Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2469

Transparency: Transparency is valuable because it allows all parties who have permission to see valid transactions. This is achieved through consensus.

Security: Security is beneficial because the transactions are all stored on-chain through many computers making it hard to hack and modify.

Improved traceability: Allows users to view a audit trail of where something for example a important document came from and all the steps it took to get to the end-user/customer.

Increased efficiency and speed: Record keeping becomes easier to view allowing all parties to trust documents rather that having to go through middle men.

Reduced cost: Reduces the amount of third parties to help facilitate a transaction, making cost go down.

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#2470
  1. With transparency everyone can see what is happening in real-time without having to trust anyone. they only have to look at the public ledger. people and companies can be held accountable through the transparency of the blockchain. they are incentivized to be moral players in the market.
  2. Security is crucial in almost every aspect of modern-day life. blockchains are the most secure methods of transacting in the known world. you donā€™t have to worry about people stealing your money or lying.
  3. traceability in the industrial supply business is very important. almost every project requires mill test reports which state where a product is manufactured. acquiring the MTRā€™s and organizing them is a very tedious and sometimes inaccurate process. Also, some products may originate from unsavory places (i.e. blood diamonds, sweatshops, etc). with a blockchain, it is much easier to trace a product back to its true origin
  4. I will again use an example from my current work. we operate on a paper heavy system. when we sell something there are two copies of that order printed. from there it goes through many peopleā€™s hands to provide the correct product to the customer. it takes days to verify an order is delivered, and then several more days to receive an invoice from a vendor, and then several more days to process that invoice. with the blockchain, the whole process can be completed in hours rather than days. many times a change will be made on one copy, but not the other of a sales order. this leads to discrepancies that take even more time to straighten out. with the blockchain, there is only one copy so those mistakes would be eliminated.
  5. time is money. reducing the amount of time required to complete a transaction reduces the cost of that transaction. fixing mistakes also cost time. reducing mistakes, and reducing average transaction time allows enterprises to focus on growing their business instead of pushing papers. it also allows them to process higher volumes of transactions.
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#2471

  1. TRANSPARENCY:
    Blockchain is public distributed ledger (think of it as the viking stone), all network parties store the same information that can only be updated through consensus, (meaning that everyone involved must agree on it).
    Data on a blockchain is more accurate, consistent and transparent.

  2. SECURITY:
    Transactions must bee agreed before they are recorded, after it is approved, itā€™s encrypted and linked to the previous transaction. Information is stored across a network of computer instead of a single server, this keeps the data more secure and prevents fraud/unauthorized activity.

  3. TRACEBILITY:
    When an exchanged is recorded you end up with an audit trial that shows where an asset came from and all the steps that it made on its journey. This data can be used to verify the autenticity.

  4. EFFICIENCY AND SPEED:
    Record-keeping is performed using a single ledger that is shared with all participants the need of trust is replaced with the efficiency of simply verifying the transaction.
    By streamlining and automating a trading process with the blockchain, transactions can be completed much faster.

  5. REDUCED COST:
    You donā€™t need many third parties.

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#2472

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

  1. Transparency:
    As it is is a distributed ledger and the entire network shares the same documentation, the alteration of it would need to go through the consensus of the entire network.
  2. Security:
    As the Data is spread all over to the entire network, hacking makes not much sense, as all networks would need to be changed, in order to manipulate data for example.
  3. Improved traceability:
    As every single movement can be tracked in the blockchain, it can help to verify the authenticity of assets and prevent fraud.
  4. Increased efficiency and speed:
    As you can skip paper trails and everyone can access the data on the network, which is secure, transactions can be completed faster and more efficiently.
  5. Reduced cost:
    As you need less documentation to for example approve transactions or make guarantees, you donā€™t need to trust your trading partner and reduce cost
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#2473

Transparency:

By having blockchain with high availability, you can always access the networks ledgerā€™s documents that are stored within multiple sources. Then any immutable transaction is transparent the by retrieving a copy of the document or using a public tool that keeps updated copy of the blockchain all the time such as etherscan for ETH.

Security:

The blockchain data is decentralized been stored in a-lot of miners that consistently working on validating each transactions in order to reach consensus to validate each one, and only after reaching a consensus the transaction will be updated in the blockchain. which means that a hacker, scammer, or some entity canā€™t manipulate the data since the copy is spread through the network and there no one place that need to be attached in order to computerize the network.

Improved traceability:

As already mentioned the transparency of the transactions allow us to track and trace each transaction and the transactionā€™s details, the details will be established by the use case of the network. for example in financial transaction weā€™ll be able to see the amount, sender address, receiver address, maybe more information or maybe less depends on the protocol privacy level. you can trace other material items, orders, ingredients sources and quality approvals, package tracing and more.

Increased efficiency and speed:

Since the process of verifying and updating the blockchain is fully automated we completely removed the need for human intervention in order to review, approve, and transfer the funds, which across different entities can take several work days to fully complete the transfer. While in the blockchain once the workers approved the transaction itā€™s done.

Reduced cost:

One of the goal of every company is to be officiant, if itā€™s by been cost officiant, or by providing a fast and high availability for the system. by having a ledger we reduce the need of maintaining one DB center or usage of 3rd party services in order to store and protect the data. the system will produce incentives to the working miner that will store and protect the network and itā€™s ā€˜freeā€™ to the company since the incentives been produced while the blockchain been created.

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#2474
  1. Transparency: everyone can see the transactions on the blockchain, nothing can be hidden
  2. Security: blockchain is hard to hack because the information is spread throughout many users
  3. Improved traceability: all information is related to something else and points of origin and where it goes can be traced
  4. Increased efficiency and speed: everyone has access to same information at any given time so no need for lots of paper trail
  5. Reduced cost: no need for third party or middlemen such as an auditor as everything can be confirmed that it happened via blockchain
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#2475

Transparency: Since every transaction is recorded and all history can be viewed it eliminates fraud.
Security: Knowing all transactions are safely recorded in a decentralized fashion allows data to never be lost, stolen or changed.
Improved traceability: The ability to trace a supply chain to itā€™s origin can eliminate shady businesses practices and improve end use products
Increased efficiency and speed: Saves tons of time rather than working through intermediaries. 10 minutes to send Bitcoin or 7 days to send a international wire transfer?
Reduced Cost: Intermediaries cost money and timeā€¦this eliminates both. Everything is cheaper and faster going to the source.

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#2476

  1. Transparency: Blockchain enables greater transparency. When a new transaction comes through everyone in the network has to reach an agreement and accept it. Thus everyone shares the same documentation.

  2. Security: Blockchain network has the best security so far. When someone needs to complete a transaction then it is received by every other member in the networks and they reach an agreement whether they should accept or reject it. Also, information is stored across a network of computers instead of on a single server making it difficult for hackers to compromise the transaction.

  3. Improved traceability: With blockchain, it becomes easier to trace data because when the exchange of goods is recorded on blockchain an audit trail is created. It shows the origin of the asset and its journey afterward. This historical transaction data can also help to verify the authenticity of assets.

  4. Increased efficiency and speed: Everything is fast in blockchain. Data is quick and easy to validate. It reduces human error as happens in paper-heavy processes. Transactions are also fast and reliable than other systems.

  5. Reduced cost: Its not expensive as deals and guarantees are fulfilled between you and your trading partner without the need of any middlemen or intermediaries and paying them extra.

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#2477
  1. All transaction are available for anyone to see. Makes validating new transactions possible.
  2. All parties are incentivised to be truthful. No dependency on one entity, but on the network.
  3. It is a public ledger and all transactions are visible.
  4. No need for paper or looking into several databases. All in one.
  5. The network finds an equilibrium where miners are leaving when costs are to high and come back in when money can be made.
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#2478

Transparency: Everyone can write to the the ledger , at least in a public blockchain where every user has the same permissions to write to the blockchain

Security: All data added to the blockchain must be approved first through the network via some sort of consensus mechanisms IE proof of work or proof stake . Also since the system is decentralized and multiple machines and or user have a accurate complete record of account when it comes to transactions , if a hacker hacked one user or device and attempted to change a record it would work unless the hacker was able to do a 51% attack which very time , energy , and money intense for larger blockchains such as Bitcoin make the task harder and harder everyday is hashrate or people actively mining on the network increase as that would mean either more users or more demanding consensus difficulty for the users machine . So either users went up or adding a block the blockchain increased in difficulty and as that happens the price to do a 51% attack goes up as more resources are need to hack the network

Improved traceability: Since its a single decentralized database and the user wouldnā€™t be dealing with multiple systems to manage data its like a documented family tree for data the hierarchy of data or the flow of it one could say could be traced back as each new transactions is associated with the last transaction added to the blockchain . It should be as simple looking a computer file path , able to see each directory each location and one comes from another . Similar to C:\platform-tools\systrace . I can see that folder is on the C drive and sys trace resides in the folder platform-tools . Basically the same concept

Increased efficiency and speed: Due to not having to deal with multiple databases it saves time when following the origin of a piece of data . It also eliminates any flawed human points of error when data is not transparent and handed through multiple trusted parties ie middleman. This in itself increases time needed to add data , adds a new point of failure , and obfuscates data sources. Not to mention accuracy is not guaranteed when going through multiple parties as one can not see actively how the data is being handles or if its being modified . That all goes away on blockchain systems as its similar to if someone just wrote a speech in front of ten people and the 10 people know the set of data in that speech ie the words. When everything is being edited and modified and done in the open and the 10 people can attest to what has happened and will reject liars who say the speech utter other words as they are aware of what is said nullifying trust issues within the 10 group party . Scaled this eliminates trust in a oversimplified explanation of this

Reduced cost: Not having to pay middle man to manage and maintain your data and having a system that is self running eliminates bureaucracy, paper work , and again adds accuracy and reliability to the process with less steps. This saves time and money as the flow of data is unencumbered by verification steps , safeguarding steps , backing up steps . No need to back up a blockchain as the users ie network maintains the data on its own , backups a copy to every device on the network . Which means one can invest less time in management and data security measures allowing money to be saved with a increase in efficiency and productivity

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#2479

Transparency:
A high level of transparency through the use of blockchain technology is possible because all network validators use the same database. All new data can only be approved by consensus. Consensus means that all network validators must agree on whether or not to add new data to the database.
Information in a blockchain is immutable, more transparent, more precise than in central databases. Information about the blockchain is also available to all members who have authorization access.

Security:
New data must first be verfied by the network participants and only then it will be added to the blockchain database in encrypted form. Since the data is stored via a computer network instead of a central database, it is much more effective against fraud and manipulation.

Improved traceability:
Companys with complex supply chain on commodities can use blockchain to trace every component of their supply chain. Recorded data in the blockchain can provide real-time data for auditing and origin. It also avoids fraud, thus.

Increased efficiency and speed:
Traditional processes can be very time consuming. Blockchain technology streamlines and automates these processes, so that transactions can be carried out faster and more effectively.
You donā€™t have to manage numerous ledgers and you end up with less clutter when record-keeping is carried out using a single digital ledger that is shared by network participants.

Reduced cost:
Since every network participant have a permissioned access to the immutable decentralized database, not too much documentation has to be checked in order to complete a transaction. You also donā€™t need intermediaries to have guarantuees, as you just have to trust the network.

:chains:

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#2480

Why these are the benefits of using a blockchain

Transparency: This is a benefit because with blockchain now all the information is recorded and can be viewed whenever needed. If one company needs to know about another companies product, the blockchain can inform what that product is because it recorded all of the information.

