Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#222

There are many benefits to using the blockchain for any industry.
Blockchain adds transparency and Improved tractability to every transaction because every participant has an individual copy of the blockcahain as some form of distributed ledger. Updates to your copy of the blockchain can only be possible through consensus of the network. The benefit from this is that it makes fraud a lot harder, and adds security to the network. Tracking and even real-time auditing is possible and beneficial by making the network more efficient for auditing and accounting.Another way to benefit from the efficiency and speed of the network is through achieving faster settlements. With blockchain technology, streamlined and automated transactions are possible.

The security of the network is further strengthened with the combination of consensus of the network and the encryption of new transactions upon approval from the network. This type of security is beneficial because like the internet transfers information, a blockchain can now be used not only to transfer information but more importantly as a method of transferring Value.

With a blockchain network, transactions can be made peer-to-peer thus involving less “middlemen”. This is extremely beneficial to any business or individual because cost is reduced in a sense where there are less stops to the final destination, therefore less fees. Another benefit to reduced cost is the option to store value on a digital network with little to no cost.

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#223

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

Transparency:
An open ledger that allows scrutiny of transactions which gives confidence to all parties involved. Transparency is heavily related to security.

Security:
Security in this contexts suggests that confirmation through consensus has occurred and therefore all parties in the transaction have high confidence.

Improved traceability:
Improved traceability suggests that origin and history of products, services and transactions are all available and confidence comes from knowing those data details cannot be changed. The ledger is not entered in at a later date but in real time.

Increased efficiency and speed:
blockchain is peer to peer transactions which implies no contamination or need to wait for secondary witnesses. The transaction itself is evidence of multiple witness to verification of the the transactions.

Reduced cost:
Reduction in cost is due to expedience in verification and confirmation. High level of witness to the transaction is integral to the system. Transactions are now expedient because of high level of confidence of certainty backed with multiple witnesses with locked in surety of the event.

#224

1- Blockchain are transparent because of consensus and immutability of the distributed ledger: any new block that gets added has to be agreed upon by the nodes, and once it is on the blockchain, everyone can verify that the transaction took place.

2- Distribution of the ledger on several nodes around the world makes it more difficult for hacker to take the type of actions they can promote on centralized servers. 51% consensus makes it very difficult for a single or an organized group of nodes to change the nature or the history of a transaction on the ledger.

3- As the article says, for industries where supply chain is key, the blockchain provides an audit trail that allows to track the origin of a good any time.

4- No paper work for record-keeping and no third party needed to validate the occurrence of transaction, only direct verification on the blockchain needed.

5- Again, no need for documentation handling/separated bookkeeping, nor for a middle man to be involved, because EVERYONE has access to a single, immutable ledger.

#225

Blockchains provide many benefits over conventional methods. A blockchain is transparent, anyone can preform an audit with up to date information any time of day or night. A blockchain has nodes spread all over the globe, the more nodes the more secure I can be using it. Traditional methods use centralized services that are capable of being hacked, shut down, corrupted, etc. It would take a massive amount of work to hack into over half of the nodes simultaneously to change a blockchain such as Bitcoin or Ethereum. Blockchains offer traceability, I can confirm a transaction that took place moments ago or decades ago, it’s all right on the chain for anyone to see. Blockchains are efficient and fast, I don’t have to wait all week-end for a business to open back up, or wait a week or two for a transaction to go from bank to bank to bank to bank to bank to bank to bank to recipient. I can send it directly to the recipient. That makes it cheaper. There is no skimming off the top every time it exchanges hands. I pay a one time fee to the miners and it goes directly to who I want, securely, immediately, safely.

#226

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

Transparency:
Everyone who can participate knows the current state of the network, which consist of the history of all transactions. Any changes require consensus. So it’s not possible there is always one truth which is very transparent.

Security:
Instead of storing in a single database, which can relatively easily be tampered, blockchain stores data across many computers. Also all blocks are linked to previous blocks. Therefore any change in data requires change across multiple blocks, across multiple computers. Which is much much more difficult and way less practical to do.

Improved traceability:
Instead of saving only the current state, blockchain stores the transactions (which will result in the current state). Therefore anything can be traced back to its origin.

