Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2729

All transactions are stored on a public blockchain that anyone can get access to.

The consensus of nodes decides which transaction is legit and will be added to a block (after confirmation) thus securing the whole network from fraud and forgery.

By exploring the data on blockchain anyone can track any information about a product or transaction from the very first entry data till the present time.

In most cases, the traditional process requires the help of a third party. Handling is exercised physically, inefficiently, prone to human error. With blockchain, you can increase speed, remove the human error and the middleman, making the process cheaper, faster, and trustless.

The cost can be significantly reduced by removing the third parties. All you need is a secure and verifiable network that anyone can trust

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#2730

Answers:

  1. everyone on the network will be able to view the blockchain
  2. Once on the blockchain it can not be changed
  3. you can verify the blocks for traceability
  4. person 2 person no central bank needed
  5. no middle man is needed just the network.
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#2732

Transparency is highlighted that all actors see same real time, - data, changes only occur via consensus.

Only approved transactions are allowed access, encrypted links secures validated data to previous ledger.

Authentication of the most complex supply chains are traceable via provenance

Process on the Block chain requires less interference, hence more efficient, without corruption or human error.

The above facts not only contribute with efficiency, but are of sizable financial benefit to all involved actors and end-users.

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#2733
  1. Transparency is a benefit of blockchain because it is not opaque and that is juxtaposed against the nonā€“transparency of centrally controlled private ledgers. There are no hidden transactions.
  2. Security is a benefit because the redundancy of the blockchain over a distributed network as well as the immutability of each verified transaction is above enterprise standards. The security is inherent to the blockchain at no additional cost.
  3. Improved traceability is a benefit of blockchain because the provenance extends not only to the transaction but can exist for end-to-end information of every aspect and phase that leads to the transaction.
  4. Increased efficiency and speed is a benefit of blockchain because it eliminates the need for much of the intermediation expense that has evolved around traditional process flows. How much time does a standard securities settlement take, three days? How about if it took minutes?
  5. Reduced Cost is a benefit because all parties can rely on the same information and do not need to duplicate it and replicate it and reconcile it. Full integration of that information means algorithms and contracts will take a lot of the workload and subsequently costs away from traditional processes.
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#2734

Transparency: Blockchaine is a public leadger that holds database which is open for everyone to see, thereā€™s no seqret transactions

Security: Is provided by system that is decentralised, so no one can interfere. It is a global protocol, has its standards. People mining and producing blocks are providing high sequrity

Improved traceability: Provenance is usecase of blockchain that traces transactions that are auditable and accsesable all the time

Increased efficiency and speed: Efficency and speed are increased by removing third party - middle man and using global nodes to verify transactions.

Reduced cost: By removing middleman and not being centralized

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#2735

Transparency:

Blockchainā€™s type of distributed ledger allows all network participants to share the same documentation as opposed to individual copies. Individual copies of documents in a centralised system could be altered & you would have different versions of the truth, where as with blockchain having a shared version that can only be updated through consensus, would ensure a single version of the truth. Changing a single transaction record would mean that all subsequent records would have to be altered and the collusion of the entire network would be needed.

Security:

Consensus must be achieved before any transactions are recorded on the ledger. After which they are then encrypted and linked to the previous transaction on the blockchain. The digital decentralised nature of this network makes it very difficult for hackers to compromise the transaction data.

Improved traceability:

When it comes to complex supply chains, blockchain enables products to be tracked & audited in real time through out every phase of itā€™s journey on that supply chain. This makes it easier to verify the authenticity of the product & reduce fraud.

Increased efficiency and speed:

Traditional paper heavy processes for trading are time consuming & prone to human error & often require 3rd parties to provide mediation. The blockchain allows these processes to be automated & more efficient. Records are kept on a single digital ledger that is shared among all participants. There is no need for any trusted 3rd parties to provided mediation because everyone has access to the same information & therefore trust comes from the network, not 3rd parties. Clearing & statements can occur quicker.

