Reading assignment: Benefits of the Blockchain technology

[gambit6049]

Transparency - All transactions is visible to all participants on the network and can only be updated through consensus. Imagine trying to get participants on a large scale to do something corrupt while knowing their actions is visible and all previous data on the network immutable, this transparency makes corruptions very difficult on the blockchain.

Security - After a transaction is approved it is encrypted and linked to the previous transaction.
This data is not centralized but stored across the entire network, this makes it extremely difficult for hackers to compromise the transaction data.

Traceability - When exchanges of goods are recorded on a blockchain, you end up with an audit trail that shows where an asset came from and every stop made along the supply chain. This historical transaction data which is immutable verifies authenticity and prevents fraud.

Increased efficiency and speed - A single digital ledger is used for record keeping, Human error and third party mediation is removed from the equation. All of this aid in increasing efficiency and speed.

Reduce cost - Blockchain technology reduce and or eliminate the need for third parties or middlemen in a transaction which cuts into profits. Reviewing a lot of documentation is not needed in a blockchain environment reducing labor cost.

[Frosty00]

1. Transparency is enhanced through the use of blockchain technology by its public nature, every transaction needing to be approved by the network in order to be accepted and therefore being added to the chain. No single central authority can manipulate the network and any effort to even on a large scale would be visible on the public ledger.
2. Security is enhanced through blockchain by by its decentralized nature, there is no single point that a potential attacker could compromise without it being seen/rejected by the network. Transactions (financial/data) is immutable and cannot be changed due to the consensus model.
3. Traceability or the “provenance” of products in a supply chain could be made much more transparent and trackable through blockchain with an audit trail of data entries made on each stop from its origin to consumer. Also more trustworthy due to its immutable nature.
4. Increased efficiency and speed can be achieved through blockchain technology by the access by all participants to a single ledger, making data entry and auditing a much more streamlined/cleaner process.
5. Blockchain reduces costs my eliminating unnecessary middlemen, the protocol is essentially the middleman where trust is placed. Time cost is also reduced by every participant having access to a single immutable version of the data

[trobinson1333]

Transparency: Blockchain is a distributed ledger that all participants share and if one record or block is changed subsiquent block will need changed therefore everyone will know if and when data has been tampered with.

Security: A concensious must be reached before a transaction is recorded. Once the transaction is recorded it is encrypted, linked to all other historical transactions and stored on multiple participating network computors.

Traceability: Audit trails that can be verified by everyone on the network.

Efficiency/speed: No paperwork process, no 3rd party mediation, one single ledger that all parties can verify. No trust needed just verify for yourself quickly.

Reduce cost: No third party needed to verify data because all parties involved can trust the blockchain.

[Assassin167]

-transactions can be seen on the blockchain
-stored on multi computer network and with concensus
-can be immutae data can be accessed through the chain
-the protocol is trusted and used increasing speed
-the middleman is replaced by the protocol thus creating savings. Along with efficiency time value of money

[Lennon_Borrel]

Transparency: Transparency is a benefit when using blockchain because all transactions are available to the public unlike centralized networks which are siloed and opaque.

Security: This is a benefit of blockchain networks because for example in a proof of work consensus, miners are financially incentivized to secure the network and this security feature is in itself decentralized and not governed by a centralized authority which can be corrupted.

Improved Security: This is a great feature of blockchains because for example in a proof of work consensus, miners are financially incentivized to secure the network. Bitcoin for example is the most secure network in the world.

Improved Traceability: This feature allows for an audit trail whereby each and every transaction is recorded on a blockchain. If applied to supply chain management for instance, each step in the supply chain process can be verified on a blockchain, eliminating fraud and counterfeiting.

Increased efficiency and speed: Blockchain networks have a single digital ledger that is transparent, immutable, and available to all participants. This allows for trustless access to information which is streamlined to maximize speed and efficiency.

Reduced cost: This is a great feature of blockchain networks because it eliminates the need for third party/middlemen and independent auditors. This is a much more efficient and cost effective way of transacting.

[justussundelof]

1. Transparency
   Consensus is required in order to update/change anything. Data can be audited any time due to a public ledger.
2. Security
   Every new transaction has to be agreed upon. Information is stored on a decentralized network of computers which makes it difficult to attempt malicious attacks.
3. Improved traceability
   All transactions are recorded which is useful for companies that handle goods that goes through a supply chain.
4. Increased efficiency
   By using a single ledger that is accessible for everyone you can eliminate paper work or any third party mediation.
5. Reduced costs
   You can trust the data stored on the blockchain itself, instead of a middleman.

[Casperc]

Transparency: blockchain is a distributed ledger, open to everyone on the network, everyone can review the data.
Security: Data is stored on multiple computers all over the world, to compromise data is very difficult, if a change needs to happen the whole network needs to agree
Improved traceability: With blockchain, you can trace the data/product back to its origin, thus helping you to verify the authenticity of assets with Provenance and consensus
Increased efficiency and speed: With blockchain, there is on database and all the info is kept in one place, you trust the data with consensus and thus everything can happen quicker with payments and Audits
Reduced cost: There is no middle man with blockchain, you can trust the data and the immutable version of it, don’t need third parties to verify data for you, everything happens with the blockchain network.

