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Table of Contents
1. BCS Application ............................................................................................................ 2
1.1. Description ........................................................................................................... 2
1.2. Copyright Notice .................................................................................................. 2
1.3. Disclaimer ............................................................................................................. 2
2. Market Research .......................................................................................................... 3
2.1. The E-COMMERCE MARKET ................................................................................. 3
2.2. Sector overview and statistics ............................................................................. 4
2.3. B2B: Business to business .................................................................................... 5
2.4. C2C: Customer to Customer ................................................................................ 7
3. HOW BCS can help develop the B2b and C2c market? ................................................. 7
4. HOW BCS improves the e-commerce market ............................................................... 8
5. BCS Trading System & BUSINESS MODEL ..................................................................... 9
5.1. TREASURY CONTROLS .......................................................................................... 9
5.2. ADVANCED SECURITY ......................................................................................... 10
5.3. 24x7 MONITORING ............................................................................................ 10
5.4. BCS Transaction Settlement............................................................................... 10
5.5. Smart contracts .................................................................................................. 11
6. Applied Technology .................................................................................................... 12
6.1. Blockchain and Bitcoin ....................................................................................... 12
a) Internet, Blockchain, Ether and NEO .............................................................. 14
b) Bitcoin ............................................................................................................. 14
c) Ethereum ........................................................................................................ 16
d) Centralization of the Money Supply ............................................................... 17
e) Payment System Control ................................................................................ 18
g) Risk of inappropriate surveillance .................................................................. 20
7. NEO vs ETHEREUM ..................................................................................................... 21
7.1. Similarities NEO – Ethereum............................................................................... 21
7.2. Differences NEO – Ethereum ............................................................................. 21
8. Proof of stake vs proof of work .................................................................................. 22
8.1. Finality ................................................................................................................ 25
8.2. Public Key Infrastructure ................................................................................... 25
8.3. Smart contracts and transactions ...................................................................... 26
8.4. Human resource availability .............................................................................. 27
8.5. Quantum resistance ........................................................................................... 28
9. WHY NEO ................................................................................................................... 28
9.1. How Neo achieves many transactions per second? .......................................... 29
9.2. Merkelized Abstract Syntax Tree (MAST) .......................................................... 29
10. Project Description ..................................................................................................... 39
10.1. Mast Data Structure ....................................................................................... 39
10.2. Mast Nodes .................................................................................................... 40
10.3. Proof Lists ....................................................................................................... 41
10.4. Public key and private key .............................................................................. 42
10.5. Nodes ............................................................................................................. 43
10.6. Code Execution ............................................................................................... 44
11. Development Plan ...................................................................................................... 47
11.1. Real world applications .................................................................................. 47
11.2. Example: Panorama View ............................................................................... 48
11.3. 3D Panorama .................................................................................................. 49
12. Virtual Reality ............................................................................................................. 49
12.1. Example: 3D Modeling World ........................................................................ 50
13. Competitive Environment .......................................................................................... 52
13.1. Providers of decentralized marketplaces ....................................................... 54
14. Token Generation Event ............................................................................................. 54
15. Future Development .................................................................................................. 55
16. BCS ROADMAP ........................................................................................................... 56
17. Team Introduction ..................................................................................................... 57
18. Project Github Link Address: ...................................................................................... 59
19. Global Recruitment: ................................................................................................... 59
19.1. Cryptographic Experts .................................................................................... 59
19.2. Distributed Computing Experts ...................................................................... 59
19.3. Back-end Programmers .................................................................................. 60
19.4. Graphic Designer UI/UX Designer ................................................................. 60
20. Contact ....................................................................................................................... 61
21. References ................................................................................................................. 62
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Executive Summary
The Blockchain Store - BCS was formed with the explicit purpose of developing a
decentralized marketplace .BCS is launching its application «The Blockchain Store», which
is a peer-to-peer e-commerce platform is based on smart contracts. The Blockchain Store
recreates the global infrastructure of major e-commerce corporations, such as eBay and
Amazon, entirely in code. We also inspire to create more block scenarios, large number of
blockchain lovers, and digital currency enthusiasts to create a digital currency extension
value platform.
BCS has the aspiration to enable truly free trade on a global scale. The company
envisions a global economy in which all participants can conduct business with each other
peacefully and efficiently, regardless of their location and without interference, censorship or
prohibitively high fees.
We also aspire to combine e-commerce with virtual reality (VR) giving the user a
unique and immersed visual experience, included with a reliable and secure credit system. In
other words, we want to create a virtual reality world where everyone can join a community
to conduct transactions of any sort or even purchase items from a virtual store using our
token. The purchased virtual item will then then be delivered to your address as an actual
physical good. Imagine that when you want to buy a shoe online, you do not know your exact
shoe size or how it will actually look on you. But with our BCS virtual store, you can try on
the shoes first and see whether it fits to you before making the purchase. Many industries will
benefit from our technology – both in tangible (physical) and intangible (virtual) form.
BlockChain Store
English full name: BLOCKCHAIN STORE
Chinese name: BlockChain Store (it is not selling blockchain)
English abbreviation: BCS
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1. BCS APPLICATION
Enabling e-commerce platforms to thrive has been one of the main successes of the
internet, by bringing a broader array of goods at cheaper prices to a much larger number of
potential consumers .In addition, the ease of use and the consumers' ability to share almost
instant feedback on the goods purchased are significant advantages. But certain fundamental
aspects of today's e-commerce market should be improved .They are rooted in the nature of
our monetary system and the need for centralized parties to handle the payment transactions .
