Reading assignment: Benefits of the Blockchain technology

[Mako]

Transparency: Allows all transactions to be highly auditable as each transaction can be followed through its address in the blockchain. This network transparency forces behavioral transparency as all actors realise their actions will be open to audit.

Security: Block chain is built around a technology that chains all the blocks as they happened sequentially with each new block encrypted and chained to the previous block. It is therefore non-corruptible and immutable and by having the ledger distributed , it is highly secure and cannot be altered like in the traditional ledgers

Improved traceability: Across many industries, it is possible to follow the chain and find out where the goods came from, the previous ownerships and how they changed hands, and nothing can be lost.

Increased efficiency and speed: It allows middlemen and trust centers to be eliminated as the parties can transact directly and trustless (and they dont need to know each other),
Due to absence of middlemen and the distributed and decentralised nature, it allows transactions to be quickly confirmed for inclusion into the block chain and eliminates bottleneck.

Reduced cost: The cost can be significantly also be reduced as everything can be automated and included in the smart contracts as well.

[SopheeDee]

@Alko89, thanks for the amswers and specifications!
And, yes, I was referring to the network.
Thank you!

[Jared_Vizzi]

1. Transparency: The ledger is publicly available. This brings a tremendous amount of accountability and ensures funds are being used properly.

2. Security: All information on the blockchain is fully encrypted with complex mathematical equations that cannot be undone.

3. Improved traceability: Companies can implement blockchain solutions to accurately track their supply chain to ensure their final products are indeed what they claim to be.

4. Increased efficiency and speed: Without the need to rely on an intermediary to validate and process transactions, a highly efficient system is possible. Transactions can be confirmed in a matter of seconds due to the power of the network of miners who are incentivized to participate.

5. Reduced cost: Companies will reduce their need to rely on third party auditors by essentially having a decentralized self-auditing process.

[JimKitzmiller]

Thank you for the clarification.

Ahh. There is so much fun stuff to learn!

[loso]

Transparency is a benefit as it removes the need for trust we currently place in 3rd parties. Rather than trusting a party, transparency of a ledger allows for all transactions to publicly recorded allowing for people to check for themselves the actual transactions that took place.

Security is also a benefit as consensus is needed for blocks to be added to the chain. This consensus which is incentivized allows for ledgers to verify data, not allowing for duplications to be made.

Improved traceability is a benefit as the permanent addition of blocks allows for transactions to be historically traced. This historical information of the production of blocks can be public, allowing for anyone to trace. Therefore if a party claims a transaction occurs then it can be validated as true or not.

Increased efficiency and speed completely removes current middlemen that stand between many transactions today. Many middlemen that stand today between payment processes and real estate transactions can be removed using blockchain technology.

Reduced cost would be a benefit as these 3rd party brokers will be removed from many processes in which we participate today. This eliminates many fees that occur in today’s transactions. Also the recording of transactions becomes automated. Removing such costs associated with record keeping.

[Scorpius]

1. Transparency: every transaction can be viewed on blockchain.
2. Security: blockchain, once written, cannot be changed.
3. Improved traceability: you can see origination and “trail” of all transactions leading up to the current.
4. Increased efficiency and speed: No middlemen (or systems) needed thus creating much faster transaction time.
5. Reduced cost: less players, less cost.

[Jean_Valjean]

Transparency : With transparency anyone can see that the transaction is done , that information is accessible by anyone .
Security : With blockchain we remove trust issue . Also , user does not have to share his data to 3rd party , everything is verified and secured by math and protocol .
Traceability : Traceability is a great tool with witch any product and it ingredients can be traced in one single transaction . There can be no manipulation with data .#
Efficiency and speed and reduced cost : So far we were not able to use one system to transfer data/value , blockchain can be a solution for that. Every company offers its products built on different basics , with blockchain we can solve this issue and use it for a lot of applications without additional expenses .

