Blockchain part 2 of 6 – Concepts Underpinning How Blockchain Works

Blockchain’s name is derived from the way the system stores transactions in blocks which are subsequently linked together to form a chain. As the number of transactions grows so does the blockchain. The blocks record the time and sequence of the transactions. Each block possesses digital fingerprint in the form of a hash (maps a set of inputs to a set of outputs). The hash connects all the blocks together and prevents any of the blocks from being manipulated. This process of linking the blocks strengthens the verification process. There are four key concepts undermining how Blockchain works:

  1. Permissions – Blockchain can be permissioned or permissionless. From a business perspective, Blockchain will always be permissioned. Permissioned Blockchains allows for greater ability to constrain network participation and restrict transaction details, allowing businesses to comply with new data protection regulations.
  2. Shared Ledger – All transactions are recorded on a shared ledger. The ledger is permissioned, so participants can only see the transactions they are authorized to view.
  3. Agreement – Transactions are posted to the ledger through various forms of agreement, including the following:
  • Multi signature – A majority of validators must agree for a transaction to be valid.
  • Proof of stake – to validate transactions, participants must hold a percentage of the networks value.
  1. Smart Contracts – Is a set of rules that is automatically executed as part of every transaction on Blockchain. Smart contacts are designed to provide security that is superior to common law, while avoiding the costs and delays associated with traditional contract law.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

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Posted on April 19, 2018 by Jack Gahan

Blockchain part 1 of 6

Overview

Blockchain is an operating system like Microsoft Windows or MacOS. Blockchain is a shared ledger that enables the process of recording transactions and tracking assets. These assets can be tangible items such as a house or intangible item such as copyrighting and patents. Blockchain can enable any item of value to be tracked and traded. Bitcoin is just one example of the many applications that can be run through this operating system.

Improving Efficiencies in the Business Network 

The traditional method of recording transactions and tracking assets involved the participants of a network keeping their own ledger. This process was expensive as it needed the involvement of intermediaries, which in turn lead to fees being charged. Blockchain can alleviate this process as participants are able to share a ledger. Once the ledger is shared it can be updated through peer to peer replication. This means that each participant in the network acts as both publisher and a subscriber. Blockchain implements a consensus model to validate information, meaning transactions are secure and verifiable.

Key Characteristics of Blockchain

  1. Consensus – All participants on the network must agree authenticity of the transactions.
  2. Authentication – Participants must verify where the asset came from and track its ownership over time.
  3. Unchangeable – Once a transaction has been recorded in a ledger it cannot be altered. If a transaction is posted in error; A new transaction must be posted to amend the error.
  4. Completeness – The shared ledger is the one place to go to establish the ownership of an asset or the completion of a transaction.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on March 19, 2018 by Jack Gahan

What is the Local Infrastructure Housing Activation Fund (“LIHAF”)?

The Local Infrastructure Housing Activation Fund (LIHAF) is part of the Rebuilding Ireland Programme. Announced last July and approved on the 28th March 2017. The fund totals €226 million and will be used to improve Ireland’s strategic infrastructure and increase the number of houses. It is hoped the fund will lead to the development of 23,000 new homes by 2021.

Purpose of the Fund

The objective of the fund is to provide the public with modern infrastructure to relieve current critical infrastructure blockages, thereby accelerating the delivery of houses in key urban areas currently experiencing housing shortages.

Local public infrastructure such as access roads and public services had been previously being paid for by local authorities from revenues received from local development projects. These costs were in turn passed on to the purchase price of the property. The serious decline in housing development since 2008 meant that local authorities no longer have the resources to fund the provision of local public infrastructure. Leading to a serious deterioration in local public infrastructure.

How Many Proposals Have Been Approved and what is the Cost

Over 34 proposals have been granted across 15 local authorities. The total cost of the project is €226.46 million of which €169.65 million is to be funded by the exchequer, and the remaining balance of €56.81 million will be funded by local authorities. Half of the funding will be provided to Dublin, a total of €113 million and its 4 local authorities. Cherrywood alone is expected to receive €15.9 million in funding for 8,000 planned new homes. Cork city and county councils will be receiving €46 million, with the remaining €67million to be divided among the rest of the country

How Many Additional Housing Units will be Provided

The fund has the potential to deliver 23,000 houses across the country by 2021. These houses are to be apportioned nationwide as follows:

  1. Dublin Area – 14,000 additional units will hope to be provided by 2021.
  2. Cork Area – 3,000 additional units will hope to be provided by 2021.
  3. Rest of the Country – 6,000 additional units will hope to be provided by 2021.

For more information please visit http://rebuildingireland.ie/news/local-infrastructure-housing-activation-fund-announced/

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on October 4, 2017 by Jack Gahan

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