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04 JUNE, 2017 (MAINS)

TODAYS ANSWER WRITING CHALLENGE FROM GS-IV

 

Q1.  What do you understand by Block-Chain Technology? Describe the diverse set of applications of this technology. Also discuss in detail, the main advantages of this technology. (200 words)

 

Please write the answer in comments section

  • Ashish

    A blockchain is an anonymous online ledger that uses data structure to simplify the way we transact. Blockchain allows users to manipulate the ledger in a secure way without the help of a third party.
    A bank’s ledger is connected to a centralised network. However, a blockchain is anonymous, protecting the identities of the users. This makes blockchain a more secure way to carry out transactions.
    A blockchain is a distributed database that is used to maintain a continuously growing list of records, called blocks.
    Each block contains a timestamp and a link to a previous block.
    A blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks.
    By design, blockchains are inherently resistant to modification of the data. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks and a collusion of the network majority
    APPLICATIONS
    Major applications of blockchain include
    Cryptocurrencies—including bitcoin, BlackCoin, Dash, and Nxt
    Blockchain platforms can be used for:
    A distributed registry like Factom
    Decentralized messaging like Gems
    Decentralized applications like MaidSafe
    Honduras government has put all land records on a public ledger – the blockchain. The minute there is a change in ownership, it gets recorded publicly.
    The Australian Securities Exchange (ASX) announced this year that it would move Australia’s equities clearing and settlement system on to blockchain.
    Decentralized voting like Tezos
    Frameworks and trials such as the one at the Sweden Land Registry aim to demonstrate the effectiveness of the blockchain at speeding land sale deals.
    The Republic of Georgia is piloting a blockchain-based property registry.
    Advantages
    Decentralization
    By storing data across its network, the blockchain eliminates the risks that come with data being held centrally. Decentralised blockchains may use ad-hoc message passing and distributed networking. Its network lacks centralized points of vulnerability that computer hackers can exploit or any central point of failure.
    Permission less
    The great advantage to a public blockchain network is that guarding against bad actors is not required and no access control is needed. This means that applications can be added to the network without the approval or trust of others, using the blockchain as a transport layer.
    User friendly
    Open blockchains are more user friendly than some traditional ownership records, which, while open to the public, still require physical access to view

  • Osho Korde

    A blockchain – originally block chain – is a distributed database that maintains a continuously growing list of records, called blocks, secured from tampering and revision.

    Different uses of Block-Chain Technology:
    1. Smartcard payments
    Contactless payment cards that can processes transactions through blockchain almost instantly are almost instantly expected to enter commercial production by the end of 2017.

    2. Supply chains
    A British startup called Provenance has developed a platform that uses blockchains to track the origins of raw materials across global supply chains.

    3. Tracking taxpayer money
    could use the blockchain to track money, including student loan and international aid money,

    4. Online voting
    Online voting adoption has yet to take off, mainly due to fears that it is insufficiently secure. Some argue the blockchain could change that thanks to immutable, transparent nature.

    Advantages of Block-Chain Technology.

    • Disintermediation & trustless exchange.
    • Empowered users.
    • High quality data.
    • Durability.
    • reliability, and longevity.
    • Process integrity.
    • Transparency and immutability.
    • Ecosystem simplification.
    • Faster transactions.
    • Lower transaction costs.

    Successful exploration of blockchain technology by the country’s central bank will also help the growing Indian Bitcoin community. In the recent days, the country has seen a dramatic increase in Bitcoin adoption and the government’s openness to the technology can translate to a lenient regulatory view towards the cryptocurrencies.