Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2709

Transparency: The risk of corruption is reduced and the data is more accurate.

Security: The blockchain data is encrypted and the transactions must be agreed before they are recorded.

Improved traceability: Blockchain enables high secure traceability because all transaction and records are verified.

Increased efficiency and speed: Due to the distributed ledger, all participants in a transaction receive the same information at the same time.

Reduced cost: Third party companies won’t be needed anymore because the blockchain data is verified and available at any time.

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#2710

Transparency:
Blockchain is a public ledger and every node has access to all the transactions. To add a transaction in the blockchain there must be a consensus to aprove it.

Security:
The more nodes in the network, the more secured it is, making the database available 24/7/365.
Every node has the data, and every new transaction hash would depend on the previous hash, plus it must be confirmed by other nodes, so it makes it practically impossible to hack it.

Improved traceability:
Blockchain let to the participants follow the path of their transactions, so they know where their money comes from.

Increased efficiency and speed:
Without the need of having an entitiy or man in the middle controling over the transactions, everything is resolved quicker. The network has thousands of nodes achieving 24/7 high availability .

Reduced cost:
Cutting out an entitity controlling the transactions, makes it to cost less. We just need a payer, receiver and the miner with the incentive of a small fee.

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#2711

Transparency:

Blockchain is a decentralized global network that maintains an open public ledger wherein all network participants share the same documentation and all participants have permitted access unlike centralized methods. These shared documents on the blockchain network can only be updated through consensus, which means everyone must agree if it is true or false.
To alter any transaction record on the global network of blockchain would cause a clash with the network. Hence the data written on a blockchain is consistent, trust-less, verifiable and transparent as compared to any previously used processes.

Security:

Blockchain is a network of computers that make blockchain possible.
It’s like writing data in real time of all the transactions that happen on a digital stone data base where you can only add data and cannot delete it or duplicate it to make false claims. All the transactions and data that’s in the public ledger could be encrypted and is auditable but still very open. It is Trust less and verifiable. Strangers from any location on the globe can perform business with each other and have the confidence of receiving their payments and not being scammed.

Improved traceability:

Blockchain being a global decentralized network that has an open ledger wherein all the participants have permission to access the network and audit any information of that transaction 24/7/365, certainly is one of a kind.

Increased efficiency and speed:

Blockchain is a decentralized peer to peer transaction with no intermediaries. With block chain we can put the accounting layer together with the transactional layer. This feature helps to speed up the process performing business transactions, payments in a trust-less manner and achieve finality. Although crypto is the biggest part of blockchain, is not only about crypto, we can also go outside of the crypto environment and use it for other commodities to achieve finality.

Reduced cost:

A major portion of the cost is reduced by blockchains main features of being peer to peer, and by being a decentralized global network accessible 24/7/365 with no 3rd party or any intermediaries like lawyers needed to sign contracts. Also by being able to make or receive payments without bank account fees, wire transfers and any overhead transaction fees certainly helps reduce the cost as compared to any other way of finalizing a transaction from start to finish. :pray: :heart: :pray:

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#2712

  1. Transparency: When a transaction is made on a blockchain it is there for all to see. It cannot be altered without all of the network computers colluding.

  2. Security: Blockchain helps to reduce fraud by increasing security. It does this by using consensus through a network. For a transaction to be altered maliciously it would be voted out by the rest of the network.

  3. Improved traceability: All of the transactions that have ever taken place are recorded on the ledger. This makes it easy to trace a specific transaction back to source.

  4. Increased efficiency and speed: Blockchain removes the need for trust in third parties and also between strangers. A transaction can now take place quickly and efficiently through consensus and verification.

  5. Reduced cost: By reducing the need for middle men, blockchain means less parties are involved in a transaction. This can reduce a required workforce.

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#2713

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

Transparency:
All transactions are visible in the public blockchain ledger.
Security:
The blocks cannot be changed once they are added to the chain. It requires high computing power to create a new block and other miners need to validate the block to come to consensus.

