Reading assignment: Benefits of the Blockchain technology

[LukeS]

1)Transparency: With greater transparency everyone is held more accountable therefore incentivizes them to be honest.

2)Security: A network of computers confirm transactions and then all add the that information onto their ledger. This information needs to be uniform with all computers for them to agree. This cuts down the possibility of being hacked or falsifying information

3)Improved traceability: Once recorded on the blockchain, the transaction has an audit trail that can be viewed by anyone. Both sides can be traced which can help with preventing fraud.

4)Increased Efficiency and Speed: It removes the need for a third party to facilitate transfers, therefore speeding up the process.

5)Reduced Cost: With the elimination of a third party more savings are had by both parties.

[Hallow]

1. Transparency: By having the ledgers public anyone can see what transactions have been made and to who.
2. Security: By not being able to modify the information of the transactions or to deny that the funds have been received or charge back the funds.
3. Improved traceability: Every transaction and provenance of funds can be traced.
4. Increased efficiency and speed: By not depending on third party suppliers this has increased efficiency and speed. Also tracking, auditing is done faster by the principles of blockchain.
5. Reduced cost: By not depending on third party suppliers also reduces cost.

[Dawton]

1. Transparency is beneficial for many industries as it provides undisputable and verified record of events that cannot be altered.

2. The security of a trustless system is essential because it removes the need for a third part or an appointed entity to control the data. Therefore making it more secure as the data is verified by multiple entities.

3. The transparency of the blockchain makes every transaction tracable which is beneficial for speeding up audits and correlating data.

4. This increased efficiency and speed saves time on accounting. And tracing of the supply chain in the event of problem.

5. The above reduces cost as there is no need to pay for a third part to store or collect data. And less time involved in audits. Saving the company money.

[Alex_Carr]

1. Transparency:
   Blockchains public ledger is open for viewing

2. Security:
   Blockchain is formed by complicated strings of math and is impossible to be altered. Each new transaction is encrypted and linked to the previous transaction. The immutability of blockchain makes it safe from hackers. Blockchain is a trustless system based on consensus.

3. Improved traceability:
   Every exchange is recorded on the ledger and audits can be performed in real time

4. Increased efficiency and speed:
   Blockchain removes the need for a middleman. Blockchain allows p2p boarder transfers. Smart contracts automate these transactions

5. Reduced cost:
   For the reasons listed above costs are reduced for businesses by increasing efficiency of transparency, improved traceability and increased efficiency and speed. This removes many human and third party applications of business that are based on trust. Efficiency = savings.

[Chefoceans]

Transparency on the blockchain is the distributed ledger being visible for everyone to see. There has to be a shared agreement or consensus before approving or updating anything.

Security on the blockchain is a multi -part process, there has to be agreement before transactions are recorded. Transactions are encrypted and linked together. The network is decentralized among multiple computers not a single server.

On the blockchain all transactions are recorded permanently so there is a track record that can trace a product from origin to destination and everywhere in between.

The blockchain ensures the streamlining and automation of data automatically. This ensures increased efficiency and speed. Due to everyone having access to the same data it is easy to trust each other.
Due to increased 1. Transparency on the blockchain is the distributed ledger being visible for everyone to see. There has to be a shared agreement or consensus before approving or updating anything.

Security on the blockchain is a multi -part process, there has to be agreement before transactions are recorded. Transactions are encrypted and linked together. The network is decentralized among multiple computers not a single server.

On the blockchain all transactions are recorded permanently so there is a track record that can trace a product from origin to destination and everywhere in between.

The blockchain ensures the streamlining and automation of data automatically. This ensures increased efficiency and speed. Due to everyone having access to the same data it is easy to trust each other.

Due to increased speed, as a result of streamlining and automation, the result is reduced cost. The data on the blockchain can be trusted by all parties. and speed, as a result of streamlining and automation, the result is reduced cost. The data on the blockchain can be trusted by all parties.

[Eric_Roberts]

Transparency: blockchain technology increases transparency in that all transactions or pieces of information are publicly verifiable by all users of the relevant network.

Security: given that a blockchain is decentralised, it cannot be made subject to corruption or hacking attacks in the same way that centralised networks can be.

Improved traceability: blockchain technology improves traceability in that transactions are publicly verifiable (e.g. each bitcoin can be traced back to when it was first mined).

Increased efficiency and speed: blockchain technology enables networks to be operating 24/7/365.

Reduced cost: blockchain technology enables users to transact directly with one another (i.e. peer to peer transactions) without the need for any third parties.

[Tomaz]

1. Transparency:
   Transparency in my words means honesty. You have to make correct actions due to the public ledger. The integrity of the stakeholders makes the network trustable and secure.
2. Security:
   You are securing a transaction by putting it into a block. Then making a chain of blocks on a ledger and then dispursing this ledger to different miners makes blockchain more secure than other record keeping systems.
3. Improved traceability:
   Bitcoin ledger is public and transparent, therefore you can trace, audit, prevent fraud and verify the transactions to improve security.
4. Increased efficiency and speed:
   No middlemen, no extra processes. Blockchain facilitates faster transactions. I many cryptocurrencies you can use smart contracts to replace traditional protocols. Blockchain is a fast and automated process replacing traditional ones.
5. Reduced cost:
   No middlemen mean fewer costs. Programmable value tokens add additional features to the chain, by doing this you replace the traditional ones. Automatisation of the processes also reduces costs.

[CornArtist]

1. Transparency: Everyone can access the network to verify transactions and data. This helps both the companies and customers in both ways as it gives customer the full transparency and thus gaining customers’ and its community’s confidence.

2. Security: Ledger is kept throughout the network, achieving Consensus. With more people in the network, the more secure it is. Everyone in the network are also incentivised to keep the network secure. Blockchain is able to remove falsification and keep its environment trustless as it is decentralised.

3. Tracing transaction can be done easily without having the need of a third party company auditing the asset or transaction. Through blockchain, verification of authenticity can also be easily done.

4. Transactions can be done swiftly across borders/countries without the need of going through a central authority or entity.

5. No manpower required to exchange the asset/commodity. Fees of going through entities are also removed, and only a network fee is required to approve the transaction.

[jerre]

1_ Transaparency:

All aspects of the trade are public knowledge and thus all concerned are accountable for their part in it.

2_ Security:

All transactions are encrypted and recorded on the blockchain, all this data is available on every node. making it impossible to tamper with. Consensus must be reached before it is added.

3_ Improved traceability:

Every action on the blockchain has a public trail, all with interest can follow and audit.

4_ Increased efficiency and speed:

The architecture of blockchain does away with the need to dig deep into administration, removing some timeconsuming jobs and middlemen. Smart contracts, proof of ownership and the like does away with filing of documents (and notary costs in some cases)

5_ Reduced costs:

As stated above, it does away with third parties who consume time and money.

[davidonair]

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

Transparency:
because you can not alter the information and that it is distributed, decentralised, public
all the nodes have the same information

Security:
it is immutable, unhackable thanks to cryptography, mathematics and the added block is linked to the last one to build an immutable chain of blocks
all the nodes have the information, so it is repeated,

Improved traceability:
history is accessible

Increased efficiency and speed:
no middleman needded, trustlessness
no paper reduces human errror, based on the hash and possible automation

Reduced cost:
replace paper processes: no human error
no need to cross check multiple data sources
no intermediaries services that are charges fees

[Ciantera_R]

Transparency: Disintermediation or removing the middleman, allows for peer to peer transactions. Eliminates the inefficiency of 3rd party vendors when it comes to the transfer of value between parties and is handled by the Bitcoin Network. The ledger is always available for public viewing.

Security: Instead of having a centralized database at a third party such as a bank to certify that a transaction took place, Bitcoin uses blockchain technology across a wide decentralized network of computers to securely verify, confirm and record each transaction. Bc the data is stored in a decentralized manner across a wide network instead of a centralized database there is no single point of failure. This makes the records which are stored on blockchain more secure and less prone to fraud, tampering or general system failure than keeping them in a single centralized location.

Improved traceability: The blockchain ledger provides an audit trail for every transaction, improving security and verifying authenticity of traded assets.

Increased efficiency and speed: Blockchain allows for distributed ledger technology where you can have multiple copies of that blockchain and spread them across a decentralized network. This creates a permanent, secure and unalterable record of who owns what. A single source of truth permanently recorded on Blockchain. Using advanced cryptography, “Information integrity” is preserved, giving digital fingerprints of every single transaction that happens.

Reduced cost: Automation, because it’s running on a blockchain, the programming will be self executing and is immutable. So you can rely on the contractual obligations being done automatically w/o relying on a third party. Reduces cost w/o 3rd party.

[jctaylor9210]

1. Transparency allows for greater trust and a better network because it can be changed and improved instead of opaque and hidden with flaws.
2. We don’t need to trust each other to transact helping keep hacks and scams away.
3. Helps with proof of ownership
4. Eliminates the need of a middleman which is the cornerstone of improving business.
5. Greater efficiencies and all the benefits added above will help reduce costs by lowering mishaps in inventory, human error, and eliminating middlemen.

[JJG2323]

Transparency- ensures faith in the system and keeps its participants honest with a high level of
accountability. All transactions are open to be viewed by the public.

Security- Blockchain technology provides finality which ensures that all transactions on the chain
final. No reverse transactions.

Improved traceability- Items in a supply chain may now be accurately tracked. Thus giving customers
confidence in what they are buying. For example, coffee that ends up in your
cup can now claim to have certain origins that can now be verified.

Increased efficiency and speed- By removing the middleman in many transactions the information is
handled in a more efficient manner. The speed of a transaction is
faster because people can move digital currency in a P2P manner.

Reduced cost- a P2P network of exchange can be more cost efficient as the need for a middleman is
reduced. The cost of sending digital currency is also less than today’s traditional
means of money transfers like wires at a bank and fees at a Western Union.

[CoinCrave]

Transparency
Blockchain is transparent because it is public and everyone who wants can verify the data.

Security
Blockchain is a network of computers acting as validator nodes to confirm all the transactions happening. Anyone who wants can run a node on their pc to personally help validate transactions happening on the network, but no one can change any of the information on the stored on blockchain. This means that no one can cheat and false coins will be rejected by the validators . Transactions are also irreversible. This and more makes up a trustless system where you don’t need to trust any person but instead trust math and protocols.

Improved traceability
The data is permanently stored on the blockchain and can be used to trace goods and help verify that the package is authentic.
One regular usecase would be to verify the quality of the food you are purchasing from the local store. If food and ingredients brands of all sorts chose to or were forced to by the governments to trace and quality check all products using blockchain, then the consumer would be able to verify the actual quality and authentency of any food themself just by scanning the product QR code without simply just trusting what the company tells you through advertising.

Increased efficiency and speed
Blockchain is stored on the internet which means that anyone with internet access can store and send crypto instantly to anyone anywhere in the world.

Reduced cost
There is no middlemen or third party services needed when operating on a blockchain. Less people and services involved means reduced cost. This is very benefitial for people/banks that needs to move large sums of money around the world in a fast, safe and cheap way.

[asvpxroland]

1. Companies would have to act with integrity at all times due to transaction data stored in the blockchain being available to the public to see. Not a single could alter any data due to consensus.
2. All transactions are encrypted and linked together through a mathematical equation that’s impossible to hack. This leads to blocks of data being formed and added to a ledger which is ultimately forming a “blockchain”. This creates a trustless environment where strangers can practice business and do transactions with each other.
3. Blockchain tech can improve traceability by preventing fraud in exchange-related business and authenticate the origin of a company’s goods and services. Items such as ingredients, or location of any distributed product cannot be falsified, leading to a better trust between seller and consumer.
4. Since there are no middlemen or a central institution acting as an established authority, funds and transactions can happen much quicker and easier in real-time. Items such as smart contracts can be used to facilitate agreements between a tenant and landlord.
5. Blockchain tech removes the need for middlemen, making everything a peer-to-peer trustless environment.

[Pakeshi]

1. Transparency: transactions in the blockchain are open to anyone to see and review.
2. Security: each transaction is linked to the previous one and it is final, once done it can’t be changed.
3. Improved traceability: in every transaction the autenticity of the goods can be verified and tracked. Also the whole supply chain is traceble from origin, to raw material, to finish products.
4. Increased efficiency and speed: No trust between parties is necessary to make business with strangers. And no middlemen between transactions makes pier to pier trading borderless, fast and simple.
5. Reduced cost: fast tranasctions and no middlemen reduce costs

[birdie]

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

1. Transparency: blockchain is transparent because anyone can see the data on the blockchain
2. Security: blockchain is secure because data on the blockchain cannot be changed
3. Improved traceability: blockchain improves traceability because where a transaction came from or the history can be tracked
4. Increased efficiency and speed: blockchain increases efficiency and speed because everyone is using the same protocols
5. Reduced cost: blockchain reduces cost because there is no middleman facilitating transactions

[Nainer]

Benefits of using a blockchain:
1/ Transparency - an open ledger of transactions available for public and all the partners involved in a business, making everyone responsible to participate with integrity;

2/ Security - keeping all the transactions encrypted and linked to the previous transaction in a a network of computers that contain all the same information formed by a complicated string of mathematical numbers and is impossible to be altered once formed;

3/Improved traceability - the blockchain ledger record each time when an exchange of goods is made and an audit trail is present to trace where the goods came from;

4/ Increased efficiency and speed - by removing the middleman and allowing P2P transactions cross-border without extra taxes, blockchain technology creates a system that develop with more speed and efficiency;

5/ Reduced cost -in blockchain cutting out the need for third parties or intermediaries means less expenses going to different kind of those services.

[MikeThunderGod]

Nice training chapter and exercices, thanks @ivan and other course creators.

1. Transparency
   • There is a public ledger replicated on many network nodes always available and containing all transactions since the beginning of time that can be analysed and audited at any time.
2. Security
   • Encryption is at the center of the cryptocurrencies, hence the name. Block confirmation by many decentralized entities ensure a concensus is obtained and that no invalid or corrupted transaction is integrated in the network. The principle of public ledger remove the possibility to alterate the history of what happenned on the network since blocks can’t be corrupted, removed, falsified or modified. Audit can be done at anytime on the publicly available lisyt of transaction allowing to trace easily a bad actor.
3. Improved Tracability
   • All transactions since the beginning of time are recorded on many network nodes which allow the verification of authenticity of actions done on the blockchain. NFTs also ensure the digital fingerprint of an unique item can be traced and verified.
4. Increased efficiency and speed
   • The trustless system remove the need for a middle man thats ensure trust and realized costly and slow verifications and audits. Smart contract and protocols allow automation to speed up many processes.
5. Reduced costs
   • With the decentralized nature of the blockchain, there is no need for a centralized authority which requires a more performant and robust system where all transactions need to go throught with complex and log verification process that can sometimes take days and time is money. New optimized blockchains also allow for fewer electricity and computing power requirements with PoS or DPoS or simplier algorithms to make the network work properly. investigation and audit can also cost a lot of time and money to realized in typical IT infrastructure to bring a little more trust. The trusless nature of the blockchain and the complete tracability also prevent a lot of bad actors to corrupt the chain of supply and inject falsified components or cheaper good which degrade the quality of the final products and can hurt someone’s brand if what is sold isn’t the real advised product.

[Antonio_M]

Transparency: Yo can trace and analize all movements made looking in the ledger.

Security: Mathematically programed to be imposible to change.

Improved traceability:You can follow all the goods chain recorded in the blockchain.

Increased efficiency and speed:No middleman.

Reduced cost: Simpler and straight forward.