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Transparency is one of the benefits of blockchain. It allows all parties involved in the transaction to see whether the transaction is completed, the process it went through and if there were any changes made along the way. Every step is publicly available and it removes the issue of ‘Trust’ placed by one party to another. If applied to government funds, blockchain will eliminate corruption because every transaction is publicly available.
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The security aspect of blockchain means that once a transaction is made it is linked to other transactions and embedded in the records. Which means it cannot be altered once the transaction is placed. Furthermore, there are numerous computers with the same data and can check whether the transaction is true or false.’
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Improved traceability means that transactions can be tracked from where it came from. For example, If it is not there then it means it did not happen, and if a transaction is recorded that means it happened. Using over-the-counter medicines for example, manufacturers can have various claims on their products which may be true or not but if it is recorded in the blockchain every process that the product went through can be tracked and confirmed.
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Increased efficiency and Speed points to the transaction process. Say a family member working abroad can transfer payments to his family at home directly, without going through currency exchanges, banks and other financial intermediaries. The time spent from the payment changing hand to hand is eliminated and makes the process more efficient
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Reduced Cost: Eliminating the need for financial intermediaries means there are no added fees to be paid for third party services. Ordering a book directly from the author instead of going through Amazon or other online shops that places additional fees on the original price of the book.
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency: Ledger is open to the public which leads to greater accountability and transparency.
- Security: New transaction is encrypted to the previous transaction. It’s decentralized the formation of the blockchain from a block and a chain make its impossible to corrupt. It’s trustless nature also provides security.
- Improved traceability: The ledger provides accountability and traceability and creates decentralized auditability.
- Increased efficiency and speed: No middlemen and transactions are borderless which reduces time and increases efficiency with transactions carried out on a unified system.
- Reduced cost: Removing the middlemen decreases the cost of the transaction
Transparency:
It’s ledger is open to viewing, this leads to unprecedented accountability.
Security:
More secure then other record keeping systems. Immutability makes it safe from falsified information and hacks. Decentralized nature makes it trustless.
Improved traceability:
Every transaction leaves an audit trail. This can also be used to verify authenticity in supply-chain dependent industries.
Increased efficiency and speed:
No need for middleman. Processes are made more efficient with unified system of ownership records.
Reduced cost:
Middleman not needed and more efficiency leads to reduced cost.
Blockchain network was build in 2008 to be the most safe and trustfull financial database ever .Why? because the money are digital , fast transactions because once you done it the network start to build your blockchain with all the details , approved by the computers and store it in a ledger forever and can be verified by anyone , anywhere. Blockchain technology was build to be safe and unhacked by anyone because all the transactions are not stored only in 1 server , node or database but in all computers on the network so that it is impossible to steal or delete something, blockchain technology being built from the beginning to be reliable because any transfer made and approved can be checked at any time but once done can not be canceled or reimbursement. It is a safe technology because it uses the same infrastructure and the same standards for everyone in which you cannot cheat. Also, blockchain technology is not only for financial transactions or trading but can be implemented in industry where you can track absolutely everything that happens to products from manufacturer to distributor without mistakes, destruction or loss of information as can happen in a system centralized data where there is only one provider. As long as there are a large number of miners who will validate the transactions, the faster the system will be and of course it is fast because there are no more intermediaries, it is an efficient, safe and cheap peer to peer technology.
1. Transparency:
Blockchain enables transparency because all transactions recorded on the network are made public not only to the participating nodes in the network but to everybody else, i.e. the ledger onto which transactions are recorded is a PUBLIC ledger.
2. Security:
Security on the blockchain is enabled in 2 ways.
First by eliminating the central authority or central database, which is always hackable and/or corruptible. Since many participants on the network (i.e. nodes) must verify transactions and every one of them is incentivized to do so correctly via monetary reward, the chances of any one or multiple parties becoming bad actors is reduced.
Lastly, since verified transactions are encrypted and added to the blockchain and are thus immutable, this adds another layer of security.
3. Improved traceability:
This follows from number 1. Because transactions are made public (the blockchain ledger is a public ledger) this means that any one or a given set of transactions can be traced greatly improving traceability.
4. Increased efficiency and speed:
Due to the trustless nature of a blockchain network, it eliminates the need for middlemen resulting in increased efficiency and speed. For e.g. smart contracts automating the process of buying real estate is one example discussed in the article.
5. Reduced cost:
Building on number 4 above, once middlemen are eliminated in blockchain (due to its trustless nature) then this naturally will result in reduced costs for people that transact on the blockchain.
“Transparency” for a Blockchain means that all transactions are recorded, linked and open to viewing by anyone. This feature of “transparency” of Blockchain holds businesses and individuals to greater accountability and integrity, than traditional transaction/record keeping systems.
Transactions on Blockchain are encrypted and immutable/irreversible. This makes Blockchain very secure and safe from falsified information, fraud, and hacking.
Blockchain’s traceability is that an audit trail is present for all goods exchanged on a Blockchain, to trace where the goods came from. This feature of Blockchain helps verify the authenticity and ownership of goods.
Blockchain being transparent and decentralized cuts out third parties that are present in traditional transaction/record keeping systems. As a result, Blockchain facilitates faster peer to peer transactions with a digital currency.
Due to the benefits of Blockchain, greater transparency, enhanced security, and easier traceability and the way the whole system is streamlined on a network of computers, it’s operation and maintenance costs less than a traditional transaction/record keeping systems.
Reading Assignment: Benefits of the Blockchain Technology
Explain with your own words, why these are the benefits of using a blockchain.
Transparency:
Blockchain provides an open verified audit trail of all transactions that is publicly available. The Benefit arising from this transparency being value directly accrued by the parties through the promotion of increased accountability and integrity. The audit of the transaction data hence ensures honest practices between the parties (businesses, clients, customers) for a given transaction.
Security:
Transactions are linked through the Blockchain, confirmed through computation of unique hashes of the transaction data content. Once written, to the decentralised blockchain; it’s immutable. This level of permanence in the audit provides the basis for trust-less safe transaction processing between parties, even though they are complete strangers.
Improved traceability:
The ability to follow the audit trail and verify the authenticity of transactions for e.g. ingredients if food products, of chemistry used in medicine, supply chain (goods), finance etc virtually eliminates the possibility of fraud or a hack when this level of due diligence is possible.
Increased efficiency and speed:
Mid level agents and brokers are not necessarily required as the Distributed Blockchain Technology acts P2P seamlessly across the global [Bitcoin] network.
Additionally, Smart Contracts enable business process encapsulation of the requirements for particular Use Cases to be automated both repeatedly and efficiently across the network.
Reduced cost:
Through leveraging the benefits of blockchain as described…
• Use of a preexisting network infrastructure, in place and working;
• Savings in capital outlay for infrastructure;
• Developing new Business specific applications;
• Reduce and/or eliminate ongoing running costs: Decommissioning Legacy Systems, and;
• Profits accrued from benefits of implementing blockchain—implied under headings above.
Transparency: All transactions are registered on the public ledger which creates responsibility. The public ledger is viewable and this creates accountability.
Security: Firstly such transactions are decentralised and is not controlled by a third party. Transactions are recorded on a public ledger which is confirmed by a network of computers verifying transactions. This transaction then confirms a block which is added to the ledger creating a chain – so new transactions are linked to previous transactions making it impossible to hack.
Improved traceability: Traceability is important for supply chains – every time a transaction occurs and products change hands, this can be recorded on the blockchain. Therefore every step of the way, one can confirm the origin and finished product supply chain.
Increased efficiency and speed: Put simply you don’t need brokers or middle people to complete a transaction. Rather than going through the centralised system one will trade directly allowing for digital currency to change hands.
Reduced Cost: increase in efficiency, not the requirement to pay brokers.
- Transparency:
With blockchain technology each transaction is register in a digital public ledger and anyone can see all the transactions that were made from the beginning to the last one. Anyone can see from who and for whom the transaction was moved and this information stays resgistrated for forever. So is the best transparency system.
- Security:
Blockchain is a decentralized network on every transaction must have de consensus of millions and millions of computers (nodes) to be registered in a block and each new block is associated to the block before, so ist’s practically impossible to hack (change) the network. And is even more secure than any other centralized system because you don’t depend on a single entity, you don’t depend on human trust, just in mathematical calculations.
- Improved traceability:
Each transaction can be traceable from anyone at any time and forever.
- Increased efficiency and speed:
Because you don’t depend on any entity the transactions are made almost instantly and from anywhere to anywhere, you don’t have political or country borders.
- Reduced cost:
Because you don’t have the middle man, country borders and currency exchange rates, the cost of the transactions can be very reduced.
- Transparency: Everyone can see the public ledger and what transactions have happened since the beginning of the investigated blockchain.
- Security: It is secure, because the encryption is based on math and not on third parties and builds up trust based on the blockchain nodes confirmations.
- Improved traceability: The public ledger allows us to trace all transactions. It can be checked the origin of the coins or other items which was sent on the blockchain.
- Increased efficiency and speed: There is no middlemen, the transaction can be done immediately.
- Reduced cost: Third parties may increase transaction costs and other account managing costs, however we may reduce these expenditures using blockchain networks.
- Transparency: Ledgers are public and fully accessible
- Security: decentralization makes hostile takeovers virtually impossible
- Improved traceability: allows full accountability and easy issue identification
- Increased efficiency and speed: removes all middlemen from transactions, saving time
- Reduced cost: removes all middlemen from transactions, saving money
Transparency: Blockchain is setup on an open ledger system. Anyone can view this ledger. This incentivizes accountability and honesty. No party can lie about a transaction as its public and immutable.
Security: All blockchain transactions are encrypted and setup in a way that once approved it cannot be erased or altered. Every part of the chain has this record and all parties would have to change records at same time which is impossible.
Improved traceability: All transactions can be tracked from the time, value of purchase and also the destination/result. These records are permanent and will always be accessible, also these records can be used further to identify inefficiencies or problematic areas of the process.
Increased efficiency and speed: Blockchain is one system. Centralized systems work with different rules and have a lot of steps in between the start and the end, they are restricted by time availability, people who are working within the system might not be doing their job and decentralized systems are just plain inefficient. Blockchain solves all these problems.
Reduced cost: Processes over the blockchain are faster, more efficient, require no trust, no insurance, no middlemen, no added costs on top.Explain with your own words, why these are the benefits of using a blockchain.
Transparency: A transaction ledger is open to the public to see holding each sector of the business accountable.
Security: Each new transaction is encrypted and liked to the last one. Blockchain is formed by a string of mathematical numbers and cannot be altered once made. With immutability and Finality its safe from manipulation and hacks.
Improved traceability: Because there is an audit trail; which can help verify authenticity of the traded asset ,or to track supply chain from beginning to distribution, or proof of ownership.
Increased efficiency and speed: Because it’s decentralized so no need for middlemen, faster transactions by allowing Peer to Peer cross boarder transactions. Also used of smart contracts.
Reduced cost: By elimination of third parties or middlemen fees. Also by having the audit trail, everything can be checked.
EXPLAIN WITH YOUR OWN WORDS, WHY THESE ARE THE BENEFITS OF USING A BLOCKCHAIN.
- Transparency:
- Blockchain transactions are visible to the public, which hold its users to act with integrity.
- Security:
- Blockchain security is built on decentralization and consensus. However, what gives blockchain increased efficiency is immutability—the ability to remain unchanged, unaltered, and indelible.
- Improved traceability:
- The blockchain ledger has an audit trail and can trace the entire life cycle of any product such as, finance, medicine, and supply chairs. Traceability adds credibility, efficiency, and safety to the blockchain process.
- Increased efficiency and speed:
- Blockchain allows peer-to-peer transactions around the world, with no need for middlemen and additional fees.
- Reduced cost:
- Peer to peer transactions reduces cost because there is no need to pay third parties. At the same time, these ledgers, which cannot be changed also prevent fraud because of checks and balances between the global network protocol.
Transparency:No onecan change the data once its on the blockchain don’t trust verify
Security:blockchain is decentralized network so it’s hard to hack.
Improved traceability:blockchain store all the data there’s no secret everyone on the blockchain can access the data.
Increased efficiency and speed:In blockchain there’s no third party it’s peer to peer.
