Join the Blockchain Revolution

Come, Join and Engage the Blockchain Revolution

The blockchain is a type of database. Unlike current relational database systems, it is based on a shared database technology that provides inherent data integrity and security to facilitate unshakeable trust among its authorised users. The blockchain is the emergent database standard in a future where business and social processes connected by ubiquitous computer networks are unified by impersonal trust embedded in decentralised data for its integrity and security. The blockchain allows the confident trading and transaction of assets eg property, currency, information, certificates, secured papers and other valuables eg paintings and art, without the fear of counterfeit asset ownership or unauthorized changes of the transaction details.

A blockchain is so-called because it is indeed an unbroken continuous “chain” of blocks of data structure. Each block is linked to the previous block by a cryptographic algorithmic “hash”. A “hash” is a digital code which is mathematically generated by an algorithm in a special computer program. As it is practically impossible to reproduce or duplicate the “hash”, the resultant impact is to empower the blockchain with its distinctive character of immutability and permanence. 

Transactions can involve both financial payments as well as non-financial exchange of value. Participants in a blockchain use the same software applications on their terminal devices or “nodes” eg desktops, notebooks, mobile phones, which have no central owner or controlling authority. Together, they form a distributed and decentralised computer network in the crypto-cyberspace of the internet. 

When the computer network platform has received verification and validation from most of the network computers (“nodes”), the authenticated transactions are bundled or “blocked” to be stored chronologically (“chained”) together with other similarly validated transactions. Digitally and organically connected, a blockchain of related blocks of data-structure becomes a ledger in cyberspace which records the listings of transactions among and between peers on the same blockchain network who have been granted permission and access privileges to create, exchange and modify its data elements. Some types of blockchain designed for public users also allow for permissionless access, but these often also require verifiable personal identification.  

In essence, the immutable blockchain is a cyberspace ledger containing trusted and transparent information regarding ownership, and serial ownership, which have been authenticated and agreed by its validated network participants. Since it does not depend on human entities or third parties for trust validation, the decentralised blockchain itself thus becomes the new trustless standard.

In a developed blockchain system populated by many blockchains, a blockchain is able to communicate with other blockchains and their users on compatible platforms. This interoperability within and across blockchain platform builds the essential interconnectivity through suitable decentralised dynamic applications (Dapps) to leverage on the immutability, transparency and trustless-worthiness of the blockchain data structure. The interactions of decentralised blockchains in a blockchain cyberspace synergise and strengthen each other to grow the omnipresent and ever-expanding blockchain ecosystem.

Blockchain Creates Competitive Value Advantages

Blockchain technology refers to the capacity and capability to create immutable digital data-set that can be shared on a distributed network in such a manner that enables “hash” chains to store, maintain, organize, access and manage securely according to a consensus mathematical algorithm.

Blockchain technology can streamline business processes by facilitating transactions among various stakeholders in the business eco-system. Its platform engine drives data and information management to new levels of efficiency and effectiveness. Decentralised and immutable, blockchain technology unblocks new opportunities to embolden fresh and innovative approaches to disrupt legacy internet paradigms and further enhances the customer experience by re-constructing, re-engineering, re-configuring and re-calibrating the business process. Enterprises in various industries are designing different blockchain adoption models with unique proof of concept (POC) schema to suit their needs and circumstances. No single blockchain can be expected to address and resolve every issue and problem.

Swish Labs has suggested some factors that have contributed to increasing demand for blockchain technology in enterprises:

·        Reduced administrative cost and fast processing of transactions

(use of smart contracts eliminates the extra efforts in clearing, settlement, etc.)

·        Reduced chances of fraud, human error or manipulation

·        Enhanced yet controlled transparency

·        Elimination of extra charges of offline reconciliations

·        Secured settlement of cross-company transactions

·        Real-time data access

·        Authorized access

·        Reduction of redundancy in the organizations

According to a McKinsey study, “approximately 70 percent of the value at stake in the short term is in cost reduction, followed by revenue generation and capital relief.” Implementing blockchain technology has positive productivity and efficiency impact as it leads quickly to manpower, material and organisational cost savings through the elimination of redundant record maintenance, auditing and reconciliation processes. Post-blockchain value canvas will show the shifting value flow from obsolete systems to new value offerings and real revenue from blockchain-linked services like smart contracts. 

The innovative smart contract is empowered by blockchain technology which has motivated its functionality development. Smart contracts are straightforward computer programs which assess, verify and implement or execute a contract. They deploy embedded coded instructions automatically according to specified pre-set terms and conditions in an irreversible (ie. immutable) manner and render the smart contracts trackable through specially-designed Dapps software. The Ethereum blockchain platform is one of the most popular for the creation and implementation of complex smart contracts. Other blockchain platforms with different capabilities which are also optimised for smart contracts include Corda, Hyperledger and Monax.

The advent of smart contracts also disrupts and challenges legacy mental constructs of financial assets. Smart contracts facilitate value exchange through the use of “tokens”. A token is a uniquely coded string of characters generated by a special complex mathematical algorithm in special computer software. Nearly everything considered of having some tangible value can be tokenised.

