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Transparency: There is greater transparency in blockchain because there are multiple players (network/nodes) involved. All the nodes have the same copy of a transaction, and they all need to agree on whether it is legitimate or not. No one person is given the authority to decide on behalf of the rest.
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Security: Blockchain offers more security of sensitive data. Because blockchain is a network of multiple computers spread across the world, data is stored across all the computers and not just one server. This makes it very difficult for hackers to target a single computer, thus making data breach almost impossible.
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Improved Traceability: With blockchain, the origins of goods/or products can be traced by using an audit trail. The audit trail authenticates the legitimacy of product.
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Efficiency & Speed: Blockchain has taken away the need for a lot of paper work, and over reliance on an intermediary. Blockchain streamlines and automates the processes, making it highly effective and very fast.
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Reduced Cost: Blockchain removes the middleman who cost a lot of money. With blockchain you just very data for yourself.
Transparency: Distributed Ledger Technology that is accessible by the public
Security: Comes with Immutability and Decentralization, extremely difficult for it to be altered or modified.
Improved traceability: The technology records every checkpoint and transaction and audits simultaneously, which is traceable because once the data is stored, it canāt be removed.
Increased efficiency and speed: Blockchain cut down the need for a middle-man and factor out the possibility of human errors, thus effectively shortening the process. Single protocol means everyone is operating on the same level and consensus.
Reduced cost: Faster and cheaper as the middle-man process is cut down and automation is done simultaneously through recording and auditing.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency:
Since all people or organizations participating in the network share the same transaction ledger, they have access to the data regarding all blockchain transactions. For a blockchain which is does not require permission, such as bitcoin, this transparency extends to all people who have a normal computer and normal internet access. Since there are multiple people / computers / organizations participating in the blockchain, opportunities to conceal information are decreased, compared to a centralized system in which an individual person or more limited group can hide or change information.
Security:
The information in blockchain databases is very reliable, since deleting or changing it is extremely difficult. For example, to change even a single transaction on the bitcoin blockchain, one would need cooperation from the majority of the network. One would also need to change the data connected with every transaction occurring after that single transaction (which you wanted to change), because new blockchain transactions, after being approved, are linked to the previous transaction. Someone trying to hack the bitcoin blockchain, or a similar type of system, would have an extremely difficult task, because they would need to control the majority of network computers simultaneously, which, for such large, highly decentralized systems, is highly unlikely.
Improved traceability:
Blockchain technology is well suited for tracing and recording events, such as financial transactions and events occurring in a supply chain. Blockchain technology can be used to find out about where a product and its parts have been, as well as the times when they were at those locations. Therefore you could use a blockchain to find out about the farm where a cow produced milk, and locations where the milk has been, from the farm to the store where it is sold to the consumer. Such historical data about a product and its parts can be useful for verifying their quality or if they are authentic.
Increased efficiency and speed:
Though blockchains are decentralized regarding verification and data storage, they can also centralize records in a shared database, using a single data protocol which is compatible with all normal apps and operating systems. Therefore, all parties involved in a product, service or supply chain have access to relevant information, from almost any location with internet, at any time. This reduces or eliminates such time-consuming actions as combining the different ledgers and databases of different organizations, as well as things like installing and learning to use additional apps. Blockchains can also be used to automate many digital actions. These features of blockchains increase speed and reduce complexity.
Reduced cost:
With blockchain technology, there is less reliance on third parties and middlemen for verification or guarantees, less need to purchase and install additional apps for different ledgers or tracing systems. This can contribute to lowering operational costs. Fewer database and ledger apps combined with greater data reliability can result in reduced costs for job training and quality control checks. Combining various ledgers and databases into a single blockchain can reduce the amount of documentation which a company needs to collect and store, leading to savings in labor and data storage costs.
- Transparency: A distributed ledger uses consensus to update transaction history which is more accurate, consistent and transparent than a paper heavy process.
- Security: Transactions must be agreed upon before they are recorded and encrypted. The data is stored across the network to hinder hacking, fraud and unauthorized activity.
- Improved traceability: Origins of an item can be traced back through an audit trail verifying authenticity. Historical transaction data can help prevent fraud.
- Increased efficiency and speed: Paper heavy process is time consuming and susceptible to human error. A single digital ledger that is shared, places trust on the network and removes the need for intermediaries.
- Reduced cost: Blockchain eliminates need for third parties to make deals or guarantees. Companies can clean up their supply chain.
