Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1608

By using the Blockchain a transaction will be verified by consensus of nodes of the blockchain. This will make the information that stands in the transaction reliable and more secure because it is audited by many different identitys. Also the blockchain is an open source system that gives insights in the history of the transactions so it’s open to anyone that wants to look into it. This also makes the traceability of an transaction visible, sending dishonest transactions is not possible and laundering money will also be impossible because everything is traceable.
By decentralizing the network the network gets more secure because the more nodes will work at the net network the harder it will be to get any damage done to the network.

Also it’s way easier to track down articles in the supply chain, because everything gets documented in the blockchain it’s always possible to track every step of the process. This can also be done with assets.

And this all can be done in way less time and way less costs than it is now, because of the ledger technology everything will be added to the blockchain and all the information is trustable and combined into the blockchain. you don’t have to go to inermediates or find all the documentation about a specific transaction.

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#1609

Oh sorry, you also mentioned VISA and old school transaction in this case blockchain does surpass them in speed :slight_smile:
A pemissioned blockchain without PoW can actually do achieve quite high throughput, rivaling some traditional databases though :slight_smile: I have been playing with Tendermint in the past and it is quite fast (though admittedly not as fast as traditional DB)

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#1610

Very well written and quite accurate! :smiley: however I do have a few comments:

Since this is a P2P network this means that data is duplicated by every node in the network :slight_smile:

The Bitcoin blockchain is permissionless, which means everyone is authorized to view and store this information. The wonderful part is that you don’t need to trust the person on the other side of the wire. :slight_smile:

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#1611

Transparency: All records and transactions are visible for anyone on the public blockchain.
Security: Records are spread on millions of computers, hackers can not hack all of them at ones easily.
Improved traceability: It has better traceability than paper records.
Increased efficiency and speed: Since blockchain is a giant spread sheet, it is much faster and much more accurately readable than traditional records.
Reduced cost: Since all records and transaction data electronic, the processing will cost less.

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#1612

Reading Assignment: Benefits of the Blockchain Technology

  1. Transparency: Keeps everyone honest. If there’s a public agreed upon shared record of who has what and who did what, no one is incentivized to cheat, steal or make bad decisions. For example, if our tax dollars were on a blockchain ledger, we’d be able to see where our money was spent and for what and by who. People would be held accountable and most likely make better decisions with tax payer money.
  2. Security: Blockchain is inherently decentralized, which makes it harder for individuals to compromise, manipulate or steal valuable data. There is no one attack vector to access or change the data. 51% of the network would need to be controlled in order to compromise network security. For example, big data leaks wouldn’t be happening if they’re recorded and encrypted on a blockchain.
  3. Improved Traceability: Rather than running individual information silos like Microsoft Azure or AWS, you’d have a global network of secure information stored on a blockchain. Information is digital inputted and encrypted and once all blockchains are talking with one another (interoperability) than any info can be publicly pulled and rectified. No need for auditing as the information is pre-audited before recorded. Less 3rd parties means more efficiencies and trust.
  4. Increased Efficiency and Speed: Blockchain is inherently digital and digital is faster than analog systems using more paperwork and human input which creates slower networks and more room for error. Also, network’s speed and efficiency increases when everyone is using the same network and data.
  5. Reduced Cost: Less middlemen = less costs. The finality of blockchains also creates a system where people think twice before making a transaction because there’s no reverse-ability. This creates purpose driven incentivized structures for people to act in the less costly manner.
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#1613

Transparency:
All users have access to the same blockchain information, and that information had to be confirmed by consensus to be added as legitimate data.

Security:
All data on the blockchain has to confirmed before being added, then encrypted, which allows for security against hackers trying to fudge data, which a singular central system is susceptible to.

Improved traceability:
Data stored on a blockchain can be traced and its trail audited which greatly helps to verify content authenticity.

Increased efficiency and speed:
Using blockchain technology helps reduce the paper clutter, provides quick reconciliation, and safeguards against data loss. It also reduces the need for intermediate points of transfer.

Reduced cost:
Since trust is native built-in to a blockchain network, the need for trusted middle men between 2 parties is nil. A great example of this would be a country-to-country global financial transaction without the need of an institution, thus forgoing any institutional fees…

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#1614
  1. Transparency: Blockchain is a public ledger
  2. Security: Decentralized network that verifies across nodes.
  3. Improved traceability: Transactions cannot be changed or erased.
  4. Increased efficiency and speed: Eliminates the middle man for verification.
  5. Reduced cost: Eliminates much processing and verification energy.
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#1615

Appreciate the feedback Ales!

With regards to your comments; I should have phrased it a bit better.
Hopefully the below explanations are better, please let me know if my understanding is still incorrect.

