Reading assignment: Benefits of the Blockchain technology

[ed_anon]

Transparency: Transactions are recorded on the blockchain so can be verified by any user on the explorer.

Security: Trust less as the probability of a collusion of the decentralised network to alter previous transactions would be extremely small.

Improved traceability: Transactions can be traced and are recorded forever.

Increased efficiency and speed: Transaction data is recorded on the blockchain with no 3rd party required.

Reduced cost: In some cases it requires less resources to process a transaction.

[RJG_101]

Transparency:
Everyone in the blockchain network has access to the same pool of public data. Everyone understands that due to the decentralized nature of blockchain, the action that has the most concensus is the action that has reliably occurred
Security:
Transactions are encoded and encrypted during each action thereby making them hard to hack or breach; in addition due to the decentralized nature of blockchain, even if a few PCs are hacked and the actions are changed the larger consensus
that is correct will be recorded as true
Improved traceability:
Blockchain records every transaction that has occurred - each step is audited making traceability very easy
Increased efficiency and speed:
One system of compiled and agreed upon data reflects transactions - making human errors less likely and making transactions more efficient,
as systems know exactly how and where assets are going
Reduced cost:
No middlemen are needed to confirm transactions or hold funds - fees will not be taken in quanities that match current financial
systems

[empty_nutella]

Transparency: creates trust, putting peoples minds at ease knowing they can check they’re and others transactions.

Security: the blockchain running on a global network of computers, the consensus mechanism and transactions being linked to the previous transaction assures that everything on the blockchain will always stay on the blockchain.

Improved traceability: knowing where your food comes from and has been let’s you know what your putting in your body, the same can be said about anything you interact with.

Increased efficiency and speed: since transactions don’t need a middle man or heavy amounts of paperwork, it saves a lot of time, time that people don’t have.

Reduced cost: means more money to spend or save for things you actually want.

[Reinis.S]

Transparency: Every transaction is available to see in blockchain.

Security: Transactions are encrypted and hard to hack. To be able to hack network you would need access to all nodes.

Improved traceability: Transactions are linked to previous transaction so it makes it traceable.

Increased efficiency and speed: fast transactions, no human involved no errors.

Reduced coast: No need for third parties.

[lizano93cr]

Transparency: we are switching from trusting on something in order just to need to verify it. No more lies, scams, manipulation.

Security: encryption algorithms and protocols beats human capacity

Improved traceability: automated auditing

Increased efficiency and speed: automated process

Reduced cost: less resources and middleman needed

[chris90]

Transparency: Everyone on the network receives same documentation and is unable to be changed without the entire network agreeing to it.

Security: After a transaction is approved it is encrypted and shared amongst the network from previous transaction

Improved Traceability: allows to be traced back from start as well as verifies the asset

increased efficiency and speed: not prone to human era or paper trails, automated system that tracks it

reduced cost: don’t need any many middlemen or review as much documentation

[singh4991raj]

1. Transparency: due to consensus protocols, changing a record in the blockchain would require the alteration of all subsequent entries from that record, which would collude the entire ledger. This ensures that the distributed ledger is exactly the same for all agents participating in the blockchain, enabling transparency.

2. Security: transactions, or exchanges of value, are agreed upon beforehand by consensus protocols. Moreover, each transaction is linked to the previous one. Beyond this, information is stored on a decentralised network of computers. This means that information is more secure and less prone to being compromised.

3. Traceability: since blockchain results in a public ledger, all transactions are clearly audited necessarily.

4. Efficiency: since public ledgers are agreed upon collectively through consensus protocols, there is no need for reconciliation by 3rd parties of multiple individual ledgers, reducing workloads.

5. Cost: blockchains are trustless, meaning less 3rd parties required. Moreover, there is a single, immutable version of the blockchain available, reducing documentation required for value exchanges.

[ashnicbe]

1. Transparency: All those with permission are able to see the information on a single transaction log as opposed to a paper process or digital process stored in many locations. This creates ease in info sharing with accurate and consistent ledgers

2. Security: Blockchain storage is between a network of computers making it difficult to manipulate once the info in the chain is agreed on. The current common storage methods are only backed up in data centres or on clouds centrally recorded

3. Improved traceability: Accurate audit trails for each exchange of goods, for example in supply chain each time the delivery changes hands it would be stored in a new block which everyone whom has permission can see, this can carry metadata such as transaction times and verify those externally (via proof or agreement on decentralized chain)
   lines automation removing added API or software issues between organizations which dont speak to each other. The blockchain method can create an immutable, trusted version of transactions. For example, with e-commerce, from destination shipping, to the trucking company, to the shipping container, to customs, to the next local shipper, etc to the customer. You’ve likely had this shipping breakdown from an amazon delivery - however on the backend there is so many added layers of their vendors in the process and they all use their own software and technology. Using a blockchain can tie all these together in a faster, more simple and cost effective way. This making the customer experience easier and adding to the vendor margins.

