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Transparency: the blockchain network is built as a public distributed ledger that is immutable; this means that every participant of the blockchain network holds a documentation of the network and transactions/data can only be added by consensus(which is all participants agreeing to add a transaction/data to the network), transactions or data must be approved by consensus before being added to the network and to change a single transaction or data record would mean alteration of subsequent records and a collusion of the network thereby making the network transparent and immune to fraud or manipulations.
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Security: due to the nature of a blockchain network, transactions or data must be approved via consensus its added to the blockchain and this is followed by the encryption of the transactions/data and linking of the transactions/data to previous transactions/data, these plus the fact the blockchain network is built across several computers in the network all over the globe and not just a single server makes the network very hard to be hacked or compromise its data.
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Improved traceability: when transactions or data are recorded on the blockchain; they can be easily traced back, the blockchain provides a audit trail that can be used to check the authenticity and consistency of data and transactions and this provides us with a system free of fraudulent or compromising practices due to high traceability present in its operations.
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Increases efficiency and speed: traditional record-keeping is time-consuming and prone-to-error unlike the blockchain network; record-keeping is streamlined and automated, since transactions are built on a single digital ledger that is shared across participants in the network, there would be no need to reconcile multiple ledgers and also since everyone would be having a documentation of transactions and data, there would be no need to trust any partner or have intermediaries in the network.
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Reduced Cost: this which is very important for a business, is consistent with the blockchain whereby intermediaries and partners that have to be trusted for guaranteed data or transactions are cut out of the picture because instead of having to trust humans that are prone-to-error and mistakes; you simply trust the data on a immutable and secured blockchain, and this also reduces large documentations checks as everyone would have permission to a single immutable version.
Transparency
Using the blockchain to lodge transactions is much more accurate, consistent and transparent compared with the traditional paper-heavy method.
The blockchain provides a shared network, whereby all participants have access to the same documentation (on the public ledger) of which can only be added to (and not removed) via consensus.
Enhanced Security
Blockchainās database is incredibly difficult for hackers to compromise as information is spread across a network of computers rather than being stored on a single server.
All transactions are added to the blockchain via a decentralized agreement (consensus), of which successful transactions are encrypted and linked to the previous transaction.
In order for hackers to change a single record, all of the records following it would need to be altered to match what the change is proposing, and a majority of nodes conspiring to deceive the network.
Traceability
The blockchain naturally shows a trail of the item all the way to the origin of its existence. By utilizing the blockchain one could verify the authenticity of an asset and prevent being defrauded.
Increased efficiency and speed
By automating transactions between two unfamiliar parties through the blockchain, this can result in less paperwork needed to be filed and organised, less time spent doing such tasks and more time being more efficient in other areas.
With the blockchain providing a transparent and immutable public ledger based on math and protocols, it then becomes a faster process to clear and settle transactions. The need for trust in a third party mediator or each other becomes obsolete, leaving more time to be spent being more productive.
Reduced costs
Integrating the blockchain into business practices such as buying goods from your supplier, can reduce money spent to employ third parties or middlemen. By having permissions access to a single immutable database (the blockchain), you can audit the suppliers transactions yourself, eliminating the need for expensive auditors and saving lots of money that can deployed elsewhere.
Transparency:
- all transactions are documented on every particpantās node which makes it a shared documentation reached through conesus. Any documentation added needs to be accepted and verified by the members
- anyone who has access can see and follow all the documentations
Security:
- encryption guarantees user security
- consensus supports security
- not one central place of storage of data but distributed
Improved traceability:
- blockchain provides audit trail that shows every movement the transaction has made
Increased efficiency and speed:
- no information silos, everybody has the same information
- avoidance of third-party mediation for any kind of trade, makes it quicker
Reduced cost:
- less reviews because of immutability
- no middle men to ensure trust
Transparency: All nodes/peers have access to the same information (ledger), and updates can only happen through some sort of consensus mechanism.
Security: Again, consensus ensures the data is correct. All transactions are encrypted to the highest standards and linked to all previous transactions forming a chain. This makes it virtually impossible for hackers to compromise the data.
