Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1408

Transparency- Since there is a community of nodes, or a public ledger, all transactions are seen and verified. To alter a transaction, there must be consensus among all nodes.

Security- All transactions that are recorded are encrypted and linked to a previous transaction. Hackers are unable to alter blocks because they are linked and on a public ledger

Traceability- You can trace all aspects of a product. It is completely transparent and trust less.

Efficiency and speed- Everything is on one public ledger, being performed by computers. Speed and efficiency of such is much higher than paper.

Reduced cost- No need for middle men. Trust of data all that is required.

#1409

  1. Transparency
    The blockchain is a publicly viewable distributed ledger.
    All nodes in the network have a copy of the ledger.
    The ledger contains transactions which are immutable records, that are only accepted via a consensus algorithm on the network.
    All of this results in accurate, consistent and transparent data.

  2. Security
    All nodes on the network store a copy of the data - this removes the single point of failure and attack.
    A transaction must be agreed upon by multiple node before it is accepted. Once the transaction is accepted, it is added, encrypted and linked to the previous transaction.
    These measures lead to more secure and validated data.

  3. Improved traceability
    If exchanges of goods are recorded on a blockchain this will lead to a verifiable audit trail and authenticity of assets.

  4. Increased efficiency and speed
    All accounting, transacting and settlements are automated on a single ledger. So increased efficiency and speed

  5. Reduced costs
    Because the data on the blobkchain is immutable, auditable and has permissioned access - it is trustless. Therefore you can rely on the math instead of many 3rd parties to ensure this.

#1410

Transparency:
All network participants share the same documentation

Security:
transactions must be agreed upon before they are recorded.

Improved traceability:
Every part of the supply chan can be tracked and audited.

Increased efficiency and speed:
automating processes with blockchain record-keeping is performed using a single digital ledger that is shared among participants

Reduced cost:
you don’t need as many third parties or middlemen

#1411

  1. Transparency : All participants share the same version of the blockchain. Any update requires common consensus. Thus, it is not possible to retroactively change any transaction.

  2. Security : Before entering the blockchain, any transaction must be agreed upon beforehand and reach consensus, which makes fraudulent changes to the blockchain impossible.

  3. Improved traceability : Any step in a blockchain is traceable. For example when you produce products with a long value chain and use a blockchain, you can always figure out the origin of each part of the product. This makes audit easy and fraud practically impossible.

  4. Increased efficiency and speed : By having a single distributed ledger, there is no more need to audit and reconcile (many) different individual ledgers. This reduces significantly the requirement for middlemen, paperwork, and audit efforts, and this also eases the settlement process in general.

  5. Reduced cost : Thanks to the removed trust of a blockchain, there is less need for any kind of middlemen and third parties acting as guarantors and alike. Less documentation will need to be reviewed. All in all, this will significantly reduce the related cost.

#1412

Transparency:
Blockchain is a public distributed ledger. Public availability is one part of transparency. Changes are made through consensus of all participants. Once the consensus is reached, it is nearly impossible to change or delete the entries of a blockchain. Consensus and immutability adds another part for transparency.

Security:
Transactions are encrypted and linked to previous blockchain data. This makes it very easy to prove and therefore secure. In opposite to data located on a server, the blockchain data is distributed and therefore very redundant which contributes to more beeing secure.

Improved traceability:
Access to the public blockchain data from every participant makes it easy for analytical tools to ascess the historical data. This also adds more trust, since everybody has the same datasets.

Increased efficiency and speed:
In contrast to data which is stored in different places, blochchain data is not seperated, therefore makes it faster to access. Already validated information on the blockchain makes slow paper exchange obsolete. In addition blockchain network avoids many intermediaries, which adds also on speed.

Reduced cost:
Time is money. All agruments for Increased efficiency and speed applies also for reduction of costs such as paperfree transactions and less (costly) midleman and third parties. Increased security and less failures should also contribute to the reduction of costs.

#1413

  1. Transparency: There’s more transparency because the Data in Blockchain is crystal clear, accurate and consistent , available to to all its participants who have access to it and this can’t be change.

  2. Security: Simple , security is a natural benefit from Blockchain because the information is stored across a network of computers instead of a single server, making it super hard for hackers or for individuals to corrupt it, preventing fraud , manipulation or simply unauthorized activity.

