Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2269

Transparency: Everyone is sharing the same one copy of the ledger. They all see the same things

Security: Consensus is required for a transaction to approved. No single bad actor can place inaccurate transactions into the blockchain.

Improved traceability: using blockchain, transactions can include more than financial data. Transaction data can include location, parties involved etc. and all future transactions of (for example) the product, will add on top of all the the data from before.

Increased efficiency and speed: Sharing the database makes the task of reconciliation redundant. It also obviates the trust problem, also making third parties redundant.

Reduced cost: increased efficiency and speed saves time. time = money. save time = save money. Additionally no third parties to pay.

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#2270

Transparency - Everyone must agree on a transaction with a public record. Can only be reversed if everyone agrees together which would basically never occur due to it being too difficult.

Enhanced security - Transactions rely on being agreed on by multiple parties (miners) before being confirmed and stored in the blockchain. Decentralized storage of transaction information is a huge strength here.

Improved traceability - Public ledger that can be utilized to track anything including physical items (if adapted correctly).

Increased efficiency and speed - No time wasted on human error and middlemen. Blockchain runs 24/7.

Reduced costs - No need for third parties or middlemen due to it being trustless.

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#2271

Transparency: While there are some blockchains that have privacy features, most blockchains (Bitcoin included) are fully auditable by any individual. The ledger is fully public and therefore transparent. Transparency in many industries, government, etc. is a hugely beneficial factor as, for instance, a consumer can trust that the data they’ve observing is accurate, has not potentially been subject to tampering or negligence.

Security: A decentralized network (blockchain) has no central authority or controller, government or corporation, that could make unilateral decisions on behalf of everyone with no oversight. Each node on the network can measure their own ledger/database against everyone else’s to determine what the “truth” is. Further, decentralization improves security against outside malicious actors such as hackers since all of the data stored on the blockchain would be encrypted and spread across many different nodes.

Improved traceability: Every transaction that occurs on the blockchain is publicly available for auditing. Blockchain is a “digital stone” that permanently records all activity through its decentralized network.

Increased efficiency and speed: While blockchains like Bitcoin’s have had their moments when efficiency and speed haven’t exactly been what they could be, for the most part using a blockchain to store data can keep everything running smoothly and organized. With traditional centralized models, there can be a lot of extraneous or irrelevant data floating around that isn’t needed, messing up the data space.

Reduced cost: The average cost of a blockchain transaction is quite a bit lower than, for instance, wiring a ton of money through third parties that will charge large fees. You can move a huge amount of money with Bitcoin for a very small fee, $2 - $8 or so. Aside from simply moving money around, businesses can utilize blockchain instead of hiring many people, accountants etc., to take care of their financials or other data.

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#2272

Transparency: blockchain is public (mostly) and everyone can have access to all its data.

Security: participants / miners / validators have to agree on transaction via consensus so no human error / fraud involved.

Improved traceability: you can track origins of a transaction or a product without trusting a 3rd party.

Increased efficiency and speed: using just one ledger across multiple participants allows for a great speed boost.

Reduced cost: no middle man involved thus transactions happen quicker.

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#2273

1-Transparency:
Because of a Distributed Ledger Technology, changes and updates can only be achieved if everyone involved agrees or Consensus mechanism to validate and approve transactions make it virtually impossible to manipulate.

2-Security:
Before anything is recording it most be agreed on advance. So the whole ecosystem is aware of all store transactions preventing hackers to compromised the system.

3-Improved traceability:
Knowing the origin of a product for a business can in some cases not only save lives and avoid legal matters but also saving time, money and all the headaches of fraud and counterfeit, also creating an atmosphere of trust between the parties involved.

4-Increased efficiency and speed:
By having all information in a single digital ledger, is less clutter, human error is reduced to zero. More trust, and faster easier quicker, better settlement by cutting the meddleman and traditional process.

5-Reduced cost:
All in one single trusted unchangeable version system or blockchain that everyone can access, trusting the data automatically reducing cost, time and energy is the nirvana of every business.

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#2274

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

Transparency:

The blockchain protocol is a decentralized, highly transparent, trustless network run on multiple computers that store the network information. These computers are called a ‘ledger’. Before this information is stored on the blockchain it has to be agreed upon by consensus, when it is, the information is added permanently to the ledger. Because we have a public record of all transactions that are run on the blockchain by viewing the ledger, it gives us the transparency that isn’t currently available with other systems. This means all participants share the same data, and you don’t have to worry about trusting anyone as you can verify a transaction yourself by viewing it on the ledger.

Security:

The transparency of blockchain helps in it’s security. Because blockchain is so transparent, any transaction or information can be viewed on the public ledger. All this information isn’t stored on a single computer, rather multiple computers in a network making it harder to be hacked because it’s not on one central network.

