Transparency:
Transaction histories are etched permanently into the blockchain making them a record of truth which all participants can see and validate.
Because users can only add to the blockchain (and never take away), all the transactions that ever took place across are visible across the entire network creating a transparent ecosystem.
Security:
Because transactions must be agreed upon across the network (consensus) before being appended into the blockchain, and because changing a single transaction would require changing not only the current block but rehashing all earlier blocks, it is not possible to manipulate prior transactions. This adds another layer of security and transparency to the network.
Improved traceability:
As all transactions become a permanent record in the blockchain, tracing the source of all transactions becomes simple and immediate as each transactions is already âvalidatedâ so auditing not required.
In the case of the supply chain for example, an item and all the parts/ingredients which itâs made up of, can be traced back to each manufacture illustrating the true origin of the components/ingredients.
When exchanges of goods are recorded on a blockchain, an audit trail is developed automatically illustrating all the full journey of the product from its origin to the market.
This historical transaction journey illustrates the validity/authenticity/provenance of assets and prevents fraud.
Increased efficiency and speed:
Blockchain enables streamlining and automation of traditionally slow and cumbersome process such as record keeping and auditing. Because blockchain by design tracks all transactions and is immutable, there is no longer a need to reconcile multiple ledgers as everyone has their own copy of the same âliveâ public ledger which updates every time a new block is added to the chain.
Given that everyone has access to the same information, there is no need to âtrustâ intermediaries as claims are all validated.
Reduced cost:
As blockchain makes the entire process of executing transactions much more efficient both from the (a) execution of the transaction and from the (b) accounting recording of the transaction â cost savings are realized simply by efficiencies. Add to this that the peer to peer architecture of the blockchain ecosystem minimizes the requirement of 3rd party intermediaries â savings are again realized with few participants involved in completing the transaction.