Must read: https://fotisedu.com/blockchain-working-uses-types-benefits-and-limitations/

Important facts

֍ Blockchain can be defined as a distributed ledger technology that can record transactions between parties in a secure and permanent way.

֍ Actually it is an exchange process, which works on data blocks. In this, one block is connected to another block. These blocks cannot be hacked. Blockchain technology aims to keep documents digitally secure.

֍ Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer -to -peer nodes.

֍ Typically, this storage is referred to as a ‘digital ledger.’ In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which, the transactional records are stored based on actual purchases. The fascinating angle is that anybody can see the data, but they cannot corrupt it.

֍ By ‘sharing’ databases between multiple parties, blockchain essentially removes the need for intermediaries who were previously required to act as trusted third parties to verify record and coordinate transactions.

֍ It is a foundational technology or a platform that allows designing a secure way to record transactions and circulate it among signatories, or any kind of target group with an Internet connection.

֍ At its core it is an extremely democratic ledger that cannot be arbitrarily manipulated and easily shareable.

֍ The words “block” stands for digital information and “chain” stands for public database.

֍ Blocks store information that distinguishes them from other blocks. Even though the details of your new transaction would look nearly identical to your earlier transaction, we can still tell the blocks apart because of their unique codes.

֍ Block chain supports wide range of applications in health, education, governance, diamond industry, financial sector, etc. https://fotisedu.com/blockchain-working-uses-types-benefits-and-limitations/

֍ Blocks store information about who is participating in transactions. Instead of using your actual name, your transaction is recorded without any identifying information using a unique “digital signature,” sort of like a username.

֍ Blockchains can be both permissioned and nonpermissioned (permissionless). Public blockchain, typically permissionless as well, is the type associated with Bitcoin, where access and validation are open to participants, achieving high degree of decentralization. In private permissioned blockchain a trusted entity controls the validation and writing of data permissions.

External link: https://en.wikipedia.org/wiki/Blockchain

PRACTICE QUESTIONS

QUES . With reference to “Blockchain Technology” consider the following statements: UPSC 2020

1 . It is a public ledger that everyone we inspect, but which no single user controls.

2 . The structure and design of blockchain is such that all the data in it are about crypto currency 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?

(a) 1 only

(b) 1 and 2 only

(c) 2 only

(d) 1 and 3 only

Show Answer