Reduced cost:The blockchain run by itself so less people less cost.
Transparency: It adds accountability for Business and Governments as transaction ledgers are open to being viewed
Security: Blockchains have increased security due to their decentralised nature meaning its harder to hack than centralised databases. Transactions also cannot be reversed so it is trustless
Improved Traceability: Since transactions cannot be changed or removed from the blockchain it becomes very useful in audits as you can confidently verify the authenticity of an asset and the supply chain that it travelled
Increased efficiency and speed: Since blockchains are decentralised it removes the need for middlemen and smart contracts can automate agreements
Reduced costs: Removing the middlemen and automating smart contracts reduces the costs as you now no longer have to pay someone to fulfil those services
Explain with your own words why these are the benefits of using a blockchain.
- Transparency: Since each business can be held accountable and their information can easily be found, you eliminate trust and allow strangers to work with strangers in a trustless exchange. There’s no way to fake a transaction or balance thanks to the hundreds of thousands of nodes that run and verify the validity of transactions (consensus). Those nodes also create a system that provides incredible security over the network, since a hacker would have to almost simultaneously compromise the majority of the nodes, something most hackers can’t do.
- Security: The string of mathematical numbers is unable to be altered once it is written, it’s basically like writing something in stone. No one can come and take your data, currency, fake transactions or balances, or anything of that sort. Thanks to blockchain’s decentralized nature, it is trustless, enabling a user to have transactions with a stranger, confidently.
- Improved traceability: Thanks to the blockchain ledger, each time a transaction of any sort occurs, you can trace where the good being traded came from (audit trail). This helps prevent fraud and improve security even more.
- Increased efficiency and speed: Blockchain removes middlemen from many fields and actions, due to it’s decentralized nature. This occurs thanks to: [1] It is constantly online and can be accessed anywhere you have an internet connection. [2] P2P transactions anywhere in the world with a digital currency.
- Reduced cost: Data is incorruptible and removes the trust since everything can be verified and traced. It removes middlemen and, in doing so, reduces the cost.
Transparency:
All transactions recorded on a public ledger that can be viewed or audited by anyone
Security:
The decentralized unhackable blockchain is built by a network of computer nodes that verify each transaction by multiple consensus. This is achieved by solving complex mathematical algorithms that are added to each block which is in turn connected to each previous block. creating the blockchain. Once a transaction is on the chain, it cannot be altered or changed
Improved traceability:
Since every transaction is recorded and traceable on the blockchain, all transactions can therefore be traced
Increased efficiency and speed:
By removing the need for middlemen or 3rd parties, speed and efficiency is improved
Reduced cost:
Middlemen and 3rd parties increase fees. by removing them, costs will decrease
Transparency: Blockchain is trustless and brings the possibility to anyone to have access to its network and see how the data is being managed witch makes it transparent and decentralized.
Security: Blockchain technology distributes information across a network of computers via a single immutable ledger and for any changes to be made to the data, there must be consensus by most of the participants in the network (miners, validators, nodes, etc.). Truthful consensus is further incentivized or disincentivized monetarily.
Improved traceability: It is easier to track the origin of a product in a complex supply chain when recorded on a block-chain. This Improved trace-ability as every transaction leaves a trail, verify the authenticity of assets and prevent fraud.
Increased efficiency and speed:With blockchain we can avoid paper processes, that are often bound to human errors and third party mediation. With blockchain, transactions are quick and efficient, and since all the records are performed in one ledger shared in the network, all the participants have access to the transactions/information making it easier to trust each other. Any middleman will be left out.
Reduced cost:No middlemen needs to be involved because you trust the data in the ledger, which is cost cutting.
1 Greater Transparency
Blockchain’s greatest characteristic stems from the fact that its transaction ledger for public addresses is open to viewing.
2 Increased Efficiency
Due to its decentralized nature, Blockchain removes the need for middlemen in many processes for fields such as payments and real estate.
3 Better Security
Blockchain is far more secure than other record keeping systems because each new transaction is encrypted and linked to the previous transaction.
4 Improved Traceability
With the blockchain ledger, each time an exchange of goods is recorded on a Blockchain, an audit trail is present to trace where the goods came from.