Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1848

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

Transparency:
On public blockchains everyone can verify the transactions since everyone has the access to the same data compared to the information silos where you don’t always know for sure the other partys transaction history

Security:
Since everyone in the consesus algorithm has a financial incentive to mine and since truth is all about consensus, it’s super hard to hack the Bitcoin blockchain

Improved traceability:
Especially in long supply chains it’s easier to trace a product back to it’s origins. And since a transaction on the blockchain is final, you just trust in math and code that the product is what it says it is.

Increased efficiency and speed:
Now you don’t have the information silo problem anymore and since you don’t need middle men and third parties to verify your data, you save time which increase the speed and efficiency.

Reduced cost:
Since you need fewer resources now, blockchain will save you money. You don’t need to use money on checking that the history is transparent, you only need to check the blockchain yourself.

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#1849

  1. Transparency is attained by everyone on the network sharing the same data that can only be altered thru consensus of all nodes that have access, created an agreed upon accuracy.

  2. Security: information is stored on all network nodes vs having it all on one server.

  3. Improved Traceability: It means that any data on the blockchain can be traced to its origin.

  4. Increased Efficiency & Speed: blockchain allow for one single digital ledger that all with access to the network can access eliminating third party.

  5. Reduces Cost: Blockchain reduces cost by cutting out the traditional third party verification system.

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#1850

Transparency
All have to agree to make any changes to be included on the blockchain / inclusion of the whole network

Enhanced Security
Transaction have to be agreed on before they are recorded / no one person can make changes / it has to be a consensus / then would have to change subsequent ledger items, which just does not happen / pretty much written in stone each transaction

Traceability
Products / Audit trail all the way along its journey / from point a to b to c , etc a traceable route & where there might have been a breakdown, you will know where that is, which allows better products

Increased efficiency & speed
Transaction faster with better accuracy / everyone has the same information

Reduce costs
You don’t need a bunch 3rd party middlemen / no middlemen / trust the data on the blockchain / trust the ledger

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#1851

The transparency provided by blockchain technology can be very useful in business interactions and things like logistics and healthcare. It removes the trust problem when dealing with 3rd parties or other entities whose legitimacy could not previously be reliably verified.
Security of blockchain is essential in the current tech oriented world where almost all data is transmitted via the internet or other networks. Networks and computer technology will always be susceptible to breaches so having the dependable security of distributed, decentralized consent based ledger greatly mitigates this risk.
The traceability of blockchain further removes trust from the equation in business transactions. It allows business partners and customers to ensure the validity of a product source. Businesses can also make their transaction histories completely transparent, which will pressure other to do the same resulting in a more trust-less business environment.
Efficiency and speed are inherently beneficial. They allow work such as querying for data, or auditing to be done more quickly, easily, and at a lower cost. Relying on the accuracy of the network for this sort of work also reduces potential human error as well, cutting the cost of investigating these errors.
Reduced cost is similar to increased efficiency being inherently good. Reduced costs frees up capital to be used for other projects instead of needlessly using that energy to ensure trust, ensure security, sift through databases, etc.

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#1852

Transparency: One of blockchain’s key use cases is that it creates a transparent environment for data accessibility. Data can only be added and never be changed or deleted.

Security: Decentralized network consensus. The network must verify and confirm each transaction before adding it to the chain making it nearly impossible to take down or cheat the network.

Improved traceability: Things that are exchanged and recorded on a blockchain leave a trail that can be traced back to a point of origin.

Increased efficiency and speed: Blockchain gets rid of the middle men that facilitate data exchange and transaction processing, which significantly streamlines these processes.

Reduced cost: Not having to pay for intermediaries to verify and audit your assets.

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#1853

Transparency: Because no third parties need to be involved for companies to maintain or audit their database. Everything can be found on the blockchain easily. Also fraudulence is reduced, if companies are using blockchain, rather than paper heavy documentation or any traditional database.

Security: Blockchain is decentralized and cryptographically protected. A decentralized network is more difficult to hack than one centralized server.

Improved traceability: As it was mentioned earlier. Trace every entry in the database is much easier for companies using blockchain. It is time saving and data between companies can be easily checked (e.g. origin of a product provided by a vendor).

Increased efficiency and speed: In short: less paper-heavy procedures. Everything can be found on the blockchain in 24/7 and of course much quicker than in any traditional database. Real-time auditing can be achieved by using blockchain.

Reduced cost: With blockchain, many third parties can be excluded to save a lot of money. Cost will be also reduced due to increased speed and security of the database.

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#1854

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

Transparency: Blockchain is a type of distributed ledger so that all network participants share the same copy of the database. This is transparent because we know those who have a even slightly different copy cannot sync with the network.

Security: blockchain can be the most secured record-keeping systems because transactions need to be broadcasted and agree upon before they are recorded. The encryption of the transaction is always linked to the previous transaction to help enhanced security and help prevent fraud and unauthorized activity.

Improved traceability: this is especially useful in cases like supply chain or logistic industry. The blockchain transactions help third parties (business or customers) to trace or audit products to its original source.

Increased efficiency and speed: The traditional data transactions are prone to human errors, third-party trusts, and can also be time-consuming process. Transactions in Blockchain do not have these problems since all network participants hold the same distributed database and they can track independently without reconcile third parties.

Reduced cost: since you don’t need third party mediation or pay middlemen to pay processing fees, you safe tons of money thanks to the trustlessness database store in blockchain.

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#1855

Transparency: Everyone can view the information related to a transaction on the blockchain. everyone has the ability to use this information, i.e. for transaction verification or to track the performance of the network. Everyone is also limited by this transparency to stay honest. Any bad activity is visible.

Security: Multiple parties run software to store an updated version of the blockchain at all times. These parties use their copies to verify incoming transactions. Since the blockchain is powered by a distributed network of computers and all information is validated based on consensus, there is no single point of failure for blockchain. This is useful for businesses to keep data secure, and useful for a currency to keep transaction information and funds secure.

Improved Traceability: Because of transparency, we have the ability to keep track of information and any products that relate to that information. This is useful of businesses that deal with supply chains. In case of digital currencies, this is also useful to keep track of funds that may be related to criminal activity.

Increased efficiency and speed: Blockchains can operate 24/7/365, and they get rid of intermediaries that may be used to verify information before it can be transacted (which takes time and requires trust).

Reduced cost: Blockchains get rid of intermediaries that cost time & money. This is good for businesses because it helps their profit margins and also good for global payment platforms which traditionally have high costs and take a few days to process. This is also great for money transfers on the internet because blockchain allows people to transfer money without having to pay service fees and give personal information to businesses and banks.

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#1856

Transparency: All transaction related information is visible to everyone, making it difficult for any fraud or manipulation of data to occur.

Security: Consensus in a decentralized network removes the single point of failure which keeps the data secure

Improved Traceability: makes it difficult to alter information about where and when transactions where made. This is very useful in a supply chain process as you can then track your product/service from start to finish.

Increased efficiency and speed: The network is available 24/7/365 and miners are incentivized to keep it running that way.

Reduced cost: no need for a third party to perform inspections and audits, no need for intermediary steps that process fees as everything can be traced and performed in real time.

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#1857

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

Transparency: all network participants share the same ledger of transactions, as opposed to individual copies. The ledger can be viewed by all participating parties, at any time.

Security: After a transaction is approved, it is encrypted and linked to the previous transaction on chain and then copied across all of the participating network nodes (i.e. shared, decentralized ledger). The shared ledger can only be updated via consensus, meaning everyone must agree. In order for any single transaction to be changed, the majority of the network would have to agree on that change, and every subsequent block would also need to be changed…which would cost any potential hacker more money than they would potentially receive if said hack were accomplished.

Improved traceability: When an exchange of goods is recorded on the blockchain, it creates an audit trail, showing where an asset came from and every stop it made along its journey. Users can therefor pinpoint where something went awry by reviewing the audit trail of transactions recorded on the blockchain.

Increased efficiency and speed: by automating the recording of transactions onto a public ledger that every participant has access to, there’s no longer a need to reconcile multiple ledgers or wait to hear from another human whether or not a transaction went through. Thus, the audit process is expedited, and the blockchain technology enables the sending of value in a matter of seconds or minutes with minimum transaction fees, depending on the tech used.

Reduced cost: because blockchain removes the need to trust anyone, most third parties can be removed from the process entirely, leading to decreased cost. Instead of having to trust your trading partner, you put your trust in the data on the blockchain…which every participant has access to. This leads to increased accountability and less fraudulent attempts.

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#1858
  1. Transparency: Because everything is an open ledger everyone has access to it allowing for transparency.
  2. Security: Because the blockchain is comprised of a global network of nodes that all contain a copy of the ledger it is extremely secure. When a transaction or exchange of data occurs it is verified with the other nodes and cross referenced with their copy of the ledger before it is confirmed. To try and hack or cheat this system is impossible because it would require changing the ledger on all nodes which is impossible.
  3. Improved traceability: Because of how records are kept on the blockchain it is very traceable. Every node comunicates with the others making all the data reliable. And because of this you can see and verify each step along the way.
  4. Increased efficiency and speed: Data exchange and transactions are all automated through the network. And the ledgers are automatically updated so you dont have clutter or 3rd party mediation.
  5. Reduced cost: The blockchain takes out the middleman. Companies no longer have to require on 3rd parties to complete many tasks. This is all automated with the blockchain.
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#1859

Transparency: Transactions cannot be altered so data on a blockchain is more accurate, consistent and transparent.

Security: Transactions are agreed upon before they are recorded, then they are encrypted, linked to the previous transaction and stored across the network.

Improved traceability: There is an audit trail, transactions are verifiable

Efficiency and speed: Processes are streamed and automated

Reduced costs: Removes intermediaries and admin work

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#1860

Transparency: Blockchain’s public decentralized ledger creates a system where fraud or error is practically impossible without universal collusion. This transparency creates trust in it’s users because trust is placed in the protocol NOT in people.

Security: Blockchain’s decentralized nature lends itself well to security. Lives can be ruined through breaches in financial or informational securities. By being decentralized, numerous and distributed blockchain protects user information because in order to change or break the system one must compromise all machines on the network, a virtually impossible feat.

Improved traceability: Entire careers are built around knowing from who or where any given thing came from. Blockchain eliminates this need for tedious investigation by having an unchangeable public ledger that tracks transaction information reliably 24/7. This yet again removes trust from people and places it instead in an unbiased mathematical protocol.

Increased efficiency and speed: Trading and transacting requires no 3rd party or approval from a higher authority. This cuts virtually all middle-men and unnecessary holdups out of the picture.

Reduced cost: Why have the human element and the potential for corruption in a system that doesn’t need it? Blockchain’s computer based verification system removes unnecessary 3rd parties, saving everyone money and headaches

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#1861

Why the following are the benefits of using blockchain;

  1. Transparency: Transactions are transparent and all participants use the same ledger, this shared ledger can only be updated by consensus of the network. If changes need to made on the blockchain all subsequent records need to be changed as well, this way not one individual/entity can make changes that are not agreed to by other participants. This results in making it difficult if not impossible for collusion on the network. As a result the blockchain network is accurate, consistent and transparent.

  2. Security: Transactions must be verified/agreed upon prior to going on the ledger. Once the transaction is verified/agreed upon it is then encrypted and linked to previous transaction. As this information is not stored on a centralized server but on a decentralized network it will be difficult for hackers to hack the system. This will be beneficial to industries which have sensitive and private information that need to be kept safe.

  3. Improved traceability: In particular, this is beneficial for the supply chain industry. Transactions can be completed on the blockchain allowing traceability of the ingredients. This also allows to see historical transaction data which can prevent fraud as it allows you to verify the origin of the product or the ingredients which makeup the product.

  4. Increased efficiency and speed: Trading can be completed faster and more efficient as it is not dependent on humans, this eliminates human error and the need for third-party mediation as the process is streamlined and automated.The elimination of reconciling multiple ledgers as blockchain uses one single ledger frees up time and clutter. As less intermediaries are needed for reconciliation, the verification process provided by the blockchain allows for trustless transactions which can occur quicker.

  5. Reduced Cost: Cost are cut by eliminating intermediaries who are used to verify guarantees of the parties involved in the transaction. As the blockchain has trustworthy data you do not need the intermediaries services, and this is how you can save money.

