GS PrelimsScience and TechnologyInformation and Communication Technology2020

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?

A

1 only

B

1 and 2 only

C

2 only

D

1 and 3 only

Correct Answer: Option D

Explanation

1. Statement 1 is correct. Public blockchains function as a distributed, immutable public ledger. While everyone on the network can typically inspect the transactions recorded on it (transparency), no single user or entity has unilateral control over it due to its decentralized nature. 2. Statement 2 is incorrect. While Blockchain Technology gained prominence with cryptocurrency (like Bitcoin), its structure and design allow it to record and verify any type of digital data or transaction, not just those related to cryptocurrency. It has numerous applications beyond finance, such as supply chain management, voting systems, and digital identity. 3. Statement 3 is correct. Public or permissionless blockchains are open platforms. Applications (often called DApps or decentralized applications) that utilize the basic features of such blockchains (like transaction recording, smart contracts) can generally be developed and deployed by anyone without needing permission from a central authority. 4. Therefore, statements 1 and 3 are correct.

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