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: