Explain with your own words, why these are the benefits of using a blockchain.
Increased efficiency and speed:
Explain with your own words, why these are the benefits of using a blockchain.
Increased efficiency and speed:
Transparency: In blockchain before a data gets added to the blockchain it has to be agreed upon collectively by the nodes. And when it gets added it becomes available for everyone to see, so it is more transparent because you don’t have to trust anyone but you can see for yourself and check if the given information is correct.
Security: In bolckchain the blochchain aka the database is spread out on many computers geographically, and not only on one or two servers therefore it is extremely hard for hackers to hack the blockchain in which there’s no central base for it.
Improved traceability: in blockchain the traceability is improved in which you can track the origin of the product and where has it been and where did it stop etc. And you can make sure that the information you’re given is correct in which in blockchain the data can’t be changed or manipulated.
Increased efficiency and speed: Blockchain removes the middle man which makes it peer to peer and very fast.
Reduced cost: As i said blockchain removes the middle man who can cost a lot of money. and makes it peer to peer.
Transparency: A blockchain is a single database where all that are connected share a continuously updated version of the ledger that publicly displays all transactions with time / date stamp and wallet address.
Security: The transparency is part of the security. Ina addition to this the network has to verify transactions through consensus before adding it to the block. If using bitcoin for example in the true decentralised manor you effectively become your own bank, by holding your own personal keys you hold your money and therefore have complete financial sovereignty.
By not holding a ledger on a central database but on a decentralised network it is much more difficult to attack millions of computers simultaneously than attack a handful or worst case single server.
Improved traceability: It is much easier to trace financial / data movements on a blockchain as any fractions of a block are time date stamped along with accompanying address and can be tied back to the originating block. As a blockchain is open decentralised and immutable it is easier to authenticate the data and access it as no permission is required to access and view the network.
Increased efficiency and speed: By removing the bloat of third party intermediates your only relying on the speed of verification and consensus smaller transaction values for say purchasing a T shirt require less consensus so speeds up verification and transaction can be completed sooner.
Reduced cost: Paying for an item by card can be quick and easy but does involve more intermediates so if a charge back is requested by the purchasers bank they have to contact the payment processor who then has to investigate if there was error or fraud and pay back the purchaser and charge the merchant a fee for refunding the original transaction and still be minus the original inventory compounding losses. As transactions on the blockchain are irreversible charge backs are not possible. No specialist equipment such pdq machines are required, transactions are trustless on the blockchain. so cost of remittance is significantly reduced.
Transparency: Customers can know these products are safe even while others are recalled.
Security: I don’t know that this applies to Walmart case. Security has to due with consensus mechanism and fault tolerance. Though private networks can provide similar security to current infrastructure with the exception of normal use to delete data. They are still highly susceptible to data breach/ hacks. Public network have no single point of failure and are normally secured using a game theory method or POW mass data processing protection. Also the data is stored in private or non private state their is no one please to take all secret but not encrypted data from all users.
Improved traceability: Walmart is using this to trace salad greens from farmers. The gain is being quicker and more accurate when dealing with out breaks that cause them to throw out all of one kind of greens.
Increased efficiency and speed: Without blockchain customers can be without that type of greens for weeks. This could be brought done to week or less with tractability.
Reduced cost: Not throwing out product that is still good.
The Benefits of Blockchain Technology
In a 21st century globalised world we need solutions that meet the demands of the world. We need a unified protocol that serves one world not many different versions of it. The internet is one such protocol: The world wide web of information.
Blockchain is another such innovation. It’s 21st century ready and has a number of benefits over its fragmented rivals and many use cases. I will set out some of the benefits with examples below:
The food industry supply chain on the Blockchain can provide immutable records of the journey from birth of a farm animal from farm to fork giving improved traceability to the end user like the retailer in regards to their supply chain or the customer in regards to their product.
By being able to put your whole supply chain on the Blockchain you can mange better and increase speed and efficiency of your network or eco-system worldwide. With complex supply chains it can normally be difficult to achieve. Having the availability of data, transactions and information in real time anywhere in the world through the Blockchain you can increase speed through the system. With a centralized system with many intermediaries this is inefficient and difficult. You require lots of paperwork, interactions with different system, you require trust in the systems that you don’t have access to with intermediaries you may not have met. One system, one protocol, one standard = many ways to optimise!