[DNC]

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

Transparency:
Because blockchain is a type of distributed ledger that allows all participants to share the same documentation (all nodes have access to the same transaction history as opposed to individual copies), the shared documentation can only be updated through consensus (everyone must agree on it).
Although it is possible to change a transaction record, it would be hard because it would require:

• the alteration of all subsequent records, and
• the collusion of the entire network.
  Thus, the data on the blockchain is more accurate, more consistent, more transparent than the traditional use cases where it pushed through paper-heavy processes. Also, the data is available to all participants who have permissioned access.

Security:
For a transaction to be added to the blockchain (approved), it needs to:

• be agreed upon by the majority of nodes, then
• encrypted, and then
• linked to the previous transaction.
  This process of approving a transaction, when coupled with the fact that the information (the history of all transactions) is stored across a network of computers and not a single server, makes it very difficult for hackers to compromise (change, remove) the data.
  So, because the blockchain is built to prevent fraud and unauthorized activity, it has the opportunity to change how critical data is shared. This is especially important for industries who operate with sensitive information and where protecting it is crucial.

Improved traceability:
When exchanges of goods are recorded on a blockchain, we get an audit trail that shows:

• where an asset came from, and
• every stop it made on its journey.
  This historical transaction data helps with:
• preventing fraud, and
• verifying the authenticity of the goods.
  In short, it’s easier to trace an item back to its origin, and this is especially important and useful for complex supply chains.

Increased efficiency and speed:
In commerce, traditional paper-heavy processes have at least 3 main drawbacks:

• are time-consuming,
• are prone to human errors,
• often need third-party mediation.
  Using blockchain, these processes can be streamlined and automated so that transactions can be completed faster and more efficiently. This is possible because record-keeping in a blockchain is performed using a single digital ledger that is shared among participants.
  So when:
• we don’t have to reconcile multiple ledgers,
• we have to deal with less clutter, and
• everyone has access to the same information,
  it becomes easier to trust each other without the need for to many intermediaries.
  Thus, clearing and settlement can happen easier and quicker.

Reduced cost:
Because we only have to trust the data on the blockchain (nothing else is as important as this) we can reduce costs by:

• not using so many third-parties or middlemen to make guarantees (we don’t need them), and
• not having to review so much documentation to complete a trade; because everyone will have a permissioned access to a single, immutable version

[Flamboezel]

Transparency: the blockchain is an open source so everyone can see everything

Security: because everyone can see everything it is more secure. it is stored on different machines instead of just one local.

Improved traceability: everything is recorded on the blockchain and thus can be easily traced back

Increased efficiency and speed: its easier to keep everything on one ledger than multiple tracking systems.

Reduced cost: because of the reason above, its more efficient. less middleman’s and third parties as well.

[MarkAlvee]

Transparency: Blockchain tech. is very transparent that all transactions are recorded through the technology. Also before a transaction is approved, it goes through a consensus process meaning that everyone needs to agree. Transparency is important because it allows the users to see what is going on in real time.

Security: Very secure for sensitive info such as financial, health, or any personal information a company may have. Blockchain is very secure because it runs off multiple network computers which makes it harder to hack rather than a single server computer.

Improved traceability: With Blockchain, traceability is important. Being able to see where your product is coming from and the process being recorded every time the product is moved/stopped allows a business owner keep track and have a better estimate when the product will arrive.

Increased efficiency and speed: Reduces the amount of error made by humans. While automating a process using blockchain reduces those errors and allows processes to go faster.

Reduced cost: With blockchain there is no middle or third parties to go through instead trusting blockchain technology reduces those cost as we trust the tech!

[Noemi]

Transparency
The blockchain is a open network. Every member of the network (and not only a few) have the same copy of all transactions made. It’s a total transparency.

Security
Every new transaction ist verified before added to the blockchain. Furthermore, once a transaction is in the blockchain it is imposible to modify it: the modification would mean a modification of the protocol on all the copys and all the transactions. And again,ecery transaction an the blockchain needs the approval of every node.

Improved Traceability
Avery transaction can be traced back to its beginning because the blockchain is a public database that can not be modified.

Increased Efficency and Speed
Blockchain enables peer-to-peer transactions. it incentivised by the truth. So there are no middlemen and long back-up checking necessary.

Reduced Cost
The transactions on blockchain are peer to peer. There are no costs of middlemen, fees of banks, government. No time spend on long and expensive investigations because no trust is needed.

[Captain]

1-transparency: data on the public blockchain can be viewed by anyone
2-security: no single point of network failure, information entered on the blockchain has been verified and immutable.
3-improved traceability: finality of information provided on the blockchain and ease of auditing.
4-increased efficiency: high availability
5-reduced cost: eliminating the need of third parties.

