Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#4057

Benefits of Blockchain:

  1. Transparency

a) Blockchain does not allow individuals or businesses to hide or “lurk in the dark”. Each transaction is linked to a specific account and available for public viewing. Participants know their actions can be exposed and this encourages good behavior (I don’t like to call this integrity because that is doing right when not watched).

  1. Security

a) The linked nature of blocks in the chain through math as well as the distribution of the blockchain makes its exceptionally difficult to manipulate past events. In my limited understanding of blockchain, currently, I’m not ready to fully comment on the overall security of blockchain or its ability to thwart attacks.

  1. Improved traceability

a) Similar to transparency, with Blockchain past events are forever recorded in “history” (on chain) and can be verified and linked to a specific account. Products created from collaboration of companies or other products can use Blockchain to track pieces of a final product back to their original parent company.

  1. Increased efficiency and speed

a) A result of decentralization, shared protocol, and wide adoption is speed and efficiency. Because transactions are not waiting on an individual or business to approve they do not get caught up in a paper weighted queue. Since everyone participating are following the same set of rules (protocol), each knows when and how to respond, time is saved during communication. Lastly, if there are a large number of global users, then transactions can happen quickly and globally.

  1. Reduced cost

a) Implementation of blockchain can be expensive, like most new technologies. From developers, to management, and infrastructure, blockchain is not a cheap solution once fully designed and implemented. However, there are several cost-effective methods to try out and use Blockchain. Two such opportunities are: BAAS (Blockchain-As-A-Service) and BiB (Blockchain-in-a-Box). Both offer relatively inexpensive ways for companies to try out, build, and adopt Blockchain and scale as they grow.

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#4058

  1. Blockchain makes every transaction visible to everyone.

  2. There is security because there are so many nodes on the blockchain that hacking is impossible.

  3. Improved traceability because everything can be traced through the chain.

4.Increased efficiency because all participants share the same documentation, reduces human error through automaton, data is quick and easy.

  1. Cost is reduced because the ledger through per to per removed the need for a middle man and replaces paper heavy processes.
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#4059

  1. Blockchain is a public ledger, meaning every transaction is open for all to see, that will make sure that company’s/institutions/ private person will have to act correct as we can always “follow the money” and see on what they spend when and to whom .

  2. Security - BTC is using the Blockchain technology, it means that’s every transaction made have to be approved by a nets of computers (nuds) those are working independently one from another and every one of them is holding a copy of the Blockchain data, in order to get a confirmation to a transaction a consensus have to be reached from the net. What makes it impossible to hack or using fakes BTC. Another part is when a transaction got approved it can’t be stoped or cancelled any more, so sell/buy scams are much harder to do.

  3. Because the system is transparent and every transaction is written in the block chain, we can follow the path of the money and be sure that for example the product we are buying contain also the ingredients/ material the seller is saying he uses.

  4. Because Blockchain technology is a 24/7/365 protocol system and is available for everyone, there is no need of using from a 3 Partie, what makes transaction fast and cheaper (beside using ETH at the moment with the crazy gas fees :sweat_smile:), another example are contract between 2 parties, as everything is happening automatically after a smart contract is made (still need technical personality, to correct bugs and implement the contract on the chain).

  5. Blockchain technology is a protocol, what makes a 3 Partie unneeded und save us the fees of Banks, middle man etc.

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#4060

  1. Transparency:
    Public ledger which is immutable

  2. Security:
    Independent checking all along the way and an audit trail

  3. Improved traceability:
    Able to track supply chain from manufacturer to distributor and ensure company is acting in best interests of stakeholders

  4. Increased efficiency and speed:

No middleman needed

  1. Reduced cost:
    Universal protocol which operates seamlessly in conforming to its own protocols
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#4061

1 As a public ledger, information on the blockchain is available to everyone.

2 Each transaction is encrypted and added to the blockchain making it incorruptible

3 Each transaction builds on the next allowing for an end to end trail

4 Efficient and fast due to send, receive, exchange method of execution… get rid of the middleman

5 Being decentralized, purely digital, and trust-less, there is no expensive bureaucracy to support .

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#4062

  1. Transparency:
    Every transaction is open/transparent and can be verified/checked by anyone (if we are talking about a public blockchain)

  2. Security:
    It is secure because you cannot cheat, it is trustless. And it is immutable. A transaction cannot be reversed. Everything that two or more parties need to agree on stands in smart contract. This contract cannot be changed.

