Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2329

Transparency: Because all of the computers on the network share the same copy of the transaction data, the same information is available for all parties to view and verify. Blockchain is the ultimate form of data transparency.

Security: Because the transaction data needs to be verified on all nodes of the network and is verified by concensus of all the participants it creates an extremely secure database.

Improved traceability: Because of the high security of the blockchain network we can use it to track products and remove trust from the equation. Not relying on the honestly of each participant in the supply chain, but rather dependent on the verification of data on the blockchain.

Increased efficiency and speed:
Because of provenance blockchain removes third parties from accounting of transaction data and complies all of the information into one single transaction, verifiable on the blockchain in real time. removing the risk of human error or delay.

Reduced cost:
Because blockchain can remove third party participants, businesses can save on their operating costs.

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#2330

Transparency: Since it is a public ledger, it is immutable, We all can see it and trust it.

Security: it is a network of nodes where everything can be verified therefore consensus can be achieved and they’re incentivized to do so.

Improved traceability: You can trace back an item to its origin wich increase efficiency.

Increased efficiency and speed: Since they’re no paper or human error possible everything is automated everyone use the same digital ledger the process become more efficient and quick.

Reduced Cost: All the chain supply trust the data on the blockchain, no middle man no third parties wich is more efficient and reduced cost.

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#2331

Transparency: ya got a distributed ledger where all share the same documentation; moreover, any change requires altering all subsequent records.

Enhanced Security: there’s gotta be agreement or ya don’t have a transaction. Not only that: it’s all encrypted and tied to previous transaction across the network.

Traceability: there’s always an audit trail. Verifying the authenticity of all transactions across the network prevents fraud too.

Increased Efficiency & Speed: Records are kept with a single digital ledger. This ledger is shared across the network. There is never any intermediators which creates trust in the network and not trust in some manager that is untrustworthy.

Reduced Cost: in so many ways. My favorite? Cutting out the middle man (or woman).

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#2332
  1. Blockchain is an immutable distributed public ledger that is available for anyone with permissioned access. This allows for the removal of trust and manipulation.
  2. Since blockchain is stored on a network of servers rather than a single one, and because transactions must be agreed upon in a decentralized manner before encrypted and linked into the blockchain, it is very difficult for hackers to compromise transaction data. Also helps prevent fraud.
  3. Supply chains/ networks can be very complex and it can be very difficult tracking items back to their origin. Blockchain technology vastly improves this. When exchanges of goods are recorded on the blockchain, you end up with an audit trail for each asset and every stop it has made. This transaction history data can help to verify authenticity/ origin of assets and help to prevent fraud.
  4. With legacy systems, trading anything can be a time consuming process that often requires 3rd party mediation and is prone to human error. With blockchain, these processes are automated, increasing efficiency. Also, because a single digital ledger is shared among participants, you don’t have to reconcile multiple ledgers.
  5. Blockchain cuts out many middle men and 3rd parties and automates processes to reduce costs greatly.
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#2333

Blockchain provides transparency because every participant of the network can track all transactions registered on the open ledger. Also, it is decentralized and trustless, making it secure because all the participants are financially incentivized to act in a honest way. Once the transaction is registered, it is linked to the previous ones, chaining them together and, thus, making them easily traceable. Being a single automated network, based on consensus, every approved transaction is automatically updated for every one to see it, eliminating costs and improving efficiency.

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#2334

Transparency:
A world famous magician stands in front of you and performs an amazing trick. Do you trust what you saw? Of course not, you may not know how he tricked you, but you do know that you have been tricked. With Blockchain everyone that has access to the blockchain can see and evaluate ever transaction all the way back to the first transaction. Transparency produces trust and trust is a foundational pillar to the value of blockchain.

Security:
Every block has to be verified by a consensus of the computers on the network. Each new block has a cryptographic hash that uniquely identifies the transactions in that block and the pervious block. If a single digit in the transaction is changed the cryptographic hash will fail. This provides an unchangeable record for each block and makes a blockchain. This kind of security is priceless and unique in the world of Information Technology.

Improved traceability:
The IBM Food Network uses blockchain to track produce from Farm to Store. Prior to blockchain this was done by paper. When contaminated product is found they have to trace it back step by through the companies that brought the produce from farm to store. This could takes weeks as employees for each company had to search through paper records that hopefully had been filed correctly. With blockchain this entire list of companies can be retrieved in seconds and the store can trace the produce through each company that has ever touched or worked on a product.

