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?
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1 and 3 only
- 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.