Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#3010

Top 5 Blockchain benefits.

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

  1. Transparency:
    With transparency, everybody has the same documents and it will always be possible to trace the record to make sure that a transaction is correct.

  2. Security:
    The security is much higher, on the blockchain network, where each modification needs to be approved by majority of amount of ledgers/computers.
    Compared to traditional environment where there is only one server/computer storing the info/data, and the owner is a dictator of those info/data. The owner could do whatever he wants with it and would also be more vulnerability against attacks.

  3. Improved traceability:
    With Blockchain it would always be possible to trace item/product back to its origin.
    This will help to prevent fraud, like when a company says the item/product is from a different place than it is really from, like happens in traditional system.

  4. Increased efficiency and speed: Blockchain gets rid of all these intermediaries and third parties that slowdown the transaction process that we are used to know in traditional system. That can also be very clunky if human error will be occurred during the process (and IF that error would ever be discovered).
    Blockchain will therefor make transactions much faster and efficient, when everybody has the same information and everybody can “trust” each other in form of verification.

  5. Reduced cost:
    Blockchain reduce the cost by removing all these 3rd parities and middleman in traditional system, that are each taking fees for their approval on trade documentation.

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#3011

Transparency: Decentralized open source network who share the same documentation all the time and need consensus to validate the transaction.

Security: Every transaction is linked to the previous transaction and the whole network share the same information.

Improved traceability: The transactions recorded on the blockchain leave a trail (each block contain a unique information from the block before) that can be traceable backwards.

Increased efficiency and speed: No third party needed and access to share information makes transaction faster and trustworthy.

Reduced cost: Don´t need to have a third trust party.

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#3012
  1. Transparency
    The ledger is distributed and public, so all transactions are visible to everyone.
  2. Security
    a. Transactions have to be approved by consensus, therefore one cannot just lie about a transaction.
    b. the Cryptographic nature of blockchain makes it almost impossible to erase or modify past entries.
    c. being distributed prevents destructions as there are tons of “backups”.
  3. Improved traceability
    As everything is recorded on the ledger, it is easy to check traces in case of need and harder to commit fraud.
  4. Increased efficiency and speed
    As transactions are not processed by a single centralized entity, the job becomes much faster and its automatization can keep it running unsupervised.
  5. Reduced cost
    Automatization reduces cost. The lack of need for intermediaries or 3rd parties, authorization or validation, reduces the cost of all these processes.
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#3013

Transparency is necessary so you can see what all is happening with every aspect of a transaction. With immutability, all transactions are locked in forever and can’t be altered, giving 100% transparency to the process of moving information.

Security in blockchain is superior because it is not stored in a central location, but in many locations, therefore hacking it becomes significantly more difficult.

Traceability is great to show all the stops along the way and follow a product, coin, etc. and see where it’s really been.

Efficiency and speed are much greater in blockchain because unlike banks that you might use to send money from one country to another, and them taking days to figure out fees, and accounts, this can be done almost instantly and the transaction is posted to the immutable chain.

Aside from not having to pay fees for moving money, you also don’t have to pay for expensive storage in a central location. Also, the review process is non-existent because the blockchain does all of the review for you, without you having to review all the contracts and info on your own.

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#3014
  1. All parties will have the same ledger updated only through Consensus creating high transparency.
  2. Transactions must be approved then encrypted and linked to the last transaction.
  3. With blockchain the goods can be traced to the origin through each stop along the blockchain.
  4. When you eliminate the papier heavy process it becomes automated. All record keeping is held on one ledger for all parties.
  5. Reducing cost is a priority. With Blockchain you reduce the need for third parties and outside audits. All parties will have access to the same ledger.
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#3015

Thanks for the likes is encouraging today. :wink:

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#3016

Transparancy: All Network participants share the same documentation
Security: Info is stored on a network of computers vs a central system, plus all transactions must be agreed upon within the network, and the nodes are incentivized to keep ledger correct
Traceability: All transaction data is stored on one ledger avail to all network participants
efficency. one single ledger that all data can be verified by all participants eliminates eror and need for audit.
Reduced Cost: eliminates third party

2 Likes
#3017

You’re welcome! :wink:

#3018

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

Transparency:transparency is a benefit of using blockchain technology because transparency is improved.

Security: security is a benefit of using blockchain technology because security is improved

Improved traceability: improved traceability is a benefit of using blockchain technology because traceability is improved

Increased efficiency and speed: increased efficiency and speed are both benefits of using blockchain technology because efficiency and speed are increased.

Reduced cost: reduced cost is a benefit of using blockchain technology because it saves money

1 Like
#3019

Transparency: Everyone can see where the ledger and all the approved transactions, which helps the whole system get rid of the need for “trust”

Security: All nodes needing consensus to verify a transaction leads to the system being more robust as well

Improved Traceability: For industries that involve a long train of logistics, this can help make sure the items came from where the vendors said they came from.

