Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#802

The benefits of using a blockchain:

Transparency is paramount in processing any transaction. What can be agreed upon by everyone makes for a solid transaction.

Security is where everyone can see and rely upon what they are seeing where transactions happen. Nothing can be forged or controlled by a private entity therefore it is safe.

Improved traceability is a benefit because it removes discrepancies and if in the case of an error (on the part of the sender; say, a company or individual) can be seen clearly. Not necessarily undone, but at least seen.

Increased efficiency is like a weight off all of our shoulders. These transactions happen in minutes. What we’ve all dreamed of in exchange.

Reduced cost benefits everyone in that money can be directed to more productive and creative ways to improve business and not so much used in transactions themselves.

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#803

Transparency: Before information is added into the chain it has to be verified and agreed upon by other Nodes. When something is added, it is then able to be seen by everyone on the network, making old for anyone to cheat.

Security: Its hard for hackers to compromise the database because the info is spread over a number of nodes, so if a hacker get one down, the others can still check and find out where/who is compromising the system.

Improves traceability: For companies who have a hard time dealing with supply-chain tracking, blockchain traceability allows them to keep track of all there moving parts in the supply-chain.

Increased efficiency and speed: Peer to peer makes it faster than having a central/middle man

Reduced cost: get rid of the taxing middle party

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#804

Blockchain provides us with a technology that is inherently transparent :white_check_mark: due to the public ledger nature, secure :lock: because it eliminates the trust required towards a 3rd party. Since each block is connected to the previous block hence it is very traceable by nature. :chains:
When transferring funds from one place to another it is much faster and cheaper compared to traditional banking systems. :rocket: :dollar:

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#805
  1. The blockchain is a transparent ledger of transactions. All transactions can be traced. All network participants have the same ledger so everone sees the same data.
  2. Because blockchains are maintained on many computers they are less likely to be hacked.
  3. Since every transaction is stored on the blockchain it is a simple process to trace where transactions originated and were sent.
  4. Since all records are digital, transactions are proceesed with the speed of light.
  5. With reduced paperwork, auditing requirements, and intermediate personnel, costs are reduced.
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#806

Transparency. All permissioned/unpersmissioned users have access to same record of transaction data. Changes to the blockchain are made by consensus from all validating parties.

Security is inherently built into this distributed ledger network, each node validating the same record, making it very difficult for hackers to comprimise the original information.

This immutable provanance allows for simple verification and tracking of goods and/or financial instruments.

Blockchain ultimately saves time and money by recuding friction along the entire supply chain, removing unnecissary third parties, simplifying accounting and allowing for real time changes.

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#807

Transparency :
Transactions are agreed upon by consensus, set in stone, and all participants are allowed to access the information to verify it. There is no one authority that dictates the information.

Security :
Transactions are recorded, encrypted and stored in the blockchain which is distributed to all the decentralized nodes. This makes it so there is no single point that you can hack, making it very difficult to hack the blockchain or falsify data, and also protect against data corruption. It also reduces the cost of maintaining security for businesses.

Improved traceability :
The chain of custody is permanently recorded and can’t be altered. You can go back and verify every step. Since blockchain is trustless and immutable, you can audit very easy and efficiently, without permission of an authority. This leads to better quality control in production.

Increased efficiency and speed :
Transactions are automated and doesn’t need intermediaries to process. This helps eliminate human errors or purposeful falsification. Everyone have access to the same blockchain and can self-verify the information (one public ledger for all). Sending and receiving is easy using blockchain technology, no middle man, no worry of server downtime.

Reduced cost :
It’s trustless, so it removes all the middle men, therefore less fees and road blocks. Blockchain provides opportunity for entrepreneurs. They can build technologies on top of the blockchain backbone so doesn’t require massive amount of funds to create a whole system from the ground up (although scalability is an important consideration).

