Homework on Provenance - Questions

Blockchain and Bitcoin 101
#1922

1. How does blockchain enable digital provenance?

This is achieved by sharing the data over a network of computers who must all be in agreement with the transactions being made. They must be verified and confirmed by multiple. You cannot delete, only add to it.

2. Why doesn’t a normal database bring the same provenance?

Normal databases are typically centralized. Corrupt the only ledger which is relied upon and you don’t have other ways of verifying that it’s been changed.

3. Why is digital provenance such a great benefit to many businesses?

Businesses can trace the point of origin of the products they use. Instead of taking the labels that are printed and slapped on the product at face value, they can see exactly where the many components they use in the final product originated from. This applies to so many industries, namely food distribution, cosmetics, apparel (for authenticity) and many more.

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#1923

Thank You,

We are all new to this. I am not a techie at all.

I’ve actually taken a break as I’ve been ill for most of the year, but I’m getting back to good health and have renewed my subscription.

So I can finish this course, and then take another one. Keep up the good work, and keep working your way through the units. You’ll be putting yourself in the top 1% because you can be sure that very few people know this stuff. :slight_smile:

3 Likes
#1924

  1. We are able to access the ledger and trace all transactions and history.

  2. A normal database’s data can be removed or edited, and we have to trust the system heavily. Trust is not what we are trying to achieve. We are trying to have a TRUSTLESS economy and system.

  3. Businesses will be able to track exactly the quality of their product and all the specific products.

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#1925
  1. Keeps all transactions in the public ledger and they are not removable.
  2. A normal database can be controlled by someone at any point.
  3. Digital provenance enables efficient and transparent transactions.
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#1926

Can somebody change that data? If yes, how can we be sure that the blockchain technology enables digital provenance?

A normal database can be manipulated.

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#1927

That’s it. Very well said. Keep up the great work Fabio. :smiley:

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#1928

Great answer! Keep up the good work. :fire: :fire:

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#1929

In a central database a single person can change the total supply, transaction amounts… basically anything. They can manipulate every bit of the transaction. In a blockchain, every coin or token may have a limited supply. Does that do not have a limited supply of coins/tokens can be predicted as their coin/token inflation is well known.

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#1930

Yes you could lie from the start, but everyone will eventually figure it out. You would be crushed by the competition that would not lie. Think of it this way. Online buying is pretty popular. If you bought from a website that send you a wrong item would you still buy from them? Most probably not, and their business would fail pretty quickly. Same thing will happen here, I imagine. With such a high competition you would have no incentives to lie. With the help of provenance we can establish which company is trust worthy and which one isn’t.

Great question. :smiley:

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#1931

Glad to see you helped someone. Keep on learning and thanks for still sticking around. We appreciate it. :heart: :heart:

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#1932

What stops us from changing the public ledger?

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#1933

Blockchain is essentially a database without a delete function meaning the provenance of everthing on the blockchain is preserved in perpetuity. A normal database obviously allows deletion of data and thereby also destroys provenance. Digital provenance provides accountability and removes the need for trust which in business is a highly valuable situation for obvious reasons.

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#1934

1.) How does blockchain enable digital provenance?
A.) The use of blockchain allows all transactions to be immutable and to be tracked in real time through a public ledger.
2.) Why doesn’t a normal database bring the same provenance?
A.) A normal database doesn’t allow for the same transparency. Blockchain is a database that is used to securely store information but also allows that information to remain public. A normal database isn’t public and doesn’t allow public verification of all transactions.
3.) Why is digital provenance such a great benefit to many businesses?
A.) It provides for real time auditing and allows financial transactions to be much more efficient by not allowing the removal or corruption of data. It also creates traceability with supplies/suppliers which results in greater consumer trust.

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#1935

Well, first of all, anything that has happened on the ledger cannot be undo or removed. You cannot just go on to your computer and try to make an unauthorized move. All the computer network would need to verify and approve of it for it to be valid.

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#1936

Anything that had been verified on the ledger cannot be undone or modified. If you are trying to remove something or do something that is not true to the ledger, all the computer network would need to work together to verify that. Because of this, you cannot change the public ledger.

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#1937

Excellent answer @sugargrams! By the way, welcome to the academy!! Will be here ready to answer any questions you find along the way!

Felipe.

2 Likes
#1938
  1. By storing the information decentralized where no one can corrupt the data.
  2. It can be corrupted. It can crash.
  3. It can remove trust and enable real time audits.
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#1939
  1. Blockchain enables digital provenance by being immutable and anyone can trace and track its origin, with transparency, and better than this, it is public.
  2. A normal database can be changed or manipulated.
  3. Because it offer transparency and verification of all data turns a business reliable and trustable. You’ll be able to verify, not to trust. No central authority needed.
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#1940

My Answers:

  1. Because everything is tracked and can’t be erased
  2. Normal databases can be altered unlike provenance
  3. Because all the accounting and transactions are now all together. No need to save receipts essentially
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#1941

First, let’s define blockchain, then provenance, then we can see how blockchain enables digital provenance:
So, blockchain is a digital public ledger to which items, transaction, or data, can only be added, NOT removed, while provenance is defined as the origin, or the authenticity of something. This means that the origin, if recorded on blockchain is now a verifiable record, it is not opaque, no need for “trust” because the action is recorded on a digital public ledger that is NEVER removed. Hence, blockchain enables digital provenance by the very nature of it being a digital record of verifiable transactions/data.

This is different than normal database as “trust” is not a factor and because a normal database allows for removal of data.

Furthermore, digital provenance now allows for real time auditing and true transparency in any items recorded potentially for ANY business. The example given was Origin Trail tracking what is REALLY in food and where it comes from.

2 Likes