Hello all,
First time poster on the SMX boards of HotCopper.
I've found this company while looking for businesses using Blockchain technology. From my reading, I like the idea of what the company is trying to create; an authentication/life cycle audit of products.
My understanding of how the Blockchain element would work within the trueGold venture is as follows;
trueGold
SMX and Perth Mint will need to rally support from a network of gold miners, minters, and retailers to act as nodes within the trueGold Blockchain. These nodes will verify the transactions of gold between these parties. Each node would have to be responsible for deciding whether the embedded signature within the digital asset matches that of the physical asset changing hands. If these signatures match, then each party can track the movements of this digital signature back from the inception block, verifying the current owner, and then adding a new block verifying the new owner of the digital asset within the chain. The last node to possess this digital asset would retain the private key to send the asset to another person.
I love the idea, I like the way this would allow for an easy auditing process of a material back to the mine it came from, the place it was minted, the retailer who owns/sells it.
If this Blockchain system has a large enough group of nodes, any transaction that was not a part of this system ie not peer-reviewed as authentic through trueGolds Blockchain, would have with it, an element of risk, if the owner could not verify whether the gold were real for themselves.
This same principle works for Security Matters Beverages, as well as the plastics and recycling phase of products. I like it a lot, but I have some questions about the Blockchain. My Blockchain background stems entirely from my understanding of cryptocurrencies. Its rudimental, and so I would greatly appreciate any person with a greater understanding elaborating further on the applications of SMX's Blockchain, or simply clarifying or explaining where my understanding is incorrect.
My questions are;
1. What incentives do the nodes have to verify new block within the chain - Think to Bitcoin and the miners rewards of x Bitcoins being the primary transaction on any new block formed within its Blockchain. This reward system gives the miners those Bitcoins, as well as the transaction fees of each transaction within the block, as the reward, for the computational effort of solving the SHA-256 puzzle.
2. Is the Blockchain being created and used by SMX private, semi private or public? i.e PUBLIC - Can anyone become a node (authenticating their own transactions of the digital asset once acquiring the digital + physical asset), SEMI PRIVATE - Can selected and reputable gold companies become nodes (remaining as the hub of future transactions of gold should an owner wish to sell it in the future), or PRIVATE - Will SMX authenticate all transactions acting as a sole authenticating body for the gold encrypted with the digital asset codes? This last option would seem to me to make the Blockchain process redundant.
Any clarification or general comments on the above would be great.
Thanks,
Koopa
Expand
(20min delay)