[FTL]

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

Transparency:

• Answer: Visibility of the consensus-validated ledger of transactions presents irrefutable evidence of transaction values and history

Security:

• Answer: A popularly distributed and decentralized ledger is extremely resistant to tampering of any sort due to the (transparent, highly distributed, rules-based consensus based validating) nature of the protocol that builds and maintains the blockchain. *A brute-force +50% attack is the only practicable way to enable a “hack” (so to speak) and yet even this method requires overt efforts for which countermeasures can be engaged (additional miners, forking); ultimately, the larger a popular (mining/staking) decentralized mechanism becomes, the more difficult a brute force attack becomes.

Improved traceability:

• Answer: The fully distributed and exposed ledger of transactions presents an a complete and indelible audit trail for all transactions recorded on the blockchain. One needs only to parse the chain for relevant transactions to confirm the status of those transactions (transactions, in this description, include any and all dApps and smart-contracts incorporated into the blockchain).

Increased efficiency and speed:

• Answer: There are no intermediating players/agencies/regulatory-constructs/gatekeepers involved in the actual insertion of transactions into the blockchain nor are there any involved in the validation of the blockchain.
  • Due to this complete lack of opaque/gating relaying agencies, there is no equivalent process-friction (given: each “agent” that touches, approves or otherwise regulates a transaction induces a commensurate friction into the completion process of that transaction), this friction is rendered as economic, timeliness, or punitive… or a combination of these.
  • Speed [detail]: The amount of time for a transaction to complete is solely coupled to the capacity of the proof-of-work endeavor, which (due to mining market forces) is generally compelled to occur faster rather than slower, because as difficulty decreases, reward increases… and so capacity to validate trends toward a stable increase in capacity (all things being equal).

Reduced cost:

• Answer: The reduction of overhead (otherwise necessary) to provision the indelibleness and efficiency one can obtain using blockchain methodologies and protocols strips the process flow down to it’s most efficient implementation costs because it completely obviates entire procedural ecosystems (middlemen and walled gardens)… Otherwise, this question is generally redundant to my answer above:

Due to this complete lack of opaque/gating relaying agencies, there is no equivalent process-friction (given: each “agent” that touches, approves or otherwise regulates a transaction induces a commensurate friction into the completion process of that transaction), this friction is rendered as economic, timeliness, or punitive… or a combination of these.

[zenswampcooler]

Transparency: everyone can see it
Security: can’t be hacked or manipulated
Imporved traceablity: you can find out the history of things
Increased eficiency and speed: yea
Reduced cost: duh

[Ren]

Transparency: The blockchain is a public ledger where anyone can view its transactions. Nothing hidden or manipulated, 100% transparent.

Security: There is no central database (decentralised), it is spread amongst a network of computers worldwide hence it cannot be bribed or hacked.

Improved traceability: Blockchain is like a digital stone where transactions can only be added not removed which makes it easier for traceability as you can see all transactions right from the source. Due to the high availability 24/7/365 there is real time auditing.

Increased efficiency and speed: Remove the middle man, the transactions are between peer to peer so it’s a lot more efficient.

Reduced cost: As there’s no middle man, there’s no hidden fees or costs that are added. The only fees are for miners that verify the transactions on the blockchain network.

[Andre_TWI]

1. Using blockchain makes it to where the access of every transaction is made to the public. Therefore no one has to rely on a trusted network.

2. Since the transparency of the network makes it to where the public has complete access and it uses the same method for every transaction, it will become extremely easier to spot the unusual activity.

3. With the public knowledge being accessible to the public and ease of access to the records, it makes easy to find any transaction that occurred.

4. Since the blockchain network uses a complex mathematical equation by computers to run it would become subject to human error. Therefore making a smoother and accurate transaction.

5. It removes the 3rd party ledgers.

[NicPlankton]

Transparency: This is a benefit cause it allows any user to have access to all the information with a public ledger.

Security: It is more secure because database is public and descentralized, this makes it unbreakable, or hackable. Also, it doesn’t allow manipulation cause each transaction is encrypted and linked to each other in a chain.

Improved traceability: on each operation it is done, you can track where is the provenance of those funds. Or even to track the suppliers in a supply chain.

Increased efficiency and speed: as blockchain works 24/7/365 and doesn’t depend on a middle entity, this makes things faster with less steps. Also, as it is done by protocol and code, its failing chances are lower.

