Abstract

Decentralizedforumapplicationplatformusingsmartcontract

Bitcoin,ofwhichtheblockswerefirstgeneratedinJanuary2009,broughtupglobalcurrencyinnovation.Thiswasthefirstcasetoactuallyutilizeblockchainandtomoveawayfromthetraditionallynon-reliablenetworktotrust-basedinnovationusingblockchainastheBitcoinledger,andeventuallytobringaboutcurrencyinnovation.Sincethen,theuseofBitcoinhasbeensteadilygrowingalongwithitstechnologydevelopment.

WhereasBitcoinfocusedonthemostbasicfunctionsofblockchain,thestabletransferandstoragefunctionsasacurrency,Ethereumofwhichthefirstblockwasgeneratedin2015,addedprivatecontractontopofitstransferringfunction.Thefirstsmartcontractfunctionwasusedtoenableprivatecontractonblockchainwithouttheinterventionofathirdparty.

Ethereum,alsocalledblockchain2.0followingBitcoin,isablockchainwithaperfectturing-completeprogramminglanguageembedded.Thisprogramminglanguageallowsuserstodirectlybuildprivatecontractsaccordingtogivenrules.Thiscontractnotonlyincludesliteralcontractsbutalsothegenerationofcontractsintheconceptof'generatingtokens'underconditionsthatmeettherulesofERC-20.ByusingtheconditionofbeinganEthereumcontract,itispossibletoissueandtransferothercoinsontheEthereumblockchainnetwork,andalreadycountlessnumbersoftokensarerunontheEthereumplatform.

Ethereumisacontinuouslydevelopingblockchainthatdemonstratestremendousadvancement.However,therearestillmanylimitationsforgeneralusersandapplicationdeveloperstoactuallyapplyitsfunctions.Also,itisverymuchcomplicatedforvarioussocialnetworks,communitiesandgamewebsitestodeveloptheirowncoins.

EtherSocialprovidesmanagementtoolsthatcangeneratetokenscomplyingwiththeERC-20smartcontractruleswithacoupleofclicksaswellasAPIfunctionsthatareappliedtovariousservices.ThroughEtherSocial,websiteadministratorscanplan,make,create,transfer,manageandburntheirowntokens.

TableofContentsHistory

IntroductionofBitcoinLimitationsofBitcoin

IntroductionofEthereumLimitationsofEthereumIntroductionofSteemcoinLimitationsofSteemit

Bitcoinanditsbasicconcept

BasicconceptofreservesMining

EtherSocial

EtherSocialaccount

MessageandTransactionMessages(Messages)BlockchainandMining

Applications

TokenSystems

Applicationprocessofincentivizedcommunities

RequirementsforcommercializationofcoinsCoinfeaturestovitalizeforumEssentialfactorsoftheforumtoutilizecoinsExpansionfunctionstovariousforumssuchasgamesAPIsrequiredforactualapplication

Developmentplanforreward-typecontentsforum

GeneralformsofcurrentforumsDevelopmentdirectionActiveprofitsharing

RewardprogramforEtherSocialdevelopers

ScopeofrewardprogramOperationofrewardprogram

RoadmapOtherissues

IntroductionofuncleblocksFeesCurrencyandIssuanceMiningCentralization

Conclusion

History

IntroductionofBitcoin

Thefirstdigitalcurrency,Bitcoin,wasfirstsuggestedinthethesisofSatoshiNakamotoin2008underthetitle'Bitcoin:APeer-to-PeerElectronicCashSystem'.^<1>Nakamotorealizedthetransferandstorageofcoinsadoptingtheblockchaintechnology.Blockchainwassuitabletobeusedasafinancialtransactionledger,aspreviousdatacouldnotbemodifiedandtheissueofdoublespendingcouldbeprevented.Itisdifficulttoforgeorfalsifyblocksashashinformationthatrequireslotsofcomputingpowerforcalculationisrecordedineachblock.Timeisalsorecordedineachblockandasblocksrefertotheimmediatepreviousblock,allblockswouldhavetobeforged,makingitrealisticallyimpossible.ThereareopinionsthatimplementationofaquantumcomputingcouldposeaseriouslevelofthreattoBitcoin,howeverthiswouldonlybepossibleaftermorethanadecade,meaningthatthisisafullysafesystematleastfortheforeseeablefuture.DespitetheabsenceofacentraladministratorforBitcoin,about500,000blockshavebeengeneratedsincethecreationofthegenesisblockonJanuary9,2009withoutanyhackingon

theBitcoinitself,boastingasoundlevelofsecurity.Adailyaverageof230,000transactionstakeplacethroughBitcoinandamarketcapitalizationofmorethan200trillionKoreanWonwasrecorded.AsforBitcoins,newblocksaregeneratedthroughProofofWork(PoW).Thefirstcryptocurrencywasmadethroughthecollaborationofvoluntaryminersevenwithouttheexistenceofcentralcontrolorintermediary.Tousethecreditcard,themostpopularpaymentmethodinthemodernsocietyorforoverseasremittance,acentralserverwasrequired.Areliableinstitutionsuchasa'bank'or'creditcardcompany'thatcanprovethatIhavesentthemoney,wasessential.Bitcoinenabledthetransferandstorageofcoinswithoutathirdparty,makingittrulyabreakthroughinnovationneverimaginedbefore.

LimitationsofBitcoin

TherehavebeenupgradesoftheBitcointhroughcontinuousmodificationofcodes.However,asithasbeenquiteawhilesincethedevelopmentoftheBitcoinandbecauseitisthefirstcryptocurrency,Bitcoinhassomeobviouslimitations.IttakesmorethantenminutesforthetransferofBitcoin,asablockisgeneratedonceeverytenminutes.Also,becausethevalueof1BTCisexcessivelyhigh,itisnoteasytouseitasameansforpaymentinactuallife.Bitcoinisapublicblockchainanditstransactionlistisopentothepublic.Asitisopentothepublic,Bitcoinistransparentandcannotbemanipulated,butitsweaknessisthatitcannothidesecrets.ManyuserswhoownlargeamountofBTCsmaynotwanttoexposetheirBTCs.Also,therearepeoplewhowanttohidetheirtransactiondetails.Toovercomesuchlimitations,coinswithanonymityfunctionssuchastheZcashorMonerohaveemerged.AnotherimportantlimitationwouldbethatitisdifficulttousetheBitcoininareasotherthanthetransactionofcoins.Thelanguagecalled'Script'usedinBitcoinonlyallowslimitedfunctionsastherearenorepetitivestatements.AgainstthisbackgroundemergedEthereum,togobeyonditslimitsandtobeexpandedtootherdomains,notconfinedtothetransactionofcryptocurrency.

IntroductionofEthereum

ICO(InitialCoinOffering)ofEthereumtookplacein2014andthefirstversionwasreleasedin2015.Ethereumwasaplatformthatactuallyrealizedtheconceptof'smartcontract'usingblockchain.Theconceptofsmartcontractisthatwhenacontractiscreatedwithdigitalcommands,thetermsofthecontractareautomaticallyexecutedaccordingtotheconditions.DAppsordecentralizedapplicationsthatextendblockchaintovariousdomainscanbemadeeasilythanbeforeusingEthereum.^<2>Ethereumuserscangeneratea'token'anduseitforwhateverpurposeoftheuser.Onceanewtokenisgenerated,theblockchainwillbeeasilygeneratedaswellandtransaction,walletandexplorerisgiventotheuserwhogeneratedthetoken.Themajordifferencebetweenatokenandacoinisthatacoinhasitsownnetworkwhereasatokenismadeandrunontopofanetworkofanothercoin.Thecommonthingisthatbothhavethetransactionfunctionandarerecordedintheblockchain.Currently443tokensaremadebasedontheEthereumplatformandthoseaccountfor81%ofthetokenmarketbasedonthetypesofcoins.TokensutilizingEthereumenabledcrowdfundingwithmultipleinvestorswithoutanintermediary,andforthefirsttimeinJune2017,theamountinvestedthroughICOintoblockchainsurpassedtheamountinvestedthroughventurecapitals,demonstratingtheenergyofICO.ThroughICO,smallinvestorswhowerenotabletoparticipatewithsmallamountofinvestmentcouldinvestinhigh-techITventurecompaniesandprojectsandrealizeprofits.Also,individualsandgroupsthatalreadyhadideasandtechnologicalknow-howbutinsufficientcapitalfoundanewwayoffinancing.

