Reading assignment: Benefits of the Blockchain technology

[P.T.O]

Transparency > The blockchain is able to lower the uncertainty. Blockchain allows you to have a decentralized database that can not be changed. It is distributed all over the world. As a result, everyone has access to the network and can view the data whenever he wants.

Security > Hash functions secure every transaction So each block contains the checksum of the previous block. As a result, every block is linked. This makes blockchain tamper-proof.

Traceability > Blockchain records the exchange of goods. So you get an audit trail that shows where an asset came from and every stop it made on its journey. Having historical transaction data can help to verify your assets and prevent fraud.

Efficiency and Cost > When you want to transfer something, there is a lot of paperwork, human errors and third-party mediation.Since blockchain includes all the information needed, everyone has access to the same information. So the process is faster and cheaper it becomes easier to trust each other without the need third parties witch cuts cost of doing business.

[Aaron_Lyndon]

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

Transparency:
a) All data of a transaction once confirmed by the network of nodes through consensus is stored within the Global database called Blockchain. Each participant within the network all share the same database rather than all seperate individual copies which is partly how you achieve a global consensus, the other part is via economic incentives. All data within that transaction is available to those who have permission.

Security:
a) All data is stored in one global network ledger rather than one single server and once a transaction is completed, it’s encrypted and part of a global chain of transactions/blocks which makes it very difficult to manipulate, steal or remove data.

Improved traceability:
a) If you’re in the business where you need to see the origin of something, for example ‘supply chain’, you can now view all the data of that product, where it came from, quality, and the stops along the way. All these confirmed transactions are live, creating the ability to do live audits and prevents fraud.

Increased efficiency and speed:
a) Because the blockchain is Global and is shared amongst a network of participants, it removes the error of ‘middlemen’ who are able to change, edit or simply make mistakes. It removes the process of sorting through paper trails and now means, all data of that transaction is now blended within the transaction which is part of a global network, via consensus, verified, live. We can now trust the protocol and math rather than humans. Creating a more efficient and fast process of each transaction.

Reduced cost:
a) This process of a transaction means we can remove third parties (which cost) due to complete trust in the data and protocol on the blockchain rather in people. We now can start allocating the money used for middlemen back into the company.

[Jimmyo]

1. Transparency = The ability for the entire world to view the block chain and see the transactions on chain and know that it has been verified

2. Security = The security of the block chain relies upon the computer network in place and after approval of data it is encrypted and linking them into blocks, making it harder for hackers to get into system.

Improved traceability = Block chain gives a company the ability to track it goods or services as it travels along the path from production to delivery and being able to determine if the process needs improvement and or it works fine and hence makes the business more profitable and if not it can make adjustments immediately in most cases

Increased efficiency and speed = The technology of the block chain affords the ability for companies to track the process and speed and determine if improvement is needed and at what stage needs that improvement , if any. It also gives a more trust factor in regards to there product/service because it is on a trusted chain that can be verified.

Reduced Cost = The data from a companies block chain that is set up correctly for there business is essential and can monitor all areas from start of production to end user, and by compiling all of these data points it can determine what changes are needed to make the business more efficient. It also gives the company more creditability in their industry because of transparency of the information and more importantly it can be trusted and can be verified hence gaining more of the market share equaling more profits.

[CurlyBracketEffect]

Transparency: Having the ability to verify and trace every transaction can help build a more trustless society, as well as keep corporations and charities more accountable.

Security: Blockchain is made more and more secure the more nodes and miners join the network.

Improved traceability: Blockchain can allow us to track more accurately where an asset or product came from, leading to greater trust in our supply chains and allows us to be more scrutinizing when making purchasing decisions

Increased efficiency and speed: Blockchain is able to cut out many of the middlemen in the finance sector. making the cost of business cheaper and more efficient.

Reduced cost: Reducing the number of middlemen involved in a transaction will also reduce the cost per transaction

[Derjoe]

These remove the middle man:

Providing the network with not only **increased efficiency and speed (automation of processes) but also reducing costs as there is no need for a third-party service needed to execute the transactions.

Miners are only rewarded when playing by the rules (verifying transactions (consensus) and securing the network). The verified transactions (immutable hence fully traceable ) are stored across the blockchain and are available to anyone (distributed ledger), providing the network with full transparency.

[ge-ek]

Transparency: The ledger is public to the one’s who have access to it.
Security: It is impossible to revert a transaction, because it would need to revert the whole blockchain and all subsequent transactions.
Improved traceability: Different companies can use a common blockain to trace goods, so it is easier for all of them to verify what they want without trusting another company.
Increased efficiency and speed: Record keeping on a single ledger reduces overhead and can automate things.
Reduced cost: Automation reduces costs, also no need of middlemen to guarantee trust.