4. Increased efficiency and speed: See above

5. Reduced cost: Removing need for added software and reducing mistakes or errors in transactions with a transparent ledger will reduce costs on multiple fronts.

[ugodeeagle]

The following (transparency, security, improved tracebility, increased efficiency and speed and reduced cost) are benefits of using a blockchain reasons because;

In our world today transparency is a paramount feature needed for successful and trustless business transactions, and while transactions needs to be transparent, there is need for high security. People want to be sure that their money/goods/products/services are secured and anyone cannot just hack into it.
Being able to keep track of every transaction is another very important thing people need in today’s business world hence the need for the improved traceability which blockchain is providing as a benefits of using it. And while people are able to trace transactions, they also value speed and efficiency, they want to know that their transactions can take place like the speed of light and also at a reduced cost because they don’t need to involve too many third party’s or do things manually thereby wasting time and resources.

[LucLight]

1 every one can read all transaction on the blockchain

2 achieved by having a vast network of computers storing the same data

3 by being able to read all transaction

4&5 a decentralised incentive based protocol bypass the need for middle man or 3rd party improving everything

[Brecky_Bihary]

Transparency: Everyone sees the same documentation. Any change has to be agreed upon by all that have access to that doc.

Security: First it has to be agreed upon and approved it is then it is encrypted and linked to the previous transaction.

Improved traceability: The BC records transaction which creates an audit trail of where assets come from and every step it makes.

Increased efficiency and speed: Since all parties share the same information, you don’t have to reconcile multiple ledgers.

Reduced cost: All the information is there for all to see so all you have to do is to trust the data on the BC instead of the middleman.

[RedK78]

Transparency: In a blockchain new information can only be entered by consensus of multiple nodes in the network. It is impossible for one party to manipulate all the nodes of a blockchain.

Security: The information in a blockchain is stored in a network of computers as opposed to a single server. This makes the information in a blockchain harder to hack.

Traceability: If supply chain information is recorded on a blockchain, you can get an accurate picture of every step that product went through in order to verify its authenticity and prevent fraud.

Increased efficiency and speed: Record keeping is done in real time with the transaction. A single digital ledger is visible by everyone, so you do not need to reconcile multiple copies.

Reduced cost: A trustless system means that you do not need 3rd party brokers to strike deals. It does not matter if you trust your trading partner or not, you just need to trust the blockchain data.

[khalil]

Transparency:

• Transparency as it is define within the confines of blockchain is full disclosure of all transactions, actions, installations, etc. on the blockchain without the possibility for anything to be redacted or omitted - at all. The second part of this makes all the things I mentioned before 100% available for anyone, these now become opensource transactions.

Security:

• Consensus, Encryption, Decentralized ledger. The implementation of these three principles is how security is realized for the blockchain.

Improved traceability:

• A byproduct of transparency combined with security improves the transaction traceability, all an entity with the knowledge of how to gather this information needs to do is simply go backwards from a chosen time to the receipt of a wallet on that blockchain. More trustworthy than walking from your home to the store then turning around and walking the exact path back. Real world things change, even if as subtle as the angle of a shadow, or sunlight in your eyes.

Increased efficiency and speed:

• Process automation, unbias trust implemented using math, and automatic establishment of a record in an agreed upon standard.

Reduced cost:

• Direct consumer to manufacturer link - no middleware that adds service fees (granted you’re not using eth which will charge gas).

[kathholmes]

Transparency: Everyone in the network shares the same copy of data which is updated only through consensus. This leads to greater transparency.

Security: Consensus must be achieved before information is recorded on the blockchain, and each transaction is linked to all previous transactions. Information is stored across the network, making it difficult to hack and therefore secure.

Improved traceability: When information is recorded on the blockchain, it becomes easy to trace and verify.

Increased efficiency and speed: Blockchain cuts out intermediaries and makes it quicker and easier to store and retrieve data.

Reduced cost: The trustlessness of blockchain makes it possible to cut out third parties, thereby reducing steps and costs in the process.

[MidnightX]

Explain with your own words, why these are the benefits of using a blockchain.

Transparency:
Everyone receives the same data and are on the same page.

Security:
It’s difficult to hack due to distributed/multiple servers when a transaction is sent and received.

Improved traceability:
By tracking and having the ability to find its whole history to its origin. A precise audit.

Increased efficiency and speed:
Bypassing the middleman which increases efficiency.

Reduced cost:
Since its peer to peer, no middleman/centralized extra fees are needed.

[MrGunnar]

Explain with your own words, why these are the benefits of using a blockchain.

Transparency:
The transparency benefits of using a blockchain completely overrule the traditional systems in current use today due to the method of how interactions are validated, authenticated & complete via consensus. The public ledger allows for all parties on the network to have access to the same information, as well as the network of computers that are validating these interactions. The data stored on the blockchain is immutable & irreversible, this prevents fraudulent activity attacking the network to alter information or transaction history.

Security:
The security benefits blockchain offers with it’s network of computers, and mining mechanism’s are an exponential improvement on traditional systems. The network of computers all share the same information, and therefore, if an attack were to occur and they were attempting to change information on a transaction, the other computers in the network would identify the incorrect information & flag the transaction, in order for the attack to be successful the hacker would have to change the original information on more than 51% of the computers in the network, this is extremely difficult.
Mining protects the network staying online, with financial incentive, this provides motivation for there always to be people upholding the life of the network.

Improved traceability:
When involved in a large supply chain, it is hard to validate the quality & authenticity of your product, generally it is based upon trust in your supplier. With the blockchain, you are able to trace the origin of each individual asset, where they have been, who has interacted with them & define the quality of the final product with the data provided on the blockchain. This prevents fraud.

Increased efficiency and speed:

Traditional nature of trading and settling involve many intermediaries, 3rd parties & multiple points of contact. With blockchain, the public ledger provides the same information to all on the same network, and would increase the trust between companies, organizations, private traders & reduce the amount you would need to use multiple intermediaries. This in turn increases the amount of transactions that can be made, with less friction along the way.

Reduced cost:

Important to companies & basically everyone on the planet, reducing costs are imperative to a lucrative path. With blockchain you reduce the need to pay for 3rd party services, trusting intermediaries and gives you the power to enhance your in-house work rate due to everybody you are dealing with having access to the same data.

[Alina19]

Explain with your own words, why these are the benefits of using a blockchain.

1. Transparency: generally speaking blockchains are public ledgers. Anyone has access to the blockchain data.
2. Security: blockchain is a network of peer nodes (millions of them) which each node having a full transaction history. Therefore each network participant has the same information and the same set of rules to guide them.
3. Improved traceability: once transaction is verified, it is added to the blockchain; from now on it can’t be reversed or changed. It gives users ability to trace each operation making sure it is valid.
4. Increased efficiency and speed: because each network participant has the same access to blockchain data, it lets businesses cut out a lot of middlemen along the way. Everything is stored on the blockchain and there is no need to keep complex records of your business operations.
5. Reduced cost: see 4. No need for third parties. The technology is trustless, you just need to trust the network

[crypto_simp]

Because Blockchain is a kind of distributed ledger, all network participants share the same data - a complete record of all the transactions ever validated on-chain. Sharing data in this way increases transparency and is a unique feature of blockchain networks.

Enhanced security is built-in to blockchain architecture. The consensus mechanism, for example, spreads responsibility for validating transactions across multiple network participants. This eliminates single points of failure and makes it practically impossible for bad actors to compromise transaction data.

Blockchain also offers an audit trail when used to record exchanges of goods or services. You can see where an asset originated - and - every stop it’s made on it’s journey in real time. Historical transaction data can be used for authentication purposes or to prevent or prove fraud.

Let Blockchain do the heavy lifting. The code streamlines and automates numerous intensive operations and those that previously relied on human involvement. As reliance on human beings is reduced, so too is the potential for all kinds of human induced error. Likewise, limitations artificially imposed on the network due to it’s reliance on human actors and human input can be removed. These are the two most important ways where blockchain is proving it can improve both speed and efficiency on the network.

Trustless operations are at the heart of Blockchain. By removing trust we can also remove middlemen and other third parties. In doing so, we get to keep more of the pie for ourselves. Blockchain can also save you money by saving you time. Instead of multiple copies of documentation to work from, Blockchain offers all participants the ability to work from permissioned access to a single immutable version of the relevant data - on demand and in real time.

[homegrownhuman]

1. Transparency:
   A blockchain is a distributed ledger. All transactions are visible for everyone with access.

2. Security:
   Transactions are stored on the ledger after all network participants agreed on it. This is called consensus.
   A transaction can not be reversed once settled.

3. Improved traceability: Every transaction can be traced back to its origin, as the ledger has saved every step along the way.

4. Increased efficiency and speed:
   Less to no intermediaries within the process of settlement makes the process much faster compared to traditional banking. You trust the Network and its data instead of a multitude of intermediaries that could be fraudulent.

5. Reduced cost:
   Less to no intermediaries within the process of settlement makes the process much more cost effective traditional banking.

[Pernu_Menheer]

1. Transparency:
   When everybody has access to the same data it increases confidence which is very neccesary in business

2. Security:
   It is more secure than a centralized database, as those databases have a single point of failure

3. Improved traceability:
   Traceability allows businesses to know the history of a product through the supply chain.

4. Increased efficiency and speed:
   Information is public and readily available on the blockchain

5. Reduced cost:
   Less need for middlemen to verfiy or make gaurantee because it does not matter if you trust your trading partner.