UPSC CSE Prelims
Question 68
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?
View correct answer and explanation
Correct answer: D
Correct Option: D (1 and 3 only)
Explanation: Blockchain records are distributed across participants and can be used for assets, supply chains and records beyond cryptocurrency. Open permissionless blockchains allow applications without a central gatekeeper.
Statement / Pair / Item-wise Analysis:
1. Correct - Public blockchains provide transparent replicated ledgers not controlled by a single party.
2. Incorrect - Blockchains can store or reference data for many purposes besides cryptocurrencies.
3. Correct - Permissionless blockchains allow developers to deploy compatible applications without central approval.
Option-wise Analysis:
A. Incorrect-omits correct item 3 (Permissionless blockchains allow developers to deploy compatible applications without central approval).
B. Incorrect-includes incorrect item 2 (Blockchains can store or reference data for many purposes besides cryptocurrencies); omits correct item 3 (Permissionless blockchains allow developers to deploy compatible applications without central approval).
C. Incorrect-includes incorrect item 2 (Blockchains can store or reference data for many purposes besides cryptocurrencies); omits correct item 1 (Public blockchains provide transparent replicated ledgers not controlled by a single party); omits correct item 3 (Permissionless blockchains allow developers to deploy compatible applications without central approval).
D. Correct-includes all and only valid statements/items 1, 3.
Review note: Some private/permissioned blockchains do restrict access; statements 1 and 3 describe public permissionless designs.