Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#41

Transparency: a public ledger blockchain such as Bitcoin (which doesn’t have private transactions and wallets) is transparent because transactions are public, anyone can verify transactions, wallet addresses’ funds are public

Security: A decentralized ledger with economic incentive for miners with adaptive difficulty ensures that there is always incentive for some people to be part of the network and that it can’t be falsified thanks to decentralized network consensus which ensures the ledger’s immutability

Improved traceability: all transactions are on an immutable, decentralized ledger that is public. Every single transaction can be checked and given a coin in an address all previous transactions that led to the current state can be traced

Increased efficiency and speed: it’s one system, one standard for the whole world, and everyone can be part of it and verify transactions and the ledger, so it’s faster and more efficient

Reduced cost: the only cost are the fees for transactions, paid to miners as incentive to keep the network up, and nothing else.

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#42

Transparency: greater transparency, you can’t change what’s done on the blockchain.
Security: as above it so secure that you can’t really fake the information.
Improved traceability: you can see the history of an asset or currency on the blockchain.
Increased efficiency and speed: all networks participants use same ledger meaning they all have same information what makes it easier to trust each other on the network.
Reduced cost: blockchain eliminates all the third parties and middlemen of banks etc…

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#43
  1. Transparency: transactions on a distributed ledger make it visible in real-time to everyone on the network. Everyone looking at the same as opposed to having individual copies.
  2. Security: heightened because transactions must be agreed upon before they are recorded. Once approved, it will be encrypted and then added to the previous block transaction; stored across a wide network of computers rather than in a centralized silo.
  3. Improved traceability: allows for a real-time audit trail that tracks back to the origin. Has all historical transaction data back to its creation.
  4. Increased efficiency and speed: streamlining and automating processes cutting out the need for third parties (aka middlemen). Minimizes error in data verification, minimizes clutter and the need for third party involvement. Creates efficiency and allows for clearing and settlement to happen much quicker.
  5. Reduced cost: eliminate need for third parties and middlemen. Eliminate the need to trust a trading partner. Minimize documentation to complete trade because everyone involved will have permissioned access to a single, immutable ledger.
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#44

Transparency is achieved by all network participants (nodes) having to reach consensus on whether to verify each transaction, effectively deciding on what is true before it is recorded in a single distributed ledger. All users have access to the same copy of the transaction history, meaning there is always data consistency. The risk of discrepancies arising is avoided because separate records are not kept.

Security is achieved through the decentralised nature of the network and its protocol of mathematical principles. Decentralisation means that the need for trust in a central authority is removed, and the fact that data is held on a distributed ledger and not on a single server, means that there is never a single point of weakness and less risk from malicious attacks such as hacking. The fact that the network is based on pre-established, proven-to-work mathematical principles means that it is less at risk from human error, manipulation, fraud or corruption.

A distributed ledger improves traceability by storing a single, accurate and immutable copy of the transaction history. This provides a clear, consistent and reliable audit trail of financial transactions or supply-chain data, which helps to prevent fraud, misinformation and unauthorised activity by enabling various types of product authentication to be performed with accuracy e.g. proof of origin, proof of ingredients, ownership history.

Increased efficiency, increased speed, and reduced cost are all achieved with blockchain because, potentially, no external intermediaries (middlemen) are required to perform administrative functions such as verification, reconciliation, accounting and auditing of transactions. This makes blockchain networks much more streamlined. Being decentralised and based on mathematical principles means that costs (both financially and in terms of speed and efficiency) associated with human error, internal bureaucracy and corporate politics are also avoided.

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#45
  1. Transparency:

As the ledger is public a blockchain is very transparent which adds to the trustles environment a blockchain provides.

  1. Security:

A blockchain removes a central point of failure making the network much more secure.

  1. Improved traceability:

This makes a blockchain much more efficient than regular databases that don’t communicate well with each other. Also it adds to the trustles environment the blockchain provides.

  1. Increased efficiency and speed:

As you cut out middlemen processes become much more simple and can be resolved a lot quicker.

  1. Reduced cost:

Middlemen cost a lot of money! No middlemen means a giant cost reduction in your process.

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#46

Transparency:

  • Blockchain is trustless and brings the possibility of anyone to have access to its network and see how the data is being managed witch makes it transparent and decentralized.

Security:

  • Blockchain is compound by nodes(computers) which keeps the network working, every node on the nework has information of the entire ledger this keeps the network safe and secure again crackers attacks seeking data or in case of an energy shutdown.
    Nodes are also responsible to verify and validate any input of data on the network trough consensus, which means they have to agree with.

Improved traceability:

  • Any move that the data makes on blockchain can be tracked and traced because every transaction in the network have information with time date, status, etc.

Increased efficiency and speed:

  • There are more than one node working to keep the networking on, its highly available working 24/7, the access to the network can be made in the whole world. The ledger is unique and everyone has access to it. The decentralization behind blockchain makes it efficient and fast.

