Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1328
  1. Enabled by the decentralized network and immutability.
  2. Unauthorized access is much more difficult when network consensus is required.
  3. The provenance available on the blockchain eliminates the need for trust in middlemen thus reducing the opportunity for fraud.
  4. Information available on the blockchain eliminates paper processes and mistakes.
  5. Reduced costs are achieved by the elimination of man middlemen and time consuming processes.
#1329 
Transparency: 

    Blockchain provides visibility and immutability. You cannot deny a transaction has taken place. In a supply chain you cannot hide any of the transactions that occurred and you cannot make up a transaction that did not take place. This makes it very transparent as to what has happened

Security:

    Decentralized systems and multiple verification nodes make security top notch. It is a very difficult system to hack and as well to insert an invalid transaction.

Improved traceability: 

    Immutable supply chain transactions are incredible for the end client to very the validity and source of time and materials.


Increased efficiency and speed: 

    Financial transactions can happen essentially instantly instead of taking days. Financial and supply chain transactions can remove intermediaries which adds costs and time.


Reduced cost: 

    When you can bypass a central authority like a bank you will save incredible amounts of money.
#1330

Transparency:
Because the blockchain is a public ledger , everybody can see the transaction , no one person will see it different to another, therefor everybody will know the transaction is true and trustless, whereas currently where organisations do not use blockchain technology they can say whatever they want and we have to trust their word for it.

Security:
Because the blockchain is global and all transactions built on the blockchain have to be verified by consensus of many seperate nodes and not stored on a single server but on many computers, it make hacking more difficult. For a hacker to change the blockchain they would have to rewrite all transactions on the data from block one.

Improved traceability:
Because blockchain is trustless and in real time, an organisation can track or trace anything back to its origin.

Increased efficiency and speed:
Because the blockchain runs of a single ledger and not multiple ledgers such as in organisation that don’t use a blockchain there is less of a physical paper trail where documents etc would have to be generated and verified. By using the blockchain things can be verified immediately. Currently with organisation that do not use blockchain technology they have to gather together and trust the source of information.

Reduced cost:
Because the blockchain is trustless and in real time with transaction built on block on block and continuously audited, you do not need to use a 3rd party to verify transaction as all the work has already been done.

#1331

Transparency: All participants of blockchain network share the same info and alterations require the consensus of all so that any stored data are consistent, accurate, and transparent.

Security: There is consensus on transactions that occur before they are recorded on blockchain network that is shared across entire network of computers, which hackers would have difficulty to compromise thereby preventing fraud and unauthorized activity.

Improved traceability: All transactional activity throughout supply chain from source/origin to its destination are recorded in consensus and immutable so that any real-time audit is easily accessible, traceable, and verifiable, which also prevents fraud.

Increased efficiency and speed: Data processes transacted on blockchain using a single digital ledger shared/agreed upon by entire network participants make for a faster reliable access and more efficient auditing of info, while avoiding risks of human error and/or need for settlement mediators.

Reduced cost: Business economy of scale as priority is assured since blockchain technology saves time and money by not requiring intermediaries nor trust, and accessible data shared among entire network are easier to review, being uniform and immutable.

#1332

Transparency
All previous data / transactions are public (transparent). The origin can be verified and plausability is guaranteed without having to trust any 3rd party. In globalised complex supply chains and financial systems the worldwide complexity and reliance on trust is removed by trustless transparency and direct transactions without middlemen.

Security
All data is redundantly and decentralised saved, no data is ever deleted. This system of independant decentralised verification and consensus is guaranteeing the security of data integrity and no manipulation. With instant finality, immutuability and verification without 3rd parties, this security now also allows to do business with strangers.

Improved traceability
All historical data is saved, verified, plausible, immutable and accessible at any time. No data is ever deleted. This full transparency leads to improved traceability that can be checked without any middlemen. Compared to todays system relying on trust of many different parties with differen incentives, this new traceability is a quantum leap forward.

