[Solved] 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.

Q20. 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?

a. 1 only

b. 1 and 2 only

c. 2 only

d. 1 and 3 only

Answer: d

· 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.’

· The words “block” stands for digital information and “chain” stands for public database. Specifically, they have three parts: Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase from any online site that works on a blockchain principle.

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

· Blockchains can be both permissioned and no permissioned (permissionless). Public blockchain, typically permissionless as well, is the type associated with Bitcoin (the application depends on the basic features), 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.

Blockchain Technology

· Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system

Permissionless vs. Permissioned Blockchains

Public Blockchains

· Public blockchain are permissionless in nature, allow anyone to join, and are completely decentralized.

· Public blockchains allow all nodes of the blockchain to have equal rights to access the blockchain, create new blocks of data, and validate blocks of data.

· To date, public blockchains are primarily used for exchanging and mining cryptocurrency eg-Bitcoin, Ethereum, and Litecoin

Private (or Managed) Blockchains

· Private blockchains, which may also be referred to as managed blockchains, are permissioned blockchains controlled by a single organization.

· In a private blockchain, the central authority determines who can be a node.

· The central authority also does not necessarily grant each node with equal rights to perform functions.

· Private blockchains are only partially decentralized because public access to these blockchains is restricted.

· Some examples of private blockchains are the business-to-business virtual currency exchange network Ripple and Hyperledger, an umbrella project of open-source blockchain applications.