  3. Improved traceability:
    Once you start storing information of e.g. a product on a blockchain it will forever be retraceable.

  4. Increased efficiency and speed:
    Not so sure about this one if we look at the current Ethereum-situation. Still, even with the current situation, a transaction is efficient because you need no middle-man and it is fast, because it usually happens within a few minutes. Compared e.g. to a bank transaction that can take days.

  5. Reduced cost:
    Since there are no middle-man necessary you can cut out all this costs. It is basically the transaction costs (miners, etc.) that have to be paid.

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#4063

Transparency: every transaction leaves audit trails and strengthens security (Trustless).

Security: once a transaction is completed, it is impossible to be altered or hacked.

Improved traceability: audit trails follow every transaction.

Increased efficiency and speed: blockchain excludes the middleman and promotes efficiency.

Reduced cost: increased efficiency goes hand in hand with reduced costs because there is less waste.

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#4064

Transparency: All transaction are kept on a blockchain ledger that is open for everyone to be viewed.

Security: The ledger is decentralized, held on blockchain across an network of computers. These blockchains are formed by a complicated string of mathematical numbers and is impossible to be altered once formed.

Improved traceability: Only confirmed blocks get into the ledger. Those ledger hold a record of the transaction.

Increased efficiency and speed: There is no middleman needed to process the transaction, so less fees. And with smart contracts the whole process is automated and can be triggered 24/7. Therefor also much quicker.

Reduced cost: No middleman, automated contracts leads to lower costs. Technologies like Wimble Mimble with streamline the process and also bring the transaction fees down.

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#4065

The Benefits of Blockchain Technology

Transparency:

Transparency, by blockchain definition , is the operating system that makes the public ledger open and visible to all users to see what kind of transactions were performed in real-time, and since all nodes ( i.e. computers connected to the blockchain network ) get a copy of the data due to this decentralized infrastructure, all users can determine that the transaction records are in fact legitimate.

For instance, when a miner is incentivized to solve a computational math problem to add new a block to the system, they can find on the public ledger the transaction of rewards for their work.

Furthermore, transparency also contributes to protect customers with validated information of supply chains and the quality and location of their products, prevent frauds and riggings of decision makings or elections, and ultimately verifying the purchase of products with a transaction process being displayed for all to see. These information cannot be altered due to immutability, visible to all party members, and were validated via consensus.

It is also important to note that transparency only displays the public key of the block for validation purposes; therefore, personal data will not be included in any form, as the private key is encrypted to protect its owners.

Security:

Blockchain possesses many security features which makes it a preferable and safe network system, especially for money:

Decentralization : Rather than storing data on a central server, blockchain instead is a data structure with a decentralized infrastructure. It consists of nodes (i.e. computers with users) that are connected to a network of other nodes, each receiving a copy of the data. This feature prevents data loss and hackings.

Provenance : The tracking system of blockchain utilized to identify in real-time the current location of a transaction by continuously record tracing its ownership history all the way to its origin. This feature replaced trust requirement in exchange for a computerized verification process through mathematical matchings.

Consensus: A decision-making process when all nodes come to a collective agreement in order to determine if newly presented data is valid or not. This feature prevents frauds and riggings.

Immutability : An object-oriented programming language in which newly created data cannot be delete nor editable. This feature prevents the modification and eradication of data.

Finality : Once a transaction had been made, it cannot be reversed. This features protects businesses from scammers.

