With reference to Non-Fungible Token (NFTs), consider the following statements:

  1. They enable the digital representation of physical assets.
  2. They are unique cryptographic tokens that exist on a blockchain.
  3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.

Which of the statements given above are correct?

[UPSC Civil Services Exam – 2022 Prelims]

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3


Answer: (a)        

Explanation:

  • Non-fungible tokens (NFTs) are cryptographic assets on a blockchain that uniquely identify real-world items such as artwork and real estate.
  • By “tokenizing” these assets, it becomes more efficient to buy, sell, and trade them, reducing the likelihood of fraud.
  • NFTs typically contain references to digital files such as photos, videos, and audio.
  • “Tokenizing” these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud. Hence, Statement 1 is correct.
  • It is cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Hence, Statement 2 is correct.
  • Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. Hence, Statement 3 is not correct.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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