Blockchain

Why in news?

• IT firm Tech Mahindra has said it will roll out a blockchain-based open-source system to track vaccine supply chains worldwide.

What is Blockchain technology?

• A Blockchain is a growing list of records called blocks or ledgers, which are linked using cryptography.

Features of Blockchains:

• Blockchain keeps a record of all data exchanges and each data exchange is a “transaction“. Every verified transaction is added to the ledger as a “block”.
• It utilizes a distributed system to verify each transaction — a peer-to-peer network of nodes.
• Once signed and verified, the new transaction is added to the blockchain and cannot be altered.

Applications of blockchains:

• The primary use of blockchains today is as a distributed ledger for cryptocurrencies, most notably bitcoin.
  • A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.
• Blockchain-based smart contracts are proposed contracts that digitally facilitate, verify, or enforce the negotiation or performance of a contract.
• Financial industry and banks are implementing distributed ledgers to increase efficiency, reduce costs and speed up back office settlement systems.
• Stock exchanges are experimenting with Blockchain technology to streamline time-consuming and inefficient processes involved in trading securities.

Prelims Question

Consider the following sectors-
1.Banking  
2.Agriculture 
3.Healthcare and Pharmaceuticals 
4.Property Transactions
5.Education 
Blockchain Technology can be utilized in which of the above sector(s) in India?
(a)1 only
(b)1,3 and 4
(c)2,3 and 4
(d)1,2,3,4 and 5

Answer to prelims question