Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#3694

Transparency:
Blockchain technology provides a transparent public ledger for all of its transactions that are open to anyone as long as they have internet. This adds a layer of accountability to companies to provide integrity to their customers.

Security:
Transactions can not be modified or erased on the blockchain due to their immutability nature. Each transaction is encrypted and linked to the previous transaction. This adds improved security to the current database infrastructure to prevent falsified information to be sent and hacked.

Improved traceability:
Every transaction is recorded on the blockchain in an open public ledger that can not be modified or reversed. This allows real-time audit capability for past transactions in a trustless manner.

Increased efficiency and speed:
Blockchain removes the middle man and creates a direct trustless peer-to-peer transactional exchange. This increases the efficiency and speed of handling any sort of financial-related tranastions such as cross-border payments, real estate, and NFTs, etc.

Reduced cost:
By removing the middle person, it helps reduce the handling fees significantly dictated by a central authority. The handling fees are decided fairly by the network congestions and advanced users are also free to choose how much fees to pay depending on the urgency of their transactions.

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#3695

Transparency - Everything is visible and can be seen
Security - Everyone on the network checks and double checks to make sure everything is verified and correct
Traceability - Because all transactions or products can be traced with where they’ve come from
Increased efficiency and speed - Because it is running 24/7 always accessible with financial incentives to keep it running
Reduced cost - Because it cuts out the middle man a lot of the time making everything direct and trustless.

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#3696

Transparency
Public blockchains are fully transparent and can be searched using an explorer. This means any transaction can be traced on the blockchain after it has been verified.This ensures both parties to a transaction can be sure it was executed as intended.
Security
Each block in the chain is hashed and this hash is stored in the block as a block transaction id together with the hash of the transaction id of the previous block. The next subsequent block created will use the current transaction id and reference that in its block. Consequently if an older block, n in the chain is altered its hash will also alter, thereby breaking the reference to it in the n+1 newer block in the chain. This mechanism ensures each block once generated is secure from being tampered with.
Improved traceability
Since each block of transactions is immutable changes of ownership of an asset can easily be recorded in a block. Ownership is then easily traceable as an asset changes hands from one owner to another. The same principle applies to financial exchanges or supply chain processes.
Increased efficiency and speed
Smart contracts on the blockchain means things like decentralised exchange processes can proceed without the need of a broker for example. Currently with centralised exchanges many transactions are fulfilled days after the event. Because of the trustless nature of smart contracts on the blockchain this dependency is removed.
Reduced cost
By removing unnecessary trusted third parties processes can be streamlined and costs reduced. The roles and processes can be captured by smart contracts on the blockchain leading to savings in both time and expense.

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#3697

Well, let’s go back to the digital stone from the beginning of this course. When a transaction has been recorded on this stone it will never disappear and hence it’s always visible for anyone. This gives the complete visibility to all participants since everybody can see all of the transactions.

Since it’s a decentralised system based on consensus it’s nearly impossible to hack - meaning the security is very high.

Each transaction leaves a trail on the blockchain. Hence it’s very easy to trace a certain product or the ingredients of the same. Where are they coming from? Is there really xyz in the product and of a particular quality? All this can be verified instantly.

There is no need to audit or manually track a shipment or track suppliers. It is all automated though the chain. Hence it’s super efficient and the speed is enormous.

One of the biggest impacts certainly is on the cost-side. Going back to supply chain quickly. Nowadays there is many players and hand-over phases in the supply chain - starting from the manufacturer to the distributor, forwarding agent, customs, broker, final customer. These are all working in data silos and most of them are not connected. If all of this would be available in the same blockchain a huge costs can be saved due to increase visibility (no airfreight needed when you exactly know where the product is as an example).

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#3698

Transparency: All the transaction are recorded and open to viewing.
Security: Each new transaction is encrypted and linked to the previous transaction.
Improved traceability: All the transactions of an address (item) are recorded and can be traced. History can be easily fetched.
Increased efficiency and speed: Removes the need for middlemen for confirming the transactions
Reduced cost: No need for middleman to validate the transactions

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#3699

  1. Transparency
    I cannot answer this question without thinking of the countless examples when large companies, governments, public authorities, financial institutions or individuals were caught or at least suspected to be involved in data falsification. Even if we look at the narrow scope of financial services and transactions - there have been many cases when data was not transparent or was kind of made public, but there was no certain way to know or TRUST that this data was representing the actual transactions. Therefore the benefit of blockchain is transparency because it makes data about transactions publically available, verified by consensus and the transparent data is complete (not manipulated).

  2. Security
    Data that is secure (by default) is beneficial because it decreases direct and indirect costs related to data verification and security testing or third party services used for this.

