Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1368

Transparency: Seeing is believing. It fosters trust in the blockchain.

Security: A network of computers via consensus must verify the legitimacy of a transaction, so fraud or shady practices are prevented as it is unlikely that every transaction before or after it can be altered or that the whole network is in collusion.

Improved traceability: The blockchain is a an already verified audit trail, so we are able to easily see movements and transactions.

Increased efficiency and speed: The eloquent beauty of blockchain’s verifiable public ledger does away with many of the processes and third parties previously needed for trust based system.

Reduced cost: Eliminating the need for trust consequently eliminates the need for accountability processes and third party involvement. Blockchain is itself a verifiable public ledger that does not need to be reconciled with any other ledgers.

#1369

The article mentions the below as reasons of specific major benefits of blockchain in real wold applications in business and industry.

Transparency:

Blockchain is a type of distributed ledger, all network participants share the same documentation as opposed to individual copies. That shared version can only be updated through consensus. To change a sungle transaction record would require alteration of all subsequent records and can only be done by entire network collusion.

Enhanced Security:

More secure than other record keeping systems. Transactions must be agreed upon by consensus. Aftet approval a transaction is encrypted and linked to previous transaction. Storage across a network of computers rather than a single server. Allows for protection of sensitive information such as in healthcare or finance or governmental.

Improved traceability:

With blockchain exchanges of goods are recorded every step of the way creating an audit trail that shows full history and origin of a product. This historical transaction data provides a way for verification and authenticity to prevent fraud.

Increased efficiency and speed:

Automation and steamlining of traditional paper heavy or 3rd party intermediary processes on blockchain increases speed abd efficiency. A single Digital ledger is shared across all participants creating environment if trusless-ness and eliminates intermediaries. This increases soeed of clearing and settement.

Reduced cost:

Costs are reduced due to elimination of 3rd parties and less reviewing of documentation to complete a trade. Everyone is permissioned to access a single,immutable version.

#1370

Blockchain improves the trust customers will place in your product/company with blockchain. This is due to the transparency of the process in which can be audited and verified by anyone due to the public nature of the ledger.

The security of this network is ensured by the decentralised nature and requirement that each transaction be verified and compared across this network before approved. This data is then encrypted and linked to the previous transaction in the blockchain.

Due to the Immutable nature of this chain, and the fact that each transaction in the chain is included. This ensures provenance which is a major benefit to both the consumer and company, essentially showing an audit trail which shows all components of an asset, where each of these came from and how they produced. This helps verify authenticity of assets, and prevents fraud.

Veryfying assets digitally helps reduce manual processes, reduces the chance of human error and increases the ability for certain processes to be automated. This also reduces the need for multiple corresponding paper ledgers or “information silos” in multi-national companies by using one global ledger, in this way clearing and settlements can be accomplished much quicker.

These many benefits can reduce the overhead costs of a company by providing the ability to automate certain processes using smart contracts and reducing the need for third party mediation, time will also be saved as there is less need to view documentation to complete a trade as certain entities can be certified.

#1371
  1. Transparency: The system is transparent as all participant has acces to the same database.
  2. Security: All data are confirmed before it is recorded.
  3. Improved traceability: Easy to track all the history, as it is part of database.
  4. Increased efficiency and speed: No nee of middle men increases efficiency. Transaactions are in a speed of internet, far faster then banks calling each other in working times to check their daztabases,…
  5. Reduced cost: No middlemens means no margins for them.
#1372

1, The benefit of transparency on the blockchain is that the individual nodes all see the same info and collectively agree on it.
2, The security benefit on the blockchain is, that everything is verified independently as true. There is no going back or changing information. It is decentralized so the same information is held on many nodes. Can’t be changed.
3. Improved traceability means that everything in the supply chain can be accurately tracked.
4. Increased efficiency and speed means that Blockchain removes the middle man which makes it peer to peer and very fast.
5. Reduced costs: With blockchain, we don’t have to trust, so we don’t need middlemen anymore. The trading process is simplified and we save money.

#1373

Transparency: The use of blockchain technology creates greater transparency by maintaining a global ledger that is updated through consensus.

Security: As stated above the fact the information is stored across a global network/ledger instead of centralized location makes it very, very, difficult to modify or change to data.

Improved traceability: Blockchain technology greatly improves the traceability of goods and services of the supply chain in a trustless manor.

Increased efficiency and speed: Blockchain streamlines or eliminates many of the processes of traditional businesses, increasing speed and efficiency.

Reduced cost: The reduced number of middleman/processes reduces the cost of doing business.