Increased efficiency and speed:
Instead of relying on business/human processes and third parties, which can take time, blockchain only relies on a mathematical system and the state of the blockchain. There are no disagreements, because the blockchain knows the only truth.

Reduced cost:
Without third-parties, processes can be optimised and result to less cost.

#227

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

Transparency: Blockchain transactions work on a consensus of all servers agreeing. Once the transactionis complete, it can not be altered, or all transactions after that would need to be altered.

Security: Blockchain is secure by having all networks in agreement before a transaction is recorded, they are then linked to the previous transaction, and of course all servers are in agreement. This makes it very difficult to hack.

Improved traceability: Product in the blockchain can be tracked everywhere along their process in the blockchain, becoming a permanent transaction, which is faster and much more reliable than paper tracking.

Increased efficiency and speed: Using the blockchain for tracking goods/products can increase the accuracy and speed of processing goods.

Reduced cost: Using blockchain for sourcing/tracking/ goods can remove the middleman and bring back trust in business transactions.

#228

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

  1. Transparency:

Any data that is written to the ledger can only be done so via the consensus protocol, which means every participant must agree on it, because every participant has a copy of the ledger. Once committed to ledger, the record is permanent. To change anything, the entire blockchain would beed to be re-written which would be extremely costly, and would be costly for for every participant due to the consensus mechanism.

  1. Security:

It is extremely hard for data to be compromised by hackers, firstly due to the distributed architecture, and secondly, due to the structure of blockchain networks, and the process of creating blocks, i.e. consensus, and encrypting the data in the blocks.

  1. Improved traceability:

When the entire supply chain has auditing via a distributed immutable ledger, every component and process is openly viewable and verifiable.

  1. Increased efficiency and speed:

Blockchain introduces automation and combines accounting and transactional processes into one single process, which increases speed and efficiency.

  1. Reduced cost:

Because blockchain is a trustless protocol, it enables us to remove third parties, thus reducing cost and friction. Trustless means you only need to rely on the protocol itself to do a transaction, which streamlines the entire process, saving time and expense. The results of the transaction are written into the immutable ledger, which is available for everyone to view, so auditing becomes less cumbersome and time-consuming.

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#229
  • Transparency means it is a distributed ledger that has the same documentation shared by everyone and available to all with permissioned access.
  • Security because transactions are agreed upon and approved, then linked to the previous one and stored across a network of computers, not just one. This prevents fraud.
  • Improved tractability meaning everything in the supply chain can be accurately tracked.
  • There is a single digital ledger that everyone has access to so intermediaries are not needed which increases efficiency.
  • Data on the block-chain is trusted and immutable which reduces cost because middle men are not needed.
#230

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

Transparency: All the components of a transaction including documents can be accessed by all involved parties, thereby reducing tampering, lost pages etc.

Security: The blockchain to date is the most secure method of transportating data which is sotred on the system itself. The tranaction is immediately see on the blockchain once made and therefore, verifiable. Since the original block can not be altered, it is very difficult to change or compromise information/data.

Improved traceability: The permanent unalterable blockchain data ledger can view and trace information anywhere on the chain by its digital address. In the case of blockchain use for supplychain, the product can be inspected at anypint along its journey to a single source and without multiple ledgers.

Increased efficiency and speed: Paper sources of data recording are slow and existing digital ledgers aside from blockchain are subject to errors and tampering. On the blockchaing data is secured and made in real time without the need for 3rd party auditors or middle men improving not only cost, but speed and efficiency.

Reduced cost: The elimination of 3rd party intermediaries results in a significant cost to most businesses. One example that immediately comes to mind is credit cards which incur a 2 to 3% fee from the banking system which can result in millions of dollars or more in savings.

#231

Transparency:

  • Blockchain transactions is a public ledger that is visible to all parties that are a part of the network.

Security:

  • You trust in the math, and the protocol, all the information on the blockchain is linked with other blocks that validate the block before it.

Improved traceability:

  • Blockchain allows real-time auditing that keeps track of all transaction and exchanges on the network.

Increased efficiency and speed:

  • There is one digital public ledger that everyone shares on the network, which provides cleaning, easier, and faster solution towards exchanges and transactions on the network.