Increased efficiency and speed: eliminate middle men

Reduced Cost: that comes with reducing middle men and having

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#3020

Transparency: Onchain analysis can be done by anyone that downloads the blockchain and uses the ledger. This leads to a trustless system just verification

Security: The ability have transactions be irreversible, verified by multiple online participants

Improved traceability: The ledger cannot be modified, therefore all transactions can be tracked from start to end user

Increased efficiency and speed: Less time means less cost, verification can be done quickly by nodes feeding the network

Reduced cost: no middleman reduces the additional costs of doing transactions

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#3021
  1. All permissioned users have access to the shared ledger
  2. Transactions are verified by a number of independent users, cryptographically linked and stored on a network of computers.
  3. Exchanges of good are immutably stored and accessible making origin tracing possible.
  4. Blockchain streamlines and automates transaction recording. Ledger is singular and digital -> No reconciliation required. Record is public->clearing and settling is faster.
  5. Less third parties required to guarantee record/transaction, etc.
1 Like
#3022

Transparency: All transactions information is public and non-deletable, one data is added it can’t be removed (immutability). Information is opened for everyone. Each transaction truth is attached to the last transaction, so it can’t be modified because all information is linked.

Security: In blockchain the information is validated and held by a collective party, but the nodes are different, so it makes it more difficult to track or eventually hack. In the case of a bank all information is held in one place, so you need to hack only that one.

Improved traceability: Information from the transaction can be tracked trough the whole supply chain and its public and non-deletable.

Increased efficiency and speed: Since there are no third parties involved you don’t need to wait for them to validate your transactions, you just trust the network.

Reduced cost: No need to audit, all information is public and non-deletable, you just need to check it to validate. Everyone can access.

2 Likes
#3023

Transparency ensures both parties agree on what is being transacted.
Security ensures that the transaction is enacted exactly as agreed.
Improved traceability engenders a quality of delivery to expectations.
Increased efficiency and speed can best be seen when applied to the direct transfer of value around the world, bypassing the current value draining middlemen.
Reduced cost by possibly eliminating transactional conversions between businesses but the blockchain introduces great inefficiency through mining and may in all possibility increase costs?

2 Likes
#3024

The costs are payed by the miners that get compensated by block rewards. :slight_smile:

2 Likes
#3025

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

Transparency:
With Blockchain ledgers everything is basically open sourced and anyone can view whatever transactions they want. This includes historical and present transactions.

Security:
With a decentralized network there’s a lower chance for bad actors to manipulate or delete data within a blockchain with sufficient decentralization.

Improved traceability:
Once blocks are created on the blockchain they are not destroyed but rather archived and cannot be manipulated or deleted. In this aspect you can trace the origins of the first transaction all the way through to current transactions.

Increased efficiency and speed:
Because blockchains create incentives for miners to create new blocks on the blockchain, this high number of validators can process these transactions. Even if a high number of validators go offline, if the network is decentralized sufficiently then the other miners will still be able to verify transactions

Reduced cost:
Because all of the benefits listed above:
Transparency/Traceability - No need for long and costly audits
Security - With sufficient decentralization, then you will not need to rely on traditional security measures which may be costly
Efficiency/Speed - Some transactions can be time sensitive and in the examples where blockchain technology is used in oracle type projects, these chain links need to be communicated very quickly otherwise the data is not useful (such as price data from outside sources)

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#3026

Transparency: Data can only be updated via consensus and stored as Permanent records on publicly shared ledger with decentralized ownership.

Security: Decentralized network trust based on math with clear rules. No interference of any “middleman”

Improved traceability: Data is easy to validate and all records are public so that the origin and history of all records in the ledger is traceable.

Increased efficiency and speed: Less administration and human error and still easy to validate data on the ledger.

Reduced cost: Less administration, important records in only one ledger, no dependencies to any “middleman”.

2 Likes
#3027

Transparency:
Blockchain provides a list of transactions along the ledger which are publicly available for viewing, resulting in greater accountability.

Security:
The fact that the data is spread across the network as opposed to being held in a centralised database means that the possibility of loss of data due to hacking is virtually impossible.

Improved traceability:
As all the information regarding a transaction is recorded on the blockchain, the authenticity of each transaction is unquestionable. There is no chance of corruption or fraud as the data is available and completely traceable through the network.

Increased efficiency and speed:
Blockchain removed the need for a “middle man”, facilitating direct contact between two parties (peer-to-peer) and thus streamlining the processes.

Reduced cost:
Due to the fact that there are no middle men required in transactions, the cost to both parties is lower as the middle man would usually take some money for facilitating the transaction.

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#3028

Transparency:
Everyone can see the information because it’s a digital ledger. You can’t alter a transaction because you would have to change the entire network.

Security:
Since the system works by consensus from the previous transaction, it can’t be altered. It’s immutable and incorruptible.

Improved traceability:
Each time an exchange for goods is recorded, there is an audit trail present to trace where the goods came from. Businesses can use this to authenticate goods and validate proof of authenticity.

Increased efficiency and speed:
It removes the middleman for payments and real estates. Payments are person-to-person cross-border transfers with digital currencies. Property management uses ownership records and smart contracts that would automate tenant-landlord agreements.

Reduced cost:
Businesses don’t have to completely start over with their business practices. They can integrate blockchain technologies without disrupting day-to-day operations.

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#3029
  1. Transparency: The blockchain ledger is available to the public to view.
  2. Security: Each transaction is encrypted and new block is added onto the old one for that particular amount.
  3. Improved traceability: The ledger can’t be deleted, all transactions are forever cemented in stone.
  4. Increased efficiency and speed: No need to verify payments and pending payments waiting days to be taken out of your account.
  5. Reduced cost: With no middle men needed there is no need to pay these services.
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