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国际商务英语写作模板：商业计划书篇一：商业计划书模板---英文版精编资料商业计划书模板---英文版BUSINESS PLAN TEMPLATEBUSINESS PLAN[My Company]123 Main StreetAnytown, USA 10000123-4567[Your Name][DATE]TABLE OF CONTENTS...商业计划书商业计划书模板---英文版BUSINESS PLAN TEMPLATEBUSINESS PLAN[My Company]123 Main StreetAnytown, USA 10000123-45671[Your Name][DATE]2TABLE OF CONTENTSExecutive Summary ....................................................................................... (1)Management ................................................................................ (2)[Company] History ............................................................................................ . (5)[Product/Service] Description ................................................................................... .. (7)Objectives....................................................................................... . (9)Competitors ................................................................................. .. (10)Competitive Advantages ................................................................................... . (11)Innovation ..................................................................................... . (13)Pricing ............................................................................................ .. (14)Specific Markets .......................................................................................... . (15)Growth Strategy .......................................................................................... . (16)Market Size and Share ............................................................................................... . (17)Targeting New Markets .......................................................................................... .. (18)Location ......................................................................................... (19)Manufacturing Plan .................................................................................................. (20)Research &Development ............................................................................... (21)Historical Financial Data ................................................................................................. .. (22)Proforma Financial Data ................................................................................................. .. (23)Proforma Balance Sheet ............................................................................................... . (26)Cost Control ........................................................................................... (27)Effects of Loan or Investment .................................................................................... . (28)Attachments ................................................................................. . (29)3Executive Summary [My Company] was formed asa [proprietorship, partnership, corporation] in [Month, Year] in [City, State], by [John Doe] in response to the following market conditions:[Startup, growth] opportunities exist in [Product/Service].The need for use of efficient distribution (转载于: 小龙文档网:国际商务英语写作模板：商业计划书)and financial methods in these overlooked markets.[I/We] have several customers who are willing to place large [orders,contracts] within the next three months.Several other prospective [customers/clients] have expressed serious interest in doing business within six months. [I/We] previously owned a company that was active in the widget markets. Over the past few years I spent much time studying ways to improve overall performance and increase profits. This plan is a result of that study. The basic components of this plan are:1. Competitive pricing2. Expand the markets3. Increased advertising4. Lower our unit costs,5. Thereby achieving higher profits.1. Sign contracts2. Increased advertising3. Increase office staffTo this end, [I/we] need investment from private individuals and/or companies. A total of $XXX is being raised which will be used to finance working capital, plant and equipment. The company will be incorporated and common stock issued to investors. The company will be run as a [proprietorship, partnership, corporation].Financial Goals Sales Net Income Earnings pershareYear 1 $25,000 .01 Year 2 $250,000 .12 Year 3 $375,000 .141Management[Name] [Title]??[Experience]??Sales growth from zero to $1,000,000 in five years.??Led market in market share - 30%.Formulated advertising budgets & campaigns.Pioneered new distribution channels. Established national sales force.Established national repair & service centers.Brought new and innovative products to the market.Designed point-of-purchase materials.[Education}University of BostonBoston, MA- Computer SciencesPresidentJohn Q. Doe, Chief Executive Officer, and Director since February 1988 and President since January 1990. Mr. Doe was the founder and Chief Executive Officer of the original operating company known as Random Excess, Inc. He has had experience in the widget field with his own firm, John Doe Co., of Oshkosh (Wisconsin), from 1980 to 1987. This firm was sold to FatCat Widgets, Inc. in 1987.篇二：商务英语写作(商业计划书写作格式)商务英语写作:商业计划书写作格式XX-03-24 13:39:08 来源：爱词霸资讯官网封面(Title page)企业的名称和地址Name and address of business负责人的姓名和地址Name(s) and address(es) of principals企业的性质Nature of business报告机密性的陈述Statement of confidentiality目录(Table of contents)1. 概述/总结(Executive summary)2. 行业及市场分析(Industry analysis)对未来的展望和发展趋势(Future outlook and trends)竞争者分析(Analysis of competitors)市场划分(Market segmentation)行业预测(Industry forecasts)3. 企业的描述(The description of the venture)企业的宗旨和目标（Mission statement and objectives）产品或服务的描述(Description of the product or service)企业的规模(Size of business)产品的进一步开发(Future potential/product development)竞争优势(Competitive advantage)办公设备和人员(Office equipment and personnel)创业者的背景(Backgrounds of entrepreneurs)4. 生产计划(Production plan)制造进程/被分包的数量(Manufacturing process / amount subcontracted)选址(Location)厂房(Physical plant）机械和设备(Machinery and equipment）原材料的供给情况(Sources of raw materials to be supplied)生产能力和提高的可能性(Output limitations，if any，and scale-up possibilities）质量控制计划(Quality control plans)5. 营销计划(The marketing plan)定价(Pricing)分销(Distribution)促销(Promotion)产品预测(Product forecasts)预见的涨价(Anticipated mark-up)竞争对手的反映(Competitors’response)市场份额预测(Market share projection)控制(Controls)6. 组织计划(Organizational plan)所有权的形式(Form of ownership)合作者或主要股权所有人的身份(Identification of partners or principal shareholders)负责人的权利(Authority of principals)管理层成员的背景(Management team background)组织成员的角色和责任(Roles and responsibilities of members of organization)7. 风险与对策分析(Assessment of risks)企业弱点的评价(Evaluate weakness if business)新技术(New technologies)应急计划(Contingency plan)8. 财务计划(Financial plan)各类业绩比率和投资回报(Summary of performance ratios, ROI etc.)销售预测(Sales forecasts)财务预测的假设(Assumptions underpinning financial forecasts)损益表(Income statement / Profit and lossstatement)预测现金流量表(Cash flow projections)资产欠债预估表(Pro forma balance sheet)量本利分析(Break-even analysis)资金来源和运用(Sources and applications of funds)9. 融资需求(Financing requirements)融资前的活动小结(Summary of operations prior to financing)此刻的股东和未付债款(Current shareholders, loans outstanding)资金需要量及时间(Funds required and timing)投资回报(The deal on offer)资本欠债比率和盈利与利息比率(Anticipated gearing and interest cover)投资者退出方式(Exit routes for investors)附录(Appendix)1. 管理人员简历(Management team biographies)2. 职业咨询人员背景(Names and details of professional advisors)3. 技术参数和图纸(Technical data and drawings)4. 专利、版权、设计等(Details of patents,copyright, designs）5. 审计的报表(Audited accounts)6. 信件(Letters)7. 市场调研数据(Market research data)8. 租约或合同(Leaser or contracts)9. 供给商的报价单(Price lists from suppliers)10. 客户的定单(Orders from customers)篇三：英文商业计划书模板英语商业计划书（Business Plan）第一讲：概述第二讲：现状分析第三讲：目标肯定第四讲：组织结构第五讲：产品分析第六讲：市场分析第七讲：市场策略第八讲：生产分析第九讲：财务分析第十讲：附件第一讲：概述(executive summary)概述是整个商业计划的第一部份，相当于整个商业计划的浓缩，使整个商业计划的精华所在。