Improved traceability: Itās possible to track every step across a supply chain, meaning itās possible to track a product from its origin up to its final destination, allowing auditing of every step.
Increased efficiency and speed: Just by removing intermediaries, thereās a huge gain in terms of efficiency and speed. Everyone has access to the same distributed ledger, so no need to cross-check and reconcile different ledgers.
Reduced cost: No intermediaries results in fewer costs, also a single and immutable ledger means companies will spend less time reviewing documentation.
- Transparency: No one can make changes to the ledger for their own benefit without permission from everyone else.
- Security: The rigidity of the protocol decreases the risk of fraud and unauthorized activity.
- Improved traceability: As everything is recorded, everything can be checked.
- Increased efficiency and speed: Everything is recorded in real time.
- Reduced cost: The protocol takes care of much of the auditing and other processes automatically.
(I think you meant to ask HOW āthese are the benefits of using a blockchaināā¦ I mean, a perfectly correct answer to āWhy is improved traceability a benefit of using a blockchain?ā could be that āAn improvement is usually a benefit.ā)
transparacy: is achieved through consensus of all the ledgers involved causing the transaction to be completely visable and trackable for all to see.
security: the same concensus system makes it impossible for a malicious intention to create a fake transaction since it will deffinetly not be in tandem with other ledgers therefore not entering the blockchain and being rejected instead
improved trace: from supplier to deliverer all the steps of the procces are recorded
increased eff and speed; no need to wait for approve authorisatin and audits etc
reduced cost; no need for middlemen to pay the cost of tracking and managing the accounting
- Transparency: Anyone can see transactional data from a public, shared ledger.
- Security: There are no intermediaries in the middle and thus no āinformation silosā. You donĀ“t need to trust the other party to do their part, because everything is handled by a decentralized blockchain/ledger.
- Improved traceability: Every transaction on the blockchain can be traced back to their original point and any point on the way.
- Increased efficiency and speed: When there is no need for extensive supply chain like in the past, everything is faster and more efficient.
- Reduced cost: Eliminated need of middle men and all the facts mentioned above reduce costs to a business or anyone wanting to use blockchain commercially.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: where consensus across the network is necessary to add to the blockchain.
Security: piggybacking onto transparency, where consensus is needed, makes it therefore very difficult/impossible to hack or alter the blockchain as it would need to be āconcentivisedā across the network.
Improved traceability: with a single audit trail (ledger), it becomes easier to trace back to specific transactions along the way.
Increased efficiency and speed: with a single ledger for the location of all transactions, this makes it easier for everyone to access the information necessary regarding details of transactions.
Reduced cost: without the need for third parties to verify transactions or for you to have multiple records of transactions, this dramatically reduces the cost of making transactions at all.
Transparency:
As every transaction is verified by multiple nodes who all hold a copy of the ledger there is in built transparency.
Security:
Due to decentralisation and the requirement for the whole network to collude to corrupt any data there is increased security built into blockchain. In addition there is no single attack vector as the network is distributed.
Improved traceability:
Each transaction is logged and verified by consensus through the protocol meaning that each registration is much easier to search. As opposed to traditional systems where paper/people introduce inefficiency into the setup.
Increased efficiency and speed:
This is achieved by elimination of paper and holding a single digital ledger.
Reduced cost:
Blockchain eliminates the need for trusted middleman so there are less people in the chain to do business with. Also, less documentation is needed as all transactions are held on a single digital ledger.
Copies from my own work. Moralis is not recognizing my completed work.
Transparency: one of blockchainās most important features is that itās transaction ledger for public addresses can viewed and verified without question; full transparency.
All the sectors with ties to financial systems and business transactions, will be more accountable towards their business practices. They will have to behave responsibly towards their community, costumers, and overall company growth. No more smoke and mirrors.
Security: blockchain security measures are far more secure than other forms of record keeping. Every new transaction is encrypted and linked to the previous transaction. Blockchains are created by a network of computers coming together to confirm the new block being added to the ledger. As these confirmed blocks come together they create chains of information.
