This is a classic 'Definition + Application' question. While Statement 1 is found verbatim in standard economy texts (Singhania), the real key is logical elimination. Statement 2 is an 'extreme limiter' ('only cryptocurrency'), which contradicts the basic current affairs knowledge that blockchain is used for supply chains, land records, and voting.
How this question is built
This question can be broken into the following sub-statements.
Tap a statement sentence to jump into its detailed analysis.
Statement 1
Whether blockchain technology is a public ledger that anyone can inspect.
Origin: Web / Current Affairs
Fairness: CA heavy
Web-answerable
"Most blockchains are public, meaning that anyone can freely look at the entire record of the chain’s activity."
Why this source?
- Explicitly states most blockchains are public and that anyone can view the chain’s full record.
- Connects openness of protocols and decentralization to public visibility of on-chain activity.
"Since anyone has the right to publish blocks, this results in the property that anyone can read the blockchain as well as issue transactions on the blockchain"
Why this source?
- Defines permissionless blockchains as open platforms where anyone may publish blocks.
- Says this property results in anyone being able to read the blockchain as well as issue transactions.
"Distributed ledger. Blockchain is an open distributed ledger that can record transactions between two parties efficiently in a verifiable and permanent way"
Why this source?
- Describes blockchain as an open distributed ledger that records transactions in a verifiable and permanent way.
- Frames blockchain as a decentralised ledger, reinforcing that its records are shared and inspectable.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 245
Strength: 5/5
“• 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? • (b) 1 and 2 only • (a) 1 only • (d) 1 and 3 only • (c) 2 only • 2. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be: • (a) to reduce it by \overline{\xi}1,00,000 • (b) to increase it by \bar{x}1,00,000 • (c) to increase it by more than \bar{x}1,00,000 • (d) to leave it unchanged”
Why relevant
Explicitly describes blockchain as 'a public ledger that everyone can inspect', giving a clear textbook characterization of blockchain's access model.
How to extend
A student could compare this textbook claim with known public vs private blockchains (e.g., permissioned ledgers) using basic external knowledge to judge if 'anyone can inspect' always holds.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
Strength: 4/5
“A cryptocurrency is a digital money transferred over the internet. Cryptocurrencies are based on the decentralized ledger-based blockchain technology which seeks to make the currency system decentralized, unlike the present government-issued centralized form. Some popular cryptocurrencies are Bitcoin, Ethereum, etc. However, the cryptocurrencies have the following disadvantages: • These are not backed by any physical assets, unlike the gold reserve in case of fiat currencies. • It is still prone to hacking, and there have been instances of theft of Bitcoins from digital wallet, making them risky. • The anonymity in use of cryptocurrencies may actually facilitate several illegal activities like terror funding, smuggling, drugs trade, money laundering and other criminal activities.”
Why relevant
Calls blockchain a 'decentralized ledger-based' technology used for cryptocurrencies, highlighting the ledger and decentralization aspects linked to public visibility.
How to extend
Combine this with the general fact that decentralization often implies distributed copies of a ledger to infer that many participants can view transaction records.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Advantages of CBDC > p. 79
Strength: 4/5
“For example, if a commercial bank collapses, then our savings could potentially be wiped out, but this would not be the case with CBDCs, which we can hold on to our own in digital form and could be as trusted as cash.• CBDCs would be as convenient as payment apps and it also benefits from the same blockchain technology (Distributed Ledger Technology) which supports crypto currency.• Payments would be faster and easier without any delay as there is no settlement issue• Legal tender-based payment which will be efficient, trusted and regulated.• Higher seigniorage due to lower cost of printing, transportation/distribution and storing paper currency.• Introduction of CBDC would lead to a more robust, efficient, trusted, regulated and legal tender-based payments option.• E-rupee would offer features of physical cash like trust, safety and settlement facility”
Why relevant
Refers to blockchain as 'Distributed Ledger Technology' supporting digital currency and emphasises trust and regulation, implying shared ledger properties.