  3. Improved traceability: The traceability is improved 100% because Blockchain records and audit all transactions at all times, making a simple exchange of goods traceable to its origin , this way authenticity can be verify preventing any type of fraud.

  4. Increased efficiency and speed: The automation and streaming in trading using Blockchain avoids human error, time wasting and 3rd parties mediation , and due to this it increase efficiency and speed, because Blockchain use a single digital ledger that all participants with access share with each other, making an easier to trust process without intermediaries.

  5. Reduced cost: This is a must for all companies, using Blockchain will reduced all operational costs because they will get rid of many 3rd parties and middle individual or companies.

#1414

Transparency: Every participant on the network has access to the data, which BTW is not able to be manipulated without mass scale collusion by every participant of the network. So everyone know exactly what everyone else has submitted to the blockchain/database.

Security: This goes back to immutability and the very large attack area. No single point of attack, which equates to no single point of failure and therefore security is not even something one would need to worry about with a robust blockchain. One would have to collude on a massive scale to be able to penetrate the inherent security of a robust blockchain.

Improved Traceability: Blockchains by default are a database that can only be added to, and the information added to the blockchain/database is available to all participants with access to the network. So if the example would be tracing a food supply chain, then as long as each step is logged into the blockchain accurately. Everyone with access to the blockchain can see all the data supplied which in this case would likely be times, dates, locations, supplier info, etc.

increased efficiency and speed: Blockchain eliminates the needs for middlemen such as auditors, accountants, etc. Many steps can be removed becasue trust is no longer an issue. This increases efficiency and speed which tend to be one in the same.

Reduced cost: less people to pay (auditors, accountants, etc), decreased turn around times which means more product or data or whatever your business is can be done in a given amount of time. more profits always reduces costs by increasing the profit to cost ratio.

#1415

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

  1. Transparency:
    This is a huge benefit because all the transactiondata is there to see for all parties. All this data is correct and verrified with consensus. All transaction can be considered trustworthy because of consensus. The database can’t be manipulated and therefore ‘‘the blockchain’’ can be trusted.
  2. Security:
    Sequirity is achieved by solving hashpuzzles (proof of work). When a transaction is valid all its information + the information from the previous block will get hashed together and creates a new block. Manipulating data is impossible because all blocks refer to the hash from the previous block. To manipulate the chain you need to manipulate all previous blocks as well on all the copies from the ledger.
  3. Improved traceability:
    This is great for the supply chain. Mapping plays a big role in here to track everything want and need to know about what happened with your product.
  4. Increased efficiency and speed:
    Because of automatation, middlemen are no longer needed and this saves time because simply errors can no longer be made.
  5. Reduced cost:
    I think its the same as answer 4. Middlemen are no longer needed and the system can be trusted and automated. I also like to add that a network run by many nodes, provide more hashing power then just simply one server/network who has to run everything itself. This would cost you so so much for the hardware. On this part the costs will be reduced, because the network can be held up to date with older hardware and the more people come, the more combined power there is.
#1416

Transparency: documentation shared by all participants, changes only possible on consensus (which is not really a practical thing to do)

Security: Data is stored on a network, which supports the protection of rather sensitive content from being hacked or otherwise accessed by third parties who should not have access

Improved traceability: every step in for example a complex supply-chain can be checked in detail, there are no blind spots for false information based on trust, but all parties involved can trust the inherent transparency provided by blockchain

Increased efficiency and speed: only one digital ledger needed, therefore no time lost by possible faults by third or more parties involved with lots of bureaucracy (like conventional banking-system when it comes to international payments in particular)but instant verification possible by blockchain-transaction

Reduced cost: no adding-up transaction-fees and restrictions, like in conventional banking-system

#1417

Transparency: Every transaction is open for everyone to be looked at. Each computer network has an alive copy of the one and only blockchain we want to use. There is only one ethereum blockchain, one bitcoin blockchain etc.

Security: Every new transaction added to the blockchain adds more security. It quite easy to hack one computer with data on it. But It’s basically impossible to hack thousands of computer all over the world, simultaneously. For a transaction to be altered in the whole ledger, there need to be a consensus. Every node holder have to vote on verifying if that transaction is true.

Improved traceability: Every transaction leaves “breadcrumbs” and they can all be traced back to the source. Including interactions and destination.

