Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2750

Blockchain technology is a digital ledger that is distributed and shared by everyone on the network. This Distributed Ledger Technology is how consensus is reached, thus creating a trustless system.

Since everyone shares the same ledger, they can view every transaction, new and old. To be recorded, each one of these transactions must be agreed upon by the majority at which point it is enccrypted and linked together with the last transaction, forming a “chain”.

This level of transparency offers a greater level of traceability as well since every transaction leaves digital bread crumbs that anyone can follow back to exactly where the asset came from and see who else might have handled it along the way.

Both of these traits help contribute to the blockchains overall security since getting away with something nefarious that has been permanently recorded and is visible to anyone, is quite difficult. But on top of that, the blockchain benefits from decentralisation, removing any single point of failure and making it a much harder endeavor for any would-be hacker.

Because blockchain technology offers an automated, trustless alternative to traditional processes, many third-parties can be removed from the equation entirely, saving time and money. Also since all record keeping is done on the blockchain’s digital ledger, much less physical documentation is required, saving on office space. As I previously mentioned, this ledger is shared by all parties so there is no need for excessive amounts of account reconciliation between transacting parties, saving yet more time and money.

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#2751
  1. Transparency: Blockchain can keep a ledger of all transactions, and these can be viewed by anyone, thus there is transparency regarding all transactions and current state of the ledger.
  2. Security: By being decentralised, the blockchain does not have a single point of failure, hence being more secure. In addition, in order to record transactions, the network needs to reach consensus, hence making the ledger more secure from potential malicious participants.
  3. Improved traceability: Using blockchain, one can track transactions/goods throughout their whole journey from inception to current place.
  4. Increased efficiency and speed: Bockchain can harness the power of many network participants working together. Transactions can be verified by the network, without the need of 3rd parties to achieve trust.
  5. Reduced cost: Blockchain can reduce the need to relay on intermediaries for achieving trust, and hence greatly reduce costs for a business/activity.
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#2752

Transparency:

  • All participants share the same ledger and everyone must agree upon it in order for it to be accepted. Anything is verifiable to anyone who has access.
    Security:
  • All transactions must have consensus on a distributed network in order to be recorded on the blockchain. All transactions are encrypted and linked to all previous transactions.
    Improved traceability:
  • All transaction data can be traced easily and trusted creating a permanent audit trail.
    Increased efficiency and speed:
  • Everyone has access to the same information and uses the same ledger sharing a single record keeping system.
    Reduced cost:
  • There is no need to trust a trading partner because you only need to trust the blockchains data.
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#2753

  1. Transparency: means that it implies an open consensus because the data is accurate it is verifiable consistent and therefor in agreement in which everyone or all parties share and are accountable for.

  2. Security: In the Blockchain the fact that information is stored across a network of computers instead of on a single server, makes it very difficult for hackers to compromise the transaction data, it is safe and with the certainty that it is verifiable factually true.

  3. Improved traceability: In the process of production there is a chain of raw material that change and are recorded in the Blockchain through the whole process that can be audited or tracked material from their source to verify the authenticity of the final product or any of the assets. One of the purpose in traceability is to prevent fraudulent products, as well a to preserve and improve quality.

  4. Increased efficiency and speed: In the Digital Record keeping ledger of the blockchain automatization is follow by protocols that take away the human error factor reducing the intermediaries, in the process of paper work that clear a settlement in a quicker more efficient way.

  5. Reduced cost: Using blockchain -based track-and-trace technology, companies can reduce costs on their end and increase profit margins by cleaning up their supply chains, essentially ridding the manufacturing process of counterfeit parts and diversion. Another example that I encounter in google was that,… tracking exactly where the parts in each car come from, manufacturers can also respond to recalls in a more cost-effective manner. Instead of recalling an entire year’s worth of a certain model, they may only need to account for the cars that were equipped with parts from a certain supplier.

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#2754

  1. Transparency is one of the benefits of using a blockchain because all the records are available publicly on their ledger and can only be changed when more than 50% of users come to a consensus which is extremely unlikely due to the headache it would cause for everyone.

  2. Security is a benefit of using blockchain because the data is stored across so many different computers which protects users from fraud.

  3. Improved traceability in blockchain benefits any supply chain businesses because they are able to track all the processes from a supplier at any part of the supply chain process.

  4. Blockchain’s ability to increase efficiency and speed benefits everyone because it gets rid of human error or corruption when it comes to verifying data.

  5. Reduced costs for blockchain users is very beneficial because in the current system the money has to be verified by countless third parties before it reaches the target. By the time the transaction is received, the value has decreased due to fees.

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#2755

Transparency: All transactions are shared on one ledger that is accessible to the pubic. It is the most accurate and safe way of holding information. Once a transaction is on the ledger it is encrypted and put into the blockchain. The only way it could be changed is by consensus from all other nodes.

Security: The blockchain removes trust and instead you trust math and the protocol. When a transaction is submitted all nodes have to verify it and once it is verified it is in the blockchain and available for all to see forever. It is also hack resistant because it runs 24/7/365. The mining/incentives increase the security of the whole system.

Improved Traceability: Since the blockchain can’t be altered it is easy to see where any product has been in a supply chain or transactions have occurred in finance. The information is all in one place and there is no paper trail to collect or people to trust.

Improved Efficiency and Speed: Blockchain is more efficient because it takes out third-parties and eliminates human error. All information is found on the ledger and therefore you do not have to settle separate accounts or compare information.

Reduced Cost: You do not have to hire third parties to mediate transactions due to lack of trust. One single account is used and therefore less information to gather/review.

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#2756

Transparency:

  • All participants are looking at the same data, which is accurate and consistent.

Security:

  • Transactions will only be added after upfront approval/consensus by all participants. (Near) impossible to tamper data

Improved traceability:

  • Data/Item can be traced from start to end… it’s all ‘stamped’ where ever it come from previous step to next step in the process.

Increased efficiency and speed:
-No third parties needed to check everything at every stage…the open ledger can be consulted by all --> reduction in auditing efforts, which will highly reduce time spent on tracking.

Reduced cost:

  • Cutting out intermediaries / third parties will reduce labour cost significantly. Decrease human effort = save money.
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#2757
  1. Transparency: Everybody with an access to blockchain share the same data any update to that requires consensus which means that everybody needs to agree on it.
  2. Security: Transaction must be validated by all the computers in the network accepted and encrypted before it will be added to the Blockchain. Data is not stored on server that might be easy to hack its on every computer in the network.
  3. Improved traceability: history of transaction can be traced to its origin and verified on every stop it did before getting it to its destination
  4. Increased efficiency and speed: Transactions in blockchain are fast Becase they eliminate third parties and organizations that may be a source of a human error.
  5. Reduced cost: There in no need for third parties or middle people to verify data and documentation that. Process is trustees because you don’t have to trust or know who is on the other side of transaction, all you have to trust is the data on the blockchain.
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#2758

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

Transparency: every transaction can be tracked. Transactions cannot be removed. Both of these elements create great transparency for every participating party.

Security: a blockchain is 24/7 available decentralized network, everyone agrees upon the same documentation, transactions cannot be removed. This is why it is so secure.

Improved traceability: every transaction can be tracked and traced, which is a great plus for supply chains for ex. and it achieves trustlesness

Increased efficiency and speed: opposed to a paper-based documentation, the lack of third parties and middlemen improves correctness and reduces mistakes.

Reduced cost: a streamlined process which avoids middlemen and third parties is also much more cost effective.

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#2759

Blockchain is revolutionary in that it will remove much reliance on uninspired third parties and workers. A decentralized, and yet, central ledger where all parties to a sector of business can view, participate, and monitor the flow of data and transactions is a new bedrock of modern commerce.

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#2760

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

Transparency: All transactions are visible to the public

Security: there is trust in the math and the protocol instead of thrust in the authority. Once a transaction has taken place after consensus of the network it can not be altered

Improved traceability: It is only possible to add to the blockchain so everything can be retraced

Increased efficiency and speed: There is no need for a middle man, the transactions become instant between buyer and seller

Reduced cost: without the middleman costs are reduced

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#2761

When you use a Blockchain for example for financial transactions, the data (the transactions) is recorded on that same blockchain, which is public, in that way bitcoin by having those 2 characteristics is more transparent than centralized networks which we don’t know if they are telling the truth.
In a decentralized network loots of nodes have the same copy of the Ledger (Blockchain) in that way an hacker would have to hak at least 51% of all the blockchain nodes in order to change the information on the Ledger
As all information is recorded in the Ledger, the result is an history of the acess exchanged in that network thus improving traceability and reducing costs because all the data for accounting is in that same history.

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#2762
  1. It requires consensus to update the shared documentation received by all participants , all party’s share the same documentation in stead of a indivual copy of that documentation. When a transaction needs to be altered all permissioned paticipants need to give the green light , and subsequent records need to be altered true the network.

2.No single server involved , the decentralized network makes sure that all transactions are being agreed before they are recorded on the blockchain.

3.Supply chain , everything needed to know about the used product is traceable too it’s origin without having to trust any of the party’s involved because everything is mathematicly proven to be accurate.

4.Everyone has the same information accessable at any given moment , what takes away lot’s of time and effort or third party’s to get the information they need.

  1. By just checking the blockchain data all involved party’s can get the information they need at any given time , no need to trust a partner because everything on the blockchain is verified and recorded.
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#2763

Transparency:
Transparency provides all participating network computers with historical linked transactions to see so as to verify if the new transaction is valid consensually and only then be added to the public ledger to be stored permanently and which is immutable. Information in the blockchain database is therefore accurate, consistent and accountable.

Security:
Blockchain highly secured and immutable - once it is saved it’s final, not subject to human intervention. It is less susceptible to hacking, cheating or fraudulent manipulation as it is encrypted with links to previous transactions in the public ledger. It is not prone to single point of failure due, incentivised mining helps to maintain high security and is replicated globally across P2P network of computers and is always available 24x7x365.

Improved traceability:
A transaction is highly traceable one transaction to the source of origin since it is encrypted with linked to previous historical transactions all in one layer. Each historical transaction is highly authenticated and linked at each point of the originated source along the journey and audited to trace, detect and prevent mishandling, cheating or fraud.

Increased efficiency and speed:
With blockchain, it is highly available to access the information is built on a single distributed public ledger that is transparent, highly secured and shared, authenticated and trusted. It’s also easier to complete the work activities much faster within same source without having to rely or wait on intermediaries. Business can redesign their functions and automate their processes to complete more effectively and efficiency to improve productivity.

Reduced cost:
Blockchain is a trustlessness platform that is secured, authenticated, accounted and transparent. Business can use blockchain to re-design and automate to streamline processes or by removing guarantee or trust through intermediaries on their deals to reduce operational cost. Instead trust in blockchain to deal with business transaction even directly with total strangers.

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#2764

Transparency: Data held on the ledger is available to all.

Security: The blockchain cannot be hacked because of its decentralised nature (transactions/events can only be added via consensus and cannot be changed). This means that participants on the blockchain don’t have to put their trust in one person or authority.

Improved traceability: If using blockchain, nobody could dishonestly say, for example, “This asset belongs to me because Person ABC said so in a will or contract or email” – all of which are unreliable and can be edited, fabricated or copied. The blockchain could prove that no transfer of assets ever took place. Equally, if all events and transactions in the supply chain were added to the blockchain, a real-time audit trail would be available to quickly and efficiently verify the origins of goods and materials. This audit trail would have guaranteed accuracy and reliability due to the blockchain features of immutability and consensus.

Increased efficiency, speed and reduced cost: When everyone has access to the same information and knows that data stored on the public ledger is true, trust isn’t needed and this eliminates the need for various intermediaries, such as escrow agents in a property transaction, and eliminating these saves a great deal of time and money for the parties involved. A real-time financial audit trail for businesses could also eliminate the need for money and time spent with accountancy firms. Given that all transactions occur on the same blockchain infrastructure, all cypto payments are naturally borderless, making oversees payments immediate (no waiting for “2 business days”) and eliminating expensive FX transaction fees.

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#2765

  1. Improving transparency of any sort is an extremely powerful selling-point when introducing a new kind of system such as the blockchain to a company. For a business to use a blockchain network, there would be no room for human error when documenting transactions because everything is incredibly organized and reviewed by several members. Everyone with permission to access the blockchain can double-check the blockchain saying “yes, this transaction is correct” in real time before papers become piled up and physically searching for the one transaction error becomes more difficult.

