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The way information is stored on the blockchain, it is impossible to alter any information on it: once a block has been created and verified it cannot be tampered with and neither the previous blocks on the chain
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A normal database can be changed by whoever is storing it, a blockchain will add new information without deleting any data and no new information can be added without the approval/confirmation of all nodes
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As information cannot be tampered and not a single entity will be able to add new information without the approval of the network it is a reliable source for auditing and archival for back-check of information
Homework on Provenance - Questions
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How does blockchain enable digital provenance? — In short provenance is achieved due to transactions / entries into the database that are non removable and traceable through its open ledger.
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Why doesn’t a normal database bring the same provenance? — Normal databases do not bring the same provenance as the database entries can be edited.
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Why is digital provenance such a great benefit to many businesses? — The primary benefit is a transparent secure permanent data record. From that many other benefits to can be achieved for both business and client.
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Homework on Provenance - Questions
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How does blockchain enable digital provenance?
Because blockchain is decentralized and immutable (for bitcoin anyway) we now can verify code with math and not have to trust a 3rd party with, lets say, the intricacies of a supply chains, for example.
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Why doesn’t a normal database bring the same provenance?
A normal database is centralized so we have to trust the people running the central database servers that they will not compromise us.
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Why is digital provenance such a great benefit to many businesses?
It is a great benefit because of the transparency, the lack of trust you need and could very well lead to "real time" auditing.
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How does blockchain enable digital provenance?
There must be a consensus between all nods on the blockchain network for the blockchain to be modified.
Information in the blockchain can not be removed once its’ been verified.
Transactions on the blockchain can be tracked by everyone in real time. I guess if everything is on blockchain, everything can be can be traced every step of the way back to it’s source.
This is true only for public decentralised blockchains. To my understanding not all blockchains are created equal… please correct me if I’m wrong.
Why doesn’t a normal database bring the same provenance?
A normal database is always centralised and can be manipulated. Provenance is based on trust with a normal database and not trustless as a decentralised blockchain
Why is digital provenance such a great benefit to many businesses?
No part of the supply chain can be trusted anymore than the suppliers can be trusted. If provenance is trustless your business does not have to trust information from suppliers. Blockchain solves this.
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- By relying on an immutable data store: whatever information is saved into blockchain, it stays there. It allows to go back thorough the chain elements and verify the state of the chain at each point of its existence.
- A normal database can be overridden, which means there’s no guarantee the information remain unchanged, and that’s why it’s impossible to verify the data from the past.
- It removes a need for trust, which is sometimes equal to a guess/belief, that something happened the way we think it happened (i.e. producing food/clothes).
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Blockchain enables digital provenance by allowing information to be stored verified and then shared in a distributed fashion. Once the information is shared and verified to be correct by other nodes (consensus) on the network via proof of work the block containing the information is added to the blockchain. It is immutable because its hash is dependent on the information and values creating the hash of the previous block meaning the data cannot be manipulated. This is important as it creates trustlessness meaning transactions or information on the chain is transparent. the security really comes down to the hash rate & ecryption of the blocks
A key factor of this provenance is the distributed nature of the blockchain, no centralised server for stroing the imformation means there room for manipulation of the the records.
The 2nd key factor to achieving provenance is the the blockchain being either permissioned or public. This allows either anyone (public) or any users (permissioned) to be able to see and verify any transactions/exchanges/data that takes place on any given block throughout the history of the chain. This means the chain is compeltely transparent and can allow this trustlessness.
- A normal database isnt going to allow the same provenance because the information is stored on a centralised server which is controlled by a single entity. This means this entity has control over the information as is able to manipulate or falsify any records of that information.
A key issue is that there is no way for users to verify the information, and trust is needed by users to beleive the information on this server has been inputted correctly (if at all). Supply lines cannot be traces if information is missing or incomplete meaning transactions cannot always be traces if human error occurs (or again manipulation.)
Additionally a normal ledger is not as secure as a blockchain meaning that if it is subject to a hack information could be altered or changed. There simply is no transparency or traceability to lead to trustlessness - Meaning no provenance.
- Digital provenance is a huge benefit to businesses for a number of reasons.
