Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#3491

TRANSPARENCY: Because there is a sort of redistribution of power back to the human collective, instead of just the few secretive Illuminated! I see the blockchain the same as I see as America as it was intended by the founders. Decentralized, openly informed and deriving its power from the consensus of nodes/people! If implemented properly this will in turn provide open transparency and information, which effectively returns power and a freedom back citizens, while reducing the greed of centralized Silos by holding all transactions up to the open ledger increasing transparency and inevitably accountability!

SECURITY: The security of the blockchain is exponentially greater than traditional record keeping. As with satoshi’s genesis block, the distributed ledger is immutable because every time a record is generated a cryptographic key/hash is generated with it. When a second record is generated the information and key from the first record is used to generate the secound key. This creates dependency on the first record and when the third record is generated the same thing happens again to each record is interdependent with linking informationin every key to every record from genesis. Kind of like DNA linking us to our ancestry, This makes it so that we all can allways look back through the previous records/blocks and find out the truth instead of trusting someones word. On top of all that security, the ledger is distributed across the entire network so that there is no central authority or custodian over the ledger. It is completely open and distributed for all to verify!

TRACEABILITY: As with security each block created is dependent on the previous block. It is open and can be reviewed all the way back to the Genesis block, just like Satoshi’s infamous time stamp (Chancellor Alistair Darling on brink of second bailout for banks) encoded into the Bitcoin genesis block eluding to why bitcoin was created. This is Unlike centralized Information that conveniently gets lost, Like emails Or added votes! Both somehow now untraceable,unprovable and mutable!

EFFICIENCY AND SPEED: When it comes to speed and efficiency there are many projects that are trying to tackle the scalability problems We see with Increased traffic on the bitcoin and etherium networks. In my opinion efficiency and speed are two things, the bitcoin network and Blockchain in general slightly struggle with, However as we see institutional investors Start fomoing in and mass adoption takes hold. I believe we will see much more innovation on already established projects, Like AMP and other projects trying to solve the on and off ramp payment solutions! However we must be careful to ensure our due diligence and ensure that “we the people” do not throw up our hands and give our Blockchain back to Technogarch centralization through institutional investors. This is a very real danger Because we are so excited about mass adoption, we can lose sight of our true goal of decentralization (of the entire global monitary system) because of our Hyped emotion because mass adoption.

REDUCED COST: It ultimately reduces cost due to removal of the middleman. No more 9 step process for payment remittance. No centralized bankers borrowing our money with no interest while at the same time charging us for spending it. I feel though if we’re not careful especially with bitcoin and Ethereum It can get very expensive. As the halving Happens every four years with bitcoin. It seems there is always a spike with mining fees associated with the having and traffic. In 2140 bitcoin Rewards end and we will be faced with a bitcoin miner fee dilemma. It will be hardly profitable For miners to continue on without raising fees exponentially to match reward losses over time! Don’t get me wrong. I can totally see tons of innovation between now and 2140, to help reduce the cost Associated with mining blocks. Like peer to peer mining on cell phones everybody shares the hash kind of like the BEE project Which doesn’t use that much power and everybody With a cell phone can mine! To me that is promising But we must keep miner fees to a minimum. No on On the Ethereum Blockchain For instance Gas fees are extreme depending on traffic. And this doesn’t even take into account the amount of environmental impact with electricity and so forth. Block chain is it it’s Infancy! It is the future and it’s going to be up to us to lay the building blocks for that future. We must distribute the mining capabilities to all I believe this is an Achilles’ heel when it comes to centralization and market manipulation as we see happening with F2 pool dumping their mining stash during a bull market ultimately suppressing the bitcoin price. However I believe we can tackle these problems with dapp’s but it’s going to be completely dependent on innovation And free distribution of technology. Decentralization is a massive undertaking because central banks love their power and they use the greed of individuals to gain that power. They will try to stifle any grass Roots movement with this weapon and once they get their tentacles in its hard to cut them off. This movement Has to be about more than just making money though that is good thing, but I believe we must keep in mind that, the love of money is the root of all kinds of evil. I love what cryptocurrency stands for but if we’re not diligent To the cause of decentralization the movement will be taken from us by greed. If we can launch these projects link arms in unity against the global elites we will effectively allow math to take over Our global finances! Math isn’t emotional nor is it insecure. It is empirical and quantifiable, it does not need to tell lies because it does not have an agenda. Unfortunately humans do have all these failings as I have seen it up close and personal at war. Sorry if my answers are critical but I am a realist some call me a pessimist but I believe telling the truth while simultaneously looking at myself in the mirror. I fully believe in this technology and I love the innovation and core ideology. Crypto and Blockchain is the only fair way forward for the world we can do anything united for a cause bigger than ourselves!