Improved traceability:

A good example of improved traceability would be a supply chain that uses blockchain. If we store our exchange of goods on a blockchain we can easily traceback and view an audited trail of where an asset journey started and ended. This information being stored on a blockchain is another benefit in of itself because it can’t be changed or tampered with.

Increased efficiency and speed:

Traditional transactions stored on paper can often be time consuming, cluttered and prone to human error. We can use blockchain to solve these problems, creating an efficient, fast system that is kept on a digital ledger and shared among participants. Removing the middleman essentially removes a time consuming step in the process, and instead moving it peer-to-peer making it much faster.

Reduced cost:

Because using blockchain gets rid of a middleman and 3rd party trust brokers, it also reduces the cost. Trust is made on the data on the blockchain rather than anyone else in between.

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#2275

1.because everyone shares the same information
2.more difficult to hack or tamper with
3.helps prevent fraud and secures authenticity
4.less time involved with paperwork etc.
5.less need for middlemen and 3th parties and it’s faster

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#2276

Transparency menas that every transaction is traceable on the blockchain
Security: through the cryptology and nodes, every node holds the whole history of all actions. A new transaction can only be added when it is confirmed by all the nodes and then added to the history
Improved traceability: because all transactions are kept on the blockchain ledger. It is more asy to track the history of any product, service or transaction
Increased efficiency and speed: with the blockchain it is possible to let people work together on the same thing in the same format. Therefor increasing speed and efficiency
reduced cost: because blockchain provides decentralized trust, it is not neccessary anymore to hire of use third party trust. Middlemen can be skipped and this makes it cheaper

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#2277

Transparency: The accuracy of information can be determined by all parties. Your inputs to the blockchain network are see through. Providing every detail to every participant of the network.

Security: A system that has a sprawling distributed network is hard to compromise from many different angles. One of the most important facets of security is protecting networks from fraudulent activities.

Improved traceability: The linking of inputs and outputs to their previous inputs and outputs gives a road map to provenance for any datasets.

Increased efficiency and speed: By removing the human components of record keeping and validation and replacing them with autonomous systems block chain technology can make decision making processes extremely time efficient and less prone to human bias or error.

Reduced cost: If a system doesn’t have as many intermediaries, human costs, and is governed by everyone then overhead for rules and negotiations are greatly reduced as there are less hands grabbing from the same pie.

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#2278

Transparency: Everyone has a copy of the ledger, the information in it cannot be modified or altered without consensus.

Security: As I said before, being an immutable network, nobody can modify what was already agreed and incorporated into the blockchain. Which also removes the need for confidence, you just have to trust the math.

traceability: You can follow any transaction in the chain until its beginning, which generates great confidence in any company that uses this system. No need to trust if you can verify it.
Increased efficiency and speed: Clearly Blockchain accelerates processes since it is not necessary to perform audits or verify if the information or the person with whom you are doing business is good or bad. All processes are automated

Reduced cost: by reducing third parties (accountants, administrators, controllers) you reduce time and costs.

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#2279

transparency:
because everyone who participates runs also the network/blockchain. they only can agree on consesus if everyone agrees. and once a transaction is done you can’t tamper with this because everyone saw what a you/a person did.

Security:
blockchain has the best securety because a transaction has to be agreed on before going it is recorded on the blockchain. and because it is run by different nodes/computers it is realllyyy hard to hack because it has so much computing power

Improved traceability:
because everything is recorded on the blockchain and everyone can see the transactions on the blockchain.

Reduced cost:
you don’t have to use people to verrify every transaction wich is also really time consuming. and you know what they say time is money.

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#2280

Transparency:
if it’s a public blockchain, it’s available to anyone. data in the chain cannot be altered unless most of the active nodes agree.

Security:
Transactions must be approved by all participating nodes then, the transaction gets encrypted and it gets linked to the previous transaction and lastly, it gets distributed upon all participating nodes so the transaction cannot be undo.

Improved traceability:
Blockchain has a historical transaction log that can allow us to find all the history of any given item in the chain. So this eliminates the need to trust a person or entity

Increased efficiency and speed:
Can help to automate many supply chain processes and it can help efficiency by having everyone used the same information not a clone by a third party.

Reduced cost:
Blockchain can reduce costs because it eliminates the need to have a third party in the transaction. you just need to ensure the code does what it suppose to do and they will not be any hidden surprises.

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#2281

↓↓↓The benefits of using blockchain ↓↓↓
Transparency: The data is decentralized and anyone can look through the blockchain to see what data is there, so everyone is accountable.

Security: The data is decentralized thereby making data loss or manipulation a nonissue. Also, blocks are cryptographically secured by CPU power, meaning that electricity must be used to validate blocks on the chain, so physics also plays a part in the security.