Firstly it allows for processes such as auditing intra-company to become more efficient. Take the example that a telesales company audits all of its sales calls to ensure that agents are following regulations. Usually companies would record calls and have an agent review the sales call to ensure gov regulations are met. However this is time consuming and often only a percentage of calls are listened to. By having digital provenance in the form of a permissioned blockchain, the company is able to verify 100% of the sales calls using algorithms eliminating the need for a compliance department altogether. This means that the company is able to become more efficient by reducing costs while also improving quality assurance in the process.
on a larger scale it can allow companies to look intra-company at all of the processes, including work done by individuals and departments. Because all the information of the process is on the network (on the blockchain), companies can ensure that workers are adhering to the best standards (again quality assurance) but also can ensure materials are used that are of an acceptable standard that follow the companies model (quality control). A good example of this is how a company can track the purchases of goods or services by a manager of a maintenance team at a leisure centre. On a normal database the manager could just purchase from any supplier and put the information on the database without the company knowing the process he went through. By using a blockchain and having digital provenance the company can see the process then manager went through in selecting a supplier, thus ensuring he is making decisions for the benefit of the company rather than for his own pocket. (ie choosing the cheapest deal/best quality) Additionally they are able to see how long the process took and if he is working efficiently.
It is almost impossible to explain all of the benefits to a business that digital provenance provides without writing an entire essay on the benefit to a company in terms of efficiency, QA & QC etc.
Furthermore the benefits of digital provenance to businesses is huge when working between two different businesses such as suppliers -> wholesaler -> retailer, and even companies coming together to work on a project. inter-organisational cooperation can be done in trustless way without the need for an intermediary and as a consequence of this it cuts out huge costs that companies face in the way of having a 3rd party verify and ensure that both parties are adhering to their side of the deal (thus eliminating the need for contracts, investigations etc). On top of this it would also lead to less regulation from governments on sectors which have complete digital provenance as all the information can be verified as it is transparent and traceable. While this is a benefit to economies and goverments reducing costs it is also a huge benefit to businesses as well as regulation often leads to increased costs, ie costs of production or costs in legal disputes and changes in processes to fit regulations.
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How does blockchain enable digital provenance?
By having a public ledger with immutability. Information can be added but can not be erased in addition to every transaction being verified by a network of computers. -
Why doesn’t a normal database bring the same provenance?
Current databases are centralized, having to have administrators who determine access to other users. Information can also be deleted and changed over time, making it easier for fraud. Real-time auditing is also not possible since the transactions have not been verified by other public ledgers. -
Why is digital provenance such a great benefit to many businesses?
It is great because nowadays there is a lot of fraud and secrecy with existing products. Supply chains work on a basis of trust rather than a structured verifiable process. Being able to use digital provenance allows for the different stakeholders to be able to trace the item/product origin and destination. Providing a more resilient product without the worry of things like “child labour”, toxic chemicals used in products.
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Actually I don’t get it how blockchain brings any benefit when it comes to provenance. Maybe I am missing something, but the way I see it, blockchain works amazing for something like bitcoin(or other cryptocurrencies), but when you bring in data from outside the blockchain, trustfulness takes a big blow. Either a sensor or a human passes data to the blockchain when it comes to tracking the journey of a product right?
So you have to trust that the sensor hasn’t been tampered with or you have to trust the human. If that’s the case, why bother with blockchain at all and not trust the same data inserted into a Mysql db?
I can see Oracles working in other types of situations, but for provenance?
1.Blockchain enables digital provenance because of the decentralized nature of the system. Once a transaction is done it cant be edited or removed .Transactions are tracked in real time viewable to anyone. Allowing audits to take place in real time. Giving users the ability to see funds move from wallet to wallet.
2. A normal database does not bring the same provenance as blockchain because its centralized and means not necessarily everyone can access that database, and often times those with access will use it for nefarious means. Hiding funds and transactions to the public or those who would be interested in investing.
3. Having digital provenance is such a great benefit to many businesses because it allows users or investors the trust they need to make an accurate assessment of a companies funding, funds, and performances. Gives the ability to have full and immediate access to a companies ledger to asses the origin or product to the shelf.
**How does blockchain enable digital provenance?**
Blockchain enables digital provenance by allowing all parts of a series of events to be audited in real time.
**Why doesn’t a normal database bring the same provenance?**
A normal database is not structured in a way to provide the auditing in real time capabilities of a blockchain database.
**Why is digital provenance such a great benefit to many businesses?**
Many businesses can benefit from digital provenance by reducing time and money spent on redundancy, this effectively cuts out the middle man from the equation.
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Blockchain enables digital provenance is the following ways:
- Data can only be added and not removed, duplicated or manipulated.
