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5) What do you understand by blockchain technology. Discuss its potential applications in  the economic and political spheres of our life.(250 words)

TopicScience and Technology- developments and their applications and effects in everyday life.  Awareness in the fields of IT, Space, Computers, robotics, nanotechnology, biotechnology and issues relating to intellectual property rights.

5) What do you understand by blockchain technology. Discuss its potential applications in  the economic and political spheres of our life.(250 words)

Reference

Reference

Economic times

Why this question

Blockchain technology has been in news for all the good and the bad reasons. The technology is not only revolutionary but also foundational in the sense other systems/ applications can be built on it. The issue is related to GS 3 syllabus under the following heading-

Science and Technology- developments and their applications and effects in everyday life.

Awareness in the fields of IT, Space, Computers, robotics, nanotechnology, biotechnology and issues relating to intellectual property rights.

Key demand of the question

The question wants us to express our understanding of blockchain Technology- how it works, what are its special features which give it a revolutionary and disruptive character. It also wants us to list its possible applications in the economic and political spheres in the near future.

Directive word

Discuss- this is an all-encompassing directive. We have to write in detail about the key demand of the question. We should give examples wherever possible.

Structure of the answer

Introduction– give a brief definition of blockchain Technology. This is one of the best and most simple definition that I could find. The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

Body

  1. Explain the mechanism behind blockchain Technology. For illustration purpose, you can draw a rough diagram also. Take help of the articles attached to the question to frame your answer.
  2. Enlist the possible applications of blockchain Technology in economic and political spheres. e.g sharing economy can be transformed through the use of blockchain technology, elections, decision making, public records, file storage, decentralized distribution of IPR material, tackling spam SMS etc.

Conclusion– mention the transformative, disruptive and foundational character of the blockchain technology. Also, mention the need for proper regulation and development of the technology in order to minimise the potential misuses.