Reading assignment: Benefits of the Blockchain technology

[vrielance]

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

Transparency:
Because all transactions are public, they can be checked by anyone.

Security:
Transaction must be confirmed by the network and are based on the previous transaction. All the transactions are stored on all the computers on the network which makes it virtually impossible to compromise.

Improved traceability:
Transactions (or the movements of products) can be followed every step of the way. This leads to easy tracebility and prevents fraud.

Increased efficiency and speed:
There is only one ledger which does not require any third party. This leads to an extremely high efficiency and speed

Reduced cost:
there are no middle men to increase the cost of a transaction. Anyone can now do the job

[Simo]

1. Transparency: Using a blockchain allows for greater transparency because all transactions are recorded on the blockchain as a distributed ledger which can be views by all participants who have access.

2. Security: Using blockchain is more secure than other record keeping techniques because:
   a. All transactions need to be approved via consensus before it is recorded.
   b. After a transaction is approved, it is encrypted and linked to the previous transaction.
   c. The data is stored across a network of computers instead of a single server. This makes it very difficult for hackers to compromise the data.

3. Improved traceability: Blockchain provides an auditable trail because all transactions are recorded. This improves traceability, verifies authenticity and prevents fraud.

4. Increased efficiency and speed: Blockchain increases efficiency and speed of transactions by eliminating the need of intermediaries and trust. This allows for transactions to be automated. Record keeping is performed using the single digital ledger that is shared amongst all participants. Because everyone has access to the same information, this makes it easier to trust each other.

5. Reduced cost: Blockchain reduces costs in business but reducing the need for third parties and middlemen for guarantee because you don’t need to trust the partner that you transact with. You only need to trust the data on the blockchain, and because the blockchain an a single immutable record, this eliminates the need for so much documentation to make a trade.

[jpc]

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

Transparency:
Everybody permissioned to access the blockchain can see the same information.

Security:
transactions must be agreed apon before they are recorded. Once on the network they are encrypted and then linked to the previous transaction. The data is immutable and every server (node) on the network has a copy of it, therefore making it extremely difficult to hack (change the data).

Improved traceability:
Blockchain shows the audit trail of all assets, from where they came from to every step along their journey.

Increased efficiency and speed:
Blockchain streamlines and automates processes and transactions removing the need for intermediaries. The process of clearing and settlement can be sped up as a result.

Reduced cost:
Savings can be made by removing unnecessary intermediaries (these could include eg accountants and lawyers). Only one immutable copy of the process/transaction need exist that everyone permitted has access to.

[JeeInthailand]

Transparency: Blockchain is more accurate, consistent and transparent, due to the fatc that Blockchian is a type of distributed ledger, all network participants share the same documentation as opposed to individual copies, hat shared version can only be updated through consensus. Which remote trust from the equation that all the Open source transaction are acurrate and have not be modify by a third parti.

Security : There are several ways blockchain is more secure than other record-keeping systems. 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

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.

Increased efficiency and speed: By streamlining and automating these processes with blockchain, transactions can be completed faster and more efficiently. 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.

Reduced cost: With blockchain, you don’t need as many third parties or middlemen to make guarantees because it doesn’t matter if you can trust your trading partner. Instead, you just have to trust the data on the blockchain. ( everyone have permissioned access to a single, immutable version.

[dAnijboned]

1. Transparency:
   Being a distributed ledger among different computers/nodes in a network, a blockchain becomes more transparent than a centralized system. Transparency also comes in the form of how modifications are made to the distributed ledger, which can only be made after consensus is reached by the different nodes in the network.

2. Security:
   Security in a blockchain comes from the way that data is stored (only after consensus is reached, and encrypted in the ledger), but also from the fact that we have a distributed system: where complete data loss is highly improbable.

3. Improved traceability:
   Because in a blockchain we can only append data to the distributed ledger, this can be used to track all the steps done in the supply chain.

4. Increased efficiency and speed:
   If we have a distributed ledger where all parties using it make (and validate) transactions digitally, this greatly reduces (if not suppress at all) most of the bureaucratic tasks associated with the management of ledgers and accounting of different parties.

5. Reduced cost:
   Due to the fact that the blockchain provides trust, we don’t need expensive third party to validate transactions and data. Also, the increase in efficiency leads to a cost reduction.

[mr_e]

Transparency
Blockchain provides great transparency due to the fact that all nodes have a copy of the distributed ledger. Any and all changes within the ledger are recorded, and available to view.

Security
Blockchain provides security through its consensus mechanism. All nodes must agree upon all updates to the ledger, eliminating bad actors from hijacking the ledger.

Trace-ability
Blockchain records every change within the ledger. Every transaction can be tracked to its origin up until the very first line of the ledger, ensuring all activity is traceable.

Efficiency
Because all transactions on the blockchain are recorded, the auditing and transfer of information happens automatically. This eliminates the need of third parties and chains of liability through multiple actors.

Reduced Cost
By reducing the need of multiple parties, blockchain also eliminates the cost of multiple parties. The network itself automatically verifies and audits itself, which would normally require separate and costly processes.