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#3492

Benefits of using a blockchain

-Transparency: because it is being recorded in a network once the transaction happens a ledger is created and verified. This is kept on the network through the complicated math work.

-Security: the technology is designed to be tamper-free. The record is kept in a decentralized manner making it impossible to alter the already created ledger.

-Improved Traceability: every transaction is recorded in a code which can be traced to previous ledger so forth and so on. Because all the transaction has been verified and recorded on a decentralized network from the start, the following transaction as a result can be easily traced without fault.

-Increased efficiency and speed: the technology omits the so called “middle-man” which immediately omits steps in the middle allowing the transaction to be processed quicker and more efficient.

-Reduced Cost: as we reduce the middle man we also reduce the fees begin passed on from various parties like audit, banks or clearing houses.

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#3493

Transparency: It makes parties involved accountable for their actions

Security: There is no need to trust other individuals or organizations

Improved Traceability: Because everything is resisted in the ledger and public, interactions can be traced to an origin

Efficiency and Speed: Because there is no third party or middle man involved, time is saved

Reduced cost: Just like efficiency and speed, the lack of a middle man helps save costs involved in transactions

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#3494
  1. Transparency: The benefits from the transparency within blockchains increase validation, proof of work, and immutability.
  2. Security: Security is increased and beneficial due in part to incentives for honesty. Thus, increased confidence and immutability; regarding the consensus and digital provenances of supply chains and/ or sensitive data.
  3. Improved traceability: The networked computers are databases of which are decentralized. The public ledgers are more efficient; compared with centralized authorities. Proof of work and proof of stake add value to traceability.
  4. Increased efficiency and speed: Global-level security of the supply chains and Information Technology infrastructures.
  5. Reduced cost: Blockchains as a Service (BaaS) reduce cost and are sustainable resources for globally trusted and publicly accessible digital ledgers.
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#3495

Transparency - it’s a transaction ledger for public addresses. And it’s open to public viewing. It adds an unprecedented layer of accountability, holding each business responsible to act with integrity .

Security - Each new transaction is encrypted and linked to the previous transaction through a network of computers coming together to confirm a ‘block’. Each block is then added to a ledger. This immutable and incorruptible nature of blockchain makes it safe from falsified information and hacks. It’s decentralized nature also gives it a unique quality of being ‘trustless’ – meaning that parties do not need trust to transact safely.

Improved Traceability - The blockchain ledger records, in real time, each transaction, and complies an audit trail. Thus improving security and prevention fraud. It verifies the authenticity of the traded assets and tracks the supply chain.

Increased Efficiency and Speed – Transactions can be made without the need for the Banking SWIFT system. Peer to peer transactions can be made within this trust less system.

Reduced Cost - Blockchain removes the need for third party verification; thus eliminating many professional fees and automates record keeping.

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#3496

  1. One of the wonders of blockchain tech is its public ledger which is open to viewing creating an undeniable level of accountability, trust, and insurance that the blockchain is operating as it needs to .

  2. Each and every transaction on the blockchain is encrypted and linked to the most previous transaction creating a block that can be seen by anyone on the network. The style used by blockchain tech makes it impossible for immutable incorruptible information to scurry pass the network.

  3. Improved traceability is a major draw to the blockchain, an audit trail allows for the supply chain to be tracked from the manufacturer to the distributer to provide an irrefutable proof of ownership.

  4. Due to the fact that the blockchain can do real time auditing, faster P2P transactions, thus allowing the ability for property management processes to be made more efficiently .

  5. The blockchain allows more tasks such as real time auditing to be completed efficiently along with numerous other financial tasks so the overall cost out put is reduced

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#3497
  • Transparency:
    the ledger is public and all of the transactions so far can be verified
  • Security:
    data in the ledger can’t be modified. only if there is consensus new transactions can be added to the ledger
  • Improved traceability:
    if implemented correctly goods can be traced back in the supply chain
  • Increased efficiency and speed:
    consensus and finality are done as part of the protocol there is no need for third-party verification
  • Reduced cost
    in general machines and machines effort - work is cheaper than human work so not having any humans need to make the network run should be cheaper
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#3498

Transparency: The ability for anyone and everyone to see what is going on. Transparency can be both bad and good. It keeps everyone that wants to be part of the system accountable, but gives very powerful and possibly damaging information to people that do not want to be part of the system. Possibly to cause harm to others with free flowing information.

Security: The benefits of blockchain when it comes to security is mining. This allow the network to be secure via proof-of-work.

Improved Traceability: Since blockchain is a digital ledger, it is by design, a built in traceability matrix.

Increased efficiency and speed: since it removes the need to trust. Any transaction will become infinitely more efficient.

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#3499

Transparency:
Because everyone can see the transaction/record once it’s complete. It’s publicly available and therefore can keep parties accountable.