- The data on the blockchain is immutable
- Transparency of the blockchain allows for easy verification
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A normal database doesn’t bring the same provenance because:
- Data in a normal database can be removed, duplicated and manipulated.
- The data in a normal database is mutable
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Digital provenance is a great benefit to many businesses because:
- It will allow the business to track and trace the origin of all of the ingredients/components in their
products - It can remove the need for trust between the manufacturer of a product and the supplier of the
products ingredients or component parts - It will be able to remove the need for outside auditors, as it can provide real-time auditing by
combining the accounting layer with the transaction layer
- It will allow the business to track and trace the origin of all of the ingredients/components in their
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Blockchain enables digital provenance because all transactions are tracked and recorded on the blockchain in real time. This ability to record, verify and trust the blockchain database enables to see the history of whatever is being recorded.
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A normal database and the product/asset isnt integrated with the product itself that is constantly being verified and tracked in real time. This means in a normal database information can be erased, manipulated or stolen. It is also not public so there is an extra layer of trust needed between the business or owner that is required to get information about the product or asset you have.
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It will make auditing incredibly easy and gets rid of the need to trust a business, you are either working with or buying from, to provide the product they say they are. For example how do I know where my clothes were made from. With blockchain you can see where the materials came from, where they are processed, where they were shipped, the distributor they came from, the store they were stocked at and the address that purchased the clothes. So for B2B if you are buying material you want to make sure its actually what they say it is and blockchain can confirm that in real time.
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How does blockchain enable digital provenance?
Public blockchain which uses UTXO (as opposed to account) model allow users to verify transactions and use various techniques to track all transactions up to genesis block. -
Why doesn’t a normal database bring the same provenance?
Normal database is centralised hence susceptible to data manipulation, and needs external audit to verify its integrity. With open blockchain every transaction is verified by thousands of node (which is real-time auditing) and once a block is formed, after sometimes it is almost impossible to reverse the transaction making its integrity of the highest standard. -
Why is digital provenance such a great benefit to many businesses?
Business has all the receipt, book keeping , auditing service and most importantly TRUSTLESSNESS in the same network. Now they can focus on their primary product/service.
Imagine the provenance problem is a puzzle. Blockchain solved the on-chain/ digital aspect of the puzzle. Now does it solve the whole problem, no but maybe half. So if we can find a way to verify off-chain data that come from sensors/human input that would complete the puzzle.
Wise decision!
I really like your homework by the way!
I also need to do the Privacy course of @Grant_Hawkins, I already did a couple of videos because I was extremely curious 
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Immutability, all data is store only - provided more than 50% of the distributed ledgers/blockchains online have recorded the data there is no practical way of erasing or changing it.
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Read-write is always possible at some level of privilege.
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Knowing the data cannot be altered in any way makes all types of trustless systems possible. (As all technology opens for abuse there will probably be completely falsified blockchains in the future, Potemkin-style projects and so on)
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- How does blockchain enable digital provenance?
- Provenance is about the ability to track something, in the case of blockchain, it allows for the tracking of transactions.
- Why doesn’t a normal database bring the same provenance?
- Most normal databases require some kind of trust amongst different parties using the database.
- Why is digital provenance such a great benefit to many businesses?
- Transparency allows for real time auditing.
- Combining the Accounting layer and Transaction layer.
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- It enables it by having MATH and code Auditing pretty much everything in real time. So a Trusstless system can be born. Deposit faith in math and code that can be VERIFIED, not in military power.
2)It does not because it’s not auditable by everyone. Making the owners of the database the sole responsible for the “truth” in the same database
3)Because it brings transparency and accountability into play. It enables the possibility for verification of the quality, ranging from the materials used to the type of labor used.
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- Blockchain is like a stone so every transaction that is written on it could never be erased. Blockchain allows to track the provenance of a transaction. Blockchain is public ladger where every transaction can be traced back.
- A normal database is centralized and transaction can be removed or erased, good platform for fraud and manipulation.
- Digital provenance, no more trust, just matematic and verification.
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Thanks!
Yes you should, pretty interesting so far. I finished the Bitcoin 101 course a couple days ago and am now working on the Privacy course. You’ll likely be familiar with the basics already- structure of bitcoin transactions, elliptic curve, HD wallets- but I’ve already learned some cool things about the early privacy days like BitLaundry and then CoinJoin. BTW who in their right mind would name their website “BitLaundry”? It has money laundering right in the name! 
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