Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#3151

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

  1. Transparency:
    Blockchain Technology records or adds transactions over a network of nodes. Transactions are audited and verified in real time and can be viewed by anyone.

  2. Security:
    Blockchain database is immutable, due to having copies of the database in the various nodes is not prompt to failure and each transaction is confirmed by all nodes.

  3. Improved traceability:
    Because of it´s nature, past & present transactions are stored as they can´t be erased or removed or deleted.

  4. Increased efficiency and speed:
    Decentralized nature of it, no middlemen is required.

  5. Reduced cost:
    Elimination of the third party

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#3152

Blockchain technology virtually eliminates the need for trust. Many of our current financial and peer to peer systems rely on trust with a separate party to function. Merchants rely on VISA to confirm a transaction, for example.

A blockchain is a data structure housed on a decentralized system of nodes (i.e., computers) that publicly contains transactional ledgers. This chain of records, or blocks, are controlled by no single entity.

This type of digital infrastructure creates five key features:

Transparency: A blockchain displays all transactions publicly (or to all parties involved). The ledger is distributed throughout the network, meaning no one entity can manipulate the data. This transparency level allows trust to be established throughout the system and makes sure that the data they’re using is accurate.

Security: Consensus achieves security. When users enter data into the blockchain, the data is only accepted once 51% of the network automatically confirms the transaction. Once verified, users cannot edit or remove the data. Because of its decentralized nature, it is much more difficult for hackers to compromise the system than a centralized one. If one node goes down (VISA), the whole system does. If one node goes down in blockchain, the system remains.

Improved Traceability: Because the ledger is publicly visible, parties can view all transactions’ origins in the system. In other industries, this structure could trace other assets, such as product ingredients.

Increased Efficiency and Reduced Cost: This system eliminates the need for intermediaries to validate the transactions, thus reducing time and cost compared to centralized systems. Because blockchain is a system ruled by math more so than people, blockchain reduces the need for fees, and its automation increases traditional transactions’ speed.

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#3153

Transparency: All transactions are visible on the blockchain.

Security: You don’t need to worry about it because all transactions are based on consensus.

Improved traceability: You can track all transactions which leads to greater accountability.

Increased efficiency and speed: Cuts out the middleman, for example, real estate titles can be transfered easier and you don’t need to worry about liens.

Reduced cost: Since everything is online, you can do it for cheaper than hiring lawyers.

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#3154

  1. There is a public ledger that tracks all transactions.

  2. Data is redundant across a network and gives a trustless system.

  3. Data is easy to find and validate.

  4. Takes out the middle man.

  5. Removes third parties and multiple ledgers.

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#3155

1. Transparency: All transactions are stored in a public ledger available to anyone who wishes to examine it, effectively making accountability a necessity in order to do business. As there are no ways to hide transactions.
2. Security: Blockchain offers security immutability through encryption. Encryption that is based on a complex string of mathematical numbers which makes it impossible to falsify or hack transactions. Add to that its decentralized nature and what you get is a system in which parties do not need to rely on trust, but on the technology itself.
3. Improved traceability: Everything is stored and audited in the public ledger of a blockchain network. Therefore, fraud attempts are easily identified and held accountable if need be. Regardless of whether they are based on value exchange, or traded assets.
4. Increased efficiency and speed: As a blockchain network is decentralized as well as incentivized to actively engage in its upkeep, there is no waiting line for middlemen to do their work. Values as well as agreements in the form of smart contracts are easily transferred between parties.
5. Reduced cost: As there are no middlemen required in a decentralized blockchain network, nor any central authority needing to solely ensure the maintenance of the blockchain network, costs are significantly reduced.

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#3156

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

Transparency: A ‘trustless’ environment is created by blockchain as businesses will be able to view transactions on a public ledger. They will no longer have to ‘trust’ each other as information is fully transaparent & visble.

Security: Information stored on the blockchain is immutable & incorruptable. Due to the nature of blockchain being a string on complicated unhackable mathematical numbers, it is far more secure than previous databases. People will be able to operate without the need to trust as the network is completely trustless.

Improved traceability: A fully trackable, public audit trail is visible with blockchain. This audit trail can be used to prove authenticity, ownership & place or origin generating clarity & security for all parties involved in an exchange of goods or services.

Increased efficiency and speed: Blockchain effectively reduces the need for middlemen in transactions, generating greater speed within transactions. We do not encounter information transfer issues in blockchain or corrupted databases or hacks which increases uptime, efficiency & reduces the need for audit trail assessments & trouble shooting.

Reduced cost: A lowering of cost is associated with blockchain as it reduces middlemen & the number of people associated with exchanging goods, services & money. The use of smart contracts will automate certain processes. Also, the transparency & accessible information will reduce the number of legal disputes.

