Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#2770

Transparency:

  • Everyone has access to the ledger, every transaction is documented, all networks verify and agree that all information is in alignment and correct. There can be no edits or manipulation to previous transactions.

Security:

  • Everything documented has to be agreed upon by all parties before they are recorded. Once transactions are made, they are documented in the blockchain and can not be edited or removed. As one transaction is made after another, all transactions are then linked to the previous transaction. This prevents any corrupt party to edit or manipulate any previous transactions as nothing can be removed or edited once it is recorded. And if any transaction is made out of alignment with the other transactions or unless all networks confirm everything is in alignment, the transaction will not go through.

Improved traceability:

  • Any transaction made is permanently recorded. Therefore you end up with an audit trail built into the system.

Increased efficiency and speed

  • Less probability of human error as everything is permanently recorded and all networks have access to the same ledger. Everything is built into one system that everyone has access to and there is no need for mailing out documents, proof of funds, proof of work, etc. as everything can be verified from the blockchain eliminating high waiting periods and loss of documentation

Reduced cost:

  • Saves time, saves money spent on verifying a source
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#2771

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

Transparency: Where everything is decentralized and public to see

Security:
It uses maths and alogorithms to ensure utmost protection
Improved traceability:
As with the blockchain system you are able to track the system from its origins as the data is decentralised
Increased efficiency and speed:
Comapred to tradtitional methods, digitally it requires much less work and leaves the entire process to the system to do it’s work
Reduced cost: With widespread adoption, the cost will be able to be reduced as the demand increases.

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#2772

Answer:

  1. Transparency : The open-decentralized database that is blockchain can be viewed and verified by anyone and everyone, eliminating the need to trust a third party or centralized government.
  2. Security : Because each transaction is written on the blockchain and verified by everyone connected to the blockchain, it is near-impossible for the database to be breached or altered.
  3. Improved traceability : Transparency in the decentralized database allows provenance, where we can verify that the the product we bought really did obtain their materials from where they claimed.
  4. Efficiency and Speed : Without the need to rely on a third party, with bitcoin we can easily send any sum of money across nations in a matter of minutes with only a fraction of what it would cost to pay for bank administrative fees, and is available 24/7.
  5. Reduced cost : Without the need of a third party such as a bank or paypal who charge administrative fees, bitcoin allows you to send money directly to the recipient with a fraction of the cost.
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#2773

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

Transparency:
With full immutable transparency “higher efficiency” becomes achievable because its data is constant 24/7/365, accurate, and unwavering.

To change a single transaction record would collude with the entire network, thus it cannot and will not happen.

With blockchains concrete transparency no authority is necessary to a point that it does not exist - making it clearly decentralized.

Blockchain data transparency reflects genuine consensus, provenance, global reach and access.

Security:
The transaction data “consensus” in blockchain ledger - has an enhanced security built into it via incentives to provide the data across multiple computer nodes, all in agreement with the same data input and time stamp. With the multi nodes and no authority to change the data, makes it a decentralized network that can’t be hacked. On the flip side the centralized way offers a single server that can be more easily hacked, and altered via it’s authority driven platform.

Improved traceability:
Blockchain creates this full audit trail that shows where an asset came from, its make-up, and every stop it made on its journey.

Blockchains Instant verified authenticity stamps out error, doubt, and fraud - thus making its improved traceability factor - a very good move!

Increased efficiency and speed:
Conventional - centralized - time consuming processes are prone to human error and 3rd party “fizzle-dinks” bottlenecking efficiency. Streamlining these corrupt and cumbersome processes with blockchain - is like steaming all the stains, and wrinkles out of the fabric; and let that fabric just plainly be itself as fast as possible to the best of its value.

Reduced cost:
Blockchains vast transparency, traceability, and security of data “without” any authority or 3rd parties with all their hands in the cookie jar - each hand in the cookie jar gets payed in cookies, the less hands, the more available cookies - all using the same amount of dough. The more dough to spread around - the more it reduces the initial cost; and that would be my fortune cookie telling for the day.

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#2774

Transparency:
Any transaction needs validation from the descentralized nodes in order to get aproved and appear in the blockchain. Once there, it is an immutable and public record.