Globle Currency：新型数字资产质流通系统摘要：比特币证明了点对点电子货币系统的可行性，以太坊建立了基于智能合约的去中心化应用平台，目前多种公链以及私有链、联盟链的大量共存，形成了数据和价值的孤岛。
Globle Currency通过动态同步索引侧链实现跨链资产映射及交换。
1.简介Globle Currency（以下简称GC）是一种通过动态索引同步侧链实现跨链资产映射及交换的系统，所有业务均以智能合约侧链的方式与父级链通过动态索引实现交互。
2.动态索引主链与侧链直接通过主链的Merkle树交互，主链对不同侧链链的索引会使用不同的索引策略，通常会在侧链区块基本可以确认不是孤块之后进行索引。
3.树形侧链通过GC的主侧链架构，以GC为主链，GC的侧链可以成为自身侧链的主链，因此理论上系统可以映射所有链上数字资产并能够通过智能合约无限扩展数字资产业务。
4.代币产出为致敬BTC ，GC 的理论总产出数量被设定为all GC =21,000,000枚，与BTC 总量相等，GC 地址生成算法也与BTC 相同。
GC 的产出方式有两种，BTC 层级置换及算力产出。
BTC 层级置换即使用BTC 按照层级置换比例换取GC ，该方式产出GC 总量为7,000,000枚，BTC 层级置换保证了GC 的价值与BTC 的对应关系，层级的增加对应了GC 以BTC 计价的升值，当置换产出GC 数量达到7,000,000枚或者层级置换停留在某一层级并维持30天，层级置换停止，即GC 的BTC 层级置换产出方式结束，此时如果置换GC 数量不足7,000,000枚，则剩余部分GC 销毁，GC 理论总产出数量将不足21,000,000枚。
第i 层的BTC 容量)26,2min(1+=-i BTC i i 第i 层BTC 置换GC 比例)055.1,)2(055.02max(/(round 21--=-i Ratio Ratio i i 1000001=Ratio 即第1层初始置换比例为1BTC ：100000GC 。
2023年中国元宇宙数字身份体系白皮书1.1.数字身份的概念背 景0 11.2.数字身份体系的发展在全球化和数字化的趋势下，数字经济已经成为各国经济发展的重要引擎。
在数字化活动中，数字身份能够保证数字化活动的安全可靠，使各方权益得到有效保障，为数字经济的健康发展提供支撑。
数字身份是以数字化形式表示的可以唯一识别主体的属性信息集合。
在各数字空间中，用户以各不相同的数字身份进入，在其中被识别和信任，通过特有的身份属性来描述自身具有的特征。
数字身份在社会经济发展中发挥出日益重要的作用，主要体现在：（1）用户体验提升：数字身份保障每个用户的唯一性，以个体数字身份接入网络的用户获得面向个体需求的个性化服务。
随着大数据、A I 技术的发展，针对用户画像的个性化服务比以往更加精准，更好地匹配了用户的需求。
（2）社会效率提升：数字身份认证技术提高，实现了物理空间身份与数字空间身份的精准映射，使过去仅能在线下开展的社会经济活动可以在线上完成，如金融交易、数字政务等。
社会运行效率提高，成本降低。
（3）生产智能化提升：物联网使智能设备接入到网络，能够根据需要自动收发消息、相互协作，推动了生产活动向智能化发展，数字身份的安全应用使设备以可信赖的方式在网络中交换数据，使物联网在智能化生产中发挥出巨大作用。
数字身份的应用生态包括数字身份的签发方、验证方、所有方和验证需求方，各方通过一系列软硬件设备进行交互、协作，共同组成了数字身份体系。
其中签发方是创建和分发数字身份的机构或实体；验证方负责验证数字身份信息的准确性；所有方是指拥有数字身份的主体；验证需求方是对用户身份验证提出需求的实体，一般为各类应用提供方。
为满足数字身份的发展需求，数字身份体系的构建模式在不断发展变化，逐渐形成了多种数字身份体系构建模式。
对于不同的模式，数字身份体系生态各方的关系有所不同。
根据数字身份签发方和验证需求方的关系分类，数字身份体系有两大类模式：（1）身份专用：数字身份签发方和验证需求方两种角色合一，均为应用提供方。
Thor 白皮书2020 年8 月主网上线1，生存和价值展现是终极的辩论。
10 余年时间足以证明以比特币为代表的数字货币完全超越美元和其他法币。
2，价格是有价值资产发生交易后的表象。
无法虚构也不能鼓吹。
3，市场的纠偏能力超过任何媒体集体唱空和唱多。
回归才是价格走向的终点。
4，有价值的数字资产发行一定有相应的价值存储和展现逻辑，世界上不存在没有逻辑的结果。
目录目录取消，建议本文的阅读者从头到尾认真看清每一个文字。
本篇向数字货币的创造者中本聪团队致敬。
同时致敬让我们学习和借鉴的先行者。
他们包括：P A rker lewis李启威Vit A lik ButerinRob ViglioneRoger Zh A ng肖风S A ifede A n AmmousFriedrich August von H A yekIrving Fisher1T1项目背景全球区块链技术发展极为迅猛，全球上线在运行的公链已经超过150 条，应用场景也极为广泛，但是至今为止，在数字货币价值存储上仍没有超越和近似比特币的数字货币出现。
更多的项目都转而倾向于落地应用，使用区块链的激励机制处理原来互联网业务中的存储、通讯、存证等等。
雷神（Thor）是为了优化比特币的价值存储和数字资产发行结构而生。
2货币“作为一个思想实验，想象一下，某种金属像黄金一样稀缺但具有以下特性：匿名、不是良好的电导体、不是特别强大、没有任何实际的观赏用途 .... 它是一种神奇的资产：可以通过通信渠道传输。
”–Satoshi Nakamoto（August 27, 2010）2.1数字货币的机制问题比特币和任何其他类似的货币一样有价值支撑。
货币不是人类的集体幻觉抑或是信仰体系。
在人类的整个历史进程中，各种各样的交换媒介都曾以货币的形式出现，但每一次出现都不是偶然。
所有以货币形式出现的商品都具有区别于其他市场商品的独特属性。
《The Bitcoin St A nd A rd》一书中对此提出了更广泛的讨论，商品货币的稀缺性、耐用性、便携性、可分割性、可互换性和可验证性等都导致其特别适合用来作为交易媒介。
比特币：一种点对点的电子现金系统中本聪【2008年】著摘要.一个完全的点对点版本的电子现金将允许一方不通过金融机构直接在线支付给另一方。
电子签名提供了部分解决方案，但是如果还需要一个可信任的第三方来防止双花，那么这个最大的好处也就没有意义。
我们提出一个用点对点网络来解决双花的方案。
这个网络给每笔交易打上时间戳，并进行哈希计算，放进一条基于哈希工作量证明的链，这形成了一个不可改变的记录，除非重做这些工作量。
最长的链不仅是见证序列的证明，还证明了它来自最大的CPU算力池。
因为大部分的算力由诚实的节点控制，他们将会产生一条比攻击者要长的链。
网络本身需要极小化结构。
消息被尽力广播，并且节点可以随意离开或重新加入网络，接受最长的工作量证明的链作为它离开这段时间发生事情的证明。
1．介绍互联网上的商业几乎完全依赖信任的第三方金融机构来处理电子支付。
对于大多数交易来说，这套系统工作的足够好了，但是依然受到了基于信任模型的天然缺点的困扰。
完全不能撤销的交易是不可能的，因为第三方金融机构不可避免的要调解纠纷。
调解的代价增加了交易的成本，限制了最小实际交易的大小，切断了临时交易的可能性，丧失了对不可撤销服务提供不可撤销支付的可能性，这又是一个广义成本。
因为撤销的可能性，信任的需要不断蔓延开来。
商户必须堤防他们的客户，越来越多的他们本不该需要的信息困扰着他们。
不得不接受一定比例的骗子。
这些成本和支付的不确定问题可以用面对面使用现金避免，但是还没有机制存在使得通过通信信道支付而不需要信任的第三方。
2008年11月1日，一个化名为中本聪（Satoshi Nakamoto）的神秘密码学极客在网络上发布了这部比特币白皮书。
中本聪在2010年底离开该项目，以后关于他的身世、国籍、去向都成为谜团。
摘要中总结了比特币的要点：定位：一个完全点对占的电子现金系统。
核心价值：允许一方不通过金融机构直接在线支付给另一方。
核心技术：电子签名、交易时间戳、基于哈希工作量证明的链（也就是区块链）等。
区块链应用白皮书区块链应用白皮书是一份详细阐述区块链技术应用在不同领域的报告文件。
以下是一份可能的区块链应用白皮书的框架：一、引言1.区块链技术概述2.区块链技术的应用场景和潜力3.区块链技术对各行业的影响和价值二、区块链技术概述1.区块链技术的基本原理2.区块链的类型：公有链、联盟链、私有链3.区块链的技术组件：分布式账本、加密技术、共识机制、智能合约三、区块链技术的应用场景和潜力1.金融领域：跨境支付、供应链金融、数字货币、证券发行与交易、保险、征信等2.供应链管理：商品追溯、质量管控、物流跟踪等3.医疗健康：电子病历共享、药品溯源、医疗数据管理、患者权益保障等4.公共服务：身份认证、学历认证、房产登记、投票等5.物联网：设备互连、数据安全共享等6.版权保护：数字版权管理、知识产权保护等7.其他领域：公益事业、版权保护等四、区块链技术对各行业的影响和价值1.对金融业的影响：降低交易成本、提高交易效率、增强信用体系等2.对供应链的影响：提高透明度、降低风险、增强协作等3.对医疗健康的影响：提高数据安全性和互操作性、降低医疗成本等4.对公共服务的影响：提高服务效率、增强透明度、降低腐败等5.对物联网的影响：提高设备互操作性、降低安全风险等6.对其他领域的影响：提高透明度和可信度、降低成本等五、区块链技术的挑战和风险1.技术成熟度和可扩展性2.数据隐私和安全问题3.法律法规和监管政策4.社会接受度和教育程度5.技术成本和投入产出比六、结论和建议1.区块链技术的未来发展趋势和前景2.区块链技术应用的下一步重点领域和发展方向3.对政府、企业和研究机构的建议和行动计划。
OmiseGO去中心化交易和支付平台Joseph Poon OmiseGO Teamjoseph@work omg@omise.co2017年6月17日摘要OmiseGO正在搭建一个具备去中心化交易、流动性提供机制、清算信息网络和资产支持的区块链网关。
OmiseGO不属于任何一方。
相反，它是一个开放的分布式验证节点网络，网络内的验证节点将约束所有参与者的行为。
它使用协议代币机制来创建股权证明区块链，以便在参与者之间实现市场活动。
这个高性能的分布式网络允许不同资产类别间的交易——无论是由法币支撑的发行方，还是完全去中心化的区块链代币（ERC-20类别以及本地化的加密数字货币）。
跟几乎所有其他去中心化交易平台不同，该分布式网络在无需可信任的网关代币的前提下，允许不同区块链间直接进行去中心化交易。
此外，市场利差将显著下降，并通过去中心化监管以及市场活动透明度的提高来鼓励市场保障。
上述过程通过使用智能合约以及协议代币保证委托交易账本配对的正确性。
这是使用以太坊担保清算活动以及通过使用以太坊智能合约来保证历史交易数据的新结构。
1介绍及问题阐述区块链的主要作用是解决网络参与者间的多边协议之间的协调问题。
通过确保透明度，保障以及执行，我们可以有效达成多方共识，而这在以前是不可能实现的。
当网络内参与各方发现业务不仅透明化，而且运行机制无法轻易改变，那么它们会更愿意进行协调。
参与者显然更能确保，任意一方很难通过改变业务流程或利用信息不对称来强行收取暴利益租金。
换句话说，任何单个参与者都更乐意使用业务流程和机制本身不属于任何其他单个参与者所拥有的系统。
支付处理商，网关和金融机构之间存在着基本的协调问题。
例如，银行的客户希望在另一个网络上支付商家。
过去，建设一个在支付网络和机构之间兼容的支付系统是一项浩大的工程。
这个过程通常是通过建立一个管理交易的交换所，即使用与中央交易对手清算中心或者银行往来帐户的通信网络，例如FedWire，CHIPS，SWIFT，消费者银行卡支付网络，NSCC/DTCC，OCC和ACH。
RSKBitcoin powered Smart Contracts White paperOverviewRevision: 9Date: November 19th, 2015By Sergio Demian LernerConfidentialIntroductionWhy Rootstock is important for the Bitcoin Ecosystem?Alignment of Bitcoin Stakeholders and protection of valueGovernance modelProtection of Bitcoin Miner's InvestmentSecuring the Bitcoin / Rootstock 2-way pegLower Bitcoin transactions fees and stable value asset issuing Bitcoin Security hardeningRootstock as a low-cost BTC payment networkRootstock Use CasesMicropayment channels and Hub-and-Spoke networksPeer-to-peer distributed exchangeRetail Payment SystemsEscrow ServicesCrypto-assets CreationAsset SecuritizationDecentralized remittancesIP Protection / RegistryVoting SystemMicro-lendingSupply Chain TraceabilityOnline Reputation & Digital IdentityIn-game Global CurrencyInternet-gambling and Prediction MarketsFair-playingTechnology OverviewTuring-Complete virtual MachineSidechainSemi-Trust-Free SidechainsDynamic Hybrid Merged mining/FederationFast payments and low-latency-networkRootstock Feature comparisonInstant Payments Technology previewDECOR+ ProtocolThe block propagation protocolTwo Stage Block Propagation (2SBP)Push Missing Transactions protocol (PMT)Delayed Transaction Inclusion heuristic (DTI)Immediate Block Header Propagation (IBHP)Two Prioritized Streams for each Connection protocol (2PSC) Mining on Unverified Blocks Heuristic (MUB)Local Route Optimization Protocol (LRO)Re-using the Bitcoin Mining NetworkThe real topology of the networkThe PoW function Verification TimeClient Networking StackThe Block OverheadSimulationsSafe Merged miningTransaction PrivacySecurityScalabilityProbabilistic Verification and Fraud Proofs ConclusionsIntroductionIn2008Satoshi Nakamoto revolutionized payments by creating Bitcoin.Bitcoin included a very limited implementation of the so-called“smart contracts”,a concept introduced back in 1993 by Nick Szabo.Since then,a lot of research has been dedicated to the creation of new cryptocurrencies that support full Turing complete distributed programs.Now there is a widespread confidence that useful,secure and deterministic virtual machines can be built to achieve this goal.We believe that new use cases are necessary in order for Bitcoin to become the leading global cryptocurrency,and that adding smart-contract capabilities is key to secure that future.With that in mind we created Rootstock(RSK),a smart-contract platform that incorporates a Turing Complete Virtual Machine to Bitcoin.It also provides other enhancement to the network such as faster transactions and better scalability,features that we also believe will enable new usage scenarios.RSK is an evolution of QixCoin,a turing-complete cryptocurrency created back in2013by the same development team.RSK provides an improved payment experience with near instant confirmations.It achieves currently300tps and confirms most payments in less than20seconds.And yet,is still based on the same security guarantees Bitcoin has, supporting SHA-256D merged mining.RSK works as a Bitcoin Sidechain.When Bitcoins are transferred into the Rootstock blockchain,they become“Rootcoins”(RTC).Rootcoins are equivalent to bitcoins living in the Rootstock blockchain,and they can be transferred back to Bitcoins at any time at no additional cost(except for standard Rootstock transaction fees).RTC is the base currency used on the RSK sidechain to pay miners for transaction and contract processing.There is no currency issuance:all RTC are created from Bitcoins coming from the Bitcoin blockchain.Rootstock enhances Bitcoin in the following areas:•Turing-complete Rootstock Virtual Machine (RVM) allowing smart-contracts•Average first confirmation of transactions in 10 seconds•Safe merged mining combining PoW with threshold-signature based federation •Embedded low-delay fast relay backbone into peer-to-peer gossip network.•Two-way pegging using sidechains(currently a federated peg,fully automatic peg subject to Bitcoin improvements)Acronyms:“RSK”refers to the Rootstock(the platform),related terms are“RSK protocol”(the specification)and“RSK reference node”(the reference implementation),the native RSK currency is the“Rootcoin”,and“RTC”is the symbol of the Rootcoin currency,“BTC”refers to the Bitcoin currency and “Bitcoin” refers to the Bitcoin protocol.Why Rootstock is important for the Bitcoin Ecosystem?Alignment of Bitcoin Stakeholders and protection of valueRootstock governance's primary goal is to align the main stakeholders of Bitcoin by creating rewards that are fully aligned with their current activities.This philosophy is directly reflected in its core architecture where Bitcoin miners provide the hashing power required for the proof-of-work block validations,industry leaders (Exchanges,Wallets and Payment Processors)integrate the Federation that creates validation checkpoints and sign the redeem transactions of the 2-way peg.On top of that Rootstock decides improvements to its platform based on a voting system where Miners,Industry Leaders,Bitcoin/Rootstock holders and core developers take the final decision.In the following paragraphs we describe how this incentives play along.Governance modelEach player in the community has the know-how to serve best the community:exchanges and web-wallets know how to protect Bitcoin savings,miners know how to realize large scale mining operations to secure user’s transactions,Blockhain companies innovate in new use cases and makes dreams come true,core developers have the technical expertise to known how to tackle the technical challenges to come,node maintainers provide the infrastructure and network connectivity,and users are the heart of the system,providing trust and liquidity.Rootstock governance model aims to represent all actors of the community,by providing a board of governance consisting in5seats.Miners will be able to vote with hashing power (1vote),Bitcoin and Rootstock users will vote with proof-of-stake(1vote),Exchanges and web-wallets will vote though the Federation(1vote),Rootstock and Bitcoin Core developers will have a special threshold voting system(1vote),and the last vote will be offered to a non-profit established Bitcoin institution,such as the Bitcoin Foundation,that can represent the broader ecosystem.Also an institutional vote could be offered to the Ethereum Foundation, if it is representative of the Ethereum community.Protection of Bitcoin Miner's InvestmentIn August2016Bitcoin mining profitability margin will fall to less than50%due to the decreasing block reward from25BTC to12.5BTC.Hundreds of millions of mining hardware will become instantaneously obsolete.This probably includes all mining machines in the market today,since two generations of chips(faster and with lower power consumption)will be developed and sold before2017.Almost all current miners that have not replaced their hardware will see the end of their mining business.Rootstock,thanks to its merged mining capabilities,brings the opportunity to these miners to keep on businessat least four more years.Since Bitcoin merge-miners can mine both coins with zero marginal cost,miners will still be able to mine Bitcoin as long as the additional income provided by Rootstock mining compensates the profitability gap.Additionally the reduction in mining profitability by the Halving will create additional concentration in the low cost miners which will increase Bitcoin's network vulnerability. Hence,RSK could also play a key role in promoting a broad base of profitable miners increasing the security and value of Bitcoin.Also by starting today at a minimum cost,and creating applications for Rootstocks,Bitcoin miners may not only protect their investment,but develop a whole new business opportunity.Securing the Bitcoin / Rootstock 2-way pegLeading Bitcoin companies will integrate a Federation that will play the fundamental role of securing the transfer of funds between the Bitcoin and Rootstock blockchains.In exchange for that they will profit from the fees generated by the settlement between the inflow and outflow of funds.Lower Bitcoin transactions fees and stable value asset issuingCurrent Bitcoin holders and prospective users have seen their usage of the monetary system confined to certain use cases(i.e:investment,global payment network)mainly due to bitcoin price volatility but this constraint might worsen in the future due to a potential increase in transaction fees on the next Bitcoin halving.Rootstock brings a solution to this by offering almost instant transaction validation(20 seconds)and asset issuing with prices pegged to that of a fiat currency or other stable commodity.Lowering volatility exposure in transactions while keeping bitcoin as a reserve currency increases overall bitcoin value.Bitcoin Security hardeningOn the next Bitcoin reward halving,hundreds of millions on dollars in obsolete mining hardware will be sold cheaply privately or online.This will open a window of vulnerability giving an attacker the possibility to buy a huge amount of hashing power for very little money and execute a51%attack.Also the decrease in security may affect the perceived value of the coin.By increasing the profitability