- Transparency - is a benefit as anyone who has access can see all transactions and be quite sure that they are correct as consensus only happens when all on the network agree using the same mathematical protocol and infrastructure, all nodes have the same information . Once consensus agreed nothing can be changed.
- Security - a benefit as in today’s world as so much data is stored insecurely. When information is stored on a blockchain all parties within the chain use the same infrastructure and protocols to make and agree transactions, once made they are encrypted and linked to the previous transactions. These transactions can’t be changed (it would requite every computer on the network to agree a change), an audit trail is made on the blockchain for all with access to read. There are no individual servers or hacking points where unauthorized activity or fraud may occur.
- Improved traceability - Dealing with supply chains can be a complex process as there are many stops and transactions along the way. In a blockchain once articles, items, transactions are recorded there is an audit trail created from start to end point including every stop along its journey. This keeps track of origin, authenticity, quality etc. thus making error or fraud difficult.
- Increased efficiency and speed - As blockchain uses just the one ledger across a network using the same infrastructure and mathematical protocol all information remains the same at all points, no need to use third parties to verify. No need to reconcile multiple ledgers it is all streamlined into the one thus much faster, more efficient and accurate.
- Reduced cost - Reducing cost in any business is always a bonus however when using blockchain as so many of the middlemen have been removed from the equation this becomes a self fulfilling prophecy. No need to trust people or trading partners just trust in the blockchain data thus less docs. to check less time consuming and staff dependent.
- Transparency:
An open ledger that allows scrutiny of transactions which gives confidence to all parties involved. Transparency is heavily related to security.
2 . Security:
Many nodes have the same ledger, meaning that many points on the network can validate the data structure on each, it makes it harder to one point of the network (or node) to hack or cheat all others points, thanks to consensus mechanism, it makes a trustless way to secure data over the network.
3 . Improved traceability:
Because transactions happen in real-time without paper, an audit can be performed
Immediately after a transaction is on the blockchain. Also, suppliers can easily verify a
product as either authentic or not.
4 . Increased efficiency and speed:
The peer-to-peer resolution, eliminating the various middleman to accomplish a more profitable transaction, reducing intensively the costs.
5 . Reduced cost:
Taking out the middlemen helps to reduce cost and enhances processes because they can be verified on the blockchain.
Transparency - each transaction is a new block validated by nodes rules by a algorithm. everyone can see, no one can change what is done. You don’t need to send copies to everyone beacuse everyone sees the same information.
Security - Ruled by a algorithm based in math, no human is required. Descentralized make almost impossible to hack.
Improved tracebility - the blockchain is public and each transaction is a new block in the chain.
Reduced cost- no mediation is required, you deal directly with the interested one, all online…
1.transparency
The blockchain is a open ledger or database that is available for anyone to see as there is nothing to hide so therefore very transparent.
2.blockchain is very secure as it is not centralized and distributed among many ppl to keep the ledger safe and current
3.all transactions are stored and can’t be removed once confirmed so it is easily traceable to anyone who wishes to see.
4.the blockchain has increased efficiency and speed over normal supply chains as there are no middlemen or complex paperwork to complete and completely trust less.
5.the blockchain has reduced cost due to streamlining the chain of supply cutting out unnecessary middlemen and centralized controls charging high fees.
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Through a distributed ledger everyone can see a history of transactions. This allows people to view from a single validated source and also creates transparency around the data.
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With the inherent incentives of the blockchain we can see increased security since transactions are validated by the network of computers.
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With improved traceability it opens the door for such things as real time auditing.
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Increased efficiency and speed makes for a better customer experience and is also a boon to businesses using the technology. It can help generate more revenue in the long run.
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Similarly, reduced cost in the form of fees means that businesses as well as users can get more benefit out of their transactions.
Transparency:
Since blockchain is a distributed ledger protocol, all the notes have identical data made public in the ledger, and to make a change in a transaction record will be impossible since the enter network participant must come into agreement also forfeiting the incentives, as such this action is practically not possible to achieve thereby giving room to the transparency found in the blockchain.