[Jaja_Espinha]

Reading assignment: Benefits of the Blockchain technology Answers

• Transparency: All transactions are recorded on the blockchain network and is accessible by anyone with permission. I cannot be altered, modified or deleted therefore it gives more transparency for those who are using it.
• Security: The blockchain is a network that holds multiple copies at different locations. To make changes the whole network has to be in consensus about the new transaction and therefore is very difficult to be hacked
• Improved traceability: the blockchain can act as a public ledger and therefore one can trace all transactions done from a -> z in the blockchain.
• Increased efficiency and speed: with blockchain technology we removed time consuming steps which require a middle man to verify transactions, therefore the speed and efficiency is increased as the data/information can be processed immediately in real time
• Reduced costs: With blockchain the network acts as the computer power to perform a task so we don’t need to pay for a third party to do it.

So in summary, BLOCKCHAIN ROCKS!!!

[Riane_Louise]

1. Transparency: blockchain is a public ledger that records all transactions with the inability for it to be deleted or tampered. This is made possible by consensus from miners verifying the transactions on the network.
2. Security: Transactions must be agreed upon through consensus. Information is stored across a network of computers not just a centralized entity.
3. Traceability: Goods can be traced when they are recorded on the blockchain. Through this process of consent and record keeping it creates real time auditing.
4. Increased efficiency and speed: The need for time consuming processes open to human error and paper heavy record keeping is no longer necessary. Everything is streamlined using a single digital ledger shared among participants.
5. Reduced costs: Third partitions aren’t necessary as the blockchain allows for verification. Data in the blockchain can be trusted instead in relying on human middlemen. Also massive amounts documentation won’t have to be reviewed since it can easily be found as a record on the blockchain.

[Denislav]

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

Transparency:
All individuals share the same data which is public. This is important for businesses adopting the blockchain technology.

Security:
Data is shared between players in the network which makes it harder for hackers to attack and the network stays up 24/7. The chain cannot be easily altered.

Improved traceability:
Important for tracing transactions back to their origins. Could be helpful for businesses to track how their products are made and to ensure costumers about quality.

Increased efficiency and speed:
Absolutely needed for anyone. Everyone wants to make money. Everybody would appreciate better financial infrastructure which is more speedy and efficient. Both businesses and individuals.

[Rusokovich]

Transparency: Blockchain improves the way the information is handled since is public and recordable for everyone.

Security: Since the records are public, a change must be confirmed by all nodes hence a hack must happen in all nodes for it to happen.

Improved traceability: Since the new transaction is written next to the last one, tracing things is easier

Increased efficiency and speed: Removing third parties into the record keeping allows the transcations to be more effective

Reduced cost: Removing human error from a transactions allows the system to be effective in the record keeping

[Cryptocle]

1. Transparency: transactions on the blockchain are visible (public ledger). The updated content is the same to all viewers.
2. Security: truth is established through the consensus of the many different nodes validating a transaction. No need to rely on any central organization or third party.
3. Improved traceability: History of a movement (financial or product in a supply chain) can be seen step by step. The steps cannot be missed, removed or modified after they occur. It is therefore possible to track a transaction from its initial source.
4. Increased efficiency and speed: this removes the need to check several documents: there is only one source of truth and it is on the blockchain. Transactions can be ran anytime 24/7 which also drives the speed of the process.
5. Reduced cost: limits the use of middle men (who takes a fee)

[Criptoking]

Transparency: Because it’s public, everybody can see it.
Security: Cannot be hacked because is a distributed ledger.
Improved traceability: Since all transactions are published, they can all be trust.
Increased efficiency and speed: No third parties, and no intermediaries.
Reduced cost: There is only one version of the ledger, no need of several middle man and third parties.

[Lucas_Galvez]

Blockchain relays on a consensus model to validate and record a transaction. This guarantees transparency as same data is shared by every participant on the network, and it needs their agree to be modified. Also data is stored in an orderly manner, making it easier for a search on it.

Blockchain has an improved security as every transaction needs to reach consensus before it is recorded. This includes an encryption and linking process to the previous transaction, making it almost impossible for a bad actor to compromise that data.

Blockchain improves traceability in a natural way. When a transaction is validated, it is also encrypted and linked to the previous one. So anyone can at any given moment check the transactions chain to trace it back and verify any given data on it.

Blockchain has increased efficiency and speed due to the lack of intermediaries on the transaction process and the fact that participants are using the same distributed ledger, so they dont need to wait for third parties to reconcile multiple ledgers.

Blockchain helps reducing costs as with it there is no need for making third party guarantees over a possible fraud, there is only a need for trust in blockchain data.

[Kerok]

Transparency: A public ledger means that any one can verify the blockchain making it easier to ensure it has not been tampered with.

Security: A blockchain is more secure than a regular database because tampering with one entry changes the rest of the chain, making auditing of the validity of the chain easy.

Improved traceability: Since every block builds on top of the previous, the whole history can be traced and guaranteed by matching hashes.

Increased efficiency and speed: Blockchain in itself isn’t as efficient as a centralized database. The gains in this area are mainly in the usage between actors, removing middlemen and the need for trusted validators to vet every transaction.

Reduced cost: As with the previous point, the main benefit is the automated validation of a trustless system that cuts out the middleman. Since a ledger is just digital information, there is no logistical reason a transaction of $1M should cost more than $1, other than paying for priority, given a trustless system.