With reference to Blockchain Technology
With reference to "Blockchain Technology", consider the following statements:
- It is a public ledger that everyone can inspect, but which no single user controls.
- The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
- Application that depend on basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
- 1 only
- 1 and 2 only
- 2 only
- 1 and 3 only
Answer: D
Explanation
Blockchain can be defined as a distributed ledger technology that can record transactions between parties in a secure and permanent way. By ‘sharing’ databases between multiple parties, blockchain essentially removes the need for intermediaries who were previously required to act as trusted third parties to verify record and coordinate transactions.
It is a foundational technology or a platform that allows designing a secure way to record transactions and circulate it among signatories, or any kind of target group with an Internet connection. At its core it is an extremely democratic ledger that cannot be arbitrarily manipulated and easily shareable. Hence, statement 1 is correct.
The structure of block chain to eliminate intermediary and enhance authentication such that it supports wide range of applications in health, education, governance, diamond industry, financial sector, etc. Hence, statement 2 is not correct.
Most of the applications using block chain technology do not fulfil the criteria of patent filing in Blockchain Technology. Distributed ledger in peer to peer network is used for recording the transactions which does not generate much confidence in getting the patent as it is like getting a patent for an algorithm or Computer Program and as per Indian Patent Act, 1970, Section 3(k) which states that "a mathematical or Business method or a computer program per se or Algorithms" are not patentable.
As per the ruling of Delhi High Court in the 2014 case of Ericson Vs Intex, the court stated that any invention which has a technical contribution or has a technical effect and is not merely a computer program per se as alleged by the defendant and the same is patentable". Hence, statement 3 is correct.
- Exam Year: 2020