Security:
Strong security is another benefit of blockchain because transaction must be agreed by all nodes before validation, and the same information will be made available across the respective nodes for confirmation and the result later stored across the network.
Improved traceability:
With the help of audit trail in blockchain, goods exchange can be seen from its origin as well as respective stops encountered as such traceability can clearly be achieve via blockchain.
Increased efficiency and speed:
Efficiency and speed can set in when everyone has access to the same information, as it’s the case on blockchain, it becomes easier to trust each other without the need for middle men, also automating the whole process create room for speed.
Reduced cost:
Reducing costs is a key. With blockchain, you don’t need middlemen to make guarantees because it doesn’t matter if you can trust your trading partner, that aspect of not relying on humans cut off great running cost.
- Transparency: All members involved in the blockchain share the same information instead of individual copies, this means that there is no variation of information.
- Security: Any transaction must be agreed upon by the different nodes, then the information is encrypted and link to the previous transaction, when several blocks have been confirmed after one transaction it makes harder to compromise a transaction of a previous block because it would be necessary to modify every subsequent block.
- Improved traceability: All trail can be mapped on the blockchain which makes easier to trach where the products have been.
- Increased efficiency and speed: By incorporating processes to the blockchain many paper heavy processes can be automated. Same information for everyone makes it much faster to verify and agree.
- Reduced cost: You don’t need third parties to verify something or give guarantees, you trust the system, you trust the algorithm, you trust the math.
Transparency
-In BC consensus is the key to confirming a transaction. So, to confirm/fail a transaction everyone in the network must agree.
-Anyone using the BC can view and verify the transactions, thus ensuring transparency.
Security
-No identity, meaning no one knows who you are and can’t share your data to anyone else. You don’t have to provide your identity to use the BC. You stay anonymous.
-No tampering of transactions.
Improved traceability
-You can really trace back to the genesis block of the BC, you can see information from the first block of the whole BC
Increased efficiency and speed
-Through peer to peer network, you don’t have to rely on single authority
Reduced cost
-Anyone with a mobile or laptop can use BC and no hefty fees for carrying out a transaction
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A common shared base of information in which every ledger or participant has to verify and approve the transactions creates a transparent environment for each participants of the blockchain.
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The immutability of the data in blockchain plus the verification made for every ledger are elements that improve security in this technology. Also, when transactions cannot be reversed or edited, there’re less fraud risk and less data manipulation.
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Traceability in the blockchain is achieved through the unareasable record of transactions, the verification process for all of them, and also the automated computer-based framework that ensures trustless and precision in the network.
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By reducing paper-heavy processes, bureaucracy and human error intervention, the speed and efficiency in blockchain have been increased in comparison with traditional business models. When all ledgers had verified the information, it means that there’s no need to use a lot of intermediation nor clutters.
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In most cases, transactions can be cheaper and faster while using blockchain because there are fewer third parties involved, the traditional paperwork is not required, and the network is driven by a trustless-based environment in which immutable data plays the main role.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: Blockchain is a ledger shared between multiple parties. All parties will have access to the info contained in it
Security: Blockchain is based on the consensus between parties and cryptography. It will only have an update or insertion of a transaction to the blockchain if all parties involved agree.
Improved traceability: Since all transactions are linked to the previous one and they're public. It's a direct task to check the info, without need to have audit processes.
Increased efficiency and speed: This is compared to many paper-based processes, specially, when validation of multiple parties are required.
Reduced cost: You don't have to own your own blockchain. You may use and pay a fee to the miners.
Transparency: Anyone can access the ledger, because of consensus everyone must agree to the documentation provided.
Security: The blockchain technology is not only encrypted but is also on multiple servers instead of a single server.
Improved traceability: Everything will be recorded on the blockchain and can be traced back
Increased efficiency and speed: No more paper heavy processes are used and everything is automated through the blockchain ledger. No more multiple ledgers.
Reduced cost: No third parties are needed, you just need to go to blockchain data to track transactions.
Transparency: Every participant has a shared, distributed copy of the documentation. Therefore all participants would have to agree to any alterations. All parties know what the documentation says at all times.
