Explain with your own words, why these are the benefits of using a blockchain.
Transparency: The distributed ledger ensures that each participant on the blockchain has the same data, therefor making changes to the blockchain impossible without consensus.
Security: Transactions on the blockchain must reach consensus prior to being recorded on the network. This makes hacking the blockchain almost impossible. Transactions are linked to the prior block’s transactions once they have been approved by the network. There is no single point of failure, as the blockchain is decentralized.
Improved traceability: The blockchain can prevent fraud, and verify the origin of products from start to finish all accessible on the blockchain. This data can be critical to verifying the authenticity of goods from within the world’s many supply and logistics networks.
Increased efficiency and speed: With blockchain, the clearing and settlements of transactions can happen much faster due to all participants using the same infrastructure and data. Less intermediaries ensures a more trustless process.
Reduced cost: Blockchain reduces cost by removing intermediaries, and removing the data or documents that involve intermediaries, thus providing a trustless system governed by cryptographic math.