With reference to Blockchain Technology consider the following statements:It is a public ledger that

Question

With reference to Blockchain Technology consider the following statements:It is a public ledger that everyone can inspect, but which no single user controls.The structure and design of blockchain is such that all the data in it are about cryptocurrency only.Applications that depend on basic features of blockchain can be developed without anybody's permission.Which of the statements given above is/are correct?

Accepted Answer

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. Hence, statement 1 is correct.The words block stand 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 about who is participating in transactions. Instead of using your actual name, your purchase is recorded without any identifying information using a unique digital signature, sort of like a username.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.Hence, statement 2 is not correct. Blockchains can be both permissioned and non-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 a high degree of decentralization. In private permissioned blockchain, a trusted entity controls the validation and writing of data permissions. Hence, statement 3 is correct.