Tokenisation is a process using blockchain technology to digitise and digitalise real-world assets and convert rights to the corresponding assets on a blockchain. The tokenisation process transfers the information and whatever associated values of real-world assets onto a blockchain. In a sense, tokens represent the fractionalized ownership of the assets, thereby allowing cost optimization to make them more tradable and profitable.   

Tokenomics combines blockchain tokens with the economics of business. It is the emergent business model without intermediaries which leverages on the embedded value (token) in the blockchain data-set for the exchange of valuable real-world goods and services within a blockchain ecosystem. And as blockchain ecosystems multiply and expand with increasing functional interoperability, the blockchain token becomes the new currency and legal tender in the “tokenomy” of blockchain space. A cryptocurrency like bitcoin is a type of blockchain token. The critical role of smart contracts in this new tokenomy is beginning to create impact in the areas of financial engineering, insurance, logistics, real estate, manufacturing, retail and distribution.  

Business Use Case - A Blockchain Concept for Multi-Sector Projects

The Concept envisages building a blockchain ecosystem on the IBM Hyperledger Fabric to host a blockchain-driven cryptocurrency (DGi$) and (eventually) other blockchains containing both transactional and non-transactional data. Our mature blockchain ecosystem shall eventually be a hybrid of blockchains and conventional off-chain database solutions. 

Our blockchain project sits on an initial 100,000 hectare area capable to produce 100 million tons of woodchips, creating 50,000 jobs and trap 80 million tons of carbon dioxide (CO2).

The genesis blockchain is built on tree saplings valued at US$1.00 or DGi$1.00 each. Each tree will mature in 3 years to be harvested as woodchip (and biochar) with a current market price of US$150 per metric ton (or per 1,000 kilogram [kg]). Each tree upon maturity is capable to conservatively yield 200kg of woodchips worth US$30,000; meaning each single DGi$ secured by a tree would also have appreciated to DGi$30,000 within 3 years. And each hectare of land can yield 1,000 metric ton of woodchips worth US$150,000,000 or DGi$150 million. In this manner, dynamic real world assets act to enhance digital value and add authentic tangible value to the DGi$ cryptocurrency token. DGi$ can therefore be used for tokenisation and also become the reference value standard for other tokens.  

All value transactions use the DGi$ cryptocurrency as the value standard. The DGi$ Exchange is a decentralised bank which channels DGi$ to the wallets of permissioned members. A smart contract contained in the wallet converts fiat and other currencies into DGi$, and vice versa, based on fixed exchange rates as determined by a crypto-mathematical formula at the DGi$ Exchange. Certain payment and security tokens are also acceptable depending on the consensus of consortium partners. Project investors are required to inject their fiat currency commitments (eg. US$, RMB, Euro€) into the DGi$ Exchange where they shall be converted into DGi$. The DGi$ Exchange disburse payments into the wallets of permissioned members. Increasing widespread use of DGi$ will strengthen its value and enhance its security token function. The DGi$ blockchain continually re-calibrates its exchange value in a transparent manner among its members and the DGi$ Exchange will update all the wallets regularly accordingly via the smart contracts within them.

The genesis blockchain, as a ledger for cultivation, weather data, sensors, maintenance and harvesting to transportation logistics, power generation, production centres and customers, establishes provenance traceability and serves as a decentralized database for real-time data on forest management and tree quality to enable supply chain partners to verify the quality of woodchips. Other blockchains would be created to link or relate to it eventually. 

IoT-linked technologies, carbon credit trading, tokenised green bonds and sustainable forest management practices like REDD+ can leverage on and benefit from the blockchain trust and smart contracts to attract investors to the many spinoff ventures and infrastructural projects in eco-energy, eco-industry and eco-city expected to be spawn in this Project. There are abundant tokenisation opportunities using the dynamic DGi$ to tokenise the equity of special purpose vehicles (SPV) created to execute the numerous projects. This is the beginning of a golden era of blockchain tokenomics in the digital future.  The next step is to gather a consortium of stakeholders and relevant parties to develop the POC Masterview and bring the Project to profitable fruition over the coming years.     

Let Your Blockchain Adventure Begin …

The distributed consensus character of blockchain technology is a game changer.  It transforms your business by getting you to do things differently and digitally. In so doing, blockchain technology emboldens and empowers innovative and better ways to enrich the customer experience through boosting and upgrading customer value.  The blockchain ecosystem modifies the business model, re-invent the value chain and use decentralised and distributed digital technologies to create new lines of products and services. Smart contracts modernize and simplify key business processes to reduce cost and improve productivity with positive profitability and revenue impact.

The blockchain revolution is not wholly technological. It also demands a mental cybernetic reconstruction of everything data-based and informational that we have become accustomed for work, living and play. Fundamental cultural changes and mindware openness are needed to make sustainable the strategic, operational, management and technological changes of the blockchain ecosystem. New approaches to data and information management using digital technologies and automated business processes without intermediaries are the emergent way of life. The blockchain future is already here. Embrace it.