ThemostsubstantialrisktoEthereumwastheDAOhack.Althoughsmartcontractwasadouble-edgedswordthatgaveversatility,therapidspeedofdevelopmentloweredthelevelofoverallsecurity.ThisresultedintheDAOhackandeventuallyledtotheHardForkofEthereum.Manyofsuchsecurityweaknessesarenowsubstantiallyimproved.SincetheDAOhackin2016,numerousICOstookplaceontheEthereumplatformbutnocrucialsecurityissueshaveeveroccurredsincethen.Therefore,itissafetosaythatthecurrentEthereumcodehasgonethroughyearsofstabilizationandtesting,andisnowreliable.

LimitationsofEthereum

ThemostimportantissueofEthereumisthatitisdifficulttodirectlyintroduceEthereumtothegeneralforum.TointroducearewardsystemusingEthereum,oneneedstobecapableoffluentlyusingthesmartcontractprogramminglanguagecalled'Solidity'andalsohaveagoodunderstandingofblockchain.APIsexistinEthereum,butarenotspecializedforforumwebsites.Therefore,webdeveloperswithlessunderstandingofblockchainhaverelativelyloweraccessibility.Therefore,ifonewouldwanttointroduceEthereumtotheforum,additionaltimeandexpensesfordevelopmentwillfollow.Afterall,ifthereisaneedforaforum-specializedcryptocurrency,theremaybenosubstantialdifferencebetweendevelopingitusingEthereumanddevelopingnewcoinsfromscratch.

IntroductionofSteemcoin

Steemcoinisaforum-specificcoinof'Steemit',ofwhichsalesbeganin2016.ThepurposeofSteemcoinistogeneratecoinsthatcanbeusedacrosstheforum.Steemitiscomposedofpersonalblogsandcomments,anduserswhogivegoodcommentstopostingsobtainrewards.IndividualuserswhofrequentlyuseSteemitcanberewardedthroughSteemcoins.Ifthevalueoftheuser'sSteemcoinincreasesintheexchange,theuserisboundtoacquireadditionalprofitsasmuchastheamountofSteemcointheuserowns.^<3>TheSteemcoinforumserviceitselfwassuccessfulenoughtohaveacquiredmorethan600,000users.ThevalueofSteem,thedigitalcurrencyusedintheSteemitforum,increasedbymorethansixtimesforayearandeightmonths,sinceitslaunchinApril2016.

LimitationsofSteemit

HoweverSteemitalsobearsmanyissues.Firstofall,thesubjectsuploadedonSteemitarequitelimited.BasedonGoogle'srelatedsearchresults,mostofthepostingsofusersthatappearasrelatedsearchresultsforSteemitweresubjectsrelatedtocoinorinvestment.Itisbecauseofthedifficultaccessibilityforfirst-timeSteemitusers.However,peopleinterestedincryptocurrencyactivelyjoinSteemittogetitsrewardsdespitetheinconveniences.AnothershortcomingisthatSteemitisnotspecializedforKoreanforums.InKorea,forumstendtousebulletinboardsratherthanblogs.ButSteemithasitsrootsinanoverseaswebsiteandonlysupportspersonalblogformats,makingitdifficulttointroduceSteemitasitistoKoreantypebulletinboards.Anotherissueisthatmostoftherewardsaredeterminedaccordingtotheopinionsofafew,whoownlargeamountofcoins.Thosewhoownlotsofcoinsaretheso-called'whales'onSteemitandtheironeclickof'like'couldleadtoacoinrewardequivalentto300USD.Ifonewouldsearch'Steemit'onGoogle,thefirstrelatedkeywordthatappearswouldbe'haejin'.ItisnotsurewhethertheuserofthisIDisaKorean,butthisuserusuallypoststenpostingsadayandreceivesaprofitofabout300USDforeachposting,resultingin3,000USDworthofcoinrewardsaday.Earningarewardof300USDforasinglepostingwithonesimpleillustrationandonelineoftextseemedimpossibletothegeneralSteemitusers,whichinturn

madeSteemituserstofuriouslyclickonthe‘un-vote’tab.Nevertheless,'haejin'keepsonwiththepostingandsomeusersexpressconcernsthat'onlyonewhaleistakingupeverything.Steemitisgettingoutoforder'.AnotherissueisthatithasalreadybeentwoyearssincethetransactionofSteemcoins,butthereisnoofficiallaunchoftheAPIyet.Moreover,issuanceoftheSMTtokenswhichwereplannedtobereleasedin2018,didnothappeneither.SMTtokensaresimilartotheERC20tokensandhaveafunctionofcreatingtokenforone'sownforum.Eventually,thecurrentSteemcoinremainsasacoinjustfortheSteemitforum.Insummary,Steemcoinbecameacoinjustfortheuserswhoareinterestedincryptocurrency,particularlyforthoseusingtheSteemitforum.

Bitcoinanditsbasicconcept

Basicconceptofreserves

Tocompletetheconceptofdigitalcurrency,basicallytwogoalshavetobeachieved.Firstisthesafestorageandtransfer,secondistheverificationofalteredcontents.Also,cryptocurrencyisonlycompletewhenitissafeandanonymousatthesametime.Tosatisfytheserequirements,simpleandcompletesecuritywasachievedwithoutbeingsubordinatetospecificgroups.ThiswasenabledthroughthenodesoftheledgercalledblockchainandasecurityprocesscalledProofofWork(PoW)ontopoftheownershipmanagementalgorithmbasedonpublickeyencryption.Participantscantakepartincrackingdownthecodesofsuchblockchainonlythrough'computationalcapability'andthisistheso-called'mining'process.Miningcreatesauniquestructureinwhichitdealswithbasicsecurityandprocessingoftransactionsandalsoenablesblockchainrewardstoallparticipants.Therefore,transactionortransferwillnottakeplaceorbeextremelyslowonablockchain(excludingthePoS)withoutaminer.

Mining

Thestructureofblockchainisverysimple.Theconceptisabout'whetherthefirstblockisnormal'and'whethereverysubsequentblockisnormal'.Allweneedtodoistocheckwhetherthenewlycreatedblockchainiscreatednormally,andifthisprocessiscontinued,wewillbeabletohaveallourassetsandtransactionsinoneblockchain.

1. Thefirstblockandpreviousblocksagreedbyallparties2. Verificationofamixoftransactionswithouterrors3. Generationofawholeblock4. Appropriatelevelofverificationandrelevancyofverification

Startingfromablockofwhichpastverificationiscompleted,aminerjusthastodothebesttogenerateacompleteandsafeblock.Toobtaincoinrewards,themineriswillinglyprovidinghisorhercomputationalability,andatthesametimemaintainingthesecurityleveloftheblockchain.Tohacktheblockchain,oneneedstodealwiththecomputationalabilityofmining.Ofcoursesuchminingconsumeslotsofenergyandresources.Althoughthisisanissuetobeimprovedinthelong-term,itstillisthemosteffectivesecuritymaintenancemethod.EtherSocialfollowstheGPUminingmethod.

