As discussed in the lectures, blockchain technologies such as bitcoin provide multiple features. First, transparency, which is achieved by sharing across the internet the ledger on which all past transactions are stored. Security is achieved in different ways, two of which are cryptography and financial incentives for good behavior. Because all transactions since conception are stored in the ledger and consensus is decentralized, one doesn’t need to rely on or trust a third party but can just check past transactions (which are public). I think speed, efficiency and cost may be argued upon depending on the context, but I’ll mention some of the pros that come with blockchain: efficiency can come in term of high availability, speed in terms of verification / auditing and reduced cost may come as consequence of this benefits compared to centralized systems (e.g. no costs for dispute of transactions).
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: Open public information for all to see is really important. No data, financials or shady deals can be covered up. More accountability will follow
Security: Increased security from corruption, theft
Improved traceability: Being able to trace the flow of transactions to pinpoint senders and receivers improve accountability, security and transparency
Increased efficiency and speed: Transactions that takes seconds or minutes are needed in today’s world. The traditional finance system takes days to clear transactions, resulting in loss of time, money and efficiency
Reduced cost: No need for centralized servers or offices, the decentralized nature of blockchain reduces cost and overheads in almost every sector
Transparency: No one can hide anything, once it’s been added to the blockchain it can’t be removed or replaced
Security: Since it is a trustless system companies don’t have to rely on a companies word they can rely on the blockchain
Improved Traceability: Once something has been added it can’t removed so a company can’t hide how they’ve gotten things
Increased Efficiency and Speed: There are no middle men so everyone can go directly to the source
Reduced Cost: Like the previous point the middlemen is taken out which reduces costs in several ways
Transparency: encourages honesty and the upholding of values of business through public accountability.
Security: it is a trustless system allowing business between anonymous parties, encryted information that is irreversible and trackable forever, and of a publicly viewable, consensus-driven nature.
Improved traceability: allows auditing and chain of custody verification to prove authenticity without relying on a single entity or corruptible human for validation.
Increased efficiency and speed: blockchain is borderless, removes payment middlemen, and can be automated based on pre-programmed parameters in contracts.
Reduced cost: the middlemen can be cut out to eliminate most fees associated with information flow, instead paying minimal miner and network transaction fees.
1.) The transparency of the network allows everyone to look at the validated transactions on the public ledger to understand and reread everything that has happened. that gives full transparency to the network allowing for accountability withing the parties.
2.) The security comes from the unique combinations of hashes within a block, a lot of blocks following each other, creating a chain. hence, blockchain. that chain can not be altered, tempered with or hacked, and there for illustrates a truely secure and trustless environment.
3.) being able to trace each and every transaction on the blockchain leads to greatly improved traceability on the network. That can have differend use cases whether it is reviewing past transactions, validating taxable events or other transactions. as it is public by nature it is easy to trace every transaction on chain.
4.) being a peer to peer network the blockchain network connects the two paties to each other eliminating the 3rd party middlemen. that results in higher efficiency and speed.
5.) eliminating the middlemen also highly reduces cost for the parties involved. the only transaction costs go to the miners/validators.
Transparency: The transaction ledger for public addresses is available for anyone to view it, which adds a layer of accountability.
Security: no middle man required in the transaction process, allowing for peer-to-peer international transfers.
Improved Traceability: you can have an easy audit system since every transaction is available on the blockchain, giving verification of authenticity of any traded asset.
Increased efficiency and speed: Due to the introduction of the BaaS system, easy integration to businesses was made available, facilitating the distribution of multi asset liquidity, introduction to the proof-of-concept making it fully tangible system.
Reduced Cost: not having to rely on the middleman made it cost effective.
Transparency:
The blockchain operates on a decentralised network which allows for a fully transparent public ledger with accountability to all parties involved.
Security:
Decentralised network uses the same protocol for all its transactions which is verified collectively by a trustless network, removing the need for third partys and potential hacks.
Improved traceability:
Blockchain ledger allows for audit trails, this is especially useful in tracking the original source of goods or within the crypto art industry with proof of ownership/creation - NFTs.
Increased efficiency and speed:
A decentralised network allows for faster transactions due to not requiring any middle men.
Reduced cost:
Costs will be save all around from servers/accountancy/speed/transactions/ownership/proof/security etc.
