Multiple Choice Questions on With reference to ldquo Blockchain Technology rdquo consider the following statements It is a public........... for UPSC Civil Services Examination (General Studies) Preparation

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    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?

    This questions was previously asked in
    UPSC CSP Previous Year Paper (2020)

    1 only

    Incorrect Answer

    1 and 2 only

    Incorrect Answer

    2 only

    Incorrect Answer

    1 and  3 only

    Correct Answer
    Explanation:
    • Statement 1 is 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. Typically, this storage is referred to as a ‘digital ledger.’ In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which, the transactional records are stored based on actual purchases. The fascinating angle is that anybody can see the data, but they can’t corrupt it.
    • Statement 2 is incorrect: Blockchain is a shared, trusted, public ledger of transactions, that everyone can inspect but which no single user controls. Not all cryptocurrencies operate on a blockchain, and not all blockchains utilize cryptocurrencies as part of their design. Bitcoin relies on a public blockchain, a system of recording transactions that allows anyone to read or write transactions. Anyone can aggregate and publish those transactions. Moreover, Blockchain can be used for a variety of purposes of which cryptocurrency is only one of them.
    • Statement 3 is correct:  The great advantage to an open, permissionless, or public, blockchain network is that guarding against bad actors is not required and no access control is needed. This means that applications can be added to the network without the approval or trust of others, using the blockchain as a transport layer.

    Hence option 4th is correct.

    Also Check: https://mlsdev.com/blog/156-how-to-build-your-own-blockchain-architecture


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