Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#522

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

Transparency: Blockchain transactions are visible to all on the network. Everyone on the ledger has access to all the transactions. Any single transaction can be difficult to change or reverse, since it must be agreed upon by consensus of all subsequent transactions on the blockchain.

Security: All transactions must be agreed upon before they are recorded. After the transactions are encrypted and linked it is stored on all member networks or computers, instead of one computer or network. If sensitive data needs to be secured then blockchain is the method to ensure it is traceable.

Improved traceability: It’s hard to trace the origin of a product, however, on blockchain you end up with an audit trail showing its entire journey. The historical transaction data is used to verify the authenticity of assets and prevent fraud.

Increased efficiency and speed: When a paper process is used its time consuming and prone to human error. By streamlining and automating these processes/ transactions with blockchain the transactions are completed faster and efficiently. Record keeping is simplified using a single ledger and it doesn’t have to be reconciled. The settlement is quicker.

Reduced cost: Using blockchain you don’t have third parties or middlemen making guarantees. Instead you can trust the data on the blockchain as recorded. Everyone involved has the documentation on the ledger, an immutable record.

1 Like
#523

  1. Transparency
    The information is out in the open for everyone to see. All transactions that have been accepted are saved and cant be changed or removed unless there is concensus in the network.

  2. Security
    When transactions have been added to the blockchain its encrypted and linked with the transaction history and saved on the network, alot of computers around the world insted of a server. Its easier for a hacker to attack one server than a whole network of computers.

  3. Traceability
    Its easier to see where products are coming from, where it been, if something have been added, when everything is saved on the blockchain. It makes it easier to do bussnies with people/companys you dont know and it prevents fraud.

  4. Efficiency and speed
    When everything is saved in the same database, its open for everyone with access, so you dont have to trust eachother, transactions can be made 24/7/365 with no middleman makes the process safe, efficient and fast.

  5. Reduced costs
    When you dont need a middleman to broker a deal, make sure that a product is legit, make transction, then you start to save alot of money and time.

1 Like
#524

Transparency:
All nodes in the network share the same data and information which can only be updated through consensus among all the nodes. To alter a previously recorded transaction would require changing all previous transactions and the collusion of the entire network.

Security:
All data recorded in the blockchain is immutable and stored across a network of computers instead of a centralized server where all the nodes in the network must agree on transactions before they are added to the blockchain.

Improved traceability:
Since all transactions are recorded in the blockchain and publicly available to the network, it is possible to audit trail the journey of any given asset to its origin to prove the asset’s authenticity and thus prevent fraud.

Increased efficiency and speed:
All processes and transactions that occur within the blockchain are automated through computer code and do not require human intervention nor 3rd party mediation, therefore reducing human error and removing the need for useless bureaucracy.

Reduced cost:
The processes occurring in the blockchain are streamlined and automated where all participants in a transaction have access to a single, immutable and public version of the data in the blockchain. Since trust is put in the system itself rather than business partners or middlemen, the need for mediators and heavy documentation is removed.

1 Like
#525

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

Transparency comes into blockchain by allowing all parties involved have an up to date ledger that every transaction is recorded onto. A single bad actor cannot hide a fraudulent transaction without obtaining group consensus.

Security is achieved by group consensus, claims being made can be verified by the immutable transactions on the blockchain. Bad actors cannot say their product is one thing when other actors on the chain are agreeing upon something else.

Improved traceability will happen when a network can connect and agree upon the process of any asset. The process that a product must go through will connect any person or company that touches the product, along with any other person or company that this one person or company works with. All leading to a greater sense of transparency and traceability.

Increased efficiency and speed, seeing as mathematics and computation rule the blockchain, anything entered into it is pretty straight forward. There is no more need for people to mediate and possibly create an error. This streamlines the proccess of moving information and value across a global web of computers.

Reduced cost is achieved by taking out the middlemen. There will be no need for companies that certify or legal administration when all information can be certified and agreed upon through group consensus over a distributed ledger.