Reduced cost:

  • Blockchain reduces the cost by eliminating the middle man and cutting out third parties. This allows you to trust in the data that is permanently in the network to keep track of everything.
#232

Transparency: Once consensus has been reached across the network/ledger any participant can go back and retrace origin of steps to transaction.

Security: After a transaction has reached consensus/mathematically validated on the blockchain it is encrypted /recorded across the network/distributed ledger therefore transaction becomes very hard to alter.

Improved traceability: If a company is dealing with product or food each step can be validated across the network ledger and also could be retraced back to its origin , Provenance

Increased efficiency and speed: Since transactions are electronically recorded and mathematically validated on the bockchain across the network/distributed ledger the verification process is trustless therefore there is no need multiple verification’s.

Reduced cost: Origin to end use transactions that reach consensus on the blockchain do not need middle companies or people to validate, each step therefore making a transaction much more cost effective and faster.

#233

Transparency: In a blockchain all parties share the same data.

Security: Information is stored across a network instead of on a single server.

Improved traceability: because you can verify the authenticity of assets

Increased efficiency and speed: Because everybody has access to the same data there is no need for a third party. Only the participants of the transaction are involved.

Reduced cost: Because you have only to trust the data on the blockchain there are less actions involved to make a trade.

#234

Transparency: all data is decentral available for anyone at anytime. There is only one truth (consensus) for everyone. Backward maintenance of data is not possible.
Security: there is one consens in the whole decentral network. Not different copies in different status. Data is immutable. Due to the decentralized nature, you do not have an attack point.
Impr. Traceability : any transaction or information can be traced and read at any time once it is verified.
Incr. Efficiency and speed: data available at any time. No time dependencies and no need for 3rd party information and waiting time.
Reduced costs: no 3rd party involved. No idle times. Paperless working

#235

These are the benefits of using a blockchain.

Transparency:

All information stored on a blockchain is transparent because the record is open to the public and anyone can view the record or breadcrumbs of all the transactions in the chain. This means we do not have to trust an individual we can merely trust the network because it is immutable by design and once an event has occurred and is recorded it is final. To change an event on the chain would mean changing all subsequent events and this would be impossible.

Security:

The blockchain is a massive move away from how we traditionally have stored information such as on central data stores These types of storage facilities offer a single vector of attack. A blockchain is a different beast. There isn’t one source of data to attack. The blockchain is a single copy of information shared among a global network of computers. No data is added to the ledger unless there is consensus among the participants. Once consensus is reached it is added to the block and encrypted. This makes it very secure and less vulnerable to attack.

Improved trace-ability:

If a company were utilizing a blockchain to improve its transparency every item made would have a trail of breadcrumbs showing where an item came from and the path it gook on its journey. So if a company advertise its product in a particular way it removes the need for trust because everyone can verify for themselves what you say is true by examining the blockchain.

Increased efficiency and speed:

Traditional methods of record keeping are slow and often contain errors. Sometimes there are many different copies of records which may not match and sometimes need to be fixed. This introduces extra effort and time and money to consolidate. Also extra parties may be needed to check those records are true and complete. The blockchain uses one ledger which is shared among all the parties. Any changes to the ledger have to be agreed on by consensus thus removing the need for trust.

Reduced cost:

By using one copy of a blockchain ledger costs are reduced because all the third parties are removed. Also less work has to be done researching a new product or item because interested parties have access to the immutable ledger and you don’t have to trust a potential partner because you just have to trust the network.

#236

1. Transparency:
Transactions are completely transparent in blockchain technology.
All transactions are never controlled by a single entity.
All computers on the network must agree through a consensus of any transaction.
Blockchain stops defrauding or gaining an unfair advantage.
Any change of a transaction on the network, all computers must verify and agree to proceed.

2. Security:
Blockchain is a more secure system than the older record keeping methods used prior.
All data must be agreed by all computers before a record is embedded into the blockchain. All information is held by the network and never held by a single entity or server making it very difficult for hackers too corrupt and data from any sector - financial, government etc. Blockchain creates a sense of comfort to all users elevating the prospect of fraud where people or companies may gain an unfair advantage.