Having Blockchain in your business or industry helps drive efficiency and reduce cost providing a more effective and economic model. Running a global corporation with offices all over the world, for instance, is by nature costly and inefficient. A business running a project or operation that requires some or all of its worldwide businesses working together can drastically reduce cost, waste, hours, materials, communications, shipping cost, postal costs, electricity, staff, just by having one point of control through access to everything through one immutable blockchain.
By far the biggest cost reduction can come industry wide where whole industry structures can be reconfigured or middlemen removed as everything is transferred onto the Blockchain including government records. So public and Private organisation can drastically reduce their costs.
Blockchain is completely immutable from the first to the last record, it cannot be changed. Having security in Blockchain means you have a trustless network. That network is mathematically secure. You don’t have to know the person that you are dealing with you can trust the system. You can trust the system because you are unable to reverse the transaction nor are you able to say that the transaction never took place, because it is there for all to see.
Blockchain is transparent and this transparency also makes the system trustless. A bitcoin miner can see their reward has been paid for the block that they solve. Someone sending a Bitcoin can see their transaction in real time and see that it reaches its destination. The receiver can also see the transaction being confirmed. It is also open for anyone to see. In a complex supply chain transparency in the system also makes that system trustless. Standards, policies and procedures are adhered to and everyone can see that.
But the 5 benefits that I’ve set out are all constituent parts of Blockchain Technology. Blockchain is system and network of transparency, security, improved traceability, increased speed and efficiency and massive cost reduction in a 21st century global online economy.
Blockchain makes all transactions visible to all parties. These transactions are shared on a ledger dispersed to across a vast network meaning there is no central control or source of the data. In order to alter or falsify historical information on this network, it would require collusion of the overwhelming majority of participants, and likely at cost to themselves.
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.
You can view all transaction data on the blockchain in real-time. This also creates an accurate historical audit of all transactions, transportation, or whatever specific information you are encoding on the blockchain.
Increased efficiency & speed:
Blockchain reduces the need for intermediaries in any area it affects. This in turn reduces cost while improving efficiency and speed. One public ledger also increases speed and efficiency because there is no need to compare multiple ledgers for accuracy.
No need for third parties or intermediaries which means less money going to these services. Don’t trust, verify. Trust in math, not people.
I appreciate any corrections or additions.
All transactions are visable.
Transactions are recorded in blocks which are cryptograhic related to each other. To change things in a blockchain you need so much energy which is impossible to bring in.
All transactions are pseudonymous recorded on a blockchain.
Increased efficiency and speed:
Ones a transaction is send to a blockchain, everyone can see or receive this directly.
Not everyone have to setup a bunch of servers to keep a central database for their own in the air.
Transparency : Blockchain is more transparent as all transactions are approved by a network of computers before recording them on the distributed ledger instead of by one central authority. Since the entries are shared any modifications or manipulation needs Consensus by the network which is highly complicated.
Security : Since blockchain copies are stored across multiple networks its not easily hackable. Immutable nature and traceability ensures transactions are more secure.
3)Improved Traceability : Since all new transactions are linked to previous transactions traceability is useful in many applications such as complex supply chains or financial sector.
Increased efficiency and speed : It has potential of automating many supply chain processes and in other important sectors such as health care and finance. It can reduce the need of auditing and increase the clearance and settlement process.
Reduced cost: Since blockchain is based on maths and set of protocol it reduces the manipulation which increases cost benefits from real estate, healthcare to government sector.
blockchain is type of distributed ledger, all participants have the same content. Adding information can only achieved by consensus. To change or modify a single transaction would be impossible.
Transactions must be accepted though consensus before they are recorded. Once the verified transactions are done, it is encrypted and linked to the previous transaction and stored in the entire network. This is a very good for prevention of hacking or frauds.
Every single transaction can be traced or tracked on a blockchain.
Increased efficiency and speed:
Compare to traditional, paper-heavy way, transactions can be completed faster and more efficiently on a blockchain. All participants have the same digital ledger, clearing and settlement can be done much quicker. Intermediaries are no longer needed.
With blockchain, trust is no longer to be an issue, so third parties or middlemen don’t be needed anymore. This saves a lot of costs. The trading process is distinguished simplified.
Blockchain offers many huge benefits. Since the blockchain is public it offers much in the way of transparency. Data can only be added to the chain via consensus, meaning that the data has already been verified by multiple sources before it has been confirmed and added to the blockchain. Also because of the way the blockchain hangs together changing an item in it would also require every following block to be updated in every single node on the network, which would require a huge amount of collusion.
