The Technical Details
What is a blockchain

The ‘World Economic Forum’ anticipates that 10% of global GDP
will be stored on the blockchain by 2025. So, what is it?

Blockchain has the potential to make the world more secure and better governed. The rapid development of technology opens up opportunities for society that were undreamt of a decade ago.
Blockchain is a distributed ledger that records digital interactions in a way that is secure, transparent, immutable, and auditable without having to rely on an often expensive intermediary.
Information can be stored in a chain of blocks or records which are linked using cryptography.
The information in a blockchain can take on any form. It can be a transfer of money, ownership, a transaction, someone’s identity, an agreement between two parties, or even how much electricity has been used by a lightbulb.
The information is verified, by the consensus of more than one device, such as computers, on the network. Once agreement is reached between these devices, it is placed on a blockchain.
As such data cannot be disputed, removed or altered without the knowledge and permission of all those who made that record. It is therefore immutable.

Real world example
An example of how blockchain can be used in practice:

Blocks store information about transactions like the date, time, and amount of your most recent purchase such as from an online store.
Instead of using your actual name, your purchase is recorded without any identifying information using a unique “digital signature,” similar to a one-time username.
Blocks store information that distinguish them from other blocks. Much like you and I have names to distinguish us from one another, each block stores a unique code called a “hash” that allows us to tell it apart from every other block. Hashes are cryptographic codes created by special algorithms.
“The potential of blockchain is too big to ignore. A number of governments and companies across many industries have recently started to implement blockchain-based solutions to increase the efficiency of their processes and reduce costs.”
“L3COS will be the first blockchain-based operating system to provide the infrastructure to encompass every required economic and legal activity.”

Consensus

Consensus protocols are one of the most important and revolutionary aspects of blockchain technology.
These protocols create an irrefutable system of agreement using a smart contract between various devices across a distributed network. It means that no one is able to edit information in the system, because if consensus is not reached across the system, no new block will be created, nor will existing blocks be edited, in the blockchain.
These fully traceable automated transactions are executed and recorded between parties in a verifiable and permanent way.

Smart Contracts

Smart contracts remove the need for intermediaries like banks, brokers and lawyers because actions governed by these contracts can be automated.
This removes costly bureaucratic barriers, reduces the time needed for a deal to be completed and makes fraudulent or illegal activities impossible.
Smart contracts make it possible to do away with paperwork and associated bureaucratic procedures. They can remove the risk of incorrect tax rates being applied because the correct rates can be built into the system. Likewise, all other compliance, regulatory, customs and other requirements can also be checked and performed by the system itself – saving time and money.

The L3COS System Solution

L3COS has the advantage of having three layers of consensus making it quantum-safe and scalable with low latency. This means that tens of thousands of transactions and interactions can take place almost instantaneously, free of error.
All business transactions require legal and contractual accountability to the laws of a country. As a permissioned or authorised blockchain operating system, L3COS has built in the ability of governments to maintain that lawful oversight of the smart contracts.
L3COS allows government to maintain control over the blockchain ecosystem by automatically linking its laws, rules and regulations to businesses and individuals.
The system therefore incorporates accountability and is the first universal blockchain ecosystem that can be utilised by national governments and businesses across their economies.
To achieve its vision, L3COS has created 195 super-nodes for each nation to digitalise and give each country the ability to govern using smart contracts.

How L3COS is differentiated

The core difference between L3COS and existing blockchains is it is fully transparent and has a built-in regulatory layer for governments. This feature creates a secure, scalable, resilient and legally-compliant environment.
Under the L3COS operating system, individuals make use of the proof-of-storage consensus level, which stores digital details such as deal details, fees and other information in encrypted form.
With L3COS you are able to interact directly with the government by verifying your ability to vote in elections and businesses, pay council tax and buy goods and services from businesses. L3COS enhances digitalisation and eases the burden for us all whenever we need to prove our identity when applying for a passport, proving immigration status or securely filing tax returns, all of which currently can involve overcoming significant administrative hurdles.
Under the Delegated Proof of Storage consensus, L3COS provides access once businesses have passed Know Your Client, Anti-Money Laundering and the Counter Financing of Terrorism verifications to the Proof of Government consensus level.
By providing access only to firms that have been verified, businesses, large and small, can use the delegated Proof-of-Storage consensus level on L3COS which allows them to co-operate with their government, each other and their customers.
L3COS also supports regulated token issuance, which makes it possible to meet requirements for central bank digital currencies, industry tokens and other kinds of stable coins.
What do we mean by quantum-safe?
Quantum computing dramatically enhances the ability of computers to solve problems and challenges, which means it is possible for some blockchain-administered solutions to be undermined.
L3COS’ advantage is that it is quantum-safe. The nature of its cryptography means it is impossible for sufficient quantum-computing power to corrupt its system.
How fast is L3COS?
L3COS is fully scalable and can process tens of thousands of transactions per second. For comparison, Visa – the most widely used payment service provider in the world – processes 1,700 transactions per second.

L3COS system use cases

As a world-first system with three consensus levels, L3COS digitizes relationships across the economy. In addition to existing blockchain usage, L3COS provides participants with a complete set of tools that businesses or individuals need for activities such as making payments, storing and providing information, or legal and regulatory operations such as obtaining new passports or registering a patent. Here are some examples of how the L3COS blockchain based operating system and its smart contracts could be deployed:

Digital Identities

The UK Government announced in September 2020 that it will begin a consultation on the development of legislation that will create digital identities for UK citizens. Currently, there are problems with creating the cast iron guarantee that the individual matches the official identity. This allows the opportunity for fraud.
As L3COS is a permissioned system, it has built in the ability of government both to oversee and then authorise the issuing of digital identities to its population. This will allow all individuals to immutably verify their own identity and allow only that person to access government services. There will be no need to revert to certified hard copy documents to prove who you are.
By securely linking up existing government identity databases, verifications are automatic and secure which will cut the time and eliminate all the obstacles between applying for government services and receiving them.

Management of vulnerable customers

One of the biggest challenges currently facing financial services firms is providing support to vulnerable customers in determining that they receive the appropriate products and services for their needs.
By securely drawing upon other data points (including medical, financial and legal records), companies using the legally compliant elements of the L3COS system can be sure that the customers they are dealing with are able to take decisions in their best interests or substitute a power-of-attorney equivalent to help represent their interests.

Senior management certification regime

By creating immutable digital records for individuals, it is possible to ensure that anyone who has previously been convicted or charged or dismissed from positions of fiduciary or legal responsibility, are not able to operate in another jurisdiction without the government’s or regulator’s knowledge. By having the ability to integrate with government, L3COS can ensure the immutable security of the lists of those who are judged ‘fit and proper’ individuals. Only those who are deemed legally compliant and meet what may be stricter requirements of the UK will be able to transfer and carry out executive business functions.

Secure patient details

Healthcare data can be spread across multiple sites such as hospital records, GP surgeries, dentists, specialist consultants, medical insurers and many others. This information is often duplicated in places and not shared in others due to concerns around data privacy and transmission. However, the L3COS system encrypts patient data in an authorised way which can be (at the patients request) shared amongst all their healthcare professionals who have been permissioned to receive it. In doing so, personal medical records can also be updated automatically and securely ensuring the patient receives the best care based on the most up-to-date information regardless of their physical setting.