Q. With reference to “Blockchain Technology”, consider the following statements:
- It is a public ledger that everyone can inspect, but which no single user controls.
- The structure and design of 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
Correct Answer – (d) 1 and 3 only
Question from UPSC Prelims 2020 GS Paper
Explanation:
Blockchain Technology
Blockchain technology is a decentralized ledger that records all transactions across a network. It is a public ledger that everyone can inspect, but which no single user controls. This high level of transparency allows for trust and accountability in transactions.
Expanding Beyond Cryptocurrency
Contrary to popular belief, blockchain technology is not limited to cryptocurrency. While it was initially developed to support Bitcoin, its applications have expanded far beyond that. Blockchain can be used for various purposes such as supply chain management, voting systems, identity verification, and more. Its core features of decentralization, transparency, and immutability make it suitable for a wide range of applications.
Permissionless Development
One of the key advantages of blockchain technology, especially in public blockchains like Ethereum, is the permissionless nature of its development environment. Applications that depend on the basic features of blockchain can be developed without anybody’s permission. This fosters innovation and allows developers to create decentralized applications (DApps) that leverage the blockchain’s features.
Therefore, statements 1 and 3 are correct, making (d) 1 and 3 only the right choice.