EtherSocial

ThepurposeofEtherSocialistocreateAPIsandmanagementtoolsthatcouldbeappliedtoactualservicesusingthedecentralizedapplicationprotocol.Ethereumitselfisadevelopingblockchainthatprovidesanessentialandfundamentalplatformofblockchainembeddedwiththeturing-completelanguage,butthefollowingshortcomingsmakeithardtoapplyittoactualservices.

1. Constantdevelopment

Constantdevelopmentisagoodphenomenon.Butbecausedevelopmenthappensconstantly,thereweremanytimeswhensecurityissuesrelatedtoEthereumaccountandothersoccurredinthemeantime.Itisimportanttohaveastableversionwithoutanyofthesesecurityissues.

2. Generalusersordevelopersdonothaveeasyaccessibility

SincedevelopmentisdonemainlyfocusingonthefunctionalimprovementofEthereumcore,therearemajorshortcomingsintheuserenvironment.Thisiswhyitisalmostimpossibletoapplyittogeneralservicesasofnow.

3. Toomuchnetworktraffic

Thenetworkisalwayscrowdedwithendlessdevelopmentandvarioustestsgoingon.Thisiswhythevarioussmartcontractsonthenetworkarenotsuccessfullytransferredinmanycases.

4. Expensivefees

AsthepriceofEthereumitselfhasincreased,thecoststorealizesmartcontractshavebecometoohigh.

TheEtherSocialcoinwhichaimstosolvetheseissueshavethefollowingfeatures.

1. OnlyfunctionsfromthestableversionarechosenoutoftheEthereumfunctions.

Onlythesuperiorfunctionsofthestableversionarechosenandfurtherdeveloped.

2. Convenientusage

GUImanagementtoolsareprovidedtoenableeasyaccesstogeneralusers.Also,applyingalanguagefrequentlyusedbygeneraldevelopersinthedevelopmentallowstheconvenientuseofAPIsandthecoinstobeactuallyappliedtovarioustypesofservices.

3. ByspecializinginthetokenfunctionsofERC-20,usageofothersmartcontractfunctionsarereducedandthereforethenetworkrunsmoresmoothly.

4. TokenmanagementcanbedonewithlessfeesandatalowerpricethanEthereum.

EtherSocialaccount

ESNisusedtopaythetransactionfeeasafeetorunthesmartcontractofEtherSocial.Therearetwotypesofaccounts.Thefirstisanexternalaccountthatiscontrolledbyaprivatekeyandthesecondisthecontractaccountcontrolledbythecontractcode.Theexternalaccountdoesnothaveanycode,sotosendamessagefromthisaccountwouldrequireanew

transactionandasignature.Asforthecontractaccount,wheneveramessageisreceived,apersonalcodewillbeactivatedtoreadandinternallystorethemessage.Afterwards,messagescanbesentorcontractsbegenerated.

MessageandTransaction

TransactionreferstothetransferringdetailsofEtherSocialandincludesinformationofwhosentwhattowhom.Transactionsincludethefollowinginformation.^<2>

RecipientSignatureofthesenderAmountofESNthesenderissendingOptiondataPermittedcalculationfrequencyCalculationfee

Recipient,senderortheamounttobesentareitemscommonlyusedinmostcryptocurrencies.ItemssuchasthepermittedcalculationfrequencyandcalculationfeeperformtherolesofblockingDDosattackinEtherSocial.Topreventrepetitiveexecutionoftransactionscausedbymistakeorlimitlessarithmeticcarriedoutmaliciously,ESNshouldbepaidasafeeateachstepwhenexecutingthecodeinthetransferoftransactions.Thebasicunitis1gasandifthetransfertakesupmoretimeoriscomplex,morefeesshouldbepaid.Inthisway,amalicioushackerwouldneedtoconsumetoomanyESNforanattackwhichislesstemptingforsomeonewhoholdslotsofESN.Thus,maliciousattackscanbepreventedmoreefficiently.

Messages

Transfercontractcancalloutothercontractsusingmessagesandthendeliverinformation.Inotherwords,smartcontractscanbedeliveredusingmessages.Messagesincludethefollowinginformation.^<2>

SenderRecipientESNOptiondataPermittedcalculationfrequency

Messagesaresimilartotransactionsexceptthatmessagesarenotfromexternalaccounts.Liketransactions,messageswillexecutetherelevantcodesintherecipientaccount.Thegasallocatedtothetransactionorcontractisappliedtothetotalamountofgasconsumedduetoallexecutionsrelatedtothattransaction.Forexample,ifanexternalaccountAsends1000gasandatransactiontoB,andBsendsamessagetoCafterconsuming600gas,andreturnsafterconsuming300gasforinternalexecutionofC,Bwillbeabletouse100moregasbeforeallgasisdepleted.

BlockchainandMining

EtherSocialblockchainissimilartothepreviouslyexplainedBitcoinblockchain,butisalsodifferentinmanyways.ThemajordifferenceisthatunlikeBitcoin,EtherSocialblocksincludethemostrecentstateoftheaccount,blocknumberanddifficulty.SinceBitcoinblocksdonot

haveblocknumbers,oneneedstostartcountingfromtheveryfirstblocktoknowtheblocknumber.

ThefollowingexplainsthebasicmethodsofverifyingEtherSocialblocks.^<2>

1. Checktheexistenceandvalidityofthecurrentblock.2. Checkwhetherthetimestampofthecurrentblockisgreaterthanthepreviousblockanddoesnotexceed15minutesasofthecurrenttime.

3. Checktheblocknumber,difficulty,transactionroute,unclerouteandgaslimits.4. CheckthevalidityofProof-of-Work(PoW)oftheblock.5. AssumethatS[0]isthefinalstateofthepreviousblock.6. Checkerrorsonthetransactionlistandwhethertheamountofconsumedgasdidnotexceedthegaslimit.

7. Verifytherewardblockpaidtotheminer.

Itisveryefficienttoputallinformationintotheblock.Informationwillbestoredinatreestructureandonlyasmartpartofthetreebehindallblockswillbealtered.UnlikeBitcoin,asmostcontentsofthetreearethesamebetweenthetwoadjacentblocksinEtherSocial,oncestoreddatacanbere-usedagaininthenextblock.OntopoftheconceptoftheMerkletree,datacanbeinputanddeletedefficiently,andsinceinformationontheaccount'schangeofstateisincludedinthelastblock,itisnotnecessarytostorethewholeblockchaininformation.

Asmartcontractiscreatedwhencontractcodeofeachtransactionisexecutedatthesametimewhentheblocksarebeingverified.

Applications

TokenSystems

Theblockchaintokensystemhasapplicationsthatrealizemanytypesoftransactionsystemsonthenetwork,fromthesub-currencylinkedwithUSdollarsorgold,smartproperty(assetsofwhichtheownershipiscontrolled/managedontheBitcoinblockchain),secureandunforgeablecouponstoothertokensystems(forexample,pointsystemtoprovideincentives)notlinkedwithconventionalvalue.ThetokensystemonEtherSocialcanberealizedinasurprisinglyeasyway.Thefollowingarethecorepartsinunderstandingthetokensystem.^<2>

Currencyandtokensystemsexecuteonlyonefunction.Currency/tokenofunitXisdeductedfromA,andthedeductedcurrency/tokenofunitXispaidtoB.However,AshouldhaveheldaminimumunitofXbeforethetransaction.Aapprovesthetransaction.

