Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#542

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

Transparency: The block chain will always be transparent as every transaction is collectively confirmed and forever stored for anyone to access.

Security: There is no central authority the block chain is ran by millions of devices around the world therefore there is no central point making a hack much less likely.

Improved traceability: Improved traceability means all items can be traced from beginning to end on the supply chain

Increased efficiency and speed: Block chain technology allows the removal of third parties making Transactions faster.

Reduced cost: As there is no need for third parties transactions are cheaper as well as faster

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#543

Transparency.
A blockchain is a distributed ledger which means everyone can see all information as it is public. Any changes to the information has to be agreed by all network participants or by consensus which makes data more accurate and transparent.

Secuity.
All information that is put on blocks is linked and securely encrypted. Because the network transactios are constantly verified and confirmed it makes it difficult for blockcain to be hacked or changed.

Improved tracability.
Blockchain provides an auditable trail of verifiable and trustless data so that users can efficiently track problems in a supply chain for example.

Increased efficiency and speed
Human error and third parties can be eliminated since it is a shared and trustless digital database. Payments become faster and more efficient since no settlement and clearing layer is required. Supply chains become more efficient as errors/delays can be spotted quickly and middle men can be eliminated.

Reduced Cost.
Third party costs can be eliminated (accountants, banks). Employer costs can be reduced as much paperwork can be eliminated.

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#544

Transparency: Blockchain is a ledger that is shared and accessible by all network participants, they all have the same information, which can only be updated by consensus, everyone agreeing on it. To make any changes it would require changing every record back to very beginning and end of the chain linked to that record, which would be a monumental task and not likely to be approved by the network. This and the fact that it´s available to all participant with access makes all data on a blockchain transparent and reliable.
Security: because of the way that all transactions are approved ( by consensus by the whole network) and then recorded and encrypted in the ledger, it makes it practically impossible to hack, thus offering the highest level of security.
Improved traceabilty: In a supply chain, all movements are recorded on the blockchain, making it very simple to trace back to whatever point in this chain is needed,
Increased efficency and speed: All steps, payments, movements in a business transaction are recorded on the blockchain, so there´s no need to double check, reconcile or audit them, as all parties involved have access to the same data. Blockchain technology makes it smoother, faster and simpler
Reduced cost: As explained in the point above, reducing the manpower involved in ensuring the veracity of the records in any transaction and recording them, producing tons of documentation and creating endless burocratic processes, significantly reduces the operating costs of any business.

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#545

1.Transparency- Everyone will have the same record without discrepancies.
2. Security- Multiple machines will be verifying the transactions making it more difficult to hack.
3. The transactions on the blockchain have a time & date stamp and can be traced from the origins of the transactions.
4. Instead of relying on paper & humans to record the transactions, they r done by machines which increases efficiency & speed.
5. Less resources will be needed to complete transactions and the recording of transactions.

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#546

T: Only valid data is accepted through consensus. Inaccuracies are brushed off.
S: Finality and trustlessness ( Ivan’s made this word up) helps to prevent fraud and unauthorized activity.
IT: Each transaction is recorded on the blockchain data base allowing for provenance.
IES: “Speed” is debatable still, but not having to go through a third party makes it inherently faster and easily available for all those who have a connection.
RC: Decentralization. Also, no lawyers involved.

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#547

Transparency- The blockchain is public and all transactions are visible. The built in consensus mechanism leaves no need to worry if the information you see is false or has been altered. It removes the need to blindly trust.

Security- The ledger is maintained on multiple computers that require consensus before anything can be added to it. If one of the nodes on the network became compromised it still would not be able to affect the ledger as the other nodes on the network would reject any changes

Improved Traceability: Everything in the supply chain can be tracked and verified

Increased efficiency and speed: One ledger that maintains all records is more efficient than multiple ledgers that would need to be checked for accuracy and may require interaction with multiple layers of intermediaries before a transaction can be completed.

Reduced Cost: No need for middle men

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#548

Transparency: All transactions are public and can’t be changed or removed.

Security: Information is stored across a network of computers instead of a single computer making it very difficult to hack.

Improved traceability: Everything can be traced back to where it came from.

Increased efficiency and speed: Blockchain makes it easier to trust each other making transactions quicker.

Reduced cost: You don’t need most third parties or middlemen with blockchain.