“without the need to duplicate the actual information itself”
Even though every single node contains a copy of the entire blockchain (duplicates), the actual information itself is not duplicated, meaning there will always be only one valid instance of the information, since blockchain is a value store, preventing duplication of the actual information itself.
In short: information is not duplicated, else one can make copies of their BTC.

“by authorized entities”
In order to sign and publish messages, you need to have a private key, since traceability would be somewhat meaningless if the sender cannot be identified. Without a valid private key, you will not be authorized to (for example) send BTC, to someone else. In this regard, you need to be authorized. (Bad choice of words from my side)

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#1616

Blockchain has so many benefits like Transparency . Blockchain a an open distributed ledger where All the network participants share the same documentation then having an individual separate copy and any alteration / changes / upgrade can only happen through consensus ( require everybody’s in the network concern ) . And , to do any single change in the transaction record , you will have to change all the subsequent record and thus disturbing the entire network chain . Thus due to this unique property of blockchain , it gives us transparency , accuracy and consistency .
Blockchain also gives us better security of our transaction due to its unique property of consensus . Once any transaction is verified . it will be encrpted and stored accross network computers rather then a single server . so it is very difficult the hack multiple endpoints .
You can also track you transactions whether in terms of any financial transactions or any good which involves long suppy chain . It is very difficult to trace the product and its origin with the traditional methods while hiring a mediator in between specially when the supply chain is big . But when these eveything comes in to the blockchain and all the transactions will be recorded in the blockchain , you will be able to trace the entire journey including origin and intermediate stops in fraction of second with 100% accuracy and doesnot require any mediator and thus save lot of cost on that . This whole process will also increase the efficiency and speed of work done .

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#1617

Greater TRANSPARENCY is a major benefit to using blockchain network over traditional networks, in that it provides all network participants to share the same data. This data can only be altered thru consensus. No one individual has the power or control over the data, thus allowing the data to more consistent, accurate, and transparent without the worry of trusting the other parties involved.

ENHANCED SECURITY is another great benefit of blockchain. Data stored on the blockchain must first be agreed upon before it is recored, encrypted and then linked to the previous transaction. Instead of being on single server the information data is disrupted among a network of computers and the data can not be altered unless agreed upon thru consensus.

IMPROVED TRACEABILITY is a valuable benefit of blockchain in that once goods are recorded on the blockchain it leaves an audit train from beginning to end that no one can altered.

INCREASED EFFICIENCY AND SPEED is provided by eliminating 3rd party mediation, thus all data is automated and streamlined, allowing for faster, more efficient processing that no longer need to be reconciled on multiple ledgers or trusted by multiple intermediaries.

REDUCED COST is the one of the biggest benefits to blockchain because you no longer need to trust who you are doing business with you, thus eliminating all third parties and middlemen. This generates reduced cost and worry free business deals.

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#1618

Thank you Alko, for the reminder.

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#1619

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

Transparency: the blockchain is open to every user, everyone can see all transactions ever made

security: multiple nodes have to verify a transaction, blocks cant be altered once a transaction is verifyd, funds send are registered and cant be taken back

Improved traceability: it is all the above actually

Increased efficiency and speed: it is p2p so no unnesisary middle man, it is secure so you dont have to wonder if or how, and it is instant transaction of funds and data 24-7-365

Reduced cost: no tree has to be cut to craft a paper ledger to script all transactions, no middle man, no banks, no goverment , you can cancel those jobs lol

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#1620

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

Transparency:
The blockchain database is accessible to everybody, it is completely transparent

Security:
Each transaction must meet the consensus of the network which makes it impossible to alter or modify without all network noticing it, therefore, it is super secure. Also, it relies on a web of computer instead of one central database infrastructure, so the risk of hardware failure is almost inexistent.

Improved traceability:

On a blockchain, a transaction recorded cannot be erased, it is permanent and immutable, also it allows for the complete audit of all transactions since the beginning of the blockchain. No information is never hidden.

Increased efficiency and speed:

Blockchain runs 24/7/365 and runs on a block of several minutes, making it fast and available at all time, because there is no intermediary, all transaction can be recorded and verified much faster.

Reduced cost:

Because there is no central administration, there is no manipulation of the transaction fee, all the transaction cost and fee are shared among the participant of the network, and network operators get a reward on solving the transactions.

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#1621

Transparency: There is no book keeping when using blockchain. Companies do business with each other share a single database which is the blockchain, so the information is consistent throughout.

Security: Information are being stored across the globe so it is nearly impossible for hackers to bring down all those computers.

Improved traceability: Since there is only one database being used, companies can look at each step that has happened and know exactly what are being put into the transaction.