These chains are formed by a complicated string of mathematical numbers. Once formed, they are impossible to alter.this makes blockchain immutable and incorruptible. It also makes it safe from falsified information and impossible to hack.blockchain decentralized nature makes it trustless. Trustless means that parties do not need to trust each other to transact safely. Real time audits improved traceability. Each time an exchange of goods is recorded on a blockchain, an audit trail is present to trace where the goods came from. Like the example given by Ivan with food, one can know exactly where things come from in the food supply chain. This helps improve security and prevent fraud or misleading information with costumers products and exchange related businesses.
With traceability, it also helps verify the authenticity of the traded assets or food product. With medicine, it can be used to track the supply chain from manufacturer to distributors and can help figure out where tainted pharmaceuticals or supplements may have occurred. With the art industry it can provide an irrefutable proof of ownership and help protect the artist work.
Increased efficiency and speed: because blockchain is decentralized, there is no need for a middle man in many processes for fields such as making payments and purchasing real estate.
Compared to traditional financial services, blockchain technology supports faster transactions by giving peer to peer cross-border transfers by using digital currency. A unifies system of ownership records, and smart contracts automate tenant-landlord agreements which will make the property management process more practical.
Reduced cost: although gas fees are still considered high, illuminating the middle man will reduce costs greatly. No more commissions allocated towards real estate agents and other types of brokers, who although are trying to provide good costumer service, are still looking to maximize their income and can become more expensive than they need to be.
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Transparency: All network participants shares the same documentation. And it can only be updated when everyone on the network agrees on it. It is also available to all participants who have permission access to it.
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Security: Transactions must be agrees upon before they are recorded. Information is stored across a network of computers instead of a single server. This makes it difficult for hackers to compromise the transaction history.
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Improved Traceability: When exchanges of goods are recorded, you can trace where an asset came from and all the stops it made on its journey.
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Increased Efficiency and speed: Transactions can be completed speedily and efficiently with block chain. It isnāt prone to human error because record keeping is performed using a single digital ledger, that is shared among participants, you donāt have to reconcile multiple ledgers. And everyone has access to the same information which makes it easier to trust each other without need for numerous intermediaries.
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Reduced cost: With blockchain, you donāt need as many third parties or middlemen to make guarantees because it doesnāt matter if you can trust your trading partner. Instead, you just have to trust the data on the blockchain.
High Availability, Trustlesness, Immutability, Security, transactional efficiency, Lower TCO for business on long run, improved overall supply chain of business with benefits of end users etc
Transparency: Blockchain in its design has provenance and thus we anyone is able to verify where the transaction originated from, what actions were taken and the real time status.
Security: We are able to rely on the network and protocols as opposed to institutions or individuals to verify transactions.
Improved traceability: Because all transactions are immutable once they are verified it is results in very high traceability.
Increased efficiency and speed: The manner in which miners are incentivized also ensures high network availability on the blockchain and because miners are competing for blocks 24/7/365.
Reduced cost: By removing 3rd parties we also eliminate the fees associated with processing transactions.
Transparency:
all of the network participants share the same documentation as opposed to individual copies. That version can only be updated through consensus, where everyone must agree to the update. The blockchain itself is visible for everyone and also the transaction on it.
Security:
information is stored across a network of computers instead of on a single server. This makes it very difficult for hackers to get sensitive data.
Improved tractability:
If orders of goods are recorded on a blockchain, you see the audit trail that shows where the good came from and every stop it made on its journey.
Increased efficiency and speed:
By using a single traceable ledger it is easyer to trust eachother Without having to use multiple ledgers to keep everything in order.
Reduced cost:
you donāt need third parties or middlemen. Because of less partners it reduces costs.
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Blockchain creates transparency by operating through consensus. Meaning all parties of the blockchain have equal knowledge and access of data input. Changing anything requires full collusion. This shared knowledge and access bolsters transparency as well as better consistency and accuracy.
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Blockchain technology enhances security in a number of ways. For one, againā¦consensus. Because of consensus, all parties on the blockchain must agree on data transactions. Also, all transactions are encrypted and linked to the previous transactions. Another way security is enhanced is because data transactions are stored in real-time across the entire blockchain, as opposed to a single server, thus making it virtually impossible for hackeds to compromise a transaction, because even if the hacker successfully compromised one computer, the likelihood of the hacker finding and compromising all computers on the network are slim to none.
