Blockchain Technology: Applications Beyond Cryptocurrency
TOPIC CLASSIFICATION
Subject: Science & Technology Sub-area: Emerging Technologies Prelim PYQ Trend: Moderate (questions on concept, applications) Mains Relevance: GS-3 (Technology, Economic Development)
EXAMINER REASONING
Blockchain is a favourite UPSC topic because it straddles technology, economy, and governance. The examiner tests: (a) technical understanding - distributed ledger, consensus mechanisms, smart contracts; (b) applications - supply chain, land records, healthcare, voting; (c) regulatory stance - cryptocurrency ban (March 2020 RBI circular struck down), Cryptocurrency Bill; (d) India's initiatives - National Blockchain Framework, Blockchain-as-a-Service (BaaS). The examiner expects you to distinguish blockchain from cryptocurrency and focus on governance applications.
Core Concept
Definition: Blockchain is a distributed, decentralised, immutable ledger that records transactions across a network of computers. Each block contains a cryptographic hash of the previous block, timestamp, and transaction data.
Key Features:
- Decentralisation: No single point of control or failure
- Immutability: Once recorded, data cannot be altered without network consensus
- Transparency: All participants can verify transactions (permissioned/permissionless)
- Security: Cryptographic hashing (SHA-256) and consensus mechanisms
- Smart Contracts: Self-executing contracts with terms directly written in code
Types of Blockchain:
| Type | Access | Use Case |
|---|---|---|
| Public/Permissionless | Anyone can participate | ... |
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