Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#5078

Transparency: All data is public so anyone can verify it,

Security: Because millions of decentralized ledgers share the same data and verify the transactions

Improved traceability: Since most blockchains are opensource and share their transactions you can easily trace anything,

Increased efficiency and speed: with quick verifications on the blockchain you know that the information/transaction is true, you can because of this skip all work with due diligence.

Reduced cost: Same with Due Diligence for example, it cost a lot to do a verification of a retailer, also with less middle men, there is more money over for the seller and buyer.

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#5079
  1. Transparency: A blockchain ledger is distributed and all participants in the blockchain have the same access to the ledger. There is nothing written to the ledger unless all agree and no transaction can be altered without altering all the transactions that came afterwards, which would be extremely difficult and likely crash the network.
  2. Enhanced security . All transactions have to be agreed upon before being recorded. They are encrypted and linked to the transaction that came before. That and the fact that the information is stored across the network rather than a single point on the network enhances the security.
  3. Improved traceability When a transaction is recorded, it is immutable and this provides a solid record of a transaction at a point in time. The audit trail is highly secure.
  4. Speed. Because there is a single distributed ledger, transactions can be settled much more quickly. The process of settling is less prone to human error because there is no settlement among multiple ledgers.
  5. Reduced cost. You don’t have to trust multiple middlemen, just the data. This reduced costs. There is less to review to settle a transaction, so it is cheaper to settle
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#5080

1- transparency : all the network participants have the exact same copy of the transaction record , meaning if you want to change something , all parties on the network must CONFIRM that it is in fact there . thus it is more accurate and transparent .

2- security : transactions must be agreed upon before they are recorded, each transaction is approved by multiple participants in the network , and is recorded therefore preventing fraud and unauthorized activity.

3- improved traceability : you can trace any transaction that has happened in the past and was audited , it is open to the public .

4- increased efficiency and speed : there is 1 ledger and everyone on the network is connected to it and can perform their transactions faster , without the need of papers and signatures.

5- reduced cost : no third parties / no middlemen / no guarantees / no need to trust anyone , its just facts and data on the blockchain .

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#5081

Transparency:

Blockchain technology enables greater transparency of transaction history. As all transactions are recorded and verified across a distributed ledger (shared documentations vs. single copies) by permissioned actors reaching a consensus, risk of history alteration is minimized.

Security:

Blockchain offers more security because a) alterations to the database require consensus decision making as opposed to a single entity and b) once transactions have been recorded, it can no longer be altered.

Improved traceability:

As records added to the blockchain are permanent and decentralized, the history of its transactions are immutable and visible.

Increased efficiency and speed:

Blockchain eliminates the need for cumbersome paper-heavy processes while also offering more accurate capacity compared to human labour. Centralizing operation via blockchain eliminates ends for 3rd party mediators, which streamlines the process more effectively.

Reduced cost:

Without need to incur additional expense to hire 3rd parties, business can benefit frin reduced cost of relying on blockchain instead as well as faster processing time with fewer documents to review

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#5082

Ans.:

  1. Transparency:
    transactions are confirmed by consensus, and accessible to all the participants

  2. Security:
    transactions must be agreed before recorded, and the storage across a network of computers is difficult to compromise

  3. Improved Traceability:
    the chain of historical transaction data can help to verify the authenticity

  4. Increased Efficiency and Speed:
    blockchain provides the streamlined and automated process for transaction recording, and does not require the intermediate third-party for verification

  5. Reduced Costs:
    there is no need to trust third parties for verification, and we can complete a trade by only accessing to the blockchain without reviewing

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#5083

Transparency is a benefit of blockchain because through everyone using a congruent network, anyone can conduct business with anyone. Trust is put in a computer network instead of a single centralized entity. Security is another benefit of blockchain achieved by mathematical verification. Each transaction carried out on the blockchain must be thoroughly checked and finalized by multiple computers, and that same transaction cannot be taken back after being finalized. Improved traceability is also a benefit of blockchain from the constant record keeping the network provides. Every transaction can be documented and reviewed once processed on the chain, thus providing provenance among the network. Increased efficiency and speed is yet another benefit of blockchain use because data is automatically kept after a transaction is concurred and processed. There is no need for excessive accounting and documents with this network as opposed to traditional methods; the proof is already in the pudding once a transaction is recorded and finalized. This also benefits the speed in which a set of transactions can be carried out with steps like accounting and record-keeping being eliminated through the basis of blockchain already providing them. Reduced cost, furthermore, is a benefit of using blockchain through immutability among users. There isn’t a multitude of companies looking for their piece of one’s transaction, or fractured structure that can be duplicated to make for higher cost of using the network.

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#5084

Transparency: Provides verifiability cross all users

Security: There’s not a single point of failure. Each user with some blockchain knowledge would be able to verify how secure a blockchain is

Improved traceability: Des-incentives bad actors from attempting to corrupt data

Increased efficiency and speed: Less to no need for middle man leads to direct transactions between actors automatically, this eliminates/decreases human labor, error and time used.

Reduced cost: Saves on middleman payout and hidden fees

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#5085

Transparency:

Transparency is key to blockchain, as anyone can check every transaction ever recorded on the blockchain it creates a strong incentive to discourage dishonest behaviour.

Example: Could you audit the federal reserve? No… Can you audit the 555458 block of Bitcoin? Yes! you can. The more eyes on the data the less room for fraud and corruption.

Security:

Real world costs and distributed verification of each transaction makes for a far more secure system then a central party. Which by definition also has a “central point of failure”.

Improved traceability:

Fully transparent also means fully traceable, keeping the incentives to be a honest participant.

Increased efficiency and speed:

Cutting out third and central party, greatly adds to efficiency and speed of nearly everything. The less party’s involved in any given interaction the more efficient that interaction normally goes.

Reduced cost:

Cutting out third and central party’s, also reduces costs.

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#5086

Transparency:

Each participant on the network have the grants to audit/see the immutable transaction history.

Security:

The ledger is spread out on many nodes therefore, it is very hard for hackers to attack a blockchain compared to a traditional database

Improved traceability:

Blockchains provides a good traceability because each transaction is logged and we have the insurance that these ones are immutable.

Increased efficiency and speed:

No need that intermediaries check, validate or run transactions. The trustless verification permits to substitute this shareholders to gain accuracy and speed.

Reduced cost:
No need to third parties or middlemen to operate transactions.

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#5087

Transparency

  • High availability means that everyone can access and check the data
  • Records can only be added to the ledger with consensus - so everyone has the same updates to the ledger

Security

  • Transactions can only be added through the protocols which must be verified mathematically in real time unlike traditional databases where information can be added manually or through other less reliable means
  • Secured by combined processing power of decentralised network
  • All transactions built on the previous transactions and encrypted
  • Information storage is decentralised which prevents hacking as opposed to centralised data storage

Improved traceability

  • Blockchain is transparent and stores the history of all transactions which allows for data analysis to trace back the full chain of ownership and transactions

Increased efficiency and speed

  • There is one protocol that the transactions happen on which means no information silos that are not accessible to each other except through complicated integration protocols that are prone to errors and make transactions take longer because there are so many checks and balances after the fact
  • Trustlessness means we do not have to sacrifice network and processing speed to do complex auditing and double checks

Reduced costs

  • Less fees because transactions go through one protocol (no third party organisations)
  • Don’t need to pay contractors who know how to use the system
  • Don’t need as much insurance because of the increased security
  • Less legal fees because of trustlessness
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#5088

I have been really enjoying your answers to the homework questions

:rofl:

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#5089

Thanks,

You also seem to have good answers here :grin:
You also new here?

#5090

Yes, just started 2 days ago and you?

Haha I look forward to seeing your answers on the next homework questions today :sunglasses:

#5091

I am a returning student.

I already did the basic courses before. But due to full time work i did not upgrade to professional plan back then. Also, interested in crypto since 2016. But i knew nothing of programming.

However now i quit my job, and have time to really go for it.

Also looking forward to read yours. :slight_smile:

#5092

I also quite my job recently, I guess we are part of the “Great Resignation” :sweat_smile:

That’s cool that you are really going for it now. I actually worked doing programming and crypto was more like a side interest but now I am really getting into it and keen to get involved with some projects

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#5093

Transparency - everyone has the same information.
Security - everyone has to agree to the information on the blockchain.
Improved traceability - you can see every part of the information about the chain or everyone involved in that specific record.
Efficiency and speed - you trust the protocol and everyone has the same information.
Reduced cost - once it is sent to the blockchain it is verified and no intermediaries are required that usually add costs to the process.

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#5094

Transparency: Means every record can viewed on the blockchain. Any transaction and flow can be viewed by the people with given access.

Security: Since every transaction are stored across network instead of computers instead of a single server, it will be very hard for hackers to compromise any transaction data.

Improved traceability: Every flow will be stored on blockchain which means it will be easier to track data’s’.

Increased efficiency and speed: When everyone have an access on the same information, it will be much more easier to do the work that needs to be done without communicating to each other back and forth.

Reduced cost: Since everyone will have access to the same information, it will reduced cost to contact middlemen of third party’s. There will also be less cost reviewing documentation since we have the information ready on blockchain.

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#5095

  1. Since everything that ever happens with a transaction stays on the blockchain permanently, you get 100% transparency, which makes it hard to hack or change something in a block, because then it would require to change all the other blocks to match. It is also beneficial for companies that want to know exactly what their suppliers are using, or clients to a business to see exactly who they are paying…

  2. It is safe because nothing can be altered. It can only add on the blockchain, not remove so it’s safe for business to use, if maybe their client says that they have paid or the transaction hasn’t gone through, it’s all traceable in blockchain. And nothing is based on trust, the more trestles the better because then it is just facts and proof.

  3. Every single transaction can be traced in the blockchain, which means that we don’t need to trust that something has happened or didn’t happen, we can know for sure.

  4. It’s all online-based, which if you compare to a traditional process using paper will take way less time. It also has high availability so it’s online and going 24/7/365. Traditional banks are prone to human errors and it requires a lot of paperworks to make ap payment go through using a traditional bank. And using blockchain everyone has the same information which makes it easier to trust and no need for a third party to handle the business.

  5. It reduces costs because there is no need for a third party to handle things, this because when handling money through blockchain you don’t need to trust the one you’re trading with, you only need to trust the blockchain. And because you cannot get hacked or scammed because it’s no possible to make any changes on blockchain.

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#5096

transparency- The blockchain has full transparency and audibility even if Encrypted you can fully interact with the data.
security- Improved security through verification nodes and consensus protocols.
Traceability- being able to track supply chains and other assets through varying transactions on the blockchain.
Increased efficiency and speed - maybe not the bitcoin blockchain but certainly through differing consensus’s chains like Polygon and Ethereum are able to keep pace with visa.
reduced cost- once again i think thats chain dependent as far as gas fees and transaction prices are concerned.

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#5097

transparency; All participants share the same documentation or info.

security; Transactions must be agreed upon before they are recorded. After a transaction is approved, it is linked to the previous transaction.

improved traceablity; Everything is recorded so you are able to track every step of every block from the beginning until present point.

increased efficiency and speed; You eliminate third parties.

reduced cost; You eliminate third parties.

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