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?

[UPSC Civil Services Exam – 2020 Prelims]

(a) 1 only

(b) 1 and 2 only

(c) 2 only

(d) 1 and 3 only

Answer: (d)        

Explanation:

Blockchain Technology-

• It is referred to as Distributed Ledger Technology.
• It facilitates the process of recording transactions and tracking assets in a business network.
• The blocks form a chain of data as the ownership changes hands. Hence, it has no single user control. Hence statement 1 is correct.
• The applications that depend on the basic features of the blockchain can be developed without asking anybody for permission or paying anyone. Hence statement 3 is correct.
• Since blockchain operates through a decentralized platform requiring no central supervision, it is used in voting, banking, messaging app, internet advertising, etc. Hence, it is not restricted to cryptocurrency. Hence statement 2 is not correct.