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Blockchain networks improve traceability with provenance. Provenance is all about tracing and tracking. Keeping records on a blockchain creates an audit trail that shows every step of an asset from its origin to its end.
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Blockchain technology increases speed and efficiency in many ways. Compared to traditional āpaper trailsā, digital record keeping via blockchain eliminates human error, the need for multi-party involvement and paper clutter, all in a single digital transaction. Also, being able to verify data via consensus promotes quicker clearing and settlement.
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Blockchain reduces cost for business by significantly reducing the number necessary parties involved for a given transaction. Meaning there would be fewer hires needed, even less outsourcing, because data is stored, shared and even accessed digitally.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency:
Unable to hide nefarious activities
Security:
Unable to deny the occurrence of a transaction amongst parties
Improved traceability:
Able to trace money/transactions that occurred from illicit activities
Increased efficiency and speed:
Network latency is crucial to ensure continued user adoption and usage.
Reduced cost
Removal of third party entities such as banks for taking out loans, just use DeFi
Transparency:
The Blockchain is a public ledger, which means anybody with access to the internet is able to view transactions on it. In addition, as the network is hosted by multiple participants, it can only be updated through consensus. On the other hand, standard databases are generally hosted by one central organisation who are able to add, change and remove data as they see fit.
Security:
Because the blockchain is a decentralized public ledger hosted over multiple computers, it makes it very secure. In order to add or change data, consensus is required, which means a hacker for example; would need to take over the entire network to make a changes.Comparatively, a hacker would only need to gain access to one central authorities computer to make changes to a standard database. Consensus makes the blockchain far more secure than any other database.
Improved traceability:
Because all records on the Blockchain are associated to the records before them, it makes auditing far simpler. It is also useful for following steps along the supply change, especially to companies who wanāt to prove the quality or the location of their goods to their customers. Centralised databases arenāt usually linked to each other, making all of the above a long and challenging process.
Increased efficiency and speed:
The blockchain eliminates the need for third parties and operates 24/7/365. This high availability means work can always be done and reduces the risk of human error. Without the need for human intervention or any third party, things can be done more efficiently.
Reduced cost:
Because of the increased efficiency and speed, companies will be able to reduce costs. This is achieved through the removal of third parties. Additionally, because everybody has access to the same data at all times, you donāt need to wait for permissions from other people nor third parties, to gain access to data.
Blockchains hold a benefit to transparency since that every transaction is recorded and has added security through encrypting each addition to the Blockchain with a signature from the previous addition. This sequencing subsequently relates improved traceability. The ability to have trustless interaction with any parameters quickly and in a documented way, while also allowing for direct interaction with few to no intermediaries- provides for efficacy, $peed, and there by of course reduced cost.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: due to the fact that each transaction in a blockchain has copies of it across the entire network, data stored on the blockchain canāt be manipulated in anyway or form since it would mean altering the same copy of that transaction through consensus.
Security: The fact that a transaction is stored over a network of multiple computers, makes it very difficult to comprise data integrity.
Improved traceability: any business activity recorded on a blockchain creates a long track of record of how, where, what (etc) type of type of event has occured at any given particular time. Data that is stored on a blockchain canāt be reversed.
Increased efficiency and speed: When information is available to the public, it makes shortens the turn around time in comparision to a traditional paper workflow currently in practice still today.
Reduced cost: 3rd parties or middlemen wouldnāt be needed if true information is readily available to the public thus reducing cost to the company. a great example of this is reducing cost for data auditing.
Transparency: Not needing to trust documentation to tell if transactions are correct or not since everyone has access to the same information.
Security: All transactions made are encrypted and are spread across a system of computers and is connected making it hard to get rid of and access.
Improved traceability: all actions that have occurred with your produce in the blockchain.
Increased efficiency and speed: by using blockchain you can the work processed faster as well as that since you have many other legers giving you less paper work.
Reduced cost: No third parties needed and you donāt to pay much to others or having to read many documents.