Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1027

Transparency:
All transactions in a blockchain are visible to all users that have access to it. Therefore i would not say the blockchain is transparent primarily but first of all it is visible. There is no hidden data and anybody that want’s to understand what happened in the blockchain can do so and get the transparency needed.

Security:
The blockchain technology offers some great advanteges compared to “normal” ledger systems. First it secures that any transaction written is correct, meaning there was a consensus on the information correctness. Secondly the information is stored immutably, secured against changes. Third the ledger is distributed all over so it secures data availability on HA Level.

Improved traceability:
The blockchain is a digital ledger therefore it allows you to trace transactions. Compared to a normal bookkeeping system it additionally links the transactions therefore the traceability is even better on the blockchain.

Increased efficiency and speed:
As a digital solution it is much more efficient than any manual paper workflow and approval process.
This is not blockchain specific and (if done correctly) the normal advantage of IT-Systems. The advantage of the blockchain can be spottet on the elimination of intermediary mediators often required on bigger workflows with multiple “players”.

Reduced cost:
The blockchain reduces costs just by eliminating middlemans that are required in a trust-system. You save all the (in fact useless) work that is required in a trust-system to be “save” that the information is correct and nobody cheats you.

#1028

Exactly what i think. Blockchain is not a silver bullet and compared to normal systems we use today extremely inefficient. But if we just talk about the trust part our systems are also completely unsecure.

#1029
  1. Transparency:
    Transactions done on blockchain have transparency in which the transactions are recorded and done on multiple computers unlike a single server. Blockchain is a type of distributed ledger. There is no way to alter one transaction because all the participants have access to the ledger and it will take a consensus of all the participants to have one transaction/record to be changed.
  2. Security:
    The transactions done on blockchain must have consensus among participants before they get recorded. Once the transaction is approved and encrypted, it will be hard for hackers to compromise the data because blockchain is composed of network of computers, not a single server.
  3. Improved traceability:
    With blockchain there is a better traceability process. An example is a company that has products that are traded through a complicated supply chain. The said products can be easily be traced back to its origin. In addition, the data can help verify the product’s authenticity. This in turn will help prevent fraud.
  4. Increased efficiency and speed:
    With multiple ledgers being reconciled through blockchain, there is increased efficiency and speed in dealing with any paper-heavy processes. The record-keepings is done using a single digital ledger that is shared among participants. So, there is less clutter and you don’t have to reconcile multiple ledgers and settlements occur faster.
  5. Reduced cost:
    Most companies will have reduced costs when they use blockchain. They can have transactions even without “trust,” because every party involved has access to a single, immutable version of a transaction/data.
#1030

Transparency:

  • There is a single ledger containing all information which is available to all parties who have permission.
  • As it is a distributed ledger with every transaction requiring consensus, no one can alter information without all other parties agreeing.

Security:

  • As it is a distributed ledger with every transaction requiring consensus, no one can alter information without all other parties agreeing.
  • Once information is agreed upon it is committed to the blockchain and thereafter encrypted forming part of a defined “block” which is then chained to the previous block making it immutable.

Improved traceability:

  • Exchange of goods much like transactions, can also be logged in the blockchain.
  • This leaves an audit trail where origin of assets are recorded and every stop along the supply chain can be verified.

Increased efficiency and speed:

  • Removes heavy paper work and cumbersome multi-party records.
  • Single digital ledger
  • All have access to the same information.

Reduced cost:

  • A single digital ledger removes middlemen, third parties and the need for guarantees.
  • Reduced documentation, third party auditing and accounting services.
  • Everyone can use the same immutable version, rather than having to make there own personalised records.
#1031

Transparency:

Security: every transaction has to reach a consensus. if a consensus is not reach than it goes unconfirmed. and when consensus is reached it can’t be reversed or deleted it’s there for every for everyone to see

Improved traceability: When a supply chain for example uses a block chain you can verify where a product came from and where that supplier got the product from. That way we know at all time if something is switched out or not. helps make it a trestles system

Increased efficiency and speed: without the need for a lot of paper documenting and trusting people to do their job correctly Audits can be done in real time instead of taking hours of someones time

Reduced cost: You don’t need to rely on as many people outside of your business thus paying less people to track orders or transactions of all kinds

#1032

Transparency: Blockchain allows all users to have access to the same information increasing the trust among participants.

Security: Decentralized nodes competing to authenticate blocks incentives people to act in good faith, it also makes it increasingly harder to hack.

Improved traceability: The ledger can never be changed once a transation is completed. And we can see from fit to finish the entire history of the transactions.

Increased efficiency and speed: For businesses, blockchain offers ways to cut unnecessary costs by analysing the supply chain managers can make decisions and hold standards.

Reduced cost: Paper heavy processes can be eliminated using blockchain technology while also allowing management to find the best option to bring their product to market.

#1033

Reading Assignment
Benefits of the Blockchain Technology.
Transparency
In the fast moving digital environment, we live in today, greater transparency is a necessity and is provided by blockchain technology. This cuts away the old paper system or third party verifications and goes to a simple network consensus that works trustlessly, along with providing finality to the data that can be verified by anyone with access to that blockchain. To change a single transaction on one block would need a coordinated effort by the entire network. The bigger and more global the network the more difficult this process would become until it was improbable in nature.
Enhanced Security
A major game changer that distributed ledger technology provides is that the data is that the data added is agreed upon by the network majority prior to data entry on the blockchain. This data is then cryptographically encrypted and linked to a previous transaction, any attempt by a hacker to alter a single data entry would result in a change in the encryption output of the previous and subsequent data entered invalidating what has already been agreed by the network. This technology is invaluable in data sensitive agencies fort both cost and security.

