Reading assignment: Benefits of the Blockchain technology

[explorergeek]

Transparency is a benefit of using a blockchain because everyone has access to the same “ledger” and can verify information in real time. The transparency helps to create security.

Security is a benefit of blockchaining because people want to insure their transactions are secure and are protected from fraudulent businesses or people. Security through transparency means more people will use blockchaining and this make it more secure.

Improved traceability is a benefit of using blockchain because it eliminates the need to go through multiple sources to insure accuracy of transactions.

Increased efficiency and speed is a benefit of using blockchain because it helps to eliminate human error. By taking out the need for multiple ledgers and giving everyone access to the same ledger at the same time, it helps to increase the efficiency and the security.

Reduced cost is a benefit of using blockchain because everyone wants to save money. Through blockchain, companies and people are able to get rid of any third party interactions that would have been needed before.

[symeria]

Benefits of the Blockchain Technology - Answers

1. Transparency happens because everyone within the network has the exact same information. There are no variations between individual copies because they don’t exist. There is no way to change the information in one transaction without having to change all of the transaction data and any data connected to the transaction. Further, in order for any changes to be made there has to be consensus…everyone in the network has to agree to the changes being made. Without consensus no modifications can happen.

2. The Blockchain creates enhanced security in comparison to other data systems because there must be consensus or agreement on all transactions before they are recorded, and once transactions are approved they are encrypted and then linked to the previous transaction. Information is not stored in a centralized location but across a network of computers therefore making it very difficult for the transaction data to be breached, hacked, modified or accessed by unauthorized individuals.

3. Blockchain provides improved traceability because every step along an exchange’s transaction path is recorded and cannot be changed without everyone’s agreement. This provides a very detailed auditable trail that shows the origin of the asset and every interaction with that asset along the way.

4. You achieve increased efficiency and speed with using the blockchain because you have one digital ledger that everyone has access to. The process is streamlined and automated reducing the chance of human errors to occur and it also eliminates the need for third-party mediation or intermediaries which makes clearing and settlement of transactions to happen faster.

5. Blockchain reduces costs because with everyone having the exact same immutable data records there is no need for third parties or middlemen to guarantee transactions. Documentation doesn’t have to be reviewed because it’s available to all parties in one secure digital record.

[deficrypto]

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

Transparency: All parties have access to the same data instantly.

Security: All parties can be assured that the data is tamper proof and everyone is viewing the same information.

Improved traceability: Blockchain is actually a chain, that can be followed from source to destination.

Increased efficiency and speed: All the above will translate into less disputes, and that means increased efficiency and speed.

Reduced cost: Increased efficiency and speed also translates directly into deduced costs as you will now need less employees and/or hours to handle the same work flow.

[UncleBen]

Transparency is a benefit because the shared public ledger makes trust irrelevant. You can transact with strangers.
The enhanced security of the blockchain is a benefit because diversified storage and validated transactions prevent fraud or hacking.
Improved traceability, provides certainty over the provenance of products or services - be it unbiased data fed to an AI machine or ethically sourced wood, participants have peace of mind.
Efficiency, speed and cost - Send $100 by Western Union to the other side of the world - 3 days settlement and a $10 fee. Or send $100 bitcoin to the same destination. Done! Now! For a couple of cents! Boom!

[SaloBGoode]

1. Transparency is a benefit of using blockchain because apart from all the transaction histories becoming more transparent, all participants share the same documentation. Any updates to the ledger must be agreed upon by consensus of the miners as in the case of BTC. This creates a space where the information is more accurate and consistent, as well as protected from fraud.

2. Security is a benefit of using blockchain by the fact that transactions are verified by consensus before they are recorded. Once approved, said transaction is encrypted and linked to the prior transaction made on the blockchain. Plus, since the blockchain is made up by a global network, there is no one server to be hacked that in turn would compromise any transaction data.

3. Improved traceability is a benefit because authenticity of a product or asset is maintained by unalterable provenance. Every step of the supply chain can be audited, by the public and in real time if. some desired. When exchanges through the supply chain are recorded on the blockchain, it becomes easy to trace to the origin.

4. Increased efficiency and speed is a benefit of a blockchain done through the use of a single ledger that is accessible to all. The reliance on code and machines/networks inevitably cancel human error and in some form bureaucracy.

