Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1668

Why these are the benefits of using a blockchain.

Transparency:
All permissioned participants have access to all transactions,
which are verified.
Hence if you really want transparency among participants,
a blockchain guarantees accuracy and consistency of the data,
to a higher degree, than a centralized database.

Security:
The distrubuted nature of a blockchain database,
makes hacking it and altering it, practically impossible.

Improved traceability:
A blockchain makes it possible to track provenance of goods, in a supply-chain,
making it easier to avoid mistakes and outright fraud.

Increased efficiency and speed:
A blockchain provides a digital ledger shared among participants,
reducing the need to reconcile multiple ledgers.
This leads to faster clearing and settlement.

Reduced cost:
A blockchain reduces the number of third parties and middlemen needed to make guarantees.
It also reduces reviewing of documentation.
Overall, these factors reduces cost.

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#1669

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

Transparency:
-> can view all transactions that have taken place between parties

Security:
-> as all transactions can be viewed and but not edited, agreed upon before being committed to the ledger, there is reduced risk of fraud

Improved traceability:
-> any info placed on the blockchain can be traced back to single unique entries

Increased efficiency and speed:
-> all info is entered on one single ledger, reducing maintenance required of multiple ledgers

Reduced cost:
-> fewer records translates to lowered cost

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#1670

  1. Greater transparency makes it easier for users of the blockchain to verify information due to everyone having access to the same database/ledger. If only one person or entity had access to the database, everyone would have to believe that they are telling the truth about the accuracy of the information on the ledger.

  2. Security is enhanced when using a decentralized network to run the blockchain as it is much less likely for there to be a single point of failure or target of attacks.

  3. Blockchain has the benefit of improved traceability because once consensus has been made and recorded, the block cannot be altered. This allows users to see the full history of all data that has been recorded.

  4. Increased speed is a benefit of blockchain because it allows users to transact with one another without having to use or trust a third-party intermediary. There is less friction when everyone has access to the same ledger/database.

  5. Blockchain reduces the cost because it allows users to transact directly rather than using a middle man. As long as you can trust the information in a database and the user, a third party is not necessary.

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#1671

Transparency - anyone can verify a recorded/permanent record on the blockchain ledger

Security - all transactions require verification through distributed ledger consensus before recording on blockchain and being linked to previous transactions, making it extremely hard for hackers to compromise transaction data

Improved Traceability - all verified transactions on the blockchain are permanently recorded and auditable in real-time, recording all steps through a supply chain

Increased Efficiency and Speed - record keeping is automated using a single global digital ledger that is shared and verified amongst all blockchain network participants

Reduced Cost - by removing third parties and middle men who are traditionally needed to foster/enforce a trustworthy trading environment, and reducing time spent on verifying documentation to complete trades

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#1672

Transparency: Blockchain enables greater transparency as all network participants have access to a single ledger rather than copies of documentation. The ledger cannot be altered without the permission of the entire network. This allows for greater accuracy and consistency. Greater transparency is also achieved because all participants in the network have access to the entire ledger.

Security:
Information encoded on the blockchain is more secure because it is linked to the previous data inputted and subsequent data afterwards. In order to compromise this data, a hacker would need to first need to break into all subsequent data inputs before reaching their target. They would also need to do this faster than blocks are being created or else new blocks will increase the barrier of difficulty. This is considered impossible by most with today’s available technology.

Improved traceability: A distributed ledger improves traceability by storing a single, accurate and immutable copy of the transaction history. This provides a clear, consistent and reliable audit trail of financial transactions or supply-chain data, which helps to prevent fraud, misinformation and unauthorized activity by enabling various types of product authentication to be performed with accuracy e.g. proof of origin, proof of ingredients, ownership history.

Increased efficiency and speed: Of course the use of blockchain removes the heavy paperwork and automates process, which enhance efficiency and speed, removing intermediaries and replacing middlemen by smart contracts.

Reduced Costs, Increased efficiency, increased speeds are all achieved with blockchain because, potentially, no external intermediaries (middlemen) are required to perform administrative functions such as verification, reconciliation, accounting and auditing of transactions. This makes blockchain networks much more streamlined.

