Blockchain technology – UPSC Prelims

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 an 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.