Distributed ledger investment governance platform learning

Distributed ledger investment governance platform learning

Term Definition Distributed Ledger Technology (DLT) A database that shares, replicates, and synchronizes data between multiple computers or network nodes. Blockchain A chronologically linked and encrypted list of transaction records called blocks. Smart contracts are self-executing contracts that are stored on the blockchain and execute automatically. Cryptocurrency A digital or virtual currency that uses cryptography to secure transactions and control the creation of additional units. Tokenization is the process of converting a tangible or intangible asset into a digital token that represents fractional ownership or value of the asset. Distributed Autonomous Organization (DAO) A decentralized organization owned and managed by its members and governed by rules encoded on the blockchain. Proof of Work (PoW) A consensus mechanism that requires large amounts of computing power to solve mathematical puzzles and add new blocks to the blockchain. Proof of Stake (PoS) A consensus mechanism in which users validate transactions and create new blocks based on the amount of cryptocurrency they hold. Metadata is data that describes other data, such as its origin, creation time, or file size. API (Application Programming Interface) A set of definitions and protocols that allow different software applications to communicate and interact with each other. ERC-20 Token standard for creating fungible tokens on the Ethereum blockchain. ERC-721 Token standard for creating non-fungible tokens on the Ethereum blockchain. Sidechain An independent blockchain that is connected to the main blockchain (e.g., Ethereum) and allows assets and data to be transferred between the two chains. The Internet of Things (IoT) is a network of physical devices connected to each other via a network, allowing them to collect and exchange data.

short answer questions

Specific challenges within the oil and gas industry that are being sought to be addressed.

A: Designed to address friction points in the upstream supply chain of the oil and gas industry that are caused by poor counterparty relationships, low trust, poor technology, information asymmetry and opacity, high capital costs, and listings long time.

Explain how distributed ledger technology (DLT) can reduce costs and make oil and gas trading more efficient.

A: DLT can reduce costs and make oil and gas transactions more efficient by eliminating the need for a trusted third party to verify the performance of jobs, assets and investments. In a distributed ledger system, everyone on the network (or with mutually agreed-upon credentials) can confirm simultaneously, reducing the need for middlemen such as broker-dealers, banks, and tax agencies.

What are the key features of the system described in the application?

A: Some key features of the system include: digital securitization of energy assets through tokenization, a decentralized autonomous organization (DAO) that allows stakeholders to vote on projects, use of smart contracts for automated payments and verification of work , and a reputation-based system that ranks users based on their activity and transaction history in the ecosystem.

How does the proposed token economy benefit service providers, operators and investors?

A: Service providers can benefit from faster transaction speeds and less need to trust operators. Operators have access to capital markets, resulting in faster time to market and lower cost of capital. Investors can earn by selecting projects funded by the platform, earning rewards through premium project selection, and driving token appreciation through superior asset performance and greater capital inflows.

Explain the concept of “crowd wisdom” and how it relates to the decentralized investment governance approach in .

Answer: “Crowdwisdom” refers to the concept that the collective wisdom of a large group of people is superior to that of a small number of experts when making decisions. Decentralizing the investment allocation process leverages the “wisdom of crowdfunding” by allowing token holders to vote on projects and rewarding successful project selection through a reputation-based system.

Describe some of the requirements that operators must meet in order to participate in the platform.

A: Operators must obtain ratings in the system based on strict criteria, enter details of their energy projects (including existing production, offset well flows, well age, well type, basin and jurisdiction) into the user portal, select the job Equity/Royalty Interest and Profit Sharing Parameters and the possibility of issuing cryptocurrency collateral for certain field development efforts.

How does a reputation-based system build trust and accountability within the platform?

A: The platform uses a reputation-based system that ranks users, including operators and service providers, based on a variety of factors such as their lifetime returns, project ROI, success rate, project size, team and service provider’s Ranking, timely payment history, litigation history and basic information. This transparent reputation system helps build trust and accountability among platform users.

What incentives and disincentives are present in the voting mechanism outlined?

A: Voters can increase their proxy voting weight by successfully selecting projects, which may increase their potential returns on future votes. Conversely, voting in favor of a project that ultimately fails may result in a voter having less crypto-bonds and lowering their credibility score, requiring a larger stake to participate in future votes.

How does the platform protect the interests of investors in the event of operator bankruptcy?

A: If an operator goes bankrupt, the platform will first act as an auctioneer in its internal auction system, giving token holders the opportunity to bid on these assets. If the platform’s ecosystem does not produce a winning bidder, all tokenized properties in the operator’s project will be transferred to a public fiat auction, and the proceeds will be distributed to token holders as a one-time cryptocurrency dividend.

In addition to the Cardano blockchain, what other technologies were mentioned and how do they enhance the functionality of the system?

A: In addition to the Cardano blockchain, there was also mention of the Tangle protocol, a decentralized ledger technology for machine-to-machine communications. Tangle’s capabilities complement Cardano’s capabilities, particularly in oil field automation, allowing for fast, low-cost transactions and data verification