Security: Blockchain eliminates a lot of trust. Instead of verifying data through middlemen or assuming that what they are promoting is true, instead now we can see the data for ourselves. It is also very difficult to duplicate or manipulate data through a blockchain, versus a central entity it is very easy to do so.

Improved traceability: Now that all data can be recorded on the blockchain and we know the data to be true, now it becomes much easier to trace versus a paper trail or a central entity. The blockchain is also available 24/7, 365 days a year.

Increased efficiency and speed: It becomes much easier to transact now because the middlemen can make transacting a lot slower. We will not need a middlemans time anymore to continue a transaction, now we can use the data provided on the blockchain making it much faster.

Reduced cost: A lot of middlemen will not necessary to transact anymore. Since we no longer have to trust people or need middlemen to verify things, a lot of money can be saved.

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#2481

Transparency:

All participants of the blockchain have a copy of it, sharing the same documentation and can view every transaction in real time. Since every transaction needs consensus from participants to be added to the blockchain, every transaction is legit and transparent. This cancels the need for third parties since there are no information silos but rather a clear picture of every step of a supply chain or transaction and therefore improving transparency.

Security:

Security is provided by the following:
1:due to consensus the network eliminates the possibility of fraudulent transactions. Transactions are not added if consensus doesnā€™t happen. Only legit transactions are added to the blockchain which makes it practical impossible to cheat.
2:due to the fact that information isnā€™t centralized but stored on many computers it is very hard to compromise data for hackers.
3:every concenced transaction is encrypted and added to the blockchain.in Oder to remove or change an existing data, you would have to alter every previously transaction of the blockchain which is practical impossible.

Improved traceability:

Blockchains provide digital provenance. This means that every transaction can be routed back to its origins, including documentation for every single transaction up until the present one. The documentation also displays any adding or withdrawals during the process of the supply chain.

Increased efficiency and speed:

Because of the functionality of the blockchain technology, many traditional ā€œintermediate stationsā€ are not necessary. There is no need for audition and controlling in between single transactions within the supply chain. Since no departments of one company are needed for the time-consuming process of interacting with departments of other companies, a lot of time is saved.

Reduced cost:

This goes pretty much hand in hand with the topic of increased efficiency. By cutting out the need for traditional departments from companies like auditing, you need less staff. If there are financial transactions, middlemen like a bank can be cut out so almost no fees have to be paid. I once sent 200 euro from my bank in Germany to a friend living in Sri Lanka:it not only took 10 days, but I also ended up paying 238 euros in total. The same transaction with BTC took 40 minutes and costed a few cents.

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#2482

  • Transparency:
    blockchain is a type of a distributed ledger and all network participants share the same copy of this ledger; update of the ledger is possible only through consensus (all participants must agree); it is basically impossible to change a transaction in the ledger

  • Security:
    transactions are verified before recording them; after a transaction is approved, it is encrypted and linked to the previous transaction; information is stored across a network of computers, not on a single one - more difficult for hackers to get the data

  • Improved traceability:
    all transactions recorded on blockchain can be traced (audit trail); historical transaction data can help to verify the origin; traceability is preventing frauds and wrong information; many benefits for supply chain management

  • Increased efficiency and speed:
    processes on blockchain are completed faster and more efficient (no paper-heavy processes, constant verification); there is only one ledger shared among all participants and all have access to the same information

  • Reduced cost:
    no need for expensive third parties or middlemen to maintain the system; blockchain makes guarantees (mathematical verification)

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#2483

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

Transparency: Everyone has access to the same information with the blockchain serving as a public ledger. Any changes to that information must be agreed upon on the network. Users can have confidence that the information is true when run on the blockchain

Security: Transactions canā€™t be removed on the blockchain and can only be added to the blockchain when there is consensus on a decentralized network. There is no single point of failure in the network by being decentralized and nodes on the network have an incentive to ensure the data is true.