Security: In order for a transaction to be recorded, the entire network of users has to agree, and it is unlikely that the entire network would be deceived. In addition, each transaction block is cryptographically linked to the previous block. Therefore, each previous block in the blockchain would have to be altered, which would require an impractical amount of computer power.
Improved traceability: The distributed ledger allows for digital provenance, so the history of every transaction can be traced back to its origin. Items can be traced along its entire journey, and its history is shared with the whole network, which mitigates fraud.
Increased efficiency and speed: Middle men and intermediaries are removed from transactional processes because every participant is using the same distributed ledger. This means less conflicting information, and less human error.
Reduced cost: Less time and resources are devoted to middlemen.
Transparency: The single record is distributed to all participants so all can view the same info.
Security: The record is updated through permissioned consensus, which makes it harder for any single party or group of participants to disrupt or deceive the entire community.
Traceability: The immutability of the blockchain means any transaction can be traced back in time.
Efficiency/speed: A single ledger that doesn’t require individual upkeep and edits saves time and energy while reducing the likelihood and impact of mistakes.
Reduced cost: increased efficiency/speed means reduced costs, especially when there is less need for third party auditors, lawyers, arbiters etc.
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Transparency: Actually not all blockchains are public, we can have hybrid or private blockchains. But assuming that we have a business in which our data can be public, open blockchains bring huge benefits obviously.
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Security: There’s no debate in here. Wherease in an SQL database we can Create, Read, Update and Delete data. In a blockchain we can only Read and Write data. So the data is inmutable making it way more secure.
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Improved traceability: Since a blockchain it’s inmutable, and normally every new transaction is linked to the latest one, we have very good traceability.
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Increased efficiency and speed: I don’t really agree that blockchain will have incresead efficiency and speed. If our business model needs to have transparency, security or traceability, it may be a great option to opt for blockchain and increase speed. But SQL databases are way faster in order to write or read data, since they have been here for a long time.
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Reduced cost: similar to previous point, blockchain can make sense in some cases. But a traditional database, would be way cheaper to implement and mantain.
Explain with your own words, why these are the benefits of using a blockchain
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Transparency: blockchains act as public ledgers that are fully open to all networking participants, enabling them to accurately verify any transaction/data that has ever been recorded on it.
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Security: blockchains are more secure than other record-keeping systems, whereby transactions must be agreed upon between all participants before they are ever recorded on the chain.
–> information is stored across a network of computers instead of on a single server
–> this makes it difficult for hackers to compromise any transaction data
–> enhanced security for critical information shared and help prevent fraud and unauthorized activity -
Improved traceability: Can trace an item (or piece of data/transaction) all the way back to its point of origin
–> gives us an accurate audit trail of the exact provenance and subsequent movements/exchange of just about anything (every stop made on a journey and where it all came from).
–> Historical transaction data can help verify the authenticity of any asset and therefore prevent fraud -
Increased efficiency and speed: paper-heavy processes often require a ton of administrative paperwork, which considerably slows down the efficiency/efficacy of transactions being conducted.
–> There’s also the risk of human error throwing a wrench into complex supply chains processes, thus causing further delays until any issue has been mechanically resolved (and not automatically processed/rectified using blockchain and computers).
–> Often, third-party mediation with humans is required to solve these errors
–> Blockchain is more efficient because record-keeping is performed using a single digital ledger that is shared among all participants
–> That way, there’s no need to reconcile multiple ledgers and we end up with less clutter overall
–> When everyone has access to the same information, it becomes easier to trust each other without multiple intermediaries.
–> That way, clearing and settlements can occur far more quickly -
Reduced cost: With blockchain, we don’t need as many third parties or middlemen to make guarantees because it doesn’t matter if you can’t fully trust your trading partner.
–> just have to trust the data on the blockchain instead
–> Don’t have to review so much documentation to complete a trade because everyone will have authorized access to a single, immutable version.
Transparency: All Participants in the network use the same documentation which is also public.
Security: The transactions in the network must be agreed upon between all the nodes before going through, and if it does go through it is then encrypted. Also the info is stored across a bunch of computers.