InEtherSocial,theuserjusthastoreflecttheabovelogictothecontract.ThebasiccodesthatexecutethetokensystemintheSerpentareasthefollowing.

defsend(to,value):ifself.storage[msg.sender]>=value:self.storage[msg.sender]=self.storage[msg.sender]-valueself.storage[to]=self.storage[to]+value

Inthiscase,the'statetransitionfunction'ofthebankingsystemexplainedinthiswhitepaperisappliedperse.Todefinetheunitofthecurrencyanddotheinitialworkfordistribution,ortoenableothercontractstoprocessinformationrequestsonthebalanceofaccounts,additionallinesofcodescouldbewritten.Butthatisallweneedtomakeatokensystem.Theoretically,

thetokensystemasasub-currencysystembasedonEtherSocialmayhaveanimportantfeaturetheMetaCurrency(currencylinkedtotheBitcoinblockchain)basedonBitcoindoesnothave.Itisthatpaymentcanbedirectlymadewiththecurrencyusedwhentradingthetransactioncosts.Suchfeaturecanberealizedthroughthefollowingprocess.Toexecuteacontract,theESNbalanceshouldbeasmuchasthecoststobepaidtothesender.Andtheinternalcurrencythatisreceivedasafeewhenexecutingthecontract,canbeimmediatelyexchangedandchargedasanEtherSocialbalance.Althoughusershaveto'activate'theiraccountsthroughtheESN,theamountobtainedthrougheachcontractcanbeexchangedtoESNeveryoccasion.Thisimpliesthataonce-chargedESNcanbere-used.

Applicationprocessofincentivizedcommunities

Requirementsforcommercializationofcoins

EtherSocialwasdesignedforthepay-typecontentsforum.Italsobringscontentscreatorsofblogstotheforum.Coinscanbeappliedtoclick-typereward,recommendationbasedrewardanddirectpurchaseforthecontentswithouttheserverorDBapproval,andcanbindthecontentsfromdifferentserversworkingindifferentportalstogether.Numerouscoinsarereleasedwithmorethanonerole.Throughthewhitepaperthatcanutilizeblockchaintechnologyandvarioustypesofapplicationsoftware,wecanobservethepossibilitiesofthatblockchaincontributingtootherfields.However,outofthevastnumberofcoins,thereareonlyafewthatarecommercializedaccordingtothewhitepaper,whicharousesserioussuspicionsregardingthecommercializationofcoinsandblockchain.Weneedtoconsiderwhytherearelesscoinsappliedinthedailylives,despitethealreadyverifiedandabundantsecurityandtransfertechnologiesinplaceandthepossibledistributionofnumerousapplicationsoftwareandcontents.

1. Firstwouldbethegapbetweentheblockchainecosystemandthedevelopersofgeneralcontents/software.Uptonow,blockchainisconsideredtobeintherealmofvirtualcurrencyanditismainlytheminersorinvestorswhoareinterestedratherthanothersoftwaredevelopers.

2. Also,mostoftheinvestmentsincoins,liketheICO,aremostlyinterestedinthestablelaunchofcoinsthrougheffectivemarketingratherthanthestablesettledownofactualapplicationsoftware.Eventuallythetendencyistofirstfocusontheprofitsofexistinginvestorsbycreatingcoinsandgoingpubliconthemarket.

3. Therewereacoupleofefforts,howeversinceblockchainismainlyfocusedontheowningandtransferringaspectbasedonsecurity,thereissomeanimositytowardsloweringthespeedorreducingnetworkresourcesbyaddingotherfunctions.Nevertheless,coinsshouldnotonlybeownedortradedbutmorewidelyusedbytransactingwithvariousapplicationsoftwareandsystems.ThereareconcernsthatcontinuousICOandthefloodofinvestmentintonewcoinsamidthissituationcouldmaketheentirecryptocurrencyecosystemintoaspeculativeground.Therefore,thisisthetimewhenweneedacaseofintegrationandoperationofactualsoftware.

Basedontheexistingcryptocurrencyforum'DDengle',EtherSocialbeginsitsservicefromprovidingmodulesrequiredforrunninganactualforumandcollectingcasesappliedintheoperationofforums.ThisistheoutcomeofexcludingmeanstoraisefundssuchasICO,andtransparentlyopeningupallprocessesfromminingtogenerating/distributingcoins,aswellasderivingthedirectionbasedontheagreementofcollectiveintelligence.

Coinfeaturestovitalizeforum

Forumadministratorscansetupamoreextendedrewardsystemfromtheexistingconceptofmileage.Coinscanbeusedasexistingpointsormileagewithintheforumandasrewardsforexternalpartnercompaniesoradvertisingandmarketing.EachforumcointhatismadeasatokenprovidedbyEtherSocialcanbefreelydistributed,listedandtraded.Furtherexpansionispossiblebasedonsuchliquidity.

1. Rewardscanbeprovideddirectlytootherforumsandadvertisers.Inotherwords,acertainamountofcoinswillbedistributedtotheadvertisersinadvance,andtheadvertisercanprovidetherewardsdirectlytothecustomers.

2. EscrowservicesappropriateforP2Porsecondhandtradescanbeprovided.Inotherwords,thedepositamountcanbeprovidedwiththetokens,andassoonasthedealisapproved,thetokenscanbeliquidatedorthetokenscanbetradedagain.

3. Inparticular,providingadditionalrewardsforgamerankingisalsopossible.Byusingtokenswhenpartneringwithexternalgamecompanies,forumuserscanbeeasilybroughttothegamecompany,oruseractivitiesfromthegamecompanycanbebroughttotheforum.

4. Suchfunctionscanbeimmediatelyappliedwithouthavingtomodifyexistingmileage,pointsorlevels.Liketheexampleof'DDengle',existingpointscanbeconverted,paidandused.

Basically,ifaforumwantstodistribute,transferandmanagecoins,itneedsothercoincontrollingpartsalongwiththewallet.Thesepartswouldbesimilartotherolesplayedbyexisting'exchanges'.

Essentialfactorsoftheforumtoutilizecoins

1. Theusercancreateanownwalletfordeposit,andthroughthiswallettheusercanreceiveexternalcoinsortokensontheblockchainnetwork.

2. Theforumcancreatedepositwalletsbyuserssubordinatetotheuser'shotwallet,andforumcoinscominginatthesametimefromexternallycanbereceived.

3. Theaddressofthecoinwillchangeifthereisabehavioroftheusercreatingatradingruleforcoinsandexecutingtherules.Althoughmutualdealsaccompanyingcasharemostlyusedinexchanges,addressofthecoinswillchangeintheformsofrecommendation,donationandentriesintheforum.

4. Iftheseoccurintheforum(inthischapter'exchange'),directtransfertotheDBwillbedonewithoutusinganexternalblockchainnetwork.

5. Everyusercancreateawalletforwithdrawalwhichcanbeusedfordirectremittancetoanexternalforum,personalwalletandiflisted,toalocaloroverseasexchange.

6. Withintheforum,theadministratorcanprovidecoinsaccordingtointernalrulesoftheforumbasedonactivitiessuchaslogin,writingcommentsandrecommendation.

7. Everymembercandonatecoinstoothermembersorgivecoinsasareturnforthecommentandalsoreceivecoinsfromotherusersbasedontheiractivities.

8. Toprovethetransaction,certainpartsofcoinsofacertainusercanbelockedin.Suchlock-incanbeusednotonlyfortheescrowfunctionbutalsoforthecointobeproofofvarioustransactionsandforbettingprocesses,andalsocanbeledtoactualapprovalbylinkingwithsubsequentactions.