Increased efficiency and speed
Replacing many steps of middleman as well as paper heavy processes many steps of data synchronising and interfaces, blockchain technology skyrockets efficiency and speed manifold. One database, one form, one language, one system, unified, transparent and secure.

Reduced costs
Drastically increased efficiency and speed automatically result in reduced costs in many ways. Less employees, less consultants, less workload, less hardware, the benefits are manifold.

#1333

Transparency: everbody has the same copy of the ledger, so the same transactions are seen by all parties

Security: it takes consensus to change things on a ledger

Improved traceability: items using blockchain can have its origins traced from start to finish

Increased efficiency and speed: you have no need of 3rd parties or middle men to conclude a transaction. it’s all clear on the blockchain

Reduced cost:

#1334

1.Transparency -Network of computers share Same copy of database, agree on it.
2. Security -Network of computers record, approve, encrypt and link to previous transaction. Information is stored acoustic a network of computers. This helps in prevention of fraud and unathorised activities.
3. Traceability -Audit trail shows every step of the transaction. Verification of the authenticity is made easier by historical transaction data.
4.Efficiency and speed -Transaction’s are completed faster and more efficiently due to Trust on the system.
5. Costs-Blockchain did away with middle men and third parties. Data on the block chain is trusted.

#1335

[quote=“ivan, post:1, topic:8421”]
Explain with your own words, why these are the benefits of using a blockchain.

Transparency is benefited with blockchain because everyone can see what is happening on the blockchain and reduces the opportunity for parties to behave dishonestly.
Security is beneficial because it reduces the need to have trust in other parties involved on a decentralized blockchain.
Improved traceability is benefited with blockchain as it removes the unknowns about a product such as was it stolen or not, what process it went through during its history so you have full provenance for the product.
Increased efficiency and speed is benefited with blockchain as it reduces human errors and removes the need for third parties and paper heavy processes, resulting in settlements being cleared faster, freeing up capital.
Reduced cost is benefited with blockchain from the above increases in efficency and speed freeing up capital.

#1336

1: the system is transparent because anyone using it can see all past transactions
2: Because there are may individual in the network and it is de centralized it makes it very difficult to hack or modify.
3: all transaction are in the ledger so anyone in the network can see all the information.
4: all activity is kept on the same ledger and is not prone to human error> all is recorded in the same place at the same time.
5:No need for middle men to guarantee the transactions as every in formation is available and recorded in the blockchain

#1337

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

Transparency:

Security:

Improved traceability:

Increased efficiency and speed:

Reduced cost:

  1. The fact that blockchain is a public ledger and available to all nodes (computers) across the entire network makes it transparent. Because every local ledger shares the same data transaction it would be very difficult or impossible to change any aspect of a transaction unless every single node is in agreement to do so. This makes the information transparent, accurate, trustworthy and reliable as opposed to a centralised ledger.

  2. To create a block on the chain it must go through a system of verification and authorisation collectively by all nodes on the network. This is done through a process of encryption and linking the current chain to the previous chain. The information is stored on many servers in a sense ( all nodes are like a server) as opposed to one central place it makes it very difficult for it to be compromised, therefore this makes blockchain a highly secure environment and a great benefit.

  3. making a record of goods and/or services on a blockchain makes them easily traceable from start to finish as a digital footprint trail is left. This is a great benefit to have, it reduces fraud and leaves confidence of quality.

  4. speed and efficiency is increased through blockchain by way of automating processes, this reduces processing time making a business more efficient and productive, it could also reduce cost by possibly eliminating 3rd parties. one entry is shared amongst many eliminating some auditing or simplifying that process. Because every party involved has the same info, trust and confidence is improved.

  5. Cost is reduced because time and trust is improved. Trust is placed on the data and not on any one individual or organisation (its not important)

#1338

Transparency:
Because is a distributed ledger, all the network share the same documentation. Everyone must agree .

Security:
The transaction must me agree before is recorded. Is encrypted , stored across the network not only in a single server.

Improved traceability:
Can be trace from its origin . This historical transaction , the data can help us verify that authenticity and prevent fraud.