Increased efficiency and speed: By minimizing third parties and unnecessary steps, transactions can be done much faster.

Reduced cost: Again, by minimizing third parties and other physical labor, companies do not have to pay the wages or commissions associated with those steps, thus decreasing the cost.

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#1622

Transparency:
Documentation is shared by all parties and is updated by consensus it is transparent in the blockchain

Security:
where the information stored is encrypted and linked to previous transactions meaning they cannot be infiltrated and changed

mproved traceability:
transactions can be viewed and tracked on the blockchain,

Increased efficiency and speed:
it has an automated proccess which can be completed faster using s single
digital ledger less clutter and everyone can see the same information

Reduced cost:
meaning no middle man and trusting the data means less time reviewing and it is unmutable.

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#1623

Transparency

As stated in the article, Blockchain is a type of distributed ledger wherein all network participants share the same documentations of transactions being entered only through consensus. And before you can even enter transaction, network participants should all agree on it thus making it more accurate and reliable unlike any other paper-heavy ledgers they say. Altering it will be troublesome because you would probably go through all the subsequent records and would probably give you a headache to go through all that just to reverse a single transaction. It also gives all participants who has been given permission access to all the record of transactions on the database anytime anywhere.

Security

Blockchain has an enhanced security than any other record-keeping systems ever created because if a transaction is confirmed it will be encrypted and linked to a previous transaction and will be kept to a network of computers instead of a single server thus making it hard for a hacker to compromise transaction data. A transaction must be agreed upon by all the network participants before it can be approved making it more reliable too.

Improved traceability

Blockchain has improved traceability, too. For an instance, if you want to make sure you are receiving good products and you want to check the origin if it, Blockchain can provide an audit trail that shows where the product comes from and every stop it made in its journey. These records help in identifying the authenticity of the assets and prevents fraud too.

Increased efficiency and speed

Trading becomes easier and much faster than paper - heavy processes in blockchain. Than going through a lot of ledgers, in Blockchain with just a click of a finger you can access records without wasting time going through written records and it reduces clutter too.

Reduced cost

Blockchain reduces the cost of having middlemen or third parties to make guarantees in trades because you just have to trust the data in it. They just need the permission to access the records on an immutable version of it and it doesn’t need much documentation too.

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#1624

  1. The benefit of having transparency in a blockchain is because, since all netowrk participants share the same documentation through consensus, it is more efficient to have the verification of other ledger users to permit changes.

  2. Security is escential due to the fact that all information is stored across all network of computers, which makes it difficult and uncessary for people to hack the system.

  3. Improved traceability is used to show the origin and history of the product a person has ordered.

  4. Increased efficiency and speed is crucial and beneficial in a way that instead of trading stuff made from documents made from paper that may have erros in it, is way easier to stream and automating the processes of the transactions, since it’s also shared with other users, which makes trust on each other.

  5. With the benefit of reduced costs, it wouldn’t need a third party or something of the sort, because you will have problems with trust, once again. So, it’s more efficient in the blockchain platform since it isn’t necessary to review documents, permissions etc. because again, everyone has the ability to see and verify each others information.

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#1625

Transparency. Transaction histories are shared and can only be updated through consensus, therefore the data on a blockchain is more accurate, consistent, and transparent compared to a paper- and people-heavy process.

Enhanced Security. Blockchain is a record-keeping system. After a transaction is approved it is encrypted and linked to the previous transaction. Because it is stored across a network of computers instead of a single server it makes hacking very difficult.

Improved Traceability. Complex supply chains make it difficult to trace an item back to its source but when exchange of goods is recorded on a blockchain an audit trail is generated for each asset and every stop it made on its journey thereby verifying its authenticity and preventing fraud.

Increased Efficiency and Speed. Paper-heavy processes are time-consuming, prone to human error and often require 3rd party mediation. Blockchain streamlines and automates these processes and record keeping is performed using a single digital ledger shared among participants allowing for faster clearing and settlement.

Reduced Costs. No need to pay for 3rd party middlemen as there is no need to trust your trading partner, just the data on the blockchain.

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#1626

Looks good! I think its much better phrasing. Yes in the context of duplicates and copies I think using the phrase one instance is the best choice. Since it does in a way work as a single entity :slight_smile:

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#1627

Transparency:
Blockchain has all transactions since start of bitcoin which is visible to everybody who is connected,so there is no way that somebody can manipulate the number and say
I have 1000 000 BTC!

Security:
Blockchain transactions can’t be changed can only add new ones to the block which makes it impsossible to hack with todays technology.

Improved traceability:
Transactions can be easily traced because they are open to public.

Increased efficiency and speed:
There is no middle man,transactions go straight from A to B.Available 24/7/365.

Reduced cost:
No third party!

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