Reduced cost:

Costs are reduced by the reduction in 3rd parties to make guarantees because trust between client & customer is not required, only trust in the data & network. You also wonā€™t have to review so much documentation to complete a trade because everyone will have permissioned access to a single, immutable version.

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#2736

1.- Transparency: the information is available to anyone, thus, transparent to any.
2.- Security: Blockchain is secure because the information is stored and shared among many participants, thus itā€™s more secure than store the information in a single point.
3.-Improved traceability: since blockchain is public and aso the information is connected, you can trace the information among the chain.
4.- Increased efficiency and speed: since there are no intermediaries, the efficiency and speed should be better compared to the same process with intermediaries.
5.- Reduced cost: because you do not need as many third parties as in a traditional process involving a centralized db, you can reduce costs.

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#2737

1anyone can see the ledger.
2 must be agreed upon.
3 can look at block to see all the steps.
4 anyone can view the ledger.
5 donā€™t need to trust no one, just the database.

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#2738

Transparency: Blockchains have the benefit of transparency because the nature of the distributed ledger which means that all parties have a copy of the same ledger on the blockchain, and agree on the state of it through consensus.

Security: Is now the trust in math and protocol rather than central organisation. Trusting the network to approve transactions before they are recorded. Ecrypted and linked to previous transaction makes it difficult for hackers to forge transaction because its stored on the network rather than a single server.

Improved traceability: Audited trail where all assets and data are stamped. This helps verify its authenticity of every specification that was entered so it can be tracked.

Increased efficiency and speed: Live auditing, approving and settling occur a lot faster

Reduced cost: streamlining and automation, the result is reduced cost. The data on the blockchain can be trusted by all parties to avoid intermediaries that could off cost Time and Money.

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#2739

Transparency:

  • To alter a single transaction - would require the re-framing of all subsequent records and the collusion of the entire network.

  • All transactions are open to the public and its participants executing transactions.

  • Provides real time auditing

Security:

The following are all ingredients to the security backbone of the Blockchain network:

  • Provenance
  • Consensus
  • Finality
  • Immutability
  • High Availability
  • Harnessing a new type of Security level - resulting in Trustlessness

Improved traceability:

  • When exchanges/transactions are recorded on a blockchain, it develops an audit trail that shows where an asset came from (Provenance) and every stop its made through its cycle.

  • These immutable transaction trails can help to verify the authenticity of assets and prevent fraud.

Increased efficiency and speed:

  • Exchanges/trading is open to human error when it comes to normal centralized networks vs Blockchain networks.

  • Blockchain networks streamline and automate transactions by enabling participants in a transaction to have access to the same information.

  • It creates transparency.

  • Removes many intermediaries

Reduced cost:

  • This is where Transparency and Trustless-trust come to play, it creates reassurance in the blockchain networks traceability and security.

You also wonā€™t have to review so much documentation to complete a trade because everyone will have permissioned access to a single, immutable version.

  • Removal of third parties, middlemen and intermediaries - result in reductions of cost.
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#2740

A distributed ledger like blockchain has the same information shared by everyone and available for everyone with permission of acces

transactions are agreed, a consensus had been made its encrypted and linked to the previous block.
This is shared on a network of computers and not on a single server wich makes it very hard for hackers to obtain the info in the blockchain

With blockchain u can very easy see the road a product took, every step in a proces should be on the blockchain from the beginning to the end so it can be authenticated and it prevents fraude in any way

transactions can be completed alot faster because of the blockchain automations, also there is no third party or middleman

recuding costs is a main factor for all companies, with blockchain we dont need a third party or middlemen as mentioned before so u dant have to pay them tooā€¦
U can trust on the data in the blockchain!
u will not have to review so much for a completed trade because everyone with acces permission works on a single, immutable version

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#2741

Transparency : The Blockchain technology gives the opportunity to trace and verfy every single transactions through a distributed public ledger. Every transactions send by each component of the network require consensum by the network partecipants.

Security : The Blockchain is secure because every transactions must be checked upon before are recorded on the ledger. Once the transaction is approved, we get a crypted copy and linked to the previus transaction. In this case all the data sent are stored across a network of computers, istead of a single server, this makes very difficult to hack the database.

