Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2449

Its with the network (or I guess both). Because everyone in the network must agree for something to happen (a transaction occurred)

Yes, all nodes must approve the transaction is indeed valid.

Transactions are not really timestamped but blocks do have a chronological order. The txs in a block are not necessarily in order, because they might not arrive to the miner in time and the miner picks txs based on their fee.

Its not really simultaneous because nodes are separated by distance and it takes time for something like a block to travel to all nodes. But all nodes verify each block on their own and check independently if it is in accordance to the rules of consensus. :slight_smile:

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#2450

Transparency: The blockchain acts as an immutable ledger any data added must be done by consensus. Information on the blockchain is available to those who have permission to access it.

Security: In order for information to be added to the blockchain it must be done by consensus once added it becomes part of the blockchain. The blockchain information is stored on a global decentralised database.

Improved traceability: Once a transaction is added to the blockchain it is linked to the previous transaction creating a chain of immutable information. This historical ledger could be applied to services that require real time supply chain information.

Increased efficiency and speed: The blockchain is a global network database. All participants have access to transactions and information in real time reducing the service time for information and the need for intermediaries.

Reduced cost: The blockchains immutable nature creates a trustless environment thus removing the necessity for middlemen and intermediaries. This creates a more time efficient and cost effective operating environment.

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#2451

I think tranparency , security , improved traceability, increased efficiency and speed, reduced cost , they all connect with each other in a sense of eliminating the middle man of the equation, bringing the bigger benefit a trustless or decentralized network.

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#2452

Transparency : all participants in the consensus mechanism can verify the authenticity of the new value added to the ledger , no need for an auditor.

security : since every miner has a copy of the ledger , the potential hacker has to hack the majority of the miners in order to mutate the blockchain thus the high level of security. and also since its dicentralized we can avoid the case in which the centralized data provider is corrupted.

improved traceability : especially in the supply chain sector , we can easily track the provenance and source of all goods and services through the whole journey from the factory all the way to the consumer.

increased efficiency and speed : through its high availability 7/24/365 and since there is no middlemen we dont need to verify every transaction from middleman to another , instead we look into one single copy of blockchain distributed in the hands of every miner. thus we economize time and energy.

reduced cost : no need to the services of middlemen to participate in the process of transactions so less money spent , and also no need for auditors to verify the authenticity of a company.

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#2453

Transparency: anyone can check the blockchain, nothing can be altered, thus it is a permanent record of historical transactions that can be 100% trusted.
Security: to alter an entry, the whole network would have to agree to do it. This will not happen, as the network is busy minting the next blockā€¦ This means it is secure, and gets more secure every day.
Traceability: the history of whatever is included in the blockchain is immutably stored.
Efficiency and speed: many steps or middlemen can be omitted since the public copy is known to be trustworthy, the days of paper-chasing are coming to an end.
Reduced cost: if a business does not have to spend time or money (and time is money in any business) checking and verifying the authenticity of something then they will of course save money.

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#2454

There is no fraud because every ten minutes, the accuracy is updated and agreed upon.

It is possible to trace a product through its various stages and show this conclusively.

It is fast, because it removes middle men and everyone can see the ledger.

It is secure because there is a whole system of computers and everyone has to agree on any changes together, so there cannot be any one person to corrupt it.

Once you make a transactions itā€™s final and canā€™t be changed so people canā€™t scam a business by asking for refunds after receiving products.

Blockchain makes it possible to do business with strangers and people you donā€™t trust, so you can do business all over the world without any previous relationship.

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#2455

In blockcnain anyine can see the alowed information in it , this information mus be agreed by several compueters in consensus and after iyĀ“s benn recorded in several places, you can not change it. All information is permanently recorded in the blockchain from step 1 so you can track provenance without fail. Less paperwok to record and less documentation to analyse will save time. Business can be made without midlemans increasin speed and profits.

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#2456

Transparency: Every user of the blockchain ecosystem becomes part of the network. Anybody can become a ledger holder. Any verified and approved transaction will stay within the system forever. Nobody can redo, remove, or modify the data. Once the data was approved by a minimum number of participants, the rest of the network will have the same information, making it very easy to verify.

Security: Encryption is one of the critical aspects of blockchain technology. When new data, as well as transactions, were requested to be entered, first, it goes for the verification process. Once itā€™s verified, then the command will be executed. Itā€™s impossible to manipulate through hacking operations, as the attacker should hack the whole system.

Improved traceability: More and more participants are involved in using blockchain infrastructure. Automatically everything becomes traceable and transparent. Auditing becomes very easy, as you can always check the source and the end product.

Increased efficiency and speed: In traditional business, you have to have many bureaucratic steps to meet the requirements. Otherwise, you cannot be a part of the business environment. Automation becomes very efficient, as it allows you to structure your system most comfortably way. Trust within the transparent system makes the processes very fast, as there will be no need for human interaction in each step.