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#1862

Transparency

The transparency aspect of Bitcoin is reached through the decentralization of the blockchain. The ledger that stores every transaction in history of the Bitcoin blockchain can be accessed by anyone in the entire world with a computer that are able to download the entire ledger. A decentralized network where every participant in it will have the same information make the blockchain have the property of greater transparency than in todays isolated systems where outside actors cannot take part of all the information that is in it. In a central system you can never be completely certain that the information in it is not changed or erased by the central authority that is controlling it, so transparency on a centrally controlled database may still not really make for a greater “real” transparency but only show what the central actor want to show. Transparency for me personally is when it is undoubtedly that the information on a database like a “blockchain” is accurate and not tampered with.

Security

Blockchains decentralized property is the main reason for its high security that centrally planned architectures cannot reach. Security in any way, shape or form is never 100% secure, especially not information security. Higher security is always a tradeoff to lower practical use and ease of use, that must be balanced to reach enough security on something and still will be of any real-world value. Decentralization is solving that through that of not leave the security on a “single point of failure” architecture. Instead the Bitcoin network don’t leave their security on a single point that will need 100% security from a disaster, they will be decentralized so it doesn’t matter if a couple of actors in the network run on a lower security and get hacked or considered in some way to be corrupt all of a sudden.

The focus of security is put on a global level where everything on the blockchain needs to be validated and accepted by the majority of the blockchain actors which consists of a network that spreads throughout the world.

Traceability

The blockchain does not allow anything to get erased or changed on the blockchain. That will make everything on the blockchain permanent, and the entire transactional history of Bitcoin can get traced back to its origin. The properties that the blockchain get with that is what we often in the history of the civilization has called “written in stone”. We have a high grade of transparency so that we can look on everything that exists on the blockchain together with high level of security which make that information on the blockchain very unlikely to be corrupt or untruthful so we can trust it. If we can look inside the blockchain and can trust what is in there we can trace everything for whatever purpose, we may have for it.

Efficiency and speed

My view on this is that everyone even those that don’t support Bitcoin to succeed should probably at least have a view that it could improve efficiency and speed to a great degree in many industries. It could be explained with physics where less stuff between two things is always ending up in a more efficient process. For example all the moving part in an internal combustion engine is going to have a lot more energy waste on the way to the car starting to move than an electric car with less moving part from the energy source (the battery) to the tires starting to move. A transaction between two people with a couple of middlemen with a number of individuals that needs to do some stuff before the transaction reaching the other end, compare that to a transaction that automatically gets done through a general mining operation that not only mine for your transaction but for the sake of securing the network.

Reduced cost

Reduced cost is overlapping a lot with the above point in that removing a lot of things in the middle between two actors will always get the transaction more efficient and therefore possibly remove some cost from the process.

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#1863

Transparency: Everyone has the same copy of the networks transactions. Everyone can access and see the same version of the ledger.
Security: A record in the ledger is almost impossible to change once it’s been validated by the nodes, as it is also connected to the precious transaction block

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#1864

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

Transparency:
In the world of business this is key and it takes away the trust concerned.

Security:
Similar to previous point, in the world of transaction, security bolster that level of trust.

Improved traceability:
All historical transactions are made transparent and therefore provide clarity to both say Buyer and Seller.

Increased efficiency and speed:
Taking away the middleman provides speed to market. I.e. Farm to table.

Reduced cost:
Similar to Above points, removing middle man also remove unnecessary overhead of any intermediary reconciliation processes, for example.

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#1865

What about the rest? :stuck_out_tongue:

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#1866

Thanks for noticing. My ADHD got the best of me at that point … :slight_smile:

#1867

Transparency:
All participants are looking at the same ledger and if a change is to be made everyone must
agree on it so everything is out in the open

Security:
Transactions are linked to previous transactions on the chain which makes it extremely difficult for
any one party to make a change without the knowledge of the network.
The data for ll transactions is stored across a network of computers with no single point of weakness
which adds to the overall strength and security of the blockchain

Improved traceability:
Since everything gets recorded on the same ledger that all parties have access to
It is easy to trace transactions.

Increased efficiency and speed:
Since everything is recorded on the same ledger and there is no need to reconcile multiple ledgers
this reduces the amount of time need to settle the ledger. Having one ledger also cuts down on errors.

Reduced cost:
Since you are working off one ledger you will not need a lot of middlemen to verify data at every step, this will eliminate some cost from the system.

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