How to extend
A student can contrast 'distributed ledger' with centralized ledgers to evaluate whether distributed implies public access or merely shared among permissioned nodes.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Use of Blockchain technology in Warehouse Receipt Finance > p. 373
Strength: 3/5
“"Whrrl" is a start-up which provides "blockchain platform" for warehouse receipt financing and it has now on boarded Maharashtra State Coop bank as a lender on this platform. Earlier, the loan process for farmers used to take 7-15 days with a lot of documentation and verifications but now "Whrrl" allows the transfer of the loan amount to farmers in just five minutes in a secure and transparent way. Whrrl's solution combines blockchain along with IoT and Smart Contracts to make it easier for farmers to get loans against any commodity lying in the warehouse without any guarantors. For the banks, it becomes a risk-free lending process and brings transparency into the system.”
Why relevant
Describes blockchain delivering 'secure and transparent' transactions in a finance application, suggesting transparency (inspectability) is a design feature.
How to extend
Using the general link between transparency and public auditability, a student could check if 'transparent' in practice means publicly readable or only auditable by participants.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > What are Crypto currencies? > p. 77
Strength: 3/5
“For solving the puzzles, these systems are rewarded with crypto currencies. This process is called mining. At the backend of these transactions is technology called blockchain.• Crypto currencies derive their value as they can be mined/generated only in limited numbers. The willingness of people to hold/possess it impacts the price of the crypto currency (asset) in the same way as the gold price gets impacted.• They are neither legal tenders nor fiat currency.”
Why relevant
Explains blockchain as the backend for transaction mining and generation of cryptocurrencies, reinforcing that blockchain records transactional data.
How to extend
A student could use the fact that blockchain records transactions to investigate whether those records are globally readable or restricted to certain networks.
Statement 2
Whether blockchain technology is not controlled by any single user or authority (i.e., is decentralized).
Origin: Direct from books
Fairness: Straightforward
Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 245
Presence: 5/5
“• 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? • (b) 1 and 2 only • (a) 1 only • (d) 1 and 3 only • (c) 2 only • 2. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be: • (a) to reduce it by \overline{\xi}1,00,000 • (b) to increase it by \bar{x}1,00,000 • (c) to increase it by more than \bar{x}1,00,000 • (d) to leave it unchanged”
Why this source?
- Explicitly describes blockchain as a public ledger that everyone can inspect but which no single user controls.
- Directly frames lack of single-user control as a defining property of the technology.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
Presence: 5/5
“A cryptocurrency is a digital money transferred over the internet. Cryptocurrencies are based on the decentralized ledger-based blockchain technology which seeks to make the currency system decentralized, unlike the present government-issued centralized form. Some popular cryptocurrencies are Bitcoin, Ethereum, etc. However, the cryptocurrencies have the following disadvantages: • These are not backed by any physical assets, unlike the gold reserve in case of fiat currencies. • It is still prone to hacking, and there have been instances of theft of Bitcoins from digital wallet, making them risky. • The anonymity in use of cryptocurrencies may actually facilitate several illegal activities like terror funding, smuggling, drugs trade, money laundering and other criminal activities.”
Why this source?
- Identifies cryptocurrencies as based on decentralized ledger-based blockchain technology.
- Contrasts blockchain-based decentralization with government-issued centralized currency systems.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Why RBI launched e-Rupee? > p. 78
Presence: 4/5
“• Many Central Banks are worried that the widespread adoption of these independent crypto currencies could weaken their control over the financial system. This could cause financial instability especially because crypto currencies do not have the legal or the regulatory safeguard that the Central Bank money does, so why not issue a digital currency of their own.• Central banks seek to meet the public's need for digital currencies, manifested in the increasing use of private virtual currencies, and thereby avoid the more damaging consequences of such private currencies.• Central banks, faced with dwindling usage of paper currency, seek to popularize a more acceptable electronic form of currency like e-rupee.”
Why this source?
- Notes central banks' concern that independent cryptocurrencies could weaken their control, implying these currencies operate outside single-authority control.
- Frames blockchain-backed private currencies as independent from central bank/regulatory control.
Statement 3
Whether the structure and design of blockchain technology restricts all data stored on a blockchain to cryptocurrency-related information only.
Origin: Web / Current Affairs
Fairness: CA heavy
Web-answerable
"It is best suited for transaction records. In the GNFC example, the data stored on blockchain was the movement of fertilisers and the related claims only. Information like chemical composition etc. which are not pertinent to the transaction being targeted for streamlining using blockchain are not stored."
Why this source?
