Reading assignment: Benefits of the Blockchain technology

[Ariel90]

1. Transparency
   All blockchain transactions are verifiable, and there is no chance of obtaining copies of the same transaction.

2. Security
   Transactions can be recorded and confirmation can be obtained with the network.

3.Traceability
All blocks are traced with hashes and with many users that are in the same network it is not possible to have data that is similar.

4. Reduced Costs
   Costs are reduced because there is no third parities participating and that will make the difference in being cost effective in an organization’s budget.

[Taishi_Nammoto]

1. Transparency:

The transaction record is accurate because it is verified though consensus. The consensus means people (miners) monitor every transaction and also monitor other minors’ verifications to make sure the record of blockchain is accurate.

2. Security:

The transaction record is verified though numerous computers (minors). Therefore, hackers are almost impossible to place a fake transaction by getting though all of the verifications.

3. Improved traceability:

You can trace all of the transaction histories. In other words, you can see the flow of assets from the origin.

4. Increased efficiency and speed:

Blockchain records data when it is verified by miners. Therefore, the verification is necessary only once in a new transaction.

5. Reduced cost:

You can avoid extra fees of third parties and trust by using blockchain transactions.

[SuperiorBlocks]

Transparency:
A copy of the ledger is distributed to all network participants. If one or more participants want to cheat all the rest of the network participants would see they are cheating and reject the admission of the change.

Security:
Consensus with all the network participants and encryption makes it extremely difficult (mathematically impossible to an extremely high confidence level) for hackers to compromise data.

Improved traceability:
Blockchain’s historical transaction data is an audit trail starting from it’s origin through the present including every transaction in the middle. The audit trail is pristine because of provenance and the requirement of network participants consensus.

Increased efficiency and speed:
Blockchain eliminates human error from paper processes and cuts out many reconciliation processes (less steps) like accounting which ultimately is more efficient and digitally super fast.

Reduced cost:
With blockchain middlemen and third party accounting firms are not needed which cuts cost dramatically because the block chain is trustless, immutable, has finality, and is based on protocols that do not arbitrarily change. The data is accurate, correct, and every network participant has a copy of the ledger making it totally transparent.

[rebeccawatkins16]

Transparency: Transparency is possible because those who have permission have access to the copies of information. To change a single transaction requires alteration of all records, and the collusion of the entire network.

Security: Information is stored across a network of computers, and a transaction is encrypted and linked to a previous transaction.
Improved traceability: The benefit of traceability through the blockchain is amazing because you wind up with an audit trail that shows where an asset came from.
Increased Efficency and speed: Since record keeping is performed by using a ledger it allows everyone access to the same information.
Reduced Cost: You don’t need as many third parties, and you just have to worry about trusting the data.

[tzujan]

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

Transparency:

The benefit of transparency in blockchain is that all the data on the blockchain is shared real time on every computer node in a decentralised network.

Everyone can see every data transaction. New data will be updated when verified by protocol and the whole network. Once accepted it cannot be altered in any way. This creates a trust-less environment where users can trust the math and the protocol unlike any central entity.

Security:

Blockchain in short offers high security. Blockchain is uncompromisable. From finance, health and businesses to other institutions, blockchain gives opportunities in protection from fraud and hacks.

The data has to go through a consensus mathematical protocol in order be added to the blockchain. Any data cannot be altered once a data been accepted by the whole blockchain network. This trust-less verification protocol is transparent for everyone on the network and cannot be hacked. Thus data on the blockchain is more accurate, consistent and secure.

Improved traceability:

The trust-less decentralised environment of blockchain, leaves an much more secure and verified audible trace than centralised networks. Every asset that is added to the blockchain has been verified along every step of the journey. This historical data trace can be used to verify if assets are authentic and hence prevent fraud.

Increased efficiency and speed:

Blockchain speeds up trust without third parties, and is faster and more efficient than traditional central systems. Blockchain cuts out middle men, by eliminating the risk for third party error or corruption. Is greatly more efficient than centralised systems. Transactions are automated through a single ledger on the blockchain, instead of using multiple ledgers in traditional centralised systems.

Reduced cost:

Every business owner is incentivised to cut costs and maximise profits. The trust- less system of blockchain removes need for 3rd parties to validate data. This reduces the costs as the middle men are cut out.

[JComes]

Transparency: This allows just about anyone to see transactions, additions to the blockchain are made by community, no single owner, everyone has the same record

Security: As the blockchain is not centralized and has no single owner, it is difficult to hack, and as above additions are made by community and not a single person/entity

Traceability: provenance allows us to see the origin of a transaction useful for tracking supply chain processes

Efficiency and Speed: Single ledger, no middle man, digital database reduces waste, errors, and increases speed

Cost Reduction: fewer resources needed to manage information on blockchain, trustless and permissionless reduces errors and necessity for excessive auditing

[ArirangCrypto]

1. Transparency: Blockchain is a type of distributed ledger and all network participants share the same documentation as opposed to individual copies.That shared version can only be updated through consensus. So none can alter or change the recorded records without notice and that prevents the collusion of fraudsters.
2. Security: In the blockchain system, transactions must be agreed upon before they are recorded. After a transaction is approved, it is encrypted and linked to the previous transaction. This, along with the fact that information is stored across a network of computers instead of on a single server, makes it very difficult for hackers to compromise the transaction data.
3. Improved 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 it made on its journey. This historical transaction data can help to verify the authenticity of assets and prevent fraud.
4. Increased efficiency and speed: Since record-keeping is performed using a single digital ledger that is shared among participants, you don’t have to reconcile multiple ledgers and you end up with less clutter. And when everyone has access to the same information, it becomes easier to trust each other without the need for numerous intermediaries.
5. Reduced cost: With blockchain, you don’t need as many 3rd parties or middlemen to make guarantees becuase it doesn’t matter if you can trust you trading partner, that is trustless. Instead, you just have to trust the data on the blockchain. You also won’t have to review so much documentation to complete a trade because everyone will have permissioned access to a single, immutable version.

[nick996]

Transparency:Anyone can see the ledger on the blockchain

Security:Blockchain is on computers across the world.

Improved traceability:You can see the transaction.

Increased efficiency and speed:Blockchain in multiple computers.

Reduced cost:You are getting to the middle man.

[prakashmech1]

1. Everyone in the network shares the same information and is transparent to everyone. The information added to the blockchain is agreed upon through a common consensus within the peers.
2. Every block in the chain is encrypted with the previous block and stored it across the network of computers to increase the security. If someone wants to alter the transaction, then he/she has to modify the subsequent and as well in the network computers, this increase the security.
3. Easy to trace the origin of the product or transaction not through TRUST but through set of rules and VERIFICATION
4. Removing third parties or intermediators by implementing automated process through a set of rules. This improves the speed and no need for double check the transaction because the information is added through consensus with in the peers in the network,
5. By removing the third parties, the cost involved in performing the transaction is also saved. Since its AUTO AUDITED when any new transaction is added to the chain, no need to external audit required and the same information is available for others in the network.

[Maleve]

The blockchain represents a major advance in the immutability of data storage and trustless transfer of value. Its technology spreads data through the public ledger to all nodes in a transparent manner, where all nodes can verify and anyone outside the network can check the information. It provides security by creating an irreversible process in the data storage in the blockchain, it can only be added and not manipulated. It improves traceability by its immutability, one can verify the blockchain and see all the data registrations since the genesis block. Efficiency and speed may not be the blockchain’s best attributes, but I would assume it depends on which blockchain we’re talking about, some blockchains are more efficient and faster than others in creating new blocks. For bitcoin on average every 10 minutes, a new block is created, and thus I wouldn’t consider it efficient or fast. I would say that proof of stake consensus mechanism blockchain has its cost reduced compared to a proof of work consensus mechanism blockchain, and thus it provides cost efficiency.

[Mirthis]

Transparency:
On a public block chain everyone can see the full history of transaction. The same applies to the underlying protocol that is public and predictable in the way it operates

Security:
The decentralized consensus algorithm make the blockchain tamper proof and highly available

Improved traceability:
The full history is available for auditing

Increased efficiency and speed:
Having code driven processes remove middle men and decision processes

Reduced cost:
As above

[tmoney88]

1. Transaction histories are available through a shared ledger. And that shared ledger can only be updated by consensus. Everybody with specific permissions can see all transactions that have been approved across the blockchain.

2. Because information is stored across a network of computers rather a single server, and cannot be modified unless by consensus across the network. Makes it much more difficult for hackers.

3. Everything is transparent, new transactions link to previous transactions through the blockchain. Makes for an audit trail from beginning to end of each asset.

4. With the use of the blockchain, you cut out the middle men and it reduces the need for middle men in transactions. Making them more cost effective and smoother process.

5. Same as previous answer, there is less of a need to hire middle men and intermediaries to finalize and facilitate transactions, because you rely on math and algorithims on the blockchain, rather than third parties.

[edagili]

1. In blockchain technology, transactions are transparent. These transactions are agreed upon by everyone and a consensus reached. No one can change it.

2. Security: These transactions after they have been agreed upon and approved, they then encrypted and linked to previous transactions and are stored across a network of computers and not on a single server.

3. Improved Traceability: Transactions have histories and these transactions can be traced and and real time and the authenticity of an asset can be traced and verified.

4. Increased efficiency and speed: Since the processes are automated in blockchain, they are fast and can be completed more efficiently. Since the transactions are stored on a single ledger shared by everyone on the network, there are no need for reconciliation of multiple ledgers.

5. Reduced Costs: In blockchain, you dont need many middlemen for guarantees because there will no need because the issue of trust does not arise.

[Nia]

[quote=“ivan, post:1, topic:8421, full:true”]
Explain with your own words, why these are the benefits of using a blockchain.

Transparency:
Blockchain records are fully traceable the entire history of the blockchain is recorded and non editable, which provides a high level of transparency.

Security:
Blockchains are decentralised and immutable, making it much harder for traditional attack vectors to cause issues. A change to the blockchain requires the consensus of all nodes on the blockchain, making it unlikely for malicious attacks to succeed.

Improved traceability:
They offer a high level of traceability which is a big benefit for supply chain processes, making it easy to trace the entire journey/life cycle of for example of product to validate where it came from its quality or other parameters.

Increased efficiency and speed:
They reduce the reliance on workforce heavy, manual processes and allow organisations to work more efficiently and also more real time.

Reduced cost:
Cost are being reduced due to the reduced need on manual processing, or hiring internal functions as well as 3rd parties to aspects such as auditing. The blockchain brings significant opportunities to automate these, while being more reliable and cheaper.

[Jedi06]

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

1. Transparency: Everyone can have a copy of the ledger and past records can not be altered.
2. Security: strong encryption matched with an immutable ledger make the network secure.
3. Improved traceability: Provenance is simpler and more accurate than before.
4. Increased efficiency and speed: Cutting out the middlemen and paperwork saves time.
5. Reduced cost: Intermedatritys have to get paid to so cutting them out saves money.

[skleinheny]

Transparency:
All transactions are recorded in a public ledger which is visible to everyone in the network. This removes the need of trust.

Security:
A block requires consensus before it gets written in the blockchain and block can only be added, not removed or modified. Modifying a transaction / block would require to modify the block and all subsequent blocks and have them approved in the consensus by more than half of the network which is practically extremely difficult. The fact that the network is distributed also reduces the potential loss of service as we can have in a centralized system.

Improved traceability:
The fact that the information in the blockchain is immutable allows to trust the information which becomes a real audit-trail. Each “step” is recorded in the blockchain and allows to follow a transaction from start to the end.

Increased efficiency and speed:
There is very little human interaction and most of the work on the blockchain is automated, which bring efficiency and speed.

Reduced cost:
There is almost no middlemen involved in the process, thus making sure that the cost is reduced to the bare minimum in order to maintain the network up and running by incensitiving miners for example. In comparison to traditional financial services where banks and intermediaries get their commission on every transaction.

[Maya]

Transparency:
The blockchain is available to all participants who have permission to access it. To change a single transaction record would require the alteration of all subsequent records (which would necessitate collusion).

Enhanced Security:
Each transaction is approved, encrypted, and linked to the previous transaction. Since the information is stored on a network of computers (not a single server), it is more difficult for hackers to compromise the data.

Improved Traceability:
When exchanges of goods are recorded on a blockchain, you have an audit trail that shows where the asset came from and every stop that it made on its journey. (just a couple of questions: - Why then is bitcoin itself so untraceable? - Why can it be used as such an anonymous / untraceable form of payment?)

Increased Efficiency and Speed:
There is a single digital ledger that is shared among partipants.

Reduced Costs:
There is less need for third parties and middlemen due to a simple trustless system.

[Venky]

1. Transparency enhances trust and reduces the cost of friction.
2. Blockchain is way more secure than a typical database and is more costly and inconvenient for an attacker,
3. Improved traceability helps companies working in supply chain
4. because everyone has the same truth, settlement and clearing is way faster in a blockchain
5. because blockchain eliminates trusted third parties, cost of intermediation is eliminated.

[JonBal]

Transparency: Blockchain enhances transparency by relying on a immutable network that requires all subsequent nodes to verify an addition of data through consensus.

Security: Transactions must be agreed upon before being added, they are linked to the transaction before them and stored across a variety of machines rather than a central server.

Improved traceability: When things are stored through a blockchain you end up with a trail of every stop something made and everywhere its been along its journey making it much easier to track where its been.

Increased efficiency and speed: Traditional methods are prone to human error. When everyone has the same copy of information its much easier to trust one another, and when the process is streamlined through a protocol based on mathematics it removes human error.

Reduced cost: With blockchain there is less need for middlemen, third parties, you dont need to trust who you are trading with and you dont have to review as much stuff.

[Brendos3r]

1. Transparency:
   Due to the immutable nature of transactions on the blockchain, it provides a level of transparency that is otherwise unachievable compared to any other form of centralised database. Every transaction on the blockchain is publicly accessible and verifiable.

2. Security:
   The Blockchain creates a trustless system by removing the element of trust required when transacting or sharing information with 3rd party corporations or organisations.
   Due to the fact that data is stored on a network of shared computers rather than a single server, it greatly minimises the risk of being lost, compromised, or hacked.

3. Improved traceability:
   By recording all transactions, the blockchain acts as a ledger that is publicly accessible. All records on the blockchain are immutable. Data can only be entered but never manipulated or erased. All transactions on the blockchain are verifiable and can be traced.

4. Increased efficiency and speed:
   Due to the transparency of transactions on the Blockchain, it potentially reduces the need for 3rd party mediation particularly when it comes to record-keeping and auditing. There is no longer the need to reconcile multiple ledgers, as the blockchain acts as a single digital ledger that contains records of all transactions.

5. Reduced cost:
   Due to the decentralised nature of the blockchain, it has the potential to operate as a “trustless” system. Trust is placed in the systems and protocols rather than in a 3rd party. This reduces or eliminates the reliance on 3rd parties or middlemen, hence saving on fees or commissions.