Security:
It’s a trustless system, meaning that you dont rely on trust but rather on verification from nodes on the chain. The transactions are immune to hacks and corruption.

Improved traceability:
Allows an audit trail as soon as a block is formed. This will spell the end of auditors and their profession no doubt.
Also very useful for tracking goods (or services) rendered along a supply chain

Increased efficiency and speed:
Because there is no third party slowing down the transactions.
Noone needs to check and balance everything that happens as much can be done with Smart Contracts and automated.

Reduced cost:
With no middle men there is noone taking fees for unnecessary work. This coupled with the speed of transactions make it a much lower cost than traditional methods of transacting/operating

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#3500

  1. Transparency: All the data is on a open ledger which means that anyone have access to see all the verified transactions that are made since the first day of the network.

  2. Security: All new transactions are encrypted and linked to the previous transaction and can be seen on open ledger. Also the high availability of the network makes it more secure.

  3. Improved traceability: Authenticity of the tradeable asset can be verified on a blockchain. You can track f.e. the supply chain of goods you buy in a blockchain without needing to trust any 3rd parties.

  4. Increased efficiency and speed: No need for middleman. Compared to legacy system by using blockchain you could make fast cross-border transactions. For example with smart contracts you could automate many things where the middleman is needed in legacy system.

  5. Reduced cost: Because there is no need for the middleman in blockchain it automatically reduces cost (no high fees). Also network of computers are cheaper to keep running than legacy system.

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#3501
  1. Nothing is hidden or a mystery as everything is open to all and can be identified, tracked. This brings confidence and reduces risk or low-quality business.
  2. It is highly secure as each block is linked to another block and therefore modifying data is highly impossible in a network of blocks.
  3. As a block is linked to its previous block, one can trace the source of any information. this brings accuracy and helps to track in real-time.
  4. Waiting time or dependency on an intermediate organization is not present. As blockchain is available always, verifying and adding a ledger is quite faster.
  5. No investment in any organization hence reduces cost.
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#3502

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

The fact that blockchain technology is a public ledger allows for the following characterisitics:

  1. Transparency:
    The transactions and data can be verified at all times, thus creating much more transparency.

  2. Security:
    We could also call this aspect integrity, since once something is added to the blockchain ledger, it cannot be removed, and it is linked to the previous entry. The nature of this technology makes it impossible to falsify information ( are there exceptions?) thus insuring security and integrity about the information.

  3. Improved traceability:
    This ties in to the two previous ones. Transparency, and integrity of the information, makes it much easier to know the what, how, and where of it all.

  4. Increased efficiency and speed:
    The peer-to-peer aspect of blockchain eliminates the need for intermediaries, which inevitably makes things more direct, thus more efficient and quick.

  5. Reduced cost:
    Eliminating the need for intermediaries in many steps of the process of transactions for example will automatically reduce the cost.

Hurray for Blockchain!

On a personal note, I find that all the following characteristics are tied into and bounce back on each other. Just that in and of itself makes blockchain technology a non-linear one, which would make it more resilient, wouldn’t it?

A concept in permaculture, which is derived from studying natural systems, is that the more connections there are between functions, the more resilient a system. And the more functions can be answered by many solutions, again, resilience is greater. I find parallels with permaculture, natural systems, and blockchain. I’m sure I’m not the only one to see this.

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#3503

Reading Assignment

Blockchain technology is decentralised and trustless- this allows for new opportunities and is beneficial to businesses as it offers greater transparency, enhanced security, easier traceability, increased efficiency and speed, as well as reduced costs.

#1 Greater Transparency

Blockchain is a digital, distributed ledger.

All transactions must be approved by the nodes/ network of computers before the transaction can be added to the blockchain ledger.

There is no central authority- all nodes must reach consensus for transactions to be verified. It is also open source- accessible to anyone with an internet connection.

#2 Increased Efficiency

Due to its decentralized nature, Blockchain removes the need for middlemen in many processes - especially in the healthcare and financial sector.

Blockchain allows for faster transactions compared to traditional practices. Blockchain has the potential to automate supply chain processes; and reduce the need for auditing.

#3 Better Security

The Blockchain database/ ledgers are stored across multiple networks - therefore cannot be easily hacked. It is also updated in real time and is under consensus of all nodes. If all nodes reach consensus on a transaction- it will be conformed and thereafter added to the Blockchain. It is immutable from this point onwards and is incorruptible.

#4 Improved Traceability

The blockchain ledger records all transactions, and all transactions are linked to the previous ones- thus making it easy to trace where goods came from, this is beneficial in supply chains, to know where goods come from. This helps improve security; prevent fraud in exchange-related businesses; and it can also help verify the authenticity of the traded assets. In industries such as medicine, it can be used to track the supply chain from manufacturer to distributer.