Improved traceability: Anyone can look through the leger and see where products are coming from, so it is hard to have fraudulent products.

Increased efficiency and speed: There is one chain with a specific type of data in it, so there does not need to be scattered data thereby making it easy and fast to look up data in the chain.

Reduced cost: Because of greater efficiency and speed, time is utilized much better, and the biggest cost in companies is labor time.

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#2282

Transparency: Openness, communication and accountability

Security: to be able to have protection from a tried party in case something happen

Improved traceability: to be able to track the transaction in a more efficient manner/way mostly to avoid unforeseen situation in regards to fraud transaction and people involved

Increased efficiency and speed: as per usual, the transaction may take a few minutes to get from point A to B but it does warranty that it will arrive at the destination. If there was only a way where a transaction could only take a few min and arrived to its corrected destination then it will take a lot of pressure from people.

Reduced cost: Time - cost -quality in triangle shape,

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#2283
  1. Transparency: you can’t change the ledger on one node because it doesn’t work, so that eliminates the possibility of fraud.
  2. Any sensitive data on the network is protected because nobody can interfere with it or change it
  3. You have an instantaneous audit trail of any data on the network
  4. Again, any transaction is near instantaneous and available on all nodes in the network without having to copy ledgers
  5. It eliminates third parties and middle-men therefore it’s cost efficient
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#2284

I’'m not sure what you mean by that. Who would be able to protect you in case of a high price drop for example? :slight_smile:

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#2285

  1. Not just a few have access, its open for all who are permissioned & need to be verified before being added to the Blockchain. All transactions are on a shared ledger so nothing can get lost/misplaced by human error in other record keeping alternatives.

  2. The info has to be approved by everyone on the Network (consensus) before it can be verified which is linked to the previous block. It’s much harder or even possible to be compromised than a single server network.

  3. Everything in the blockchain can be traced back to it’s origin & everywhere it has been on it’s journey preventing fraud.

  4. Blockchain uses a single-digit ledger opposed to traditional ways & does not require 3rd parties making it faster, more reliable & much easier to track with no human error.

  5. Cutting out any unnecessary steps (3rd parties) in anything is cost effective, more productive (saving time) and good business. You also get the trust of not having to worry about someone stealing from you. Stress free & piece of mind… Priceless!

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#2286

Transparency: All transactions on a blockchain are linked together in one distributed system as opposed to data stored in siloed DBs owned by central entities. It is extremely hard to modify data in a mature blockchain as the state of the ledger is always determined and validated by the majority of network. A single change would require altering other parts of the chain as well and to get majority consensus from the rest of the network.

Security: transactions must be approved, encrypted and then linked to the previous transactions by a trustless protocol. Due to it’s distributed nature, network consensus mechanism and encryption it is very hard to hack blockchains unlike centralized databases.

Improved traceability: classic supply chains are very inefficient because they lack the ability to seamlessly cross borders and create trust among participants. In addition most supply chain networks are a hodgepodge of multiple incompatible online and offline systems. Gaining trust is slow and difficult if not impossible resulting in trillions of dollars of fraud/theft each year.
Blockchain, offering an always on real time audit trail, can solve most if not all of these issues as it offers a global standard/language with immutability as one of its main benefits.

Increased efficiency and speed: same answer as above

Reduced cost: trust is build in by default, data is always audit ready and available to all participants resulting in lower operation costs due to needing less middlemen to move product through the supply chain and verify/approve transport/goods.

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#2287

Transparency: Transaction transparency is one of th fundamental attributes of blockchain. It is virtually impossible to alter and is visible to the entire network.

Security: The transaction has to be agreed upon first and is then linked to previous transaction with encryption. Plus the information is stored on a network of computers as opposed to a single server. It also has the benefit of helping to prevent fraud in industries where protecting data is crucial.

Improved traceability: Exchanges f goods are recorded on the blockchain so there is a trail to audit to prevent fraudulent actions.

Increased efficiency and speed: By automating trading on the blockchain recordkeeping is on a shared ledger streamline a lot of processes and making everything more efficient.

Reduced cost: With blockchain processes are streamlined and more efficient and increased productivity.

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#2288

Transparency: This require a great level of openness so nothing is hidden or becomes a secret. Once on the blockchain it forever records and unchangeable.

Security: Blockchain is the most secure due to there has to be an agree to record a transaction by many computers. Also due to many computers working together it is impossible for hacker to interrupt the blockchain system.

Improved traceability: This is create for most supply chains due to being able to trace the origin of any given product. It keep the fact straight and is recorded on the blockchain.

Increased efficiency and speed: Making everything faster and bringing a great level of trust. No paper needed, no intermediaries needed and working 24/7/365.

Reduced cost: Getting rid of all middleman. and relying on the blockchain technology to work for you at a cheaper price.

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