  3. Improved traceability
    This feature is a benefit of blockchain because it can “put the money where the mouth is” for many companies and public institutions. Companies using blockchain become much more valuable and justify their value by being transparent and allowing their partners or customers to trace the actual processes or ingredients of their product/service. It can benefit both the results and value/image of entities as well as customers and partners who can actually use products/services that match their desired values or specifications.

  4. Increased efficiency and speed
    This is the most straight forward benefit of blockchain - time is money therefore anything that saves resources is a direct benefit. They can be resources spent on processing the transactions, verifying the data, using third party audits etc. It also opens up new opportunities for cooperation and financial connections among individuals.

  5. Reduced cost
    Related to the previous point - anything that reduces resources spent on third party services, which are mandatory sometimes and therefore can dictate the price they charge - allows companies and individuals to save costs. Also this allows some administrative overheads which are very common in financial and public institutions to be avoided.

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#3700
  1. Transparency: everything is listed publicly in the blockchain, cannot be reversed, deleted once transactions are confirmed; a high level of integrity.
  2. Security: ensures trade between parties that do not necessarily trust each other; the protocol enables that each transaction is secured by a mathematical string that cannot be broken or hacked.
  3. Improved traceability: in exchange of goods, sources of provenience can be verified, as well as the current place in the supply chain; in art, it absolutely certifies the author(proof of ownership)
  4. Increased efficiency and speed: faster due to the fact that the transfer of value is a peer to peer, excluding thus the intermediaries; in property recordings, it is much easier to track the records for the transfers of ownership, rental agreements through smart contracts
  5. Reduced cost: costs per transaction are reduced in comparison to the regular processes(bank fees, insurance premiums, etc.), higher transparency and risk-reduced transfer of value is enabled.
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#3701
  1. Most blockchains, the ledger is publicly available. This makes accounting easier.
  2. Security is inherent in the blockchain systems hashing encryptions that spans across the different blocks of data.
  3. There is link to the previous wallet addresses where the funds came from
  4. There is no need for 3rd party or middleman to verify things
  5. Which then reduces cost of staff and services required to operate
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#3702

By creating an open source peer to peer ledger of transactions, blockchain allows an unparalleled transparency.
The level of security in the blockchain is created by the nature of the consensus based system. An unbreakable chain of verified data is formed and remains on the ledger, this then removes the necessity for trust in a transaction.
By the creation of this immutable chain of data it grants a traceable account that is impervious to manipulation, therefore the providence of a transaction or goods is easily verifiable.
As the necessity for a middleman is abolished in the blockchain the ease of exchange is greatly increased. By reducing the unnecessary parties in a transaction the time and energy involved in settlement is hugely reduced.
This then demonstrates a concurrent reduction in costs.

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#3703

Transparency is allowed through how transactions on a blockchain can always be checked.

Blockchain is immutable. No third party could deem a confirmed transaction void once a transaction is verified. Each transaction is linked to a previous transaction.

Since transactions are linked to each other, tracing the sources of a transaction becomes much easier.

Take banking for example. Instead of relying on a bank’s swift system to transfer money, which could take up to days, a crypto wallet to wallet transaction would only take a matter of minutes.

Accountants, lawyers, bankers, for example will one day become obsoleted since they could all be replaced by blockchain. That in turn would cut down a lot of cost. If we could buy a house without the above three entities, a lot of money would be saved.

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#3704

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

  1. Transparency:
    It’s available for anyone to see and holds people accountable for their actions, improving integrity.
  2. Security:
    As nothing can be edited / deleted from the chain and each entry is linked to the previous one, it makes it safe from false information or hacks
  3. Improved traceability:
    As a public ledger, anybody has access. This removes the need for trust between parties.
  4. Increased efficiency and speed:
    There is no need for “middle men”. Transactions are fast.
  5. Reduced cost:
    There is no need for 3rd parties to be involved in auditing / brokering etc.
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#3705

Transparency: You can avoid fraud.
Security: you don’t have to trust or getting hacked by someone.
Improved traceability: You can verify that everything is in order.
Increased efficiency and speed: well… who dosen’t want that;=)

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#3706
  1. Transparency: All transactions are in a public ledger, it increases the accountability.
  2. Security: Because all transactions are linked and copied in the blockchain, one can not go and alter or modify them after the fact.
  3. Improved traceability: Every exchange is recorded on the blockchain so one can verify all transactions.
  4. Increased efficiency and speed: No need to record the transaction manually, no human error.
  5. Reduced cost: Same as above, no humas recording transactions reduces cost.
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#3707

  1. Transparency: it is a public network everyone must play with open cards here because otherwise you will quickly be exposed

  2. Security: its not possible to change datas how you want because everyone in the network has a copy of the blockchain and if you like to change something its been automticly tested from the hole network according to the security principle of the blockchain which results from the mathematical formula on which the blockchain is based

  3. Improved traceability: a blockchain builds on each other you can think of it like building a chain. if you want to check what the last status was you just look back in the herachy.

