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CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC

A GIFT City fintech, Ledgerline Services, proposes a shared distributed ledger in which several banks record trade-finance documents so that every participant sees the same tamper-evident record without a single central database. Which feature of blockchain is mainly relied on for this benefit?

The benefit comes from a replicated, append-only ledger whose entries are validated by consensus among participants. Because every participant holds the same record and past entries are hard to alter unnoticed, the data is tamper-evident without a central database. A single editor or one-machine storage would remove this advantage.

  1. AA single administrator who can edit entries at will
  2. BReplication of an append-only record across participants, with entries validated by consensusCorrect
  3. CStoring records only on the machine of the largest bank
  4. DEncryption that prevents any participant from reading the data

Explanation

A blockchain keeps a replicated, append-only ledger validated through consensus, so past entries are hard to alter unnoticed. A single editing administrator defeats this. Storage on one bank's machine is centralised. Participants in a shared ledger are able to view the permitted records, so total unreadability is not the feature.

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