By essentially recreating the infrastructure of an e-commerce store using smart contracts, The
Blockchain Store intends to lift e-commerce to a different level by eliminating these
disadvantages and making the e-commerce market more efficient.
1.1. DESCRIPTION
This document is the BCS white paper version 0.3, which includes additional
descriptions of BCS strategic goals and technology roadmaps .BCS will be continuously
updating this white paper to reflect new developments .For the latest information on the BCS
white paper, roadmaps, team, foundation management, investors, and strategic partners,
please visit the BCS official Web site: https//:www.bcschain.io
1.2. COPYRIGHT NOTICE
The copyright of this document is owned by BCS, and all rights are reserved
1.3. DISCLAIMER
BCS will be continuously developing its technology and organizational structure, but
aims to keep the current governing principles of the BCS community as well as the allocation
plan of BCS tokens.
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2. MARKET RESEARCH
2.1. THE E-COMMERCE MARKET
The internet has radically changed the way business is done, and this change is most
dramatic in commerce .Previously, shopping was predominantly done in person and on-site, or
by using slow and inflexible mail-order systems .Supply was limited, too .Today, efficient e-
commerce platforms offer a formerly unthinkable variety and transparency of goods – and
reach vast customer segments also in remote and under-developed areas.
Although the first online stores were rudimentary and static and offered a very poor
user experience, online shopping gained strong momentum, and the e-commerce sector is
rapidly growing and far from mature in various respects . E-commerce came of age in the early
years of the 21st century, but remains a high-growth sector – not least due to the opportunities
offered by the proliferation of mobile devices.
The new middleclass E-commerce mainly relied on developed markets in its early
stage, but business patterns show a new form of emerging consumers .With disposable
incomes on the rise in many emerging markets, the world of electronic commerce is poised to
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be driven by the increasing and increasingly wealthy new middle class .While internet access
rates across developed markets are well above 80%, emerging markets have yet to catch up .
Applying the same average access rate to emerging markets would lead to an additional 1.1
billion people who have access to e-commerce .So, the industry's growth outlook remains very
positive.
2.2. SECTOR OVERVIEW AND STATISTICS
E-commerce is a huge and rapidly expanding sector .In 2016 global sales for products
and services purchased via the internet totaled approximately $1.9 trillion, representing
around 8.7 %of all retail spending .By 2020, online retail sales are expected to have grown to
$4 trillion – with a compound annual growth rate (CAGR )of well over 20 .%By that time,
electronic commerce will make up about 14.6 %of all total retail sales.
But the most powerful market dynamics are observed in the emerging markets, where
the share of consumers shopping online has more than doubled since 2011. China continues
to dominate the e-commerce market while other countries such as India and Turkey are
catching up .Online spending per capita across most of the emerging world remains well
below levels seen in developed countries, creating good growth opportunities going forward .
The Credit Suisse 2017 Consumer Survey estimates that online «retail» spending in emerging
markets may exceed $2.5 trillion by 2025.
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2.3. B2B: BUSINESS TO BUSINESS
The B2B market is dwarfing the business-to-consumer (B2C )e-commerce market and
has very different properties and needs .Rapidly changing distribution channel dynamics are
redefining wholesalers' business models across a broad spectrum of product and service areas .
Like manufacturers, wholesalers have to go beyond competing on price and availability and
provide excellent omni-channel customer experiences. In addition, growth drivers of B2B e-
commerce will include globalization of procurement and cost advantages .These market
factors and more are driving B2B e-commerce platforms .In the United States for instance,
B2B e-commerce platforms are expected to post double-digit growth figures through 2020.
A recent Forrester study showed that 74 %of B2B buyers in the United States research
about half or more of their work purchases online before buying .The same study found that
about 30 %make half or more of their work purchases online
Today, while 56 %expect to make half or more of their work purchases online in three
years .These dynamics will eventually take hold also in other regions, including emerging
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markets, which for the most part still rely on traditional channels of commerce .As well as
serving B2C customers, The Block will squarely target B2B e-commerce in both its design
and its marketing, recognizing that the growth of this sector represents a key opportunity for
adoption.
The figure above shows the major components of US payments volume between C2C,
B2C, and B2B in 2016.
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2.4. C2C: CUSTOMER TO CUSTOMER
Inspired by the success of online marketing platforms such as eBay and Taobao,
online C2C transactions as a major e-commerce form have become popular .These platforms
have made it extremely easy for both sellers and buyers to purchase and sell goods and
services . When looking at China's online shopping market, the C2C segment represents a very
large portion of the gross merchandise value (GVM), estimated at 45 %in 2016 .This model is
quickly being replicated across the globe as barriers to entry are close to zero .Emerging
markets have become the focus of such platform types, with wealthier buyers opting to
choose an online B2C marketplace.
3. HOW BCS CAN HELP DEVELOP THE B2B AND C2C MARKET?
We, at The BCS Blockchain Store, believe the Blockchain technology and
cryptocurrencies can access and integrate some or all of that market potential While multiple
options exist in the cryptocurrencies market space, The Blockchain Store simplifies the
overall experience from the point of view of both the buyer and seller.
It’s clean and intuitive interface will be familiar to anymore who shops online .The
fact that the BCS wallet is integrated with Shapeshift, and its own managed escrow system,
are just two of the features that will facilitate better adoption. The Blockchain Store has put a
lot of emphasis on privacy, allowing transactions to take place in a completely automated and
anonymous way.