#1374

Transparency
All participants share the same documentation as opposed to an individual copy. It can only be updated through consensus on the network. Data on the blockchain is more accurate, consistent and transparent as all participants have access to the digital record.

Enhanced Security
Transactions must reach consensus before they are recorded. After it is approved it is encrypted and linked to the previous transaction. All information is stored across the network as opposed to a single server making it impossible to hack unless you hack 51% of the users making it extremely difficult. Blockchain has the advantage because it prevents fraud and unauthorized activity.

Improved Traceability
Using a blockchain provides a real time auditing of goods that are recorded from start to finish. This can help verify the authenticity of assets and prevent fraud.

Efficiency and Speed
Traditional paper method is time consuming, prone to human error and often requires third party mediation. Record keeping through a single digital ledger means you don’t have multiple ledger’s and everyone has access to the same info without the need for intermediaries, creating efficiency.

Reduced Cost
With blockchain you don’t need intermediaries to make guarantees. You don’t have to trust your trading partner. Instead you trust the data on the network blockchain. Everyone involved has access to the ledger and alleviates reviewing documentation.

#1375

Transparency – a distributed ledger that requires Consensus to update and doesn’t allow any changes once transactions are agreed upon and which provides an accurate singular document version that is open to anyone to insect for accountability

Security – beginning with the required Consensus happening in real time and which is tamper/change proof and is stored in its entirety on numerous nodes in the network and is open to inspection for accountability, one can trust the security of the data of verified transactions.

Improved Traceability – all individual steps in the particular application process are recorded, verified, and open for inspection/auditing in real time.

Increased Efficiency and Speed – real time transactions that are final and immutable and shared on a network of nodes in a single consensus-verified document reduces middle-men, third-party involvement of reviews/authority, and using an automated system avoids human error or interference, and lastly, streamlines the auditing process.

Reduced Costs – all of the above benefits provide savings in the entire process chain from inception to delivery and subsequent analysis/auditing.

#1376

Transparency: every transaction is visible
Security: agreement of network and encryption of last and next transaction that is stored on many nodes/computers
Improved traceability: it’s easy to see where a product or good has been throughout its supply chain movement
Increased efficiency and speed: paperless to digital allows for higher efficiency so volume and speed of transactions go up exponentially
Reduced cost: cut out the third party and trust the blockchain to perform those functions better, faster, and more trusted

#1377
  1. All transactions are permanent on the ledger, history can be traced by anyone who has access to the blockchain network.
  2. The protocol can act as a third party auditor, any updates to the ledger will be visible to all who have access.
  3. Traceability is made easier because the blockchain is public and all transactions are immutable.
  4. Auditing can be performed automatically and in real time. Everyone with permission has immediate access to a copy of the ledger.
  5. Cost is reduced because the protocol plays the role of a third party auditor so there is no need to hire people to play that role. The streamlined process also reduces cost by being more time efficient.
#1378

  1. All transactions committed on a blockchain are visible to other participants who have a permissioned access. Updates are possible only when consensus is achieved among all the participants. However tin order to change a single transaction record all the subsequent records would need to be amended and would require a collusion of the entire network.

  2. Transactions must be agreed upon before they are recorded on a blockchain. Data is stored across network of computers which makes almost impossible for hackers to compromise the data.

  3. Every transaction can be traced or tracked

  4. Middle man removed and uses nodes to verify transactions

  5. More efficiency and speed = less costs

#1379

Transparency:

All computers within the network have exact same copy of data with can be updated by consensus if everyone agrees on it. It makes it highly transparent.

Security:

Transactions need to be approved and stored across all computers within network with make it very difficult for hackers to compromise sensitive data.

Improved traceability:

Because of possibility to trace information in blockchain right from beginning, it makes it very easy to check it and verify.

Increased efficiency and speed:

Record keeping is performed by single digital ledger and is shared among participants, and everyone has access to this same information and is no need for multiple intermediaries, so the transaction can occur much quicker.

Reduced cost:

No need for third parties or middle man, makes blockchain very cost efficient and business friendly.

#1380

Transparency: The data on blockchain can be updated upon everyone’s agreement that has access to the ledger.

Security: All transactions are linked to the previous. Data is stored across multiple computers, in return is very hard to hack.

Improved traceability: Every thing is recorded on blockchain thus creates a traceable audit trail witch can be traced back to source.

Increased efficiency and speed: Less clutter and easy access and transparency. With access everyone will have the same info. all in all this makes it easier to trust.

Reduced cost: With reducing costs being a huge priority, you can reduce documentation, and human error. All with out sacrificing quality, and trust.