of Bitcoin mining with Rootstock merged mining, the Bitcoin network may prevent the hash rate to plummet.Rootstock as a lowcost BTC payment networkIf Bitcoin block size is not increased via a hard-fork,when the next Bitcoin reward halves, Bitcoin transaction fees may become prohibitively high for certain applications.As RSK blocks can hold many more transactions than Bitcoin blocks,Rootstock will naturally offer lower fees. See next section for an analysis of future scenarios regarding transaction fees. The future of Bitcoin and its transactions fees is unclear:currently,contentious proposals on changes in the maximum block size will have a high impact in future transaction fees.In the following table we attempt to predict future scenarios and compare RSK and Bitcoin under reasonable assumptions on growth and forks.Parameter Bitcoin RootstockConfirmation time with comparablesecurity under Satoshi equivalence10 minutes 10 secondsMinimum confirmation time for areversal probability of 0.1%20 minutes (2 blocks) 30 seconds (3 blocks)Max. Transactions per second 3.3 tps(assuming an average size tx) 300 tps at launch Scalable to 1000 tpsCurrent average cost for users for a standard transaction 6 centsAssuming:1.5 tpsMarket price not availableCurrent cost for miners to include a standard transaction1 centAssuming:Using the fast relay networkUTXO in memory1 ms processing time per tx.25.2 BTC average block reward5 centAssuming:Using standard relay network<1 cent (estimated)Assuming:No RSK specific hardwareswitching.Almost no Rootstocktransactions1 cent (estimated)Interrupting a miner to load newheader loses 10 ms ofprocessing timeTransaction fees by end of 2016 1.6 USDAssuming:block size is not increasedBTC/USD rate unchangedSame level of security3 tps1 cent (estimated) Assuming:3 tpsIs important to note from the above chart that transaction fees estimations are based on the unproven fact that the BTC price will remain at approximately240BTC/USD during 2016.If the price increases ten-fold during this period,then also will the transaction fees, rendering Bitcoin Blockchain viable as an inter-banking clearing system,but not a payment network.Also is important to note that off-chain payment systems can emerge, providing cheaper payments,but at the same time centralizing the network,and changingits decentralized nature.The following table shows possible future scenarios by the end of2016,assuming that network hashing difficulty increases at the same ratio as BTC price:Scenario Bitcoin cost of tx to miners Rootstock cost of tx to miners Bitcoin price increases 10x 16 USD 2 centsTPS increases 10x via hardfork 11 cents 0.2 centsBTC price and TPS increase 10x 1.1 USD 2 centsAs the cost of including a Bitcoin transaction increases,users will switch to platforms with lower transaction costs, such as Rootstock.Rootstock Use CasesThe Rootstock platform provides Turing-complete smart contracts as proposed by Nick Szabo in1993.At the same time,RSK’s VM is backward compatible with Ethereum VM, hence Rootstock gives the opportunity to developers working on Ethereum to benefit from the robustness of the Bitcoin Blockchain.Below we present a list of potential smart contracts and use cases that can be developed over RSK.Micropayment channels and Hub-and-Spoke networksMicropayment channels allow two parties to make secure regular low valued payments without paying fees for each payment, but only one time when the channel is closed.Hub-and-Spoke networks allow mutually untrusted users to make low-cost one time payments indirectly using payment channels to and from a third party with minimal trust. The RSK allows Hub-and-spoke networks to be implemented directly with minimal hassle and interfacing natively with standard e-wallets.Peer-to-peer distributed exchangeUsing TierNolan's protocol RSK supports contracts that act as peer-to-peer exchanges. Automatic matching in an order book can also be easily created.This allows distributed markets over independent block-chains, exchanging crypto-assets without third parties. Retail Payment SystemsRSK allows BTC to be adopted globally for every-day retail transactions.One of Bitcoin main limitations for retail use is its confirmation time(from10minutes to1hour to ensure irreversibility).RSK allows consumers to benefit from Bitcoin security with confirmations in just a few seconds.Merchants will be able to accept payments instantaneously without requiring third party gateways.Another key element that any platform should have to succeed in the retail market is to be able to support a large amount of transaction per second(tps).The RSK network,using the DÉCOR+protocol,allows to process over the Bitcoin Blockchain up to 300 tps (twice as much as Paypal)Escrow ServicesRSK allows the creation of smart escrow services where oracles sign(or not)a transactions defining whether it should be executed(or not)without having any contact with the funds under escrow.Crypto-assets CreationRSK allows the creation of crypto-assets(or altcoins)secured by the Bitcoin network. Given RSK’s flexibility to price the contract’s fuel these application(as all others)could be used from students to banks and corporations.Asset SecuritizationRSK also allows the creation of digital tokens backed by real assets.This could be use to digitally commercialize REITs,shares,issue debt or any other asset(or future proceed). This particular use case will provide a unique solution to those small businesses in the developing countries where the traditional financial markets do now fulfill the demand for working capital or capital to grow.Decentralized remittancesThis particular use case is especially important in developing economies where the unbanked/undocumented population has to pay usury fees to send money to their families for food and shelter.IP Protection / RegistryRSK allows the development of contracts that can replicate what is known as Proof-of-Existence which allows individuals and companies alike to proof the existence of a certain document(or property right)at any given point in time with the security of the Bitcoin Blockchain.This use case could be particularly important in societies in Latin America, Africa and Asia with unreliable land registration mechanisms.Voting SystemAs a particular case of crypto-asset,RSK allows the creation of digital votes that allow extremely secure and transparent elections at a minimum cost.Micro-lendingOver50%of the global population does not have access to the traditional financial system. This lack of access to credit is a direct cause to the economic inequality that our global society faces nowadays.RSK allows the development of scalable digital micro-lending contracts that could provide access to credit to the3billion poorest inhabitants of the world.Supply Chain T raceabilityRSK also allows the creation of digital wallets to track and trace(digitally)the physical location of a certain product or batch.This type of contract could be particularly useful in the retail,food and healthcare industries among others.As all the other use cases,by using RSK this could be achieved with the security of the Bitcoin Blockchain at a minimum cost.Online Reputation & Digital IdentityOne of the main problems of the developing world is the lack of documentation and IDs for the poor.This prevents the poor from voting,accessing healthcare,reporting crimes/ abuses and accessing financial aid.RSK allows the creation of digital global registries as secure as the Bitcoin Blockchain at extremely low cost.In-game Global CurrencyMany multi-player games have in-game economies,including private currencies.As these games evolve,virtual currencies become as valuable to users as fiat money,and are often traded on secondary markets.Inflation,cheating,and online theft become user concerns. Also the game company may face legal and security hurdles having users virtual money in consignment.As the world becomes global,so will virtual games,and players will feel discomfort that money earned in one game cannot be easily spent in another game.RSK can solve these problems by allowing games to accept BTC(in equivalent RSK coins)for their in-game payments,or create a private digital asset that is protected by RSK.RSK payments can be as fast as closed-loop systems for low denominations,so game engines can use RSK as the in-game purchase system,for player-to-player trading and for company-to-player virtual offerings.By just clicking on an URL or scanning a QR code, trading can be triggered using the standard player's external e-wallet software,and also paying commissions to the gaming company.Internet-gambling and Prediction MarketsFast payments also means fast payouts.Bitcoin gambling sites such as SatoshiDice have managed to provide no-registration fast betting experience using0-confirmations and chained transactions,but at a security risk for the gambling site.RSK allows betting with near instant payouts having block confirmation.Fair-playingBy incorporating smart-contracts,and in conjunction with well-studied cryptographic protocols such as Mental Poker,RSK is able to provide an open and fair platform for card playing without the requirement for a trusted third party taking a rake.These are just a few examples among many others that could be developed and programmed over the RSK platform using the underlying Bitcoin technology.It is important to mention that the Bitcoin miners(via merge mining)are going to be the ones running these contracts and benefiting from the vast majority of the fuel consumed to run those contracts.Technology OverviewRSK platform is, at its core, the combination of:● A Turing-complete resource-accounted deterministic virtual machine (for smartcontracts)● A two-way pegged Bitcoin sidechain (for BTC denominated trade)● A dynamic hybrid merge-mining/federated consensus protocol (for consensussecurity), and a low-latency network (for fast payments).Turing-Complete virtual MachineRSK virtual machine(RVM)is the core of the Smart-contract platform.Smart-contracts are executed in parallel by a high-percentage of the network nodes.The result of the execution of a smart-contract can be the processing of inter-contract messages,creating monetary transactions and changing the state of contracts persistent memory.The RVM op-code level compatible with EVM,to allow Ethereum contracts to run flawlessly on RSK. In the first release,the VM is executed by interpretation.For the next release,it is planned to emulate EVM by dynamically retargeting EVM opcodes to a subset of Java-like bytecode,and a security-hardened and memory restricted Java-like VM will become the new VM(RVM2).This will bring RSK code execution to a performance close to native code.Main features:•Independent VM, but compatible with EVM at the opcode level.•Rootstock provides Ethereum users the possibility to run their projects with the security of the Bitcoin network.•New opcodes for fast int32arithmetic and better just-in-time compilation (planned), for greater performance.SidechainA sidechain is an independent blockchain whose native currency is pegged to the value of another blockchain currency automatically by using proofs of payment.There is a two-way peg when two currencies can be exchanged freely,automatically,and without incurring in a price negotiation.In RSK,the Rootcoin(RTC)is two-way pegged to the BTC(more precisely,a Rootoshi,the minimum unit of account in RSK,is pegged to a Satoshi,the minimum unit of account in Bitcoin).In practice,when BTC are exchanged for RTS,no currency is“transferred”between blockchains in a single transaction because Bitcoin cannot verify the authenticity of balances on another blockchain.When a transfer occurs,some BTC are locked in Bitcoin and the same amount of RTC is unlocked in RSK.When RTC needs to be converted back into BTC,the RTC get locked again in RSK and the same amount of BTC are unlocked inBitcoin.Semi-Trust-Free SidechainsFully trusted and third-party-free two-way pegs can be created using smart-contracts on both platforms.But since Bitcoin does not currently support smart-contracts nor native opcodes to validate external SPV proofs,part of the two-way pegging system in RSK requires trust on a set of a semi-trusted third-parties(STTP).No single STTP can control the locked BTCs,but only a majority of them has the ability to release BTC funds.The STTPs temporarily store the BTC that are locked,and unlocks BTC to pay Bitcoin users RTC are locked in RSK to be transferred back to Bitcoin.In RSK the STTPs that protect the locked funds are precisely the members of the Federation.This is because the Federation incentives are highly aligned with the STTPs: they must be well-respected community actors,such as universities,and they must also have the technical ability to maintain a secure network node.The locking and unlocking of funds is done by this secure network nodes without any human intervention.Therefore a requirement for being part of the Federation is the ability to audit the proper behaviour of the software that powers the node,specially regarding the correctness of the component that decides on releasing BTC funds.We plan to create tamper proof hardware that will enforce the Federated validation algorithm to further improve security.Once Bitcoin adds special opcodes or extensibility to validate SPV proofs as a hard-fork, and once the new system is proved secure and trust-free,the Federation role as STTPs will no longer be necessary,and the RSK team will implement the changes to adapt RSK to the trust-free system.Dynamic Hybrid Merged mining/FederationWe believe that PoW is the only consensus system that prevents the re-write of blockchain history at low cost.All other consensus systems that do not consume a valuable resource for mining have this drawback,and rely on reputation,and prevent anonymous participation in mining.All other consensus systems require new users to trust in a set of parties to find an authenticated checkpoint of the ledger.High rate PoW consensus based on periodic blocks with low orphan waste requires miners to stop their hardware miners and restart them to mine on new header mid-states each time a new block is solved by the network.This result in mining time gaps,or greater network latencies for mid-state switching,on average.These gaps reduce the efficiency of Bitcoin mining even if they consume a few milliseconds.Therefore RSK uses the DECOR+ block reward sharing scheme to reduce competition and allow miners late switch to the RSK best block.If miners switch their hardware each time a RSK block is found,they compete for a full RSK block reward.If they late switch,and keep mining past block tips, they create uncles and and earn a share of the block reward.In none of these cases they are fully orphaned,as DECOR+pays a reward to uncles and the GHOST rule counts uncles as normal blocks and secures the best chain.The efficiency of BTC mining is therefore maximized.As we expect a period where RSK hashing power will be below50%of the total BTChashing power.This would leave the network vulnerable to a51%attack where the remaining hashing power outperforms the existing RSK hashing power to double-spend. To prevent such situation RSK includes federated checkpoints for PoW mined blocks. Federated checkpoints are signed by the Federation members and clients can use the the majority of the signatures to better decide which is the best chain.Also Rootstock has a last-resort protocol where if mining power goes below5%of Bitcoin hashing power,the Federation is able to create signed blocks.By default,clients stop using federated checkpoints when if Roostock hashing power is over66%of the maximum BTC hashing difficulty observed in the best chain and the fees paid in a block is higher or equal to the average reward of a bitcoin block.The RSK platform will be launched with a federation of well-known and community respected members.Each member is identified by a public key for the checkpoint signature scheme.The federation is be able to add or remove members using and embedding voting system, although these actions would require a high percentage of the member votes. The aim of RSK founders is that the RSK network will incentivize merge-mining.However RSK is robust to merge-mining shortage as the Federation is automatically brought to secure the network in the shortage case.Main features:•1-day maturity for mining reward.•Federated members checkpoints•Code embedded checkpoints during bootstrapping period.•No loss of efficiency in Bitcoin mining expected from merge mining(less than0.1% for immediate mid-state switching and 0% for late switching)Fast payments and low-latency-networkRSK aims to be a better payment network.To achieve fast payments,several solutions have been developed:-Use of competition-free block selection(e.g.Hyperledger,Ripple,closed-loop systems)-Use of hub-and-spoke networks (e.g. Bitcoin lightning network)-Use of high PoW block ratesHub-and-spoke networks add new centralization nodes,and require a complete adaptation of client wallets to a new,completely different payment model.Although so this alternative can be easily implemented on RSK,is not the native system for fast payments.RSK adopts the DECOR+and FastBlock5protocols,which allow reaching a10seconds average block rate that does not create incentives for mining centralization,is selfish-mining free and incentive compatible.Main features:•10 seconds block interval•Two stage block propagation (2SBP) protocol•Push Missing Transactions (PMT) protocol•Full network propagation of last competing blocks to prevent selfish mining and reduce stale block rate.•Delayed Transaction Inclusion heuristic(DTI).Transactions are delayed5seconds on each miner’s block transaction queue to allow the fastest possible block verification,because transactions are already present in the pools of every node of the network.•New network command to spread block headers with time critical priority.•New network command to spread block transactions hash list immediately after block header propagates.•Mining on Unverified Blocks Heuristic(MUB).Mining over block headers with unverified transactions with a 5 seconds fallback.•Block headers are flagged when they have no transactions (except for coinbase) •Two Prioritized Streams for each Connection protocol(2PSC).New message transport layer with message-slicing allowing two parallel sessions with distinct priority.This allows block headers to be sent over the high priority session and interrupt whatever message was being transmitted over the low priority session.•Local Route Optimization Protocol(LRO).Local optimal block routing based on peer priorities. Local optimal transaction routing based on peer priorities •DECOR+protocol for reward sharing between competing blocks.•GHOSTprotocol for chain weighting.。
OmiseGODecentralized Exchange and Payments PlatformJoseph Poon joseph@work OmiseGO Team omg@omise.coJune17,2017AbstractOmiseGO is building a decentralized exchange,liquidity provider mechanism,clear-inghouse messaging network,and asset-backed blockchain gateway.OmiseGO is notowned by any single one party.Instead,it is an open distributed network of validatorswhich enforce behavior of all participants.It uses the mechanism of a protocol tokento create a proof-of-stake blockchain to enable enforcement of market activity amongstparticipants.This high-performant distributed network enforces exchange across as-set classes,fromfiat-backed issuers to fully decentralized blockchain tokens(ERC-20style and native cryptocurrencies).Unlike nearly all other decentralized exchange plat-forms,this allows for decentralized exchange of other blockchains and between multipleblockchains directly without a trusted gateway token.Markets may be able to signifi-cantly reduce spreads and encourage market assurance via decentralizing custody andincreased transparency of market activity.This is achieved using smart contracts,proto-col tokens enforcing correct market behavior of orderbook matching,a new constructionof Ethereum bonded external enforcement of clearinghouse activity,and commitmentsto historical exchange data for use with Ethereum smart contracts.1Introduction and Problem StatementThe primary role of blockchains are to solve coordination problems among multilateral agreements between a network of participants.By ensuring transparency,assurance,and enforcement,we can enable multilateral agreements where they were not previously possible. When all parties are assured that the operations are not only transparent,but also the mechanisms are guaranteed to not change without significant effort,parties are more willing to coordinate.Participants have significantly higher guarantees that a single party has difficulty forcing other parties in the future into usurious rent extraction via a change in business processes or information asymmetry.In other words,any single participant is more willing to use systems where the business processes and mechanisms itself are not owned by any other single participant.There is a fundamental coordination problem amongst payment processors,gateways, andfinancial institutions.For instance,a customer of a bank wishes to pay a merchant onanother network.Traditionally,there have been significant efforts in engineering around payment systems which are compatible across payment networks andfinancial institutions. These are usually constructed by creating a clearinghouse which manages the interchange, usually via a messaging network with either a central counterparty clearinghouse or nos-tro/vostro accounts.Examples include FedWire,CHIPS,SWIFT,consumer card payment networks,NSCC/DTCC,OCC,and ACH.These networks service different roles and func-tions,including local/national payments,international payments,credit,equities/asset ex-change,and derivatives.These centralized networks allow for the controlling entity to arbitrarily change the mechanisms,which result in significant amount of transaction costs via information costs,due diligence,and contractual enforcement between all parties.We believe that there is currently a large emerging market of disruption in digital pay-ments with new payment platforms(e.g.Venmo,Alipay,etc.).These networks have signifi-cant aversion to interchange across networks,as it usually requires significant overhead costs in trust with the interchange facility.Parties are unwilling to use central counterparties,as neither party wishes to defer to the other,and use of nostro/vostro accounts require bespoke contracts between participants.While the larger networks have significant incentive around protection of their network effects,we believe that there is a long-tail of entities wishing to provide eWallet services which require greater coordination amongst multilateral partic-ipants.These mid-size participants will be able to cross value across networks in order to reach sufficient network effects in usability.The infrastructure and reference frontend for these providers will allow for the network effects to be encoded into this network,allowing for emerging eWallet participants to instantly create high network utility.Blockchains allows society to externalize the world’s business processes from single cen-tralized corporations into open,decentralized computing networks.[1][2]OmiseGO(OMG) is a network which decentralizes market liquidity,orderbook matching and execution,clear-inghouse custodianship,and high-scalability payments to help resolve payments across these emerging eWallet payment networks.By shifting these business processes traditionally placed into a single corporation,it is possible to provide eWallet providers an entire interchange process in a decentralized high-performant open network.2Design ApproachThe end-state requirement is a construction of a decentralized mechanism for eWallet plat-forms holdingfiat-backed value(as well as native,opt-in,support for cryptocurrencies). The eWalletfiat tokens will have the ability to use Ether on the decentralized,public Ethereum[3][4]chain(or any other decentralized cryptocurrency)as the interchange/in-termediary cross for maximum efficiency.We believe that this allows for significant more activity and value in decentralized cryptocurrencies,as it will serve as a useful venue for many eWallet platforms.As it’s a core function for this decentralized network to do eWallet interchange,ablockchain ledger on OmiseGO is necessary to hold the general balance of funds per eWallet service(or any user/node).This ledger must be able to hold funds across many assets/com-modities.However,merely holding a ledger is insufficient for interchange.The mechanism must also allow to trade these assets/commodities.In order to perform interchange,it requires an order to be placed across many different pairs on an open public market.This requires a decentralized orderbook and trading engine. The trading engine is built into the OMG blockchain,orders are published and matches are performed as part of every block when a matched order has reached sufficient number of validation confirmations.This results in a non-custodial decentralized exchange held by a single party where the eWallet platforms may exchange onto other eWallet platforms without centralized trust on a single entity.However,direct crosses between eWalletfiat tokens may not be desirable,as there may be too many.It would be necessary to use cryptocurrency for a liquid market without single preference.By bonding Ethereum into a smart contract[5](or Bitcoin-like tokens into bonded clearinghouses),it is possible to lock up Ether onto the activity of the OMG chain to allow for eWallet pairs to occur over Ether or other cryptocurrencies,creating a liquid market(if every pair crosses with ETH,spreads would be much smaller provided low currency volatility).For activity requiring very small spreads,it may emerge that some eWallet tokens will be used as interchange crossing;however,there’s strong incentive to use decentralized tokens for settlement due to coordination/trust advantages related to programmatic adjudication.eWalletfiat tokens may also cross using other eWallet tokens if necessary,but bonding which don’t affect short-term exchange ratefluctuations of smart contract activity will be primarily in ETH(e.g.HTLC clearinghouse,liquidity providing, and OMG chain enforcement).By allowing for cryptocurrencies to be the backing for eWallet platforms,the platforms can be assured of an even playingfield between eWallet interchange activities.This requires a greater degree of liquidity in funds locked up,and the OmiseGO decen-tralized exchange may not be desirable to transact for low-value interchange activity(e.g. for high-volume micropayments).Not every payment between two distinct eWallets must be performed using a trade on the decentralized exchange.There is an expectation,that eWallets will hold some reserve offiat tokens of other eWallets,ready to be used for smaller transfers in popular directions. Constructions such as Lightning Network[6]allow for payments to occur off-chain when eWallets hold balances to facilitate rapid payments.Implementations allow for payments across Bitcoin[7]and Ethereum[8],which can be easily ported to the OMG chain for eWallet balances.The result of the OmiseGO blockchain construction is it allows for eWallet interchange, supported by a decentralized exchange,cryptocurrency(e.g.ETH)matching,orderbook, and clearinghouses without full-custody trust.2.1Decentralized Liquidity Hub for ChannelsThe construction has the additional benefit of allowing for a decentralized liquidity pool to be created for use with payment channels on various cryptocurrencies,such as Bitcoin(and to some extent Ethereum).For individual token payments on blockchains,there is a need to scale the underlying blockchain activity which does not affect the underlying chain to reduce computational pressure of validating/mining nodes.It is therefore necessary to conduct Lightning Net-work activities(or similar constructions using channels).However,Lightning Network faces significant pressure around network effects with capital,it’s desirable to prevent liquidity pools from centralizing to a single trusted entity.By using the same mechanisms of the de-centralized clearinghouse,we can create a Lightning Network hub which is not owned by any single individual on tokens which support more complex smart contracts(e.g.Ethereum, ERC-20-like tokens,etc.).For currencies with simple smart contracts,any node on the network(e.g.Bitcoin network)can act as a gateway into the OMG chain pool and cross back with any other participant.This allows the OmiseGO chain to offload a lot of on-chain activity,while encouraging decentralization.We believe that the natural network effects of liquidity centralization can be mitigated by decentralized stake-chains with deterministic/known consensus rules.For Ethereum in particular(and other full-featured smart-contract scripting blockchains),all participants set up channels into an ETH smart contract operating as a single pool of funds.The chain state of the OMG chain reflects the current balance of participants.This allows for any participant to supply liquidity onto this network which can be allocated in accordance to the OMG-chain consensus rules(limits may be in place early on to prevent this blockchain from sucking up all the spare liquidity from the cryptocurrency space if this construction is successful before robust testing/validation over time).These funds can thereby be used for any liquidity activity on the OMG chain.3Blockchain Overview and MechanismThe above mechanisms require significant volume of activity(with a large amount of state), and is not at this time suitable for all activity to occur on the Ethereum main chain, however the construction would be to bond trading activity in the public Ethereum chain with contract execution input being provided by the OMG chain.We are building a blockchain which hooks into other blockchains to allow for trading across token/asset classes,largely backed by Ether.From the perspective of any individual chain,we are building a scalable blockchain whose contract state is bonded by the activities of the OMG chain itself.Activity on other chains can interlink with this chain via inter-chain committed proofs similar(but constructed differently)to BTC Relay[9]on the OMG chain which can be submitted on Ethereum.The OMG chain validates the activity of the behavior of all participants(including activity on other chains).In other words,the roleof the OMG token is providing computation and enforcement.The token itself acts as a bond for its activity on this blockchain,improper activity results in the token/bond being burned on the OMG chain.By creating a custom chain with deep enforcement,we are able to construct a system where consensus rules optimize for high-performant activity.The design optimizes for rapid execution and clearing,with slower settlement.Future iterations may include sharding of the OMG chain,but the initial iteration will presume high-throughput capacity for block propagation.Owning OMG tokens buys the right to validate this blockchain,within its consensus rules.Transaction fees on the network including(but not limited to)payment,interchange, trading,and clearinghouse use,are given to non-faulty validators who enforce bonded con-tract states.The token will have value derived from the fees derived from this network,with the obligation/cost of providing validation to its users.This token must have value,to prevent low-cost attacks and is necessary to enforce this network.It may be on our roadmap to allow for delegating validation to third-parties,whereby a limited amount can be slashed at a time before re-delegation is required(the exact mecha-nism is not yet specified for security modeling).As this will be designed as a high-performant system,an linked-via-proof blockchain construction is necessary.We expect that this system will be able to handle extremely high volumes of transactions and hence,will only dofinal delivery over Ethereum.Clearing and settlement occurs over the OmiseGO blockchain.Consensus rules are enforced via this proof-of-stake network.As part of the consensus rules of this network,it is required that all OMG(Omise GO)validators also run the Ethereum network to validate in parallel, resulting in Ethereum as afirst-class citizen with regards to inter-blockchain validation.It is assumed for features such as Ethereum/ERC-20bonding and withdrawals that BLS signature schemes(or alternatively Schnorr)will be enabled in Ethereum in the near future.For cryptocurrencies,these tokens are non-custodial and instead locked in smart contracts(unlike other exchange platforms such as Ripple,which requires trusted gateways representing the underlying).It also does not rely on named centralized validation sets(e.g. Ripple).The OMG blockchain manages matching and managing order execution on the Ethereum chain.Activity on the OMG ensures the validator activity also may be enforced on the Ethereum chain via native Ethereum smart contracts.For Bitcoin and Bitcoin-like systems, we allow for trading via a clearinghouse network on the Lightning Network.The blockchain enforces activity on this network via committed proofs.While not as robust as Ethereum’s network,it allows for near-instantaneous clearing and settlement of activity orchestrated on the OMG chain without full-node validation.We expect to do partial validation in the future for nodes which do not allow for blockchain reorgs;naive SPV validation with blockchains that support reorgs are not permitted on this network for security.A detailed description of the consensus mechanism and security properties will be pro-vided by Joseph Poon of Exonumia Labs,Inc in a(currently in-progress)forthcoming paperin Summer2017.The construction of the paper(and subsequently with the implementa-tion used by OmiseGO)will likely be useful for many future open source token protocol blockchain projects,and may provide novel constructions for emerging chains such as cre-ating incentives for distributed data processing,and inter-blockchainfinancial activity.We hope OmiseGO and its distributed exchange will be a critical core in helping to lead the way in providing base-layer technologies/infrastructure which can spark and launch the en-tire protocol token ecosystem.Initial versions of OmiseGO may use aspects of Tendermint consensus.3.1Light Client ValidationWhile OmiseGO is constructed as a high-performance network capable of handling many transactions,it will become necessary to produce light client proofs for partial validation, as well as for external smart contract enforcement.A merkle tree of committed transactions per block will be included,as well as a com-mitment to the recent block state.The current state can be acquired by any node by downloading the recent block state commitment and any blocks between then.As the recent block state includes a tree of the recent state,clients are able to get a view of the recent commitment without downloading the entire chain.Note that this is only possible as there is sufficient economic incentive against reorganization and halting attacks; the OMG chain is designed to heavily disincentive block reorgs via bonded proofs,but does not provide guarantees around the need for block confirmations.Similar to current SPV Bitcoin validation implementations,there is some trust given to fullnodes with regards to censorship risk;we do not expect committed bloom maps to be feasible for the decentralized exchange given the transaction volume.Light clients can validate that a sufficient number of validators have processed the transactions,as well as any partial data acquired from fullnodes.It is heavily recommended for clients to validate activity on the Ethereum chain as well,due the OMG chain smart contract constructions.4eWalletsWhile OmiseGO supports payments,is not designedfirst and foremost a payment processor within a specific eWallet payment providers(EPP).It is our belief that there is no coordi-nation problem within a single EPP,and the coordination problem lies primarily between EPPs.However,due to the need for transactions between EPPs,payment activity may be conducted over a blockchain.This blockchain allows for the EPP to provide token issuance on OmiseGO.This allows forfiat-denominated currencies backed byfiat on the platform, or for any asset class(such as loyalty points).OmiseGO is an open system allowing for anyone to issue assets,but it is up to individual users(or EPPs acting on behalf of the users)to ensure correct issuance/auditing.This is achieved by creating issuance attached to a script(with private keys)which allows for issuance.An alternative approach would。