- Gives a concrete non-cryptocurrency use case (fertiliser movement) where blockchain stores transaction-related supply-chain data.
- Explicitly states blockchain is best suited for transaction records and does not require storing unrelated domain details.
"The type of blockchain determines the data stored. For example, the data maintained on a Bitcoin blockchain include information about the transaction, such as “sender,” “receiver,” and “amount.”"
Why this source?
- States that the type of blockchain determines what data is stored, implying blockchain is not limited to cryptocurrency data alone.
- Gives Bitcoin as an example (sender, receiver, amount) while leaving open other blockchains to store other data types.
"It allows businesses to create a private, permission-based system alongside a public, permissionless system, letting them regulate who has access to specific data stored on the Blockchain and what data is made public."
Why this source?
- Describes hybrid/private permissioned blockchains used by organisations to control who can access specific data stored on the blockchain.
- Implies blockchains can store varied, non-cryptocurrency data and that access/visibility of that data is configurable.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Use of Blockchain technology in Warehouse Receipt Finance > p. 373
Strength: 5/5
“"Whrrl" is a start-up which provides "blockchain platform" for warehouse receipt financing and it has now on boarded Maharashtra State Coop bank as a lender on this platform. Earlier, the loan process for farmers used to take 7-15 days with a lot of documentation and verifications but now "Whrrl" allows the transfer of the loan amount to farmers in just five minutes in a secure and transparent way. Whrrl's solution combines blockchain along with IoT and Smart Contracts to make it easier for farmers to get loans against any commodity lying in the warehouse without any guarantors. For the banks, it becomes a risk-free lending process and brings transparency into the system.”
Why relevant
Gives a concrete example where blockchain platform is used for warehouse receipt finance (loans, IoT, smart contracts) — non-cryptocurrency data and processes.
How to extend
A student could note this real-world use and check other industry use-cases (supply chain, finance records) to judge whether blockchain is limited to crypto-only data.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Advantages of CBDC > p. 79
Strength: 4/5
“For example, if a commercial bank collapses, then our savings could potentially be wiped out, but this would not be the case with CBDCs, which we can hold on to our own in digital form and could be as trusted as cash.• CBDCs would be as convenient as payment apps and it also benefits from the same blockchain technology (Distributed Ledger Technology) which supports crypto currency.• Payments would be faster and easier without any delay as there is no settlement issue• Legal tender-based payment which will be efficient, trusted and regulated.• Higher seigniorage due to lower cost of printing, transportation/distribution and storing paper currency.• Introduction of CBDC would lead to a more robust, efficient, trusted, regulated and legal tender-based payments option.• E-rupee would offer features of physical cash like trust, safety and settlement facility”
Why relevant
States CBDCs would 'benefit from the same blockchain technology (Distributed Ledger Technology)' while being legal-tender payments, implying blockchain supports non-crypto monetary uses.
How to extend
Extend by comparing definitions of CBDC versus cryptocurrencies to see if blockchain data must be crypto-native or can represent fiat-backed instruments.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
Strength: 4/5
“A cryptocurrency is a digital money transferred over the internet. Cryptocurrencies are based on the decentralized ledger-based blockchain technology which seeks to make the currency system decentralized, unlike the present government-issued centralized form. Some popular cryptocurrencies are Bitcoin, Ethereum, etc. However, the cryptocurrencies have the following disadvantages: • These are not backed by any physical assets, unlike the gold reserve in case of fiat currencies. • It is still prone to hacking, and there have been instances of theft of Bitcoins from digital wallet, making them risky. • The anonymity in use of cryptocurrencies may actually facilitate several illegal activities like terror funding, smuggling, drugs trade, money laundering and other criminal activities.”
Why relevant
Defines cryptocurrencies as 'based on decentralized ledger-based blockchain technology,' linking blockchain to crypto but framing blockchain as an underlying ledger technology rather than inherently limited to crypto.
How to extend
Use this general definition to distinguish the underlying ledger (blockchain) from one class of applications (cryptocurrencies) and test whether other applications can use the same ledger.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > IMPORTANT TERMS RELATED TO STOCK MARKET > p. 279
Strength: 3/5
“• Initial Coin
Offering (ICO): Merchant Bank; It is an unregulated means of raising fund for project using cryptocurrencies (Bitcoin, Ethereum, Litecoin, Z-cash, etc). Start-up firms dealing in blockchain technology and virtual currencies use ICO. There is no regulator for this kind of crowd funding in India.: It is a financial institution which provides assistance and advice to companies in raising capital (debt or equity). They help companies to come out with IPOs.”