Security is enhanced by consensus. Every transaction needs to be updated by every node processing it. In a centralised system only one node needs to be hacked, or otherwise corrupted to damage or destroy the integrity of the data. Increasing the number of nodes processing and introducing consensus makes this exponentially more difficult.
The entire blockchain being public, along with its strict order also improves traceability so the history of everything in the ledger can be traced back to the beginning of the ledger.
In a manual system you leave scope for many different type of human errors. Copying data, transmitting data (ie losing a document), misinterpretation/misreading or even deliberate falsification all offer opportunity for the integrity of the data to be corrupted, also human actions tend to be slow especially compared to computer systems. All these errors can be removed.
The improvements in all these areas can also lead to a reduction in cost. Since the data on the blockchain has now all be verified across the network before it has been accepted there is no need to recheck or make guaranties about the data.
Transparency: Blockchain is transparent, meaning that any transactions that is verified, it cannot be modified afterwards. Furthermore, the ledger containing the transactions is distributed and public. Changing a single transaction would require changing all the previous ones which requires a lot of effort and resources
Security: After a transaction is verified, it’s inserted in the blockchain and it is linked with all the previous ones. So, if a malicious threat actor wants to tamper with one transaction, this means that they should be able to tamper with all the previous ones and break consensus. This actions require lots of effort and resources.
Improved traceability: Transactions are inserted in a distributed public ledger and every different network node owns an updated copy of the blockchain. This means that transactions can be easily traced since they are open in the public (except for privacy coins). As a use case, an auditing company could perform efficient real-time auditing for customers.
Increased efficiency and speed: Everyone has access to the same public updated copy of information, so transactions are easily accessible. As a result, efficiency and speed to access the information is increased.
Reduced cost: Since the layer of trust is removed from the blockchain, middle-men and intermediate companies are removed from the supply chain for example. This means that the cost is reduced as well since there is no commision/funds needed for intermediate entities.
Transparency: Public ledger is open for everyone to see transactions.
Security: More nodes = higher security 24/7 365 days a year
Improved traceability: Can track products of where it’s been and where it’s going to
Increased efficiency and speed: Removes middle man and uses global nodes to verify transactions
Reduced cost: Removes middleman and not centralized
Transparency on the blockchain is the distributed ledger being visible for everyone to see. There has to be a shared agreement or consensus before approving or updating anything.
Security on the blockchain is a multi -part process, there has to be agreement before transactions are recorded. Transactions are encrypted and linked together. The network is decentralised among multiple computers not a single server.
On the blockchain all transactions are recorded permanently so there is a track record that can trace a product from origin to destination and everywhere in between.
The blockchain ensures the streamlining and automation of data automatically. This ensures increased efficiency and speed. Due to everyone having access to the same data it is easy to trust each other.
Due to increased efficency and speed, as a result of streamlining and automation, the result is reduced cost. The data on the blockchain can be trusted by all parties.
Everything stored in the blockchain can be viewed by all participants 24/7 (audit trail). Because every participant helps deciding if the data is true or not before it is saved on the blockhain, you can be sure that that data is high quality.
Before data (or transactions) are stored on the blockchain, every participant has to agree if the data is legit or not. So you can be sure that when it gets to the point that the transaction or data is stored indefinately on the blockchain, that data is trustworthy and true according to all the participants on the network. But you have to keep in mind that all depends on how many participants there are and if they are truely decentralised so that no single entity can manipulate other identities.
3. Improved traceability:
The blockchain is available 24/7, so the audit trails on the blockchain can be viewed all time by anyone who has access to the blockchain. Also there is no need for a third party anymore to make sure the data is correct since it is correct by default (if the network has enough security and participators)
4. Increased efficiency and speed:
Because there is no need for a third party anymore to check things manually (to establish trust between the transacting parties) a transaction can happen faster.
5. Reduced cost:
Same here, no need for 1 or more third parties to check/execute things, so the cost of this is also not existing anymore.
Transparency: The data on the blockchain is shared and available to all participating networks. The same documentation is available to everyone with permissioned access.
Security: With blockchain information is stored across a network of computers and that makes it very difficult for threats of hackers or to be compromised.
Improved traceability: With 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: With blockchain record keeping is with single digit ledgers rather than multiple so that is more effecient as well as automating the whole process. And with everyone having access to the information settlements can happen much quicker.
Reduced cost: Blockchain cuts out third parties and middle men because their no longer needed. And it’s the trust in the blockchain data that can make that happen.