. Hence statement 2 is not correct.

Statement 3 – CORRECT: Public blockchain, typically permissionless (permissionless), is the type associated with Bitcoin, where access and validation are open to participants. Applications that depend on basic features of blockchain can be developed without anybody's permission. Hence statement 3 is correct.

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