Security:
The fact that it is a descentralized DB makes is much more difficult to attack since every node has a copy of the ledger and hacking one will achieve nothing for the hacker.

Improved traceability:
There is only one big ledger for us all, so for anything you say you have or send there has to be a record, and can ve validated real time, eliminating the need of trust.

Increased efficiency and speed:
Blockchain transactions are P2P, getting rid of the intermediaries makes it much faster, cheaper and safer.

Reduced cost:
By merging together transactions and accounting we get a much lighter and faster process, which can also be real time audited reducing cost and avioding the need to trust a third party

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#2775

Transparency: All shared data is up-dated. Everyone can rely on the latest version. Only consenus can up-date new versions.

Security: Every transaction must be approved before it is recorded.

Improved traceability: All transactions are recorded and only new transactions can be added but not removed. No need for additional audits.

Increased efficency and speed: The use of one ledger is faster and more cost-effective than multiple ledger synchronizations and audits.

Reduced cost: The use of multiple ledgers needs efforts to synchronize information and to audit the validity of the data.

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#2776

Transparency because we have a copy of all the transactions ever happenned in this blockchain since it has been created

Security because the network is growing and verify everything data by data so we’re sure to have an impartial data telling us the truth because the blocks are attached one to another a makes it clear if there would have a problem or a manipulation of the date

Improved traceability: Well as everything is recorded on the blockchain and forever it’s not removable so the tracability of any transactions is very easy to follow

Increased efficiency and speed As much as the network is growing there is always some improvements in the transactions P seconds some more than others for sure but we tend to have better possibilities to use the network by more people in the next fews years ahead.

Reduced cost: You own it and after all you just sending data right? That’s why we sometimes see millions or billions in Dollars value of transaction in the Bitcoin Blockchain and there is only a few dollars of transactions fees which is way cheaper for this much money rather than have a banker who would have take several days to get the money send and for much more in fees.

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#2777

Transparency: Every single transaction will be recorded on a public ledger which is accessible to anyone.

Security: A decentralized network means all the nodes have to verify the authenticity of every transaction, and each transaction is linked to the previous transaction, which in turn is linked to the previous. It means it is very hard for fraud to happen as the whole ledger would have to be edited. It will be almost impossible for anyone not to notice a fraud.

Improved traceability: As mentioned, every transaction is linked to a previous transaction and it goes all the way back to the first ever transaction. So everything can effectively be traced. Most importantly, everything has to be filed. This is unlike the present day in which people may neglect their record keeping and paperwork.

Increased efficiency and speed: Everything is recorded on a single ledger which means duplication of effort and work is cut out.

Reduced cost: Everything is recorded digitally. There will be no need for paperwork, physical files etc.

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#2778

Transparency: Blockchain is a ledger where all data (such as transactions) is available to the network participants, thus offering a greater transparency.
Security: All data is verified prior to being added on the blockchain.
Traceability: When adding data on a blockchain, the same can not be removed or changed. Therefore a data can be easily traced back.
Increased efficiency and speed: Since blockchain is a global ledger the main thing that brings speed and increased efficiency is trustlessness.
Reduced costs: No need of middlemen, 3rd parties, additional audits or tracing.

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#2779

Transparency: Every transaction is added to a public ledger/ single database, visible by everyone with permission access.

Security: Once successful transactions are added to the blockchain, they cannot be undone or amended, thus preventing fraud and the risk of a hack. Any altered transaction block means all future transactions must also be altered making it near impossible for any one or any computer to do. Any false tractions will not be verified by the nodes and all financial incentives lost.

Improved traceability:
All successful transactions are visible in real time on the blockchain. Real time audits are therefore possible, eventually making traditional paper processes obsolete.

Increased efficiency and speed:
Companies reduce overheads by eliminating the need for intermediaries as well as reducing the need to research into a B2B supplier. The time spent by employees performing these tasks can be allocated to a more useful process.

Reduced cost: Companies reduce overheads by eliminating the need for intermediaries. Traditional accounting firms are no longer necessary for auditing if all transactional information is readable on the blockchain. In this case, book keeping requirements and associated training costs can also be reduced.