Reduced Cost:

  • Blockchain is trustless, built trough math protocols without needed of third parties or people to verify and validates the data management on the network.
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#47
  1. Blockchain is more transparent than central data base because any transaction or information before recorded in to the ledger all the nodes should agree on it. After a transaction/information is agreed up on it will be time stamped,encrypted and linked to the subsequent block and will be available for all participants of the network to see and verify.
  2. After a data is agreed up on and added to the block then it will be distributed among all computers in the network instead of keeping it with centrally controlled server. In doing so blockchain makes it harder for the hackers to hack in to the system.
  3. If businesses agree to use blockchain through out their business recording keeping it’s very easy trace a product to it’s origin because as I said above blocks are added only when it’s agreed up on or verified by all participants.
  4. Blockchain increases efficiency by doing away with paper- heavy traditional way of keeping records. When we keep records in a traditional way there is a clutter of paper works which in turn affects the environment in negative way and it is prone to human errors. And it won’t be efficient. When there is disagreement on issue there comes a need for mediation.
    But if we stream and automate our record keeping on blockchain and make it available for all participants there won’t be a need for third party mediaton and there by achieve fast executions of business.
  5. If you don’t have to trust and hire a third party for verification and if you go paperless for sure you minimize your cost.
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#48
  1. Transparency: Transparency is important in any situation which requires trust. The blockchain requires trust which is why the blockchain is transparent. The ledger is distributed to the entire network with the exact same copy throughout the network. To change a transaction on the blockchain ledger, it would require everyone on the network to make the change for every record. With transparency, only through consensus in which everyone must agree can anything be changed. No one person can decide to change a transaction.
  2. Security: Since all transactions must be agreed on by the blockchain, once the transaction has been approved, that transaction is encrypted and linked to a previous transaction. Since the network is not operated by one single server, it would be extremely difficult to compromise or change one transaction because it would not be confirmed with other networks because those transactions are already etched in stone.
  3. Improved traceability: One great aspect about the blockchain is that transactions can be traced. This is very beneficial to supply chains when wanting to determine whether all prior actions have taken place before delivering a final product. All transactions are etched in history for them to be verified.
  4. Increased efficiency and speed: Efficiency and speed are necessary when trying to get goods and services to market. The blockchain allows for transactions to tracked electronically through a digital ledger that everyone has access to review. Automation in the blockchain reduces time and human error since paper transactions are not a part of the digital blockchain.
  5. Reduced cost: Blockchain reduces the need for a middleman to trust. The blockchain is permissionless and trustless because it is based on mathematics and physics. Trust is not a necessary part of the equation. The blockchain will eliminate the need for accountants because the blockchain is the digital accountant.
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#49

Transparency: The blockchain allows for transparency (depending on the solution) where if you have a public ledger, the transactions themselves are not encrypted and anybody would be able to verify who sent what to who.

Security: Blockchain technology distributes information across a network of computers via a single immutable ledger and for any changes to be made to the data, there must be consensus by most of the participants in the network (miners, validators, nodes, etc.). Truthful consensus is further incentivized or disincentivized monetarily.

Improved traceability: Block chain allows for verifiable proof that transactions did occur, where they occured, and what preceded and proceeded the transaction without trusting any third parties.

Increased efficiency and speed: When you only have one distributed ledger to deal with, it allows business administration to be far more efficient because there would not be a need to wait for multiple third parties to verify data.

Reduced cost: Blockchain removes the need for third party validators, liquidators, intermediaries, etc. and therefore reduces the fees that would be normally paid to these third parties.

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#50

Transparency:
Information in the blockchain is public and nodes have a shared ledger.

Security:
No single point of failure, due to consensus amongst the nodes.

Improved traceability:
The blockchain is immutable, so the supply chain of a product can be scrutinised.

Increased efficiency and speed:
Removal of 3rd parties and use of a shared ledger.

Reduced cost:
Making use of existing nodes, reduces investment costs.

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#51

Transparency - all parties have access to the true ledger and making unauthorized changes would require all parties to be “in” on the changes.

Enhanced security - all transactions require consensus to be recorded and the data is encrypted.

Traceability - the blockchain allows for Clear tracking through the supply chain. Parties can use the transaction data to verify claim of the company.

Efficiency and speed - automated processes that results in direct transactions reduce manual translation of paper focused transactions.

Costs - with access to the true ledger info, companies do not have to rely on trust or third party verification. This reduces the need for additional parties to be involved.

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#52

I disagree with that - all transaction values would be treated the same in that all would require complete consensus. Who would be the one to make the decision as to which values require some level of ‘less consensus’?

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#53

Nodes can’t update or change anything on the blockchain. New transactions can occur, sure, but nothing can be changed once consensus is reached and a transaction is recorded on the blockchain.

Nothing can be changed once it’s on the blockchain.

