Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1708

Transparency: You can always check information in blockchain because everyone has the same copy.

Security: Information can not be changed because the network wouldn’t allow it. Therefore you can be sure that information you are getting is true.

Improved traceability: Blockchain can store all the transactions and information therefore it is easier for participant to trace it to its origin.

Increased efficiency and speed: Since there is one universal version of blockchain that every participant uses you don’t have to match and cross check databases from other involved parties.

Reduced cost: You spend less time checking database because everything is on one protocol thus saving money.

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#1709

Transparency: is the result from having an open ledger shared by all the nodes on the network where everyone can see transactions been done in the past up to date, many industries can benefit from having an open transparent ledger back into the business side of things, also more profit from all the users

Security: I can’t think of any industry where security is not a priority, it will be adopted more and more as the industry adopts the blockchain technology in the future.

Improved traceability: specially for manufacturing companies having a tracking feature to see where all elements or components are coming together into a final product has the potential to re-invent and disrupt all industries with much faster and cheaper and better quality end products.

Increased efficiency and speed: by having all the nodes working on a network sharing an open ledger the result is a much leaner and clean flow of transactions, eliminating the old paper trail process to verify the complete process, no time is wasted in the network for other than mining or sharing information, thus a more efficient system overall.

Reduced cost: by eliminating the old paper trail system and personnel dedicated for this task can be eliminated with a trust-less network, achieving lower cost overall.

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#1710

1. Transparency:
The article notes that businesses no longer have to keep copies of the same transaction separately, as it can now go on a single, distributed ledger. Since the nodes have to come to a consensus to update the ledger, this makes the system more transparent and accurate than relying on traditional accounting methods.

2. Security:
To change a single transaction you would have to alter every transaction before it (block) in the blockchain (and then how would you alter the copies stored locally on computers in the network and get them to agree to the new version)? Blockchain offers increased security because of consensus mechanisms and the fact that you have to hack a majority of computers in the network (51%) to interfere with adding new transactions, versus hacking a single central authority. Also as the network grows you would have to attack more nodes to reach this 51%, making it prohibitively difficult once a network is very large.

3. Improved traceability:
Blockchain offers provenance, or an audit trail. Consumers have more transparency seeing where they products come from. This is notable as consumer spending habits are becoming more value-driven.

4. Increased efficiency and speed: Blockchain allows you to trust in mathematical protocols and avoid human error. You also don’t have to rely on a third party/middleman for trust, instead you have the shared ledger.

5. Reduced cost: Blockchain would reduce costs by streamlining business processes and making them more efficient, reducing costs due to duplication (cost of storing copies of same transaction on different ledger). Rather than having to trust the person/entity you are going into business with, you just have to trust the data on the blockchain.

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#1711

Hi @jampty! Welcome to the forum! :smiley:

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#1712

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

Transparency:
The blockchain works as a public database. Everyone has access to its content. So it’s transparent per definition.

Security:
The decentralized nature of the blockchain makes it less susceptible to hacking than a centralized authority. A new block can only be made when consensus is achieved and it must be in agreement with all previous blocks in the chain. The finality concept of the blockchain is also a security feature. If you get information from the blockchain, you can count on that it’s true and unchangeable.

Improved traceability:
Provenance is a suitable area of use for a blockchain. Even in complex delivery chains it’s possible to trace all components of a product, from its origin all the way to the buyer of the finished product.

Increased efficiency and speed:
When everyone has access to the same information on the blockchain, that decreases the friction in a potential transaction. The fast digital solution of the blockchain it easily out-competes traditional analogous administration when it comes to efficiency and speed. The fact that you don’t need a third party mediator when you use the blockchain is also a potential efficiency boost.

Reduced cost:
The trustless nature of the blockchain eliminates much of the need for third parties during negotiations between businesses. When you know that you can trust the information on the blockchain, that reduces the cost of having to verify a lot of information manually.

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#1713

Blockchain technology is an amazing platform designed to achieve transparency in that every transaction is recorded on a visible public ledger that can be viewed publicly but not in a way that to release sensitive personal information but merely validate and verify the transaction took place.

Security of the blockchain is spread across reliable global networks so information stored is immutable and transactions of financial value and smart contracts can only be stored and shared peer to peer without the necessity for a third party. No one can take control of your assets or private information.

Transactions on a transparent ledger can quickly be traced to validate logistically other parties products who supply their product as part of a contract to ensure that what is being supplied is to the standards that make up the final product, this may take place over a series of blockchain networks to arrive on the main net where the transaction is finally validated and accepted .