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#2780

Transparency: Everyone holds the same copy of the ledger. Trust is unnecessary in a blockchain network.
Security: Decentralized network is built to be secure and incentivized so that everyone works towards the same goal.
Improved traceability: When everyone has the same copy of the ledger everything can be traced back.
Increased efficiency and speed: Blockchains are highly available and confirmation times are usually low. However they may become slower and costlier as the usage grows and networks get clogged, thus making smaller transactions of value unnecessary.
Reduced cost: Decentralized networks don’t require middle-men to guarantee trust, which reduces the cost of contracts.

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#2781

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

Transparency:

Everyone using a blockchain shares the same data because it is a distributed database. This data can only be updated when everyone agrees. Editing an existing piece of data would also require editing all previous data with everyone working together which would be a pain in the bottom :slight_smile:

Security:

Blockchains are more secure than other databases because consensus is required before any transactions are added. Transactions are encrypted and linked to the previous transaction and get replicated across all the nodes in the network. Because of this hackers would find it very difficult to modify existing data.

Improved traceability:

Blockchains help with provenance in supply chains. Goods can be tracked as they move along the supply chain recording their location history on the blockchain. Customers can then for example prove the authenticity a product and see its complete history.

Increased efficiency and speed:

Trading on a blockchain is quicker because everyone is using the same shared database. There are not multiple systems which need to be reconciled. Trust is also removed so you don’t need any middlemen.

Reduced cost:

Using blockchains can be cheaper because without middlemen there are not as many third parties involved. Everyone is using the same shared database and this efficiency reduces costs.

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#2782
  1. Transparency: All the parties on the blockchain share the same documentation, therefore all the information is correct. For the information to change, all the parties must agree to the change which results in a change to the entire network.
  2. Security: Each transaction is encrypted and linked to the previous transaction, therefore hackers cannot access the information. Even if they do, this would still need to be verified by the chain before changes can be accepted.
  3. Improved traceability: Every step of the lifecycle of a product can be traced with the use of blockchain. The transaction history of a product can be verified to know the source of the product’s ingredients and/or suppliers, and their suppliers. It removes fraud and trust.
  4. Increased efficiency and speed: Because all the parties in the transaction can work off the same document, it removes the need for an intermediary to facilitate and it becomes easier for parties to trust each other. Certain tasks and processes can be automated to speed up the process and more efficiently.
  5. Reduced cost: Due to the open and transparent nature of the process, there are fewer middle men required to fulfill a role. You do not need to trust the person you are dealing with, you only need to trust the data on the blockchain.
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#2783

Transparency:

Since everyone shares a single ledger, everyone with access to it has access to the same information as everyone else and no one can make a change without affecting the whole ledger so it is impossible to change something without everyone finding out about it.

Security:

No one can corrupt the data on the ledger since everyone has the same copy, and since it is stored across different computers it is way more difficult for someone to try and hack it than if it was stored on a single server.

Improved traceability:

Since everything that goes on it must be approved by consensus all the information is more accurate and from beginning to end the ledger is accessed by everyone it is easier to trace back everything to the source.

Increased efficiency and speed:

also everyone with access to the ledger has access to the same copy so there is no need for disputes since everyone has the same information and this is specially helpful when it comes to auditing.

Reduced cost:

With instances such as audits you dont need to bring in thirds parties because you have access to everything therefore making things much more cost effective.

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#2784

Transparency:
Blockchain transactions are public, thus transparent. Also, rather than people having an individual copy of all transaction, it is more like one document that has been verified by many parties.
Security:
Transactions have to be agreed upon before they are added to the blockchain. Also, the information is not just stored on one server but on several nodes.
Improved traceability:
If Blockchain is used in a complex supply chain, we end up with a documentation of all inputs from all different sources along the way.
Increased efficiency and speed:
As everything is compiled into one chain rather than a cluttered collection of independent documents, it becomes easier and faster to audit information.
Reduced cost:
By eliminating middle-men thanks to the concept of trustlessness a lot of costs are saved for example in financial transactions.

