Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2489

Transparency: Blockchain is basically a open distributed ledger where all participants share the same documents in real time. To add a new document/transaction consensus must be reached (decentralized),

Security: Transactions must be agreed upon (consensus) before recorded on the blockchain. By consensus it is decentralized, there is no central authority or server that can be hacked. When recorded (a block is added to the chain) it records the previous block with it, making it nearly impossible to change a block after confirmation of the network, making it immutable.

Improved traceability: Every transaction on the blockchain is traceable back to it’s source and because the chain is immutable no bad actors can change data. Therefore the historical data on the blockchain is ideal for verifying the authenticity of assets and it prevents fraud.

Increased efficiency and speed: Everyone working on the same ledger decreases human error, miscommunication and third party risk. By automating processes on the blockchain transactions are done much quicker more efficiently.

Reduced cost: By trusting the data on the blockchain you can remove middlemen and 3rd party risk, thus making it much more cost-effective.

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#2490

Transparency: This is because we all have a copy of the ledger and access to your data, backed by the fact that the information that exists cannot be altered, and also we can all access it, there are no restrictions or a third party that could manipulate or restrict access to it

Security: the security it delivers comes hand in hand with transparency, since it is almost impossible to hack it and all your information is public

Improved traceability: It improves it because this is something where only information can be added, and since it is unable to modify it and be available to everyone, you can be certain of what they are saying or delivering by verifying it yourself

Increase: This is because the human factor is removed from the equation, which is the only cause for inefficiency and speed.

Reduced cost: because by making the process and confirmation more expeditious, fewer resources are needed, and that translates to less costs involved

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#2491

Transparency:
All network members have visibility to all blockchain data and need consensus for every new data that needs to be added.

Security:
1- For every data that needs to be added in the blockchain, it needs an agreement for all members.
2- Data is always encrypted when added to the network.
3- Decentralisation data is stored across all network members , so its difficult for an attacker to compromise any data.

Improved traceability:
Every new asset or item is added on the blockchain that cannot be removed. This can be audited at any time and its possible to track its origin since the beginning since every transaction before and after are recorded.

Increased efficiency and speed:
Since all added transactions are shared between all participants:

  • it doesn’t have to sync between different ledgers , since its a single decentralized one
  • its automatic and every entity could rectify it so doesn’t lead to any human error
  • No third party is needed.

Reduced cost:
Since trust is not needed , so removed on blockchain , third parties are not required. This ends on huge cost savings.

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#2492

Transparency: Blockchain technology provides the benefit of more transparency by distributing all parts of the transaction history to each piece of the entire network, making it visible to all parties who have access and making it less vulnerable to alteration via network consensus instead of relying on third party validation.

Security: Transactions must be globally agreed upon by the network to get approved. It gets linked to all prior transactions and this makes it harder to be manipulated or hacked, helping to prevent fraud and non reliance on trust between parties.

Improved traceability: By keeping a record of a transaction along with all other previous transactions connected to it you create an immutable trail, a record of any alteration or change, which is particularly useful for things like documenting supply chain or tracing the origin of a product back to its source.

Increased efficiency and speed:Simplifying and streamlining the process of data transfer improves efficiency and speed by taking out the middle man and the need to check and double check multiple documents since each part of the network already has a complete copy of the entire ledger, validating much faster than having to transfer documents back and forth between organizations.

Reduced cost: By improving transparency and trust in the network you can essentially free yourself from reliance on 3rd parties and middle men to verify authenticity/audit transactions/speed up validation. Everyone can see and review the same documentation which leads to fewer costs by having to utilize less man power.

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#2493

Transparency; As blockchain is a public ledger, every transaction is verifiable, meaning anyone at any time can verify any transaction. This is complete transparency and great for any business with large supply chains, who wants to ensure quality contrrol throughout chains.

Security; As blockchain technology is decentralised and relys on maths principles, protocols and validation from contributors to the ledger, it is infinitely more secure than traditional centralised data bases.

Improve traceability; Every transaction is recorded immutably into the public ledger, so any and every transaction has 100 percent traceability.

Increased efficiency and speed; It increases efficiency by cutting out the intermediary parties, this is done as the ledger is public and can be verified by anyone.

Reduced cost; Costs are reduced, again, by cutting out the intermediary parties.

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#2494

1.Transparency: Everything that goes through the blockchain is available for everyone so it increases also trust between parties.
2. Security: It is highly secure because of consensus between servers and not prone to human error. And the number of miners increases security.
3. Improved traceability: By being available and transparent to all parties you can trace it easier, and blockchain stores every single transaction so you can track everything to the source.
4. Increased efficiency and speed: It increased speed by not needing a third party or not needing paperwork to get the information that you need.
5. Reduced cost: Time is money so by increasing speed the cost reduced and not needing to pay a lot of third parties again the cost is reduced.

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#2495

  1. Transparency: In distributed ledger transactions history is available to everyone. In real time.

  2. Security: Distributed ledger transactions is confirmed in a decentralized way and data maintained by a global network of validators without single point of failure 24/7.

  3. Improved traceability: Audit trail for the entire transaction history on distributed ledger.

  4. Increased efficiency and speed: single ledger where transactions can be confirmed without numerous intermediatires.

  5. Reduced cost: removal of thirt parties and middlemen code and math handles everything more efficient than human factors.

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#2496

Transparency:
It helps to trust the network and a faster information flow (cost reduction).

Security:
Once enough people are using your blockchain, the likelihood of fraudulent transactions drops to almost zero. Creating a fake entry in the database is likely so difficult that it is not worth the cost. Trust in 3rd parties is increasing.

Improved traceability:
The blockchain tracks every transaction that has ever been made. You can view a comprehensive record of the database status at any point in time (24/7/365)

Increased efficiency and speed:
I do not agree on this point! Decentralized blockchains are a lot slower (currently) than a centralized database and also more expensive to maintain - we’re talking 1000 times as much. So it comes to the question, by when do we talk about decentralization!?

Reduced cost:
You don’t need as many third parties or intermediaries anymore, which can have positive effects on costs. But decentralized blockchains are a lot slower (currently) than a centralized database and also more expensive to maintain.

In general, I am missing here the definition of a Blockchain. Do we talk here about a decentralized or centralized Blockchain (database)? Do we already talk about a decentralized Blockchain, if 2 parties are involved or what defines a decentralized blockchain (how many participant)? In my view, there is only one Blockchain which gets close to decentralization and this is Bitcoin. The rest is more less a centralized database or a hybrid Blockchain.

I would like to have a some other views/opinions on this :slight_smile:

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#2497
  1. Transparency: As a public ledger, anyone can verify each transaction.
  2. Security: Decentralized and high availability.
  3. Improved traceability: Each transaction can be tracked from the original source.
  4. Increased efficiency and speed: No middleman is involved.
  5. Reduced cost: Since no middleman involved, less party is needed, thus less cost.
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#2498

Transparency: Blockchain as a distributed ledger is highly transparent and accurate because it allows all users to share the same copy of information. The information can only be updated through consensus of the entire network.

Security: Transaction data on a blockchain is highly secure because once a transaction is confirmed, it is encrypted and linked to its previous transaction on the blockchain. The data is also not stored in one central location. It is stored across the whole network which makes it very hard to compromise.

Improved Traceability: Traceability of products in a supply chain up to the source of origin is greatly enhanced when all of the transactional information is recorded on blockchain. The historical transaction data that is recorded throughout the supply chain is needed to verify authenticity of products and to prevent fraud

Increased efficiency and speed: Conducting transactions on blockchain helps streamline and automate the paper-heavy processes involved with doing business. Since all record keeping is done on the distributed ledger, everyone will have the same access to information and this will enable a trustless environment in which transactions can occur and be recorded seamlessly.

Reduced cost: Overall, when blockchain achieves the automation and reduction of middlemen in a trustless environment, it will then become cheaper to conduct transactions and the cost of doing business will be reduced.

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#2499

I depends on how you view it. If you compare it to international transactions it is much cheaper and in case of settlement a lot faster. A Bitcoin transaction is considered settled in about an hour, VISA transaction takes up to 90 days to settle, other systems are even slower.
Settlement is considered when a transaction is final and can’t be refunded not when it appears in your wallet/account.

We are talking about Bitcoin :wink: but I agree with you a lot of blockchains are very centralized these days and don’t have a lot of users, not to mention private blockchains.
As for how many participants it is considered for a network to be decentralized, a P2P network requires at least 2 participants, but the more the merrier :slight_smile:

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#2500

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

Transparency: with blockchain you have permissioned decentralized chain of custody from beginning to end. you have true provenance being able to track where transactions/items are originated and how it was handled from beginning to end. these transactions are stored on a public ledger verified multiple times by multiple unrelated parties. anyone with access (your address) can view all the transactions you have made or the chain of custody of that item and make an assessment on the data

Security: with blockchains decentralized nature it inherently increases security by allowing unrelated parties to verify and confirm ever transaction. if its not unanimous the transaction will not process.

Improved traceability: blockchain is completely traceable in nature due to the fact that it must be verified and that it sits on a public ledger. This tracking information cannot be changed once written and also cannot be reversed.

Increased efficiency and speed: the blockchain network is a 24 hour 7 day a week network with inherently gives it increased speed over the current system and efficiency by allowing for audits and confirmation at the same time.

Reduced cost: due to the fact that the current system is physical in nature there are many cost associated with printing, storing and securing these financial assets. blockchain doesn’t have any of these downfalls. Its completely portable and global instantly which in turn reduced cost to practically nothing other than keeping the network up and running by compensating miners and stopping bad actors.

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#2501

Transparency: By using a blockchain, everyone shares the same documentation and the documentation must be updated through consensus so everyone gets to see the documentation and all must agree, transparency on the blockchain makes data more consistent and accurate too.

Security: The information stored on the blockchain is stored across a network of computers instead of one centralized server so there is no central point of failure to have information hacked. Also transactions are encrypted after the network comes to a consensus to agree that the transaction makes sense and connects to prevent fraud.

Improved traceability: This allows companies to be more transparent and efficient as they can prove and show publicly where their products are being received and delivered and this also creates a record for their book keeping that can never be changed and will always be there for them to use as it cant be hacked either. This helps prevent illegal activity and authenticity of assets to be certain where it came from.

Increased efficiency and speed: Blockchain is more efficient and faster because it removes the use case of intermediaries. Everyone has access to the same information so you do not need to trust anyone, when you can verify. Blockchain has one of the least amount of human errors and it easily keeps a book record keeping that doesn’t require a lot of paper.

Reduced cost: Blockchain removes needs for intermediaries which means you will not have to pay for any and you will only have to trust the data on the blockchain that can be verified. You will not have to review documentation as the blockchain network verifies it accordingly as it will not be added to the blockchain if it is not correct.

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#2502

Transparency: The ledger is public. Everyone can see every transaction
Security: The transactions are immutable once confirmed. Since their must be consensus in the network and everyone needs the network to function for their own benefit security from hacking. power outage in an entire continent is not even a threat as nodes are global and will continue functioning elsewhere
3) All can transactions are linked to another and seen by all. The links in the chain are thus developed
4) No need for middlemen or need for further verification (by compliance or 3rd parties) on transactions
5) Systems that we currently have to ensure security, compliance, verification are costly to businesses, governments, individuals and are not needed with blockchain

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#2503
  1. Transparency: - transaction histories are obtained via the sharing of documents amongst all network participants, as opposed to individual copies, of which changes on the shared documents can only be made through consensus. This makes data on a blockchain more accurate, consistent and transparent than conventional networks.
  2. Security: - consensus and encryption applications are used to link a given transaction to the previous transaction. This along with distributed storage, instead of a single server, increases security as all transactions are linked and shared. A change in one transaction will evidently cause a change in all transactions, after-all transactions are linked. These blockchain enhanced security benefits, which helps to prevent fraud and unauthorized acts, makes blockchain applicable in industries such as financial services, government, healthcare and so on.
  3. Improved traceability: - availability of audit trail for given goods in transit show where assets came from and every stop each given good makes on its respective journey. This helps to verify the authenticity of assets and prevent fraud
  4. Increased efficiency and speed: since distributed storage is applied, you don’t have to reconcile multiple ledger. So you end up with less cluster and paper-heavy work. And it becomes easier to trust each other without the need for numerous intermediaries. Thus clearing and settlement can occur much quicker.
  5. Reduced cost: - less middle men, because you just have to trust the data on the blockchain. Manual audits are also unnecessary, giving no additional cost.
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#2504

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

  1. Transparency: every transaction is traceable in public ledger
  2. Security: software transactions go through or they fail based on contract
  3. Improved traceability: Public blockchain so can see every step in the process.
  4. Increased efficiency and speed: automated transactions through contracts.
  5. Reduced cost: efficiency, automation and public audits reduce cost.
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#2505
  1. As blockchains are distributed ledgers the inclusion of data for any new transactions can only be added once consensus has been agreed upon by all of the validators of the network. Once consensus has been confirmed the information is then added to the blockchain and is therefor verified as being accurate.
  2. Copies of the blockchain leger are shared across all of the networks computers making it much more difficult to compromise the data as opposed to a single central location
  3. All of the data regarding a single item can now be tracked on the blockchain detailing every stage of it’s journey. This ensures that there is the ability to create an audit trail.
  4. Traditional manual processes relies on the collaboration of data which can be time consuming and subject to human error. Blockchain allows for this information to be streamlined onto a single ledger which creates efficiency and verification that the information is accurate.
    5.By using blockchain technology businesses can reduce costs as they no longer need middlemen or 3rd parties to confirm the accuracy of the information. The data stored on the blockchain is available to all, reducing the need to gather data from many sources and multiple locations allowing everyone to make quicker decisions.
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#2506

Transparency is beneficial because it helps eliminate the need for trust. Blockchain’s security is beneficial the decentralized nature makes it extremely difficult to attack. Improved traceability ensures an honest supply chain or transaction record. The elimination of third parties for arbitration increases speed and efficiency, this also reduces cost.

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#2507

  1. Transparency

    As blockchain is a distrubuted ledger anyone who has access to it can see all the transactions.

  2. Security

    Consensus of multiple nodes needed to confirm and add transactions or certain information to the blockchain.

  3. Improved traceability

    As we have that high transparency we also have improved traceability as for example we can see every single step in a supply-chain.

  4. Increased efficiency and speed

    Eliminating middlemen and reducing paperwork makes blockchain based transactions more efficient and faster than if for example a trusted middleman or lawyers were needed to check every detail.

  5. Reduced costs

    With blockchain there is no need for many costly middlemen and other third parties to make guarantees. You only have to trust in the data on the blockchain.

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#2508
  1. Transparency because the blockchain is an open database where all the transactions can be traced and checked.
  2. Security because all the transactions are double checked and validated by all the computers in the blockchain which all have to approve the transactions in a consensus manner.
  3. Improved traceability is assured by the fact that all the transactions that are validated ca no longer be removed from the blockchain which is an open database which can trace the full historic of all the transactions
  4. Increased efficiency and speed is guaranteed by the fact that everyone who uses the blockchain relies on a common reliable maths protocol which is not in the hands of an organisation/individual who could be bias and corrupted. Computers in the blockchain have incentive to keep the service work permanently without the need of a middle man so it is more efficient and faster.
  5. The blockchain allow to take ownership of your own money without the need of a bank so the transactions go from the sender to the receiver without going through an intermediate. This reduces the cost.
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