9. Coinscanbeusednotonlyforconditionaleventsbutalsoforbetsorbettingbetweenusers,andevenbeappliedtosimplegameswithintheforumifstrongermodulesareutilized.

10. Theforumhasbeendesignedtointroduceitsownfees.Theadministratoroftheforumcandefineacertainfeerateforthetransactionsbetweenusersinadvance,andcancollectcertainportionofthecoinprofits.

11. SinceEtherSocialandcoinsbasedonitbothuseblockchain,iftherearedeposit/withdrawalwithpartiesoutsidetheforum,therewillbefeesforblockchainminerswhichbecomeprofitsforthem.

12. Theforumcandecideonitsownfeerate,howeveraverylowfeeratecanberejectedbyminerslikeotherblockchaincoinsandtheforumcanexperiencelotsofdelays.ThisisnotsomethinganEtherSocialcompanyshouldbeinvolvedin.

13. Coinscanbeusedinsteadofcashtoapplyforvariouseventswithinandoutsidetheforum,andalimitperpersonwillpreventthetyrannyofcertainusersholdinglargeamountsofcoins.

14. Moreover,theuseofEtherSocialortokenasarewardforuseractionssuchasrecommendationisencouraged,asthepurposeistoenableactualcontentscreatorstomakeprofits.

15. Assmallforumscanexperiencedifficultiesindevelopingtheirowncoinsbecauseoftheblockchaintechnologyanddifficultiesintheverificationprocess,itisrecommendedthatthoseforumsissuetokensonEtherSocial.

Expansionfunctionstovariousforumssuchasgames

EtherSocialespeciallyisdesignedtobefirstlyappliedtocontentsreward-typeforums,andmoduleswillbecontinuouslyexpandedtobeappliedtogameforumsandsocialnetworkservicesmovingforward.

1. ExternaladvertisementscanbepurchasedthroughEtherSocialorEtherSocialbasedtokens.

2. Suchadvertisingrewardcanbeprovidedtothecontentsproducer.3. Byrestrictingrecommendationordonationperperson,amoredemocraticvotingcanbeenabled.

4. Thesamerewardisprovidedtoblogsandforumswithintheforum.(Rewardscanevenbetransferredtoablogoutsidetheforum.Inthiscase,theblogshouldhaveanEtherSocialwallet.)

5. Therearefunctionssuchasexposingtherankingofcoinsandrecommendation,howeveritisencouragedtodisablethecontentsproducerfromcheckingsuchinformation.(Withtherightoftheforumadministrator,ownedcoinscanbeexposed,andmarketingorcontentscanbeprovidedtomembersaboveacertainamountofcoin).However,aslongasthecoinispermittedtobetransferredexternally,itisbetternottobeexposedduetosecurityreasons.

APIsrequiredforactualapplication

Theforumdefinesthefunctionsofcoreitemsandexplainshowtorealizeeachmodules.Toapplythecoinstoactualsoftware,thereneedstobeasysteminplacethatdistributesthewallettoeachmember.Beginningfromsecurity,suchabarrierisasimilardifficultyexistingexchangeshad.Althoughcoinsaredesignedtoprotectcopyrightandtobedistributed,iftheuserstillhastoprogramthewallet,itwouldremainasaconceptthatcannotbeeventuallyused.Tosolvethisfundamentalissue,EtherSocialprovidesasolutionbyprovidingadditionalAPIsforthepartswhereapplicationsoftwarecontrolthewalletandthecoins.InitialAPIsarebasicallylimitedtotheforum,andAPIstoutilizeblogsandgameitemtradeswillbecontinuouslyadded.

ListofbasicallyrequiredAPIs

1. Lock-in

Definition:Lock-inistofixthechangeofstateoftheusers'coinsforacertainperiodoruntilacertaineventtakesplace.Thisfunctionisbasicallysetuptoguaranteebehaviorsafterthetransactionortoprovideescrowfunctions.Mostofthelock-intakesplaceduetotheactionchosenbytheuser,butsomelock-insareautomaticallygivenbythesystem.Typesoflock-indefinedbytheuser:preparationfortransaction,auction,cancellabletransfersTypesoflock-indefinedbythesystem:blockconditionoftheaccount,preparationfortransactionapprovalCancellinglock-in

2. Generatingcoins(anactofdistributingtousersfromtheforum)

Definition:Actualcoinsarenotcreated,butcoinsownedinternallybytheforumaredistributedtomembers)Basically,coinsarepaidtogetherwiththeinternalmileagesystemoftheforumorpoints.Coinscanbecontinuouslydistributedthroughparticipationinevents,writingcommentsandrecommendations.ThereisahighpossibilitythatthedistributionofAPIscanbe'misused'.Otherthanfunctionalhacking,issuessuchasrepetitivemembershipsubscription,helpinrecommendationcancontinuouslyoccur.ItshouldbekeptinmindthatifanappropriatecapisnotcreatedtotheapplicationofAPI,averyseriousproblemmightoccur,coinsmightevaporateovernightandtherecouldbearapidincreaseofinflationwithintheforum.Manualdistributionofcoinsissupported.Automaticdistributionofcoinsispossible,butitisbettertomanagetheoverallamountofcoinsthroughmanualdistribution.

3. One-sidedprovision

Definition:Theactofausertransferringcoinstoanotheruseroranentity(businessmemberetc.)withintheforumOne-sidedprovisionisusedaspaidrecommendation,applyingtoeventsanddonationsetc.Promises(suchasanagreementtoreceivemoneywhenthenovelispublished)thathavenotbeenfurtherconfirmedorcannotbereceived,areconsideredasone-sidedprovisioneventhoughtheymightlookliketransactions.One-sidedprovisionisdifferentfromthe'withdrawalfromwallet',ofwhichcoinsgooutthroughthewallet.

4. Mutualtransaction

Definition:TheactoftradingbetweenusersthatincludecoinsAsaforumisnotanexchange,suchtradingcanbeactedassecondhanddealsordigitalcontentstransactions,althoughitdoesnothappenthatoften.VerylimitedAPIswillbeprovided.Tousethispartmoreextensively,itisrecommendedthatdevelopmentisdonewithacomparablyqualifiedprogrammer.BasicAPIsthatareprovideddonotincludeallofthesecommercialpurposes,andsuchcommercialusageincludesbroadersecurityissuesandresponsibilities.BasicAPIsdonotguaranteetheserviceitselfandthesepartsshouldgothroughadditionalprogrammingundertheresponsibility

ofeachforum.

5. Creatingawalletaddressfordepositandwithdrawal

Definition:Creationandmanagementoftheforum'swalletaddresstoreceivecoinsofindividualusersAlthoughthecoinwalletisintheformofa'token',apersonalwalletcanbecreatedandmanaged.However,aforummemberdoesnotneedawalletasitcanbealmostunnecessary.Theforumwillcreateandmanagetheaddressofthewalletbymembersofwhichdepositandwithdrawalispossible,sothatthewalletcaneasilyreceiveorsendexternalcoins.Managingthebalancebetweencoindeposit/withdrawalandinternallyownedcoins,isverycrucial.ThisisnotonlyanitemofwhichitisdifficulttoprovideaseparateAPI,butalsoverycloselyrelatedtotheforumpolicy.Forthismatter,balanceofotherpartsoftheforumshouldbewelladjustedbasedonthebalanceofthewalletoradjustedbycreatinganarbitrarybalanceadjustmentaccount.Forblockchainrelatedissuesregardingactualdepositandwithdrawal,ifpossible,EtherSocialExplorersprovidedbyEtherSocialorexternaldevelopersshouldbeused.