[Peter_lembessis]

1. Having the same ledger in a conference rather than multiple ledgers lessens the chance of error
   2.The security involved in block chain technology is the latest greatest on this planet so far. No need a further explanation.
2. Creates a trustworthy traceable environment.
3. Eliminates paper heavy processes and third-party mediation. Eliminates notary public. Settlements occur quicker.
   5.By increasing speed and eliminating 3rd parties, closing costs of a contract and or deed is reduced tremendously. More profits and less expenses occur.

[elea]

Transparency:
-Every user of the blockchain will have access to the same, verified (through consensus) immutable information.

Security:

• Every transaction is verified before it is added to the blockchain. You have security that you can rely on the correctness of that information.
• As the decentralized, and thus stored across a network of computers, hackers will get a difficult time even trying to hack and access data.

Improved traceability:

Every transaction is encrypted in the blockchain, you can go to the transaction that preceded that transaction, until you can go to the very origin of that transaction.

This can be of great benefit, when you’re dealing with complex supply chains, and you wan to proof the authenticity of a certain product.

Increased efficiency and speed:

The logistics of accessing information will be more efficient, as all information will be encrypted on 1 place, and this is the digital ledger.

It will be cost reducing, easier and faster to access the right data.

Reduced cost:

Less paperwork, less intermediary parties, less time because all you have to do is to access the single immutable version instead of going through cost ineffecient methods to access information.

As the access to the community is permissionless, you will never have to pay a fee to access a bitcoin wallet for example.

High availability ensures that the blockchain is open 24/7/365 a year, you don’t have to shut down your business. You can receive or send payments for example at every time.

[PBARETY]

Transparency: because every transaction is accessible on the database, is verified and can’t be modified nor removed.

Security: because no information can be modified and because each transaction is available 24/7 within a network of numerous computers assuring constant verification it is practically impossible to hack the whole system

Improved traceability: because we know where the information / transaction comes from

Increased efficiency and speed: since people have access to every transaction and information present on the blockchain, they don’t need to pass by intermediary parties to verify the authenticity of the transaction / information. Which makes the business relationship trustless.

Reduced cost: As you don’t need to trust your business partners anymore you don’t need to spend time and money figuring out if a transaction has truly been made

[dragos_andrei_87]

Transparency: Everyone can see the information from everyone.

Security: An action must be consensus agreed by the member of the networks

Improved traceability: You can trace the information all the way to its provenance.

Increased efficiency and speed: The exchange of information and agreement can be done instantly due to the fact that it is verified simultaneously by blockchain members.

Reduced cost: Third parties that were trying to guarantee you the information and paper process are eliminated.

[JohnX]

1. Transparency:
   If you are a participant in a certain business with your company, it is important for you to be able to know what all other parts of the system are bringing in. With blockchain every transaction is recorded on the blockchain, and all transaction and information history can be audited and traced. All documentation is open for everyone to review, and hereby transparent to all parts in the system.

2. Security:
   Since blockchain transactions can be very vital information such as payments, ownership and provenance, it´s important that you can rely on the transactions. Every transaction in a blockchain will be encrypted, and every new block contains information from all earlier transactions. This makes very hard to compromise the system with fraud or hacking, since tampering with the data requires changing the whole blockchain which would be practically impossible.

3. Improved traceability:
   Every transaction on a blockchain is recorded and auditable. That makes it easy to trace every transaction from all participating companies/entities. So a transaction in a supply chain from manufacturer to retail can be traced.

4. Increased efficiency and speed:
   Blockchain can replace many third-party entities or “middle men”. When all members in a blockchain use the same system and the same common decentralized database you dont have to bridge different databases or document systems. This makes it easy to access common information, and makes the whole process much faster. This also leads to less human errors.

5. Reduced cost:
   With increased efficiancy and speed, and less middle men in the supply chain you also reduce payments to third-party. With an effective supply chain you also get less errors causing both waste of time, money and reputation.

[Kav]

1 all nodes participants share the same data , there are no individual copies
2 transactions must comes to a common denominator before being recorded , encrypted and added to the blockchain
3 when good are recorded in the blockchain you can trace it back and audit
4 due the possibility of process automation in the blockchain transactions can run faster
5 you do not need the middle man whan you use the blockchian, you just need to have access to the data, hence cutting costs

[Brian1]

1. Transparency: Having a trustless ledger/network where everyone/anyone has access to verify information/transactions (Provenance).
2. Security: Information stored on a decentralized ledger/network with no third party. Trust in the protocol along with immutability.
3. Traceability: A decentralized blockchain has consensus to build a trustless network. Able to trace origins/authenticate transactions.
4. Increased Speed/Efficiency: High availability (24/7, 365 days) on a trustless network. Efficient, faster and no third party to deal with.
5. Reduced costs: Again, no third parties (middlemen). Trustless decentralized ledger (trust in the protocol). Less documentation, less time to process information and transactions equals reduced costs.

