UPSC Prelims 2020 · GS Paper I
Question 40: Science and Technology
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 ?
AnswerUPSC’s answer is (d).
A public blockchain is a distributed ledger that anyone can inspect and no single user controls, so statement 1 is right. It can record any kind of data, such as land records, supply chains or contracts, so statement 2, that it holds cryptocurrency data only, is wrong. Open (permissionless) blockchains let developers build applications on the basic features without anyone's permission, so statement 3 is right.
- 1. A shared ledger that anyone can inspect, controlled by no single user.
- 2. It can carry any kind of data, not only cryptocurrency.
- 3. Permissionless applications can be built on it.
How you could have got this
- If you were sure statement 3 is correct, (a), (b) and (c) go: each of them leaves 3 out.
What you needed to know: Permissionless applications can be built on it.
Only (d) is left. You didn’t need statements 1 or 2.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: statement 3 is also correct.
- (b) Wrong: statement 2 is false; blockchain data is not only about cryptocurrency.
- (c) Wrong: statement 2 is false.
- (d) Right: statements 1 and 3.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.