#1381

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

Transparency: transparency is a benefit of using blockchain because it creates a trustless system.

Security: Security is a benefit of blockchain because it is so strong.

Improved traceability: Improved traceability is crucial in so many many aspects of business for obvious reasons and traditionally traceability can be hard to implement.

Increased efficiency and speed: Blockchain brings increased efficiency and speed via its inherent protocol but also by layering so many crucial components into each block.

Reduced cost: All of the above mentioned items and many more will reduce the cost operating.

#1382
  1. Transparency: reduces fraud, simplifies record keeping and other business processes, allows an even playing field since everyone has the same access to the same data.
  2. Security: reduces fraud and makes theft and hacking difficult due to the removal of a single point of failure (replaced by distributed, decentralized security & consensus).
  3. Improved traceability: allows for easy tracking of the origins of all supplies, ingredients, and product components across the globe.
  4. Increased efficiency and speed: transactions are faster when middlemen and third parties are unnecessary.
  5. Reduced cost: self explanatory, but blockchain allows for reduced cost by simplifying transactions, getting rid of the need for middlemen and third parties.
#1383

  1. Transparency:
    When everyone is using a public ledger then it is easy to see all transactions that are going on in the block chain. Altering any traction would require altering previous and subsequent transactions and require way too much time and work.

  2. Security:
    to store it’s data but instead it uses many to store the updated ledger then it is many times harder to hack many computers as opposed to just one which makes it much more secure. Also it is linked. Also because transaction data is linked to the previous data inputed.

  3. Improved traceability:
    The block chain clearly shows the addresses of all transactions from who to whom so transactions are easy to trace.

  4. Increased efficiency and speed:
    as Block chain doesn’t need paperwork or third parties to confirm tractions are processed it becomes much faster than traditional financing methods.

  5. Reduced cost:
    No need to pay for middlemen to confirm tractions and so on. All trust is based on the blockchain which will give you mathematical confirmation.

#1384
  1. Transparency: Everyone has the same record and can tell where transactions came from; and changing data would require the entire network to agree.
  2. Security: Hackers cannot compromise a decentralized network nearly as easily, as data is encrypted and linked to the previous transaction.
  3. Improved traceability: An audit trail means you can trace back any transaction to its origin.
  4. Increased efficiency and speed: One network instead of multiple ledgers mean efficiency, lack of having to reconcile or use intermediaries.
  5. Reduced cost: Don’t need third parties/auditors as it’s a trust-free system, so businesses don’t have to verify transactions or look for fraud.
#1385

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

Transparency: The benefit of transparency on the blockchain is that it allows for all transactions to be traced and tracked by anyone on the network, increasing efficiency of audits and allowing for a decentralized trustless network.

Security: The benefit of security on the blockchain is that it makes it almost impossible for hackers/attacks to manipulate or edit data, further by being a distributed ledger blockchains avoid the problem of having single points of failure thus hardware failure is no longer a detrimental issue.

Improved traceability: The benefit of traceability on the blockchain is that it allows network members to trace the journey of an asset to its origins; verifying its authenticity and thus preventing fraud.

Increased efficiency and speed: The benefit of efficiency and speed on the blockchain is that it saves on time, effort and resources without compromising accuracy.

Reduced cost: The benefit of reduced cost on the blockchain is that it reduces friction of transacting, facilitating more efficient transaction and more profitable trades; increased opportunities.

#1386
  1. Trasparency works on blockchain because of consensus which means that each computer to create a block has to verify the validity of the transaction and the transaction cannot be dismiss once locked.
  2. The security in the blockchain is guaranteed by mathematical calculus or protocol which are unique and linked to the previous one.
  3. The traceability is guaranteed by the audit that verify every transaction to create the block for the chain.
  4. The efficiency and the speed of the processes are guaranteed by the automatically computers calculus.
  5. The costs are reduced because you just have to trust the data on the blockchain and you don’t need third parts to guarantee the process.
#1387

  1. Transparency: - By participants sharing the same documentation as opposed to individual copies, any adjustments must be agreed on by all parties and can be viewed by all participants at any time

  2. Security: - The nature of blockchain technology means it is incredibly difficult to hack, and any manipulation or change any data will be recorded throughout the chain.

  3. Improved traceability: all transactions are viewable on the blockchain ledger history

  4. Increased efficiency and speed: Removing third party intermediaries and sharing one document within participants removes the time and faff with creating/updating paper documentation

  5. Reduced cost: Blockchain would ultimately add value to a business by increasing efficiency and time, and reducing costs of third party intermediaries.

:slight_smile: