Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#3251

Explain with your own words, why these are the benefits of using a blockchain.
Transparency:
Security:
Improved traceability:
Increased efficiency and speed:
Reduced cost:

From https://forum.ivanontech.com/t/reading-assignment-benefits-of-the-blockchain-technology/8421

Transparency -
Blockchain offers transparency as it is a public ledger and anyone is able to view the database. Its immutability offers assurance that no relevant information is being hidden.

Security -
Blockchain offers security as it is a decentralized network and has multiple points of failures where as a centralized network has a single point of failure. It is very hard to hack blockchain as youā€™d have to hack 51% of the participants.

Improved traceability -
Blockchain offers improved traceability as every transaction leaves a trail in the blockchain and a source of the transaction or balance can be traced back to its origins very easily.

Increased efficiency and speed -
Blockchain offers increased efficiency and speed by removing the need for a middle person. It removes a third party between two parties that are doing business by removing the need for trust.

Reduced cost -
Blockchain offers reduced cost because it removes the need for a third party human involvement as the network is automated. Transaction cost might be lower in some cases compared to legacy technologies.

Notes
Q1
Everyone has the same ledger and access.
Q2
Network needs to reach consensus first.
Q5
There cannot be fraud due to finality so human labor costs are saved. There is no special equipment needed.

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#3252

Transparency: everybody can see what has been transacted

Security: once transacted it canā€™t be changed or altered

Improved traceability: everybody can see how much and where it went

Increased efficiency and speed: easier to transact around the world and faster than traditinal money sending

Reduced cost: cheaper to send than most traditional ways

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#3253

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

Transparency: The blockchain creates a ledger that shows all transactions and ownership from creation to the present. Thus, all activity on the blockchain is transparent and viewable.

Security: The above mentioned ledger of activity on the chain is encrypted, immutable and incorruptible. Thus, nobody can hack the blockchain and/or counterfeit assets.

Improved traceability: Because the blockchain is a ledger of all ownership and activity, it is easy to trace where and when ownership was transferred. This can be a huge benefit for supply chains or proof of ownership.

Increased efficiency and speed: Certain industries would be massively sped up and more efficient with blockchain. A trustless blockchain loan or mortgage would negate the need for traditional banks with their endless paperwork, brick and mortar branches, loan officers, mortgage brokers and middlemen. Getting rid of the dross of traditional finance would make loans cheaper and faster. Bookkeeping, accounting and auditing would be much easier on blockchain because all information could be accounted in real time without the possibility of reversed transactions and other accounting hang ups. Lastly, a traditional wire transfer takes days whereas a speedy blockchain transaction takes minutesā€“sometimes seconds!

Reduced cost: Reduced cost has been mentioned above in the answer for efficiency. But to restate, imagine how much a mortgage business could save if they didnā€™t need loan officers, bank branches, a legal team, endless paperwork to verify and file, and they didnā€™t need accountants because their books were created in real time with 100% accuracy? And this hypothetical company wouldnā€™t need to spend on cybersecurity because blockchains are so secure. All the aforementioned details regarding a blockchain-based mortgage business are the aim of Defi blockchains: to revolutionize the banking industry and bring efficiencies in time and cost so that transaction fees and mortgage rates are lower than ever.

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#3254

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

Transparency:
Information on the blockchain can be accessed at any time by any party interested.

Security:
No single point of failure. Data canā€™t be changed without consensus.

Improved traceability:
Every piece of data on the blockchain can be traced to its origin.

Increased efficiency and speed:
Direct and quick value transfer on the international scale

Reduced cost:
No need for third parties to check the authenticity of a financial TX or any other service.
Verification by the protocol.

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#3255

Transparency: Everyone has to be honest with everyone within the network in order to achieve a greater good. For every participant wanting to grow, they have to be easily checked, and that give extra responsibility in a positive way.

Security: Blockchain stores all the info that has ever happened, and as it is a network there is no a middle man involved to make any changes, once transaction in blockchain happened its done, it saved in blockchain, you can change it, reverse it or do anything with it it as also verified by other computers in the chain. For this reason traceability is very easy when it comes to see where the transaction came from and removers the trust factor in doing business.

Improved traceability: As soon as any transaction happens it is saved in the ledger, it also gives us a chance to see where it came from and what is happening with the goods in the supply chain also an authenticity of them and ownership when trading.

Increased efficiency and speed: Efficiency comes from one amazing feature that Blockchain provides and it also comes with other benefits. So this feature is that it puts two things in one and that is auditing+transaction comes as one, also it leaves a trail of previous transactions and by that, we can see the whole chain of transactions, if that would be the case, immediately.
You donā€™t need a third party to come and do this, you donā€™t need to save all the receipts or any other paperwork to store. Any auditing check can be done here and now. Also every transaction happens immediately and it is possible to do it 24/7/365, you donā€™t need a bank to be open if you need to do business, you can do bussininess with people that you donā€™t know, blockchain removes trust bu verifying all the transaction and network players. So you donā€™t need run extra checks.

Reduced costs: Blockchain in general removes so many third party players that saves you a lot of money, just imagine yourself how much costs to keep running a auditing department, or if you wanna do any checks to do a business with someone you donā€™t know but you wanna do business. Also if everyone would be using the same network that follows same protocol then we donā€™t need cetralized data bases, so on such network every player of the network is talking to each other without third party, where now all central data bases are separate and they donā€™t communicate to each other. So if you wanna verify something its extra time to do that, and we all now that time is money.

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#3256

Transparency: Blockchain makes all transaction visible to all parties in real time. The transactions are shared on a ledger dispersed to across a vast network meanig there is no central control or sourse of the data.

Security: The idea of the blockchain is to have 1 global protocol which is trustless and verified and no one figure can remove data. No need to trust in the third party , but you trust in the basics laws of math and the protocol

Improved traceability:You can trace all transaction data on the blockchain in real time.

Increased efficiency and speed: Blockchain reduces the need for intermediaries in any aspect. This in turn improving efficiency and speed . One public ledger also increases speed and efficiency because there is no need to compare multiple ledgers for accuracy.

Reduced cost: There is no need for third parties or intermediaries involved which means less money for services and taxes.

I would appreciate any corrections or additions .

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#3257

Transparency: the transaction ledger is open for everyone in the network to view

Security: each new transaction in the ledger is encrypted and link to the previous one. It is confirmed by the network through consensus and it is impossible to change the transaction based on math and protocol

Improved traceability: itā€™s easier to trace the origin of the transactions in the supply chain, so the whole logistical proces of the product can be monitored for quality check

Increased efficiency and speed: less middlemen are necessary because of the peer to peer transaction. Itā€™s basically a short cut in service

Reduced cost: more effiency in the supply chain leads to reduced costs for customer and suppliers. Less middlemen, leaner organisation, less bureaucracy etcā€¦
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#3258

Transparency: All the transactions that ever took place can be verified at any moment (transactions cannot be removed or altered once they are in the ledger).

Security: Blockchain is secure because it is immutable and incorruptible. In order to change a data in your favor you need consensus (an accord of the majority of the network nodes) which is almost impossible to achieve.

Improved traceability: Each time transaction is recorded in the ledger there will be an audit trail. In this way it is easy to verify the authenticity of the assets or proof of ownership.

Increased efficiency and speed: Blockchain provides peer to peer transfers cross-border, no 3rd party needed in the process.

Reduced cost: Because there is no 3rd party or middleman involved.

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#3259

One of the benefits of using blockchains for businesses is transparency. Transparency is beneficial because not only does it allow for accountability but also reduces objections to the sale of a product. Not only does it benefit new customers but existing customers also, further increasing cross selling. Increasing the product sold per client increases revenue and increasing customer retention and satisfaction.

Blockchains also increase security. A network of computers confirm a block on a ledger which forms a chain. Each chain is a succession of mathematical codes. The succession of codes can not be manipulated nor removed. Therefore the blockchain provides province and transparency.

