Reading assignment: Benefits of the Blockchain technology

Blockchain and Bitcoin 101
#1868

Benefits of using a blockchain:

Transparency:
As the entire transaction history is stored on the blockchain network and anyone can access it, the entire process is transparent and verifiable. The main benefits of this feature is related to data on a blockchain is more accurate, consistente.

Security:
All Transactions must be agreed before being recorded.
This is achieved by the consensus protocol (consensus algorithm).
In addition, information is stored across a network of computers instead of on a single server.
With these features the blockchain network provide secutity to stored information, helping to prevent fraud and unauthorized activity . Also prevents hackers to compromise the transaction data (or at least make the process extremely difficult)

Improved traceability:
All transactions can be tracked, know the source, and where they went. This historical transaction data can help to verify the authenticity of assets and prevent fraud.
A very important feature for companies where traceability is a critical factor (such as the food industry)

Increased efficiency and speed:
The information on the blockchain network is updated quickly because it uses the internet network.
This way it is accessible anywhere in the world (as long as you have access to the internet network).
Also transactions in blockchain doesn’t require 3rd part or approval from a central authority, leading to a more efficient process.

Reduced cost:
With all the features mentioned above, the blockchain network saves time and money. In addition, eliminating intermediaries greatly reduces costs

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#1869

Transparency:
All information is stored on a blockchain and is distributed on a shared ledger that can be accessed by everyone on that ledger

Security:
Information once added to the blockchain cannot be altered. Every computer within the network has a joint consensus to say yes or no to that information being added to the ledger.

Improved traceability:
Every step of the process is verified by eveyone on the network. As each step is verified everyone is able to see that transaction.

Increased efficiency and speed:
There is just one ledger that needs to be updated. Because you are updating a single ledger that everyone else has to agree on before information is added to the blockchain, and everyone has a running copy. It reduces time and increases speed as you are not updating individual ledgers.

Reduced cost:
You don’t have to use middlemen or companies that you trust. It’s a trustless system, so reduces costs.

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#1870
  1. Transparency is a benefit of blockchain because it brings clarity of transactions and changes in the network.
  2. Security is a major benefit of blockchain because businesses and institutions can feel more comfortable making “risky” transactions on a trustless network.
  3. Improved traceability is extremely beneficial to traditional supply chain systems by making sure all participants in the network are undeniably on the same page.
  4. Efficiency and speed are huge benefits because the human population is only increasing and reducing the time it takes to get something done will make the world run a lot smoother.
  5. Reduced cost is an obvious benefit enabling people and institutions to transact faster and cheaper.
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#1871

Transparency: Transparency is easily obtainable by using a blockchain because every transaction is public and approved by consensus. So anyone is able to check the records and verify that the transaction has been made.

Security: A blockchain is more secure that other systems because of the consensus and the redundancy and distribution of the data across a network.

Improved traceability: The provenance provided by the consensus and the immutability of the blockchain makes a lot more easy to verify historical data and track any transaction in the ledger.

Increased efficiency and speed: A system that uses a blockchain to keep track of transactions is more efficient because the blockchain is a single ledger shared by the nodes in a network and there is not necessity to reconcile various ledgers. So every transaction added to the blockchain is automatically shared by every participant.

Reduced cost: The use of a blockchain reduces cost because it automatize a lot of process that traditionally are made by middlemen and third parties.

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#1872

Using a blockchain to record transactions gives a built-in transparency to seeing what has happened when. All participants have access to the blockchain and can see everything that has taken place. Not only is there nowhere to “hide” transactions but it is also almost impossible to change them. Changing one transaction would affect every transaction that has happened since, and the change would need to be accepted by all nodes on the network.

The blockchain process is inherently more secure than many other ways of keeping track of transactions. Firstly, before a transaction is recorded, there needs to be agreement that the transaction is possible ( eg does the sender actually have enough funds to send) and then the transaction is encrypted, connected through a cryptographic mechanism to the previous transaction ( and subseqently to the one following) and then distributed to the entire network as a record of a completed transaction. The possibility for compromising the transaction data maliciously is vanishingly small, as there are numerous copies of the database, and any changes would affect not just the transaction itself, but every transaction that followed, right up to the present.