As a decentralized platform with all listings held on the Blockchain, The Blockchain
Store never goes offline and there is no single point of failure. Third-party application
integration will be added in time, with the goal of creating a full-fledged ecosystem which
prepares a new generation of users for e-commerce 2.0 .
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4. HOW BCS IMPROVES THE E -COMMERCE MARKET
The Blockchain Store intends to address these deficiencies with the creation of a
decentralized e-commerce platform . The Block will implement smart contracts to provide an
e-commerce infrastructure and use cryptocurrency for customer purchases and merchant
listing fees .By using smart contracts for the creation of the online store and BCS's native
currency, the project eliminates the need for third parties that have previously always been
necessary for hosting and payment processing.
One important consequence of its decentralized design is that The Blockchain Store
will further enhance user privacy .Not only can cryptocurrency payments offer a strong
element of anonymity, but there will be no third parties collecting user data .The Blockchain
Store itself does not need any personal data, operating in a permission-less manner and
performing no monitoring .A user needs only the BCS application and a small amount of
coins to get started and connect to the BCS Blockchain.
E-commerce giants like Amazon and eBay depend upon extensive server farms to host
their websites and to deal with traffic .Although this approach offers efficiencies when
compared to the traditional use of physical stores, it still has substantial costs attached to it.
The Blockchain Store replaces these enormous and expensive data centers with code .
The overhead of running a global e-commerce store is eliminated – or, more accurately,
distributed between the nodes which maintain the network .BCS essentially recreates the
infrastructure of an e-commerce store using smart contracts and is therefore in a position to
pass on the savings this brings to the e-commerce market participants in the form of
extremely low fees .
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5. BCS TRADING SYSTEM & BUSINESS MODEL
BCS mall trading system components based on open source building mall trading
system, support for C2C mall transactions, support for 3D product display transactions.
5.1. TREASURY CONTROLS
All of our wallets use industry standards of multi-sig for security for offline software
wallets and Hardware wallets (HD) for financial privacy. Technology is similar to BIP1,
meaning that all future addresses are based on a single seed value instead of being randomly
generated on-demand.
1 BIP: Bitcoin Improvement Proposal, a document describing a technology proposal
for the Bitcoin Core software
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5.2. ADVANCED SECURITY
Build in powerful business rules for co-signing including rate limits, address
whitelists, webhooks, secondary approvals, and more . Our Blockchain enables the realization
of this vision .BCS is made up of a team of highly committed individuals with different
backgrounds and careers, all of which have led them to the Blockchain technology .Some
team members are developers who have worked with JavaScript, Angular, Python and other
languages, others have a background in trading on the diverse cryptocurrency markets.
5.3. 24X7 MONITORING
Get instant alerts for every transaction, track audit logs, and get detailed reports for
your bitcoin holdings .We believe that in the future many assets will be digitized and
transacted on a Blockchain .BCS history of innovation and track record of solving the most
difficult technical, security and compliance problems associated with Blockchains uniquely
positions us to help clients create a solution that works for them in the real world.
Many Blockchain companies do proofs-of-concept only .BCS moves beyond proof-of-
concept into design, development, and delivery of real-world applications .We approach
private Blockchain construction in pursuit of the same end goal that has guided our work on
public Blockchains :making digital currencies function as mature systems with enterprise-
scale tools.
5.4. BCS TRANSACTION SETTLEMENT
Because very few merchants accept cryptocurrencies at point of sale or online,
consumers must exchange cryptocurrencies into their local currency to make everyday
purchases .Through any existing exchanges this can be time consuming, and comes with
sizable fees .Though some companies have made products thatenable retailers to accept digital
currency payments, they are currently available at only a tiny number of locations.
Our goal is for this exchange to occur in real time, anywhere credit cards area
accepted, and with fees comparable to transaction costs on Ethereum .At present, the
confirmation time for Bitcoin transactions averages 10 minutes, far too long for point of sale
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purchases .Ethereum transactions are faster, at an average time of 24 seconds, but even this is
too slow for point of sale .Furthermore, neither the merchant nor the local currency provider
are willing to wait the required amount of time for the transaction to be confirmed on the
Blockchain, which is critical to protecting both parties against fraud.
5.5. SMART CONTRACTS
Another important point for us is the concept of smart contracts. Before we present
our solution, it will be best to analyze the existing blockchains that support the
implementation of smart contracts. We will now present the differences and similarities
between these two platforms.
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6. APPLIED TECHNOLOGY
6.1. BLOCKCHAIN AND BITCOIN
A Blockchain is essentially a distributed database of records or public ledger of all
transactions or digital events that have been executed and shared among participating parties .
Each transaction in the public ledger is verified by consensus of a majority of the participants
in the system .And, once entered, information can never be erased .The Blockchain contains a
certain and verifiable record of every single transaction ever made. To use a basic analogy, it
is easy to steal a cookie from a cookie jar, kept in a secluded place than stealing the cookie
from a cookie jar kept in a market place, being observed by thousands of people. In short,
blockchains is transparent.
Bitcoin is the most popular example that is intrinsically tied to Blockchain
technology . It is also the most controversial one since it helps to enable a multibillion-dollar
global market of anonymous transactions without any governmental control .Hence it has to
deal with a number of regulatory issues involving national governments and financial
institutions. However, Blockchain technology itself is non-controversial and has worked
flawlessly over the years and is being successfully applied to both financial and non-financial
world applications.
