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?

Prelims 2020 · Science and Technology · Question 20

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?

1 only
1 and 2 only
2 only
1 and 3 only

Answer

1 and 3 only

1. Correct. A blockchain is a distributed/public ledger shared across a network; no single participant controls the entire ledger in a decentralized blockchain.

2. Incorrect. Blockchain is not limited to cryptocurrency; it can store and verify many kinds of records such as contracts, supply-chain data, land records, etc.

3. Correct. On permissionless blockchains, applications using core blockchain features can be built and deployed without needing approval from a central authority.

Therefore, statements 1 and 3 only are correct.

1 and 3 only

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