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Which of the following statements regarding the features of blockchain technology are correct?
1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.
2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.
3. Consortium blockchain is a blend of public and private blockchains allowing selective data access.
4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.
Select the answer using the code given below:
Explanation
Blockchain technology has several core features, as highlighted in NITI Aayog's strategy paper on blockchain:
- Adjustably Transparent: Records stored in the database may be made visible to relevant stakeholders without risk of alteration. (Statement 1 is correct)
- Distributed: Copies of the entire database are stored on multiple computers on a peer-to-peer network, syncing within seconds or minutes. (Statement 2 is correct)
- Immutable: Cryptographic and mathematical algorithms make it impossible to change or delete any data once it is recorded and accepted by the network. (Statement 4 is correct)
Statement 3 is factually true but contextually incorrect: A consortium blockchain is indeed a hybrid of public and private blockchains. However, it is a type of blockchain architecture, not a general feature of blockchain technology itself. Furthermore, the given options do not include a choice where all four statements are correct, making 1, 2, and 4 the most accurate selection for the features of the technology.
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic UPSC tech question blending static concepts (DLT, immutability) with current affairs nuances. While basic economy books cover statements 1 and 4, statements 2 and 3 are deliberate traps testing your depth of understanding regarding network realities and specific definitions (Consortium vs. Hybrid).
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Blockchain platforms facilitate secure and transparent transfers of loan amounts and documentation.
- The technology brings transparency into systems like warehouse receipt financing, allowing stakeholders to track transactions.
- Blockchain is a form of Distributed Ledger Technology, which provides a trusted and secure framework for digital assets.
- The technology ensures safety and trust in digital payments, which are essential for maintaining reliable records.
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