[JBrewer]

• transparency - the ledger is distributed all partiipants have access to it, transactions posted to the ledger can only be updated by network consensus

• security - all transactions require nw consensus, all are encrypted, hard to hack, no single server, all transactions are linked on the chain

• improved traceability - there is a complete audit trail of transactions on the bc

• increased efficiency and speed - no redundant paperwork, not prone to human error, a SINGLE ledger for all transaction participants

• reduced cost - no cost of paying 3rd pariets to “guarantee” transactions

[getlearned]

Transparency: means that everyone shares the same information on the ledger that can only be updated once everyone agrees and has a consensus.

Security: an agreed upon, recorded transaction, encrypted, linked to a previous transaction and is stored across a network of computers.

Improved traceability: verifies authenticity of assets, prevents fraud and creates an audit trail showing where assets came from and every step forward.

Increased efficiency and speed: a streamlined and automated process allowing blockchain to complete transactions faster and more efficiently.

Reduced cost: Data on blockchain for any transaction can be verified by all parties which reduces cost.

[Steph]

When using blockchain in the specfied manner transactions can be verified in the supply chain from start to stops with minimum complexity and paper shuffeling , alowing the chain to advance only after consensus. This ads security and traceability from oem to end user with the benefit of reducing cost and trust issues within a single blockchain.

[Dale]

1 Transparency means that everyone shares the same information on the ledger that can only be updated once everyone agrees and has a consensus.
2. Security is achieve many ways and the most popular is verification of the networks and it cannot be reversed. Blockchain records every change within the ledger. Every transaction can be tracked to its origin up until the very first line of the ledger, ensuring all activity is traceable.
3. Improved traceabiltiy by everything in the supply chain can be tracked because it has an audit trail.
4. Increased efficiency and speed: Because all transactions on the blockchain are recorded, the auditing and transfer of information happens automatically. This eliminates the need of third parties and chains of liability through multiple actors. Single Ledger that everyone has access and follow a specific format which increases speed and efficiency. Cuts out the middle guy or a centralized entity in allot of applications or transactions creating a trustless atmosphere.
5. Reduced Cost: Set of Protocol that improves speed and reduces manipulation and increases transparency which is hugely cost effective. Cuts out the middle guy and centralized corrupt enitities.

[Stefan]

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

Transparency:
The general ledger (data base) is distributed to all network participants e.g. nodes. Throughout the validation process (Consensus) the general ledgers will be updated. Changes to one node would be detected by the other network participants. Meaning, it is not possible to alter a transaction (the more time past, the more difficult it theoretically gets)

Security:
After a transaction is validated, approved and added to the blockchain, the information is stored permanently on the blockchain. In case someone wants to change a transaction, he would also need to change all ‘younger’ blocks minded afterwards. Since all hashes would change based on the one transaction being altered with. Unlikely to be hacked, since all nodes would need to be changed simultaneously

Improved traceability:
Any transaction in the process of trade - from the beginning to the end of the process - wil be stored on the blockchain. All transactions can be followed on the blockcain itself

Increased efficiency and speed:
In contrast to common e.g. banking or supply chain, with blockchain technology the intermediaries are not required in the value creation process anymore. That makes it cheaper, more efficient (less human error) and faster. No audits, books reconciliation etc. are required anymore.

Reduced cost:
In the common process intermediaries are put into the value chain as a toll-gate, in order to approve the validity / correctness to the process up to that specific moment in time. Documentation is checked and double-checked. With a blockchain based e.g. supply chain, all these additional steps are not required - thus saving costs

[sharpest]

Transparency -
The blockchain is a distributed dedger where everyone on the network has the same copy and must agree of any changes.

Security -
There is no single point of failure, as the information is stored on multiple devices across a network rather than one single server. This makes it difficult to hack or make un-authorised alterations.

Improved traceability -
A blockchain enables an audited trail from origin of source to destination with every step checked, between any point from one part of the chain to another, can be confirmed

Increased efficiency and speed -
There is less paperwork, as one single ledger is digitally stored and updated constantly, almost instantly between the whole network

Reduced cost -
There is no “middle-man” or third-party that would need to operate in order to spread the latest version of the blockchain. Instead, all ledgers are updated digitally and acheive concencus.

[Sajuuk06]

1. Transparency is a great benefit of blockchain because it applies itself to every user. In real life, transparency is many times a one-way thing : governements asks business to be transparent, but aren’t themselves transparent. In a blockchain, everyone uses the same rules (=protocol), so no one has an advantage.

2. Security of blockchain (cryptography and computational power) ensure two things : no one can change the information written in the blocks, and many different entities are needed to validate the truth.

3. Blockchain stores every bit of information, from the day one of the creation of the chain. It ensures that all information is stored, and all the history can be readed. It ensures traceability of transactions.

4. Blockchain allows for “fast” settled transactions, compared to classical system (for example SEPA takes 2-3 days to transfer money from one country to another)

5. By not using third-party, blockchain allows to cut down fees, which is always good for the users of the network.

[CryptoBerto]

Transparency: data on blockchain has to be agreed upon by all network participants
on a distributed ledger/ to change the ledger would require collusion of an entire network.