1 Like
#526

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

Transparency:
The ability of rewinding at any time to revisit a transaction keeps it honest and trustworthy.

Security:
This benefit comes from the incentivized decentralized miners

Improved traceability:
Open for all to see, including the Tax man. Oops, when are we going to get another layer in BTC?

Increased efficiency and speed: Another Oops, not so efficient or speedy

Reduced cost: Oops, not cheapest solution either, but all in all, a worthy HODL.

1 Like
#527

  1. Transparency:
    The blockchain is a distributed ledger, which means everyone has the same copy of the ledger, to change a transaction on the ledger you would have to have consensus by everyone and then change all previous transactions linked to that transaction. This makes it incredibly difficult, which is why the blockchain is so accurate, consistent and transparent.

  2. Security:
    • Transactions must be agreed on by all parties before is takes place. The new transaction is linked to a string of previous transactions and all these transactions are encrypted before being stored as duplicate copies across the entire distributed network. This helps prevent fraud and unauthorised activity.

  3. Improved traceability:
    As in the context of a supply chains, it’s difficult to confirm the authenticity of the origin of good, the block chain can help track the good from point of origin to it’s final destination with checks along the way as to what condition is was in at every checkpoint in transit. Thereby increasing traceability.

  4. Increased efficiency and speed:
    Anything that requires paper heavy processes, like the sale of goods and services is a candidate for the blockchain and stands to experience efficiencies. Since the blockchain is a single distributed ledger all parties have access to the same information making it easier to trust the other party without the need for many intermediaries. This drastically reduces the time to settlement.

  5. Reduced cost:
    With less intermediaries needed to facilitate a transaction this greatly reduces the overall cost. This is made possible due to one party not having to trust the other as they only have to trust the data on the blockchain and peace-of-mind knowing that the blockchain is immutable. Costs are further reduced by the fact that the accounting layer is joined with the transaction layer so realtime auditing takes place.

2 Likes
#528

  1. Blockchain transparency means that you don’t have to trust to anyone like you explained at the beginning of this course and also that you have the infrastructure to validated the information.

  2. Today we can say that there are a high level of security using the blockchain transaction because of consensus but if a power computer is created maybe the security can be vulnerable.

  3. Traceability = possibility to verify history very easy been able to trace the information

  4. We can make peer to peer transaction easy and faster eliminating the intermediary decreasing cost.

  5. Because you don’t need the intermediary to make business.

1 Like
#529

Transparency:
All participants of a blockchain network share the same information because everyone can have a copy of the public ledger where all the information is stored. It is like copying a DB for everyone. Changes in this DB have to be agreed on by all the other participants of the network. So the information set on a blockchain can be seen as more accurate, consistent and transparent than on any other process. Rolling back a single DB entry would require the agreement of the whole network.

Security:
What enhances the security of a blockchain network compared to a classic DB are:

  • agreed transactions on changes by the network
  • new transactions are linked and encrypted to the former ones.
  • a wide spread network of blockchain participants can’t be destroyed or manipulated
  • BC can help to avoid fraud by having reliable information in all critical parts of a society.
  • no unauthorized sigle person with “admin” rights can change data in a BC database.

Improved traceability:
With a improved traceability we would not have to trust anyone in the food industry which ingredients are put in our meals, we just would be able to verify along the supplychain.

Increased efficiency and speed:
By trading on a blockchain we could wipe out a lot of human mistakes and speed up the process in cause of fixed rules and processes that today have to be created by checking information over and over again in the sense of a quality management.
This would also streamline processes and make them faster and more efficient.
Save time - save money - reduce mistakes - reduce service issues

Reduced cost:
By speeding up processes you save resources and reduce manpower per case.
Reduced manpower leads to reduced costs.
All given information on a BC will be trusted because everyone knows that it is immutable.
No need to verify over and over again. - save time - save costs - be faster than you competitor.