[Chris_Banks]

1)The blockchain allows for transparency by making every transaction public. A public ledger of a transaction chain is visible for all parties involved. All transactions are public so there is more trust in the product from the customer as well. We could actually buy clothing made with legal labor. The transparency is perhaps the most awesome attribute of the tech.
2)Each transaction made on the blockchain leaves a trail of numbers that can only be added to.
The public chain of mathematical numbers is impossible to break. Bank transfers will be traceable from start to finish. No more Tom foolery for the banks!
3) Traceability is now more transparent. Every sale and purchase is recorded on the ledger.Companies use the ledger to prove their supply chain. The ledger tracks the supply chain and the purchases from start to finished product.
4)Blockchain increases efficiency by organizing all transactions from fiat to materials textiles and raw goods all into a trustless absolute system of math.
5) If several companies working together use blockchain tech they have the ability to prove their work.
Each company can organize their financials and their order chart on the same blockchain. This provides trustless integrity with a public ledger.

[studiogeek]

Transparency) Everyone can see it as soon as it happens, and no one can change it.
Security) No one can remove anything. Everything that is there has been confirmed multiple times, by multiple nodes, is encrypted, and chained to the transaction before it. The redundancy and confirmations make it a bit of a nightmare for hackers.
Improved traceability) You don’t have to ask for the data. You just look at it for real-time answers. Instant verification.
Increased efficiency and speed) You find the best way to do something, and you do it the exact same way every time. Eliminate the middle man while eliminating human error.
Reduced cost) Audit remotely and in real-time, any time. Eliminate the errors and cost of the middle-man. Savings on security, audit and legal measures necessary when humans are involved.

[Mehdi369]

When you know, why would you not, incentivised efficient 24h/7 365 days trustless trackable cost effiecient system? why would you not?

[Virginia]

Transparency as transactions are public on the blockchain
Security from encrypted locks on transactions in their chain of order
Improved traceability as blockchain can be used to discover and validate sources of products
Increased efficiency and speed is possible with the technology streamlining applied
Reduced cost from not needing to enter the same data over and over

[Osgren]

1. Everything is public, everything is agreed or disagreed on together, everyone is incentivized to work for everyone’s best.
2. Every transaction is encrypted and you can track its origin from the beginning to now. The computers in the network all share the same data. Trust isn’t needed. Data is immutable.
3. Everything can be traced. Everything is public.
4. No need for middlemen. Mining is incentivized so there are always a lot of computers running.
5. (Like mentioned in 4.) there is no need for middlemen, which could cost a lot of money.

[alonsoalvaradojr]

1. transparency is a characteristic of a public blockchain since the power is decentralized and transactions are verified by the entire network

2. security is achieved through high availability meaning that the network is being maintained by a lot of computing power in a decentralized manner.

3. improved traceability is a characteristic of blockchains since data or transactions can only be added to the blockchain and not removed.

4. the blockchain helps record data in a manner that isnt very efficient right now by recording an accounting layer as well as a transactional layer simultaneuosly

5. saving time can help save money and being transparent can help analyze spending more effeciently which leads to saving a lot of money.

[Urs]

1. Transparency: All the transactions can be openly seen by everyone.
2. Security: The decentralized nodes, the encryption and the immutability add to a high security.
3. Improved traceability: A constant audit trail and immutability ensure the traceability.
4. Increased efficiency and speed: No man in the middle. Worldwide execution. No waiting time for trust makers.
5. Reduced cost: No fees by man in the middle. Audit is simpler. Speed helps also (time is money)

[Bryan]

1. Transparency:

In a blockchain, transactions are stored in a public ledger that is nearly impossible to falsify, so it allows strangers to transact without trust.

2. Security:

Security is much greater in a decentralized network because there is no central point of failure to attack or hack. The security of a network is the sum of computing power or resources of the participants.

3. Improved traceability:

By providing an immutable record of all transactions, they can be traced.

4. Increased efficiency and speed:

By providing a common database or protocol used by all the participants, this creates greater efficiency than if the participants used different infrastructures.

5. Reduced cost:

By removing middleman that charge transaction fees and instead allowing parties to transact directed, this reduces fees. Also by increasing efficiency and speed this also reduces costs.