LionRT Proof of Relations

Here we provide reason why LionRT decided to make Proof-of-Relations as the standard protocol for supply chains.

Bitcoin Model

Bitcoin’s Proof-of-Work is detrimentally inefficient. The technology has potential to quickly turn in to disaster as it’s increasingly acting as a poison to the planet’s limited natural resources. “Miners” compete to solve hashsums spanning millions or billions or more records long.

proof-of-work model

Ethereum Model

Ethereum’s Proof-of-Stake issues a new block on each deterministic transaction. In this manner, there is no longer a need to calculate expensive hashes, and instead to simplify calculations to the point where peers on the network benefit from a very small transaction fee. The key is there are many infinite blocks, each pointing to a history of deterministic transactions, and the benefit is distributed in a volumetric rather than resource and risk intensive reward.

There remain two outstanding issues with this model as applied to the supply chain:

  • The blocks are deterministic, supply chains are often not.
  • The blocks are resistant to being finite.
The latter point in particular made these types of contracts not suitable for the purpose of supply chain or finite operations in the real-world.

First, there is no inherent archival mechanism. It’s not known whether or not or for how long to keep records on ice, at LionRT we do this with a little bit of secret sauce or black magic. It’s just knowledge that goes beyond computer programming.

Second, the change of state of one deterministic and discrete block will change the state of all it’s other pre-deterministic and related transactions. This process is accompanied by the Ethereum (and every crypto-currency in general) model of charging a fee for changes to a block. In short, it’s not economically viable to update the state of many blocks in these systems, especially as their prices may balloon.

The last reason is the peer-to-peer mechanism of validating the transactions, and in the case of expiring contracts there is a reliance that miners can potentially respond instantaneously. Such as in the case of raising a claim, you can ask someone to wait 24 hours or you can instantaneously validate a claim after validating the sanity of the claim request based on the contract.

Needless to say, at LionRT we don’t want instantaneous claims to have a queue, and further to rely the contract’s time sensitivities to any third parties. Private transactions, such as HIPAA compliant operations, require a private and internal validating mechanism.

Hence, Proof-of-Relations

Our graph database creates associations in one finite, discrete, and non-deterministic block.

LionRT proof-of-relations

With this model, we have opened new possibilities. The blockchain is real, and it will noticeably be recognized as the fusion between cloud and physical. Our customers benefit from this fusion, and we hope to contribute to the positive effects of improving efficiency and quality of life.