Increased efficiency and speed: every user have access to the same digital information (ledger) and there is no need to print anything.

Reduced cost: No need for middlemen, blockchain relies on math and not on human trust. Don’t have to invest on training staff for new software or programs. The blockchain is always the same, immutable.

#1418
  1. Transparent because you can see your transaction on the ledger.
  2. Secure because it is trustless.
    3.Traceable because it is not removable fron the ledger.
    4.Efficient and fast action on the ledger.
    5.Cost is much less then it is on centralized entities.
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#1419

  1. Since everyone can see the transaction (public distribute ledger), and to aprove it is required consensus in network, therefore is transparent.

  2. The network is trustless and to verify if a new chain is valid, relying on math and physical principles agreed by a decentralized database of computers. This method of validation increase security overtime with new blocks add to the chain, increasing the difficulty of hacking it.

  3. Through method of chain is easy to trace a transaction, as all changes over time are recorded in network where the information cannot be deleted or modified, so it is easily accessible to view the history of a particular transaction

  4. By removing third parties in the middle and by automating the processes with blockchain, in relation to the use of paper and human errors, an increased efficiency and speed is reached.

  5. When trust is only achieved in data agreement itself, we don’t need intermediaries to guarantee trust in the transaction, so it reduce costs of time and save money

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#1420

Transparency in blockchain is successful due to the ledger being shared across the network. The information can only be updated when participants agree and come to consensus.

Since the blockchain ledger is shared among computers on the network, there isn’t a single access point where it can be breached. This improves the security of the network as the blocks created have a copy of the previous blocks within it and cannot be changed without the majority of the nodes agreeing to the new adjustments.

Keeping track of the points of origin on the blockchain allows companies to know where their supplies/ingredients come from. This provides great traceability and transparency to all doing business.

Being able to use the same database for the blockchain of our choice allows us to all access the information that is made public and not have to go through 3rd party entities. This allows the system to be trustless and speed up the process between participants. Also, not relying on human input drastically reduces the errors that take place when using old-school methods.

Since everyone has access to the ledger and can see the transparency, there is no need to hire unbiased companies to review the data. We trust what is on the blockchain and can move forward with business in a much timelier manner.

#1421

A summary of the benefits of using a blockchain

  1. Transparency: a blockchain is a decentralised database where all network participants (including miners and validators) have an exact replica of it, and whereby all transactions are visible at each node (or by each participant); the removal of a centralised authority and the fact that data can only be added, once verified by Consensus of the entire network, means that the system is trustless, that transactions are final (or immutable) once they are confirmed and that informational silos (Web 2.0) are replaced by open source database that anyone can access for the purposes of viewing transaction history, at any point of the network. Lastly, in order to change single transaction all subsequent records would need to be changes, which is an unrealistic attempt at collusion that would never be anticipated on such a mass scale.

  2. Security: because of the following features, blockchains are far more secure than historical centralised databases: consenus mechanisms whereby all network participants must agree before each transaction is logged and are highly financially incentivised to verify data accurately; decentralisation which removes the need for “trust” in any third party to store sensitive or personal data in “silos”; a very specific data structure combined with cryptographic hashing functions that ensures that each block of data is irrevocably linked to the previous block (using complex mathematical formulae); high availability (meaning that the network is always-on 24/7/365 to verify each transaction or event); immutability and finality where by transactions can only be added but never taken away, along with the aforementioned transparency described above; a distributed data set whereby there is no single point of failure; and lastly digital provenance which improves traceability and therefore accountability, as will be touched on next.

  3. Improved traceability: blockchain enables digital provenance (i.e. right back to the earliest known origin of things) because data can only be added to the public ledger and never removed, because the network is decentralised and therefore all data on the public ledger is distributed in a way that is identical at each individual node (or component ledger) of the network. This means that in the case of both transactions and supply chains (among other applications), senders and recipients are clearly logged by wide consensus-based verification, recipients and/or organisations along the chain will all leave a verifiable audit trail with such diverse data as transaction sizes, previous owners, product types, authenticity of products, food ingredients, clothing materials, country/ factory of origin, etc. This will help prevent fraud, further remove the need for “trust” and remove the inefficiencies of manual verification.