5. Reduced cost is a benefit of blockchain created by the elimination of third parties that are used to “create” trust. The data on the blockchain is transparent and accessible to both sides of the the transaction, automatically creating trust and cutting cost.

[Elena]

Transparency: Blockchain is ledger in which all participants have access to therefore everyone shares the same documents instead of having single copies for all participants.
Security: Before even recording a transaction a network of computers in which data is stored all need to agreed if the transaction makes sense. Once the transaction is approved it is encrypted and linked to the previous transaction. This makes it extremely difficult for hackers to steal the information since is not stored in single date base .
Improved Traceability: When transactions\exchanges are recorded the in the blockchain, this leaves an audit trail that is able to show the journey of the assets.
Increased efficiency and speed: By having a single ledger that is shared among all participants, reconciling multiple ledgers is not necessary making the process smoother and reducing clutter.
Reduced Cost: By cutting out most third parties since in blockchain you’re trusting in the math and since you’re trusting the math; you wont have to review so much documentation.

[hyperToken]

Transparency
Transactions are becoming more and more transparent due to the fruitful matureness of blockchain. Think of blockchain as a distributed ledger; every single participant in the network is connected; they all share the same purpose and documentation, not individual copies. That shared version of the documentation can only be updated via consensus among the participants; all must agree. Changing a single transaction record requires the alteration of all subsequent documents and the cooperation of the entire network. All data on the blockchain is accurate and available to all participants. Security
Blockchain is, in many ways, more secure than other record-keeping systems. Each transaction must have a consensus before they are recorded. When a transaction is approved, it will be encrypted and linked to the previous transaction. All the above process is stored across a network of computers instead of the traditional single-server solution, making it very hard for hackers. It is crucial to protect sensitive data, especially today’s awareness of how important your data is, when third parties are sharing data, blockchain keeps it safer and prevent fraud.

Improved traceability:
We are seeking more and more traceability; companies who are having large and complex supply chains have a hard time tracing back a particular product to its origin. On the other hand,
when products registered on the blockchain, you end up with an audit trail that shows precisely where the asset came from and how many stops it had throughout its journey. The historical data recordings on a chain can help verify the authenticity of the products and prevent fraud.

Increased efficiency and speed:
The traditional paper-heavy processes trading is very time consuming; thus, it requires a third-party mediation. When streamlining these processes and becoming more automated with blockchain, a transaction can be completed faster and more efficiently. Record keeping is performed using a single digital ledger shared among participants, which results in no need for reconciling multiple ledgers, and you end up with less clutter. There is clear transparency, which creates trust without the need for intermediaries.

Ruduced cost

When applying blockchain technology, you can reduce costs massively by eliminating the middlemen to verify or guarantee it is not relevant once you have a trustlessness trading partner. No need to review so much documentation to complete a trade, everyone has access to permissioned access to a single immutable version

[Borucki]

Transparency: Everyone has access to the same data instead of having data silos. This creates transparency which leads to trust between parties.

Security: Transactions mus be verified before they are posted to the ledger and once they are posted they cannot be reversed making blockchain the most secure network avalible.

Improved Traceability: With the open sourced ledger anyone can trace transactions and or goods that are tracked on the blockchain.

Increased efficiency and speed: With the blockchain there is no need to physically transfer money thus you can transfer anything on the blockchain fast and with no distance limitations.

Reduced Cost: With increased efficiency and speed, reduced cost follow.

[JLat]

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

Transparency - because all network participants have access to the same distributed ledger, everyone has access to the same information.

Security - The ledger can only be updated through consensus, which means all nodes must agree on the transaction and verify it. Once the transaction is approved, it’s linked to the previous one. This makes the ledger immutable, meaning the data cannot be altered by a rogue participant.

Improved traceability - the entire supply chain process can be traced from start to finish.

Increased efficiency and speed - You no longer need to rely on multiple intermediaries who are prone to human error.

Reduced cost - You no longer need to waste money going through the long, manual auditing process. Everything is automatically available.

[wojtekp]

Transparency: transaction information is available publicly

Security: decentralized network is resistant to security incidents affecting individual agents

Improved traceability: origins of anything on the blockchain can always be traced back since information is immutable.

Increased efficiency and speed: since every agent uses the same copy of the ledger that is blockchain there are efficiency and speed gains compared to using separate copies and then reconciling.

