Reading assignment: Benefits of the Blockchain technology

[Devin.Crypto]

Transparency:
Having a time-stamped block that is irreversible so once data is added onto the blockchain it can’t be altered. This is good because you can always find out who told the truth.

Security:
Mathematical protocols in place to make sure the network reaches consensus. This is good because it removes human error.

Improved traceability:
Have a better understanding of where the first transactions all the way to the last transaction on the chain be accurate and stored. Basically telling a story of data.

Increased efficiency and speed:
What can I say we all like more speed.

Reduced cost:
Advancements in technology make things cheaper overtime. As the blockchain industry grows the better the tech becomes, and the easier companies can integrate.

[Antangus]

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

1. Transparency:

The blockchain transaction ledger for public addresses is always open to viewing holding users to accountability, responsibility and to act with integrity towards a company’s growth, its community and customers.

2. Security:

Security is achieved and maintained as each new transaction is encrypted and linked to the previous transaction where the block chain makes it incorruptible relying on verification not trust.

3. Improved traceability:

For each exchange recorded an audit trail is present to trace where the goods came from preventing fraud in exchange-related businesses and also helps verify the authenticity of the traded assets and irrefutable proof of ownership.

4. Increased efficiency and speed:

Middlemen are not required to manage the many processes for fields such as payments and real estate, facilitating faster transactions by allowing P2P cross-border transfers with a digital currency.

Reduced cost:

Achieved through streamlining complex processes that are traditionally heavy in actual labour freeing up resources to be deployed elsewhere.

[Ryan_Jackson]

1.Transparency
Blockchain creates transparency through its ledger that keeps record of every transaction and it orgin. This ledger is open to the public for viewing, making it possible to verify every transaction.

2.Security
Blockchain is so secure because the network builds the blockchain together by agreeing and deciding together. They do this through math and protocol that cannot be broken. Once confirmed a block is created and added to the ledger creating a chain or blockchain which is recorded and a copy kept on each running node to back it up and verify.

3. Improved traceability
   Blockchain improves traceability because it is a incentivized network peer to peer. Meaning everyone is incentivized by the network to be honest as you can verify back to the orgin. Making impossible to cheat the system as you can verify the authenticity of the traded asset or supply through the networks ledger

4. Increased efficiency and speed
   Blockchain cuts the need for third party intermediaries in most banking situations as well as trade. As it is peer to peer that can be verified by both parties through the network. The network becomes the middleman that cant cheat or be broken.

5. Reduced Cost
   Blockchain creates reduced cost by eliminating the need for third party intermediaries or central offices to keep record as it can be stored on the blockchain.

[ddos]

I am fascinated by the conceivable possibilities of blockchains and I believe that many things will change through implementations of them.

Transparency & Improved traceability: The possibility that every user can verify things himself is an enormous advantage that few other systems have. However, when thinking about DEFI tokens, this becomes impossible for many users to do with normal means, as it again requires a lot of knowledge and time. This in turn creates opportunities to solve these problems and create new crypto products. that fine amount of traceability allows to audit legal entities in real time - this can be scary benefit.

Security: The biggest advantage I see here is the autonomy of the systems. If a smart contract is designed correctly, it can no longer be stopped - i.e. no authorities or governments can intervene. A government concept is therefore essential if something important has to be changed and all stakeholders are allowed to have a say.
These concepts are a big advantage - even if everything can be verified in the blockchain, it still needs a lot of trust in something. Crypto currently lives a lot on stories that certain people believe in.
Security is a double-edged sword - is money safer invested in cryptospace?

increased efficiency and speed: the question here is faster to what? Faster than bank transactions yes, but the networks are not yet fast enough to handle all the credit card transactions taking place. i think there is still a lot of optimization potential here. i am therefore curious what will happen with polkadot and kusama.

Reduced cost: the blockchain makes it possible to eliminate middle men and automate smart contracts. If these concepts are applied in the real world, it will save a lot of money. However, it will also cost some jobs, which will again cause many costs in individual countries.

With all these topics, however, I also see disadvantages that must not be forgotten.