Improved traceability:
The ownership of coins can be traced over all the transactions that are stored in the blockchain.

Increased efficiency and speed:
There is no need for a middle man, which makes it more efficient and faster.

Reduced cost:
No need for a bank to act as middle man, reducing the cost of transactions. But: There might be a cost of computing resources (provided by electricity) to enable the prove of work.

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#2714

Reading assignment: Benefits of the Blockchain Technology - Answers

  1. Transparency:
    • Through distribution of the ledger across all participants of the network (not individual copies), which can only be updated once consensus has been met. Would require collusion on a grand scale to go back and alter a single transaction record. Creates a more accurate and consistent process. Ledger can be viewed by all participants.

  2. Security:
    • All transactions must be agreed through consensus before they can be recorded to the ledger. After approval, transaction is encrypted and added to preceding transactions. Record of all transactions are stored across the network instead of a single server, making compromising the information through fraud very difficult.

  3. Improved traceability:
    • Blockchain records an audit trail that leads from the source through to every step along the supply chain. Historical transaction data can be verified to prevent fraud.

  4. Increased efficiency and speed:
    • Through a process of streamlining and automation, transactions on the blockchain become more efficient thus completing processes faster. A single digital ledger keeps record across all participants on the network, eliminating the need to reconcile across multiple ledgers. This also allows for trustless environment, without need for third party intermediaries, which in turn speeds up clearing and settlement.

  5. Reduced cost:
    • Eliminates need for many third party oversights or middlemen, as trustless environment has been established. Cuts time on reviewing documents, as there is only a single, immutable version, which all parties have access to.

blockchain.Ronin

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#2715

Transparency allows for fair business. It means everybody can freely be transparent since information is shared across the network. A business might not need to worry that much about shady behavior from the system since everything is out on the public network. It is quite amazing and it allows the company to focus on evolving in a better way. It reduces pressure and stress in a way, quite cool!

It all ties to the fact that the blockchain is publicly shared by a network of nodes. This way it’s hard for a malevolent part to hack the blockchain because it would need to hack the whole system in order for security to be at risk. Since the system is growing basically daily, that is quite impossible and assures a high degree of secrutiy.

Since information on the network is transparent, freely available for everyone and everything is logged into the system, it is very easy to track transactions which allows a business for example to track every step of it’s operations. It reduces paperwork(saves forests too) and manpower (boring office jobs) and guarantees authenticity of information. Less work&worry more value generation!

As i’ve said before, the fact that everything is digitalized on the blockchain means everything is faster than pen&paper. Everything is logged automatically and there’s no need for information hoarding. It is already automatically stored in the blockchain.

Say goodbye to the middleman! Blockchain IS the middleman which works for free for everybody. What a nice guy! You don’t need those pesky auditors, accountants and cheeky middlemen anymore. Blockchain already those all these things for you, and not just for you but for the whole world. At the same time! IN REAL TIME! Waow!

Looks like you need to find new jobs pals :wink: !

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#2716

As we can notice the benefits of blockchain technology are clearly visible once you understand the process he is performing. It is transparent because everyone can see this transaction and know all the paths. If anyone would try to change the record , the result would be fatal for all network system and it would change all data in subsequent method.
It is secure because it is a public ledger, everyone has a copy of the data ,all transactions must be approved, they are sealed and connected to next chain, so there is no opportunity to cheat or lie or in case of papers to make an error.
It is difficult to trace anything in a complex process, blockchain secure that this process will be recorded on every stop of some chain, no matter we are talking about production or transaction.
For sure it is more efficient because it has not intermediarios which are slowing the process and makes the same very insecure prone to fraud and error. At the same time it is faster.

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#2717

about reduced cost it is clear that if you do not have to pay to third parties you are saving your money, this all goes to your pocket

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#2718

Transparency: Since every transactoin ever made can be traced back to the gensis block there is no way information gets lost or can be hidden on the blockchain. It can only be disguised in useless information. The whole blockchain is accessible and visible on the public ledger, for everyone.