A blockchain also provides improved tracability. For example I was a notated lease broker. A notated lease is where u finance a vehicle and package running costs tax free. However, it was not transparency nor tracable how the total amount received each payroll was distributed. Eg what portion were fees, what portion was interest for the financier, what portion was brakerage for my organisation, if there were hidden insurance products and what portion was vehicle running costs. Traceability would provide trus and security and make companies accountable.

Blockchains streamline and speed up current complicated processes by using the global network, where multiple companies are able to communicate with each other on a decentralised platform.

It is evident that blockchains increase efficiency, speed, security and transparency. Time equals money. Transparency equals customer satisfaction and sales and security reduces vulnerability. All of these factors combined reduce cost and benefits all parties involved.

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#3260

Transparency: Transactions aviable to check on the Internet.

Security: Consensus based on miners and POW seems very secure (until quantum computers arrive :wink:

Improved traceability: Its possible to check supply chain with blockchain tech.

Increased efficiency and speed: P2P system is quite fast.

Reduced cost: No 3rd party to cut some money from transactions (they decide how much and deal with it). Fee freedom in blockchain technology is better.

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#3261

Transparency: Transactions are accessible to anyone.

Security: They are based on complicated mathematical operations, impossible to alter, they are encrypted, and linked to each other ā€¦

Improved traceability: Every transaction or movement leaves a trace on the blockchain, cannot be canceled, and is always accessible to everyone.

Increased efficiency and speed: The exchange is direct, no intermediaries are needed, so it is faster, and safer.

Reduced cost: no intermediaries, less costs.

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#3262

Transparency: There is a ledger that is public with every transaction ever recorded.

Security: Multiple nodes in the network need to achieve consensus before a new transaction is added on the blockchain.

Improved traceability: Having the public ledger you can trace information back to its inception.

Increased efficiency and speed: no middlemen thus faster transactions and efficiency.

Reduced cost: Fewer costs as no middlemen in the system.

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#3263

1. Transparency: each transaction can be seen by everyone. Public ledger.
2. Security: each transaction is encrypted. The ledger is immutable (info cannot be erased or modify) and decentralized (no authority controls it)
3. Improved traceability: a good history is recorded on a ledger. You can track its provenance. You can verify its authenticity.
4. Increased efficiency and speed: you can use a digital currency to make P2P transactions wherever in the world at an unprecedent speed (ex: no SEPA required)
5. Reduced cost: a transaction can be done without a fee or payment by a middlemen.

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#3264

transparency : it means that everyone can see what is going on and track what they want
security : due to diverse verification and consensus no one can cheat in the system
improved traceability: it show that it is far more easy to se the flow of money and information on the blockchain and track that.
increase efficiency and speed : when everybody use the same infrastructure standard the need for bridges disappear and it increases the efficiency and speed.
reduced cost : no one works for free and when you use a bridge or intermediary you should pay the for their services, by using the same standard and eliminate the intermediaries, cost is reduced.

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#3265

Transparency: blockchain transaction ledger are open to the public view

Security: trustless transactions are completed through a sophisticated mathematical encryption linked to the previous transaction and recorded to the public ledger through a network of computers forming a block and chained together making the transaction immutable and difficult to hack

Improved traceability: transactions are recorded on the public ledger in the network, and audit supply chains in real time

Increased efficiency and speed: the block chain allows for cross border transactions between to parties using digital currency

Reduced cost :eliminates the need for a third party interloper by replacing them with smart contracts.

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#3266
  1. Transparency:

Blockchain transcription ledgers are open for viewing. Because of this, it adds a an unprecedented layer of accountability, as everyone is responsible for their sector of the business.

  1. Security:

Much more secure than any other record keeping systems out there. Every transaction in the chain is encrypted and linked to the previous transaction. These transactions stay on the blockchain forever. Due to the nature of blockchain it is virtually impossible to heck making it extremely secure.

  1. Improved traceability:

An audit trail on the blockchain allows for traceability from start to finish. In the example of the exchange of goods, you can trace everything from the materials that the goods were made from and where those materials came from, to the making of the goods and the type oif factory they were made in, right through to payment and delivery of the goods to the end a user.

  1. Increased efficiency and speed:

Faster global payments can be made through a digital global payment system. Due to the blockchain being decentralised, this cuts out the middle men in lots of different industries including payments and real estate. In the example of real estate all of the documents for a particular property can be kept on the blockchain so the searches will all be there.

  1. Reduced cost:

Costs are reduced as time is saved due to information being readily available, middle men such as accountants and auditors can be removed, saving costs here as well.

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#3267

Transparency: you no longer have to take someoneā€™s word for something, it can be verified, by anyone. This improves accountability in relationships and partnerships.

Security: transactions are encrypted and linked to the previous transaction, making them immutable and verifiable. To be entered into the ledger, the majority of the nodes must agree that it is a valid transaction.

Improved traceability: because the blocks are immutable and entered into a ledger, transactions are traceable from origin to destination and authenticity can be verified.

Increased efficiency and speed: With many nodes providing high availability of the system, there is no dependency on any individual node allowing for 100% uptime for processing transactions and no intermediary is needed which could hold up or even alter the transaction.

Reduced cost: ā€œrecord keepingā€ is automatic and auditable, you save man hours and time otherwise lost in normal business transactions. eliminating intermediaries also allows the two parties to earn/save more than they would if they would have used an intermediary.

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#3268

The benefits of using a blockchain :

  • Transparency : The information contained within each block of the chain is public and auditable at any time. For this reason, accountability becomes critical since it is verifiable by anyone.

  • Security : Because the blockchainā€™s database (ledger) is immutable and decentralized, it is highly secure. Attempts at hacking or corrupting the data will be easily spotted since every entity running the network has the same copy of the ledger. Every block is linked to the previous and the next, meaning that altering one block would then alter every other block and be identified easily.

  • Improved traceability : In the example of a supply chain, traceability is improved from the manufacturer to the distributor thanks to the transparency and security of the blockchain. Information added to the blockchain is publicly accessible and enables verification of an assetā€™s properties.

  • Increased efficiency and speed : A blockchain network being run 24/7, with no down time, increases efficiency and speed via high availability. The information contained in the blockchain has been verified and validated by the network, removing the need for trust from the equation. This trustlessness allows for time and resources to be saved significantly.

  • Reduced cost : There are many ways in which blockchain can reduce costs. One of them is the removal of the need for middlemen. Payments can be processed from Peer-to-Peer (P2P), eliminating the costly fees that middlemen demand.
    Moreover, costs associated with development and integration of new technologies are fractioned thanks to blockchainā€™s open-source technology.

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#3269

Transparency - The idea that the transaction ledger is on the network and that anyone can independently verify transactions.

Security: Transactions are more secure because before an entry is approved, multiple computer must ā€œagreeā€ that the transaction is valid. Improved security is also attained by encrypting the data. Security is maintained by not allowing the transactions to be modified (immutability) once the transactions are recorded.

Inmproved traceability - Here we have the idea of Provenance in that all transactions can be traced to the point of origin.

Increase efficiency and speed: Increased efficiency because middlemen are removed. Since transaction are P2P, this increases the speed.

Reduced cost: Since middllemen are eliminated, the associated costs of middlemen are also eliminated.

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#3270

1.Blockchain is more transparent because all data and information is on a public ledger for everyone to see. none of the information can be tampered with in any way.
2. Not only is blockchain secure because of the public ledger. it relies on math and protocol instead of an organization or entity that can tamper with data or information.
3. Blockchain creates provenance to make sure the everything is run smoothly. With provenance, we can start from the beginning, by tracking supplies and assets sent to different organizations.
4. Efficiency is key in blockchain because all difficult tasks that centralized organizations used, have now become easier due to cutting the middle man out and relying on protocol.
5.Costs are reduced because of math and protocol that the blockchain uses, by making transactions faster and more efficient to use.

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