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#808

1.Everyone in the network gets same information. When consensus is reached by all network participants and record is made data can’t be changed. Thus creating a more transparent process where transactions can be traced back to their origin.
2. Data is distributed all network computers not just one server. Once participants agree on the validity of transaction, each transaction gets recorded and encrypted and then linked to the previous transaction. That makes it harder for attackers to compromise data in the blockchain.
3. Any transaction can by traced back to it’s origin. In a complex supply chain you can trace any ingredient all the way back to its origin. All transactions get recorded in real time which enables to track the journey of goods at any point of time.
4. Since its a digital ledger it reduces paper clutter and human error, which allows for more efficiency. When everyone has access to the same information multiple third parties involvement becomes redundant. You no longer need third parties for verification and trust and the process becomes more streamlined and hence faster.
5.Blockchain technology eliminates many third parties and middlemen that were needed for trust assurance. Now you trust data on the blockchain that has been recorded by everyone. Since everyone has access to data that can’t be later manipulated you don’t need to spend as much time for verification.

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#809

The benefits of using blockchain

[1] Transparency:
With a blockchain system, all that have access to it are able to see every transaction or recorded event from the beginning to end. In addition to this each distributed node is an exact copy of the other, so there is no chance of the system giving one party a different reading to another.

[2] Security:
Blockchain is a distributed ledger that is immutable for the most part. It would take collusion among all the distributed nodes in the same blockchain to change recorded information. With a blockchain that is open, its nodes are located globally and the nodes are not under one control, the goal of causing corruption would be next to impossible.

[3] Improved traceability:
With a blockchain, what goes in is what comes out. If you enter details into it each time goods are exchanged in a supply chain, one would have this historical and reliable information readily available in the blockchain. Also other conditions could be recorded like min and max temperature readings, if any unusual impact forces occurred, if seals were changed or broken…

[4] Increased efficiency and speed:
If everyone is using the same system and it is robust, secure, efficient and infallible, then all would benefit. No one for example would have to do any additional verification or duplication, which equates to a savings of both costs and time. Blockchain systems affords all the above and so interacting businesses that use this setup would certainly benefit.

[5] Reduced cost:
Blockchain systems that are shared between different parties allows for the reduction in the number of middle men and equipment that would have been needed to grantee all is right at the different stages in the process. Hence cost would be reduced.

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#810

Transparency: All of the data will be on the blockchain and is available to anyone who has permission to view it.

Security: Since the blockchain in immutable and spread across a network, the blockchain cannot be tampered with unless there is a consensus on the network to change it which means the blockchain has a high degree of security.

Improved traceability: All data will be on a public ledger that is easy to follow and available to whoever.

Increased efficiency and speed: Less paperwork and middlemen to go through so things get done quicker by inputting the data on the blockchain that anyone can see at anytime.

Reduced cost: Less middlemen, less paperwork, less cost on wasteful things that can easily be bypassed by having all the data available and organized on the blockchain.

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#811

This will become more clear in other lessons. Every blockchain has consensus rules. In Bitcoin, we use Proof of work with a certain ruleset. Basically, every node needs to have the same result of everybody else, (same blockchain, transactions etcetera that follow the consensus rules) Every full node has a copy of the blockchain. If 1 node would change something in the blockchain, other nodes would immediately see that your information doesn’t match with the common truth. So nodes will reject this node. If you want to cheat in this system, you need to have the hashpower of more than 51% of the whole network to be able to cheat. But Bitcoin is so big and has so many miners that this is just not feasible. In altcoins using proof of work consensus, where there are not much miners and users, are much more vulnerable to this kind of attack

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#812

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

  1. Transparency: Blockchain is the public database and it can be access by anyone who has access to the network at real time.

  2. Security: All the transactions are verified and confirmed by more than one network computer which means if the transaction does not make sense then network declines it. It makes hackers very hard/nearly impossible to cheat many network.

  3. Improved traceability: As it is a public ledger, anyone can trace any given transactions in real time, and it is easy to trace it. All transactions published on blockchain stays on blockchain.

  4. Increased efficiency and speed: blockchain remove the middle person or any agent so transactions will be efficient. For example: if we want to transfer money during weekend we do not have to wait till Monday.

  5. Reduced cost: Removing third party reduces that extra cost of making any transactions.

#813

Blockchain Benefits

  1. Transparency: provides accurate and consistent data because all participants need to agree to any changes before it can be updated. Once updated, the new version is available to everyone simultaneously.

  2. Security: Data/transaction is verified first by consensus, then encrypted and written into law (ledger) without being able to be reversed or cancelled. On top of this, the ledger is kept on multiple devices around the globe enabling redundancy. IE: if various devices go down the system is still alive through the other multiple live devices.