Current digital economy is based on the reliance on a certain trusted authority .Our all
online transactions rely on trusting someone to tell us the truth—it can be an email service
provider telling us that our email has been delivered; it can be a certification authority telling
us that a certain digital certificate is trustworthy; or it can be a social network such as
Facebook telling us that our posts regarding our life events have been shared only with our
friends or it can be a bank telling us that our money has been delivered reliably to our dear
ones in a remote country .So a Central Authority (CA) is needed. The fact is that we live our
life precariously in the digital world by relying on a third entity for the security and privacy
of our digital assets.
The fact remains that these third-party sources can be hacked, manipulated or
compromised .This is where the Blockchain technology comes handy .It has the potential to
revolutionize the digital world by enabling a distributed consensus where each and every
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online transaction, past and present, involving digital assets can be verified at any time in the
future .It does this without compromising the privacy of the digital assets and parties
involved. The distributed consensus and anonymity are two important characteristics of
Blockchain technology .
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a) Internet, Blockchain, Ether and NEO
Without doubt, the internet has revolutionized how humans live, communicate, think,
and shop –how they live their everyday lives .It has turned their very existence upside down .
Today, most humans take the internet for granted and cannot even imagine their lives without
it .The internet was born nearly five decades ago, and since then, technology has rapidly
advanced by huge leaps.
About 15 years ago, only 12 %of all people owned mobile phones .Now, more than six
out of ten persons worldwide use a mobile phone .About 15 years ago, one third of the
population in developing countries lived in extreme poverty, compared to less than 15 %today .
Facebook, which now has nearly 1.5 billion users, had not even been launched then .In
another fifteen years' time, who knows how much technological innovation and
developments society will see, and what changes this will bring?
Cryptocurrencies offer a fundamentally different way of approaching money and
conducting online commerce . The development of Blockchain-based money solves a number
of problems inherent in the current financial system .While it is not a panacea, the advantages
of a properly implemented e-commerce platform with integrated cryptocurrency payments are
extensive.
Below, we present Bitcoin, Ethereum and Neo. The former for historical reason and
the other two because they are platforms that can execute smart contracts (which we are
going to analyze soon).
b) Bitcoin
The first true cryptocurrency was bitcoin .Articulated in Satoshi Nakamoto's 2008
white paper, bitcoin deals with the «double spending» problem through the use of a shared
ledger that is maintained by a large number of network nodes .By contriving a system in
which it is computationally expensive to add a block of transactions to the ledger, but easy
for anyone to verify it, bitcoin makes it unlikely for any member of the network to succeed in
submitting a fraudulent transaction – and it is expensive to try to do so. Thus miners – those
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tasked with upholding the security of the network – are better acting honestly and
maintaining the integrity of the ledger.
Financial Independence
This enabled genuinely peer-to-peer transactions online for the first time ever :a
remarkable break through, and a task that many experts believed could not be achieved .
Nakamoto's implementation of his white paper effectively removed the need for a trusted
third party to act as a middleman in online transfers .Money, which had been centralized for
millennia, and for decades in terms of the payment system, could once again become purely a
tool of commerce rather than a way to extract value and exert control . Because bitcoin
transactions take place directly from sender to recipient, and without the involvement of a
centralized third party they cannot be censored . Once a transaction has been accepted into the
ledger, there is no way of reversing it .This has a simple but powerful implication :if you want
to send someone money, you can .There is no authority that can block or reverse the transfer .
Bitcoin's financial system restores full autonomy to its users.
Low-cost Transfers
Because bitcoin and other cryptocurrencies use a Blockchain to secure transactions,
there are no middlemen to keep accounts, and therefore, there are no single entities that can
charge fees for the service . Miners collectively process transactions and are rewarded for
verifying a block with both new coins (block rewards, currently set at 12.5 bitcoins per block )
and the smaller fees incurred with each transfer .Unlike the legacy banking system, bitcoin
does not recognize geographical borders .Transferring funds to a neighbor on the other side of
the road is as fast and efficient as sending money to the other side of the world .While banks
and remittance services tend to charge significant flat fees as well as unfavorable exchange
rates between currencies, bitcoin's fees are fixed and low by comparison. Other Blockchain
protocols tend to charge even lower fees.
Privacy
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Bitcoin's use of a shared ledger to facilitate peer-to-peer transactions also has
implications for privacy .The bitcoin ledger is fully transparent by design, meaning that
anyone can trace transactions from one address to another, right back to the block in which
the coins were first created . However, because addresses are essentially strings of random
alphanumeric characters, it is not inherently obvious to whom the address belongs .Bitcoin is,
strictly speaking, pseudonymous rather than anonymous .That means that transactions can be
tracked back but fact is that is not known which is the real person behind the bitcoin address.
While data may be leaked in a variety of ways that associate a bitcoin address with other
personal information that can reveal the owner's identity, by using best practice it is possible
to use bitcoin anonymously .The lack of a trusted intermediary means that no information
need to be registered to use a bitcoin wallet . There is no administrative authority to control
transactions or to collect user data.
c) Ethereum
Bitcoin offers a huge leap forward in the fields of online financial privacy and
independence, but it is limited in its scope .Bitcoin does one thing very well: transferring
value securely . Although bitcoin is the largest cryptocurrency, adoption has been limited, and
a large part of the ecosystem's economic activity is accounted for by roles that support the
currency itself, such as mining and trading.
Relatively few merchants have taken the step of integrating bitcoin payments .This is
partly because they do not consider the disadvantages of status quo grave enough to switch to
something that still has a significant technical overhead and is viewed as experimental, and
partly because a broad user-base does not exist yet.