[Aleksander]

Transparency: all transactions or actions history is public and open to see in public ledger. All the participants of the network share the same information. Common data can only be updated via consensus

Security: is based on decentralized chain, so data is stored everywhere in the network, not on 1 computer or server. B-ch is immutable and incorruptible. Once info is written into the chain it can not be altered or formed. It becoms a part of the code after being confirmed and closed in a block by miner.

Improved traceability: public ledger shows all the history of good exchange.

Increased efficiency and speed:, peer 2 peer data exchange without higher party control or acceptance.

Cost redustion: no middlemen involved, no physical cost involved

[CryptoJedi1]

1. Transparency: The ledger of transactions on blockchain are open to public view. Data only uploaded by consensus. You don’t have to trust anyone you can see for yourself and check if info is correct.

2. Security: Blockchain data base is spread out globally over many computers. There is no centralized database. Records of each transaction are encrypted and linked to previous transactions. Blockchain is formed by a complex string of numbers that is impossible to be altered. This incorruptible nature makes it safe from false info and hackers.

3. Improved traceability: Each time a transaction is recorded an audit trail is present. You can track the origin of product and where it has been along the transaction or exchange route. Data is easy and accessible for anyone to validate.

4. Increased efficiency and speed: Blockchain reduces the need for middlemen. So facilitates faster transactions by peer to peer transfers of digital currency.

5. Reduced cost: Blockchain removes middle men. Replaces paperwork processes. Data on blockchain is trusted.

[J-P]

Transparency

The Bitcoin transactions ledger is open for the public to view and audit.

Security

The immutable nature of a blockchain prevents alteration of the past transactions. Once a transaction is added, it’s final. Its distributed nature makes it hard to attack or corrupt since there needs to be a consensus to validate a transaction.

Improved traceability

A audit trail is present on each transaction to keep a trace of the origin of the goods.

Increaced efficiency and speed

It’s distributed nature, supported by incentives to the miners, guarantees the high availability – 24/7/365 – and efficiency of the blockchain.

Reduced cost

By enabling trustless transactions, a blockchain removes the need for a middleman, thus reducing the cost of the transaction.

[crwnchakra]

1. Transparency: Allows for a public ledger to be available globally 24/7 365. This enables people to VERIFY NOT TRUST transactions.
2. Security: Removes reliability on error-prone humans and now allows Blockchain protocol to produce an immutable auditing system.
3. Improved traceability:
   Able to verify and trace the source origin of a product. This alone prevents fraud and thievery.
4. Increased efficiency and speed:
   Completely decentralized, Blockchain removes the need for a 3rd party or middle-man. With P2P agreements and computing power, this increases automation
5. Reduced cost:
   No need to pay several companies for equipment, no need for specialists to audit or process transactions. Blockchain protocol trusts revolve around Universal principles that cannot be manipulated or duplicated.

[gary1]

Every transaction is permanent record and cannot be modified or nullified and becomes ‘public ledger’ and easily traceable and secure inside the blockchain network. Its system eliminates the need for auditors and personnel to manage it, reducing the cost.

[Michazel]

Transparency: Allows all parties to check and validate transactions. This incentivises business to operate honestly. In a taxation system this would allow members of the public to see where their tax money was actually spent, stopping corruption.

Security: In blockchain there is no central authority, there is no one place that can be attacked and no one person to be trusted. The information can not be changed as a result of the mathematics and cryptography used to build the blockchain.

Improved traceability: As each transaction is recorded we can use this information to verify the authenticity of goods and assets. i.e. to see if a diamond came from a slave driven mine. This is also useful in distribution companies for things like, proof of delivery, improving supply chain issues and again proving authenticity of products.

Increased efficiency and speed: As a payment system blockchain would increase efficiency and speed. Making a global transaction can often involve several intermediaries this is a slow and often costly exercise, blockchain removes the need for the middle parties making transactions much smoother.

Reduced cost: Blockchain can reduce cost by using all of the features listed above.

If all transactions are transparent legal disputes may never occur avoiding the costs associated. I.e… Supplier makes a delivery and this is recorded on the blockchain. The company that receive the goods then lose them in a vast warehouse and try to blame their supplier for not delivering them. Using current systems, the supplier may have lost their delivery note and had to take liability as they had no proof of delivery. If the delivery was recorded on blockchain, there would be no dispute so the supplier would not be at a loss.

We typically trust banks and payment services like PayPal to ensure our payments are safe and secure. There is a cost associated with using third parties to secure transactions between A and B. For example, a payment from the UK to Brazil may need to go through several banks in order for it to be fulfilled this often has a large cost associated with it. Using blockchain to fulfil the same payment can be quicker and a lot cheaper as we remove the middle man.

Traceability allows for improved supply chain on a global level. For example, it could be used to verify the authenticity of an alcohol, medicine or tobacco product using a unique barcode. This would help to tackle and prevent the illegal trade of such items and the effect it has on the economy.

The efficiency and speed of blockchain networks will allow for faster and cheaper payments. As they are accessible easily via the internet this will allow more people around the world to have a global financial and personal identity, helping people in corrupt or unstable countries to take ownership of property and to store their assets safely.

[leppflops]

Transparency: The transactions are available to the public and can easily be audited so businesses are forced to be honest.

Security: The transactions are encrypted and a block of transactions is linked to the previous block so it cannot be changed once it’s created. This is what makes them genuine and secure.

Improved traceability: Because the blocks of transactions are linked, they can be traced and the origin and authenticity of the goods can be verified.

Increased efficiency and speed: Because there is no middleman, processes which now take days can happen in an instant on the blockchain and there is also the potential to automate certain processes using smart contracts.

Reduced cost: If the middleman can be taken out of the equation (e.g. clearing houses, traditional banks, etc), so can the fees they charge for their services. The consumers will therefore bear lower costs when engaging in a transaction.

[kmony]

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

Transparency:
Trustless. No need for another party to verify. Public ledger available to the network.

Security:
Don’t trust. Verify. It is in digital stone.

Improved traceability:
You are able to track the beginnings of any transaction within the blockchain.

Increased efficiency and speed:
No middlemen. Peer to peer. system to system.

Reduced cost:
An expense to have a third party facilitate, run, create and verify is not needed since blockchain takes care of all this.

[tdudenhoeffer]

Transparency: don’t trust, verify. Any user can verify inputs on the blockchain network.

Security: with its decentralized features, there is no one point of target for attack. You would have to confiscate every single computer in the world.

Improved traceability: each input has to be verified, so you know the exact source for each blockchain input. It is impossible to skip a step or provide incorrect information.

Increased efficiency and speed: Blockchain networks contain high availability and run 24/7/365. Blockchains are digital, removing any need to physically deliver the information to the next party.

Reduced cost: Even though separate parties are involved from start to finish, middlemen are largely cut out, reducing both time and expense.

[r0bz078]

1. Transparency:
   Due to a public nature of blockchain all transactions are time stamped, shared and available to accessed.

2. Security:
   When it comes to security, blockchain is more secure compare to traditional database due to its decentralized nature. It is impossible to stop, breach and hack. It has been proven its system 24/7 over a decade.

3. Improved traceability:
   Blockchain made it possible to traced, tracked the origin of goods through its digital passport. Meaning all necessary information are stored in blockchain and also impossible to altered.

4. Increased efficiency and speed:
   Blockchain smart contract made business runs more efficient without having the need of third party.

5. Reduced cost:
   Using blockchain can reduced cost when it comes to transactions, overhead cost, upgrade of technology and without the need of third party/middle man.

[Doug_J]

1. Transparency:

It is on a public ledger. This allows everyone to view transaction history. This encourages more integrity in business because everyone can trace the history of their supplies and what was paid.

2. Security:

It is a very secure permanent record that cannot be altered, hacked, or falsified. Because it is a decentralized system with many people verifying transactions, it can be trustless from the standpoint of not needing to trust a middle person, bounced payments, or chargebacks. The one area of security that is not improved is if a party doesn’t deliver after getting payment. Over time this might get resolved. For example, the exchange Bisq requires users to post a security deposit in the form of Bitcoin. Then if a dispute develops, Bisq has arbitrators on the site that review who did what and have the keys available to pay one party or the other.

3. Improved traceability:

The nature of blockchain provides the perfect audit trail for verifying the sources of materials and the conditions they were kept under by using non-fungible tokens in addition to fungible tokens for payment.

4. Increased efficiency and speed:

Blockchain automates a lot of functions in software that are completed by people in the legacy financial system. This allows such functions to be completed much faster and efficiently 24 hours a day, 7 days a week, 365 days a year.