Transparency : Besides your personal information, everyone can see you made that transaction. I already discussed this feature above. ^

Improved Traceability:

As previously discussed, provenance is the tracking system on blockchain utilized to constantly track all transactions, and since all transactions are blocks added to a chain of previous blocks, any person can trace it back all the way to its origins. Rather than relying on trust, there have been some supply chains that adopted this improved traceability system to clarify to their customers that the products they’re buying has that good quality and where they came from. A person can trace for an example the supply chain of an ice cream company to figure out that where they get their milk from, and trace that farm/ranch to figure out from where they get the food for animals. In conclusion, it is a trustless system because you no longer need to trust the company because you are given accurate information from the blockchain.

Increased Efficiency and Speed:

Blockchain provides a high availability network that runs 24/7/365 to allow audits of transactions in real-time. Furthermore, since Blockchain is a Decentralized platform that is composed of nodes tracing, verifying via consensus, and storing data, transaction processes become quicker and more efficient. Likewise, since blockchain solves problems mathematically, trust in third parties and central processing agencies are no longer needed; as a result, payment or smart contract processes are no longer slowed down and frauds are also prevented.

Reduced Costs

Reduced Costs are accountable by:

  • The Removal of Third Party Involvement
  • With that the rewards for the Middle Man is also eliminated
  • No Taxes involved in transactions
  • No Bureaucracy and heavy paper work processes.
  • Transaction fees are extremely minimal.
  • No Central Server Maintenance Costs
  • Digital Assets are practically Immaterial
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#4066

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

Transparency: Transparency is crucial to the effectiveness and efficiency of a blockchain. It is through this attribute that a trustless system may occur within a supply network. If company A and B both used decentralized blockchain technology, then company B would be able to check and see what kind of data company A has, and vice versa.

Security: With blockchain, there is an inherent increase in security over more traditional methods of data keeping and transactions. This increase in security is due to the fact that it takes a network of incentivized computers to verify that a transaction is valid, and once this transaction takes place, it cannot be undone. As stated before, this inherently increases security due to its immutable nature.

Improved traceability: Since each transaction is forever stored on the network, improved ability for traceability and auditing a given. If a company needs to trace where their product came from and all of the suppliers that went into the manufacturing of that good, they can easily do so by checking the public ledger.

Increased efficiency and speed: With blockchain technology, there would no longer be a need for a middleman with financial transactions. This would reduce cost and increase the efficiency of transactions.

Reduced cost: Like it was previously stated, if companies began largely using blockchain for their data recording and transactions, there would no longer be the need for a middleman; which in turn reduces costs.

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#4067

Transparency: Public ledger is open for everyone to see transactions.

Security: More nodes = higher security 24/7 365 days a year

Improved traceability: Can track products of where it’s been and where it’s going to

Increased efficiency and speed: Removes middle man and uses global nodes to verify transactions

Reduced cost: Removes middleman and not centralized

/ Viktor

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#4068

Transparency:

-The public ledger is open to viewing.

Security:

-The decentralized network increases security. All transactions can be verified.

Improved traceability:

-An audit trail with each exchange proofs where the goods came from.

Increased efficiency and speed:

-Blockchain removes the need for middlemen in many processes, P2P-crossborder transfers, automation of agreements.

Reduced cost:

-Removal of the need for middlemen in many processes, real time automated auditing.

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#4069

Transparency: Because everything has to be verified by multiple nodes, it is not easy to lie or hide something. Since everything is stored in the blockchain, the history is accessible to everyone

Security: The trustless verification allows for security without trusting a third party

Improved traceability: Because every step on the way for goods from producer to consumer, can be documented in the blockchain, we can trace it

Efficiency and speed: More efficient to go p2p without middlemen/3rd parties

Reduced cost: In many areas. Like Theta don’t need central servers. And no need to pay middlemen

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#4070

  1. Transparency:
    Publically visible to any and every one.

  2. Security:
    Trust is placed in math and protocol versus an individual or organization. There’s uniformity in the usage.