  3. Improved traceability: Every part of a transaction is recorded as part of the process, creating an automatic audit trail which is especially useful in trusting supply chains and avoiding fraud.

  4. Increased efficiency and speed: Another included benefit of blockchain is the removal of human handling and error, saving time. Plus because of the trusted ledger, there is no need for reconciliation, additional record keeping or auditing as all that is already automatically included in the verification process and finality of the recorded ledger.

  5. Reduced cost: Blockchain removes the need of most middle men or intermediaries, saving time and money. That in turn eliminates another level of possible error or fraud (which are 2 other cost savings). This is done again because there is TRUST in the DATA on the blockchain removing the necessity to trust the trading partners.

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#814

  1. All participants share same documentation and can verify transactions

  2. common data can only be updated via consensus

  3. transaction history can be made public

  4. reduces human error through automation

  5. removes third party brokers

#815

Transparency: Literally means to allow light through so that people on the other-side of an object can see through. So Blockchain offers greater benefits of transparency because being a decentralised ledger everybody on the network (who has permission to view it) can see it. In Bitcoin’s case as it is a public ledger then everyone who has access to the internet can view it. In addition because every transaction added to the chain has been verified through consensus (everyone agreeing) and because not transactions can be edited, altered or removed then everybody is seeing the exact same copy of the ledger. Therefore rendering the benefits of being more accurate, consistent and transparent.

Security: is enhanced because all transaction that are verified and agreed across the whole decentralised network are then linked and encrypted to the previous transaction when added to the chain. This then secures the chain as no record or transaction can be altered, edited or deleted thus making it near on impossible to hack or corrupt. Securing the history, provenance, authenticity and integrity of the chain.

Traceabiliuty: Because each transaction is encrypted and linked to the previous transaction this then leaves a highly accurate, transparent and secure audit trail showing every step of an assets journey along the chain.

Efficiency & Speed: Traditionally paper based operations are time consuming and prone to human error. Think of snail mail. So putting everything onto one continuous, verified decentralised chain that everybody on the network has access to means that functions can be streamlined and performed a lot quicker, efficient and a lot more accurate.

Reduced Cost: In all walks of life humans are searching for ways to do things cheaper (cost effectiveness), and be more convenience (speed). Blockchain offers these benefit as there is no need for high levels of trust between people, 3rd parties, systems and middle-men. It simply a case of trusting mathematics, protocols and computers. In addition blockchains can be without boundries, are friction-less, and have the ability to remain functioning 24/7/365 with being taken-down.

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#816

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

Transparency: With the public ledgers that blockchain is using and consensus involved transparency is a big advantage beause there is now a data that is stored in this network and can’t be changed or manipulated with and it is available for everyone to see it, it removes the trust and it makes possible for everyone to verify.

Security: Security in a blockchain is million times greater than in any centralized system because every transaction is being tracked and it adds on the previous one. Instead of all of them being stored on one server it is being stored on all servers or ledgers so in order for something to be hacked or changed it would have to be changed in every single one of this ledgers, which makes it impossible and it makes it a top security level!

Improved traceability: If you own a company for any given product that you have you can trace back the origin, and every stop it made on the way which creates this network of informations which really makes it difficult for companies to lie and not being noticed. It allows greater information of any given thing and it prevents frauds.

Increased efficiency and speed: With all of the paper work that nowadays we have in our systems it is sometimes a long time struggle to keep track of every given transactions and all of the informations and it takes alot of space for everything to be stored. With blockchain everything is being stored on one global network which is not able to manipulate with. It is fast and efficient when it comes to transactions or storing any type of data, and it completely verified. It does not include a third parties etc.

Reduced cost: It really does not include any third parties that always try to take some cut for themselves legally, out from your and companies pocket into theirs, it rather supports 1 on 1 doing business with full profit.

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#817

Transparency:
The blockchain is completely transparent because all the information on the blockchain is distributed over the entire network.

Security:
The blockchain is secure because all the information is encrypted and immutable.
The blockchain is only relying on the mathematical protocol and only a global consensus is enables new valid information to be added on the blockchain.
This makes it impossible to reverse a transaction or temper with information that has been added to the blockchain. This makes the network trust less.

Improved traceability:
Because all the information on the blockchain is respecting the same protocol, you could potentially trace each and every constituent in the supply chain.
The built-in provenance allows you to verify everything.

Increased efficiency and speed:
Because of the build in provenance, you do not longer need to take human error into account, or hire third party that will do the audits.
In stead, you can rely on the blockchain and focus on your core business.
This improves your efficiency dramatically.

Reduced cost:
Because you eliminate the middleman by relying on the blockchain, you also eliminate the fees that comes with hiring a middleman.

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#818
  1. Transparency:

Blockchain tech creates increased transparency by the fact that once a transaction becomes verified by the network supporting that blockchain, the transaction becomes encrypted and everyone on the network is able to see that transaction.

  1. Security:

Blockchain allows for more secure transactions because there isn’t one single server responsible for securing the data, but rather an entire network of computers using protocols that make it nearly impossible for the data to become hacked.

  1. Improved traceability:

In supply chains, it can be difficult to track the movement of goods as these good travel from one stakeholder to another across the supply chain, and blockchain makes it essential for the information of the goods being tracked to be verified by the network at each stop along the journey of that product.

  1. Increased efficiency and speed:

In short, blockchain can increase efficiency and speed by replacing previously manual processes like paper auditing and the need for intermediaries as the blockchain is.a decentralized network that houses all the data in a transparent manner and eliminates the need for middlemen give that the data is all that is required to establish the trust of a successful transaction.

  1. Reduced cost:

Without the need for traditionally expensive intermediaries, many costs are cut out of the equation and it becomes much cheaper and efficient to transact.

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#819

Transparency: since the blockchain is an open ledger, everyone has access to all transactional information. This removes the need for trust since all miners must achieve consensus for a transaction to be recorded.

Security: With the immutability of the blockchain, all transactions are final. All blocks are built on top of each other so once a transaction is put in the blockchain, it is impossible for it to be “rolled back” to undo the transaction.

Improved Traceability: By using the blockchain to track steps in the supply chain, it increases the ability of individuals to confirm the authenticity of their products.

Increased efficiency and speed: Using a blockchain is used to handle transactions is much more efficient than using direct human-to-human transactions. Human error is a common phrase and when you put the power in the hands of the network, speed increases greatly.

Reduced cost: Since the transactions are peer-to-peer, there is no need for trusted third-parties. When transactions are direct, cost goes down and efficiency goes up.

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#820

Transparency: All data recorded to the blockchain creates a single ledger that is accessible to all parties of the network. It is a huge benefit because all the data is exact, and the same no matter who is viewing it. There is no room for manipulation of data through the chain. It benefits all parties because they can see exactly what happened at every step/block.

Security: The security of blockchains is beneficial due to the underlying fundamentals of consensus and connectivity. Data transactions must be approved and agreed upon by every node, making it less susceptible to false information making its way into the blockchain. All nodes are connected with exact copies of the ledger creating an environment where a hacker would have to be able to attack all nodes at once, or the majority of them, to be able to compromise the network. This removes the vulnerability of information being stored on a single server.

Improved traceability: The benefit in the traceability of blockchain transactions is that every exchange is recorded and verified. It gives users the ability to confirm exactly where data or a product came from, and everywhere that it went to get there, and shows authenticity of such data/product.

Increased efficiency and speed: Blockchain cuts out many of the middlemen, and produces the same information to every participant. By doing so it allows transactions to be fast and indisputable. There is no need for different branches to create their own ledgers as the entirety of all transactions exists within the network ledger themselves and can be accessed by everybody.

Reduced cost: Blockchain removes the need for many intermediaries, reducing costs. There is no need to trust in any third parties as all aspects of the transaction are contained within the network itself.

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#821

  1. Transparency: all the participants share the same documentation, shared version can only be changed by consensus, is available to all participants who have permission access.

  2. Security: With blockchain information is stored across a network of computers and that makes it very difficult for threats of hackers or to be compromised. The blockchain prevents fraud and unauthorized activity.

  3. Improved traceability: With blockchain, there is an audit trail that traces the history of transactions, assets, products, showing every stop throughout its move along the chain. The historical transaction data helps to verify authenticity.

  4. Increased efficiency and speed: With blockchain record keeping is with single digit ledgers rather than multiple so that is more effecient as well as automating the whole process. And with everyone having access to the information settlements can happen much quicker.

  5. Reduced cost: Blockchain cuts out third parties and middlemen because their no longer needed. And it’s the trust in the blockchain data that can make that happen.

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