Traceability is important with the long and complex supply chains that exist with, for example, processed food and manufactured products. A blockchain can provide a useful audit of the journey of every part or ingredient from its original source to the final product, and this traceability helps to prevent fraudulent claims or mischievous substitution of cheaper, lower quality parts by unscrupulous suppliers.

The blockchain system does away with intermediaries and the need to update mutliple copies of records and allows direct communication between parties. This enables transactions to complete at a much faster pace than using traditional methods. Most businesses can benefit from reducing the time it takes to follow such due process.

The removal of intermediaries in transactions, the removal of the need to trust your trading partner and the reduced need for documentation and “paperwork” processes all in turn reduce cost to both partners in a transaction. Businesses welcome this.

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#1873

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

  1. Transparency:
    Everyone has access to the same, immutable information. This means you don’t have to trust other parties or spend as much time reviewing documentation around what has happened to your data.

  2. Security:
    Each transaction/record on the blockchain is encrypted and is linked to the transaction before and after it. This means that changing a transaction would require changing every single transaction that happened after it. For these reasons, security is better on the blockchain, making it less easy to hack or corrupt.

  3. Improved traceability:
    If every step of a process is logged on the blockchain, you have an immutable record of the process. Everyone has permissioned access to all of this information. This makes it easier to get a full picture of the entire supply chain.

  4. Increased efficiency and speed:
    Everyone is working on the same information - data does not have to be copied or processed in multiple places. Paper-based sign off is unnecessary due to the immutability of the blockchain.

  5. Reduced cost:
    Increased efficiency usually leads to lower costs. The reduced need for intermediaries and auditing due to the trustless nature of blockchain also can translate into lower costs.

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#1874

Transparency: distributed ledger shared by network

Security: transactions are encrypted and linked to the previous transaction and data is stored across a network of computers instead of a single server making hacking difficult

Improved traceability: blockchain provides audit trail with history of transactions along the way. It helps verify authenticity of assets and prevent fraud

Increased efficiency and speed: Block chain provides less clutter compared to the old paper work and intermediaries involved to clear and settle transactions. Because blockchain is a single digital ledger shared by a network requires less trust and intermediaries to verify and complete a transaction.

Reduced cost: less third parties or middlemen to pay results in savings.

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#1875

  1. All transactions are viewable on the blockchain system, anybody at anytime can access it online and the the chain of the transaction when it started and when it got completed.

  2. Since the whole transaction is digitized and managed by the system as opposed to any human intervention or manipulation, the security of the activity is greatly enhanced. No one is allowed to manipulate and change a transaction since everything happens through a consensus algorithm that is not controlled by anyone.

  3. Every activity can be traced online and the information is open to the views in realtime.

  4. A transaction is more efficient and faster since intermediaries are removed and activities and executed point to point directly.

  5. Since the activities are streamlined and automated the costs are greatly reduced. Verifications, confirmations, guarantees etc… all activities that require time, paperwork and third party participation are automated and hence the costs associated are un necessary.

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#1876
  1. Transparency means it is a distributed ledger that has the same documentation shared by everyone and available to all with permissioned access.
  2. Security because transactions are agreed upon and approved, then linked to the previous one and stored across a network of computers, not just one. This prevents fraud.
  3. Improved traceability meaning everything in the supply chain can be accurately tracked.
  4. There is a single digital ledger that everyone has access to so intermediaries are not needed which increases efficiency.
  5. Data on the blockchain is trusted and immutable which reduces cost because middle men are not needed.
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#1877

  1. Transparency: All transactions recorded on public ledger which is accessible to everyone and creates a trustless system where no one entity has to be relied upon to give the right information or secure that information.

  2. Security: The system network is secured by consensus mechanism where any piece of data cannot be altered because it needs to be altered across all the nodes contributing to the network all around the world. That means it cannot be hacked or tampered with.

  3. Improved traceability: All transactions are recorded on the public ledger and each/any transaction can be traced back to its origin to find out exactly where is came from a its path from start to finish.

  4. Increased efficiency and speed: It is peer to peer, which does not require any middlemen that sometimes delay transactions.

  5. Reduced cost: The same reason of eliminating the middleman, who always charge increased costs for their efforts of guaranteeing trust between both sides performing the transactions.

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#1878

  1. Transparency:
    transactions are recorded on a public ledger, of which all network nodes share the same copy. as such all records are public and open to interrogation by all

  2. Security:
    by having copies of the ledger on all nodes, entries cannot be changed by an individual without consensus across the network. furthermore, the linking of one entry to the next/previous one means that transactions/records cannot be changed in isolation (all subsequent record also have to be modified)

  3. Improved traceability:
    by recording each activity/transaction on the blockchain creates an immutable historic record. For transactions this means an easy audit trail while for products/goods it records each step in the supply chain.

  4. Increased efficiency and speed:
    calculations are done electronically in seconds/minutes rather than manually over hours/days. furthermore the blockchain negates the need for manual checks and rechecks.

  5. Reduced cost:
    the only costs are transaction fees to cover miners / validators and, as the process takes much less time than the traditional manual way, fees are much lower that the costs which would by typically incurred.

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#1879

Transparency:
Blockchain is a single database as all the data are connected. Transactions are more visible.

Security:
All transactions must agree before the transaction can be recorded. All transaction is then encrypted and link to the previous transaction. This reduces the risk of being hacked.

Improved traceability:
As we learned before, it is more provenance. As the user can trace back the transaction origins.

Increased efficiency and speed:
Transactions do not need to transmit through middle man, this save up a lot of time and afford. Blockchain keeps its record in a single-digit ledger rather using multiple ledgers, as this makes it more efficient as all process is automated.

Reduced cost:
Since all transactions do not require any third party, this reduces the cost for the company. User just need to trust the internet and the protocol.

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#1880

1.The ability to verified that certain information is true and accurate used a distributed ledger.
2. Knowing that there is a network not just a single server and that there must be consensus and that the information is encrypted and linked to other blocks that can’t be altered.
3. Being able verify where something is and and where it comes from to guarantee authenticity of a product.
4. The ability to reduce the the amount of intermediaries needed for conformation to make deals.
5. By speeding up the process with less paper work and intermediaries it reduces the the cost.

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#1881

T = everyone sees every transaction
S = relying on the consensus network
Improved traceability = see above
Inc efficiency = faster direct transaction between 2 addresses, not via other parties which can hold up the transactions
Reduced cost: no need for third party and audit firms which need to be paid. The system does it all

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#1882

  1. Every user must use consensus to make a change to the ledger.

  2. The blockchain network is security feature in itself becasue it runs 24/7 365 days a year, also consensus- any change must be agreed to by all parties, makes blockchain safer than centralized database.

  3. Improved traceability, - because of vast network of miners continuing to run nodes to keep the ledger updated, real time audits can take place.

  4. Blockchain is efficient and fast because the transaction is based off of consensus which incentives miners to process transactions faster, while being reliable because they have to use consensus, futhermore once the transaction is made it can not be altered.

  5. Using Blockchain is more cost effective becuase there is no days off an transactions can take mere minutes-hours, compared to some banks that take days-weeks to process a transaction.

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#1883

Transparency:

Blockchain is basically an immutable public ledger on a global scale, so whoever has access to it and the skillset and tools to make sense of the information can see the details of all the transactions that are placed on it. There are no third parties, multiple layers of software or “information” silos to sift through. It’s all mostly out in the open. This is beneficial because it removes layers of complexity and red tape from the equation of trying to get at valuable data.