Transparency: because blockchains use a public ledger that anyone can verify
Security: the consensus needed to update the blockchain requires the approval of many users, limiting hacks and reliance on trust of a third party
Improved traceability: all transactions are recorded, meaning a user van verify historic data since the blockchainās creation
Increased efficiency and speed: there is no downtime on blockchains, meaning it can be used 24/7. The fact that it is trustless also reduced the need for a third party to approve the transaction
Reduced costs: blockchain donāt need back office to operate, so cost per transaction is reduced
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Transparency
As blockchain is a public ledger this means that all of the transaction history can be seen by all people. This makes it practically impossible for groups of people to change information or transactions as the nodes are able to see this and will not verify them through consensus. -
Security
Each transaction is first verified by consensus which cannot be removed from the blockchain. This is because each transaction is encrypted and linked to the previous transaction on the blockchain, which means a hacker would have to change each transaction on the blockchain linked after it before changing the required one. This makes it very difficult to corrupt the data. -
Improved Traceability
Data on a blockchain is timestamped at each transaction. This is very useful for supply chains as this combined with the finality of the data not being removed means whenever a product is added to the supply process you are able to trace that step back to its origin in time and what that product was. This transaction history will therefore prevent fraud. -
Increased efficiency and speed
Blockchain allows for the streamlining of record keeping as a single public ledger is able to be used by everyone. This stops the need to reconcile multiple ledgers, all the information is shared among participants and consequently settlements can occur quicker. -
Reduced costs
Blockchain can help businesses reduce costs as they donāt need as many middlemen when they are completing a trade. Because both parties will only need to trust the transparent network and data it means less documentation would be needed also.
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency:
Blockchain dataās , once linked to the former transaction, is inverted in a block forever. Itās transparent as records are public and can be consulted by all participants. - Security:
As the transactions and dataās have to reach the consensus in the entire chaĆ®ne to enable it, a hacker would need , not only to reach and hack one device, but also the entire chain of following devices in the chain. On another hand, , in a regular industry, should it be financial institution or government, a unique platform would need to be hacked to breach the security. - Improved traceability:
Tracing an item, service or transaction is extremely complex in a regular system as a lot of interventions and products are getting involved. Exchange of goods are recorded forever in the blockchain network. The interlacing of checking in the blockchain realizes an automatic audit of transactionsā dataās. Traceability is helping preventing fraud. - Increased efficiency and speed:
Using the regular paper process makes trading and exchanging an extremely heavy process, human errors and/or malversations possibilities require the intervention of third parties mediations.
In the crypto blockchain, : a single record thanks to a single ledger shared amongst participants. We donāt have to coordinate multiple ledgers, these enabling efficiency and speed. - Reduced cost:
In the blockchain system, no need of third parties, middle men/intermediary companies to process a transaction, even internationally. All over the globe, the version of dataās is immuable. Less parties involved = reduced costs.
- Itās a public database, and everyone has the same copy
- Thereās no one point failure, and thereās no reversible.
- You can easily see the historic where your transaction came from.
- Itās automatic, and everyone can access the same information
- Thereās no third party
- Transparency: - a public network/ledger where all parties know the source and history of information and assets
- Security: - all transactions are verified/authentic and there are no intermediaries which could corrupt the data
- Improved traceability: - each node has to reach consensus for a transaction to complete, this is recorded and therefore if required, you can trace the origins of any data or asset.
- Increased efficiency and speed: - no need for third parties to facilitate the transactions or verify which currently is time consuming and reliant on human intervention and compliance
- Reduced cost: - one-time transactions and removal of repetitive tasks
Transparency - One does not need to go through tedious data gathering, being able to verify information by themselves. This makes auditing less expensive and time-consuming, other than creating a trustless envorioment to the protocol.
Security - As one cannot reverse or edit anything in the blockchain, āwhat you see is what you getā is the motto here. There is nothing that can compromise the blockchain itself. All you have to worry about is the way you utilize the protocol.
Traceability - You can see whatās going on inside the blockchain at all times. Itās always online and fool-proof, which means all transactions are legitimate and stored forever on the database. Therefore, you can always trace where a product came from and every single place it has been. NFTs, for example, can be tracked this way.
Efficiency and speed - As the blockchain has no bureaucracy, no Proof of Authority or central administration, you do not need to waste time, pay brokers or use anything material like pen and papers. All you do is pay the gas fee and be on your way.
Reduced Cost - As mentioned before, you dont need to pay brokers, no middle men, and no usage of materials like pen and paper. This saves both time and money.
Transparency - Creates accuracy and consistency for all copies of the network for all of its participants.
Security - Eliminates the ability for sensitive data and records from being compromised.
Improved traceability - Allows complete auditing of transactions with the ability to prove its authenticity.
Increased efficiency and speed - Reconciliations of large numbers of transactions between multiple parties can be done since all data and records are on a single uniform network.
Reduced costs - Third party companies are no longer needed to validate any records because the network is constantly doing it the entire time.
Transparency: The entire history of the ledger is accessible and verifiable by all participants as all participants hold a copy of the entire blockchain.
Security: The blockchainās history cannot be altered by a single participant.
Improved traceability: Each transaction can be easily traced over its entire lifetime.
Increased efficiency and speed: Faster than a paper-based system.
Reduced cost: Less need for intermediary trust-enforcing parties.
Explain with your own words, why these are the benefits of using a blockchain.