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#549

  • Transparency:
    Blockchain is a distributed ledger with free access to ALL to users of the network. The blockchain ledger can only be updated by consensus of all nodes within the network. i.e. all nodes within the network must validate the new transaction. Once a new transaction is confirmed this means the transaction was appended to the blockchain and can not be changed. Effectively the new transaction is recorded in stone and can not be changed because each block in the chain is hashed (linked) to the previous block.

  • Improved traceability:
    The blockchain ledger provides an audit trail documenting how the asset was created and used allowing independent validation of the asset’s authenticity.

  • Security:
    The blockchain ledger is recorded and tracked by all network nodes instead of a single server increasing the difficulty for a hacker to change the blockchain data records because each block added to the blockchain (after confirmation) is encrypted to the previous block, and only the longest chain is maintained further increasing the hacker’s difficulty to change a previous block added to the blockchain.

  • Increased efficiency and speed:
    Blockchain transactions are tracked by network nodes preventing the need to update a single ledger streamlining process and making the process of record keeping more efficient. With all users having access to read the ledger, which is unbreakable, allows all users to value and trust the network preventing the need for 3rd parties to track and record individual transactions.

  • Reduced cost:
    Through the creation of trust the need for intermediaries and middlemen are eliminated reducing the need for expensive documentation since all users have access to a single blockchain ledger which can not be changed or manipulated.

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#550

Transparency: You can see al the historical data on the blockchain.

Security: Trustless system. You need to reach consensus

Improved traceability: Everything is stored on the blockchain. The same information on every node gives its autenticity for example on a supplychain where the goods really originated from.

Increased efficiency and speed: By taking out the paperwork and putting all the information on the blockchain things get done more efficient. Less room for human error and you have one ledger for all instead of going true several ledgers. Therefore saving on time and bureaucracy.

Reduced cost: the benefit of this one is taking out the middleman or whatever you use to arrange trust. So you don’t have the cost of that anymore and can do business directly. And so on reduced cost for everyone.

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#551

Transparency: Having a digital ledger that is shared by all parties means that no one can edit the ledger without having consensus of the network.

Security: Having transactions processed and stored across a network where the transactions are encrypted and linked to the previous transaction in the chain means that you do not have a single point of information storage which would be more susceptible to attack.

Improved traceability: If all transactions in a supply chain for example were recorded on the blockchain you can easily see the full history of a products journey and it is open to anyone to see.

Increased efficiency and speed: Storing confirmed information on the blockchain in a single digital ledger, that can be easily accessed and reviewed, means that efficiencies can be gained as opposed to the reconciliation of multiple paper heavy ledger systems.

Reduced cost: The ease of transacting due to not having to have third parties or having to trust the party you are dealing with means that transactions can happen quicker and more efficiently.

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#552
  1. Transparency: A recorded history that can’t be altered

Security: Via agreement/consensus before transaction is recorded, also encrypted network and not a single server.

Improved traceability: The supply chain has an audit trail.

Increased efficiency and speed: By removing the middle man/3rd part, transaction are cheaper and quicker, less error-prone.

Reduced cost: No chargebacks nor middle man, reduce overall costs.

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#553

**Benefits of the Blockchain Technology :-

Since the inception of Blockchain technology in 2008 by Satoshi Nakamoto, blockchain has come a long way. Industry sectors’ innovators and government leaderships are now exploring, learning/understanding and realising the benefits of the Blockchain technologies, that will disrupt, improve and transform the traditional business models.

The Five Pillars of the Blockchain.

The blockchain technology can achieve significant benefits to many industries from financial services, supply chains, healthcare, governments and many more industries, this is due to the Five Essential Pillars that makes Blockchain so unique today.

1/ Transparency:
Blockchain technology allows many industry sectors to be open and transparent in all their transactions/exchanges on the blockchain network by way of permissioned or permissionless access. As blockchain is a decentralised distributed ledger, all participants on the network share the same copy of data which is permanent and immutable. In comparison to the traditional system with heavy documented process which can be manipulated and or lost. However on the blockchain ecosystem (network), data or transactions are Accurate, Consistent, Transparent and Final.