1 Like
#530

Transparency:
Every participants in the network share the blockchain, they can see transactions back in history. Any added transaction to the blockchain need consensus of all the other participants in the network.
Security:
If we want to have a monetary system based on a computer code it must be unhackable and safe. A transaction that is taken place on the blockchain is there for good. It can’t be changed. All participants (nodes) in the network sharing the same blockchain and if changes is made to it they all have to agree that this change is legit. No double spending for example. To hack BTC blockchain the hacker must change the documentation that is shared on all nodes. That is an impossible. The question is if a quantum computer can achieve that.
Improved traceability:
Provenance from lesson 1. All information entered into the blockchain is viewable. That was a big misconception that BTC was anonymous which is not. All transactions can be traceable. But this also helps solving problem with false information. One can not changed what is entered and false claims is traceable.
Increased efficiency and speed:
A system that is trustless doesn’t need a third party where a transaction is stuck at to be proven. No fees that needs to be added (for Nano but for BTC).
Reduced cost:
The speed of the network will mean far cheaper costs than the conventional networks with delays, so fees will be a small problem when gaining speed and efficiency.

1 Like
#531
  • Transparency: DB is shared on network to be visible for all. Do not trust, verify!
  • Security: Data is stored on blocks and can not be altered
  • Improved traceability: you can track the provenance of everything.
  • Increased efficiency & speed: Using one single DB/ledger you don´t have to reconcile. As everyone has accessed to same data/info, workflow becomes quicker (Speed)
  • Reduced Cost. No more intermediaries!
1 Like
#532

Transparency: Information is immutable and easy to verify if needed. Has a single ledger of information and not many copies that may be subject to time inaccuracies.

Security: Third parties cannot manipulate the protocol. Information is verified by the masses seeking the incentive.

Improved traceability: Transaction have a history log attached to them which helps in the verification. It is possible to verify provenance in each transaction.

Increased efficiency and speed: One network can establish many data points. These networks can collaborate and work coherently and cooperate simultaneously. Modern day companies will need to check who is accessing information and slows down efficiency as several networks may moderated independently in a single organisation.

Reduced cost: If information can be traceable, secure, and transparent on a single network it is possible do reduced the need to audit multiple processes in a value chain. If all parties work on the same network it is a live-stream of authentic data. Costs can be reduced in third party auditing and time managed costs in a business; as it can improves logistics.

1 Like
#533

Transparency: Multiple copies of the ledger are available. It is impossible to change one transaction as all the other copies of the ledger will not agree with your change. This makes the information much more reliable.

Security: The information is stored on multiple computers so it is much more secure than being stored on one single source.

Improved traceability: Information is stored and available to anyone to view on a public ledger. Everyone with access to the ledger can verify the information on the ledger instead of having to trust a 3rd party source.

Increased efficiency and speed: The need to reconcile information from multiple sources is not needed anymore as this information is stored and is a available on the blockchain.

Reduced cost: Reduction of middlemen to confirm transactions saves time and money.

1 Like
#534

Transparency: blockchain enables a digital ledger that everyone has equal access to.

Security: the decentralized nature of blockchain exponentially increases security by having many, even millions of points of failure rather than a single point of failure.

Improved traceability: blockchains are a great solution for supply chains since they are able to show each point of contact all the way back to a good’s point of inception.

Increased efficiency and speed: Blockchains may not “approve” tx’s as fast as VISA/MC but they have the ability to SETTLE tx’s many times faster. Legacy payments systems typically pay merchants 48-72 hours after a tx is approved. Bitcoin has the ability to pay merchants with finality in minutes.

Reduced cost: Various blockchains have different costs but in many circumstances, blockchain payments may be only a fraction of the cost of legacy payment systems.

2 Likes
#535 
• Transparency -  Transaction histories are more transparent through the sharing of the documentation in the distributed ledger of the blockchain.

• Security - Blockchain is more secure than other record-keeping systems, after a transaction is approved, it is encrypted and linked to the previous transaction.  It is stored across a network of computers instead of a single server.

• Improved traceability - Exchanged good recorded on a blockchain provide an audit trail that shows where an asset came from and very stop it made on its journey, helping to verify the authenticity of assets and prevent fraud.

