blockchain-intro (2)
TRANSCRIPT
Blockchain
An introduction by Fuzzelogic Solutions
About Fuzzelogic Solutions
Fuzzelogic Solutions is a technology company that provides software design,
builds and delivery, and consultancy services that help create meaningful change and ease to modern consumers across multiple platforms.
Intro
➔ WhatDefinitions
➔ BenefitsThe reason to care about it
➔ How it’s usedBasic usage defined
What is a Blockchain ?A ledger (database) that maintains a continuously growing list of secure transactions (data records)
In more detail
Blockchains are ledgers (like Excel spreadsheets) but they accept inputs from
lots of different parties (groups). The ledger can only be changed when there
is a consensus among the group. This makes them more secure, and it means
there's no need for a central authority to approve transactions.
Benefits
Can’t cheat it and secure
Anyone can verify that you’ve placed that information because the container has your signature on it, but only you (or a program) can unlock what’s inside the container because only you hold the private keys to that data. Securely.
Smart Contract
A smart contract is equivalent to a little program that you can entrust with a unit of value (as a token or money) and rules around that value.
Currently - Centralised TransactionsEach institution maintains its own secure ledger and operates via a clearing house.
Transaction begins in an institution on their ledger (database) -> to the clearinghouse and translated onto their ledger and, once cleared, sent on to the recipient and then translated onto their ledger.
You now have multiple incompatible versions of the truth.
$ £
Blockchain - Distributed transactionsEach institution is bound together via the distributed ledger (database) The starting point that you assume when applying smart contracts is that third-party intermediaries are not needed in order to conduct transactions between two (or several) parties.,
The parties define and agree on simple (or complex) rules, and they embed them inside the transactions, enabling an end-to-end resolution to be self-managed between computers that represent the interests of the users. Smart properties are digital assets (or things) that know who their owners are.
1 Single shared truth shared across all parties
$ £
Transaction ● Transactions are grouped together in a block. The chain is multiple
blocks linked together. ● Blocks are numbered in ascending order starting at zero● Arrows go from newer to older blocks.● Blocks represent a set of events that occurred over a period of time
(since the last block).
1 03 25 4
Blockchain Technology is adaptable to a wide range of transactions including: ● Effectuating transfers of digital assets● Transactions in securities and derivatives● Recording sales of physical assets, such as tangible personal property and real property.
Blockchain also makes possible the use of so-called “smart contracts,” i.e., contracts embedded in computer code that can implement themselves automatically upon the occurrence of discrete events.
Smart contracts examples: ● Automating rent payments in leases where rent is a function of revenue; ● Automatic coupon payments based on the calendar day; ● Automating royalty payments when payments are based on the number of seats currently in
use for a software license; ● Automating advertising payments for web clicks.
Blockchain Technology promises to automate many of the existing labor-intensive processes required to settle financial transactions, thereby increasing the speed at which such transactions can be conducted and lowering transaction costs. For example, manual processes of recording transactions in databases may be replaced with automated recording of transactions in the Blockchain ledger.
Blockchain technology could eliminate that
clearinghouse by giving each bank in the network its
own copy of the ledger. A common network protocol
and consensus mechanism would allow the
participants to communicate with one another.
Using this method, transactions could be approved
automatically in seconds or minutes, significantly
cutting costs and boosting efficiency.
A good example is in financial services, where trades are often verified by a central clearinghouse that maintains its own central ledger.
Using that process, it can take days to settle a transaction, and the clearinghouse typically collects some kind of fee.
Costs● Development● Usage costs (3rd party provider)
○ Cost / node (server) $0 - $50 per month○ Transaction charge varies
How are transaction costs calculatedOn the chart overview page you find the description "Cost per Transaction: A chart showing miners revenue divided
by the number of transactions.".
Meaning that it’s the total value of the block reward divided by the number of transactions confirmed in that block’s
network
Here is an example with made up numbers: (BTC=bitcoin)
● Block reward is 25 BTC + 0.1 BTC in transaction fees.
● There are 502 transactions in the block.
● Current exchange rate is 367.3 USD/BTC.
25.1 BTC / 502 transactions = 0.05 BTC per transaction
367.30 USD/BTC * 0.05 BTC per transaction = $18.37 per transaction
Success in Action
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