Reading assignment: Benefits of the Blockchain technology

[crypto_simp]

Because Blockchain is a kind of distributed ledger, all network participants share the same data - a complete record of all the transactions ever validated on-chain. Sharing data in this way increases transparency and is a unique feature of blockchain networks.

Enhanced security is built-in to blockchain architecture. The consensus mechanism, for example, spreads responsibility for validating transactions across multiple network participants. This eliminates single points of failure and makes it practically impossible for bad actors to compromise transaction data.

Blockchain also offers an audit trail when used to record exchanges of goods or services. You can see where an asset originated - and - every stop it’s made on it’s journey in real time. Historical transaction data can be used for authentication purposes or to prevent or prove fraud.

Let Blockchain do the heavy lifting. The code streamlines and automates numerous intensive operations and those that previously relied on human involvement. As reliance on human beings is reduced, so too is the potential for all kinds of human induced error. Likewise, limitations artificially imposed on the network due to it’s reliance on human actors and human input can be removed. These are the two most important ways where blockchain is proving it can improve both speed and efficiency on the network.

Trustless operations are at the heart of Blockchain. By removing trust we can also remove middlemen and other third parties. In doing so, we get to keep more of the pie for ourselves. Blockchain can also save you money by saving you time. Instead of multiple copies of documentation to work from, Blockchain offers all participants the ability to work from permissioned access to a single immutable version of the relevant data - on demand and in real time.

[homegrownhuman]

1. Transparency:
   A blockchain is a distributed ledger. All transactions are visible for everyone with access.

2. Security:
   Transactions are stored on the ledger after all network participants agreed on it. This is called consensus.
   A transaction can not be reversed once settled.

3. Improved traceability: Every transaction can be traced back to its origin, as the ledger has saved every step along the way.

4. Increased efficiency and speed:
   Less to no intermediaries within the process of settlement makes the process much faster compared to traditional banking. You trust the Network and its data instead of a multitude of intermediaries that could be fraudulent.

5. Reduced cost:
   Less to no intermediaries within the process of settlement makes the process much more cost effective traditional banking.

[Pernu_Menheer]

1. Transparency:
   When everybody has access to the same data it increases confidence which is very neccesary in business

2. Security:
   It is more secure than a centralized database, as those databases have a single point of failure

3. Improved traceability:
   Traceability allows businesses to know the history of a product through the supply chain.

4. Increased efficiency and speed:
   Information is public and readily available on the blockchain

5. Reduced cost:
   Less need for middlemen to verfiy or make gaurantee because it does not matter if you trust your trading partner.

[Retekh]

Transparency: All transactions are in the database. All transactions are public to everyone. There is one immutable version. All computer running the code have to agree on the transactions (consensus).

Security: Many computers are running the blockchain code in unison which makes it hard to hack.

Improved traceability: All transactions are audit traced so it is easy to follow the transactions to the origin.

Increased efficiency and speed: No third parties or intermediaries are needed and the blockchain can do it all and without human error which makes the speed much faster and with less error (less messy).

Reduced cost: You don’t need as many third parties which cuts down on the costs.

[Saint_77]

Transparency: Being transparent benefits everybody envolved as everybody has access to the same data and because its decentralized, they know they can trust the data.

Security: Because the entire blockchain lives on each node, and because all nodes must reach consensus before a block is added, makes it near impossible for hackers to add fictitious transactions.

Tracability: Because everone can verify for themselves what is on the chain, it makes it easy for any participant to trace any transaction.

Efficiency and Speed: Because no middle man is needed to validate and verify makes it very efficient and fast.

Reduced Cost: Because of all the previous points, it results in a great reduction in cost across all aspects.

[Coinduke]

1. Transparency: Unlike most centralized databases, blockchain is a public ledger, so everyone can keep track of all actions happening, for all network participants and the counterpartys they transact with, in present and past.
2. Security: Blockchains are decentralized networks using consensus mechanisms that cannot be undermined by single actors or a minority, i.e. data cannot be modified once written by means of consensus. The network as a whole can be trusted as long as more than half of its “energy” (represented by miners or validators) acts in good faith.
3. Improved traceability: Each asset on a blockchain has a history and that can be tracked back to its origin when the element was introduced in the first place. Think about a bitcoin miner receiving a block reward and some bitcoin was minted to his/her address. The future journey of these minted BTC (who held or currently holds them, in full or a fraction of the original amount) is publically known and can be followed by anyone with the help of free blockchain explorers or more sophisticated tools.
4. Increased efficiency and speed: The current state of the blockchain is always known and it is up 24/7, so it’s possible to have a transaction processed and confirmed very quickly, within only a few blocks if necessary (at the expense of more or less gas fees). That can be several minutes or a few seconds depending which blockchain technology is used.
5. Reduced cost: Each data or financial asset on the blockchain is digital, so is each transaction. Everything is stored on the internet without the need for own storage and backups, with permanent online access, and middlemen can be avoided. This reduces paperwork, record keeping, cost for third party services, and some local IT infrastructure.

[Gnarly.Karly]

Transparency: Blockchain provides a reliable database that can not be altered. Every individual within the network views the exact same transactions through a distributed ledger. It is nearly impossible for the data to be altered, since it would require a network-wide corrupted consensus.

Security: Enhanced security is is present within the Blockchain through the approval of each transaction, encryption, and storage of information across an entire network. After every transaction, it must be approved. Then after approval it will be encrypted and reveal all previous activity. This data is then stored on a shared network. Since the data is encrypted and isn’t accessible from one central point, it enforces extreme difficulty among hackers and malicious attackers.

Improved traceability: Due to Blockchain’s real-time auditing database, traceability is a strong attribute within the network. Each transaction is approved, saved, then linked to the asset. Therefore, history about a product can be easily traced since all information is provided within Blockchain’s database.

Increased efficiency and speed: Blockchain creates a simple, automated, clutter-free, and trust-less environment, designed to simplify a user’s experience. With the storage of information on a single ledger and the advanced technology of blockchain, transactions are quick, efficient, and clutter-free. Also, the aspect of everyone holding the same records and information, it eliminates the need to trust one another.

Reduced costs: The implementation of Blockchain eliminates the need for third parties and documentation fees. It is a single database that is immutable, making it cost-effective and convenient for users.

[andrae0921]

Transparency: Everyone can see all transactions globally. Security: Every transaction is public. Improved traceability:able to not only trace transactions, but also food ingredients and products. Increase efficiency and speed:There isn’t a middle man. Reduced cost; no third party to deal with.

[Ergo]

1. Transparency - blockchain has a consensus mechanism therefore data entered into the system goes through multiple network participants and shared.

2. Security - transactions go through consensus before accepted into the ledger. The data is also linked to previous transactions and not one server holds the information.

3. Improved traceability - data entered and accepted by consensus is linked to its previous transaction.

4. Increased efficiency and costs - Transactions are recorded into a single shared ledger that is cannot be manipulated. This eliminates the risks of having to reconcile records.

5. Reduced costs - Since blockchain provides the above mentioned benefits, businesses won’t have to engage with 3rd party providers that offer similar services.

[gvent]

Transparency: every node of the blockchain network has access to the entire history of transactions => is able to verify if the next attempted transaction is valid.

Security: every node of the blockchain network must verify each transaction instead of a single centralized server doing so. Each new transaction is linked to the previous one. A change to any existing transaction would require a change in the entire blockchain following that transaction and the agreement of all nodes of the network on that change => very hard to crack.

Improved traceability: blockchain creates a real-time audit trail built into the transactions. This audit trail makes it very straightforward to trace an item back to its origins.

Increased efficiency and speed: a single digital, shared and automated ledger takes multiple cluttering factors out of the equation. Some of these are human errors, reconciliation of multiple ledgers, and third parties. This results in greater efficiency of transaction handling, which leads to better speed.

Reduced cost: all of the above benefits result in reduced cost.

[MarBlockchain]

Transparency: Each node, each computer has a copy of the same Data Base, so all the data is accessible for anyone, anytime.

Security: When we have the data in a central Data Base, this “centralization” is a high risk, meanwhile when it is decentralized, it is impossible to hack a entire decentralized network.

Improved traceability: in the actual systems de data in in silos, meanwhile with blockchain the data in in the same ledger.

Increased efficiency and speed: as the decision is not been made for a central authority, and it been made for a consensus system, this give us efficiency and speed. As well, as I mentioned before, you have access to the date in the same ledger, so that is faster than going to see the data in different systems.

Reduced cost: third party entities validate and this validations have costs. Same with using different infrastructures, here with have one. less costs more efficiency.

[vladg]

Transparency:
Everyone can track the transactions of some particular wallets. No one will be able to alter the data as it will bring down the entire network as it will have to alter all the subsequent transactions to reflect the data alteration (impossible). Also, it’s publicly available at a click distance.

Security:
As per the name ‘blockchain’, every transaction is written in a block of data. That specific block will have to be agreed upon by the rest of the nodes/validators and then written on the chain. The block will be linked with the latest block that was written on the chain. One in front of the other. Also, the data is encrypted while being written on the chain (harder to hackers to intercept and alter the data, almost impossible).

Improved traceability:
You can simply track the transactions as their are written on the blockchain. You cannot “hide”.

Increased efficiency and speed:
The human error is the most common error while working with papers… this will be avoided in this case as every transactions will follow some rules already dictated by the chain. Your “message” has to met some requirements in order for it to be able to be submitted for approvals (consensus). You cannot trick the system and everything is done in a split of a second (automated).

Reduced cost:
You don’t need to hire someone to be able to execute transactions on a blockchain. Everyone can simply do that. There are no middlemen here.

[RagingLlama]

Blockchain benefits of the following attributes:

Transparency: Because there is a single ledger in blockchain, every one has the same copy of the database.

Security: The decentralized nature of blockchain makes it inherently resilient to hacks and failures in the network. It also makes it difficult to compromise and conspire to cheat anyone.

Improved Traceability: Recording information about how inventory or assets have passed hands between different parties gives better visibility to interested parties on the history of an asset.

Increased efficiency and speed: Because there are not different and out of sync copies of the same information and you can simply trust the network without having to deal with intermediaries, you have improved speed and efficiency in transacting as well as in auditing and verifying information about transactions.

Reduced costs: Less intermediaries means less hand-offs, less errors, and less rework. Less work and removing bad quality data reduces costs in time and process.

[ChadSmith]

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

Transparency: Any with access can view the entire history of the data on the blockchain and therefore it’s the purest form of transparency as any can view the data without changing it.

Security: The data on the blockchain cannot be manipulated nor changed, it means that it’s ultra-secure and doesn’t rely on a central entity which is susceptible to error or falsification.

Improved traceability: The blockchain records all past transactions and therefore makes it easy to trace the transaction history. It’s all there on the blockchains single location.

Increased efficiency and speed: Reconciliation is much easier as all the data is in a single public location and therefore doesn’t need to take hours/days/months of reconciliation to ensure the data is correct and accurate. Thus resulting in the ability to move on more speedily.

Reduced cost: By removing a host of third-party entities and personal, thus results in reduced costs by the organisation.

[teddyrockwell]

1. Transparency: Users are able to validate and verify transactions using a decentralized blockchain.
2. Security: Security on a decentralized blockchain is better than that of regular data system because there is no longer the issues of an information silo or single point of failure.
3. Improved traceability: Transactions on the blockchain can be audited and traced. Once transactions are made on the blockchain, they are immutable.
4. Increased efficiency and speed: A decentralized public ledger allows for faster information spread and for faster transactions because there isn’t a need for multiple ledgers have to communicate amongst each other like with banking institutions, etc.
5. Reduced cost: Not requiring multiple ledger middlemen allows for businesses to cut costs since they only have to interact with a blockchain but the other benefits associated with blockchain, can improve supply chain processes, and lead to the domino effect where costs lower.

[Adrienn_Rimbauer]

1. Transparency: all computers on the network are sharing the same information, which can be only updated by consensus, so all computers need to agree.
2. Security: Transactions are agreed before before they are recorded, and all computers have the same copy of the transaction, the original copy. So it is really hard to hack the transaction, as one would need to hack each of every computer on the network.
3. Improved traceability: Every change is recorded on the blockchain, so it is very easy to track all changes back.This can prevent fraud as well.
4. Increased efficiency and speed: A single ledger is keeping the records, which is shared among the computers, so there is no need for multiple ledgers, so it is less cluttered.
5. Reduced cost: with blockchain you don’t have to trust the person, but the math. As everyone has a copy of the transactions, there is no need to have a lot of documentation.

[Alexander_Hernandez]

1. The information that is placed on the block chain can be seen and viewed by all parties or participants. Transactions can be proved and accuracy of the product to the consumer can be tracked. This also prevents fraud and double spending.
2. Transactions that are finalized on the block chain are there forever and cannot be messed with. The code is the law when it comes to security and trust in the block chain. Various validators agree on the information, rather than a third party.
3. Producers and consumers both benefit from having the ability to look back at transactions on the block chain. There is little trust needed from peer to peer and trust should be placed in the code and the accurate tracking that it does. People will get what they paid for or atleast have proper proof.
4. Upgrading businesses to the block chain will let companies become open source and have no need for a record keeper or accountant. Users can go back on the block chain and view transactions from that day or from years ago. The network sends information to various computers that all come to agreement that the information is correct.
5. The peer to peer system that block chain uses allows money to sent to a specific person or company. Third party validators have high cost and provide a security issues. The open source code allows transactions to be checked by both parties.

[JoshuaD]

1. What makes blockchain transparent is that any transaction made on the network is viewable by anyone in the world. A good example is etherscan.
2. What makes blockchain so secured is that every transaction made between users is final and irreversible.
3. It has improved traceability compared to centralized networks due to the immutable standards blockchain has create to ensured users see where to/from their money is going to.
4. Speed and efficiency plays a role in blockchain transactions because nodes/miners work as fast as they can to “solve the riddle” so they can be incentivized immediately.
5. The reduced cost of using blockchain is that it is run by a series of computers verifying transactions using computation by removing the human labor/central authority of having to validate these transactions which also goes back to number 2 on security.

[Rumg]

Transparency:
Because each participant has shared access and any changes are made by consensus without the possibility of altering subsequent records.

Security:
There are agreements before generating the transaction, it is encrypted and linked to the previous one. The data is stored in a distributed manner. These features enhance security, reliability and prevent fraud.

Improved traceability:
Because the block chain cannot be altered, it allows tracking or verifying the history of transactions, thus increasing the reliability and authenticity of each record over time.

Greater efficiency and speed:
By minimizing human intervention in some key processes and taking into consideration that a single digital book would be used, processes and speed are optimized.

Reduced cost:
By dispensing with third parties and intermediaries that guarantee a commercial transaction, costs are inherently reduced.

[RolandtenHaaf]

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

Transparency:
Participants meet consensus PoW or PoS,Transactions are set in stone, only add transactions can not remove transactions.

Security:
Consensus, encryption and linked on the previous transaction

Improved traceability:
In a supply it’s hard to trace an item back a product to its origin. 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.

Increased efficiency and speed:
Record-keeping is performed using a single digital ledger that is shared among participants, you don’t have to reconcile multiple ledgers. And when everyone has access to the same information, it becomes easier to trust each other without the need for numerous intermediaries.

Reduced cost:
Trust your trading partner, they use the same blockchain with a single version of the truth immutable version.