Bitcoin has been adopted on the dark web, where its relative privacy and freedom
from intervention have made it the currency of choice for online drug markets.
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However, bitcoin only addresses one side of the e-commerce transaction :the buyer's .
Online stores require the involvement of a third party, which holds a database of products,
merchant information, and transaction histories – with all the coupled risks for privacy.
Smart Contracts
Developed by the Ethereum foundation, a Swiss non-profit organization, Ethereum
upends the traditional approach to offering services on the internet .Instead of building server
farms across the world – staffing them, maintaining them, and securing them – Ethereum
makes it possible to build a global computing infrastructure by using a type of coding called
«smart contracts . These contracts allocate computing resources across the Blockchain and
reward those who use their own hardware to support the calculations required .With the right
skill and hardware, anyone can join this effort by creating an Ethereum node and be
compensated for their contribution, all without a central coordination authority.
Ethereum works in a fully decentralized manner, just as the bitcoin Blockchain does .
Smart contracts are pieces of code, whose execution is ensured by the network as a whole, in
the same way that bitcoin's transfers and records of funds are policed by the whole network .
This means that applications that run automatically can be built, and the reliability of the
services they offer is guaranteed because there is no single point of failure.
Ethereum's smart contracts therefore offer the possibility of an e-commerce platform
that has unique properties :privacy for both the buyer and the seller, complete freedom from
censorship and interference, and low or even zero fees for users.
d) Centralization of the Money Supply
For the overwhelming majority of history, money has been a physical commodity of
one sort or another that was handled in person and used in «peer-to-peer» transactions . Money,
as we formally recognize it today, probably arose around 7,000 years ago in the Sumerian
temple complexes .At the beginning, money was entirely decentralized; the parties to a
transaction would weigh out the (typically) silver pieces at the point of transaction, testing the
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metal with a touchstone to establish purity .The inconvenience of this approach was mitigated
by its complete independence from outside control and interference .Centralization of the
money supply arose in the 6th century BC, with the development of the first coinage .At that
point, money came under the control of the state and has remained so ever since .Further
centralization occurred through the rise of the banking system, particularly during the
Renaissance period under the Medici family .Nevertheless, money was still backed by a
physical commodity.
Two factors have fundamentally changed the nature of money over the last century .
The first is that it became severed from any tangible commodity with the introduction of
«fiat» money in the aftermath of the Great Depression .While this enabled national economies
to adjust and recover more quickly, it placed ultimate control over the creation of money in
the hands of governments and central banks .
The second factor is that our payment system has moved progressively into the
electronic arena over the past 50 years .Today, the vast majority of payments are made online.
e) Payment System Control
As money moved online, it could no longer remain a peer-to-peer system .Because data
are easy to copy, it was impossible to ensure that electronic money was only spent once .
Trusted authorities were required to keep accounts and make sure that transactions were not
fraudulent .This became one of the roles of banks, credit card companies and payment
processors such as PayPal in the financial system .Online payments required centralization for
accounting purposes, which also entailed trust.
This trust can be and routinely is abused, whether as a matter of policy or incidentally .
Payment processors act as an intermediary between the parties of a transaction and can block
or reverse a transfer .This has benefits for customers who have experienced identity theft, but
there are implications for merchants, who can be hit with chargebacks .For example, eBay
routinely sides with customers in such disputes, unfairly impacting sellers.
19
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g) Risk of inappropriate surveillance
The fact that third parties are required for online purchases opens the door for
surveillance, since there is always someone who holds financial information that can be
leveraged in one way or another .This is the case for both customers and merchants, both of
whom require payment processing facilities such as PayPal or credit card companies.
Additionally, the platform used for the sale itself (e.g .eBay or Amazon )will collect
further information and will likely host the products and stores of thousands of merchants .
The involvement of these third parties has eroded the privacy we enjoyed in the case of
simple cash transactions . Our online footprint is tracked, analyzed and monetized at every
turn, with personal data sold to the highest bidder .Even when we consent to this (tacitly or
explicitly), and even when it is used for legitimate purposes, these data are attractive for a
wide range of purposes and are frequently stolen, leaked or sold to malicious entities.
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7. NEO VS ETHEREUM
7.1. SIMILARITIES NEO – ETHEREUM
NEO and Ethereum are both blockchain projects specifically designed to host smart
contracts, ICOs, and DApps in a decentralized manner. Their respective blockchains are
fueled by crypto-assets (GAS in NEO, Ether in Ethereum). Both the projects are open-source,
Turing complete, and have ample community Backing with great, responsive teams. These
are the important similarities between the two systems. While there might be other we didn’t
deem them relevant to this study.
7.2. DIFFERENCES NEO – ETHEREUM
NEO is backed by WINGS, Alibaba, and various Microsoft-like companies. Ethereum
is supported by the EEA-Enterprise Ethereum Alliance which also includes many
corporations: ING, MS (again), J.P. Morgan, Credit Suisse and others. Ethereum is older, so it
has greater adoption but this will probably change in the future.
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8. PROOF OF STAKE VS PROOF OF WORK
Proof of work(PoW) is the mechanism that protects the Blockchain from malicious
attacks. For someone to launch a successful attack he must spend enough computational
power that can take down the majority of the other nodes)the notorious "democracy attack" or
51% attack of bitcoin and similar cryptos(. Majority does not mean an equal "voting" of the
nodes but majority in terms of computational power. In short, an attacker needs to waste
tremendous resources )on electric power and hardware investment( just to reserve a
transaction. So it is a matter of brutal computation )economically unprofitable(. For
blockchains that based on PoW algorithms )for example SHA256, scrypt, CryptoNight etc(
their protection is based on computation power. The higher the total amount of energy and
hardware is invested in mining, the better for the security. PoW also implements mining for
the new blocks to be generated.
Proof of Stake(PoS) is based on the consensus of the nodes who form the network.
The holders )owners( of the currency or token can "lock" them and when the time come for a
new block it is distributed to them. So no computation power is needed. Whoever is a holder
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can have a stake of future generating wealth. Now, the question is how PoS can guarantee the
security of the Blockchain.
Let's see Neo mechanism on that. The owners "vote" for representatives, which called
bookkeepers. These bookkeepers are the gatekeepers of the stability of the blockchain.
Bookkeepers must reach a mutual agreement before a record takes place on the blockchain.
This agreement, or in other words consensus, validate all transactions. A bookkeep broadcasts
the whole chain to the network and at least 66% of the bookkeepers must agree, else no
consensus is reached, so some other bookkeeper broadcasts and so on. This leads to the
Byzantine Generals problem. If many owners are malicious and want to take over the
network , they will elect the bookkeepers which will vote a nonvalid blockchain. This is
unachievable in practice because the owners have motive to be honest. To take over the
network they need to spend much to get the ownership of two thirds of the bookkeepers. This
mechanism is called dBFT )Delegated Byzantine Fault Tolerant(. Mathematically, the fault
tolerance of the mechanism is f = )n-1( / 3 , where n is the number of
representatives)bookkeepers(. That means that if an attacker wants to be successful then he
must get ownership of over 33%.
24
For better understanding of the architecture we show the structure of messages that
the nodes must have:
Slashing conditions:
[i] commit(H, v) REQUIRES 2/3 prepare(H, v, vs) for some consistent vs
[ii] prepare(H, v, vs) REQUIRES 2/3 prepare(H_anc, vs, vs') for some consistent vs',
where H_anc is a (v-vs)-degree ancestor of H, UNLESS vs = -1
[iii] commit(X, v) + prepare(Y, w, u) ILLEGAL if u < v < w, EVEN IF X = Y
[iv] prepare(X1, v, vs1) + prepare(X2, v, vs2) ILLEGAL unless X1 = X2 and vs1 =
vs2
Another possible advantage for PoS systems is that it is considered eco-friendly
because it does not lead to power consumption. It is possible that some countries )India,China(
want to show a friendly ecological profile to other countries. So by legalizing Neo they have
the chance to show eco-friendly without a real cost for them.
-commit(HASH, view), 0 <= view
- prepare(HASH, view, view_source), -1 <= view_source < view
25
8.1. FINALITY
It must be noted that Neo has finality. Finality means that it can not be forked. The
inability to get forked is a big plus )we already witnessed many forks on bitcoin and one fork
on Ethereum( and helps to be adopted by companies and consumers because it avoids
uncertainty.
8.2. PUBLIC KEY INFRASTRUCTURE
Neo uses PKI )Public Key Infrastructure( to identify real entities. PKI create, manage,
distribute, use, store or revoke digital certificates. Simply put, people and legal entities
)companies, organizations( can be identified as they will be associated with a digital
certificate.
NEO uses the long standing X.509 standard )it is also used from TLS/SSL protocol(. In
the X.509 system, the entity that wants a signed certificate requests one via a certificate
signing request )CSR(.
It generates a key pair, keeping the private key secret and using it to sign the
certificate signing request )CSR(. This contains information identifying the entity and its
public key that will be used to verify the signature of the CSR and the Distinguished Name
)DN( that the certificate is for. The CSR may be accompanied by other credentials or proofs of
identity required by the certificate authority.
The certification authority issues a certificate binding a public key to a particular
distinguished name.
26
Figure 1 Cross-certification between two PKIs
PKI is very useful in practice. Business and governments want to know who is the real
owner of the assets so legal action can be taken if needed. For example, a seller wishes to
know who the buyer is. Also, lately we have seen that governments of the East and West
demand from financial organizations to physically identify the person who wants to hold
digital assets. In West )USA, UK and many other countries( the KYC scheme )Know Your
Customer( and in the East )South Korea, China( they try to regulate forcing even with
removing the license from financial institutions. So PKI option is a must today.
8.3. SMART CONTRACTS AND TRANSACTIONS
Smart contracts can be seen as legal documents executed as code. Legal documents
can be formulated as a sum of conditions, that is, if/else which return boolean values. Smart
contracts can be about anything: buying a product, paying a rent, signing a legal document,
documents issuing by state authorities etc. They can be written in the blockchain )on-chain( or
just be saved as data to a separate network )like "unofficial records"( through a channel. When
27
many transaction take place the owners can decide to finally "write" the final results on the
blockchain and close the channel. This is done basically because many cryptocoins like
bitcoin have high transaction fees. Another reason is to avoid the bottlenecking of the network
)increase the possible transactions per second(. As a drawback, not every transaction is on
blockchain, just the final balances are recorded.
Ethereum, for the time being, uses on-chain transactions. This leads to a low
transaction capability )about 15 transactions per second(. Neo uses a hybrid method of the
above, let's say a "joint accounting" model. The users can do on-chain transactions or can
choose off-chain transactions )private channeling( using their own methods and then push the
data to the blockchain. This is very flexible and desirable by the business but also from end
users. Whenever they want to choose privacy or avoid repetitive transaction costs they can
choose the off-chain approach.