For financial transactions merely to see that the transaction has left and arrived at the correct wallet addresses.

Removing the reliance of a third party and operating 24/7 makes global payments and distribution of smart contracts lightning fast compared to swift and other payment protocols that are currently used today.

The transferring of crypto’s from peer to peer is pennies, our current system being handled by banks and institutions is archaic, being handled by third parties taking days to transfer and receive. Blockchain decentralisation and the transference of cryptocurrencies eliminates unnecessary centralised institutional charges and currency conversions.

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#1714

#1 transparency is a must for communication and payments alike, by doing so brings more security and accuracy in real time .

#2security person to person agreements security checks after p2p agreements have been settled then back checked with network of computers

#3 traceability on a blockchain is done so by a network of computers sending data that is uploaded in one localized area tracing back and forth as it makes it way to the and user

#4efficiency is speed to start one can send payments as if they were in person to person cutting out need for middleman involvement backlogging more info tobe compromised

#5reduced cost cutting out time that is needed for one transaction freeing up many networks not having to communicate back and forth to recheck system …

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#1715

1. Transparency:
everybody has acess and sees the same data. there is no reason do not trust each other. missing trust causes a lot of trust (not necessarily that someone else committed fraud but simply to be sure that the other one did not made a mistake (which often happens) therefore people are checking, and double checking and tripple checking, excel sheets, records and contracts.

2. Security:
is it really non hackable? thats the major key. so fare i understood that blockchain is the most secure database since it would cost too much money to change something. but what about quantum computing or to much mining power in one country/system etc…? ie. China? happy to learn more about this. But the last 10 years at least showed that blockchain is good damn secure!

3. Improved traceability:
since everything is transparent and public one can trace back (ie. how much the BTC adress posted on Twitter received money :wink: - i am still waiting for my 2x return… not here still :thinking: i though Barack was an honest guy…
4. Increased efficiency and speed:
since no double, tripple checking is necessary transactions can be executed much faster. no middlemen and auditors necessary.

5. Reduced cost:
no middlemen + no checking = less costs

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#1716

Can’t say for certain, I think no one really can. But I agree that China does pose a potential threat to the security and future of the Blockchain. Quantum computers on the other hand are not that much of an issue, since we can fork to a quantum resistant algorithm :slight_smile:

:sweat_smile:

3 Likes
#1717

  1. Transparency: It is shared on a distributed ledger allowing everyone to have and verify the same data

  2. Security: Protocols protect the network and chain to make it nearly impossible to hack or change

  3. Improved traceability: To be able to follow the data through the blockchain to prove it’s integrity.

  4. Increased Efficiency and Speed: Protocols, network and miners make it possible to send and receive money at a faster, safer and uncensored

  5. No need for third parties or banks protocols in the network create a fair and competitive price

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#1718

Transparency- is beneficial because it removes the need to trust. Instead, data can be verified and this makes the eco-system available to more people all with an opportunity to engage freely.
Security- no single point of attack making each users data as well as the whole network more secure.
Traceability- Real time audit trail
Speed & Efficiency- simplifies backend and frontend paperwork and processes. Paperwork is a costly, inefficient process prone to error. Streamlining any portion of the journeywould be advantageous.
Reduced Cost- see above :slightly_smiling_face:

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#1719
  1. The ledger is available to everyone who has access tot the ledger which is kept up to date with a consensus algorithm.
  2. The consensus required across the network makes it difficult to spoof transactions and inputs. All nodes must agree with the new input.
  3. Audits are performed via consensus, and a trail is left behind for all to see.
  4. Blockchain minimizes the need for third party intervention when it comes to accounting and verification; The blockchain does all of that, and gretaly reduces the risk of human error. This decreases cost and time (which is cost in a business sense).
  5. By cutting out middlemen, companies can invest in the setup of the blockchain, in a “set it, and forget it” sense. The blockchain is its own database, auditor, and verification process. This could be bad news for middlemen.
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#1720

  1. The blockchain is transparent because it is a public distributed ledger system. Anyone is free to look at any transaction.

  2. The blockchain is secure because both parties agree to any transaction before it is initiated, and when sent onto the blockchain the transaction is encrypted.

  3. The blockchain is transparent, easily allowing anyone to trace any transaction back to it’s origin.

  4. The blockchain is not flawed and bogged down by paperwork and human error. This allows businesses to complete transactions faster and more efficiently.

