Tally sticks blockchain technology
Bitcoin is a household name, known for foreign remittance, money laundering and the occasional heist. But beyond the headlines it is a stable stress tested mechanism of exchange that will soon be affecting all of us, far more deeply than we might expect.
The principles that underpin Bitcoin distributed blockchain are now being adopted in more widely innovative ways. Although most of the work in this area has been done by entrepreneurial geeks, more recently large businesses in areas like finance, logistics and advanced weaponry are researching and implementing their own Blockchain solutions to solve a myriad of problems. The basic principles of blockchain began hundreds of years ago with the introduction of double entry accounting.
This simple process of matching debits and credits in a ledger reduced errors and increased the legibility of financial transactions. A bitcoin block is like a page in a ledger.
The ledger grows as we add more pages, as with Bitcoin the chain grows as we add more blocks each one chained to the last. The entries in a ledger map to the real world movement of a given currency. Throughout history money has taken different forms. Up until around years ago, wooden sticks known as Tally Sticks were still used to record transactions at a government level.
When recombined, the matching halves would validate each party in the exchange. As a peasant, if I had to give five sheep to the government, I could walk away with half a stick that represented that tax and could subsequently be used as a token to trade with to the value of five sheep - though it may be difficult to spend in the local tavern.
Most money systems are based on currencies backed by the authority of governments and monarchs. In the West, new money is issued by private banks, with central banks acting as a lever of control - changing rates of interest to expand and contract the money supply. Although most central banks are devolved from parliaments, it should be remembered that the act of engineering money supply is a fundamentally political act.
In our current system, known as Fractional Reserve, money is created in the form of loans. This IOU is marked as a credit on the banks balance sheets. Several important qualities are required for a currency to operate. Without a monarch or government to back a currency - how can it gain public confidence? Bitcoin has solved many of these problems through the age old tradition of mining.
In traditional coinage, physical coins made of precious metal have an inherent value. Mining is an expensive, random and hazardous pursuit of a scarce resource. The scarcity and difficulty involved in mining creates an implicit value for the mined substance. With Bitcoin, instead of digging through the earth to find random fragments of metal, we create random puzzles to solve. To incentivise our workers the system will need to offer rewards.
We invite anyone who possesses the relevant bookkeeping skills to come and work at our office to verify transactions. Anyone who completes the task of verifying all the transactions will be awarded a coveted Victoria Coin. This is how new money is created in our system. If we imagine a giant room filled with accountants who are each independently assembling a single page of a ledger for that day's transactions and also verifying historical entries.
It may be quite easy for a particularly talented individual to verify past and present transactions and present them to the master bookkeeper for inclusion - if that was all that was required the quickest scriber would always get there first. What if this speedy scriber was corrupt and could fiddle the books? For this reason it is important to distribute the work.
In order to avoid transaction verification becoming dominated by a handful of superfast workers we need to find a way of randomising which worker may submit their completed work first. We achieve this by giving every worker the same puzzle to solve.
Once the puzzle is solved, only then may they submit their work. The puzzle is too complex to pick it apart and solve strategically, so all our accountants can do is plug in random numbers and hope with fingers crossed one of their guesses are correct. One suggestion is to use the 2 Ls in tallysticks as split tally sticks. See the attached pictures for better illustrations of split tally sticks. Find out how a design contest works or learn more about our logo design services.
Home Logo design Logo design contests Tallysticks logo design. A winner was selected from 56 designs submitted by 20 freelance designers. Learn more about logo design. Entries from this contest. One of the designers who made it happen. Thank you for all your hard work - got the perfect logo. How tallysticks started their logo design journey Who are you known as? Tell us a bit about who you are and the people you reach Tallysticks is an accounting solution that reconciles invoices to payments using blockchain technology.
What industry do you think your business is most related to? To give us an idea of the overall feeling of your brand, let us know which styles you lean towards. Other notes Please visit https: A few key words associated with tallysticks the technology are: Two key companies in the blockchain space are Ripple and Everledger.
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