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#1673
  1. Information is shared amongst all participants in a blockchain network. It takes a consensus of all to create a transaction and this information is accessable by every decentralized point. Everyone has access to all information.
  2. All transactions require consensus agreement prior to acceptance. Information is spread throughout a network of computers so there’s no central point of failure or risk of being hacked.
  3. A permanent audit trail is created with each transaction. It makes it easy and quick to trace where all the ingredients in a particular product came from and exactly what they are.
  4. A single ledger reduces time and human errors. This is shared among all network participants leading to trust and elimination of third parties.
  5. Because you only need to trust in the blockchain network third parties and middlemen are significantly reduced… Leading to cost savings on these services.
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#1674

Transparency: Every data occuring on the blockchain is visible and available to the participants.

Security: Transactions on the blockchain has to be approved, which after they are encrypted and linked to the previous transaction. Also the information is stored on every computer in network, so there is no single point of failure.

Improved traceability: On the blockchain there is an audit trail that traces the history of transactions, assets, products, showing every stop throughout its move along the chain.

Increased efficiency and speed:
The availability and trustlessness of blockchain eliminates the need for human third parties to administrate the transactions, which would take considerably more time compared to the solution blockchain offers.

Reduced cost: Because of the aformentioned reason and the fact that there is no need to store the data individually - since it is stored on the distributed ledger - , costs are reduced.

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#1675

Transparency
Every transaction is recorded identically in a distributed ledger across the entire network and able to be viewed by all who participate in the network.

Security
The distributed ledger held on every computer in the network can only be changed through a consensus by all. Once a transaction is agreed upon it is then linked to the previous transaction, updating the ledger on the entire network. This prevents a single point of failure.

Improved Traceability
Every item recorded on the blockchain has an audit trail. This allow you to trace an item back to its origin and also every move it made, where it stopped, how long it was there, or what temperatures it was exposed to. Basically, all conditions experienced along the way from origin to destination.

Increased efficiency and speed
Instead of multiple records, each possibly containing different information that would need to be consolidated into one, blockchain uses a single ledger. Third party intermediaries, consuming time and resources, are not needed.

Reduced Cost
Blockchain is trustless and immutable. There is no need for third parties to overview multiple sources of documentation, wasting time and money, since the blockchain is a single ledger able to be viewed by all. You don’t need to have trust in a third party, only in the protocol.

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#1676
  1. Transparency: Blockchains use a distributed ledger where the same transaction that must be verified by the entire network for the transaction to be approved. Whereas, if the transaction was decentralized you have to trust/rely on third parties, in which makes you susceptible to human error/mistakes or fraud.
  2. Security: Transactions on the blockchain require consensus from the network before being authorized, which makes it harder to hack. d
  3. Improved traceability: Blockchain makes it easier to record assets/good, where they came from and every stop along the journey. Technologies embedded in the program also reward honesty in transactions. It is more rewarding to tell the truth.
  4. Increased efficiency and speed: Blockchain transactions are done on the computer with lighting speed. Reduce paper work clutter and third parties and third parties.
  5. Reduced cost: Blockchains transactions on done on the computer, which saves paper. It also eliminates third parties like banks, lawyers, Western Union (third parties) being involved with the transaction, which reduce costs and mistakes.
#1677
  1. Transparency: Public ledger can be verifiable.
  2. Security: Nodes verify transactions.
  3. Improved traceability: Transactions are linked from one to another and it can be verified from point A to B.
  4. Increased efficiency and speed: Increase efficiency by removing intermediaries and replace trust from entity or papers with public ledger that runs 24/7/365 and can be verifiable. Also, due to the same reasons mentioned before process on blockchain take less time. It just matter of using blockchain where its features apply best, since blockchain is not for everything.
  5. Reduced cost: By both, removing intermediaries and increasing speed.
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#1678

I think you made a typo. This would be true when using a payment service :slight_smile:

3 Likes
#1679

1, Every documents, informations are the same as they are engraved and are shared to the users of the blockchain
2.- Transactions must be agreed before they are recorded, moreover they are encrypted and linked to the previous transaction
3.- As transactions, datas are recorded in the blockchain, we can have the immediate tracebility of every transactions, contents of a products…
4.- As intermediaries and trust are no more necessary, we significantly improve efficiency and speed in the transaction
5.- As third parties, middlemen are no more needed, as everyone can immediatly access to the contents of the blockchain we consequently erase the costs related to those intermediaries