Why relevant
Mentions ICOs and start-ups 'dealing in blockchain technology' using tokens for fundraising, showing blockchain used for fundraising/asset representation beyond just currency transfer.
How to extend
A student could survey tokenization and ICO use-cases to infer that blockchain can store project/funder-related data, not only currency transactions.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 245
Strength: 2/5
“• 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? • (b) 1 and 2 only • (a) 1 only • (d) 1 and 3 only • (c) 2 only • 2. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be: • (a) to reduce it by \overline{\xi}1,00,000 • (b) to increase it by \bar{x}1,00,000 • (c) to increase it by more than \bar{x}1,00,000 • (d) to leave it unchanged”
Why relevant
Contains a textbook multiple-choice item that explicitly asserts the claim (statement 2) as a proposition to be judged, indicating the claim is contentious and treated as a testable assertion.
How to extend
Use this to motivate checking textbook or syllabus explanations that distinguish blockchain's properties versus specific crypto applications to evaluate the claim.
Statement 4
Whether applications that depend on basic features of blockchain technology can be developed without anyone's permission (permissionless development).
Origin: Web / Current Affairs
Fairness: CA heavy
Web-answerable
"Public: A public blockchain is a truly decentralized permission-less blockchain. It is an open distributed ledger where any node can"
Why this source?
- Explicitly defines a public blockchain as 'permission-less', directly tying blockchain type to development without central permission.
- States public blockchains are open distributed ledgers where any node can participate, implying permissionless development of applications on such networks.
"Distributed environment -Operates on a peer-to-peer basis. -No single point of failure as there is no central control."
Why this source?
- Describes the distributed environment and peer-to-peer operation, indicating there is no central control to grant or deny permission.
- Highlights 'No single point of failure as there is no central control', supporting the idea that applications can be developed without a central authority's approval.
"The code and the agreements exist across a distributed, decentralized blockchain network. Unlike present day networks that depend on trusted intermediaries for security and trust, blockchains thus create trust organically through the underlying technology of distributed"
Why this source?
- Notes that blockchain creates trust organically without trusted intermediaries, implying developers need not obtain permission from intermediaries.
- States smart contract code and agreements exist across a distributed, decentralized blockchain network, supporting permissionless deployment of application logic.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 245
Strength: 4/5
“• 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? • (b) 1 and 2 only • (a) 1 only • (d) 1 and 3 only • (c) 2 only • 2. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be: • (a) to reduce it by \overline{\xi}1,00,000 • (b) to increase it by \bar{x}1,00,000 • (c) to increase it by more than \bar{x}1,00,000 • (d) to leave it unchanged”
Why relevant
The snippet lists as a proposition that 'Applications that depend on basic features of blockchain can be developed without anybody's permission', showing this is a recognized claim or testable idea in the material.
How to extend
A student could treat this as a hypothesis and compare it with descriptions of blockchain decentralization and real-world examples (permissioned vs permissionless) to evaluate plausibility.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
Strength: 5/5
“A cryptocurrency is a digital money transferred over the internet. Cryptocurrencies are based on the decentralized ledger-based blockchain technology which seeks to make the currency system decentralized, unlike the present government-issued centralized form. Some popular cryptocurrencies are Bitcoin, Ethereum, etc. However, the cryptocurrencies have the following disadvantages: • These are not backed by any physical assets, unlike the gold reserve in case of fiat currencies. • It is still prone to hacking, and there have been instances of theft of Bitcoins from digital wallet, making them risky. • The anonymity in use of cryptocurrencies may actually facilitate several illegal activities like terror funding, smuggling, drugs trade, money laundering and other criminal activities.”
Why relevant
States that cryptocurrencies are 'based on the decentralized ledger-based blockchain technology' which 'seeks to make the currency system decentralized, unlike ... centralized form' — implying absence of single controller.
How to extend
Combine this with the definition of 'decentralized' to infer whether development and deployment might occur without central permission (i.e., open networks vs controlled platforms).