2/ Security:
In all industries Security and handling of data is crucial. Blockchain Technology can safe guard critical data and transactions on the blockchain network and help to prevent fraud, points of failure, unauthorised activity and hacks. On the blockchain network once a transaction is agreed upon, the transacted data is then recorded and cryptographically encrypted, stored and shared on the blockchain network, without a single point of failure and impossible to hack as it is immutable and distributed on the network.

3/ Improved Traceability:
Industry sectors with complex supply chains makes Tracking and Tracing of products to its origin a difficult and inaccurate process, and a process based on trust in the parties involved within the supply chain.
However when goods traded on the Blockchain ecosystem, companies will have an audit trail verifying the origins and authenticity of the goods and details from production to delivery (start to finish). Due to the blockchain features the Consensus mechanism based on Provenance and transparency, companies can track and trace their goods historical transactions/data, to help and verify the authenticity and origins of the goods and also prevent fraud and manipulation. The blockchain network provides a trustless system as it does not matter if you know or trust your counterparts in the supply chains.

4/ Increased Efficiency and Speed:
The traditional way of trading products or services can be a time consuming process with lots of friction and points of failure and essentially trusting third parties involved in the supply chain, which also slows down the process and creates inefficiencies.

However with the Blockchain ecosystem which operates 24/7, 365 days in year, can allow companies to streamline and automate their existing system which is slow and limited to human processes. On the blockchain network, all transactions or data are completed Faster and more Efficiently as well as being permanent and immutable.
Since the blockchain is an open and a distributed ledger, all records on the block is shared and stored by all the ecosystem participants globally, therefore there will be no need to independently reconcile multiple ledgers within the supply chain. All transactions/data on the blockchain network becomes easier to trust each other (P2P) without the need for intermediaries, thus transactions, clearing and settlements processes are completed much faster and efficiently.

5/ Reduced Cost:
One of the attractive feature of blockchain for enterprises is the ability to significantly reduce costs on all levels without compromising revenue. The frictionless and efficient system of the blockchain ecosystem, creates a trustless system that does not depend or trust third parties, middlemen or any entity, because everyone on the blockchain network will have permissioned access to a single immutable copy of transactions on the blockchain.

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#554
  1. Transparency: Public ledger, everyone on the network has the same copy of transaction history. Only possible to update the blockchain through consensus which means that everyone on the network needs to agree on the new version. Everyone can also see all the information.
  2. Security: Much safer than a server all the information is shared across the network instead of on one server. Because of consensus its not possible to add information without everyone agreeing on it, this means unauthorized activity is prevented.
  3. Improved traceability: Blockchain makes it easier to trace an item back to its origin in a supply chain. All transactions are recorded and stored on the blockchain.
  4. Increased efficiency and speed: Blockchain automates traditional processes that takes time and since everyone shares the same information it’s easier to trust with no third party involved.
  5. Reduced cost: With no need of as many third parties the cost gets reduced.
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#555

Transparency: As it is an open ledger and the different nodes in the network need to come to an agreement for the transaction to be included, by tracking and verifying all data, that provides then consistency and transparency to the whole Network and everyone involved.

Security: There are no intermediaries and the Trust is based on mathematical algorithms in the protocol. And with that, the information is stored across a network of computers instead of on a single server, making it very difficult for hackers to compromise the transaction data.

Improved traceability: Because when you are dealing with the supply chain, you can trace every step of the process and that gives transparency and authenticity to products and services in the whole chain. Ex: Vegans being able to trace the authenticity of a product from its source.

Increased efficiency and speed: Because everything is performed in on single digital ledger, so for example, the accounting layer is together with the transactional layer, therefore not depending on a third party to be trusted and audited. Therefore, everyone has access to the same information and also, the clearing happens much quicker.

Reduced cost: In traditional operations you have to rely on middleman and third parties to verify and validate operations, increasing the costs. With blockchain the trust is in the Network, therefore eliminating costs with intermediaries and the middleman.

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#556

  • Transparency
    With blockchain being a distributed ledger, everyone shares the same copy of the whole chain of transation where they can see all of the transaction made. And any update to the shared document/blockchain can only be made by consensus on the network and not a single entity.

  • Security:
    Adding transitions to the blockchain must be agreed upon the notes that it is a valid before it can be added. After being confirmed, it will be linked to the last transaction on the blockchain using encryption. And then stored on all of the copies on each of the systems nodes. This makes the blockchain very hard to be compromised by hackers since they will have to hacker the majority of the nodes/computers simultaneously instead of a single source. This makes blockchain a more secure storage of onformation than any centralized database counterpart.

  • Increased efficiency and speed:
    With blockchain, all of the usual paper work that requires people (making it prone to imput error and post-correction) to process can be automated to that smart contras.

  • Reduced cost:
    With blockchain, companies won’t need so many third parties nor middle man guaranties, the only need to trust the verifiable data on the block-chain. Also instead of needing to verify each document used during audit, all of the information needed will be on the single, distributed source, the blockchain.

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#557

1.Transparency- The ability that all participants share the same documentation through the network and that can only be updated through Concensus which means everyone must agree on it

2.Security- The information is stored across a network of computers around the world instead of a single server, this makes it very difficult for hackers to steal data.

  1. Improved Traceability- The ability to trace an specific item back to its origin.

  2. Increased Efficiency and Speed- The ability to complete the transactions faster and more efficiently by using a single digital ledger that is share among all participants.

  3. Reduced Cost- The ability to save money cost using blockchain technology by trusting the data only without the need of third parties or middlemen.

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#558

Transparency: This causes transactions to be more accurate, as no fraud would want to be caught.

Security: Encryption and hard to attack due to the network.

Improved Traceability: Great for tracing things through a supply chain, across industries and companies instead of having different databases with partial data for each step of the supply chain.

Increased Efficiency and Speed: No paper, third party mediation, human error, and one single ledger rather than multiple.

Reduced Cost: Removes the middlemen and the costs associated with them.

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#559
  1. Transparency: Greater transparency is provided through the access to the ledger by anyone that operates a node on the network and also by the need for consensus on all nodes for an update to occur. In this regard you can be assured that if you have an up to date copy of the ledger than you have an accurate and trustworthy account of all transactions completed on the network.
  2. Security: By not allowing information to updated unless all nodes on the network have come to consensus the blockchains security is of the highest level as any person that wishes to update or amend the documentation would have to pass it through the network and wouldn’t have the current ease of manipulation aloud by storing sensitive data in a single server or location.
  3. Improved traceability: The blockchain can allow a high level of product tracking and data on the origin of the product. The exchange of physical goods can be recorded on the blockchain and therefore allows the previously mentioned level of security and trustworthiness of the blockchain to be applied to the tracking of product.
  4. Increased efficiency and speed: By allowing all parties access to the ledger and providing means for peer to peer transaction it removes the bureaucracy and middlemen that generally cause a bottleneck for transaction. The peer to peer nature of the blockchain allows for greater speed and the network based on protocols allows for greater accuracy and removes the likelihood of human error.
  5. Reduced cost: Cost is reduced by reducing middlemen and strreamlining processes, allowing faster turnovers and reduced costs. Blockchain can provide high quality tools for a lower cost.
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#560

Transparency:
An open system means all code and documentation are public and shared by all. Anyone can inspect the same details as everyone else.

Security:
All participants in the network must agree on any transaction that happens and record it permanently forever on thousands of machines/databases.

Traceability:
Any event can be traced back to what happened, when, and everything leading up to it.

Efficiency:
Once a transaction is agreed upon, it is recorded forever. No person or entity or intermediary needs to verify it or shuffle it around to different departments, etc. Transactions can be verified by anyone from a single shared ledger.

Cost:
Having no intermediaries means less agents with their hands in the pot. The only real cost is small a fee to incentivize the participants in the network to maintain the security of it.

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#561

Transparency: Opaqueness is the enemy of provenance. A distributed ledger is visible by all the parties involved and is open to the public. Any attempt to manipulate the ledger is unlikely, as the cost far outweighs the benefits.

Security: The nature of a decentralized network incentivized by mining is more trustworthy than any third party institution, and is essentially unhackable.

Improved traceability: Allows for more diverse trading between strangers without the need for a trusted intermediary, as well as real-time auditing.

Increased efficiency and speed: The blockchain has high availability, and allows for almost-instant transactions across borders. The reduced need for a third party is a net benefit for merchants and consumers alike.

Reduced cost: The current cost of sending money is exorbitant (ie, Western Union), Bitcoin’s transaction fees are significantly less because we verify.

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