  4. Increased efficiency and speed: due to the use of digital, automated and streamlined processes - in place of traditionally manual ones that are both slow and prone to human error - and the removal of reconciliation between multiple databases (as regards transactions, products, senders / recipients, and all clearance and settlements) - a blockchain is able to increase efficiency and speed very effectively. This is also aided by the removal of third parties that need to be “trusted” and the breaking down of informational silos, such that different parts of the network and network participants are instead enable to seamlessly interact. Lastly blockchain’s enable high availability and 24/7/365 infrastructure meaning that the system network “timeless” and always available

  5. Reduced cost: blockchain is vastly capable of reducing costs for individuals and businesses, due to the disintermediation of costly third-party middlemen and their fees, the removal of the need for costly legal documentation and guarantees since the system is “trustless” and immutable (operating by wide consensus and verification) enabling even strangers to safely transact and do business, and along with this comes the increased efficiencies from saving money… After all, they save that “time is money” or - in the words of Mike Maloney - it is “a tool for trading your time” or a “container for storing your economic energy until you’re ready to deploy it” :slight_smile:

#1422

Transparency - all network participants share the transacted ledger allowing anyone to introspect the history of transactions for any participant.

Security - the blockchain utilizes public and private keys in transactions to protect participants. Transactions once completed are added to the blockchain where they are final, immutable. Completed transactions are reflected on all nodes that carry the complete immutable history of the block chain.

Improved Traceability - property of immutable history of the blockchain allows for clear accoutability of transactions through time.

Increased Efficiency - Not relying on human paper trails, transactions are computed via code on a distributed network of nodes.

Reduced Cost - No need for third party verification, central authority. No reliance on human paper accounting.

#1423

Transparency: All information is agreed and all parties are in consensus since there is only one distributed ledger which each party will have access to. Thus the effort to change even one copy becomes near impossible as the you will have to intercept the whole network to change any information.

Security: This is enhanced due to each transaction being linked and encrypted to the previous transaction. Since this is stored over a networks of computers as appose to a single server this makes it very hard for data to be compromised and a perfect vehicle to store sensitive data securely.

Improved traceability: Since there is trail of transactions recorded on the blockchain, this can be traced back quite easily with much less effort since it will be accurately verified.

Increased efficiency and speed: The network becomes extremely efficient and fast when everyone is working from the same distributed trust-less ledger as you can rely that the information is the same. There is no need for any intermediaries to check and verify things and this smooth lines the whole process.

Reduced costs: With the absence of any middle men or intermediaries and the increase of efficiency time is saved and therefore naturally costs are reduced. There is also less time wasted to check things as well.

#1424
  1. Transaction records are shared in the network and accessible to anyone anytime.
  2. Since information is encrypted and stored across a network it is very difficult to hack.
  3. Tracing records is easy because all transaction history is chained.
  4. The latest record is shared in the network, and transaction immediately happen.
  5. Blockchain doesn’t require paperwork and guarantees by third parties.
#1425

Transparency:

Blockchain is a type of distributed ledger. This means that all the participants SHARE THE SAME LEDGER. The only way to update this shared same ledger is via consensus of ALL the participants (the nodes). To change or fake a transaction would require collusion amongst all the nodes. This requirement makes blockchain more transparent.

Security:

Before a transaction is recorded, it must be agreed upon (consensus). When approved, the transaction is encrypted and linked to the preceding. Additionally, the blockchain is decentralized, meaning that it relies on a network of computers, a hacker would need to attack all the servers on the network simultaneously.

Improved traceability:

On the blockchain, assets can be traced from creation to conclusion, and every adjustment made to it can be recorded. This is good for authenticity—I recently heard of Italy being interested in a blockchain of this sort to keep track of the made in Italy brand.

Increased efficiency and speed:

With blockchain, transactions occur faster, and are more efficient, without a loss of fidelity. These benefits are brought about by foregoing delays in approvals, error corrections, and the need for oversight. The whole transaction can be public and easy to follow and accept.

Reduced cost:

Blockchain removes middle men, decreases the need for third parties, and increases efficiency, greatly reducing costs, increasing profitability.

#1426

Exactly. That means that anyone can check and verify the data on the blockchain. No need for trust. Just verify. :slight_smile:

#1427

Great answers! :muscle: :muscle: