In this video, we'll outline the benefits of shared knowledge on blockchain. We briefly discussed how transparency is major benefit of blockchain. Now, let's look at the how and the why of this. To understand transparency as a unique feature, we must first understand blockchain's most basic functions. We begin with attribution, the most critical piece of both asset ownership and a contract. Attribution requires knowledge of two facts: who holds the asset, and who has created it and is party to the contract. A blockchain stores this information by recording where the asset originated and tracking changes of ownership. Ownership is attributed to an address or public key. An address is like an identifier. It's made up of a simple set of letters and numbers. In principle, the addresses and identities are what's called pseudo anonymous. Transactions recorded on blockchain means multiple parties within the network can see past actions and current ownership of assets. This distributed ledger, as opposed to a centralized database, creates a network of shared knowledge. Everyone in the network can see it building in transparency. Had Enron's management use blockchain, it may not have become the cautionary tale that it is today. With blockchain, Enron's different business units would have had a traceable, verifiable, and auditable record of transactions. This would have enabled stakeholders, regulators, auditors and shareholders to have better information about the company's operations and finances. Giving investors and regulatory bodies some access to the movement of assets and liabilities inside a company could prevent lies, corruption and bankruptcy. Disclosure is a natural process and added benefit of blockchain-based transactions. Audits are time consuming, and they're expensive. They are also not always completely accurate. Oftentimes financial information is so voluminous that auditors use a simple random sample of, say, inventories to get an estimate of the actual goods held by accompany. Sometimes these estimates are wrong, and even with the tricks of the trade, audits and financial reporting are so burdensome that we only see the results periodically, such as every quarter. On the blockchain, all transactions are recorded and stored in an immutable trusted ledger. Thus, everyone in an enterprise from managers to employees can view the same information on the network. This makes periodic accounting statements relics of the past and means more reliable, robust and complete financials. If we reduce information asymmetry and increase shared knowledge, we can use resources more effectively elsewhere and enterprise can increase investments in research. It can use funds to build better products, and it can even invest in new employees. Blockchain technology can therefore be a catalyst for the greatest benefit of all: growth. Transparency is a theme of Blockchain Revolution, my book with Don Tapscott. If you have any questions, please check out the discussion forum. Up next, we delve into levels of transparency and ask: Can you have too much transparency?