Reduced cost: using single common infrastructure removes costs that would otherwise have to be incurred to integrate work done on different platforms.

[matty.t]

Transparency:
Information stored on the blockchain is public and anyone can view it. The information can only be stored on the blockchain only if all the people on the network verify it and come to a consensus about the validity of the information. Information on the blockchain transaction is shared and cannot be altered unless all networks come to a consensus, previous transactions have to be altered and the collusion of the network. This creates a more transparent, accurate and consistent.

Security:
Information being put on the blockchain needs to be verified and come to a consensus by the network. This information is encrypted and linked to previous transactions and stored on the network computers as opposed to a single server. so it will make it hard for hackers to compromise the information.

Improved traceability:
Information that is stored on the blockchain about a product can be traced back to its origin. This helps keep a record of the trail of transactions and the authenticity of the product and this helps prevent fraud and more transparency.

Increased efficiency and speed:
There is no need for a middleman or third parties and paperwork which helps greatly decrease the time taking to do a transaction on the blockchain. There is only one ledger and not multiple, so you do not need to verify with other ledgers. There is only one ledger that is shared and this will increase the efficiency and speed.

Reduced cost:
Blockchain does not require a middleman or or third parties to act as intermediaries which reduces costs. All the networks on the computer share the same documentation and it is based on trusting the “data” and not your business party. So your business partner cannot “scam” you and cost you money.

[DJM]

1. Transparency:

• All participants who maintain the network have the same copy of the database

2. Security:

• All participants in the network need to agree to change a record and all subsequent records in the network because each record is linked to every subsequent record.

3. Improved traceability:

• The blockchain records all transactions linked to the original transaction making it possible to more efficiently trace transactions in a timely manner.

4. Increased efficiency and speed:

• There is no need to reconcile multiple data sources or ledgers that are prone to manual hand offs and human error because there is one record of all transactions shared by all participants, making it easier and faster to access data.

5. Reduced cost:

• There is no need for 3rd parties or middlemen men because access is possible to all recorded information without the need for intermediary confirmations and documentation.

[Chris1]

Transparency: all documentation is shared by participants who have permission to access it and new updates are agreed upon by consensus

Security: after a transaction is approved, it is encrypted and linked to the previous transaction, thus it remains immutable and it is inaccessible to unauthorised bodies

Improved traceability: through blockchain we can verify where the goods came from and we don’t have to trust the supplier, we can verify it

Increased efficiency and speed: transactions can be automated and stored on a single digital ledger which is shared by all participants

Reduced costs: by using blockchain there is no need for middleman and participants can trust the data on the blockchain and do transactions directly between themselves

[Agent989]

Transparency - All network participents have an exact copy of the ledger. This information is available to all permissioned users. The updating of information is done through consensus and requires the collusion of the entire network. Modifying information (maliciously) would again require the collusion of the entire netowrk and modifyinf an old transaction would have the additional hurdly of modifying all subsequent records too.

Security - A transaction must be cryptographically approved before being recorded. They must also be linked to all previous transactions to prove their validity. As a final stpe the ledger is distributed across multiple computers which makes alteration very very difficult and unlikely. These factors combined create a very secure network of information.

Tracability - Blockchains allow an audit trail to be created (in real time) which allows for the traceability of every step of a products journey from supplier to consumer. We can be sure that the information was added by verified users and and that it was not subsequently modified. The linking of transactions to previous transactions allows for easier navigation of the audit trail as information is structured in a similar manner to the journey a product makes.

Increased efficiency and speed - Trasitional centralised processes are prone to human error and need to be overseen, often by 3rd party intermediaries. DLT automates this process and makes it more efficient. Since all information is on a single ledger, time is not wasted reconciling information from numerous centralised sources. Finally, because every permissioned user has access to the same ledger, there is less need to trust each other and use 3rd parties to overlook the process.

Reduced Cost - You no longer need to pay 3rd party intermediaries to overlook and add trust to transactions with other parties. Time/money is also saved due to the reduced need to review documentation as information is verifiable by all permissioned users…

[Ben_Swenson]

1. Transparency:

The blockchain ledger of transactions is open and distributed and so everyone involved can look at the specifics of all past transactions. It is difficult to fully hide a transaction and so organizations that require transparency can be benefited by adopting blockchain.

2. Security:

Transactions added to the blockchain are final and immutable. This means that hacks or scams that try to make fake transactions or duplicate value on the blockchain will be unable to do so. This allows for a security of records and history of transactions.

3. Improved traceability:

The blockchain holds all of the previous transactions and it open to all participants. With proper analysis, the value in a transaction or the item in a transaction can be traced to the places it went while being recorded on the blockchain.

4. Increased efficiency and speed:

Unlike traditional businesses run by humans, the blockchain is never “offline.” At any given time, a transaction can be added to the blockchain no matter the time of day. This makes business transactions settled in a very quick way as compared to traditional mechanisms.

5. Reduced cost:

Transactions without blockchain often require third parties and legal proceedings to guarantee transactions. In many cases this could be very costly for the parties involved. Blockchain eliminates all of this process while still maintaining the ability for parties involved to transact successfully and fairly.

[capriciousjones]

Transparency: With a blockchain, the ledger is shared among all participants of the network, and all transactions are auditable. This prevents dishonesty, which is a significant benefit.

Security: In order to alter the data in the blockchain, an attacker would need to override a majority of the network, which requires immense resources. In effect, securing the network through consensus is highly effective.

Improved traceability: Since a blockchain is a shared immutable record of transactions, any point of origin can be traced from a given output. If separate legacy accounting systems are used by a participants in a project, it is much more difficult to audit.

Increased efficiency and speed: What takes days or more in legacy systems can happen in minutes and seconds on a blockchain.

Reduced costs: Blockchains remove the need for many third parties, and they keep all parties involved honest and accountable. This will inevitably reduce costs.

[Puriel]

• Transparency: single source of truth of history records, shared documentations are validated and agreed upon in an early stage by the network consensus.

• Security: non-corruptive and immutable due to its decentralized database, verification based methodology plus core principles based on math and protocols.

• Improved traceability: deep-dive traceability available for both businesses as customers and consumers, Supply Chain processes being measured effectively and in real-time, revealer of inefficiencies that require elimination.

• Increased efficiency and speed: the decentralized database and network of nodes allows instant verifications and transfer managed without human intervention; hence quick and irreversible transactions management.

• Reduced cost: lower TCO due to exclusion of third parties, intermediaries, and assurance of solely one version of documentation available for all network partners.

[cryptochris0302]

1.) The ability to have a consensus where everyone on the network must agree makes the ideal in blockchain use case.

2.) The Fact that a transaction is permanent once it is approved, plus it is stored on thousand’s of servers make it a very secure system.

3.) Having an audit trail from A to Z makes traceability in the blockchain space essential.

4.) Having the same record for each transaction in blockchain makes it fast and efficient.

5.) There are no middle men or 3rd parties in blockchain making cost down considerably.

[TravisB]

[quote=“ivan, post:1, topic:8421, full:true”]
Explain with your own words, why these are the benefits of using a blockchain.

Transparency: 1 single immutable ledger every participant can access only changed through consensus.

Security: Transactions must be agreed upon BEFORE recorded, after approval, the new transaction is linked and encrypted onto the block. Network assures greater security than one single computer or person.

Improved traceability: You can now have guaranteed tracing of every stop an asset made along the way and trace it to its origins vice versa. Verifies authenticity and prevents fraud.

Increased efficiency and speed: Not prone to error like people and paper trails. Blockchain automates process for faster and more efficient transactions. Single record keeping via 1 digital ledger shared by all participants on the network. Removes trust because everyone has access to the same info.

Reduced cost: Removes majority of 3rd parties, guarantees trust, less need for document review, 1 single and immutable version of ledger.

[azalimi]

Transparency - In blockchain is attained because every node on the network has exact same copy of the ledger.

Security - In blockchain is attained by it’s transparency nature and also by the fact that all transactions happen by consensus, which is the agreement of all nodes involved. Changing transaction on one node requires you to change the transaction on all nodes which is not possible.

Improved traceability - In blockchain it’s achieved because every transaction on a blockchain is recorded on the ledger and the can not be altered by any node because of the consensus nature of blockchain.

Increased efficiency and speed - In blockchain is achieved because transaction are recorded just on one single ledger that every node has and there is no heavy paperwork involved. No intermediary involved.

Reduced cost - With no intermediary in transaction, cost of paying intermediaries would definitely be cut out.