Security: helps prevent fraud and unauthorized activity by the information on the blockchain being stored and encrypted across an entire network with no single point of failure.

Improved Traceability: all origins up the supply chain can be tracked and recorded on blockchain to audit its trail for authenticity and prevent fraudulent activity.

Increased Efficiency and Speed: blockchain can streamline processes quicker by eliminating need for intermediaries and record-keeping with a shared distributed ledger.

Reduced Cost: blockchains trustless environment eliminates the need of multiple third parties and their fees/ reduces the need for human error and multiple documentation reviews through a permissioned access of the network.

[Maikimais]

• Transparency: since blockchain is a distributed ledger the information is shared across multiple nodes or participants, the way to make changes on it is through a consensus mechanism, majority of nodes must agree on it, thus making information more accurate.

• Security: again its distributed form makes it more secure than the normal centralized databases, data cannot get corrupted, and changes on it must be agreed by the comunity.

• Improved traceability: the immutability aspect of this technology makes every transaction recorded not removable, and thus very easy to track and trace back the information it contains (transactions).

• Increased efficiency and speed: Since every participant in the node has the same information, it removes the necessity of sharing and verifying from a central node. Everything is quicker and more accurate.

• Reduced cost: related to the previous point, it reduces the use of unnecessary actions to keep everyone up to date or even the interaction of third parties used to transport or verify the information.

[Rhodi]

1. Transparency: Instead of relying on multiple auditors, public blockchains can rely on the creativity, intelligence and resourcefulness of many auditors.

2. Security: Blockchain utilizes a distributed ledger which fosters enhanced trust and accuracy.

3. Improved traceability: When a business puts processes onto the blockchain they are better able to identify each transaction. This can be applied to complex networks such as food supply chains or tracing the custodianship of antiques.

4. Increased efficiency and speed: By relying on a digital blockchain humans can make mistakes but they can be confident the network won’t.

5. Reduced cost: When humans are paid to verify or audit data, it can be expensive. By relying on the blockchain, businesses can reduce labor and materials costs.

[DanEvils]

1. Transparency:
   Transparency allows all users to the same shared information. The information on a blockchain ledger requires consensus of all users making information accurate. when a paper ledger is use, information is crated buy a individual and distributed to others can be time consuming and a waste of resources.

2. Security:
   once information has been accepted on to blockchain is added to many computers securing the information from attack.

3. Improved traceability
   when information is added to a blockchain it can create a audit trail allowing it to be tracked to it’s original source

4. Increased efficiency and speed:
   when using traditional ledgers are time consuming and subject to error, a digital ledger is shared buy its users saves time and reduces error

5. Reduced cost:
   it allows business to interact with removing the third party moderator even if they don’t trust each other all they have to do it trust the data on blockchain

[Deufrey13]

1. Transparency: decentralized open public database (ledger) using same network for everybody . Everyone uses the same documentation.
2. Security: decentralization of the BC working on the consensus agreement
3. Improved traceability: it prevents from any frauds types. authenticity of Historical data verification process possible
4. Increased efficiency and speed: Automation / streamlining , same documentation
5. Reduced cost: reduction in middlemen and 3rd party companies and no need to reconcile different ledgers…no more heavy paper processes.

[citizensbird16]

Transparency:

Blockchain is a distributed public ledger which provides all network participants with shared, identical documentation of transactions.

Security:

Corruption of critical data through fraud and unauthorized activity is prevented by necessitating that consensus be reached on the global network before a transaction is recorded. An attempt to change any single transaction would require alteration of all subsequent records on the network.

Improved traceability:

Blockchain provides a common historical record of verified transaction, allowing users to trace the journey of an item back to its origin.

Increased efficiency and speed:

Blockchain technology provides an automated, streamlined public ledger of transactions which eliminates human error and the need for an intermediary to reconcile multiple ledgers.

Reduced cost:

A trustless system of transaction reduces third party audit and oversight by offering a single, immutable record of trade.

[OrchestRise]

tranparency:
With the open blockchain it is possible to create tranparency because every participant in the network will be able to consult the same content in the distributed ledger. Everyone trusts the content of the ledger because the collectively verified informationt can not be altered by individual participants of the network.

Security;
Because the distributed ledger system creates an immutable database, the security of the information on the ledger is garanteed. The information on the ledger is not easily deleted because the distibuted mechanism provides immutability.

Improved traceability:
The data created on a distributed ledger can be consulted by everyone. There is no need for trusting someone else his database. There is only one immutable ledger. Every participant creates information on the ledger fully transparent and open consultable by everyone. Every node will supply you the same information. If traceability must be created in a network of centralised databases, trust in the protocol would be difficult to acheeve.

increesed efficiency and speed:
There is no need for connections/translations between different databases. Every system uses the same database with the same open technology. The info is consultable fast and transparant by every participant. This leads to less people and time needed for communication across different databases. A lot of people in a lot of sectors where needed to contol the procedures in a supply chain. All these actions can now be done by a trusted protocol with less time spent.

reduced cost:

• individuals, businesses, governements, institutions can reduce costs on:

-lawyers, notaries, estate agents, food safety agencies, hardware for databases, etc…