8.4. HUMAN RESOURCE AVAILABILITY
Businesses can find more easily programmers for smart contract development because
neo has bindings for mainstream languages )for example Java,C#,go,pythom,.NET(. Ethereum
so far has not. It uses only their own language)Solidity(, which cause a serious problem for
human resource department.
28
8.5. QUANTUM RESISTANCE
Neo is quantum resistant. Bitcoin and other cryptocurrencies have included in their
scheme the Elliptic Curve Digital Signature Algorithm )ECDSA(. Ethereus is also non
quantum resistant. Some believe that in the future )but not soon( the quantum computers may
use algorithms to crack the ECDSA. So quantum resistance is a plus.
9. WHY NEO
The reasons that we choose NEO are the following:
- Neo has PKI policy that can solve the KYC (know your customer) problem that
most of our future customers face from regulators. The binding of public keys to physical or
legal entities is crucial for us. Governments and businesses will be pleased. Also PKI can
manage certificates for any real world asset. This, combined with smart contracts adds great
value to the users of the blockchain.
- Another feature is the high transaction speed that NEO platform can achieve.
Transaction volume per second will be very important in the future. We plan longterm and
we don't want to redesign our architecture. Transaction speed is also an attractive property for
the users of the blockchain.
- Neo also can not be forked (finality). Hard forking is not desirable by companies or
investors as it brings uncertainty and “doubling money”.
29
- Finally, NEO algorithms are Quantum Safe(QS). Quantum computers do not have
the ability to quickly solve the shortest vector problem (SVP) and the recent vector problem
(CVP). Quantum computers are not a threat today and maybe they will never be, but
eliminating a potential threat adds trust to the platform.
9.1. HOW NEO ACHIEVES MANY TRANSACTIONS PER SECOND?
Neo can achieve many transaction per sec (optimal value is around 10,000 .)This is
affordable with off-chain transaction recording .The tool here is the Merkle trees, which is a
special type of a binary try .Binary trees has a O(logn )time search , which means that they are
really fast data structures for searching .Merkle trees are very efficient for data verification .
Git, bitcoin, Tor and many distributed system use merkle trees .Merkle trees are being used
long ago in compression data algorithms as well .More specifically, Merkle trees are binary
trees, where each leaf is a hash value .
9.2. MERKELIZED ABSTRACT SYNTAX TREE (MAST)
MAST is a combination of Merkle Trees and Abstract Syntax Trees MASTs .)The
whole idea is to use a Merkle tree to encode branches in a script .When using, users may
provide only the branches they are executing, not the whole tree .They hash the leafs that
connect the branches to the fixed size Merkel root .This reduces the size of redemption stack
from O(nlogn)to O(logn)
(mplementation example( : btc
30
//New rules apply if version byte is 1 and witness program size is 32 bytes
if )witversion ==1 && program.size == ()32 && )flags &
SCRIPT_VERIFY_MAST (({
CHashWriter sRoot)SER_GETHASH, 0(;
CHashWriter sScriptHash)SER_GETHASH, 0(;
uint32_t nMASTVersion =0;
size_t stacksize =witness.stack.size();
if )stacksize < 4(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
std::vector<unsigned char> metadata =witness.stack.back(); //The last witness
stack item is metadata
31
if )metadata.size ()< 1 || metadata.size ()> 5(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
// The first byte of metadata is the number of subscripts )1 to 255(
uint32_t nSubscript =static_cast<uint32_t>)metadata[0(];
if )nSubscript ==0 || stacksize < nSubscript +3(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
int nOpCount =nSubscript; //Each condition consumes a nOpCount
sScriptHash << metadata[0];
// The rest of metadata is MAST version in minimally-coded unsigned little endian
int
if )metadata.back == ()0(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
if )metadata.size ()> 1 ({
for )size_t i =1; i =!metadata.size(); ++i(
nMASTVersion | =static_cast<uint32_t>)metadata[i (]<< 8 ) *i - 1(;
32
}
// Unknown MAST version is non-standard
if )nMASTVersion > 0 && flags &
SCRIPT_VERIFY_DISCOURAGE_UPGRADABLE_WITNESS_PROGRAM(
return set_error)serror,
SCRIPT_ERR_DISCOURAGE_UPGRADABLE_WITNESS_PROGRAM(;
sRoot << nMASTVersion;
// The second last witness stack item is the pathdata
// Size of pathdata must be divisible by 32 )0 is allowed(
// Depth of the Merkle tree is implied by the size of pathdata, and must not be
greater than 32
std::vector<unsigned char> pathdata =witness.stack.at)stacksize - 2(;
if )pathdata.size ()& 0x1F(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
unsigned int depth =pathdata.size ()>> 5;
33
if )depth > 32(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
// Each level of Merkle tree consumes a nOpCount
// Evaluation of version 0 MAST terminates early if there are too many nOpCount
// Not enforced in unknown MAST version for upgrade flexibility
nOpCount =nOpCount +depth;
if )nMASTVersion ==0 && nOpCount > MAX_OPS_PER_SCRIPT(
return set_error)serror, SCRIPT_ERR_OP_COUNT(;
// path is a vector of 32-byte hashes
std::vector <uint256> path;
path.resize)depth(;
for )unsigned int j =0; j < depth; j(++
memcpy)path[j.]begin(), &pathdata[32 *j], 32(;
// The third last witness stack item is the positiondata