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#1680

*> Explain with your own words, why these are the benefits of using a block chain. *
> 1. Transparency: As it’s open distributed ledger, all network participants share the same information. When everyone know whats happened as in decentralized systems, it’s very hard to cheat.
*> *
> 2. Security: we trust a protocol and mathematical calculations where security lies in network protocol it’s self. it is encrypted and holds a link to the previous transaction in the chain the block chain.
*> *
> 3. Improved traceability: recorded once on a block chain it there forever, 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.
*> no way to reverse or tamper with a validated block chain transactions, it’s finale and on block chain forever, even errors are permanents and not reversible *
*> *
> 4. Increased efficiency and speed: On block chain there is no middleman or central authority to confirm or validate your transaction , the protocol keeps the security and trust and are also immutable. Compared to a standard bank transactions where a transaction to a stranger can be on hold for 1-3 bank days.
*> *
> 5. Reduced cost: With block chain zero cost from third party’s as we trust the protocol itself, note that every transaction on block chain will have a small fee to keep the security high where miners gets rewarded.

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#1681

Blockchain provides increased transparency because you can be sure everyone is looking at the same data. It provides security because no single person can modify the data in a decentralized blockchain.
Traceability is unmatched on blockchain because every transaction is stored forever. Efficiency of a business and cost reduction can be achieved through the use of blockchain if it removes middlemen, or reduces the chance of a costly mistake.

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#1682

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

Transparency: This garners a trustless system, where you no longer have to give the benefit of the doubt to the other party that your transacting with. All parties will have access to the same distributed ledger to verify the validity of the transactions.

Security: Due to the distributed nature of a blockchain ledger where multiple nodes that record a transaction based on network consensus, this makes it almost impossible to alter. All of the transactions are linked to the previous one and any alteration would require network consensus from various nodes that will reject if it does not align.

Improved traceability: This helps prevent fraud as you’ll have visibility into the origin and journey of the asset all the way through the supply chain.

Increased efficiency and speed: The fact that all transactions are recorded on one ledger, distributed across many nodes, this removes the need to perform any kind of reconciliation between multiple databases, thus improving productivity.

Reduced cost: The bottom line will be impacted as this removes the need for third parties to help facilitate transactions between two parties.

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#1683

Transparency - All members of the network share the same information (distributed ledger). This information needs to be agreed upon by a consensus which verifies the data.

Security - Transactions must be agreed upon (consensus) before being encrypted and added to the chain of information. The transaction data is stored across many computers and not on a single server which makes it difficult to be compromised.

Improved traceability - An audit trail is created from start to finish for any product utilising blockchain technology. This transaction history helps verify a products authenticity.

Increased efficiency and speed - Clearing and settlement occur much quicker as everyone has access to the same information. Transactions are no longer prone to human error or in need of third party mediation as a digital ledger is used. Zero paper. Less clutter.

Reduced cost - Less middlemen to make guarantees as trust is in the network as oppose to a trading partner. Less documentation to review in order to complete a trade.

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#1684

1.Transparency: you can see all transactions on the blockchain so you don’t need to trust anyone and you can see it by yourself
2.Security: Data and transactions must be agreed upon before they are recorded on the network and the information is stored across a network of computers instead of on a single server which will make it difficult to hack.
3. Improved traceability: since all the data/transaction is sorted on a public ledger so that will make it easy to track and trace.
4.Increased efficiency and speed: lack of third party\middleman and automation + the trust in the network will make it efficient and quick
5.Reduced cost: you don’t need the third party in the transaction like visa etc.

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#1685

Transactions are hashed in bitcoin. Encryption is a two way function, while hashing is a one way function. Don’t worry, it’s okay to confuse these 2 terms if you are new. :slight_smile:

4 Likes
#1686

Thank you Mauro! Yes very new :smiley:

1 Like
#1687 
  By using Blockchain the world will become more transparent because everybody will use the same database and everybody will have access to it.
  The world will gain in security because in order to insert new info inside the ledger ,the info will have to be agreed upon by all the participants within the network in what we call consensus.Once the info is accepted it will be encrypted and will become immutable.No one will be able to reverse or modify the transaction and the transaction will be linked to the previous transaction and engraved in the Database accessible to everyone in the network.There will be no need to trust third parties.
There will be an improved traceability of transactions and origin of products since everything will be within the same database and this one will be easily accessible to everyone.
there will be more efficiency and speed because everybody will use the same database as opposed to having numerous databases to reconcile manually .when the info is transparent and available to everybody there is no need to trust third parties therefore the process becomes faster and more efficient.

Costs will be reduced since there will be no need to trust your partner or use expensive third parties services to protect you from fraud, you will only need to trust the data in the blockchain.

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