Security:
Since blockchains are on trustless decentralized networks there is no single point of failure, single database or single authority. If hackers take down one or even several nodes or a power outage takes out another there are hundreds if not thousands of others all with the same information constantly communicating and validating each other. The security in this model as opposed to a single database somewhere under the control of a single actor or party seems self evident.

Improved traceability:

Since everything is transparent, trustless and immutable it makes it easy to trace transactions, audit supply chains and access information without the trust, red tape and complexity of having to get through layers of different databases, companies and parties just to get the information you need. This is one global system that anyone with an internet connection and the appropriate skills and tools can access fairly easily.

Increased efficiency and speed:

With one global decentralized network everything you need is right there on that one blockchain, at least theoretically. All the layers of complexity, red tape and time I mentioned above is no longer there, thus increasing both efficiency and speed of getting to the needed information.

Reduced cost:

For the same reasons as above the cost can be significantly reduced. Multiple databases, companies, software solutions and all the paper and red tape cost money and resources, probably to the tune of billions of dollars. If everything could be kept and accessed from one trustless, immutable and decentralized public ledger that would cut out many of these other costs.

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#1884

Transparency: Since it requires network participants on the ledger to agree with a transaction (consensus), data on a blockchain is more accurate, consistent, and transparent.

Security: Once a transaction is encrypted, it is stored in a network of computers, everywhere inside the blockchain. It reduces the possibility of fraudulent activities.

Improved traceability: Knowing where to trace my product from its inception until it arrives, really enhances my trust in the blockchain.

Increased efficiency and speed: Trading in the blockchain becomes faster and more trustworthy. Since we are using only one digital ledger for recording transactions, all participants can verify.

Reduced cost: By trusting the data on the blockchain, I dismiss any third parties involved in my transactions and save money—no need to spend an enormous time checking all the documentation. This transaction is immutable.

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#1885

transparency benefits of using blockchain is that all transactions done are recorded on public ledger and all participants are able to view ledger as they are on all their computers. Nobody can alter the ledger, as they have no control over the ledger.

security benefits using blockchain are the fact that information is stored across a network of computers instead of on a single server, making it tough for hackers to hack transaction data across a netwok of computers

improved traceability benefits using blockchain whatever you purchase you end up with an audit trail that shows where an asset came from and every stop it made on its journey.

Increased efficiency and speed using blockchain is obviously better by getting rid of paper work clutter and 3rd parties that look for mistakes thus making transactions more efficient and quicker with more trust in the system as all ledgers are upgraded at the same time.

Reduced cost benefits by using blockchain is the reduce of middlemen and 3rd parties overlooking so much documentation to complete a trade. just let the data on the blockchain do the work that you use to pay somebody else to do for you.

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#1886
  1. Transparency: All transaction are visible on the blockchain by anyone. They must be verified by the network in order to be put into the ledger making all transaction 100% accurate. No party is able to manipulate or hide transactions.
  2. Security: Since the network is decentralized, there is no single point of failure from a hack or power outage. Also, all transaction are verified and put into the ledger so no fraud can take place within the network.
  3. Improved traceability: Every transaction has an audit trail and shows it’s complete history with its origin and every stop along the way.
  4. Increased efficiency and speed: There is only one ledger that is operated digitally. The network works of code 24/7/365 and not humans so we don’t need to wait for someone to get to work or a system to start up again to execute transactions.
  5. Reduced cost: No third parties. One network that is coded and available to anyone.
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#1887

Transparency: That all transactions can be viewed by anyone being that it is a public ledger. Which leads to increased trust.

Security: That there is a network of nodes and miners ensuring that the system is accurate and secure from hacks and corruption as in a centralized authority database.

Improved traceability: It allows you to know where the product has gone and it helps give you a reference that said information was given correctly.

Increased efficiency and speed: There is only a single ledger in blockchain which eliminates the need for a middle man and keeps it a peer to peer style network. That increases speeds and cuts the cost down in result.

Reduced cost: Cutting out the middle man saves some financial costs being that they are not needed as data on the blockchain is accurate and can be non-reversed.

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