**Increased efficiency and speed:
No third-party mediation. Everyone has access to the same information, so it is more quick and easier.
**

*Reduced cost:
No third-party . They all have a single immutable version.
*

#1339
  1. Transparency is a benefit because it allows Provenance, Accountability, and Veracity.
  2. Security is a benefit because the Data is immutable, distributed across the web, and access can be cryptographically controlled.
  3. Improved Traceability is a benefit because “Chain of Custody” is critical in many industries for quality control, analytics, origination.
  4. Efficiency and speed are increased because the need for “Third parties”, Notaries, and Accountants is eliminated, thus eliminating errors, duplication of work, regulatory burdens.
    5.Reduced Cost is the result of all of the above benefits.
#1340

  1. On a blockchain all network participants share the same documentation and can only be changed if everyone agrees on it through consensus.

  2. Information is stored across a network of computers instead of on a single server, makes it very difficult for hackers to compromise the transaction data.
    After a transaction is approved, it is encrypted and linked to the previous transaction.

  3. When exchanges of goods are recorded on a blockchain, you end up with an audit trail that shows where an asset came from and every stop it made on its journey. This historical transaction data can help to verify the authenticity of assets and prevent fraud.

  4. By streamlining and automating these processes with blockchain, transactions can be completed faster and more efficiently.

  5. With blockchain, you don’t need as many third parties or middlemen to make guarantees because it doesn’t matter if you can trust your trading partner. Instead, you just have to trust the data on the blockchain.

#1341

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

Transparency:
-Same data is available to all participants.
-Update data must agreed upon ALL participants

Security:
-After a transaction is approved, it is encrypted.
-transaction must agreed upon before they are recorded

Improved traceability:
-When exchanges of goods are recorded on a blockchain, you end up with an audit trail that shows where an asset came from and every stop it made on its journey
-This historical transaction data can help to verify the authenticity of assets and prevent fraud

Increased efficiency and speed:

  • 1 single digital ledger removes clutter (paper ledger)
  • clearing and settlement can occur much quicker

Reduced cost:
-you don’t need as many third parties or middlemen to make guarantees because it doesn’t matter if you can trust your trading partner

#1342

A: Transparency - All transactions on the bitcoin blockchain are visible on the public ledger. It doesn’t get more transparent than that.
A: Security - The de-centralized quality of the bitcoin network spreads out security risk as opposed to having a central point of failure as exists in centralized networks.
A: Improved traceability - All transactions are traceable by anybody as the ledger is public. Wallet addresses are known but personal identity of the senders & receivers are not (necessarily).
A: Increased efficiency and speed - Eliminating middle men (that exist in traditional banking) flattens the bureaucracy and speeds up transactions. Transactions are peer to peer and don’t have to be overseen by multiple gatekeepers or middle men.
A: Reduced cost - The elimination of middle men and centralized infrastructure reduces cost because no one has to maintain bank branches or employ tellers, managers, staff etc. The only infrastructure that exists (nodes in the network) is paid for by mining rewards within the bitcoin code and is maintained freely by others.

#1343

Transparency:
Benefits the blockchain as all parties involved have access to the distributed ledger and no one entity can alter the ledger without all who have permission access being in agreement.
Security:
All transactions must be agreed upon before they can be recorded. Transaction are also distributed amongst the network making it extremely difficult for a hacker to compromise the data.
Improved traceability:
Through provenance there is the ability to trace back to the origin all parts of the transaction.
Increased efficiency and speed:
Through a single digital ledger that is shared among all participants allows for faster transaction speeds as all is updated in real time this eliminates the need for 3rd party involvement.
Reduced cost:
No 3rd parties need to be involved as everyone has access to the same ledger and can interact without intermediaries that require high fees.

#1344

Very good and detailed answers. Keep up the great work. :muscle:

#1345

In a way. Bitcoin still has to scale somehow. You will learn more about this eventually. :slight_smile:

#1346

In bitcoin we don’t encrypt blocks, we hash the them. :slight_smile:

#1347

Very detailed answers. I liked your security explanation. Keep up the great work. :smiley: