Yes, it is running on Ethereum blockchain. I don't really understand the details either, but my impression is given the WP etc that I think the whole proof of value thing is meant to be a product enhancement of proof of work blockchains, not a protocol by itself. That goes back to the idea of this derivative utility I suppose. It's actually quite a clever discovery once you get your head around it, though if it doesn't come naturally to you then I sympathise with you. Either way wouldn't spend too long on it as it seems more concurrent with financial markets innovation than core dev of any sort