Improved traceability: Exchanges on the blockchain are recorded and there is also a trail showing you where it came from. Which helps verify it’s legit.
Increased efficiency and speed: Record keeping is just on one ledger which makes it faster and everyone everyone has access to the same info.
Reduced Cost: Don’t need any third parties, and don’t need to trust anyone just the data on the blockchain.
Transparency:
The information on the blockchain can not be altered by a single computer or node in the system. All nodes chare 1 version of the blockchain, any changes must be done through a decision made together. The information is open and everywhere available and can not be deleted.
Security:
Information is stored forever and save from hacking, altering, manipulation or any catastrophe that could have destroyed computers, server or worth. The information exists in identical copies spread all over the world.
The way blockchain is mined and blocks are build, the encryption process, gives the group with the most CPU power the control. Incentives guaranty that working truthfully in the system creates money and therefore the nodes working and mining spread all over the world based on consensus guaranty security. All these aspects of the blockchain.
Improved Traceability:
You can use blockchain, to build a network which enables a company to have detailed access to every step of their supply chain and with that guaranty quality. No step of a process can be erased, if a supplier claims his produce has been fed organic, but he receives only GMO feed for his livestock, the system will verify his statement as a lie.
Or you can follow funds from politicians to proof they were supported by other governments by sending money through different entities and maybe foundations or not existing companies and therefor washing it. The trace will take only seconds.
Increased efficiency and speed:
In case of the financial market, it cuts out middlemen; smart contracts execute processes in real time as variables change. Databases are all connected char information and compete for the fastest solution for the algorithm. Smart contracts also connect parties or users in for example buy and sell, borrowing and lending, business and customer.
Reduced costs:
By cutting out the middlemen the system reduces costs.
By having build in trust, the system can save costs for trusts, potential scams, control authorities.
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Everyone on a public blockchain has access to the same ledger and therefore can see all the transaction history on the network. It would take everyone to agree in consensus to agree to a change in the ledger for it to take effect which is very difficult to achieve.
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Every transaction needs to be aproved by the network before it can be final. The transaction is then encrypted and part of it is kept on the precious block. A copy of the transaction is spread across all of the nodes.
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It is possible to follow the audit trail on the blockchain to see precisely all the steps that an asset has taken on its journey. Every historical step is recorded.
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Transactions can be completed much faster and more effecient on the blockchain do to automated processes without the need of multiple ledgers and trusting third parties.
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Transactions on the blockchain removes the need of third parties or middlemen involvement which makes the transactions more cost effecient.
- Trustless due to the nodes is mandated to confirm and agree upon all transactions for public view in which hit can be verified.
- The blockchain is secure due to a plethora of ledgers which provides difficulty for hacks but still can be done.
- Traceability (e.g. blockchain explorer) is permitted thru online tools or manually to verify data that cannot be modified.
- No need for delays by central legacy systems and third parties. The blockchain encourages rapid P2P transactions instead.
- No need for third party infrastructure.
Blockchain technology has benefits that can reach across industries, communities, and nations. In short, here are 5 main benefits to blockchain technology:
1: Transparency
All participants in a blockchain network. have access to the same documentation, where a shared version of the digital ledger is updated by consensus, meaning everyone must agree on it.
2: Security
Transactions are agreed upon, or verified, before they are recorded on the blockchain. After the transaction is approved, it is encrypted and linked to the previous transaction, making each transaction immutable. With the information stored across a network of computers, it prevents fraud and unauthorized activity.
3: Improved traceability
Related to security and transparency, an audit trail is being made, creating greater traceability and authenticity.
4: Increased efficiency and speed
The blockchain network creates a more streamlined and automated approach, eliminating the need to reconcile multiple ledgers. Everyone has access to the info, meaning they can trust the data and math, rather than just human err. This also makes clearing or settlement be completed much more quickly.
5: Reduced Cost
No matter the business industry, or even a household, reducing costs is a priority for everyone. The other 4 benefits create this final one. When you have transparency, security, traceability, and increased efficiency, costs that are found unnecessary or overspent can be reduced, freeing up resources to focus on other essential projects or needs.