- No Need for Third-Party Verification
- Costless Verification
- Smart Contracts
- Unbundling of Services
- Lowering Costs
- Self-Contained Transactions

Advantages of Cost Verification on the Blockchain

- Last Mile Issues
- Online and Offline Connection is Not Easily Feasible
- Costless Verification is Hard to Achieve in the Real World

Disadvantages of Cost Verification on the Blockchain

The costs related to verifying information of past transactions, transaction attributes, and current ownership of digital assets on the blockchain.

Indiana University

Blockchain transactions don't need intermediaries for third-party validation. Less oversight is needed since the "policing" of the system is distributed over the entire network. 

Cost effectiveness of blockchain

Catalini, C., & Gans, J. S. (2020). Some simple economics of the blockchain. Communications of the ACM, 63(7), 80-90. https://doi.org/10.1145/3359552

Some Simple Economics of the Blockchain

Costs of Verification on the Blockchain

- Reduces the probability of leaving market power in the hands of their founders or early participants
- Less reliance on intermediaries
- Lower privacy risk
- More competition/incentives

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