Increased efficiency and speed:
In the example above it could take weeks to trace produce back to the farmer. With blockchain this can be done in a matter of seconds. Increased speed and efficiency to say the least.

Reduced cost:
The driver fills in a paper receipt. Hands the receipt to the manager. The manger passes the paper to a clerk to file it. The clerk files it in a filing cabinet. Now a store needs to know what farm that head of lettuce came from. A clerk must search through the paper filing cabinet until the find the paper records requested by the store. This takes a huge amount of manual labor, paper, storage space and facilities and much more. With block chain the only expense was adding transaction to the blockchain. This can provide a significant savings.

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#2335

Transparency: Shared documentation allows for complete transparency. Consensus verifies the authenticity and accuracy of all records.

Security: Stored information resides on the entire network rather than one centralized server making it highly durable and resistant to manipulation.

Improved Traceability: Exchanges of goods greater transparent and easily auditable record that verifies authenticity and prevents fraud.

Increased Efficiency and Speed: Intermediaries are removed and trustless transactions can be automated and automatically recorded in the digital ledger increasing the speed of clearing and settlement. You also do not have to wait on the intermediaries that were removed from the system.

Reduced Cost: Again, removal of intermediaries removes their fees, but also using blockchain technology simplifies cost of documentation and reduces auditing complexity leading to less hours of labor.

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#2336

I did my first Bitcoin transaction cross border in 2016. I saw the benefits and felt nice and independent by doing so i realized below characteristics :
Transparency: Each transaction did on blockchain is transparent and confirmed by miner by paying a small fee.

Security: My transaction was processed by miners by SHA 256 algo by placing in blockchain and it cannot be reversed or cancelled by anyone.

Improved traceability: we can trace all the transaction done in the network.

Increased efficiency and speed: Speed was faster than traditional finance system as the approval process by bank and sometimes stuck due to cross border payments cross verifications.

Reduced cost: The cost was very minimal around 50 cents for sending 150 USD which is less than 0.5% while the paypal or bank charge more than 2% per transaction.

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#2337

Transparency: The blockchain is a distributed ledger that can be accessed by anyone and also the data stored in the blockchain is secure, legit and immutable. You only have to trust the math and protocol.

Security: As said above, since it is a distributed ledger the data on the blockchain cannot be edited unless the entire network colluded, which can never happen on a big blockchain. The data stored is also secured used encryption.

Improved traceability: Data stored can be accessed by anyone, this enables anyone to track transaction, in the case of supply chain this enables the ability to track good during every stage of its production.

Increased efficiency and speed: Blockchain technology is maintained by miners, they are incentivized to mine blocks as fast as possible, this enables quick transactions.

Reduced cost: it is cheaper because this removes any middle man or team to verify the authenticity of the data.

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#2338

  1. A shared ledger that has the same documentation distributed by all parties and its available to the entire network with permissible access to it.

  2. Because all transactions are on consensus agreement, the transaction is kept in many different ledgers on the block chain so this can prevent cheating and fraudulent transactions.

  3. All transactions can be tracked, and auditable in real time.

  4. 1 ledger on the block chain available all across the entire network so there will be no need for a middle man intervention, so by doing that it will improve speed and efficiency.

  5. Information on the entire network is trustworthy and so by that it will reduce the costs on the ledgers transactions as intermediators are no longer needed.

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#2339

Benefits of the Blockchain technology :mag: :lock: :footprints: :stopwatch: :moneybag:

Transparency:

All network participants share the same truth which removes the headache of syncing different sources/versions of the truth. Immutability of the records on the blockchain allow to reconstruct every transaction within its context. Origin and history of each unit of account are therefore reliable and transparent. This lends credibility and utility to such a network.

Security:

There is no single point of failure/attack. Constant health checks and validation through the network nodes ensure that the record hasn’t been falsified. The decentralized/distributed nature also provides resilience against network takedowns and render any attempt to hold the information ransom futile.

Improved traceability:

Transparent immutability leaves an audit trail that can be analyzed and verified by any interested party. This removes the need for trust and thus improves confidence in the quality of a product/service/operation/etc.

Increased efficiency and speed:

Once transactions are agreed on and have been confirmed on the blockchain any subsequent verification process or effort to sync different instances of record keeping become obsolete.

Reduced cost:

There are less humans in the loop that need to be paid to keep all the information in good order when math and technology can do the trick for you with even greater reliability.