  3. Improved traceability:
    Through provenance, transactions can be tracked in real time. Nothing can be altered during the process.

  4. Increased efficiency and speed:
    Blockchain allows for peer-to-peer interaction. Thus, it eliminates the need for an intermediary. An agreement is made using a smart contract, financial transactions done using a cryptocurrency, and real time records are owned and available for viewing by all parties involved.

  5. Reduced cost:
    Blockchain can help with cost reduction by eliminating the need for a third party’s services.

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#4071

  1. Transparency:
    The blockchain provides an immutable ledger than visible in the public domain.
    The transactions are approved collectively by decentralized nodes.

  2. Security:
    The blockchain cannot be modified or deleted, entries can only be added. The decentralized nodes are spread over a wide geographical network. verification of transactions are through consensus. Difficult to hack because not concentrated in one place. It is trustless because it relies on verification protocol.

  3. Improved traceability:
    The blockchain cannot be modified or deleted, entries can only be added to the database so all the entries from inception are there to be viewed in the public domain. .

  4. Increased efficiency and speed:
    The network operates 24/7. It removes the need of a middle man. It relies on protocol not human humans. Borderless transactions over the internet network. Not geographically in one place so spread over different time zones.

  5. Reduced cost:
    No need for middle man. Relies on protocol and not human involvement. Removes expensive 3rd party trust and rather relies on protocol and verification mathematics.

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#4072

Transparency: data is visible and accessible to everyone.

Security: consensus, decentralized

Improved traceability: honesty, every transaction/product can be traced. No space for fraud or theft.

Increased efficiency and speed: no middle man needed. Peer to peer.

Reduced cost: no third party fees or charges.

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#4073

  1. Transparency: The data on the blockchain is shared and available to all participating networks. everyone on the network uses the same ledger making it easier to proof the transaction even existed making it transparent.

  2. Security: Security is enhanced by consensus. After a transaction is verified, it’s inserted in the blockchain and it is linked with all the previous ones.

  3. Improved traceability: The entire blockchain is public, this allows us to trace where our transactions went and came from

  4. Increased efficiency and speed: transactions can be completed faster and more efficiently on a blockchain. All participants have the same digital ledger, clearing and settlement can be done much quicker. In a manual system you leave scope for many different type of human errors.

  5. Reduced cost: Blockchain cuts out third parties and middle men because their no longer needed.

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#4074

Transparency: All transactions are public. There are no shady deals under the table.

Security: Technically unhackable. You cannot falsify transactions.

Traceability: All transactions ever made are able to be tracked and investigated if need be.

Efficiency/Speed
Reduced cost : P2P renders no need for a middle man. No need to pay a middleman.

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#4075
  1. Transparency: good for all parties involved, everyone knows exactly what there getting, and the previous history of it (supply chain example).
  2. Security: because the blockchain network is so large on a global scale there will always be people mining, which makes the network more and more secure from attacks.
  3. Improved traceability: like the cow to yogurt supply chain example used, we can identify the status and the exact ingredients of a product though its entire life cycle, from raw material all the way to finished product the customer purchases.
  4. Increased efficiency and speed: removes the need for a middle man in many fields, allowing for faster transactions.
  5. Reduced Cost: removing middlemen in itself will reduce cost in any operation.
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#4076

  1. Blockchain is a fully audited database which information first needs to be verified, then once it has been verified it get recorded and then it becomes unremovable and as such transparent for all to verify. Thus a trustless system is created in which all can check.

  2. Via greed or self interest a blockchain is created with security as numerous entities have the “database”. You can not attack all the nodes/servers/etc

  3. Blockchain provides all the work that has been created anyone can see all inputs and outputs.

  4. Only one digital ledger so everyone can access

  5. no middlemen are needed to reduce costs and information is real time.

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