• Increased efficiency and speed - Streamlining and automating clearing and settlement processes by record-keeping performed using a single digital ledger that is shared among participants leaving out the need to reconcile multiple ledgers.  Everyone has access to the same information.

• Reduced cost - Cost reduction is realized by cutting out many third party intermediaries / middlemen guarantees and less time reviewing documentation as everyone will have access to a single immutable version.
#536

  1. Removes the need for audits as all transactions are open

  2. transactions are unchangeable

  3. you can see exactly what wallet send what amount to another wallet

  4. can be sent globally in minuets

  5. fees for sending trans actins are much lower as no banks are needed

1 Like
#537

Transparency: Everyone has the exact same copy of the database and can see each and every transaction.

Security: Since all participants have the same copy of the database and miners are incentivized to continue processing transactions it is very hard to have the database corrupted or eliminated by a third party. If it is decentralized, then the consensus mechanism also brings security as you no longer need to trust a central point of authority.

Improved traceability: Then immutability of the database allows for all transactions and the history of what is transacted to be visible for all participants.

Increased efficiency and speed: Transaction validation can occur faster given that every participant operates over the same information.

Reduce cost: You can eliminate processes where middlemen need to get involved in order to audit and validate what the truth is.

1 Like
#538

  1. All paricipants have to agree with the transaction and have the same documentation saved. And every one can see the transaction.

  2. Once the transaction is approved, it is encrypted and connected with the previous transaction. After that it is stored on many, many computers around the world. That makes the blockchain secure.

  3. Once the data is on the blockchain, it can´t be removes. So you can see exactly which Ingredient is in your product.

  4. Traditional systems are more prone to humn failure. Once the data is on the blockchain, every one can access it and you don´t have to trust each other.

  5. You don´t need third partys to check your data. The blockchain does this for you, once the data is on the blockchain. So now you can make your trades quicker.

1 Like
#539

Transparency is a benefit of using blockchain because projects can be seen from start to finish with all parties seeing the same thing. Any updates or changes are done by consensus making things more accurate.

There is a benefit of better security, it is encrypted, everything must be agreed on and improved traceability as there is a link from the start where it can be audited to the finish which helps to combat fraud.

There is benefits of reduced cost as it cuts out a middle man and saves time and money of multiple people reading through documents, with permission there is one copy for all which people know can be trusted.

1 Like
#540

Transparency: Every node has an identical copy of the blockchain data. Every participant has read access to the whole blockchain data

Security: Before information gets added to the blockchain, the network must agree on it beeing true and valid. After that approval, it gets encrypted and added and cannot be removed or altered. Also the information is distributed in contrast to a centralized storage.

Improved traceability: when participants of a supply chain / net story information about the exchange or processing of goods on a blockchain, you can get an audit trail of (all) components of a product. This can help to verify the authenticity of a given product or asset, preventing fraud.

Increased efficiency and speed: As everyone has access to the same data on a blockchain, there is no need to merge or consolidate information in different sources. As the information is stored in a digital way, it can be processed (e.g. verified or added to) in automated process. This removes human error and the need of third parties mediating between the business partners. This all means, that transactions can occur faster and more efficient than with traditional, seperate ledgers.

Reduced cost: WIth a single source of data, that every business partner is using, handling transactions gets easier and faster, reducing cost. It also removes the need for middlemen and third parties giving garantees, as the need for trust is overcome with the ability to verify data on the blockchain yourself anytime.

1 Like
#541

Transparency: Everyone can “go back in the past” to check all past transactions

Security: Caused off the consensus, which means each transaction have to become confirmed from different servers.

Improved traceability: By buying a sweeter, the client can f.ex. trace where the material comes from, if the materials are what they suppose to be, if the quality is what it suppose to be, when it will arrive etc.

Increased efficiency and speed: Just by cutting out the third party, will make everything quicker

Reduced cost: For example, by taking away the third party

1 Like