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#2340

Transparency:

Since the blockchain is a public ledger (database), any person or business can make use of it to monitor the state of their data since the beginning of time that data was committed.
If we take OriginTrail as an example then supermarkets can track where their produce has come from. The different places that produce has travelled from the minute its data is initially committed to the blockchain. Supply chains can also do the same.

Security:

Due to incentives security becomes a great benefit to the blockchain as many nodes join the blockchain network to deliver consensus with other nodes part of the network. This leads to increased security as nodes acting in good faith to mine (commit) transactions to the blockchain are rewarded a fee/cost while those acting maliciously either lose money or gain no reward.

In the case of an outage it becomes possible for the blockchain to maintain high levels of security because then there will be less participants on the network to vote on whether upcoming transactions/data are truth or fraudulent. However, as soon as block rewards increase due to less participants they will normalise as many new participants join the network for consensus before malicious transactions/data are being committed to the blockchain. This, keeps the network highly secure, running at all times and consensus to remain truthful.

Improved traceability:

For any person or organisation that has governance of their own data, the blockchain will have all records of the data they would like to track since the beginning of time that data was committed. It is beneficial because it enables businesses such as supply chains and supermarkets to track where their ingredients come from. This becomes particularly important for consumers as they too can use the blockchain to trace where their products come from which results to transparency for the consumers and trust towards the brand and store they are purchasing from.
Most importantly, improved traceability leads to great accountability should any wrong doing or faulty products be distributed then these can be tracked using the blockchain to acknowledge the parties responsible.

Increased efficiency and speed

All data is digitalised on the blockchain and so there is no need for paper-based materials with any written information of what Person A, B or C has.

It can be inefficient to manually communicate with all these different parties about what the outcome of all different sets of data should be. It is instead much more efficient and reliable to use the blockchain since everyone has the same copies of the data and it is trust less since all parties involved do not have to question the data since the ledger keeps track of everything committed to it.

The communication is digitalised by the network and global consensus is reached in relation to the outcomes within seconds if not minutes. An example would be one where three different people owe each other money and require consistent information to know what each of them owes to one another.

Also, imagine where we have different banking systems that record transactions of each individual where they borrowed money from one another. It would be a headache to track and by using blockchain these separate external systems become embedded into this one global network where all these people can simply see what is or isn’t owed, decided by the systems.

Reduced cost:

No centralized entity needs to charge you to make a transaction in the blockchain. You can have full ownership of your keys and ledger which means not paying additional fees for trading etc. You only deal directly with the blockchain and this is becoming an option people are using more and more often with the rise of Decentralised Exhanges such as UniSwap where I can get liquidity or provide liquidity to other people who leave their assets on the blockchain for people to exchange and keep for themselves.
Additionally, developmental costs can be saved since they no longer need to understand many different software packages. They only need to know the blockchain language to interact with their clients which can happen through a decentralised application (dApp).

(Please do correct me if my understanding was wrong anywhere)

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#2341

  1. Transparency <=> All participants are equally involved in the consensus algorithm and finality only happens when all criteria of consensus are satisfied.

  2. Security <=> Every full node on the Blo\ckchain has a complete copy of the entire blockchain. No Full Node is “More Equal” than another. Security is a matter of agreement and length and standing of the chain is certain every … 10 minutes with Bitcoin.

  3. Improved Traceability <=> Any block, any time can be reviewed and verified. Traceability is a built-in feature of Blockchain technology. It’s a chain.

  4. Increased efficiency and speed <=> It’s funny, but several people continue to be caught up in the “TPS Wars” … Transactions per Second. Yes, many newcomer DLTs are much, much faster, but … who is the ENEMY ?? Bitcoin may take 1 hour to achieve finality on a block. VISA/MC can take up to 90 Days to achieve the same “Finality” on a transaction where it cannot be “Easily” reversed without a court order. Bitcoin in under an hour. No court on EARTH can reverse that mother.

  5. Reduced cost <=> Transparent security with improved traceability, increased efficiency, and reduced costs in under an hour. I cannot get that at any cost with the old solutions. Where do I sign up? How much? Hell, Yes !!!

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#2342

Transparency: Once added to the blockchain, an object is a visible part of that ledger for the life of the ledger.

Security: The built-in immutability, transparency, and availability coupled with its decentralized nature, make the blockchain secure.

Improved traceability: Once a transaction is settled, ita cannot be deleted or altered. It is immutable.

Increased efficiency and speed: A decentralized ledger has the potential to make for a reliable record-keeping system.

