Which of the following statements regarding the features of blockchain technology are correct?

1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration.
2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds.
3. Consortium ‘blockchain is a blend of public and private blockchains allowing selective data access.
4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted.

Select the answer using the code given below:

1. 1 and 3
2. 2 and 4 only
3. 1, 2 and 4
4. 1 and 4 only

Explanation

Statement 1 is correct

• Blockchain technology ensures both transparency and data security. Transactions recorded on a blockchain can be viewed by authorised participants within the network, while the data remains highly secure because each record is cryptographically protected and linked to preceding records, making unauthorised alterations extremely difficult.

Statement 2 is correct

• Blockchain is a distributed ledger where identical copies are maintained across multiple nodes in a network.

Statement 3 is incorrect

• Blending public and private blockchain features describes a hybrid blockchain, not a consortium blockchain. A consortium blockchain is controlled jointly by multiple organisations.

Statement 4 is correct

• Cryptographic hashing makes it computationally infeasible to change or delete any data once it has been recorded and accepted.

Answer: (c) 1, 2 and 4; Difficulty Level: Medium