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Transparency - there is no hiding from the ledger. The ledger confirms transactions through consensus, and once confirmed transactions are ‘written in stone.’ Altering a transaction would require collusion of the entire network.
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Security - all transactions are confirmed with consensus, and is stored on the ledger forever. Because the ledger exists on a network of computers, it is near impossible for hackers or the dishonest to corrupt the data.
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Traceability - the blockchain provides an immutable ledger and audit trail. For example, for supply chain businesses the exchange of goods can be verified on the blockchain.
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Speed and efficiency - the blockchain allows businesses to transact expeditiously by using a single ledger.
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Costs - because the blockchain does not require middle men or third parties, it can markedly decrease costs as well as reduce human error.
Transparency:
All documents are shared in one ledger. It connects and update in one version where everyone is allow to look into it
Security:
Transactions must be agreed upon before they are recorded. After a transaction is approved, it is encrypted and linked to the previous transaction.
Improved traceability:
It is easier and traceable to search for all transaction . It gives accurate historical and all audit transaction to the block chain
Increased efficiency and speed:
Since all network and ledger is prepared so we do not need any hassle.
Reduced cost:
Reducing cost for a company is very important. We do not need any man power to additional add on our costing. We only do trading to strangers .
Blockhcain data is transparent and consistent, since it’s public and since changes require consensus.
Transactions are secure, since they need to be agreed on before they are recorded, and all of them are cryptocraphically linked to each previous transactions.
Public blockchains leave an open and immutable audit trail.
Clearing and settling is faster, since there is no need for multiple ledgers.
There is less documentation and fewer middlemen required when you are dealing with blockchains.
Explain with your own words, why these are the benefits of using a blockchain.
Transparency: Blockchain is a decentralised ledger, all people on the network share the same ledger.
Security: The transactions must be agreed to by the network and once agreed, the transaction is encrypted and added to the block. This block is then linked to the previous block.
Improved traceability: Each block has an audit trail and where each asset on the blockchain ends up.
Increased efficiency and speed: Increased speed and efficiency are achieved by record keeping on a single ledger which is share on the network to be verified.
Reduced cost: The reduce cost is achieved by cutting out the middle man or third part because they don’t need to guarantee the transaction. All you need to trust is the data.
Transparency: In blockchain a consensus must be reached on the network, meaning there must be agreement across the entire network for finalization of transactions to take place. The network is also transparent because it is open for everyone to view at any time. If any changes needed to take place on the public ledger, the entire network would have to agree that those changes should take place. This leads to enhanced levels of accuracy and consistency across the database.
Security: Blockchain is an encrypted system, which in and of itself leads to high levels of security. This is not the only security feature however, since there also must be consensus across the network for transactions to initially be locked into their place on the database. Decentralization also makes it so that there is no central point that outsiders can target to attack the network, since the public ledger is found in its totality across all of the computers supporting the network around the globe.
Improved Traceability: Because the blockchain is immutable and open to the public, anyone can verify (at any time) where their products have been and what happened to them when they were in that place. You can look at the last place that it was in, or even where its origin was. Everything is embedded into the blockchain, which allows for high quality and accurate auditing when necessary.
Increased Efficiency and Speed: Because every ledger is the same you can look at any of them instead of having to draw information from multiple places. Due to the availability of the public ledger to anyone at any time, people can feel more comfortable transacting with people they do not know (and thus have no established trust with). The blockchain also cuts out any middlemen, which you would have to also trust with the transaction.
Reduced Cost: Due to the cutting out of any middlemen who may take a cut of your transaction, costs are organically reduced. You also will not have to hire anyone to look through documentation, or look through the documentation yourself (costing you your time).
Transparency:
It is accesible to everyone who has permisioned acces, and they would all have the same documentations and can only be updated through consensus, therefore every participant must agree on it.
Security:
Besides the security that’s achieved with consensus, every transaction is encrypted and linked to the previous one, creating a chain nearly impossible to break and on top of that we have that all the data is spread around the world in many different computers.