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > What are Crypto currencies? > p. 77
Strength: 4/5
“For solving the puzzles, these systems are rewarded with crypto currencies. This process is called mining. At the backend of these transactions is technology called blockchain.• Crypto currencies derive their value as they can be mined/generated only in limited numbers. The willingness of people to hold/possess it impacts the price of the crypto currency (asset) in the same way as the gold price gets impacted.• They are neither legal tenders nor fiat currency.”
Why relevant
Describes mining and that systems are rewarded for solving puzzles on the blockchain backend, illustrating an open participation mechanism (miners) contributing to the network.
How to extend
Use the open-mining example to reason that some blockchain systems allow participants to join and run applications without prior authorization.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.31 Previous Years Questions > p. 118
Strength: 5/5
“Select the correct answer using the code given below. • (a) (i) only• (b) (ii) only• (c) Both (i) & (ii)• (d) Neither (i) nor (ii)• 25. With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? [2016] • (i) Bitcoins are tracked by the Central Banks of the countries.• (ii) Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.• (iii) Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below. • (a) (i) & (ii) only• (b) (ii) & (iii) only• (c) (iii) only• (d) (i), (ii) & (iii)• 26.”
Why relevant
Notes 'Anyone with a Bitcoin address can send and receive Bitcoins from anyone else', which exemplifies permissionless transaction capability on a public blockchain.
How to extend
A student could generalize that if value transfer can be done by any address, some applications built on similar public chains might likewise not require centralized permission.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Use of Blockchain technology in Warehouse Receipt Finance > p. 373
Strength: 4/5
“"Whrrl" is a start-up which provides "blockchain platform" for warehouse receipt financing and it has now on boarded Maharashtra State Coop bank as a lender on this platform. Earlier, the loan process for farmers used to take 7-15 days with a lot of documentation and verifications but now "Whrrl" allows the transfer of the loan amount to farmers in just five minutes in a secure and transparent way. Whrrl's solution combines blockchain along with IoT and Smart Contracts to make it easier for farmers to get loans against any commodity lying in the warehouse without any guarantors. For the banks, it becomes a risk-free lending process and brings transparency into the system.”
Why relevant
Describes a startup ('Whrrl') using a blockchain platform to onboard a state coop bank and enable faster loan processes, an example of a permissioned/industry-specific deployment.
How to extend
Contrast this permissioned, institution-onboarded use with public-blockchain examples to test whether 'without anyone's permission' applies universally or only to some blockchains.
Pattern takeaway:
UPSC Science & Tech questions follow the 'Possibility Principle'. Statements claiming a technology is restricted to a single use-case (like Stmt 2) are almost always false. Statements describing broad, permissive features (like Stmt 3) are usually true.
How you should have studied
- [THE VERDICT]: Sitter via Elimination. Statement 2 is logically flawed (extreme 'only'). Source: General Tech Awareness + Nitin Singhania (Ch 8 Practice Qs).
- [THE CONCEPTUAL TRIGGER]: Science & Tech > Emerging Technologies > Digital Infrastructure (DLT, Web 3.0, Crypto).
- [THE HORIZONTAL EXPANSION]: Memorize these siblings: 1) Public vs. Private (Permissioned) Blockchain. 2) Proof of Work (PoW) vs. Proof of Stake (PoS). 3) Smart Contracts (Ethereum). 4) NFT (Non-Fungible) vs. Fungible Tokens. 5) Zero-Knowledge Proofs (ZKPs).
- [THE STRATEGIC METACOGNITION]: When studying tech, never stop at the definition. Always ask: 'Is this limited to one sector?' (No, tech is general-purpose). 'Who controls it?' (Decentralization). 'How do I build on it?' (Open source/Permissionless).
Concept hooks from this question
👉 Distributed Ledger Technology (DLT) vs Centralized Ledgers
💡 The insight
Blockchain is described as a decentralized or distributed ledger, contrasting it with centralized record systems.
High-yield for UPSC because questions probe governance, financial infrastructure and decentralisation; mastering this clarifies policy debates on control, regulation and systemic risk. It links to topics on cryptocurrencies, central bank digital currencies, and financial sector regulation and enables comparative questions on centralized vs decentralized systems.
