UPSC Prelims 2026 · Question 51 of 96

UPSC Prelims 2026 question on Blockchain Features

Which of the following statements regarding the features of blockchain technology are correct?

1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.

2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.

3. Consortium blockchain is a blend of public and private blockchains allowing selective data access.

4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.

Select the answer using the code given below:

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

Answer: C. 1, 2 and 4

Verdict

Statements 1, 2 and 4 are correct, so the answer is Option (c). The question is also approachable by elimination: even if one does not know what a consortium blockchain is, knowing that 1 and 2 are correct leaves only option (c).

Analysis

Blockchain is a decentralized and distributed ledger technology that securely records transactions across many computers. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, ensuring high security. The technology eliminates the need for a central authority, offering transparency, immutability, and traceability for various applications.

Statement by statement

Statement 1 is correct: Records stored in the database may be made visible to relevant stakeholders without risk of alteration. The use of cryptography and consensus mechanisms ensures that stakeholders can view records transparently while the data remains completely immutable.

Statement 2 is correct: Copies of the entire database are stored on multiple computers on a network, syncing within seconds. Blockchain functions as a distributed ledger where every participating node on the network maintains a full, continuously synced copy of the database.

Statement 3 is not correct: A hybrid blockchain is the exact blend of public and private networks. This statement is incorrect because it is describing a hybrid blockchain. A consortium network is a semi-decentralized ledger managed by a predefined group of organizations rather than being a structural blend of public and private features.

Statement 4 is correct: Mathematical algorithms make it impossible to change or delete any data once recorded and accepted. Cryptographic hashing creates a unique digital fingerprint for each block, meaning any alteration attempts will invalidate the entire subsequent chain.

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