  4. Increased efficiency and speed: if our hole network is based on blockchain than it is much more efficiency and a higher speed level because the network is public and evertyhing cooperates better.

  5. Reduced cost: no third instances are needed for verification

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#3708

Transparency: blockchain is a public ledger where all information available for everyone to access and everyone have the same information

Security: all data must be approved by Consensus before it varified, and all Consensus share the same data

Improved traceability: every piece of information is made public it’s easy to trace and know all of history

Increased efficiency and speed: it removes the middleware, the interaction happens between two parties without having anyone in the middle which make it faster and more efficient

Reduced cost: because it is decentralized you won’t be having to hire someone in the middle, and it all digital so will eliminate the standard cost of papers and printing, and more.

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#3709

Transparency
Every transaction that is accepted by the nodes can never be undone or altered. This means that al the data in the blockchain is alway 100% accurate.
Al the transactions can also be looked up. This way you can always find the origin of al transactions.

Security
The nodes that run the network al have a copy of all transactions that have ever been made on the blockchain. If one or several nodes have fals data, this then will be noticed by the other nodes and the transaction will not be accepted.
The nodes that run the network are not located in the same place. This makes it much more difficult to hack the network because you need to hack 51% of all nodes in order to change the data.

Improved traceability
All the transactions ever made are in the blockchain. This way you alway have a history of all transaction that are accepted in the blockchain. For example if you run a grocery shop you can always check all the transactions that have been accepted on the blockchain and there for see all the ‘‘steps’’ the vegetables have taken before they arrived at you grocery shop.

Increased efficiency and speed
Duo to its decentralised nature there is no third party. This speeds up the process of transactions being accepted and executed. For example if you want to buy real estate, you can cut off the notary. The smart contract can execute the transaction immediately after both parties meet the terms that where agreed up on. And because the transaction is in the blockchain, it will be there forever. Even if you sell your real estate to someone els, there will alway be a history of all transaction regarding this piece of real estate.

Reduced cost
Duo to its decentralised nature you can cut off the middle man ( and its costs ).
Also the network is being run by nodes (P2P) instate of a central database. This reduces the costs of renting space, electricity, security, enz.

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#3710
  1. Transparency in the sense that everyone is able to verify transactions on a public blockchain.
  2. Based on encryption and the chain of blocks it is far more secure than other ledger technology.
  3. For each transaction there is an audit trail. Huge benefit regarding the provenance of any kind of goods or information.
  4. Increased efficiency and speed mainly achieved by cutting out the middlemen. For example for the transfer of money the opening hours of a bank wouldn’t be an issue in future transaction systems.
  5. All of the above reduces costs significantly.
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#3711

Transparent because all the transactions made are visible on the blockchain. Transparency makes it trustworthy.

It is more secure because all transactions made are permanently stored and can’t be tampered with.

All transactions can be traced. The supply chain of a certain product can be fully traced to make sure a certain product is for example 100% organic.

Blockchain is faster and more efficient then traditional payment methods as it removes the middlemen and uses P2P cross-border transfers.

By removing the middlemen it can significantly reduce cost.

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#3712

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

Transparency:

Anyone can look at the transaction ledger, it will give a lot of transparency and accountability. Specially consumer versus producer

Security:

Transactions are encrypted and recorded in the block. These blocks are also linked to previous blocks. The network verifies any new transactions for true or false entries, due to the decentralised nature it also gives it an extra layer of trust

Improved traceability:
Anyone can have a look into the ledger and see all the way back what each transaction came from (provenance)

Increased efficiency and speed:

By cutting out the middleman(s), less parties to deal with

Reduced cost:
It can cut cost by making several middlemen and third parties out of the transaction process in various industries

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#3713

Transparency:
Transparency it’s one of blockchain’s greatest assets. It allows all transactions to be viewed openly from the public ledger. Every player is made accountable and all works towards a common goal of company growth.
Security:
In the blockchain, security has been greatly improved upon, as every transaction it’s linked one another. Stored in a block of computers, chained to a ledger forming a link. It is then safe from hacking and impossible to be corrupted. Then a trustless way to transact it’s established, making each party accountable.
Improved traceability:
To be able to trace a good via a trail launched on the blockchain, this helps improve dramatically security, fraud or any wrongdoings. For example, With blockchain, musicians are able to receive equitable royalty payments, venues are able to curb counterfeit tickets and record companies can easily trace music streams and instantly pay all artists who contributed to songs or album.
Increased efficiency and speed:
Without the need of a middleman, the blockchain allows P2P transactions with digital tokens, becoming much faster and much more efficient. One major advantage for corporations to utilize blockchain technology is the cost savings associated with a faster network that is also incredibly secure and private.
Reduced costs:
Businesses are obviously concerned with their bottom line. When efficient systems like blockchain are adopted for everyday business processes, the need for third parties will be reduced or eliminated, saving money on company expenses.

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