Developmentplanforreward-typecontentsforum

Generalformsofcurrentforums

1. DDengleisaforuminwhichdiscussiontakesupthemainpart.Becauseofthat,thereislessburdenforproducingcontents,ascommentsorparticipationofotheruserscompletegoodcontents.Productionofcontentsisfollowedbydiscussionandverification,differentopinionsfromdifferentpositions,makingthiswholeprocessintogoodinformationandcontents.

DDengleisabulletinboardtypeforuminwhichcontentsarenotsubordinatetothewriterbuttotheforum,andtherearenoseparateprofitstobeprovided.Support,criticismandverificationareinevitable.Althoughthewritermightbeafamousperson,usersgenerallydependonrecommendedarticlesratherthansearchingthewriter'sname.Asthebulletinboardisstandardized,continuousmanagementisrequired.Equalforumsarenotalwaysthegoodforums.Itisvitaltomanagevariousnewcomersandinappropriatearticles.

2. Individualblogtypeforums.Individualscanproducetheirowncontentsandprovidehighqualitycontents,asseriescanbepostedontheblogforalong-term.However,difficultiesinadvertisingandexposingoneselfcouldaggravatethe'rich-get-richerandpoor-get-poorer'phenomenon.Astheforumisaboutpersonalservices,actualsalesorprofitsofadvertisingorpartnershipexpensescanbegenerated.Suchmotivationcanalwaysbesubstantialhelptothecreator.

Theissuewiththeblogformatisthattheblogisproportionaltothecreator'sability,butitisalsopossibletodogreateranddiversedirectingandexpressions.Therefore,lotsofeffortsarerequiredforcreationofcontents,andtherecouldbeahugegapintermsofquality.Variousprofitmodelssuchasadvertisementscanbedeployed,andstable

provisionofcontentstofollowersorneighborsthatarecontinuouslyaddedup,willeventuallyincreaseprofits.Copyrightisclear.Arrangementandclassificationofcontentsisclearandrelativelyeasy.

Developmentdirection

Advantagesofthediscussionforumcomposedofbulletinboardsandblogsshouldbecombined,andcoinsshouldbeusedasintermediariesforprofitdistributionandcontentsvitalizationtomakeusersintervenemoreactively.Tothisend,generalcreatorsshouldusetheapplicationsoftwareAPIsofEtherSocialthatareapplicable.

1. Articlespostedonthebulletinboardshouldbeabletobegroupedintheformofablog.

Basically,theformatoftheforumshouldbethebulletinboardwherediscussionsandverificationarepossible.

Articlespostedbyuserscanbegroupedandmadeintoblogs,orlinkedandcategorized.

Informationonadvertisementsorclicksofthearticleshouldbeshared.

2. 'Paidrecommendation'anddemocraticrecommendationusingcoinsshouldallbepermittedanddirectprofitsshouldbegenerated.

ByapplyingEtherSocialtoadvertisingexpensesorrecommendations,rewardsshouldbedirectlypaidtothecreator.Bypurchasingcoins,advertisersshouldbechargedusingmoreimprovedfilters.Byutilizing'paidrecommendation'forbotharticleandcomments,readerscanrewardthecreator.Bysettinglimitsperpersonforthenumberofrecommendations,democraticdecision-makingonrankingcanbeenabledifnecessary.

Activeprofitsharing

WhenusingEtherSocial,wecanreceiveadvertisingexpensesordonationsthroughourwalletsnotonlyfromourownforums,butalsofromexternalpartnerwebsitesorindividualhomepages.Therecouldbebenefitssuchasadditionalprofitsbeinggeneratedutilizingexistingcontentsandimportingone'sblogintoanewforum.

Ourgoalistheupdateofanewrewardtypecontentsforuminthefourthquarterof2018.

RewardprogramforEtherSocialdevelopers

Scopeofrewardprogram

Fromitsbeginning,EtherSocialwascreatedbasedonthecollectiveintelligenceoftheforumandcontributionsmadebyanextensiverangeofparticipantsevennotonlydevelopers.ThereforeEtherSocialincludesarewardprogramfordeveloperswhoparticipatedinthedevelopmentstartingfromcoindistribution,marketingandforallotherparticipantswhohave

contributedtotheimprovementanddevelopmentofblockchainandcryptocurrency.ThisdoesnotnecessarilyhavetobeimprovementofEtherSocialcoinbutincludesactiveparticipationfortheCrypto-CommunityForumDDengleorourowndevelopmentotherthanGitHub.Thesewouldincludehardwareormanagementsoftwareformining,suggestionsforactualuseofexistingcoins,butarenotrelatedtoprofits.However,suchrewardprogramsexcludethedevelopmentofnewcoinsforthepurposeofICO.ICOitselfisstillclosertoaprofit-makingmodelbuthasthepossibilitytobechangedinthefuture.Detailedstandardsregardingthescopeoftherewardprogramaredescribedasthefollowing.

1. ContributorsforthedevelopmentofEtherSocial

Contributionstothedevelopment,modificationandstabilizationofsourcesforGitHubofEtherSocialContributionstotheaddition,modificationandsupplementationofcontentsofWikiexcludingtheprogramitselfContributionstotheimprovementoflanguagesandpolicydirectionsofeachcountriesContributionstolocalandforeignpartnershipsfortheactualuseofEtherSocialContributionstothedevelopmentofindividualcontributionsevaluatingalgorithm

2. Improversoftheminingsystem

ContributionstothedevelopmentandmaintenanceoflocalandforeignEtherSocialminingpool

3. ApplicationSoftwareDevelopers

ContributionstothedevelopmentofEtherSocialbasedDApprelatedtotheforum,socialnetworkservice,gameandmediaContributionstothedevelopmentofAPIsforthedevelopmentandimprovementofapplicationsoftware

4. Individualwhostrivedforthedevelopmentofcryptocurrencyandimprovementofitsimageusingmarketingandsocialnetworkservices

ContributionstoEtherSocialmarketinganditsvitalizationprovidingqualitativeandquantitativecontents

5. Individualwhocontributedtoconsideringthedrawingupofpolicyoritsdirection6. Individualwhocontributedtothenewconceptanditspossibility

ContributionstothetechnologicalandapplicableexpansionofEtherSocial

Rewardprogram

ThechallengesofEtherSocialaretoassessthelevelofcontributiononafairbasisandproviderewardsthereof.EtherSocial'sdevelopmentforumwillcontinuouslydiscussaboutadditionalcontributionsandrewards,andthediscussionoutcomeswillbeappliedhenceforth.Thedetailsofthesupportplanareasthefollowing.

1. Plantovitalizeindividualdonation

ContentscreatorsorprogrammersandmarketingpeoplecanregisterontheEtherSocialcreators'forumandcreateanonymousaccountsfordonation.

ThisaccountdoesnotexposepersonalinformationandincludestheaddressofEtherSocialinternally.Ifanyonefromtheregisteredaccountmakesadonation,EtherSocialmanagerswillmakeanadditionaldonationequivalenttothedonatedamount.Ofcourse,thereisadonationceilingperpersontopreventtheoperationalfundsfrombeingdepletedduetoexcessivedonationofasingleperson.Also,adjustmentswillbemadeforfairerexecution.ThemodulesprovidedbyEtherSocialaredesignedtoenhancestabilityofdonationandmeettheinterestofcontentsprovidersbyadditionallyprovidinganamountalmostequivalenttothedonatedamount.Individualdonationwillbevitalizedbyprovidingbenefitsworththedonatedamounttothedonator.

2. Rewardplanaccordingtocontributionrankingsbasedonvoting

Asitisalmostimpossibletoobjectifyrewardsforindividualcontribution,periodicalornon-periodicalvotingisdonetoreleasetherankingreflectingcollectiveintelligenceandtoprovidethecorrespondingreward.AlistofcandidatesisdrawnupeverymonthoroccasionallybygettingrecommendationsthroughEtherSocial’swebsite.Detailsofactualactivitiesandsupportprovidedbythecandidatesarereleasedandonlinevotingiscarriedout.

Roadmap1. ThefirstESNwasminedonDecember26,2017.2. Abetatestcarriedoutbyselectingmembersoftheforum'DDengle'onJanuary15,2018.

3. 5millioncoinsallocatedtotheforum'DDengle'inthefourthweekofJanuary2018(tobeusedforthenexttenyears).

4. ThefirstESNcoinminingpoolopenedinthefourthweekofJanuary2018.Directionofbatchcoindistributionannouncedtothemembersof'DDengle'inthefourthweekofJanuary2018.(Existingmemberratingsandactivityindexreflected)

5. FormallaunchoftheEtherSocialcoininthefourthweekofJanuary2018(officiallaunch).

6. Additionalcoindistributiontomembersof'DDengle'inFebruary2018.7. ReleaseofofficialESNWhitePaperinFebruary2018.8. AnnouncementforjointdevelopmentwithexternalforumbasedonESNinMarch2018(technologicalsupportfortokendevelopmentofexternalforum).

9. OfficialannouncementofAPIsfortheuseofexternalforumsinApril2018(applicationcasesofDDengleetc.).

10. MeetuptobeheldthroughtheminingconferenceinApril2018.11. Launchofcoinsfortheuseinoverseasforumsinthethirdquarterof2018.12. ListingofESNonforeignexchangesinthethirdquarterof2018.13. Launchofcoinsfortwotothreelocalandoverseasexternalforumsinthefourth

quarterof2018.14. Launchofintegratedoperationaltoolthatcombinesforumandcoinsinthefourth

quarterof2018.15. Overseaslaunchof'contentsrewardtypeforum'inthefourthquarterof2018.

Otherissues

Introductionofuncleblocks

EtherSocialintroduceduncleblocksforthefollowingreasons.^<2>

EtherSocialhasaveryshortblockgenerationcyclecomparedtothetenminutesofBitcoin.Thiscausesweakenedsecurityduetothefollowingreasons.LetusassumethatminerAgeneratedablock.Ageneratestheblockandtransferstheblocktothenetwork.InthemeantimewhenA'sblockhasnotyetarrivedtominerB,Bmighthavegeneratedablocktoo.SinceEtherSocialprovidesnumberstoblocks,theblockofminerAandminerBwillhavethesameblocknumbers.InBitcoin,onlytheblockofminerAwouldberecognizedandtheblockofminerBwouldbediscarded,whichmeansthattheresourcesofminerBiswastedanddidnotcontributetothenetworksecurity.

Also,thereistheissueofcentralization.IfminerAhasahashpowerof30%andBof10%,theriskofAproducingastaleblockwillalwaysbe70%(asfortheother30%,sinceAcreatedthelastblock,Awouldimmediatelygetminingdata),andBwillalwayshave90%riskofproducingastaleblock.Therefore,iftheblockcycleisshortenoughnecessaryforthehighstalerate,Awouldhavemuchhigherefficiencyjustbythefactthatitssizeislarge.Asthesetwoeffectsarecombined,thereisahighpossibilitythatinablockchainofwhichtheblockcycleisshort,asinglepoolwithahighhashpowersharewillhaveactualcontrolovertheminingprocess.

Thisiswhywedonotonlyproviderewardstotheblocksoflongestchainsbutalsotoblocksthatarealmostgeneratedatthesametimebuthaveslightlylesshashpower.Thosesubordinateblocksarecalledasuncleblocksderivedfromtheword'uncle'.Theseuncleblocksalsoget87.5%oftheoriginalrewardsand‘cousin’blocksthatincludetheuncleblocksreceivetheremaining12.5%.However,transferfeesarenotgiventouncleblocks.

EtherSocialprovidesrewardsuptotheseventhgenerationofuncleblocks.Thisisbecauseifrewardsaregivenwithoutanylimits,uncleblockscanincreasetremendouslyandcalculationwillbecomemuchcomplicated.Secondly,ifuncleblocksaregivenlimitlessrewards,insteadofminingthemain,minerswillintentionallyminefromtheuncleblocks.

Fees

Asalltransactionsincludedintheblockchainrequirecomputingresourcestodownloadandverifythetransactions,acostforusingtheresources,theso-calledtransactionfeesneedtobepaid.Transactionfeesaredefinitelyrequired,becauseifnot,excessiveamountoftransactionswouldconsumecomputingresourcesandtransactionissuescouldarise.Likewise,transactionfeesneedtobepaidforthetransactionofERC-20tokenstopreventtheabuseoftransferringtokens.InBitcoinmining,asthesendervoluntarilysetsthefeesandhigherfeesareprioritizedinminingaccordingtotheprincipleofmarketcompetition,transactionfeesandgenerationofblocksaredeterminedbasedontheprincipleofsupplyanddemand.

However,oneissueisthattherearealwaysminerswhowanttomaximizeprofitswhengeneratingblocksthroughtransactions.Thisiswhythefollowingproblemscanoccur.

First,togenerateablock,numeroustransactionsneedtobeverifiedandahashthatgeneratestheblocksneedtobemade.However,asittakestimetoverifythetransactionsandthereishigherpossibilitythatblockgenerationisdelayed,minersmightnotbeabletomakeprofits.Also,asmuchasthetimeisdelayed,therewillbelesstimeforpreparationtogeneratethe

nextblock,whicheventuallylowersthepossibilityofgeneratingablock.Second,minersonlywanttoincludetransactionsthatrequirelesstimeforverificationandthatcanmaximizefeereturns.

Becauseofthesereasons,ifarationalfeestructureisnotinplace,transactionsofEtherSocialandERC-20tokensmightexperiencedifficulties.

CurrencyandIssuance

TheEtherSocialnetworkhasitsowncurrencycalled'ESN'whichisusedinternally.ESNisanintermediarythatenablesefficientexchangesbetweenvariousdigitalassets,andalsoprovideswaystopaytransactionfees.Fortheconvenienceofusersandtopreventanypossibledisputes,thenamesforeachunitofESNarealreadydefinedasthefollowing.(RefertoargumentsaboutthenamingofBitcoin)

1:wei10¹²:szabo10¹⁵:finney10¹⁸:ESN

Itwillbeeasiertounderstand,iftheabovenamesarethoughtasextendedconceptslike'dollars'and'cents'oftheAmericancurrency,or'BTC'and'Satoshi'ofBitcoin.Othernamesarenotincludedintheclientasofnow.

Currencyissuancemodel:

ESNisusedtofinanciallysupporttheEtherSocialorganization,tocollectfundsnecessaryfordevelopment,togiverewardstodevelopersandasaninvestmentfundforvariousprofit-makingandnon-profitprojectsrelatedtoEtherSocial.

InitialEtherSocialamountwhichhasbeensecuredbeforemakingpublicwasownedbythe‘DevelopmentTeam(Geminis)’andtheinitialsupplyamountis49millionESN.ThisamountisdividedintoHoldingAmountandCirculatingAmount,HoldingAmountislong-terminternalESNforDevelopmentTeam,andCirculatingAmountisforpubliccirculationtowardsgeneralusers.

