Transparency: The public ledger is copied and held at every node in the network. All transactions are known and verified.
Security: Since it is transparent (see above) it is transactions cannot be altered after verified and approved. Counterfeiting would be difficult.
Improved traceability: Every component utilized in a supply chain can be verified from its source.
Increased efficiency and speed: Automation in the verification and approval process. No intermediaries or third parties involved.
Reduced cost: Again, no intermediaries or third parties involved. Processing, verification and third party auditing by them is not necessary. Efficiency equals reduced costs.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: A transparent ledger of transactions is a benefit as it removes the need to trust what someone says. Once consensus is reached the blockchain is finalized for that transaction and the need for trust is removed.
Security: Security comes from POW and the need for consensus on a transaction. This uses electricity and CPU power to enforce the correct ledger and prevent bad actors from altering the ledger. The ledger, being stored on a decentralized network, allows for further security as no one party has control or ownership of the record of transactions.
Improved traceability: Improved traceability plays into the idea of provenance, where you are able to track the origin of a product from its constituents to manufacture. This is also a trust less system as consensus would need to be reached by the sending and receiving parties. Traceability also reduces cost of manufacture as it removes the need for third party mediaries and the cost that comes with these services.
Increased efficiency and speed: Having a 24/7 network of accounting is invaluable to and world of ever increasing complexity and interconnectedness. This is the basis of a new monetary system the likes of which has never been seen in human history and would transcend the need for banks as we know them today. Every leap in speed and efficiency we have made in computing, travel, data speeds etc. has opened a new era of prosperity and has lifted thousands per year out of poverty.
Reduced cost: Reducing the cost of transacting, account keeping and other applications that lend themselves to the use of blockchain is moving towards greater efficiency. As costs reduce the availability of services increases proportionally and allows more people to gain access to goods and services.
All participants in the network can see the entire ledger, so all transactions are public. This allows for events to be monitored in a public way, so that is great for having IFTTT (If This Then That) logic in a way that is reliable and trustless. Blocks are always created through consensus so changing anything in past blocks is near impossible.
Instead of having information about the supply chain of given product in isolated silos, if the process stores the information on a public blockchain, those registries can be grouped and followed. This enhances traceability and it also provides an added trust to the manufacturing process, by certifying each step along the way.
By removing intermediaries in the process of sharing information, systems can reduce the clutter of duplicated information. Being that all participants have access to the same ledger, the information is one, and one only, so there is no data housekeeping on each participant side. This increases the time to settle transactions and agree upon transfers
The reduction of intermediaries and data housekeeping reduces costs greatly. Not only transactions are done with less middlemen, but also with less paperwork by trusting in the information on the blockchain
Transparency: Blockchain creates a distributed ledger that so that all participants share the same documentation which can only be updated through consensus of the network making the data more accurate, consistent, and transparent.
Security: It is secure, because there must be consensus for it to be altered, after the transaction is approved it is encrypted and linked to the previous transaction. This ledger is shared across many computers in the network and not held on 1 server which makes it almost impossible to hack and alter without attacking the entire network to achieve consensus. Protects sensitive data which is important to finance, governments and healthcare as a few examples.
Improved traceability: Provides end to end auditing to trace items to their origin throughout a complex supply chain. This transaction data allows the consumer to verify the authenticity of the asset and prevent fraud.
Increased efficiency and speed: Streamlining and automating these transaction processes reduces human error and allows for trust as the transactions are held on a public ledger which does not need to be compared or audited by a third party. This allows for transactions to settle and clear much quicker and efficiently as all parties will receive the same data.
Reduced cost: Allows for the removal of third parties and middlemen as you donât need to trust the other party but rather the data on the chain as it is a single immutable ledger. The reduction of costs is a priority for businesses and will increase demand for blockchain solutions.
transactions, inputs, outputs, protocols, smart contract and/or any other parameters put into a layer 1 block cannot be faked or falsified or tampered with once the next block is mined; meaning when all nodes on the network have to come to a consensus agreement in a specific moment, on the mainnet.
Security:
decentralization, hash function key generation, block linking, and cryptographic encryption, and when constructed properly and work together, offer an immense amount of security. so much so that it would simply be more profitable to join the consensus all good actors on the network.
Improved traceability:
items and/or data can be always traced to its origin.
Increased efficiency and speed:
human error, human bias, and human and third-party mediation can be slow and expensive. smart-contracts and protocols on a decentralized blockchain can drastically reduce (and often eliminate) these hurdles.
Reduced cost:
immutable data and code on a blockchain can thousands of times more cost-effective than a middleman, mediator, or third party.
Public distributed ledger, consensus, and anyone can inspect/check all the transactions occured.
Transactions need consensus to occur so after it only happens after verified. Since the database is public and distributed when a block is created it cant be erased.
Since an item can be traceable from the beginning to its end on the ledger it makes it easier to audit trails.
No mediation or third parties needed which make transactions faster and efficient and since the ledger is hold by participants as one digital ledger theres no need to reconcile ledgers. So everyone have access to same information making it easier to access/trust.
No third parties or middlemen which will make the cost reduced and since the public ledger is shared to all participants theres no need to keep validating documentation.
Community based authentication through the blockchain means that all transactions are completed / verified through consensus
Security:
Transactions are encrypted and stored across the ledger only after approval of all participants across the network
Improved traceability:
All exchange of goods are recorded on the blockchain leaving an audit trail of historical transaction data
Increased efficiency and speed:
Blockchain removes human error and the need for 3rd party mediation due to community based authentication and automation of the whole traditional process
Reduced cost:
Blockchain is trustless removing the need for third parties
Explain with your own words, why these are the benefits of using a blockchain.
Transparency of the blockchain provides a global single source of truth to all network users which is (almost) guaranteed to be complete and correct. Security is enhanced by consensus and finality (immutability) which eliminates the threat of non-repudation by bad actors and removes the need for trust. Blockchain has absolute traceability making it fully auditable at zero additional cost. Speed and efficiency are improved by automating systems, reducing the need for human interaction and tendency to error.
1.) All data what is on the blockchain is possible to see from everyone. Code and data is open for everyone.
2.) Consensus mechanism makes it impossible to cheat data because there has to be allways an collective agreement!
3.) Every stage in production processes can be put on chain and who want to make business has to play fair. if not everyone is seeing this!
4.) Theres no one need to validate or overwatch transactions validation! all is coded with math and protocolled with time, information and parties who are involved. and information are checked in miliseconds.
5.) Today when i want to get a new passport I have to go to the government. It costs me weeks and many euro to get my passport. On Chain data from my person is secure stored and validate in seconds!
Anyone can verify.
No single point of failure.
Transactions are verifiable from first to last.
Peer to peer with no middle man ensure fast and efficient transactions.
No legacy procedures.
Transparency: The more people and governments use blockchain. The more transactions can be traced and therefore less fraud or opportunistic behaviour can occur as all transactions can be checked by everyone. Also you cannot inflate the supply of BTC for example.
Security: No one can steal your funds if they are properly stored on a cold wallet. No entity can succesfully attack a blockchain as it is a decentralized network.
Improved tracability: Businesses with a complex supply chain often have a hard time tracing their products to the source. This problem is solved by blockchain as only transactions which have been approved can be added to the blockchain or database and they cannot be altered afterwards.
Increased efficiency and speed: As the blockchain is live and as the blocks keep being added to the chain, a better way has been estalbished than the old school way of book keeping, which involves paper-heavy processes and human error or missuse, which is a less efficient and speedy process than using the blockchain.
Reduced cost: Because the blockchain in some instances does the work of third parties or accountants, it makes them or a part of them useless which is interesting for businesses that seek to reduce the cost of their operations.
**Transparency: **
Trusting in the technology of the âTrust-lessâ system where all transactions are visible to all participants and where any changes to the transaction record / ledger must be agreed upon first via consensus. Security:
Information is stored across a network of computers instead of a central server.
All transactions must be agreed upon before being recorded, making it virtually impossible for hackers to compromise transaction information. Improved traceability
Blockchain allows you to trace an object from its origin with all stops along the way, helping in the verification of authenticity and making it more difficult for fraud. Increased efficiency and speed
Blockchain technology cuts out the âmiddle manâ and multiple ledgers. There is no need for third-party mediation and removes the risk of human error. reduced cost
No need for costly third parties or âmiddlemenâ .
Transparency: information is public and can be verified by anybody.
Security: the blockchain uses hashing for building the blocks and cryptography for signing transactions, making it easy to verify mathematically the information contained in it, but impossible to alter or manipualte it. Each transaction is hashed and chained to the next one, so the more blocks in the chain, the more difficult to break it.
The historical of transactions can be verified recursively until the first block, making it easy to know the history of the whole chain.
Efficiency and speed: transaction and accounting is done at the same time, making it much more efficient than current payment systems, in which transactions are separated from accounting. This also allows to automatize tasks such as audit.
Automation of tasks makes it cheaper to run different tasks associated with the blockchain. Trust on third parties is eliminated as information can be verified with mathematics.
Transparency: It is a public database that is open for anyone.
Security: It is verified through the math opposed to trusting others or a single entity. Its through consensus.
Improved traceability: By being public and unable to be undone, you are able to verify every step of the process opposed to relying on one to state the process accurately.
Increased efficiency and speed: The transactions take minutes opposed to days due to being verified through the math and not relying on another entity. It removes the middle man.
Reduced cost: By removing the middle man there are less steps to the transaction being processed; thus there are less places/people that need to be incentivized through pay.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: The blockchain is a distributed ledger that all network servers share. Network servers share the same distributed ledger.
Security: A consensus of the network must be agreed upon before a transaction is accepted. A distributed ledger is stored across a network of computers. Not just one single computer.
Improved traceability: The ledger contains a record of all transactions from the beginning to the end.
Increased efficiency and speed: The ledger contains a record of all transactions. There is no physical paper trail to chase down. Everyone has access to the same ledger and information. Automation and auditing is easier.
Reduced cost: Less auditors or middlemen will be needed to verify documentation due to the trust-less architecture of blockchain
Security: The blockchain ledger requires a majority of the participants to agree before a transaction is allowed and confirmed. Using advanced cryptography and an Elliptic Curve Digital Signature Algorithm the data on a blockchain can also be protected from hacking.
Improved traceability: Since the blockchain keeps a record of all transactions and movement of assets on its protocol, components in the blockchain can be tracked across time and identified in their last position in the system.
Increased efficiency and speed: A blockchain also avoids the delays of multiple parties having to view and approve decisions across a hierarchy. Each participant can now submit a transaction for approval and through consensus a decision to include the transaction can be made quickly. However, it is worth noting that the confirmation of bitcoins typically takes much longer than a purchase via a centrally authorized card card.
Reduced cost: Blockchain removes the requirement for a typical third-party player. In other words, fees are usually much lower given the fact that an escrow company is no longer necessary to serve as a âmiddle man.â There is also greater confidence that a transaction that has been confirmed is legitimate. This reduces the needs and costs of legal fees.
You can cut out a lot of 3rd party auditors etc, you know the transaction was verified via consensus, you can look at the history of any item/transaction, and everyone can look in the same place for the same information.
The blockchain runs on a decentraliced network. It canât be hacked or shut down.
Improved traceability:
Until now most supply chains relied on trust. With blockchain things get traceable. Therefore you can check the origin of products and no longer need to rely on trust.
Increased efficiency and speed:
No more middle man. P2P very fast.
Reduced cost:
The data on the blockchain is trusted. So there is no need for a 3rd party to verify / audit. Which makes it way more cost effective.
Transparency is found using this open source technology, we have accurate records of transactions on the entire blockchain network.
We have more secure record keeping systems that are once agreed become encrypted, linked to previous transaction and stored across a network of computers. Safe guarding data from being compromised or hacked which prevents fraud and unauthorised activity.
Products traded through a complex supply chain can be tracked to its origin. transactions are recorded on the blockchain which provides an audit trail. This displays a history and its journey that can be verified to its authenticity.
Removing heavy time consuming traditional systems through a streamlined, automated process with blockchain. Transactions can be completed faster and more efficiently by also removing intermediaries. Providing quicker settlement in a better way.
By removing third parties and middlemen to guarantee a service or product, blockchains trustless technology can review documentation to complete a trade in real time which saves time and energy.