1: Transparency:
2: Security:
3: Improved traceability:
4: Increased efficiency and speed:
5: Reduced cost:
Transparency is the result of having all transactions processed publicly through a network of nodes that need to reach consensus on valid transfers. This means that alterations on a particular past transaction (while not really possible) can be detected and resolved. This is because all nodes have track of a hashsum that involves a prior transaction together with information from the current one. Each subsequent transaction will therefore have a reliance on the constantness of the previous. A change in one transaction (usually through malicious means) will require all hashes to be re-generated and that will be a very significant effort. Not only that, but even if itās done, there needs to be consensus with a significant group of other nodes in the network. Transparency of such information is hence crucial to avoid such attacks which would otherwise be easier to accomplish.
Security is better because now this is a distributed responsibility which is shared through consensus. The exposure of private financial matters and/or other are still kept private with no middle man involved in the matters.
Improved traceability allows for the tracking of the origins of a product in say a food supply chain. We would be able to verify that the raw materials come from where they are claimed to be sourced by the supplier whereas before this was not possible.
Increased efficiency and speed refers to the fact that no longer do people need to rely on other people to be involved in paper heavy processes which are susceptible to human error. A consistent process which is secure and reliable takes that job on and transactions are processed instantly without the need for large transaction wait times and fees.
Reduced costs because the exclusion of third parties to meddle in between transactions gets eliminated.
Transparency:
The blockchain is a distributed ledger over multiple nodes/ points of storage over multiple devices. Everyone shared one set of data, which gets updated only when all participants agree(consensus) the new update is correct. The data is available to everyone participating in the blockchain, and any changes would require all nodes in the network to be changed.
Security:
All transactions must be approved/ agreed upon before being updated to the network shared data ledger. The data is then encrypted and built on a shared point of data on previously approved data. This building block encryption structure as well as the shared data ledger makes it very difficult to change the data on the chain.
Improved traceability:
The time/date of all products/contracts can be uploaded to the blockchain. If someone claims something is legitimate itās easy to check the historical authenticity of such a statement.
Increased efficiency and speed:
Blockchain reduces the need for multiple parties to record/document their information on side ramps. We now have one point of contact for everything. Everyone sees everything.
Reduced cost:
One ledger system frees up energy that was used for the redundant tasks each participating party was involved in the recording.
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Because all datas are written down forever in the blockchain. If itĀ“s about important datas nobody can fake anymore and anytime. Nobody can hide anything from anybody else. No state can lie to us and tell us false information where it spend the tax money.
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If its important business data these data cant be changed anymore. Especially in businesses for example. Could ve a big advantage for lawyers and attorneys. Data is written down and itĀ“s saved forever.
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With the blockchain its possible to might track all the delivery in the supply chain. If anybody loses sth. or fakes sth. everybody might know where the mistake happened.
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A company could be much more efficiency because not everything has to be tracked anymore manually and by a lot of work. Could be faster and cheaper.
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Costs can be reducd because we donĀ“t have to pay and trust the middle man.
Transparency: You can see the history of your transaction, the actual history, i mean no alteration involved.
Security: You donāt have to worry about security since any single entity of the network has a copy of your transaction.
Improved traceability: You can check on where is your transaction came from, just like point to point you can view its transfer history.
Increased efficiency and speed: Its fast and efficient once it is approved it will be process and donāt have to worry because blockchain is online 24/7/365, and donāt forget the word secured.
Reduced cost: You can save more money alot because you donāt need to pay a contract to courier, I mean paperless, all are processed in a digital way and a secured way.
In my own understanding, I can describe the blockchain benefit in 3 words: Future! Effortless! Secured!.
sorry for my english, i am not good.
- Transparency: Ever user can see whatās going on . With distributed public ledger
- Security: Network of computers instead of a single server. More secure
- Improved traceability: Every step of the supply chain is recorded. Can be verified, donāt need to trust the biz
- Increased efficiency and speed: When everyone has access to same info, easier to make decisions.
- Reduced cost: No middlemen. No extra costs
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency:
- Security:
- Improved traceability:
- Increased efficiency and speed:
- Reduced cost:
Transactions are transparent in that the blockchain is the record keeping system. Blockchains provides security because the system cannot be hacked. The speed of transactions increases because the blockchain is the ledger that is used to verify transactions. This results in reduced cost because middle men are no longer needed.
- transparency: everyone has the same copy of the same ledger, so everyone is on the same page.
- security: all transactions need to be agreed upon before being accepted and entered on the ledger
- Improved traceability: blockchain produces an audit trail so you can see from start to finish all transactions.
- you dont need to keep multiple copies of the ledger
- removes middleman since you donāt need to trust the parties involved, you can just verify
These are benefits because blockchain stores data in a shared distributed ledger and requires consensus to make changes to the data. The protocol of the network ensures that all transactions are valid and therefore human error or fraud can be eliminated.