Reduced cost: Removing the middleman is always a good idea, but can be especially beneficial for cost reduction purposes.

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#2343

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

  1. Transparency:
  • Transparency because everyone is working from the same immutable data.
  1. Security:
  • Security because no transactions are recorded until agreed upon and everyone has the most recent data available in real time.
  1. Improved traceability:
  • Improved traceability whereas every step in a chain or every transfer is able to be accounted for and proven mathematically back to its origins.
  1. Increased efficiency and speed:
  • Increase efficiency and speed because the data is always up to date and being decentralized the same data is available all across the network instantly saving the hassle of appointments and phone calls or emails (etc.)
  1. Reduced cost:
    Reduced costs because decisions can be made and enforced across the globe in a matter of minutes even seconds and auditing can be done in real time by anybody with access to the network. Less payroll from actual people needed involved.
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#2344

  1. Transparency because every authorized user can see every step. Every step is recorded.

  2. Security because everyone has access to one ledger that cannot be changed without every other user agreeing. Therefore nobody can cheat

  3. Security because transactions are recorded and then encrypted and can’t be modified

  4. Efficiency and speed because there is no need to maintain multiple ledgers or reconcile them.

  5. Reduced cost because it is a more efficient system that does not need parties to make guaranties. Trust between parties is not needed.

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#2345

Transparency: all public blockchains are verifiable by anyone via a block explorer. Many centralized ledgers are not.

Security: all transactions must be verified by nodes. So instead of attacking a single authority one would need to overtake a majority of nodes to attack a blockchain.

Improved traceability: public ledgers allow for an easily auditable trail. This has many use cases from verified goods to efficiently managed supply chains.

Increased efficiency and speed: paper trading of anything is slow and prone to human error blockchains are immutable and much faster.

Reduced cost: what business doesn’t need to save a few pennies. Blockchains expose inefficiency. These insights can streamline many business practices and save many more satoshis.

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#2346

Transparency
All authorized users / participants in a block chain have access to all data and transactions within any block of that chain which means the information is reliable throughout the chain. Therefore tracing information and sources is going to be so much better.

Security:
All transactions must be agreed upon before they get recorded. Consensus of the blockchain means all computers have a record of the transaction and they are all the same.

Improved traceability:
Data recorded on a blockchain can be traced back to it’s origin and provide instant audit functionality. it’s nearly (not to say it’s not) impossible to manipulate data as the data is stored on x number of computers instead of one computer. Also, when a computer droppes from the network all other computers will still have the data.

Increased efficiency and speed:
Single record keeping of a ledger (block) makes it much easier and faster to trace information instead of having to corss reference data between different systems.

Reduced cost:
With blockchain there is no need to have multiple parties or autitors for instance to trace data back to it’s source to verify information and verificatio and then manually report it back in a report as a result of for instance a complaint investigation. This reduces significant time and effort when it comes to investigations of information and root cause analysis for instance in manufacturing.

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#2347

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

  1. Transparency: Is a benefit of using the blockchain because it would be near impossible to forge data in the database. Everyone can see the data and it would take an impossible amount of collusion to cheat the data.
  2. Security: Is a benefit of using the blockchain because due to mining, math, and a protocol we are putting our trust in physics rather than a central authority.
  3. Improved traceability: Is a benefit of using the blockchain because there is accounting information within the transaction. You are able to verify, not trust, where things came from.
  4. Increased efficiency and speed: Are a beneift of using blockchain technology because the record keeping is all done on a single public ledger. All the information is on 1 platform and everyone has access to it. A lot less clutter.
  5. Reduced cost is a benefit of using the blockchain. It is accomplished because people can trust the data on the blockchain that is available to everyone. Rather than having to compile the information and figure out whether data is reliable.
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#2348

Transparency:
It’s a open ledger can be read by all participants.

Security:
When transaction is agreed then it will be registered in the blockchain and linked to the previous transaction, this will be shared on the network. So attacking so many computers will very difficult.

Improved traceability:
Using a decentralized blockchain will register keep a trace of movements of the goods for example.

Increased efficiency and speed:
Using a ledger shared with all participants is more efficient than the network of the bank. And no need to wait days anymore for a single transaction in some cases. using the blockchain this could take seconds or minutes, maximum a few hours in some cases.

Reduced cost:
For some businesses moving a huge amount of money to another continent will cost a lot of money using a Bank transfer, with the blockchain is much cheaper, just some fee cost will go to the miner.

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