The Bitcoin Masterclass (Zurich) Day 1
Dr Craig S. Wright, Chief Scientist at nChain, recently held the third edition of his Bitcoin Masterclass series at an exclusive venue in Zurich, Switzerland. The Masterclass course forms part of a monthly series aimed at helping attendees understand the fundamentals of Bitcoin and the technology behind it.
The Bitcoin Masterclass series will give you a comprehensive overview of Bitcoin’s history, theory and design. Wright discussed the future of Bitcoin and the unbounded scalability of nChain’s blockchain solutions, focusing on accounting and mapping transactions on-chain.
In the third session, Wright discussed tokenising processes and how putting products on-chain can directly benefit companies and consumers. He drew from a real-life example dealing with shipping in Mumbai and how the process was weighed down by endless pieces of paperwork, stamps, and signatures.
Improving efficiency through tokenising
Wright highlights the potential for significantly improved efficiency by utilising blockchain technology. By tokenising various processes, such as interactions with documents and containers, a comprehensive record can be established. This approach guarantees the authenticity of each document and safeguards against any unauthorised tampering or interference throughout the entire journey.
He added that mapping transactions on the blockchain provides users with convenient access to data, serving purposes such as accounting, taxation, legal compliance, and more.
By securely storing this data on the blockchain, users can confidently locate and retrieve it when needed, preventing potential legal penalties that may arise from the inability to produce the required information. This approach eliminates disputes regarding the occurrence of certain events, a crucial aspect often encountered within legal proceedings.
Atomic swaps
Wright also discussed the concept of Atomic swaps – the trustless exchange of different assets without counterparty risk. Atomic swaps typically utilise smart contracts, which are self-executing agreements coded on the blockchain, to facilitate peer-to-peer exchange.
These smart contracts contain the necessary conditions and rules for the swap to occur. The process typically involves the use of time-locked transactions and hash locks to ensure the security and integrity of the swap.
Wright noted that swaps can extend beyond cryptocurrencies and encompass the exchange of goods, information, and services between different entities. For instance, one could utilise swaps to trade a contractual document stored as a non-fungible token (NFT).
Swaps also play a crucial role in sectors like manufacturing – and Wright gave the example of vehicle components. He noted that the ability to securely and reliably exchange information across the systems involved in such processes proves to be inherently valuable. Furthermore, having precise knowledge of the status of individual parts like tires contributes to minimising potential issues that may arise.
He added that the concept of swaps extends beyond financial transactions and finds practical utility in exchanging goods, information, and services. This versatility becomes especially beneficial in fields like manufacturing, where reliable information exchange ensures smoother processes and reduces the likelihood of problems.