Security: Information on the blockchain is safe because it is linked to the previews and the subsequent block in the blockchain. In order to manipulate the blockchain a hacker would need to the computational power which was used to generate all the previous blocks on the network. Hence it is basically impossible.

Traceability: Since every transaction can be traced almost in realtime auditing can be made in realtime.

Increased efficiency & speed. Since the network is running 24/7 on a decentralized basis and without intermediaries, transactions can be made everywhere in the blink of an eye around the world.

Reduced cost:
No need for third party intermediaries except for the miners. :slight_smile:

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#2719

Transparency: blockchain is a distriuted ledger, anyone with a copy of the ledger can verify the transactions/data it contains
Security: all entries on the blockchain are agreed upon (consensus) prior to it being added to the blockchain. furthermore, the transaction/entry is encrypted and and linked to the transaction immediately prior to it. thus creating a chain which cannot be modified.
Improved traceability: all transaction are recorded on the blockchain and available for authentication at any point
Increased efficiency and speed: elimination of much of the paperwork required for traditional systems. All the data being available through the chain means there is no need to reconcile multiple incompatible systems for one transaction.
Reduced cost: a trustless system does not need 3rd parties to validate transactions. This saves in labour and paper trails. Everyone in the transaction has access to the same information on the blockchain.

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#2720

Transparency:

blockchain is at its core a ledger of information and a tool that allows everyone to see and share the same data and results without anyone being able to alter it as it take the whole collective to form a consensus and agree on these results.

Security:

as a record keeping application it makes sure that all the parties involved are agreed upon the transaction while forming a consensus. once that is achieved is it stored and linked to a previous transactions to keep record. as it is not stored on a single server but a network of computers it makes it very difficult for anyone to try and alter any documents by hacking in the network making it more secure protecting sensitive data…

Improved traceability:

this helps to improve tracking for good and services to a single detail without involving a middle man as sometimes it is very hard to do when a lot of parties are involved. while paperwork is changing hands all records and item transactions are traced from the time they leave the origin facility to the time they arrive at the destination point as all the records are kept intact eliminating the need for trust between anyone involved as all the information is verified mathematically thru the network…

Increased efficiency and speed:

since the blockchain uses a single ledger for all its transactions it eliminates the need for paper work and any middle man involved making the process more streamlined and efficient. thus the ledger is share between all the parties involved eliminating the need for more than one copy. this process allows for everyone involved to have trust in one another as they no longer require anyone else to verify the data helping the process along much faster allowing for less clutter and headaches.

Reduced cost:

for all small and major businesses reducing cost is a must. blockchain technology helps eliminate the middle man and all intermediaries from the equation making it more streamlined. as companies no longer need trust each other as they can just trust the data provided as everyone involved will have the permissions to access the file of information they need as one irrefutable document…

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#2721

Transparency: Transaction histories are more transparent through blockchain. All network participants share the same documentation. Shared docs can only be updated through the consensus mechanism and are available to all with the correct permissions.

Security: Transactions have to be agreed before recorded. After a transaction is approved it is encrypted and linked to the previous transaction(s). This information is then stored across a network of independent nodes where it is difficult to hack, break or modify.

Improved traceability: If you are dealing with assets that have a complex supply chain it is very difficult to validate all the inputs. Exchanges of goods are recorded on blockchain which means you have an audit trail which shows exactly where and who all assets have come from throughout the whole journey.

Increased efficiency and speed: Paper-heavy, human error, 3rd party mediation are all time consuming activities in current processes. Blockchain allows these to be eliminated and hence streamlines transactions. 1 single ledger as opposed to multiple different ones with different inputs needs consolidation which is also burdensome when coming to clearing and setllement

Reduced cost: Most transactions require a middle man or 3rd party to guarantee or validate which nearly always involves a fee. Instead you trust the maths, physics, protocols and structures of the blockchain.