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#3157 
1. Transparency: being visible, companies are enhanced to play fair, to be responsible and act for the good of company and its customers.
2. Security: blockchain is decentralised what makes a job for frauders much more difficult and transactions on blockchain are immutable which means they cannot be changed or remove.
3. Improved traceability: we can track history of product (where it came from originally and all the stops it had before arriving to us). There is no more need to trust our supplier because we can verify all information.
4. Increased efficiency and speed: there is no middleman, transactions are peer to peer and there is no borders for transactions in blockchain so they are very fast.
5. Reduced cost: without middleman transactions are cheaper.
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#3158

  1. The ledger of transactions is completely public, and can be viewed by anyone with an internet connection. this allows a much higher level of accountability and scrutiny towards any business or organisation using blockchain.

  2. Transactions/data put onto the blockchain is immutable, meaning it cannot be altered, tampered or hidden. Nodes running the blockchain are also financially incentivised to do so.

  3. Blockchain possesses what is referred to as provenance which is a digital chronological record of ownership. Blockchain also creates an immutable audit trail, used to keep track of where the goods have come from.

  4. Blockchain removes the need for middlemen such as banks or money transfer companies e.g Western Union. This in turn reduces the friction that would otherwise happen in companies or centralised organisations. This in turn increases speed of transactions and movement of data.

  5. It can replace paper heavy manual processes, while removing 3rd party trust brokers.

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#3159

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

Transparency:
The blockchain technology offers complete transparency, public ledger, network of computers, transactions goes into the database, no way to remove data.
Organizations can go for a complete decentralized network, where there is no need for any centralized authority, thus improving the transparency of the entire system.

Security:
Proof-of-work is currently considered the best proven and safe consensus for securing the blockchain, you need to put your trust in cryptographic algorithms
Immutable and incorruptible

Improved traceability:

Blockchain creates an audit trail that documents the provenance of an asset at every step on its journey. Nobody can change blockchain transactions after they’ve been entered onto the blockchain.

Increased efficiency and speed:

With blockchain, transactions can be completed faster and more efficiently. Documentation can be stored on the blockchain along with transaction details, eliminating the need to exchange paper. There’s no need to reconcile multiple ledgers, so clearing and settlement can be much faster.

Reduced cost:

With the blockchain technology, you don’t really need middlemen and outsiders to close the deals. By using blockchain technology, you are not trusting the person but rather the data in the blocks.

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#3160

Transparency: No hidden transactions , easily viewable by the parties involved and all other parties that want to audit this transaction. As long as it is transparent, it creates trust

Security: When something is transparent, it also needs security. As the different computers in the network work 24/7 securing the network, it makes it secure as it does not depend on a central entity. it is completely operation even if one of the validators fail.

Improved traceability: easier to track in real time and fast verification than standard centralized databases. You can also verify the transaction anytime, anywhere in the world.

Increased efficiency and speed: It is efficient and speedy because everything is organized within the network, it is fast because many validators are validating and verifying the transactions 24/7.

Reduced cost: Instead of hiring someone or a third party entity to keep track of any transaction, these transactions are already verified and can be seen in real-time with just internet access and can be read by anyone, anywhere.

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#3161

Transparency: No shady record keeping, everything is public and irrefutable.
Security: Record keeping is automatic and connected to all the other records. No possibility of just removing one transaction from view
Increased Efficiency and Speed: Transactions and records are automated and direct - no middlemen in the way of the action.
Improved Traceability: It’s easy to trace where items in supply chains originated if their records are on the blockchain - saving us from the eternal researching those of us who care about these things have to do currently.
Reduced cost: No middlemen, no audit costs, probably a reduction of a lot of people you’d have to pay to automate the same kinds of things the blockchain can.

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#3162

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

Transparency: Blockchain is a public ledger, everyone can see everything and verify it.

Security: Blockchain is a network of computers connected in one chain and made from mathematical systems and protocols. Once something is written into blockchain, it cannot be changed or removed, so even strangers can safely deal with each other without trust.

Improved traceability: In the blockchain we are able to audit all goods from the beginning, so for example if we buy cabbage, we can trace it from the farmer up to the shop.

Increased efficiency and speed: Benefit of increased speed and efficiency is for example: more transactions can be done in shorter time

Reduced cost: The biggest benefit in terms of cost reduction is the fact, that in decentralized database, we don’t need to employ people and pay them salaries

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#3163

Transparency: The blockchain is open to everybody to see and all transaction made on it must be posted on the chain in order to be verified this in turn allows complete transparency with the customer and producer.

