With reference to “Blockchain Technology”, consider the following stat

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 ?

1 only

1 and 2 only

2 only

1 and 3 only

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2020

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Statement 1 is correct. A public blockchain is a decentralized, distributed ledger technology where transaction data is typically transparent and accessible to all participants on the network. It is not controlled by any single entity. Statement 2 is incorrect. While blockchain technology underpins cryptocurrencies like Bitcoin, its applications extend far beyond cryptocurrency. It can be used to record and verify any type of data or transaction, including supply chain management, digital identity, voting systems, and more. Statement 3 is correct. On permissionless blockchains (like Bitcoin or Ethereum), anyone can develop and deploy applications (decentralized applications or DApps) that utilize the blockchain’s features without requiring permission from a central authority.

Blockchain is a decentralized, transparent ledger technology whose applications are not limited to cryptocurrency and on which permissionless innovation can occur.

Blockchain operates as a chain of blocks, where each block contains a batch of transactions, and these blocks are linked using cryptography. This structure makes the ledger highly secure and resistant to tampering.

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