3. Improved Traceability:
By using blockchain technology, all products are recorded showing an audit trail allowing companies or individual’s to trace their item came from and every stop it makes on its journey helping to verify the authenticity of your item and prevent fraud which increases the loss of time and money.

4. Increase Efficiency and Speed:
By streamlining processes through blockchain the world can now be more efficient, faster. Cutting out old methods in paperwork lodging data into book ledgers with a chance of human errors. Allowing everyone access to information and deleting intermediaries and most importantly speeding up settlement faster.

5. Reduced cost:
All companies want to reduce costs. Blockchain decreases middlemen. You only require to trust the integrity of the person / people /company you are dealing with. Cut down on the amount of work carried out as you will be able to permit others to share documents in an immutable version.

#237

Homework
1.Transparency
Once transaction or data have been written on blockchain then its irreversible or finality and since ledger is oftentimes public then anyone can read the info that is engraved on digital stone :slight_smile:
2.Security
Because blockchain is shared among computers in network and is not centralized in one place (server/vault/facility) then attacking it is hard or impossible. Before any data is stored on blockchain then all participating nodes have to agree/consensus on writing new info on blockchain.
3. Improved traceability
Auditing becomes easier when using blockchain, let’s say Bananas from Ecuador to Estonia can be traced when any exchanges done with bananas are recorded on blockchain. Who picked (payd), who packed, who shipped/exported, who imported, who distributed or sold, if all previous steps are recorded on blockchain then accounting and tracking becomes easier and efficient.
4.Increased efficiency and speed
I don’t know much of accounting, but doing payment is bank and keeping checks/receipt, calculating, keeping records, and big error may happen when done in cash after all this give all info to auditing is time consuming. Using blockchain all data is stored on there and sharing ledger to other needed participants where anyone can look for needed info is much more time conservating and increases efficiency.
5. Reduced cost
While having access to immutable ledger, business can cut out middleman and take their profit. Business can just look up info on blockchain making system trustless and doing business operation with second party without any trust involved.

#238

Transparency:

Security: You remove the trust component, and instead rely on verification. The system secures you from fraudulence.

Improved traceability: You can trace the whole chain back to the source, and there are no way to corrupt it.

Increased efficiency and speed: Transactions are faster the regular institutions and work on a global level.

Reduced cost: There are no need for third parties in the same sense that there are today.

#239

1 Transparency. To me this means that all the transactions on the ledger are public and available for all to see, which is good for traceability. Transactions are only written into the blockchain when there is consensus and therefore can be trusted.

2 Security
This is a function of decentralized networks. No one computer can be compromised and the ledger changed to reflect different information. No government or other body can change the information on the blockchain therefore it is secure.

3 improved traceability is similar to transparency in that all blocks are available to read and therefore the transactions can be easily traced and audited. If it is a supply chain then it is easy to see every component in the chain as all steps are recorded and tracking/tracing becomes much easier.

4 increased speed and efficiency. This is one of the strengths of digital currency in that it takes a short time to transfer large amounts of capital across the world and much cheaper than transporting gold or even sending fiat currency through the banking system. Because the process is trustless it can proceed very quickly. XRP transactions happen really quickly and now lightening bitcoin transactions are much quicker than the banking sector.

5 reduced cost. As stated in the previous answer the fees associated with transfer of crypto assets is very small in comparison with the current banking charges to do the same thing as intermediary banks and steps to transfer currency do not apply.

#240

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

Transparency:
There are no information sylos. Every nodes customer in the ecosystem, supply chain has the same copy of the database.

Security:
Nodes have reach consensus in the network.

Improved traceability:
No silos and immutability

Increased efficiency and speed:
No silos, no copy past, one ledger cryptographic connected, trustless, no middleman involved

Reduced cost:
No different databases, easier auditable,

#241
  1. Transparency: all network participants share the same data, the transactions are traceable;
  2. Security:You are trusting the network;
  3. Improved traceability: helps to verify the authenticity of assets, prevents fraud;
  4. Increased efficiency: no third party mediation, computers are fast;
  5. Reduced cost: less documentation, no human errors, fast;