STSQSI | P013 |
1. Disintermediation:
🔗 Removing the Middlemen: Blockchain allows for the removal of intermediaries in transactions. Traditionally, trusted middlemen were required to ensure functions were carried out correctly in processes like supply chains. With blockchain, these functions can be automated, reducing the need for human intermediaries.
🏭 Example: In a typical supply chain, goods move from manufacturers to distributors, wholesalers, retailers, and finally to customers. Blockchain could allow customers to place orders directly with manufacturers, bypassing intermediaries while still maintaining trust through automated processes.
🛠 Automated Trust: Blockchain doesn’t eliminate the functions of intermediaries but provides a digital, rule-based alternative. Smart Contracts encode trust, ensuring transactions follow pre-set rules without relying on human intermediaries.
2. Automation:
🤖 Embracing Automation: Blockchain plays a key role in automating intermediary functions between parties in transactions. This automation is secure, fast, and based on immutable trust, paving the way for further automation of interactions.
⚡️ Quick and Secure: Automation via blockchain removes the need for manual intervention, reducing errors and speeding up processes.
3. Streamlining Processes:
🔄 Transparent and Efficient: As businesses transition to blockchain, they often review and redesign their processes, leading to streamlined and more transparent operations. This review process can enhance efficiency and eliminate unnecessary steps.
4. Speed:
🚀 Faster Transactions: Blockchain’s automation and streamlined processes replace time-consuming manual tasks. The absence of intermediaries means transactions can be completed much faster.
⏱️ Immediate Execution: Transactions are processed with machine-like efficiency, significantly reducing the time it takes to complete them.
5. Cost Reduction:
💰 Cutting Costs: By removing the need for intermediaries, blockchain reduces the costs associated with transactions. For example, in a property purchase, the use of Smart Contracts can eliminate the need for agents, lawyers, and other intermediaries, reducing overall costs.
6. A Shift Toward Trust:
🤝 Trustless Transactions: Blockchain replaces the need for trust in human intermediaries with trust in machine-based verification. This concept of "trustless transactions" is a cornerstone of blockchain technology.
7. How to Teach Others:
🛠 Use Real-World Examples: Explain the advantages using examples like supply chains or property transactions to illustrate how blockchain reduces intermediaries, speeds up processes, and lowers costs.
🔗 Focus on Trust and Automation: Highlight how blockchain’s automation and consensus mechanisms create a reliable and efficient system that operates independently of human trust.
By J @nedyajpanapa