Improved traceability:
Helps the user understand every single step and history in the produtcion chain of whichever item it is that is been dealt
Increased efficiency and speed:
By getting rid of the variable of human error out of way it makes a significant improvement on efficiency and speed. Since all the processes would be automated and digitally done, it can only be faster and more efficient than dealing with a third party.
Reduced cost:
No longer users will have the need for trust amongst each other, all they need is to agree on trusting the data on the blockchain hence no more extra costs on an intermediary.
- all network participants share the same data/transactions as opposed to individual copies. The ledger can be updated only through consensus of all network participants.
- No single point of failure and transactions must be agreed upon before they are recorded; after they approved, they are encrypted and linked to the previous transaction.
- All transactions in the blockchain are traceable. Transaction data can help to verify the authenticity of assets and prevent fraud.
4.There is no reconciliation needed among different ledgers, the blockchain is one ledger/database that increases efficiency and speed of transactions recording. - Less or no documentation to revise and no middlemen or intermediaries to pay in order to guarantee the validity of transactions.
- Transparency - All transactions are open to anyone who wishes to view them. There are no secrets here.
- Security - As this is trustless the only trust here is in math’s and protocol. There is no trust in a single organisation
- Improved Traceabiltiy - The blockchain cannot be changed it can only be added to so the history of every asset can be viewed by anyone who wishes to view this.
- Increased efficiency and speed - Reductions in human error and the data can be validated quickly
- Reduced Costs - This helps replace paper documents that are needed in most contacts to help verify processes and transactions. It also takes away the need for a trusted 3rd party to help conduct any financial transactions.
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With regards to financial transactions, for example, once transactions are confirmed by the network participants through consensus and recorded on the blockchain, the public nature of the blockchain ensures that every participant shares the same information regarding all the transactions recorded. Due to this feature, data on the blockchain is more accurate, consistent and transparent, and it is also more secure because if somebody wanted to alter a single transaction record, it would require the consensus of the entire network and so therefore making it nearly impossible to hack the information stored on the blockchain.
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Building on what I touched on above, not only does altering transactions require the consensus of the entire network, but once a transaction is approved it is encrypted and linked to the previous transaction. Data on the blockchain is not controlled by a central authority, it is stored on the distributed ledger across multiple computers in the network where security is shared among all network participants, this creates a large layer of security and makes engaging in hacking or illegitimate activity difficult. In fact, in order to hack the blockchain network, one would require more than 51% of the entire computing power of the blockchain, so yes nearly impossible. This added layer of security is a nice selling point for industries where protecting sensitive data is paramount (financial services, government and healthcare for example).
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When speaking about traceability, the word provenance comes to mind, this refers to the creation of a new system whereby products and materials are traceable and transparent through making use of blockchain technology. The Blockchain does not only pertain to Bitcoin and financial transactions, but it has many different use cases for a wide range of industries. An example of this is companies that deal with products that are traded through a supply chain. Currently, these companies have to trust each other that they are legitimate and are playing by the rules, this creates a lot of stress, because there is no way of verifying the origin of products or whether the companies are being truthful. This is where Blockchain can be useful. By providing a transparent data storage system where exchanges of goods are recorded, the result is an audit trail that traces the origin of products and records every detail about its journey through the supply chain. This removes the need for trust and replaces it with verification which serves to authenticate assets and prevent fraud.
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Blockchain technology is an advanced step away from paper-heavy processes (that eat into the valuable time of businesses - time is money), these processes can be riddled with human error often requiring third-party mediation. By implementing this new automated technology, transactions can be completed faster and more efficiently. It also removes the need to go through the physical auditing process because blockchain is digital and it combines the accounting and transactional layers into one, again contributing to efficiency. Another thing it removes is the need for trust and numerous intermediaries because everyone has access to the same information recorded on the public ledger.
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Every single business on the planet has reducing costs as a priority. With Blockchain, trust does not need to be placed in intermediaries bur rather the trust is placed on the data of the blockchain. Reviewing multiple documents when trading with companies will be a thing of the past because everyone involved has access to a single, immutable ledger with all the necessary information contained therein.