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Transparency:
Transparency allows for public scrutiny of transactions on the blockchain. Trust is replaced with the ability of anyone to verify these. -
Security:
The immutable nature of crypto allows for transactions to be “written in stone.” The distribution of the ledgers make it virtually impossible to break the chain and data integrity within. -
Improved traceability:
Ledgers are public and allow for scrutiny of all transactions. Claims can be verified by anyone. -
Increased efficiency and speed:
The replacement of third party auditors or brokers make the transactions faster and more efficient. -
Reduced cost:
Third party’s are not needed and therefore reduce transaction costs as well as no need for third party auditing.
IVAN ON TECH TEST QUESTIONS Benefits of cryptocurrency
- Greater Transparency
Blockchain is know to be great with transparency in the sense that every transaction on the blockchain is written in a public ledger in real time. Everyone who knows a little about blockchain or really wants to see the transactions can do so without a problem. This I think put a lot of pressure of on anyone providing any kind of services to others to make sure they are what they claim to be.
Efficiency
Cryptocurrency was created to eliminate the middle man or institution. It is a digital way of carrying out not only financial transactions but also services etc. It was created so two people are able to transact business directly between the two persons without going thru or using a middle person or institution to finalize the transaction. This makes transactions time efficient, and less to no fees and still with even greater confident transactions will be accurate.
Security
Cryptocurrency is more secure because transactions are mined and verified by all networks involved before they blocks are placed on the block chain. Every transaction must be link to the previous transaction to be able to create a new transaction. This prevent duplicates and those mining these coins makes it even more secured because the more miners the more difficult it is to hack. Miners use mathematical solutions to create a block. Because miners are rewarded for creating more and accurate transactions with incentives, they rather do the right thing to get more rewards than falsify any documents
Improve traceability
Every transaction that’s ever been created on the blockchain stays there for ever and can be traced with ease. It can also assist in authentication of goods from manufacturers making sure they are the ones and that what ever product they say it is…is accurate including products/ingredients used manufacture or prepare the product.
Reduce cost
Blockchain reduces cost because we don’t have to pay the middle man to carryout the transactions for us. We are sure that every transaction executed is efficient, fast and accurate the first time it was executed there for no need to spend time correcting or repeating transactions
We don’t have to pay for auditors to come crosscheck our ledgers or book keeping as it is efficient as we go along. We don’t risk getting into trouble with the law leading to heavy lawyer fees because of costly mistake.
Gina
Transparency: Everyone using the blockchain can see all of the transactions and verify that they are correct. This removes any trust from the system and creates a database based on mathematics and protocols.
Security: Similar to above, all transactions are verified on the blockchain and create an audit trail so that they never go away.
Improved traceability: All transactions leave an audit trail and are verified on the blockchain
Increased efficiency and speed: Since all transactions are verified on the blockchain, and leave an audit trail. Digging up old records and receipts to prove transactions will be unnecessary.
Reduced cost: Along with increased efficiency, costs for companies to audit spending/purchasing and incoming and outgoing goods will be automatically stored on the blockchain and easily verifiable.
- Transparency: a public leger makes it so anyone can view your history
- Security: your data is immutable and joins an encrypted block of data that the network protects
- Improved traceability: easy to follow an audit trail with the timestamped and transparent data
- Increased efficiency and speed: cut out the middleman in a lot of processes
- Reduced cost: cutting out middleman in processes saves money along with cutting costs on special software and hardware used to build protected walls around centralized systems
- Transparency:
Trustlesness and accountability are beneficial to all participants. Blockchain allows for “good” businesses to really shine and serve their customers, and it allows for people to quickly identify and avoid “bad” businesses.
- Security:
Every transaction becomes a permanent part of the blockchain. It’s impossible to alter once it’s recorded. This is the most secure database ever.
- Improved traceability:
Each transaction is recorded permanently on the blockchain. It’s 100% traceable without any barriers.
- Increased efficiency and speed:
With blockchain, we can instantly execute P2P transactions without a middleman. This is going to save a ton of time and effort.
- Reduced cost:
No more need to manually execute each step of a contract, for example. No more back and forth about whether payments were submitted. Blockchain can help to integrate multiple processes into a automated workflow.
- Transparency has its benefits for blockchain that it is understandable for others to use this network and very accountable to use than other databases.
- Security is the top priority to keep cryptos safe and to avoid attacks on the blockchain which is impossible to access other users.
- It has improved the traceability of these cryptos to be stored safely and ownership stays with them and everything that comes with blockchain technology.
- It increases the efficiency and speed that it works 24 hours everyday unlike other stocks which can be dropped or up. It’s very accountable to use with cryptocurrency.