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#54

Five benefits of using a blockchain include:

transparency - all transactions recorded on a blockchain are visible for anyone to see. Increased transparency improves our ability to audit the data, like proving when transfers actually occurred. Having the ledger open and approved through a distributed consensus, meaning everyone agrees on each transaction posted to the blockchain, means we don’t need trust in people nor third parties and we can rely on the data to be accurate and unchangeable.

security - there can be no double-spending nor changes to the recorded history. Blockchain data is agreed upon via a distributed consensus which means the recorded history is accurate, but also the distribution of exact copies of the ledger secures the data from accidental deletion and tampering.

traceability - anything that needs to be tracked can benefit from blockchain. The financial industry, all types of businesses that rely on supply chains, and other industries that rely on tracking or time-stamping or preservation of the integrity of data, can record transactions permanently with blockchain. This recording of history can be queried to prove provenance.

efficiency and speed - faster transactions with no middleman needed. Even the slowest blockchain transaction beats the number of days it would take using current systems for certain transfers. With blockchain we don’t rely on several layers of banks or company-based silos of information, but rather an open distributed ledger. Being available 24/7/365 is a true advantage of blockchain for our global community.

cost - there are no middlemen who require a slice of the pie so costs will be reduced when moving from the traditional means of recording transactions to blockchain tech. A single ledger is kept in a distributed fashion so no auditing of different sets of books is needed. Breaking down silos of information will reduce redundancy which reduces costs.

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#55

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

  1. Transparency: verification on the blockchain makes it possible for information to opened up instead of hidden away.
  2. Security: an up to date version of the ledger is available in all network nodes, meaning a prone to infinite redubdancy. Moreover, adding information on the blockchain requires validation and consensus, thus corrupted/invalid/false information cannot be put in
  3. Improved traceability: for cryptocurrencies, it means ultimately funds won’t be created out of thin air, and that people can identify themselves by signing transactions. I don’t personally agree blockchain can bring any improvement to supply chain traceability since in this case adding information to the blockchain means trusting the one in charge of typing the information in, so it can be as corrupt as in any database.
  4. Increased efficiency and speed: less intermediaries are necessary and data readiness
  5. Reduced cost: also because less intermediaries are necessary
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#56

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

Transparency:
It enables provenance i.e. everyone can trace transactions all the way back to the first block. Further no middlemen are needed.
Security:

Improved traceability:
It enhances the real time auditing process for example.

Increased efficiency and speed:
As no intermediaries are involved nor stacks of paperwork with direct peer to peer contact.

Reduced cost:
No auditing firm, no banking costs, more efficient and transparent supply chain etc.

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#57

1.Transparency is a great benefit of using Blockchain because All participants on the Blockchain network share the same document. It can only be updated when everyone who have access agree on a transaction.

  1. Security is also another great benefit because no one can enter a transaction without it been signed off by all other participants. It is then encrypted and linked to the previous transaction. It’s difficult for hacker to tamper with transaction data because all translations are store on multiple computers on the network.

  2. It is easier to track the origin of a product in a complex supply chain when recorded on a block-chain. This Improved trace-ability, verify the authenticity of assets and prevent fraud.

  3. By streamlining and automating the trading processes with block-chain, transactions can be completed faster and more efficiently because there are no middle man and everyone on the network have access to the same information on the ledger.

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#58
  1. before the information gets added on to the blockchain it has to be agreed by all parts. it’s open for everyone to see. it’s decentralized
    2.You do’t have to trust anybody only the math and protocol. The data is stored on a network of individual computers all of which have exactly the same data, so to change data u have to change previous data witch needs a lot off energy
    3.with the help of blockchain u can trace every action on ur product and make sure that everything is correct.
    4 no middleman is needed witch makes everyting more smother and economically cheaper.
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#59

1

Because all network participants share the same documentation everybody always has the most recent records. These have been made only by full consensus, meaning that everybody has previously agreed on it- Therefore changing a single transaction record would require everybody to change and agree the previous documentation which prevents changes altogether.

2

1 Transactions must be agreed upon before they are recorded. They are encrypted and linked to the previous transaction.
2 Information is stored across a network of computers instead of on a single server which makes it more secure

3

All transactions are recorded on the blockchain and therefore always leave a trail. This data helps to prevent fraud and verify authenticity.

4
Transaction on the blockchain is faster (everybody has access to the same information and therefore less discussions) and more efficient (no 3rd party interference)

5
No humans interfere, only need to trust the data on the blockchain. Less work as reviewing transactions that are not changed does not make sense.

6 No FBI BOOK! For security reasons

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#60

Transparency:
Information available to all, any attempt to make changes are visible and traceable
Security:
Changes can’t be made by an individual it needs concensus from all party’s
Improved traceability:
We know what is true and what has happened to an asset it has provenance
Increased efficiency and speed:
A third party is not required saving time and money you only have 1 ledger & not many that need updating
Reduced cost:
Less to zero paperwork and no third party guarantees are necessary all you need is on the blockchain

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