  5. By reducing the need for third parties, blockchain greatly reduces costs to businesses.

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#1721

Transparency-All users have access to a distributed ledger and have copies of this ledger which has links of historical transactions
Security-Users has more insight how information is shared and no information is kept on single server hence making transaction tough to break by hackers
Traceability- helps users and especially organizations to be trace their complex supply chain network. It helps real-time auditing and helps to prove authenticity.
Efficiency and speed- Blockchain tech helps to streamline processes via automation hence giving rise to proactive analysis instead of reactive hence making it efficient to less human error and over-usage of resources. Since copies of the main ledger is distributed with no intermediates, the network does not experience heavy traffic.
Reduced cost- since no third parties and intermediaries are involved, costs are played fair.

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#1722
  1. Transparency: Data is held by different computers across the world so everyone access to the same info
  2. Security: Everyone uses the same network and is incentivized to keep it going with encrypted data
  3. Improved traceability: All data posted in the blockchain cannot be removed, so any transactionis easily traceble to its origin
  4. Increased efficiency and speed: Blockchain removes all middle people and is peer to peer
  5. Reduced cost: No need for intermediaries as all users of the blockchain have access to the same trustless info and their for no need for people to confirm transactions
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#1723

Transparency: All data are publicly or conditionaly avalable for all or specified users

Security: Is done by protocol and level of decentralization and hashrate\count of nodes of network- as much as better

Traceability: Analytical tools alows to trace very detaily who, when, how much, maybe even why.

Eficiency, speed and Cost reduction: By a couple clicks is possible to do office works for a small army of office atendants, or CEOs, or lawyers, to save their time and wages aswell… nice… they can learn how to program smartcontracts :stuck_out_tongue:

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#1724
  1. Transparency:
  • All participants on the blockchain share the same ledger. Once all participants have consensus/agreement the new transaction is updated on this common ledger.
  • Because of this transparency, all participants are confident that the recorded transactions are immutable once recorded after consensus.
  1. Security:
  • The blockchain ledger is distributed across several computers thus avoiding ‘single point failures’, and making it difficult to hack.
  • After consensus the approved transaction is encrypted and linked to the previous block. This means any change to a block requires ALL previous blocks to be changed as well. This guarantees immutability of all transactions recorded on the blockchain after consensus.
  1. Improved traceability:
  • Since a blockchain records historic data in an immutable sequence, traceability becomes a core feature of data / transaction recorded on a blockchain. For example one can easily do an audit trail for the source of a specific ingredient in a product or location of an item in a supply chain.
  1. Increased efficiency and speed:
  • Blockchains totally dispense with time consuming reconciliation of separate ledgers stored at different organizations data/transactions. Because trust is established by consensus within the network using math ‘trust’ is established quickly without ‘human error’.
  1. Reduced cost:
  • Because trust is implicit on a blockchain, there is no need for ‘trusted 3rd parties’ thus reducing time and effort of human intervention.
  • All participants use a single global blockchain network
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#1725

Transparency:
When there is a transaction the information is recorded and also traceable in a shared block which can be seen by anyone in the network, which gives it transparency.

Security:
Traditionally transaction has to be agreed from a single party in the blockchain you have a bunch of nodes that have to agree before doing any transaction.
In short, security in the blockchain is by far better than the traditional systems.

Improved traceability:
When a company works with goods that are worked within a complex supply chain then the blockchain system is an excellent solution to better keep the records of its origin, authenticity and also prevent fraud.

Increased efficiency and speed
By using the blockchain we shorten the path to send and receive value so the Middleman is no longer needed. The transaction in the blockchain is done in a single ledger.

Reduced cost:
The traditional worries for having a middleman is no longer needed with the blockchain and No middlemen mean a giant cost reduction in your process.

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#1726

  1. Transparency:
    Blockchain is shared through all participants in the network, hence, information is public and auditable whenever needed. Every transaction is recorded and immutable.

  2. Security:
    Before a transaction is recorded, it must be verified and authenticated by all nodes. In same way, a unique record is shared and stored in every node, in that way if a new record is added others nodes should replicate same order.

  3. Improved traceability:
    Every transactions is logged so a historical record can be obtained to audit previous transactions.

  4. Increased efficiency and speed:
    Process is automated, no additional inputs are needed.

  5. Reduced cost:
    No thirdparties or middleman is needed, only P2P iteraction.

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#1727
  1. Transparency:
    All transactions on a blockchain can easily be seen by those with the access
  2. Security:
    Cannot be easily hacked
  3. Improved traceability:
    you can easily see the origins and paths
  4. Increased efficiency and speed:
    entries are digitally transferred
  5. Reduced cost:
    no middle men, trusted 3rd parties etc.
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