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#2722

  1. Transparency is a benefit because blockchains are distributed, decentralized, and work on consensus. All participants have the same documentation. If you wanted to change a transaction, you would also have to change all other transactions/records. Changing these records is very hard, that is why this data is more accurate, and transparent.

  2. Security is a benefit because transactions are agreed upon, and are linked to previous transactions. This data is on a network of computers instead of a single database, this makes it a harder target for hackers.

  3. Exchanges of goods/transactions are recorded on blockchains, and this makes it easier to trace the supply chain. This history of the supply chain can verify the authenticity of an item/product.

  4. Efficiency and speed is better because a blockchain is digital and not paper. The ledger is also a single ledger that is shared with everyone, so there are not multiple different copies. This makes it more organized.

  5. Cost reduction happens because there are less middleman/ third parties with a blockchain. There is also no documentation that needs to be reviewed.

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#2723

Transparency is a benefit because it helps keep business partners honest. If business partners are kept honest, it makes competition even better overall, as less honest actors can’t take more honest actors business as easily, potentially leading to better practices across all industry. Blockchain can provide ultimate transparency as everyone connected to the network can audit it at a whim, likely with searchable terms and ID’s.

Security is increased when using blockchain, because instead of having a centralized network that can fail, or be attacked, the ledger controlling databases is kept accurate and running by numerous computers at all times. Incentives keep these computers running, so a network may never go down or be compromised.

Traceability is another form of transparency. It benefits honest actors in business, as they can tout the quality of their services or goods by showing a partner where it’s been along the supply chain. Blockchain allows a proof of quality, in that sense.

Efficiency and speed are always beneficial to business, and blockchain can produce them both by taking trust and paperwork out of the process. Instead of requiring a bill of lading, for example, a shipment on the blockchain could simply be looked up on a cell phone, approved, and paid for in moments after delivery.

Cost reduction is a natural result of increased efficiency and speed. Each second taken off of a transaction adds up over time, and time is money. Not to mention, saving costs on paperwork, man-hours of auditing, and mistakes or lost data.

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#2724
  1. All share same documentation which is only updated via consensus and cannot be changed.
  2. Any transaction is first agreed upon, then encrypted and linked to prior transaction and stored on network of computers.
  3. When goods are recorded, there is an audit trail showing all details and verifying authenticity.
  4. Single record keeping shared with all participants.
  5. Reducing costs since not paying 3rd party.
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#2725

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

  1. Transparency: Transparent because it is public and anyone can verify
  2. Security: Secure because it is immutable and all nodes have a copy of the ledger
  3. Improved traceability: Easier to trace as all transaction from day one are on the blockchain
  4. Increased efficiency and speed: All information in one place with real-time auditing
  5. Reduced cost: removes to need to for a lot of human intervention
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#2726
  1. Every transaction is saved into blockchain database which can be accessed by the network participants.
  2. Each of network participants has a copy of the blockchain transactions. Each change to the transaction needs to be verified by all network participants.
  3. The supply chain can be tracked in a single database.
  4. All information are located in a single database.
  5. The number of middlemans can be reduced.
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#2727

Transparency : all network participants share the same documentation. based on consensus.

Security : decentralised data base, encrypted transactions, info are stored in a network of computers that make them difficult to hack

Traceability : audit becomes easier with blockchain that registers every step of the process : historical data to check the authenticity and prevent from fraud

Efficiency and speed : blockchain allows automation without any third party mediation : transactions can be done faster and more efficiently

Reduces cost : no third party to make guarantees. We just have to trust the data, the path and the protocole

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#2728

Transparency: All participant share the same documentation so there is more transaparency and it’s based on consesus of everyone.

Security: More data protection with encrypted security, difficult to hack and the transaction need to be agreed from everyone before its recorded.

Improved traceability: The complex chain can be tracked easily by recording the good on the blockchain simplifying the entire process and creating an audit trail showing the route.

Increased efficiency and speed: Faster transaction by using the shared blockchain and no intermediaries.

Reduced cost: Trusting the data not the trading partners help eliminate third parties because everyone share an immutable version.

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