※HoldingAmount

HoldingAmountis35%oftheinitialsupplyamount,anditisusedfor‘Development’,‘Reserve’,and‘Legal’.ESNallocatedfor‘Development’canbeuseddirectlyforESNcoreandecosystemdevelopmentandsupportsthedevelopmentteam,whichisabout20%oftheinitialsupplyamount.Among‘HoldingAmount’,theReserveisabout10%oftheinitialsupplyamount.Thereservewillbekeptforalongperiod,andifanunexpectedsituationhappens,thisamountcanbeused.Besides,‘Legal’amount,whichisabout5%oftheinitialsupplyamount,willbeusedforsuchaslegaladvisoryexpenses.

※CirculatingAmount

CirculatingAmountisabout65%oftheinitialsupplyamount.Thisamountwillbecirculatedexternally.AsforMarketing,38%oftheinitialsupplyamount,canbeusedasmarketingexpensessuchasactiveadvertisementandpromotion.Forcommunityandairdrop,about10%oftheinitialsupplyamountwillbeallocatedandsomoreuserswilluseESN.

‘Bounty’meansESNrewardsforspecialmissionparticipantsorcontributorsofdevelopmentanddesign.Itisalsoabout10%ofinitialsupplyESNisallocatedforESNdevelopmentandspread.‘Private’amount,whichis7%oftheinitialsupplyamount,canbeexchangedbyEthereum.

※ESNsupplyafterinitialissuance.

Afterthetimeofmining,18,709,078ESNarenewlyissuedforthefirstoneyearandafterthateveryyearatotalof15,626,576ESNarenewlyissuedtominers.Afterthat,dependingonthelevelofblockandminingdifficulty,miningamountcangraduallydecrease.Miningalgorithmcanbechangedbydevelopersdependingonthelevelofminingdifficultyandtheuseofaminingequipment.

Thefollowingexplanationisaboutthelegitimacyofthe'EtherSocialforum'sreserve'.Forexample,EtherSocialcanbeconstantlydistributedeveryyearfortenyearsandcontributetoincreasingtheuserbase.Acertainportionwillbedistributedaccordingtothecontributionsoftheforum'smembersandanotherportioncanbedistributedthroughspecificevents.Also,EtherSocialcanbedistributedifnecessary,asabasicassetforusingEtherSocialtokensinotherforumsorwebsites.Ifthereisnosuchreserve,EtherSocialcannotbeeasilyacquiredandtheuserbasewillinevitablybecomesmaller.

Legitimacyofthe'distributiontoEtherSocial'sdevelopmentorganization(Geminis)'canbeexplainedasthefollowing.Manydevelopmenthumanresources,planningandmarketingmanpowerarerequiredtodevelopblockchainandvariousAPIsaswellasforrepairandmaintenance.Asexpensesareaccompaniedinrunninganorganization,tocoversuchexpenses,EtherSocialhastobedistributedtotheEtherSocialdevelopmentorganization.Forlegitimacyofthe'long-termreserve',thefollowingexplanationcanbeapplied.Thislong-termreserveisnottobedistributedtothemarketforatleastoneyear(ormorethanayear).Forthefirstoneyear,miningrewardis18,709,078ESN,meaningthattheproportionoftheminedamounttotheinitiallyissuedamountismuchhigherthanothercryptocurrencies.However,ifinitialissuanceisincreasedtoomuch,thenESNmaynotbecomeawidelyusedcryptocurrency.Therefore,initialissuanceshouldbekeptatalevellowerthanthehalfofEthereumbutnottoolow,anddistributionforthefirstoneyearshouldbeprohibited.

Forcomparison

InitialissuanceofEthereumis70,002,436ETHandminingrewardforthefirstoneyearis15,626,576ETHInitialissuanceofEtherSocialis49,922,490ESNandminingrewardforthefirstoneyearis18,709,078ESN.Afterwards,miningrewardperyearwouldbe15,626,576ESN.

PermanentlyissuingnewcoinsfromasetamountofESNcouldrelievethe'concentrationofwealthphenomenon'currentlyBitcoinisexperiencing.Also,itprovidesopportunitiesforcurrentorfutureparticipantstoacquireEtherSocialthroughminingandnotthroughthemarket.ByincreasinginitialminingmorethanEthereum,9ESNshallbesetastheminingrewarduntil300,000blocksand5ESNfortheblocksafterwards.

MiningCentralization

Bitcoinminingisdonebyrepeatedlyhashingthesha256blockheaderuntilavaluelowerthanthetargetvalueisacquired.However,therearetwoweaknessesinthismethod.

First,thebarriertoparticipateinmininghasbecomemuchhigher.CurrentlymininghasbeencompletelyencroachedbyASIC.AstheminingASICcanhavethousandtimesmoreefficiencycomparedtothegeneralGPUminingequipment,miningthroughGPUhasbecomelesseffectiveintermsofcompetitiveness.Ifminingactivitiesweredecentralizedinthepast,nowcentralizationduetoASICisintensifying.

Secondisthemethodofmining.Itisnotthatparticipantsfromvariousregionstakepartinthegenerationofblockslikethepast.Nowadaystheyparticipateinminingdependingonblockheadersprovidedbytheminingpool.Therearesignificantside-effectsarisingfromthissituation.Asofnow,threeminingpoolshavebeentransferredwiththecomputingpowerofindividualsandareindirectlycontrollingalmost50%ofthehashes.Ofcourse,asindividualscanmovetosmallerpoolsbeforetheshareofthosepoolsexceed50%,thosepoolscannotarbitrarilyabuseresources,.However,thisstillremainsamajorissue.

EtherSocialminingworksslightlydifferent.Eachminerbringsrandominformationfromthestate,hashesdetailsofrandomlyselectedrecentblocksandcomesupwiththeresultvalue.Therearetwoadvantagesinthismethod.

FirstisthatEthereumcontractscanincludecalculationmethodsofalltypesofcomputers.Naturally,ASICwouldhavetobedesignedtofitforallcalculationmethods,butthenitwouldbecomeahighperformanceCPUratherthananASIC.Inreality,ASIC(ApplicationSpecificIntegratedCircuit)itselfwillbecomeuseless.

Second,minerswouldhavetoverifyalltransferdetailsbydownloadingthewholeblockchain.Inthiscase,therewouldbenoneedforalargeandcentralizedpool.Ofcourselargepoolshavetheeffectofequallydistributingrewardstoparticipantsforgeneratingnewblocks,butthateffectcanalsobesufficientlyrealizedthroughtheP2Ptypepool.Thereisnoneedtouseacentralizedpool.

However,atsomepoint,ASICsdesignedforEthereumminingcanbereleased.Thereforeatthistime,decentralizedminingshouldbeenabledbyapplyinganewhashalgorithmdifficultfortheASICtouse.

ConclusionEtherSocialprovidestokenmanagementtoolsthatcomplywiththegeneral-purposeERC20rulesbasedonsmartcontract,aswellasAPIsthatcaneasilybecombinedwithvariousservices.EtherSocialalsoprovidesadministratormanagementtoolsthatenableapplicationswith'escrow,setupofwithdrawallimit,financialcontractsandotheradvancedfunctions'tobeusedinvariousservicesthroughaverygeneralprogramminglanguage.EtherSocialalsoprovidessupporttotheoreticallycreatealltypesoftransfermethodsorapplicationsthroughtheturing-completelanguage.Throughthesefeatures,forumhostsoradministratorsofallservicesthathaveaccountscanusetheseservicesmoreeasilyanduniversally.

References1. BitcoinWhitepaperhttps://bitcoin.org/bitcoin.pdf2. EthereumWhitepaperhttps://github.com/ethereum/wiki/wiki/White-Paper3. SteemWhitepaperhttps://steem.io/SteemWhitePaper.pdf