Blockchain technology – UPSC Prelims

Blockchain Technology:
  • It is a decentralised digital ledger that records transactions on thousands of computers globally in such a way that the registered transactions cannot be altered retrospectively.
  • It is a secured way of conducting online transactions and its use removes the characteristic of infinite reproducibility from a digital asset.
  • In case of cross border remittances, its use enables instant transfer of money as against the current system that takes about a week for the same.
  • It is anĀ incorruptible digital ledger for storing data across a peer-to-peer network.
  • Information is held on blockchain through shared database which can be accessed on real-time basis.
  • This database is not stored on physical servers but on cloud, which makes it easy to store unlimited data.
  • Blockchain technology is not controlled by any single entity and has no single point of failure.
  • It is transparent and incorruptible.
  • It is kind of self-auditing ecosystem of digital value and blockchain network automatically checks every transaction that happens in it.

  • It is the technology behind crypto-currencies.
  • Each block comprises of a hash pointer that acts as a link to a previous block. Along with those it comprises of a timestamp and transaction data.
  • Blockchains are resistant technologies to modification of the data.
  • It can also be used in smart contracts, supply chain management logistics, sharing economy, crowdfunding, governance, file storage and date management and IoT.

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