Transparency: The database is a public ledger and can be accessed and traced back to its origins if needed, trustless data
Security: The data is stored within multiple computer networks which makes it nearly impossible to change (without the whole network agreeing to it) or manipulate the data in any way.
Improved Traceability: You can easily trace back into any point in the supply chain of your products from level 0 to the level it reaches your hands.
Increased Efficiency and Speed: Everyone has access to the same trustless data with no papers, printing, faxes or extra emails to be sent. Everything is there and legit for everyone.
Reduced cost: Now when you trust the blockchain you don’t need as many third-party services or other middle man services, you can focus on the business itself rather than the trustworthiness of your partners.
Transparency: Shared ledger updated by consensus that all parties can see. Alterations would require collusion of the entire network.
Security: Transactions must be agreed upon by the network before they are recorded and they are linked to the previous transaction.
Improved traceability: Complex supply chains can be traced back to their origins because all blockchain transactions are linked and agreed upon. The inherent audit trail provides authenticity.
Increased efficiency and speed: Compared to paper heavy processes where transactions are slow and error prone the blockchain offers electronic, clean, trusted records. Clearing and settlement of transactions is very fast as you don’t have to have intermediaries verify authenticity.
Reduced cost: Reducing middlemen and rework saves money.
Transparency:
Because blockchain networks are public, all participants have access to the information rather than just one central party.
Security:
Transactions are immutable (can’t be altered once confirmed) and network needs consensus, thus no one can claim you have 10000000 BTC or the network will reject this.
Improved traceability:
Through blockchain, being public ledgers, we can trace back transactions - for instance, with supply chain, we are able to see each step of the way a raw material, ingredient went through as it traveled into the finished product. Also, since it is one network / protocol, no need to produce records numerous times i.e., vendor A won’t have it’s own set of records produced by its employees which may differ from the purchaser.
Increased efficiency and speed:
See above for record keeping. As everything is interconnected under the same protocol, record-keeping is automatic and thus reduces administrative delays and third party costs in record-keeping.
Reduced cost:
Eliminate need for third parties (for instance, notaries) and human review of documentation which can be administratively costly.
Transparency- All transactions are recorded on the blockchain, these records are free for everyone to see. This means we can carry put real time auditing on data that has not and can not be compromised.
Security- Firstly a consensus much be reached before any record can be made to the ledger, if the transaction does not make mathematical sense then it will not be validated, this ensures that all information on the ledger is accurate. This ledger is stored across numerous nodes ensuring that a hack or any other security breach is extremely unlikely.
Improved traceability- Any entity or business that needs to track assets , stock in , stock out can benefit from blockchain. Most supply chains are complex and the information can be unreliable so they would benefit greatly from blockchain. A supply chain record would be essential in reliably verifying authenticity eg. an organic food supplier.
Increased efficiency and speed- We can perform transactions permission less and without an intermediary. This makes a blockchain transaction much quicker and also cheaper. Also traditional record keeping is very time consuming often with physical paper files taking up space in offices , warehouses etc.
Reduced cost- As I said above, blockchain transactions can be carried out without the need for third party intermediaries and auditors . An immutable digital record of every transaction on the chain is kept forever. This all means a huge reduction in the cost of running an organisation.
1 transparency means it is a distributed ledger that all node from the network has a copy of it , it is shared with all across node (computers ) the networks to verify the data information .
2 Security is very important on blockchain and network, it lead to the growth of the network , removed the control of failure , approved , verifed TX and data across node with a mutiple computer to avoid scam and issues on the network.
3 increased efficiency and speed by removed a third party or a single powerful entity to lead a trust-less system , a transaction is send to a blockchain, everyone can see or receive this directly node on the network share info each other to treat correctly the data before to be on the blockchchain.
4/ improved traceability nowadays Retail company don’t have or don’t share all information on a product , with the blockchain technology and the network effect it lead to trust less the entity of the product and know more about it and it provenance . it help the traceability of the data from where it been created. with the network it help considerably to verify the information given ,
after a long chain effect we may not have 100% truth of the product or the data given blockchain will resolved that problem issue.
5/ reduced cost No need for third parties to interact to process , no middle man who take is profit , it reduce considerably the cost effect , blockchain technology is mind blowing ,
don’t trust is verify and removed third party is key for a success.
Transparancy:
All data er stored in an immutable common ledger, that all participants int the network maintain and agree upon together - hence you don’t have to trust and get access to centralized data
Security:
All transactions are vlidated by all nodes, and cryptographically secured in the ledger. It is “impossible” (very hard) to change them once they are stored, as it would require control of the majority of the nodes (hashpower) to alter the ledger afterwards.
Improved traceability:
A blockchain provide you with linked transactions - maening you will have a complete audit trail of your supply chain
Increased efficiency and speed:
I do not agree on that claim! Yes - it is faster when compared to traditional paperwork - but that is a skewed comparison. No one does their accounting on paper anymore. Compared to a centralized Database solution a blockchain is inefficient and slow. But yes - some processes are probably quicker as you cut out intermediaries
Reduced Cost:
By cutting out the midddlemen, you reduce costs
Transparency: Blockchain is an open ledger that anyone can view and verify at any time. Also in order to change a transaction, the entire network has to agree.
Security: Hackers can’t access a single entry point to hack the network as the entire network is running on the same ledger, if a transaction or series of transactions are flagged by the network, it will be rejected.
Improved traceability: Users are able to track the entire process from start to finish. Think of it as tracking your shipping order online. It shows each data point except how it goes through the manufacturing process. Think of it as inception, where the materials come from, where the materials go to, how its prepared, how its shipped, how its delivered, and finally, how is it settled in terms of payments.
Increased efficiency and speed: Since the system goes through the public ledger, all participants will be able to verify at a faster speed compared to manual verification which can often take time and possible other transaction factors (middle men).
Reduced cost: Since the system can go faster and more efficient, less “hands in the money” will be required per transaction.
Transparency:
Anyone can access the blockchain and read out data. No special permissions required.
Security:
The blockchain is stored on many different computers (not only on a single computer) thus data loss is almost impossible. It is also tamper-proof through mining.
Improved traceability:
The blockchain can be used as the single place where you can find all involved parties and steps. E.g. the production of a good that involves many different companies can be tracked on a blockchain.
Increased efficiency and speed:
No paperwork is necessary. Everybody can see the same information. Record-keeping happens automatically.
Reduced cost:
Less time is needed for documenting business transactions and creating trust.
1 - Blockchain is a public ledger, therefore anyone can view the information on it.
2 - Since we are not relying on a centralized authority, the network is kept secure by all its users. Even if one party gets compromised, thanks to consensus, it would have no impact on the other copies of the ledger.
3 - As mentioned in the first answer, the Blockchain is public so anyone can check what information are on it. In addition, it is also immutable therefore it cannot be tempered down the supply chain for instance.
4 - When different parties do business together, they usually require third parties to authenticate or to ensure everything is done according to agreements. This usually requires a lot of money and it’s time consuming. By using Blockchain technology business partners can skip third parties and trust the blockchain.
5 - As mention in the previous answer. Third parties are time consuming and pricey. By trusting the blockchain we can bypass third parties.
Transparency: everyone can view blockchain
Security: computer system running everywhere
Improved traceability: products can be trace from origin location to final destination
Increased efficiency and speed: remove middle men
Reduced cost: remove middle men
Transparency: Blockchain add transparency by letting everyone have a digital copy of the whole ledge. Now because everyone has a copy, everyone and see whats going on, therefore there is much greater transparency.
Security: Blockchain enhanced security allows us to prevent fraud and unauthorized activity.
Improved traceability: Verifies authenticity of assets, because everyone has a copy, we can trace the origins or every asset which helps with authenticity
Increased efficiency and speed: Many companies have to use paper ledgers, middle-med, and intermediaries. This allows for much faster process times and quicker payouts.
Reduced cost: It gives a reduction of cost by cutting out alot of verification steps. We simply use and trust the digital ledger and there is no need for middlemen. The less step in the verification process, then less the over cost of the transactions.