#5 Reduced costs

Blockchain is based on a mathematic system and a set of protocols thus, it reduces the cost of middle men in financial and law practices.

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#3504

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

Transparency :

The transaction ledger is open for public viewing. The visibility encourages integrity.

Security:

It is nearly impossible to alter data once it enters a blockchain.

However, the data might have been inaccurate in the first place.

Or many people might refuse to accept the data.

A glaring example is the USA 2020 Presidential Election.

There is a massive need for an accurate blockchain voting system. And all candidates must agree to accept the results.

Improved traceability:

Tech wizards can create means to track transactions flows in the Ledger.

Increased efficiency and speed

reduces the need for go-betweens.

Cross-border financial transactions can be much faster with accurate monetary exchange through cryptocurrencies and smart contracts.

The blockchain could provide a uniform system of property ownership.

Smart contracts could provide purchase agreements, rental agreements, and many other agreements.

There is the elephant in the room. Or you might call it a big Achilles heel. What if there is a conflict between what the blockchain says and what the physical world says? Which would stand up in a court of law?

Before depending on a transaction in the physical world, all parties should establish a notarized agreement saying they will adhere to the blockchain’s smart contract.

Reduced cost

Please see the above answer for efficiency and speed.

Note: BaaS (Blockchain as a Service) is centralized.

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#3505

Transparency: The transactions are open to viewing.
Security: It’s secure because all transactions are encrypted and linked to the previous transaction. As these transactions are immutable, it’s safe from falsified information.
Improved traceability: As the blocks cannot be changed or removed, all transactions are kept in the blockchain and can be searched.
Increased efficiency and speed: Because it’s decentralized, some middlemen can be removed. The unified system (everyone using the same standards and protocol) also increases the efficiency.
Reduced cost: Starter kits allow companies to build a proof-of-concept to check wether blockchain will be a viable solution for their problem.

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#3506

Transparency is a benefit of the blockchain due to the fact it operates on a public ledger that can be accessed and verified by anyone anytime. This public nature of the blockchain also includes built in accountability for those using it. The security of the blockchain is a benefit because there are positive feedback loops that create incentives for users to keep the blockchain secure. This security enforces the trustless system upon which data can be stored and modified in the ledger.

Due to the decentralized nature of the blockchain efficiencies are created by removing middle-men in transactions and applications. As copies of the ledger are stored all over the world the speed at which data can be retrieved has increased. For instance, part of the successes of AWS can be attributed to its world-wide decentralized design allowing speed, efficiency and cost saving for hosting data. This leads to reduced costs for businesses and consumers, as well as for the governments that regulate industry.

Lastly the traceability of blockchain data could help benefit agriculture and medicine industries by allowing metadata to be attached to processes or items through every step of the design and manufacturing process. The blockchain could enable greater trust, accountability and security of supply chains to ensure they are operating morally, legally and efficiently.

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#3507 
Transparency: Everybody can see everything what is happen on the blockchain.

Security: On Blockchain each new transaction is encrypted and linked to the previous transaction.

Improved traceability: You can track back every supplichain and find out everything.

Increased efficiency and speed: You can speed up complex transactions because you can trust in the technik.

Reduced cost: You don´t need middleman and expensive trustprocedures.
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#3508

Some exotic PoW blockchains with very low hash rate are prone to 51% attack if that is what you were asking.

Actually the block chain itself is quite linear if you look from the perspective of chained blocks, it only goes one way.
If you look at the network map its quite a mesh, kind of like mycelium I guess. :slight_smile:

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#3509

Yes and no, you have a centralized authority that offers you a node setup but once the node is running its basically your own node that functions in the network like any other.
But I agree its always better to spin your own :wink:

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#3510

Blockchains transparency ensures that an entity is actually doing what they say they are doing. As a digital ledger that can be publicly accessed, natural checks and balances are created between each part of the entities structure, ensuring they are all working towards the same goal.

Blockchain is immutable in the sense that information can only be added, and each transaction is linked to the the one before it. Consensus over a network of nodes and the finality of each transaction makes manipulation impossible, and creates a trustless system of interaction that is real security.

Transactions in the Blockchain can contain information about the provenance of the items goods or services being used. This enables a trustless supply chain where information on every step of way is available, allowing real traceability.

Blockchain is a decentralized network where transactions are peer to peer. The lack of the “middleman” increases exponentially the speed of these movements. In a financial use case person a can send money as crypto directly to another person around the world, without using a bank or service. In real estate use cases, Blockchain can be used to prove ownership and facilitate succession or selling faster and cheaper.

Blockchain will reduce the cost of operation for any structure that integrates it. One decentralized network will replace several layers of centralized operations, for example with Blockchain, transactions are automatically audited in real time because the information is present inside the transaction, cutting out the need for this service.

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