Security: Blockchain is made up of mathematical equations and software protocols that are unchangeable and monitored by a network of people who make decisions by general consensus. The trust relies on things that exact answers and if changed go against physics.

Improved traceability: Since Blockchain is served as an open ledger with every transaction every made on it financial processes like auditing become automatic. A transaction can easily be traced by addresses

Increased efficiency and speed: Like stated earlier blockchain allows for real time auditing it connects transactions with accounts and relieves the need of a middle man to complete this process thus making it more efficient and fast.

Reduced Cost: No longer will you need financial advisors to charge you fees to complete your financial statements as it is now replaced by a software protocol that is reliable.

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#3164

Transparency is essential for the consumers of the technology to have full trust in what is going on. Being able to track transactions is peace of mind.

Security is the biggest upside to the blockchain. Decentralization ensures that manipulation is a thing of the past.

Being able to accurately track any transaction lets a trustless exchange be possible. There are no surprises.

The peer to peer transactions, without a middle man, is a great benefit to speed and efficiency.

Without centralization, the cost of transactions are spread out and saturated, making it less costly to use. Businesses hate credit card and bank fees.

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#3165
  1. Transparency:
    Every transaction is written for everyone in the world to see and check/verify.
  2. Security:
    Because of the Network players checking on each other, and using a system of hashing that chains the blocks making them un-tamper-able, one can be sure data there is secure.
  3. Improved traceability:
    Because of the blocks being linked to each other, every transaction can be traced back to the previous block, and then to the preceding block, and even until the very first block of the whole chain.|
  4. Increased efficiency and speed:
    With no third-party involved, transactions go from point A to point B immediately. This dramatically increases efficiency and speed as it removes mediators that operate with certain frames of mind/ reference, biases, and efficiencies or lack thereof.
  5. Reduced cost: Again with no mediators in between that needs to gain from those transacting, cost is drastically reduced.
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#3166

1: Increased transparency incentivises participants to behave in accordance with network rules and provides accountability.

2: Incentive structures ensure network security, which, in turn, is immutable/incorruptible, resistant to censorship, free from a single point of failure and trustless.

3: The immutable nature of blockchains is perfect for timestamping and supply chain management, proof of and/or chain of ownership, public records and auditing.

4: Blockchains reduce friction by allowing trustless interactions and removing middlemen.

5: With reduced friction comes reduced costs for businesses and in turn the end consumer.

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#3167

  • In blockchain technology, any data that is recorded inside a blockchain can be access by anybody.

  • Blockchain does not have a data center, In order for someone to manipulate data, they need to hack every single computer that is connected to the blockchain.

  • Every data that is recorded in a blockchain is easily traceable/tracked.

  • Blockchain eliminates the third party and eliminates manual labor.

  • The money that the producer saves from eliminating the third parties can be passed to the consumers.

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#3168

Transparency:
It provides transparency through an open ledger with all parties involved. Companies are now forced to maintain their integrity.
Security:
The blockchain is based on Math and protocol that can’t be altered. There is no need for trust the respective parties.
Improved traceability:
The blockchain provides instant and constant auditing. It happens
Increased efficiency and speed:
It reduces the middle man and allows transactions to be verified on the global network instantly.
Reduced cost:
There is no need of a middle man to verify transactions. B2B or P2P or B2P can make transactions without paying for the consent of a third party.

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#3169

Transparency is important in any transactions that all humanity can trust. So with the invention of blockchain all parties can trust because they can see what happens.

Secure transactions of goods and services are important to society. Without security of value we cannot proceed in a polite society.

Traceability is important for many things in our world like knowing where our food comes from or where our taxes go.

Efficiency of the blockchain cuts out the middle men in important transactions and lets it be a peer to peer system. Speed of the blockchain is because of the internet and all the networks connected.

When you combine all these things its drastically cuts costs down for all users.

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#3170
  1. Transparency: The blockchain is transparent because its complete dataset is available for public viewing.
  2. Security: The blockchain is secure for several reasons. One is that it is decentralized, meaning no one entity can manipulate its truth. Another is its finality, meaning that old entries cannot be changed or reversed. One more is that the miners are constantly upholding the network and its security because they are incentivized by money to do so.
  3. Improved traceability: Every satoshi ever transacted on the blockchain is traceable to its origin. The same can go for other data kept on the blockchain, such as materials in a supply chain.
  4. Increased efficiency and speed: There are no intermediaries like banks or payment processors between transactors on the blockchain. Also, due to its constant availability, it can be used at any time.
  5. Reduced cost: Money is saved on fees typically paid to payment processors. Also, it can reduce costs on accounting, auditing, and supply chain tracking, among other things.
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