Reduced cost: Blockchain removes the necessity for obtaining extra layers of security or regulations within your system. There is no need for broad insurance coverage, complex accounting services, professional auditing, and other expensive services. This way of doing business always decreases the price of the end product.

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#2457

Transparency- Due to the function of the blockchain as a distributed ledger, all parties will have the same documentation and network infrastructure, this will cut through the informational silos of third party networks.
Security- The function of security is tied to the mining incentives to maintain the network, the finality of the blockchain and the transparency described above. It is verifiable and therefore trustless.
Improved Traceability- Unlike traditional supply-chain data now, the entire process and network is transparent, and uses a unified network structure to store data. The transaction history of every participant of the network is immortalized in the blockchain.
Increased efficiency and speed- The availability and consistency of the unified network will mean that all the third party data management, as well as many administrative and accounting functions will be made obsolete.
Reduced Cost- This reduced demand for some current labor costs will reduce the overhead of many business but also have a corresponding devastating impact on those that were employed performing those function.

For example, if I think about all of the administrative and accounting labor that goes into something like a government collecting taxes: (for this example Iā€™m choosing to set aside the protection implications of of an asset on a decentralized network and assume that if you can be identified you can be sued for assets.) On the blockchain if you can be identified, all of your transactions will be in effect self-reported without you having to put any effort into tracking them or paying an accountant to file your taxes. Correspondingly, the massive infrastructure of something like the IRS could be massively reduced to only those components proficient in utilizing the blockchain, and necessary to execute the process. That would likely also have the secondary impact of requiring lawyers (again competent in blockchain) to find some way of getting those taxes owed since they canā€™t just be fished out of your account on a decentralized exchange. In short, I believe that while we may be able to identify some obvious cost efficiencies from blockchain, it will in all likelihood also create new problems/opportunities that will require people professionally bilingual in blockchain to solve them. And those people will likely not be very cheap.

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#2458

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

  1. Transparency: The transparency blockchain creates due to the accessibility of information with transactions, what ingredients and where they come from in food.
  2. Security: The security is strong due to the fact miners run 24/7.This is because of the monetary incentives thus increasing security.
  3. Improved traceability: The blockchain keeps every transaction and never will delete/forget it.
  4. Increased efficiency and speed: The middle man is cut out of the equation and its just going between the sender and the receiver.
  5. Reduced cost: Donā€™t have to pay the middle man a fee for helping with the transaction.
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#2459

Transparency. All transactions and information recorded is on the blockchain forever, and any user can verify independently the authenticity of information

Security: Network participants are incentivized only to be honest actors to receive rewards, thus creating a large and powerful network that they want to keep secure. The more participants securing the network, the less points of failure or attack are available.

Improved Traceability: All transactions on the blockchain are forever stored on the ledger, and cannot be manipulated, and users have the ability to permissionlessly verify any transaction or information stored on the blockchain.

Reduced Cost: Because the blockchain is transparent and secure, it is also trusted. This eliminates the need waste resources on third parties or intermediaries needed to perform any tasks regarding verification of authenticity, when the network can do it already.

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#2460

Transparency:

Before the data is added to the blockchain it has to be verified and agreed on by all nodes. Once on the blockchain, it is available to the public for anyone to access and verify. That ensures a transparent and trustless environment.

Security:

All transaction information is shared and agreed on by many computers that approve it and it is also linked to a previous block. Also, transparency is a huge part of ensuring security.

Improved traceability:

It is easy for anybody capable of tracing transactions to do so. Every transaction is public and the blockchains carry information about the address, amount, and exact time of execution. It is easy to authenticate it and conduct a complete and precise audit
.
Increased efficiency and speed:

The is no middleman to rely on, a transaction is made and cleared faster and cheaper than the traditional way. Also, it can be done at any time and day anywhere on the globe, no days off and holidays, you donā€™t have to wait for Monday morning for the banks to open.

Reduced cost:

Despite the fact that the miners pick the highest transaction cost first, the fees are still lower than traditional bank fees. Less intermediary means fewer commissions and faster speed.

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#2461

  1. Transparency: Everyone involved in the network can see all transactions and these transactions can never be altered on the blockchain. These transactions on the blockchain are more accurate and consistent in nature.

  2. Security: Transactions are agreed upon before they are ever recorded. Moreover, transactions are encrypted and linked to previous transactions. The data/information from transactions is stored across a network of computers as opposed to a single server which can be compromised by hackers. This type of security helps prevent fraud and unauthorized activity.

  3. Improved traceability: Historical audit trails on the blockchain can show where an asset came from and every stop it made on its journey to its final destination. This can help confirm the authenticity of items. Also, it can help identify when food items could have been contaminated on the blockchain and prevent future outbreaks of various illnesses or diseases.

  4. Increased efficiency and speed: Transactions can be completed faster and more efficiently without the need for third-party mediation that can occasionally have a degree of human error.

  5. Reduced cost: With blockchain, you donā€™t need as many third parties or middlemen to verify transactions. With a trustless system individuals, organizations and governments can trust the data on the blockchain with little to no review of the data on the blockchain.