📚 Reading List :
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Advantages of CBDC > p. 79
🔗 Anchor: "Whether blockchain technology is a public ledger that anyone can inspect."
👉 Transparency and Auditability in Blockchain
💡 The insight
Blockchain is associated with transparency and secure transfer, which bears on whether records can be inspected or audited.
Important for answering questions on accountability, traceability and misuse risks (e.g., money laundering) in digital payments. Understanding transparency helps tackle questions about privacy trade-offs, regulatory oversight and applications in supply chains or finance.
📚 Reading List :
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Use of Blockchain technology in Warehouse Receipt Finance > p. 373
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
🔗 Anchor: "Whether blockchain technology is a public ledger that anyone can inspect."
👉 Blockchain as Infrastructure for Cryptocurrencies and Digital Payments
💡 The insight
Blockchain/DLT is repeatedly tied to cryptocurrencies and payment systems in the material.
Useful for questions on CBDC design, the role of private crypto vs regulated digital currencies, and fintech policy. This concept connects technology to macro-financial policy, regulation and inclusion issues that frequently appear in prelims/mains.
📚 Reading List :
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > What are Crypto currencies? > p. 77
🔗 Anchor: "Whether blockchain technology is a public ledger that anyone can inspect."
👉 Decentralized public ledger
💡 The insight
Blockchain is a public ledger architecture designed so no single user or authority controls the record of transactions.
High-yield for definitions and conceptual clarity in polity and economy questions; helps compare governance models (centralized vs decentralized) and answer questions on transparency, trust and distributed governance. Enables answers on technology fundamentals, system design, and limits of centralized oversight.
📚 Reading List :
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 245
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
🔗 Anchor: "Whether blockchain technology is not controlled by any single user or authority ..."
👉 Distributed Ledger Technology (DLT) vs centralized currency
💡 The insight
Blockchain/DLT underpins cryptocurrencies to decentralize the currency system, contrasting with government-issued centralized money.
Useful for policy and economics essays and mains answers on digital currencies, CBDC design choices and trade-offs; connects to topics on monetary sovereignty, financial infrastructure, and technology adoption strategy.
📚 Reading List :
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Advantages of CBDC > p. 79
🔗 Anchor: "Whether blockchain technology is not controlled by any single user or authority ..."
👉 Central bank control and independent cryptocurrencies
💡 The insight
Independent cryptocurrencies built on blockchain can operate outside central bank control and may affect financial-system authority.
Important for debates on regulation, financial stability and CBDC policy; equips aspirants to discuss regulatory responses, risks of private digital currencies and reasons for central bank digital currency initiatives.
📚 Reading List :
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Why RBI launched e-Rupee? > p. 78
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
🔗 Anchor: "Whether blockchain technology is not controlled by any single user or authority ..."
👉 Blockchain as a general-purpose distributed ledger (not limited to cryptocurrency)
💡 The insight
Blockchain is a form of distributed ledger technology that can be applied to record and transfer many types of information, not solely cryptocurrency transactions.
High-yield for questions on fintech, digital governance and public policy: distinguishes underlying technology (DLT) from one particular use-case (cryptocurrencies). Helps tackle questions comparing tech capabilities with sectoral applications (payments, identity, records). Links to topics in economy, banking and digital infrastructure policies.
📚 Reading List :
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CRYPTOCURRENCIES > p. 160
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Advantages of CBDC > p. 79
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Use of Blockchain technology in Warehouse Receipt Finance > p. 373
🔗 Anchor: "Whether the structure and design of blockchain technology restricts all data sto..."
The 'Next Logical Question' is on Zero Knowledge Proofs (ZKPs) or 'Soulbound Tokens'. Since they asked about the public nature of the ledger, they will likely ask about privacy layers on top of it (how to verify age without revealing birthdate).
Apply the 'Technological Evolution' Logic. Technology evolves to find new uses. Statement 2 says blockchain data is about cryptocurrency *only*. This implies the tech cannot be adapted for anything else (like voting or medical records). This defies the nature of software. Eliminate 2 → Answer is likely D.
Mains GS-3 (Internal Security & Economy): Contrast Blockchain as a tool for 'Money Laundering' (Layering stage via crypto) vs. Blockchain for 'Good Governance' (Tamper-proof Land Records and PDS Supply Chain tracking).