- It is a reduced cost when using blockchain that it’s more convenient to use and doesn’t require a broker or anyone that’s involved in these trades which is best to do it ourselves and with blockchain.
Transparency: The blockchain is open for everyone to view the transactions on a public ledger
Security: Transactions are verified and audited through a consensus via redundant copies of the database. Once done they are immutable
Improved traceability: Provenance results in the being able to trace the history of transactions, the source of products and the different layers of a supply chain.
Increased efficiency and speed: All transactions are verified through mathematical protocols, reducing human errors.
Reduced cost: No labor and real estate costs of any third party/intermediaries. No need to pay for HR, employee training, sick pay, paid time off and insurance packages.
Transparency: Everyone can see where the transaction came from and where it went. Nobody can argue about that, because everyone has the same access to the transaction history.
Security: A confirmed transaction on the Blockchain can’t be changed my anyone anymore.
Improved traceability: All parties can see from where, to where a transaction went. And also from where it came original, if it’s a honest money or not. This also avoids corruption.
Increased efficiency and speed: It is more efficient then the current solutions because there is nobody needed to validate the transaction, conformation doesn’t depend on a central governance. The transactions are validated through the miners around the globe 24/7/365. Transactions can be made in real time.
Reduced cost: It decreases the cost dramatically because there is no auditor involved who wants to earn money. In this system right now, you have the banks who use their monopole power in many countries to make the fees as they like.
Transparency: Transactions on the blockchain network are public and variable by every node on the network. Due to the decentralized nature of this, blockchain is very transparent and does not need the level of trust one would place ina central authority such as a bank.
Security: Transactions on a blockchain are final and cannot be modified in any way by nodes. In theory, it is possible to modify a transaction but this can only be done when all nodes of the network agree which would not happen. Since nothing can be edited and the network is secured by all nodes, the blockchain cannot be hacked to duplicate transactions.
Improved Traceability: Records of transactions on the blockchain can be tracked in real-time and be viewed by anyone. All transactions can be automatically audited and accounted for, meaning the history of the network can be backtraced. This has major implications in fields such as supply chain or auditing.
Efficiency and speed: The blockchain works 24/7/365, and works as a single protocol that can be followed globally. This means that all activities performed on the protocol will work together in a cohesive way. The disruptive nature of blockchain will also mean that many activities that formerly required a middleman to do will not be necessary anymore.
Reduced Cost: Because middlemen will be cut out of the picture, blockchain will bring with it less fees and lower costs
- Transparency:
A. All transactions are publicly visable. - Security:
A. All transactions are verified by the network which is made up of multiple nodes and each node is rewarded for participating. - Improved traceability:
A. All transactions are mathematically written into the ledger with sender, receiver and amount visible to all. - Increased efficiency and speed:
A. Fast and easy validation carried out by nodes. No human interaction (all computer). - Reduced cost:
A. Dont have to reconcile multiple ledgers. Removes brokerage, accounting fees.
Transparency:
All transactions within the blockchain are visible and there is no way to hide a particular transaction.
Security:
Transactions are approved via difficult mathematical calculations and via confirming the previous transactions as well. This makes it very secure.
Improved traceability:
All the trail of a transaction can be easily accessed to. This makes all transactions easy to be verified. It is essential in industries like food chain, cargo shipments, finance, real estate etc…
Increased efficiency and speed:
No middle man required so faster transactions and easy management of a company.
Reduced cost:
Peer to peer confirmations replaces the need to finance an intermediary company
Transparency: Ledgers are open to view for the public so a company has to be honest about their bookkeeping because we, the people can check/verify it at any given moment
Security: It’s the safest way of transacting because its impossible to alter the block that has been made on mathematical base.
Traceability: Every time something is added it will be as well added to the blockchain. When the block is made its there and impossible to change when it has been made.
Efficiency and speed: Because all systems work the same, everything can intergrade with each other and therefore there are no more barriers.
Reduce cost: Accounting is done automatically so no one has to do that for you, the block is your accountant
- Transparency: Everyone can see when a trasnsaction has occured. If a transcation is on the blockchain all nodes have come to concensus that it is correct, trackable and reliable.
- Security: due to ledger network and decentralised node varification it is very difficult to hack also once transaction has been recorded it cannot be edited.
- Improved traceability: The origin and process of god in a supply chain can be traced using blockhain it also allows supply network to always be cross validated by other nodes ensuring that what is delivered makes sense
- Increased efficiency and speed: No need for intermedairys in transaction to varify or manage simple peer to peer
- Reduced cost: block chain removes the need for validators and handlers so that cost is also removed