Improved traceability: Information is on a public ledger that is accessible for everyone to view, and that information cannot be removed and only updated through consensus

Increased efficiency and speed: Information is provided on a single public ledger that is distributed on a decentralized network which can be verified by the nodes on the network, without manual verification allowing for transactions to be processed more quickly

Reduced cost: With information verified on a blockchain, it would remove the need for a time-consuming and costly manual auditing effort

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#2484

Transparency:
Itā€™s transparent because itā€™s public. Anyone can see audit the public ledgers.

Security:
Itā€™s secured because itā€™s decentralized. There is no single point of failure.

Improved traceability:
By being public you can easily trace and audit the history of any good recorded on the blockchain. It is especially useful in complex supply networks.

Increased efficiency and speed:
By taking humans out of the equation you can optimize the entire process thus increasing speed and efficiency.

Reduced cost:
You reduce costs by taking humans out of the equation. No need to pay for middlemen.

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#2485

Transactions on the blockchain are visible to everyone.

With blockchain you have a system that both requires a consensus of approval, and also creates a mathematical link to the previous block which ensures that tampering with the system is nearly impossible.

All information is gathered in one ledger, making traceability much easier than traditional ways.

Since the entire process is automated it is possible to create systems that are very fast. With one ledger you reduce the time it takes to verify a transaction.

With less middlemen, increased efficiency and speed it is easy to see how blockchain can reduce costs.

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#2486

  1. The shared ledger acts as a unified cohesive object. Anyone that has access to the shared ledger can see the history of transactions that passed consensus. Since the transactions cannot be fudged or altered it is proven as accurate. You have an accurate history of everything I have done. Thatā€™s transparency.

  2. The fact of consensus helps to insure the accuracy and legitimacy of transactions. Having distributed copies of the ledger that act as a singular entity insure that if one node fails, no data is lost. The life of the ledger will continue uninterrupted.

  3. Since transactions cannot be altered or erased once they are written to a block, that history can always be available for view. The transaction history can be retrieved in seconds and displayed in a user friendly format.

  4. When assets or services are transferred from one entity to another, generally there is paperwork, multiple players and multiple steps involved. Paperwork gets lost or filed away and it can be time consuming to recreate or retrieve paperwork. Sometimes people miss a step of the process and things need to be restarted or reset. This causes delays and rework which is time & Money. Blockchain can eliminate these things allowing the process to be faster with less mistakes and use less humane time.

  5. Being able to reduce some of the middle players and reduce paperwork(and paperwork mistakes) will save time and man hours in the process.

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#2487

Transparency: Transactions are available to all to see on a distributed ledger. This makes transactions open and available for all to see

Security: The network is secured by multiple computer who are all incentivised to keep the network going. Cryptography is used to encode transactions providing security.

Improved traceability: Blockchain provides a history of transactions which can be easily traced in the ledger, these transactions cannot be altered and is the source of truth

Increased efficiency and speed: Blockchain reduces the needs to outdated paper and manual processes by using a fast, electronic and cryptographic means of transfer of data and transactions

Reduced cost: Blockchain does not rely on expensive infrastructure to run. The network is maintained by a collective of computers incentivised to keep the network running. This reduces costs as individuals or companys do not have to pay alot o money to participate in the network.

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#2488

Transparency is guaranteed through the open source ledger that everyone can view. Also there is the fact that the coding of a decentralised ledger is also open source and there for anyone to look at to make sure that the code works and that there are no things like trap doors hiding in the background.
Security is obviously a massive benefit secured by consensus as anything from finances to highly sensitive data can be protected by blockchain technology.
You now have improved traceability as the blocks are immutable and therefore you have a ledger that is accurate that links all the way back to the very first transaction.
With everyone able to hold and update the same chain of information that cannot be doctored, it means that you do not need to have multiple ways for storing information that then need to be reconciled. This increased efficiency will save untold amounts of time, money and arguments in countless areas of business and finance and anywhere else you can employ such technology.

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