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#2462

The benefits of using a blockchain.

Transparency:
If you want transparency, the potential benefits of public ledger blockchain are vast.
Examples:
Voting
Chain of custody
Proof of origin
Financial audits

Security:
Any alterations have to be recorded on the blockchain, providing an immutable history.
A distributed ledger provides permanence.
Encryption provides privacy.

Improved traceability:
Every alteration must be recorded to the blockchain and cannot be deleted, providing an immutable history.

Increased efficiency and speed:
Especially for large or international transactions.

Reduced cost:
It can be.

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#2463

  1. All the participants of the blockchain share the same information. The information can only be uptated through the consensus of all the participants. This makes the data much more accurate, consistent and transparent.

  2. The transactions must be agreed upon before they are recorded then it is encrypted and linked to the previous transaction. In addition, information is stored accross a network of computer instead of on a single server, thus making it much more difficult for anyone to compromise the transaction data.

  3. The blockchain creates a perfect historical transaction data that help to verify the authenticity of the information

  4. Traditionally, trading anything is a time-consuming process. Transactions in a blockchain are faster and more efficient because they are automated, thus the processing of a third party is removed and it is not prone to human error.

  5. Businesses reduce their cost by not having to trust their trading partners so you donā€™t have to review a lot of documentation to complete a trade.

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#2464

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

Transparency:

  • Transparency is a benefit because anyone has access to the blockchain (if they are interested to see). As the world becomes increasingly skeptical of authority and companies, the transparency brings a sense of comfort to know how business are using said information/finances.

Security:

  • Because the blockchain is built on an consensus protocol, it provides a sense of security that is trustless. Many would find this sense of security a benefit.

Improved traceability:

  • All of the transactions on the ledger are recorded forever, so an individual can always search the ledger to track where funds or information has gone.

Increased efficiency and speed:

  • The blockchain removes the necessity for third parties that add time to transactions.

Reduced cost:

  • Because the blockchain is trusted and immutable, many types of middleman can be removed.
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#2465

Transparency: All the transactions in Blockchain have a backup in all the computers that are part of the network. To confirm a transaction you need a consensus of all the computers that are part of the network.

Security: Transaction must be confirmed through consensus by all the computers in the network. After the transaction is confirmed is encrypted and linked to the previous transaction. You canĀ“t hack the transactions because you would have to control the computers in the network to do that.

Improved traceability: If you exchange with goods that are recorded on a Blockchain you could track all the road from its beginning and every stop they made until the final stop.

Increased efficiency and speed: By streamlining and automating processes with Blockchain, transactions can be completed faster and more efficiently.

Reduced cost: You donĀ“t need a middleman or third party to have guarantees of your business. You donĀ“t need to trust them because you can trust the data on the blockchain.

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#2466

1. Transparency: Blockchain is a type of distributed ledger, so all network participants share the same documentation as opposed to digital copies, which can only be changed through consensus.
2. Security: After transactions are approved, they are encrypted and linked to the previous transaction. The information is stored across a network of computers instead of single server, which makes it very difficult for hackers to compromise data.
3. Improved traceability: When exchanges of goods are recorded on a blockchain, you end up with an audit trail that shows were an asset came from and every stop it made on its journey. This process can help verify the authenticity of assets and prevent fraud.
4. Increased efficiency and speed: Since record keeping is performed using a single digital ledger that is shared among participants, you donā€™t have to reconcile multiple ledgers and end up with less clutter.
5. Reduced cost: With blockchain, you can avoid infinite amounts of fees from third parties and middlemen to make guarantees because it doesnā€™t matter if you trust the person you are doing business with or not.

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#2467

Transparency:

  • You can track everything in real-time.

Security:

  • The transactions have to be agreed before to be recorded. It is very difficult to hack it because they are stored in multiple computers.

Improved traceability:

  • When the transaction is approved, you can track where it is coming from

Increased efficiency and speed:
The process is automated which means that you do not need a middlemen. When you do not need him, it is not necessary to wait for his permission / authorization.

Reduced cost:

  • By trusting the blockchain, the middlemen is not necessary and you will save a lot of cost that otherwise these money will be paid to them
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#2468

One benefit of using blockchain is the transparency of all information recorded. Every transaction information is shared by all the nodes in the network. All the network shares and stores the same information. Everyone authorized can verify the information at any time but cannot change it.
Security is a great benefit of using blockchain because the information cannot be changed or hacked because it is recorded in many many distributed ledgers.
Improved traceability is another benefit because the historical transactions recorded in a blockchain will provide an efficient way to audit a supply chain verifying quality and authenticity.
Blockchain also increases efficiency and speed because the correct and verified information is available for every shareholder in a process. Desitions can be made faster throughout any process with no need for intermediaries or third-party validators of the information.
All of the above translates into reduced costs because businesses can reduce intermediaries and automate processes using technology. Fewer errors, faster processes, lower costs.

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