[Astro_LI]

1. Transparency: no trust all acknowledge instantly all access is good
2. Security: many networks verifying avoid scams
3. Improved traceability: everything can be track and view
4. Increased efficiency and speed: one ledger
5. Reduced cost: no middle men

[michelaketer]

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

Transparency:
Every transaction is registered in the blockchain which is public ledger who is shared on a network.
Security:
Nobody can change a transaction when it is confirmed. The network always check transaction, it is not just one person that do it.
Improved traceability:
You can always track back the money or the product and get all the information
Increased efficiency and speed:
There are no cost in terms of money and time to have an intermediate that verify the information.

Reduced cost:

[EricHill]

Transparency:
The blockchain is a shared ledger where everyone can openly see all the transactions on the blockchain by readine pseudonymous wallet addresses. If a business for example wants to be transparent, they can reveal and link themselves to certain wallet addresses.
Security:
The blockchain is the most secured database form to date because it is validated by multiple parties with no central point of failure.
Improved traceability:
The blockchain provides improved traceability because all transactions on the blockchain may be followed. This would allow a complete supply chain network to be tracked if it were on the blockchain.
Increased efficiency and speed:
Transactions no longer need to wait to be processed by third party companies in such case as ACH transactions that require going through a clearing process.
Reduced cost:
Since there is no need for third parties, there is much less fees involved with transacting over the blockchain. Furthermore, many jobs are eliminated that can create major savings for companies. All of this is made possible by being able to trust the blockchain protocol and not needing intermediaries to facilitate trust.

[bitcoinjim]

Answers:

1. Transparency: Block chain has the transparency needed for accurate records and their is no altering unless consensus is reached by all.
2. Security: Instead of one server and point of hack, block chain has a network of computers, ledger that agree and prevent fraud.
3. Improved trace ability: The origin of a product can be traced back through block chain journey or ledger and verify its authenticity to prevent fraud.
4. Increase efficiency and speed: The block chain uses a ledger so everyone using it has the same information, that makes transactions quicker and reliable, less time used.
5. Reduced cost: The block chain does not 3rd parties or middlemen so you can trust data on the ledger and reduce cost without intermediaries.

[Cweed]

1. Transparency: Transparency is built into the structure of blockchains. Transparency emerges form the fact that all participants in a blockchain network share the same version of a distributed ledger. That transparency is also relatively immutable given the fact that an entry on the ledger can only be changed when consensus is reached. There are countless applications in business, government, etc… where transparency is valuable.

2. Security: The decentralized nature of blockchains results in their high level of security. The historical record that a blockchain provides ensures that a transactions can always be checked for accuracy relative to the one that came before it. Further, since the information contained on a blockchain never exists on a single server or with a single PC or node, it is extremely resistant to hacking. Even if one node on a blockchain is compromised and corrupted it can just later sync itself with the other nodes and update back to the correct version of the chain. Security is valuable in nearly all possible digital applications.

3. Improved traceability: Since transactions on a blockchain are both transparent and secure they can be fully traceable. Any transaction recorded on a blockchain represents a near permanent record. That record can be easily searched to confirm its place in a pathway of transactions. This has a high degree of applicability to tracking the flow of goods throughout a supply chain or marketplace.

4. Increased efficiency and speed: Blockchains have high levels of efficiency and speed because they eliminate the need for a third party to check the validity of transactions. Since both trust and contracts can be encoded in a blockchain, intermediaries are not needed to confirm transactions between two parties. Also, it is not necessary to reconcile ledgers or transaction histories between parties since it all parties have access to the chain and it is automatically updated for everyone at the same time.

5. Reduced cost: One of the main ways that blockchains reduce cost is by eliminating the need for a third party intermediary. You don’t have to deal with escrow service, or agents which have associated costs. They can also eliminate the need to review and verify documentation for repeatable transactions. Also, they can eliminate the need for accounting in many cases.

[Geydominic]

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

Transparency:

Security:

Improved traceability:

Increased efficiency and speed:

Reduced cost:

As everyone has access to the blockchain technology Transparency turns as a fundamental part of the ecosystem. info is inmutable. Security came to solve the problem of normal database where info can be change or hackable. Blockchain enable to track and trace in real time any merchandise, information or transaction improving this ecosystem to make it a better form of exchange. Being a computer system where info is store in all node of the network info can be fast and accesible **any time, every where for any person in the world.**Blockchain enable companies and users reduce cost eliminating middle men making this protocol peer to peer which is great for any pocket.

[grahappa]

1. Transparency: Transparency allows all parties to a transaction to independently verify a transaction.
2. Security: Security ensures all network participants are using the same global infrastructure.
3. Improved traceability: Being able to trace a series of transactions can be used to track product supply chains.
4. Increased efficiency and speed: Increased efficiency and speed allows for increased network capacity.
5. Reduced cost: By reducing costs, the network is available for more use cases.