Improved Traceability
The technology can provide improved traceability when provenance is applied from conception to realisation. You would not need to trust the story of where and how an item or material reached it’s destination. The facts can be verified by the trustless consensus of the network as each stage or process is entered for all required to view. This process is nothing short of being an auditor’s dream system.

Increased efficiency and speed.
The increase speed and efficiency of such a system is introduced automatically with blockchain, as you eliminate the requirement for many systems used for checking, processing and verifying data via processes you no longer need. The fact that the data is a single ledger although duplicated around the network, it is still exactly the same data being used by its network of participants. This means that no information needs to be sent or waited upon by a single entity, meaning validation and hence settlement can be processes much faster using a blockchain.

Reduced Cost
In the world of any business or financial entity, the need to be constantly reducing costs while at least maintaining status que or improving as a company is what keeps you competitive or even gives you the edge among your competitors.
As the previous four points demonstrate, blockchain provides the ability to streamline a business or industry in so many ways, all of which with reduce cost. The amount of archaic processes that required so much upkeep, third party involvement and of course cost is removed by the very DNA of a distributed ledger technology the operates trustlessly.
As long as you are in agreement that the network is incentivised to tell the “truth” to reach consensus, then you are good to act upon the verified data without the need for any further expense such as a third party entity provides. Remember, less cost can also mean. less time.

#1034
  1. Transparency:
  • viewable on block explorers and etherscan
  1. Security:
  • consensus creates a self auditing system that is super resilient to 51% attacks, or changing the truth. Decentralization adds layers of redundancy and high availability as well as standards that are perpetual and immutable.
  1. Improved traceability:
  • immutable ledger provides transparency unheard of in traditional enterprise models.
  1. Increased efficiency and speed:
  • one ledger and less middlemen = greater speed and profits per man hour
  1. Reduced cost:
  • One permissionless layer and ledger instead of countless man hours lost on billing and reconciliations
#1035

1.Transparency- with everyone having the same information with the help of a public ledger, everyone can be more efficient then having an individual copy that could cause problems if its incorrect.
2.security- all transactions need to be by the whole system, a consensus to make sure if the transaction is accurate. also all data of transactions are stored in the block chain of every computer running it.
3.improved traceability- block chain helps with tracing back to the original source, instead of having to go through a complex system of the supply.
4.increased efficiency and speed- the single digital ledger helps out with faster transactions w/out having to deal with the middle man and since there is only one you dont have multiple ledgers getting mixed up.
5.reduced cost- since you dont need a middle man/third parties you dont need to worry about paying them to fact check when block chain cuts out the middle man and does the work for you free.

#1036
  1. Transparency: By sharing the same documentation of individual copies with data, and data can be updated only if everyone agrees to it.
  2. Security: As transactions must be agreed by everyone to be recorded in “Viking stone” and to be stored/shared across the network, it becomes very difficult for crackers to compromise the transaction data.
  3. Improved traceability: Gives trustless transactions by being able to verify the authenticity of the goods and check audit trail by yourself to prevent fraud.
  4. Increased efficiency and speed: By excluding human error. Instead of streamlining and automating processes, transactions can be done faster and more efficiently.
  5. Reduced cost: By not having 3rd paries involved or middleman to guarantee the transaction. And you don’t need to check the documentation to complete a trade.
#1037
  1. Transparency: Each praticipant of the network owns a copy of the blockchain
  2. Security: Transactions have to be approved by the network before executed completely. The transaction is then linked to the chain of previous transactions and is immutable from now on.
  3. Improved traceability: Assets can be traced for each stage of the supply chain
  4. Increased efficiency and speed: Only one ledger is shared among the participants and there is no need anymore to reconcile multiple ledgers.
  5. Reduced cost: Third parties can be excluded
#1038

  1. Transparency
    All network participants share the same ledger containing all of the information, so everyone can see all of the same information as everyone else. The ledger can only be updated if every participant agrees that the new data added is true.

  2. Security
    Because every participant must agree that an update to the ledger is true, no single party can unilaterally add data to the blockchain, preventing the recording of false information. For any outside entity to gain access to encrypted information they would have to hack every network participant simultaneously. The ledger contains the whole history of transactions made, so network participants can verify that the assets do exist.

  3. Traceability
    Because the ledger contains the whole history of all transactions made it can act as an audit trail for all network participants, allowing any participant to see exactly where assets came from and where they went.

  4. Efficiency & Speed
    The single shared ledger reduces the need for paper-heavy processes tracking the movement of goods. It also reduces the possibility of human error by automating lots of the processes

  5. Costs
    The reduction in human error can avoid costly mistakes. Costs are also reduced by removing the need for 3rd party mediators and reducing the amount of paper-heavy processes (so reducing employees’ time spent completing and reviewing documentation)

#1039

Any reason why you skipped transparency? If you need some help, try looking at others people answers.:smiley:

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#1040

Very good answers. Keep it up. :100: :fire:

#1041

Altering a transaction in a block will only invalidate the blocks after it and not the entire history. However this is still pretty secure. The older the transaction is the more it is secure.

#1042

Very nice and detailed answers. :fire: :fire:

#1043

Hacking is not based on a chance. If the network has a lot of nodes with a good consensus it will be hard to hack it. It means an attacker would need to spend more in order to make a successful attack. He should be able to calculate how much it will cost him to attack the network.

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#1044

Blockchain transactions are not encrypted, at least not in bitcoin. Blocks need to be mined. It means that a miner needs to find a specific hash for each block it wants to append to the blockchain. In order for them to do this, they have to spend electricity. This makes the security of the bitcoin blockchain very secure.

#1045

Very nice read, with a great introduction of the homework. Very informative and unique. Keep up the great work! :raised_hands:

1 Like
#1046

Thank you, Mauro. As you can see, I’m still learning and have a long way to go.

1 Like