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#2785
  1. Transparency:

Everyone who has the right to access a piece of information can access it and must agree to it for a transaction to go ahead. There is no room for secrecy or authoritarian solo decisions. If someone disagrees with it, the entire chain of information / processes needs to be updated and corrected (and affects the entire network). Thus the information provided is accurate, consistent and transparent with consensus of the network participants behind it.

  1. Security:

Before a transaction is recorded it must be approved by all participants in the network, and after it has been recorded it can’t be deleted or hidden. It can be accessed by all computers sharing the network, which makes it very difficult to be “hijacked” or hacked, because it’s not stored on a single database/could/computer.

  1. Improved traceability:

Every transaction (that’s approved by everyone involved) is recorded and can be traced. They are also linked to each other in the block-chain. This increases authenticity and minimises fraud.

  1. Increased efficiency and speed:

Since processes in blockchain are automated and streamlined, and they use a single ledger shared by everyone in the network, they become more efficient and speedy, since middle men and superfluous stages are eliminated, and also human error is reduced through automation.

  1. Reduced cost:

Businesses and individuals need less middle men and service providers to complete transactions because they can verify the data in the blockchain directly, which has been agreed to as correct by the entire network.

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#2786

  1. TRANSPARENCY
    BC** is open global distributed ledger/database. Everyone at anytime can check the history of all data in the database. Consensus is used to add data to BC and after confirmation it’s no more possible to remove the transactions. To change a single transaction record would require the alteration of all subsequent records and the collusion of the entire network.

  2. ENHANCED SECURITY
    All transactions are only updated with a global consensus of all participating nodes. The more hash power is in the network, the more secure is the BC. Cryptography (hash function) is used to reach the security and immutability by linking the blocks together. Every subsequent block must match to the previous one (hash function - changing only one character in the data would result in totally different looking hash). This mechanism makes BC very robust and resistant against possible hack attempts.

  3. IMPROVED TRACEABILITY
    In public open BC economy, transaction + accounting/bookkeeping + auditing are done all together. Not like in the traditional economy, where you first need to do a transaction and later you do the accounting/bookkeeping, auditing may come on demand even much later. IE in Bitcoin BC we can track/see every single transaction made since inception of the Bitcoin in 2009. Historical data are used to verify authenticity of assets and prevent fraud.

  4. INCREASED EFFICIENCY AND SPEED
    Automation of processes with BC removes paperwork and drastically eliminates the possibility of a human error. In a decentralized system where all nodes have same data, becomes easier to trust each other. Trust-less system based on maths and protocols will also remove all possible false entries/information.

  5. REDUCED COSTS
    By using BC we cut the costs and speed up the process by removing the need of post-auditing or some kind of central authority/middleman. Dealing with your business partners in a trust-less way by just trusting to maths and protocols. The principle used here is "Don’t trust, Verify!"

**BC stands for Blockchain

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#2787

Everything is visible and can be confirmed by other computers on the net work to ensure nothing can be hidden or defrauded.

The Transactions can’t be copied or altered once confirmed and thus they are final on completion.

All transactions are visible and can seen publicly. Thus traceability is open and not reliant on any paper trail, it can not be altered.

Transactions are completed quickly and without the need for intermediates or 3rd parties and thus they are faster.

Transactions and processes are completed within the network and they are audited by other computers in the network to ensure their accuracy, there is no need for 3rd party auditing or checking making it more efficient, faster and cost effective.

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#2788

  1. Transparency: When a transaction is added to the blockchain, everybody can check it.

  2. Security: Info is stored across a network of computers instead of on a single server (decentralised) and thus makes it very difficult for hackers to compromise the transaction data.

  3. Improved traceability: Everything in the supply chain can be accurately tracked

  4. Increased efficiency and speed: there is just a single public ledger that everybody can access so it will go a lot faster

  5. Reduced cost: If you cut down the middlemen, you make more profit (so you reduce the cost)

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#2789

Transparency is a great advantage as it enables everyone in the loop to see all stages of the transaction on the B/C & negates the need for trust.
Security-wise this negates many needs for complex verification & negates fraud (chargebacks etc.)
Improved traceability. The B/C is transparent and easily verifiable.
B/C speeds up the whole supply chain & increases efficiency by cutting out unnecessary verification work.
Costs are reduced due to time saved & an increase in certainty.

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