5. Reduced cost:

Blockchain has the ability to cut out the need to middle people handling funds and also the cost of multiple currency conversions. If someone receives Bitcoin as payment, they don’t have to convert it to fiat if they don’t want. They can hold the Bitcoin and use it later to buy other supplies.

[IanC]

1. Transparency:
   For a company that implements blockchain technology it allows anyone to look at the transactions of that company, and this will raise the trust in the company from the customer.
   Over time, companies that have this ability to be this transparent will lead to great trust from the end users over non-blockchain companies.

2. Security:
   As the blockchain is a decentralised database it means that once a block is added to the blockchain it cannot be manipulated or removed.
   So this means the data on the blockchain is safe and secure from any attempts to hack it, and this leads to more trust from the companies customers.

3. Improved traceability:
   As all transactions are recorded on the blockchain, and that history cannot be altered, it is possible to trace any update to a data item through the entire life of the blockchain.
   This means that for any transaction on the blockchain that is an update to an existing item on the blockchain, you can trace it back to the original transaction.
   So for some some industries where it is important to know where the ingredients came from, there is an audit trail.
   For others where you need to show ownership of a particular good, it will show proof of ownership.

4. Increased efficiency and speed:
   Regarding financial transactions, blockchain technologies will allow companies to remove the middlemen from transactions which will save money and also time.
   It also means that any payment that is made is available immediately instead of being held in the financial institutions before it is cleared.
   There is also the ability to do book keeping in real time which will speed up tax reports and need less time and input from the accountants.

5. Reduced cost:
   Using blockchain will reduce costs in a number of ways, and limited to these:
   Less people, and therefore less cost, involved in securing transactions.
   Less cost transferring money using P2P transfers.
   Less accounting costs.

[Coinonia]

Transparency:
Permanent uneditable record/ledger available for anyone to see regarding all transactions.

Security:
Transactions are approved by review of information available on entire network. Approved data is distributed on the network of computers, which would make it difficult to be hacked, since not on just one computer.

Improved traceability:
The Blockchain Ledger records the entire trail of entered information, which can all be traced even back to the origination of the data.

Increased efficiency and speed:
All transactions are automated and on one Ledger. No opportunity for human error. Fast since it’s automated.

Reduced cost:
It’s automated. No need to hire staff (middle people) to initiate and ensure transaction process from start to finish.

[Amid]

1. Transparent public ledger that everyone can trace and see without tampering with information

2.Transactions are approved through consensus and honesty is rewarded, the finality means once you have the block added, there is no way to reverse or manipulate it

3. Blockchain ledger has all trail of information which can be traced back to the original transaction and data

4.There is no need for a central gurantoor or third party to verify information and there is real time audiability

5.More automation = less staff, less cost, less cost to secure the environment and possible security costs, real time accounting allows less backlog for work.

[patricia2157]

1. The transaction ledger for public addresses is open for viewing in real time.
2. Every transaction that takes place is written into a blockchain which cannot be erased or changed and tampered with.
3. With the ledger, an audit trail is formed and transactions tracing is possible in real time.
4. It helps with efficiency and speed as it can be done peer to peer without a middleman. This saves time by saving an extra interaction position.
5. A possible savings in cost can take place as the fees of the middleman is removed with it the extra time saved, paperwork saved and possible legal fees with it as well.

[ajuliab]

1. Transparency
   Being transparent allows all transactions to be traced, meaning that that there’s no way around the system. The availability of information and data enables a completely trustless environment.
2. Security
   Since blockchain is immutable, nothing can be edited, added or removed. All data is entered correctly through consensus meaning that the blockchain only contains secure and valid information.
3. Improved traceability
   Being able to trace all transactions within a blockchain enables businesses to verify authenticity and prevent fraud. This is very useful for customers by backtracking a product’s history to verify if all the information given in the final product is accurate.
4. Increased efficiency and speed
   All transactions occur in rapid speed thanks to the network’s availability and because there’s no middleman needed. This is very helpful in today’s fast-paced environment by saving time and not having to trust or rely on a third party.
5. Reduced cost
   Blockchain enables P2P transactions meaning there’s no middleman needed. This helps reduce costs by not having a third party to audit or verify the transactions.