Transparency: Since all verified information and events are stored on the ledgers/blockchain you can factcheck everything you want. Since everybody can look in the chain and has acces to the same information as everybody else, we are levelling the playing field.
Security: First off an trasaction only enters the chain when there is consensus making the transactions verified and reliable. After this it gets encrypted and linked to previous transactions creating a chain of verified transactions which makes it harder to alter something in the chain. Instead of centralised storage of the transaction, transactions in the chain are stored decentralised making it harder to hack and cover up vaul play.
Improved traceabillity:Again after an transaction is inserted in the chain it stays there forever making it easy to trace transactions back tot their point of origin and all stops it had in between.
-One point of criticising comment i would like to make is that we are still counting on human input to be honest.
Increased efficiency and speed: We only have 1 archive to search for data: the blockchain. No more compattible issues and information can be checked and verified on the spot.
Reduced cost: Since all need for âtrustâ is replaced with verified data, it doesnt matter who your trading partner is. All information is to be found on 1 place stored on multiple devices which reduse the usual paperword to a minimun.
Benefits of the Blockchain technology.
Transparency: The fact that blockchain features a decentralized distributed ledger, means data is not stored and maintained on one single network/ecosystem, but rather data on the blockchain is kept on record on many different active network participants who must âagreeâ or record transactions in each block with consensus, which lends to greater transparency since data in the blockchain can be audited, and verified with greater transparency.
Security: Since there are thousands of computers in the blockchain network, the security of transaction data is greater than if stored on just one centralized server, where hacks can happen. Superior benefits of using blockchain technology include the fact that transactions must be in consensus by the network before being recorded, and once approved, is encrypted and linked to the previous transaction.
Improved traceability: Since all blocks of data are linked to another block of data, transactions in the blockchain feature superior traceability. The audit trail of assets/goods received empowers improved traceability because one can now verify where each asset came from and the stops it made on the way. This feature allows more confidence in the market because suppliers are held to a higher degree of accountability virtually eliminating the potential for false claims in asset quality.
Increased efficiency and speed: With traditional paper heavy transactions having to be recorded and audited by a third party, you lose time and money not to mention the likelihood of mistakes. With blockchain, transactions use a single digital ledger that is distributed in a decentralized network of computers where transactions are recorded and audited/verified thus eliminating the need for costly reconciliation.
Reduced Cost: By eliminating the need for costly middlemen/intermediaries, blockchain technology streamlines operations because the data needed to make confident, informed decisions is already on the blockchain removing the need to rely on intermediaries who would traditionally provided that data, for a price of course.
- Transparency - helps preserve the integrity of the ledger and eliminates the prospects for disputes
- Security - cryptographic methods provide assurances that transactions cannot be reversed or manipulated
- Improved traceability - asset transfers on an immutable blockchain can be easily tracked and audited
- Increased efficiency and speed - transactions can be settled very fast because they do not require manual accounting processes
- Reduced cost - blockchains do not rely on third parties to mediate disputes or manage counterparty risk
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency:
It is important to consumer confidence that a business be transparent in their record keeping. Blockchain technology And consensus makes it difficult, if not impossible, to change or add records.
-
Security:
Decentralized databases eliminate the threat of hackers coming in from a single point of entry. -
Improved traceability:
This inspires consumer confidence, as the origin of products in the supply chain can be independently verified by multiple sources. -
Increased efficiency and speed:
Blockchain eliminates the need for the reconciliation of multiple ledgers by creating a single shared store of information shared by all participants. -
Reduced cost:
Blockchain eliminates the need for costly middle men used for information verification and resolution of disputes.
- Transparency: All information relating to transactions are available for everyone to see as long as they have permission.
- Security: Information is stored across many different computersâŚdecentralized. The transactions have to be agreed upon by everyone in the networkâŚconsensus.
- Traceablity: all information can be traced to its origin and all the steps in betweenâŚprovenance.
- Increased efficiency and speed: itâs a peer to peer platform meaning the middleman has been removed.
- Reduced cost: all transactions are finalâŚimmutability and finality. Plus, there is no middle man to slow transactions down.
-
Transparency: In the blockchain network all participants have and share the same information and if someone wants to make a change in the records everyone else must agree and by that its more transparent than a centralized database when only a single or few persons have access and can change or remove the information in the records.
-
Security: When a transaction is done every other participant must agree before it is recorded + the fact that all information after that is shared with all other computers participating in the network instead of a single computer it makes it a lot more harder for an attacker or a person with harmful intentions to do a fraud or having unauthorized access
-
Improved traceability: All recorded transactions on the blockchain are irreversible and canât be removed and by that you can trace everything from the very beginning.