Improved traceabilty:
We can accurate trace everything on the supply chain.

Increased efficiency and speed: The transactions can be traded in one single digital ledger connected to all the network participant, avoiding to use third-party mediation or differts ledgers. The database is opensource and everyone has access to the same information, this leads to trust each other without intermediaries.

Reduced costs:
With Blockchain save costs avoiding third parties or intermediary because you trust the efficent caratteristic of the protocol, not people.

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#2742

The significant Benefits of blockchain technology include:
Transparency of the sequence and trail of transactions from the origin thru every step, thus facilitating the automatic correlation of process information such as quotes and orders and Invoices, with the accounting information such as payments and receipts and because the public ledger is open to authorised people this aspect makes the whole process and chain open for scrutiny.
Security is assured because of the distributed nature of the public ledger and the fact that all transactions are subject to provenance and verification prior to approval and entry and lastly the transaction is FINAL and cannot be changed.
Improved traceability: The principle of having an unbroken chain of transactions for every step of the process makes for an audit trail that can be inspected with confidence and with full details of all the corresponding data relevant to that transaction.
Increased efficiency and speed: The fact that intermediate processes and parties are eliminated from the essential transaction data simplifies the record-keeping and so removes the need for un-necessary parties to be involved and making for improved efficiencies and faster rate of settlement without delays.
Reduced cost: The linking of all relevant information into one transaction simplifies the process and reduces the cost of transactions.

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#2743
  1. Transparency:

Not only that a company can work more effective the more transparency they have in their transactions, but customers can also be much closer and see how the company works and if they do what they say about their product.

Transparency goes hand in hand with an improved traceability, efficiency and speed.

  1. Security:

Files are not stored on a central server, but distributed within the blockchain on several computers. As a result, there is no longer a central point where a hacker has to log in to get data.

Furthermore it helps to prevent failures or frauds by consensus. Which means any transaction has to get the permission from every member of the network. If something is not valid with the data of the other members, no transaction happens.

  1. Improved traceability:

Improved traceability emerges from the transparency of the network. A product can now be easily and exact traced to itā€™s provenance.

  1. Increased efficiency and speed:

Because of the now transparent and way better traceable system a lot of time can be saved and therefore the whole system is now more time and cost efficient.

The blockchain also provides a real time system, which makes payments or data exchange instantly possible and it automatically can check for any failures and then prevent an action.

  1. Reduced cost:

Time is money. The way more transparent and efficient system saves a lot of work and therefore lowers costs.

The elimination of a necessary basis of trust means that third parties will no longer need to check whether someone is trustworthy, as the blockchain can now take over the check.

Data is no longer stored on servers, which are big power consumers.

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#2744

1 Because everyone have access to the same copy the information becomes much more transparent.
2 The security is higher because the information isnā€™t stored on just one server, but across the whole network. This make the chance of a compromise very low as there is not a single point of entry for a intruder.
3 the traceability is highly increased as all the information is stored in the blockchain, from start to finished product for example. Everyone have access to the whole block of information, not only your own peace of the chain.
4 the speed and efficiency is higher as you donā€™t diners to do so much research to be able to trust the party you are doing business with, as all the information is accessed by everyone. More transparent = more efficient.
5 the costs are reduced as you do things more efficient. Time is money :grinning:

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#2745

Transparency: because it allows for democratised access to people, and people are accessing the same data and can only add new data if there is consensus among all network participants.
Security: The blockchain encrypts data and decentralised the database so transactions can be more secure.
Improved traceability: You can link transactions to their previous transactions so you can trace them back and verify where it came from.
Increased efficiency and speed: transactions can become instant
reduced cost: data is more accessible and shareable

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#2746

Transparency:
Adding information to the blockchain can only achieved by consensus or group participation through nodes. These nodes hold a public ledger available to all . All transactions are therefore public and traceable

Security:
Transactions must be accepted though node consensus before they are added to the blockchain . Once the verified transactions are linked to the previous transaction and stored in the network, Like a digital stone, these transactions can not be erased or modified they are imprinted eternally. Mining is incentivised and so therefore is truth and verification, mining also provides security to the network

Improved traceability:
All transactions can be traced or tracked on a blockchain. They cannot be erased or modified . No paperwork means no record loss

Increased efficiency and speed:
No paper means faster, more secure and less intermediary interaction

Reduced costs:
Reduce paper, reduce carbon footprint, reduce cost of intermediariesā€¦time efficient

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#2747

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

Transparency: Instead of one centrally owned or controlled database which only a select few have access to, blockchain is a lot more transparent. The ledger is shared across a network, each keeping a separate, identical record of it. Transactions are often viewable by anyone in the world with access to the internet (block explorers etc) whilst maintaining a high level of security and anonymity. The transparency of blockchains leads to a more effective, open and secure network. If everyone can see what is happening at all times and agree through consensus when transactions are valid, it becomes incredibly hard to hide, manipulate or obfuscate data leading to more open playing field where trust is simply not needed.

Security: Blockchains are more secure as they donā€™t depend on a single central authority. Instead validity of transactions is achieved through network consensus making it incredibly hard for any one party to successfully give false information and have it added to the chain. The blockchain also canā€™t be altered and can only added to. This adds an extra layer of security as there can be no disputing or changing of historic data or transactions.

Improved traceability: The very nature of blockchains (blocks chained together) provides an effective, secure and transparent audit trail of data. This could be used for supply chains where goods can be traced back to the source leading to greater visibility for everyone, from manufacturers to consumers.

Increased efficiency and speed: Traditional record keeping with multiple data silos and ledgers is ineffective, slow, prone to errors and often requires auditing by expensive, specialist firms to ensure trustworthiness and accuracy. With blockchain, everyone has access to the same identical records making things way faster and more efficient than traditional record keeping.

Reduced cost: Blockchain is trustless and removes the need for any third parties or intermediaries that make their money by providing trust to separate parties looking to transact with each other. This makes transactions quicker, more secure and less expensive.

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#2748
  1. Transparency:
    A blockchain is like a distributed database where all transaction histories are recorded on this Single Distributed Ledger. Each user/participant is viewing and interacting with the original live database not a separate copy of the ledger containing the transaction histories. No changes can be made to the records on the blockchain unless all participants agree, have consensus on the change. Hence all transactional records are clear, open and transparent for all to view.
  2. Security:
    There is improved security on a blockchain as there can be no changes made to any of the records on the blockchain unless all participants agree, have consensus on the change, and once the change is recorded it cannot be undone. Access to records is controlled by permissions, so no unauthorized access is possible, all changes must be agreed upon before they are recorded. Once a transaction is approved, it is encrypted and linked to the previous transaction. To change one transaction all previous linked transaction would have to be changed across a network of thousands of computers supporting the blockchain.
  3. Improved traceability:
    All transactional histories are recorded on the blockchain and each transaction is recorded after it has been agreed upon by all the computers participating in the network. Once recorded into the blockchain the transaction cannot be changed, so if a person needs to trace the to the origin of the transaction they can easily do so by tracing all the entries in the transaction histories. There is a permanent audit trail residing on all the computers supporting the blockchain.
  4. Increased efficiency and speed:
    Record keeping in the blockchain doesnā€™t require approval and paper-work to be processed hence the speed of the transaction is very high as all traditional third-parties and other intermediaries are removed from the transaction processes. All transactions are being done on a SINGLE ledger shared amongst the participants.
  5. Reduced cost:
    As all intermediaries are removed from the transaction processes the cost and speed of completing the transactions improves significantly saving time and money to all parties involved.
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#2749

TRANSPARENCY - after the data has been validated it becomes available for everyone on the network to see 24/7 365.
SECURITY - the single points of failure are cancelled by the consensus of the network.
IMPROVED TRACEABILITY - the network guarantees the data is accurate and makes is easy to access also simplifies auditing.
INCREASED EFFICIENCY AND SPEED - little or no human intervention is needed.
REDUCED COST - no middle-men or intermediaries.

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