  2. Security is one of the many benefits to using a blockchain because every transaction is linked to the previous one. After an agreement is made, the data is encrypted and distributed to several databases which spreads out the information and makes it more difficult to hack than that of a company using a single server. The other networks can discover the fraudulent behavior immediately and dismiss of the nonsense.

  3. Blockchain technology improves tracing a product/ingredient immensely for a company by providing real time, confirmed/verified documentation of each facility the product had stopped at or came in contact with before arrival. All together, this provides a company with a valid, detailed description of their product’s life and an assurance to customers who trust these companies (really the validity of the blockchain) with whatever they claim about their product.

  4. If you are a company using paper for business transactions, you are risking your money and time with the many possibilities of human error and third-party negotiations. Companies with blockchain technology however benefit extremely. For one, computers work much faster with numbers and mathematics than we hare humanely capable. Secondly, everything is kept up to date, baked down into one single database that is accessible to those appropriate to view. Basically, everyone sees the same organized information, so those that trust the mathematics of the blockchain can make trusting one another that much easier.

  5. Reducing costs is vital for the future of any business. One of the major benefits for a company welcoming blockchain technology into their work space is the trustless environment it offers on the chain. Sometimes the cheapest process/deal for a company brings risk to the table like trusting random strangers with your product. The blockchain makes it possible to do business with any stranger anywhere. So those cheaper routes/middleman can now be trusted and used, therefore providing more opportunities for companies to reduce future costs.

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#2766
  1. Transparency:
  • Blockchain is based on distributed ledger so all the records are visible to the public what increases transparency.
  1. Security:
  • All transactions must be agreed on by all the network members and after approval they are encrypted and linked to the previous transactions.
  1. Improved traceability:
  • Since all the transactions are recorded on a public ledger, they can be easily tracked all the way back to their origin.
  1. Increased efficiency and speed:
  • Blockchain enables us to conduct way faster and more efficient transactions since we have only one public ledger, available to all and the need for intermediaries is eliminated what significantly speeds up the the whole process.
  1. Reduced cost:
  • With blockchain we don’t need intermediaries (since all this is based on maths rules) and we save a lot of time what makes businesses more profitable.
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#2767
  1. All transactions are transparent and the algorithm is transparent, which is why we can fully trust the blockchain system instead of trusting the agents with which we perform the exchange.
  2. Hashing algorithms and multiple copies of nodes make the blockchain perfectly secure at least in the near future.
  3. Thanks to the transparency it’s easy to see for example how this or that wallet received the resulting some of the coins. It’s easy to check the balance without any need in 3rd party audit.
  4. Transactions are settled as soon as consensus reached and there is no need in additional clearance of balance sheets.
  5. Blockchain might help businesses to reduce cost of background checks on their business partners and make one integration instead of many (in case blockchain is widely adopted)
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#2768

Transparency: Because all nodes have the same, shared copy of the ledger, all nodes have access to the same information and must agree before new transactions can be added to the chain. In order for anything to be changed on the chain would require a large number of nodes on the network to be altered as well as all subsequent transactions.

Security: Because all transactions need to be approved by the entirety of the network and once approved, are encrypted and connected to the previous transaction. Also, since all transactional information is stored on a network of computers rather than in a single location, it makes the information less vulnerable to hackers.

Improved traceability: All information is easy to trace since you only need to follow the blockchain back to find the record of every transaction.

Increased efficiency and speed: Because all transactions include all the information needed for record-keeping, it eliminates the need for additional documentation, thereby making exchange of goods more efficient and speedy.

Reduced cost: The elimination of the need for third-party applications and middlemen, as well as the reduced documentation needed to review transactions reduces costs.

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#2769

Transparency: Everybody can see the public ledger and its associated transactions.
Security: Decentralized infrastructure provides the ability to make hacking difficult as you would need to impact a majority of the numerous nodes in the network.
Improved traceability:Transaction histories can be audited and traced in the public ledger.
Increased efficiency and speed: One ledger that can be verified instead of multiple sources makes the blockchain efficient and fast without intermediaries which require trust.
Reduced cost: Removing the need for intermediaries to verify data entry since the blockchain nodes will take care of this activity automatically with a trustless system.

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