-
Increased efficiency and speed: Whatever of trading you do on the blockchain you remove the third partyâs and by that you remove the risk of human error, making the transactions faster and making the process more efficient.
-
Reduced cost: Another good characteristic of removing the third party using the blockchain is that by that you are reducing hugely your costs for doing business and/or making transactions.
-
Transparency:
Information stored within a specific public blockchain is the same for everyone and available to anyone. -
Security:
Once a transaction is verified and written to a blockchain it can never be changed or removed. -
Improved traceability:
Transactions contained within a blockchain confirm provenance and can be used to create a trusted audit trail. -
Increased efficiency and speed:
Using a single blockchain allows all transactions to be available to all interested parties as soon as they are validated by the decentralized network and written to the blockchain. -
Reduced cost:
The way in which you interact with a blockchain is simple and well documented and can therefore be done directly requiring zero trust in any third party or middle men.
you donât need as many third parties or middlemen to make guarantees because it doesnât matter if you can trust your trading partner. Instead, you just have to trust the data on the blockchain. You also wonât have to review so much documentation
Transparency: When using a blockchain information gets stored in a decentralized immutable ledger thus it makes it more transparent by eliminating the trust factor. Information cannot be changed by a single party since it need approval of the different players in the network for the transaction to go through and into the immutable ledger.
Security: It is more secure due to its decentralization so there is not a single vulnerable databased instead there is a network of computers containing the same information. By having just one database it can be easily compromised by a hack or a malicious party wanting to alter data to its favor, this is not the case.
Improved traceability: All records on the blockchain are immutable and irreplaceable, so you can see every single transaction done, you can see when the coin was created, in which block, at what time and date it was moved, to which address, and every single point it touched until its last move. This can be very helpful in many industries since products or coins/tokens and information can be easily and accurately tracked.
Increased efficiency and speed: It is efficient because there is no need of a middleman, by removing this efficiency greatly goes up, a factor that nowadays disrupts whole industries.Transactions are done very fast through the blockchain and everyone has the same information which is updated automatically in the digital ledger.
Reduced cost: The elimination of a middle man greatly reduces cost as there is no third party that is taking a percentage or cut of a transaction justified by work/help providing in facilitating a task.
Transparency is beneficial in building trust in any industry, giving all participants and members access to more information.
Security is paramount to an effective industry. We are seeing the true cost of compromised security with continued and regular data breaches that expose sensitive data and threaten the livelyhood of citizens and institutions. Blockchain increases this security exponentially.
Traceability is extremely beneficial in supply chain verification. If the consumer wants to make sure the product they buy is legitimate, blockchain can deliver the traceability necessary.
By using single record keeping, you increase the speed and reliability of recorded transactions. You reduce paper trail and human error and maintain records on the ledger, of which everyone has access to.
By eliminating middle men and transaction fees, businesses reduce cost. With blockchain, we no longer need to trust third parties to verify transactions or hold funds in escrow. All of this can be done with code.
Transparency:
All nodes need to share the same data as opposed to individual copies. That shared version can only be updated through consensus, which means everyone must agree on it.
Security:
Instead of one person or entity keeping track of and in charge of everything, users are in control of their own data or digital asset while it is secured by an entire network of computers working together because of incentives.
Improved traceability:
By having registration and transparency of all transactions, the entire chain can be monitored more precisely.
Increased efficiency and speed:
A single ledger reduces time and human errors. This is shared among all network participants leading to trust and elimination of third parties.
Reduced cost:
Because you only need to trust in the blockchain network third parties and middlemen are significantly reduced, leading to cost savings on these services.
-
Trust is at an all time low with traditional models where money is transacted. Even charities are under scrutiny because it is impossible to know whether the money has reached its intended destination or purpose. Anything that increase trust is crucial in this day and age. A trustless infrastructure such as what is provided by the block chain means that you do not need to trust because everything is transparent, traceable, immutable and final. Consensus which is highly incentivised ensures transparency
-
Security is critical because so many databases and corporations have been hacked resulting in loss of data and records and IDs. GDPR does not prevent this happening but blockchain. Consensus ensures security in that everyone has to agree a record as true or not. The fact that the computers are decentralised also means it protects against hackers and fraudsters
-
The transactions create and audit trail which means every point of the journey of that transaction can be traced
-
Blockchain does away with manual paper processes, and by having a uniform streamlined infrastructure process, it saves on time and energy
-
If time is money then anything which saves time and manpower saves money too, not just task specific, but also where errors and complaints take place and require investigation in traditional systems. The blockchain takes out a lot of manual and third party involvement thereby saving money
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency:
There is no greater measure of transparency for any industry, if the history of all their transactions as well as their other documentation is recorded and maintained in an unchangeable format on multiple nodes (which is what blockchain does). Considering how near impossible it is to manipulate data that is already on the blockchain, it is a clear reflection of the organizationâs intent to keep things honest and transparent if they are using blockchain.
- Security:
Security of data on a blockchain is achieved by the various characteristics of the blockchain process.
Firstly, agreement between multiple nodes regarding the legitimacy of a transaction. This means that there is oversight of the entry from more than one party â this is an initial check.
Secondly, the entry does not exist by itself â it automatically gets linked to previous transactions and blocks. This feature makes it a nightmare to alter the entry because everything that is linked to it will also have to be changed.
Thirdly, the fact that the blocks that hold the data are stored on multiple geographically distributed nodes means any proposed manipulation has to reach all these nodes â which would require many more people to be subverted/corrupted â than if it was just stored in an organizationâs data base.
In the digitized world that exists today, one can argue that it has become much easier for fraud and other criminal activity to be performed i.e. no physical and risky effort is required to go out and locate the digital âlootâ; all the digital âlootâ is located in one place (a data center); no elaborate or risky break-in required etc. Software and hacking skills are all that are required to compromise a digital asset. With blockchain processes being introduced, the vulnerability that has accompanied internet driven systems is being given checks and measures!
- Improved traceability:
Products and goods that reach the customer through a complex supply chain usually have to be given the benefit of doubt regarding the label they carry e.g. free range, organic, environmentally-friendly, sustainably sourced, sustainably fished etc. An organization can justify its labels effortlessly by having their supply chain on a blockchain because an audit trail immediately becomes available to authenticate itâs source. The freshness of the produce is also traceable by the same mechanism.
As counterfeiting and duplicating is a major threat to many companies producing branded goods (hi-fashion, automobile spares etc), adopting blockchain to enable digital provenance is an ideal way the end user can be assured about the genuineness of the item being purchased
This is especially useful when goods are sourced from developing countries whose governments often collude with their industries in diluting this kind of accountability.
- Increased efficiency and speed:
The blockchain allows transactions across countries and cryptocurrencies that run on blockchain enable payments for such transactions across borders. The universality of the process and the fact that cryptocurrencies that run on it are not owned or controlled by any country makes it ideal for global businesses. Red tape and compliance processes can be kept to a minimum for trading.
Because the number of levels or stages in a transaction are kept to a bare minimum, there is an accompanying speed and efficiency of the process. This of course means intermediaries are eliminated which keeps the process less cluttered. Also, the need for reconciling of accounts between different organizations may not exist anymore as there is only one ledger record to be referred to.
- Reduced cost:
All the efficiencies that result from using the blockchain for financial transactions, would naturally lead to a ruthlessly streamlined process which could as a result eliminate multiple job levels that currently exist in global trading. This would in turn eliminate many jobs and thereby reduce costs of doing business.
For the labour force of the world, this could turn out to be an undesirable consequence of businesses adopting blockchain.
- all transactions are public and visible to all
- it is secured by the incentive network operators are provided by being honest in the record keeping
- all transactions are visible to all who use the network
- since all network operators have access to all public ledgers they have no need to wait for other entities to provide information
- there are no third party individuals who need to compensated for there services
Explain with your own words, why these are the benefits of using a blockchain.
- Transparency: Data cannot be altered or changed without consensus among all parties, which calls for more accuracy and consistency among transactions.
- Security: Data cannot be compromised due to consensus and encryption, which prevents fraud and deters hackers.
- Improved traceability: The ability to track products through a supply chain, verifying authenticity and preventing fraud.
- Increased efficiency and speed: Blockchain ensures trustlessness by reducing third party intermediaries, reducing paperwork and clutter and streamlining transactions/settlements.
- Reduced cost: By trusting in the network you cut out the need for a middleman because your information is stores and encrypted on an immutable, finalized network.
Transactions in bitcoin are not encrypted. The security of the network comes from miners. But you are right about the altering of transactions. No one can do it very easily.
Thatâs alright. People often mix the terms.
In bitcoin blocks are not encrypted, but rather hashed. Donât worry, you will learn more about miners and hashing later on. Either way great answers.
Bitcoin is a slow network. but it enables everyone to use the same network. It removes what we call information silos. This improves efficiency and speed a lot.
Great answers. Instant auditing is one of the crazies part a blockchain can offer. Keep up the good work. 