34
// Position is in minimally-coded unsigned little endian int
std::vector<unsigned char> positiondata =witness.stack.at)stacksize - 3(;
if )positiondata.size ()> 4(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
uint32_t position =0;
if )positiondata.size ()> 0 ({
if )positiondata.back == ()0(
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
for )size_t k =0; k =!positiondata.size(); ++k(
position | =static_cast<uint32_t>)positiondata[k (]<< 8 *k;
}
// Position value must not exceed the number of leaves at the depth
if )depth < 32 ({
if )position >) =1U << depth((
return set_error)serror, SCRIPT_ERR_INVALID_MAST_STACK(;
}
35
// Sub-scripts are located before positiondata
for )size_t i =stacksize - nSubscript - 3; i < =stacksize - 4; i (++{
CScript subscript)witness.stack.at)i.(begin(), witness.stack.at)i.(end(();
// Evaluation of version 0 MAST terminates early if script is oversize
// Not enforced in unknown MAST version for upgrade flexibility
if )nMASTVersion ==0 && )scriptPubKey.size + ()subscript.size (()>
MAX_SCRIPT_SIZE(
return set_error)serror, SCRIPT_ERR_SCRIPT_SIZE(;
uint256 hashSubScript;
CHash256.()Write)&subscript[0],
subscript.size.(()Finalize)hashSubScript.begin(();
sScriptHash << hashSubScript;
scriptPubKey =scriptPubKey +subscript; //Final scriptPubKey is a serialization
of subscripts
}
uint256 hashScript =sScriptHash.GetHash();
36
// Calculate MAST Root and compare against witness program
uint256 rootScript =ComputeMerkleRootFromBranch)hashScript, path, position(;
sRoot << rootScript;
uint256 rootMAST =sRoot.GetHash();
if )memcmp)rootMAST.begin(), &program[0], 32((
return set_error)serror, SCRIPT_ERR_WITNESS_PROGRAM_MISMATCH(;
if )nMASTVersion ==0 ({
stack =std::vector<std::vector<unsigned char> >)witness.stack.begin(),
witness.stack.end ()- 3 - nSubscript(;
for )unsigned int i =0; i < stack.size(); i (++{
if )stack.at)i.(size ()> MAX_SCRIPT_ELEMENT_SIZE(
return set_error)serror, SCRIPT_ERR_PUSH_SIZE(;
}
// Script evaluation must not fail, and return an empty stack
37
if !)EvalScript)stack, scriptPubKey, flags, checker,
SIGVERSION_WITNESS_V1, nOpCount, serror((
return false;
if )stack.size =! ()0(
return set_error)serror, SCRIPT_ERR_EVAL_FALSE(;
}
return set_success)serror(;
}
uint256 ComputeMerkleRootFromBranch)const uint256& leaf, const
std::vector<uint256>& vMerkleBranch, uint32_t nIndex ({
uint256 hash =leaf;
for )std::vector<uint256>::const_iterator it =vMerkleBranch.begin(); it =!
vMerkleBranch.end(); ++it ({
if )nIndex & 1 ({
hash =Hash)BEGIN*)it(, END*)it(, BEGIN)hash(, END)hash((;
} else {
hash =Hash)BEGIN)hash(, END)hash(, BEGIN*)it(, END*)it((;
}
38
nIndex >> =1;
}
return hash;
}
39
10. PROJECT DESCRIPTION
For this project, we formalize and implement a data structure called the Merkelized
Abstract Syntax Tree (MAST )to address both data integrity and compression .MASTs can be
used to compactly represent contractual pro - grams that will be executed remotely, and by
using some of the properties of Merkle trees, they can also be used to verify the integrity of
the code being executed .A concept by the same name has been discussed in the Blockchain
community for a while, the terminology originates from the work of Russel O’Connor and
Pieter Wuille, however this discussion was limited to private correspondences.
We present a formalization of it and provide an implementation .The project idea was
developed with Bitcoin applications in mind, and the experiment we set up uses MASTs in a
crypto currency network simulator .Using MASTs in the digital currency protocol would
increase the complexity (length )of contracts permitted on the network, while simultaneously
maintaining the security of broadcasted data .
Additionally, contracts may contain privileged, secret branches of execution.
10.1. MAST DATA STRUCTURE
MASTs combine the traits of Merkle Trees [1 ]and Abstract Syntax Trees )ASTs (to
compactly and securely represent programs .Merkle trees are data structures that can be used
to efficiently verify the integrity of the data they store .Data blocks are stored in the leaf
nodes, and every non-leaf node is the hash of the labels of its children nodes )see Figure 1 .(In
a Blockchain, Merkle trees are currently used to efficiently store transaction history .ASTs,
on the other hand, represent the syntactic structure of programs .Primitives are located at the
leaf nodes of ASTs, and non-leaf nodes represent programmatic operations and control flow
mechanisms.
40
In a MAST, the root of the tree represents the entirety of the program, while all other
nodes represent subprograms .Each path in the tree is a different execution branch that the
program can take .The structure is “Merkelized ”in that leaf nodes are hashes of the
subprogram code that they represent, and non-leaf nodes are hashes of the children labels .
MASTs can therefore compactly represent the execution flow of a program with just a
sequence of hashes that specify which child edge to follow at each node .Overall, this means
that for a program of length n, the algorithm speed compression is O(log n).
10.2. MAST NODES
A MAST node is constructed with string content and par - ent pointers .The string
content is code that can be executed . A MAST node can have any number of children, each
one representing a different branch of program execution, and new branches can be added via
the addBr method .Joining all the string content from each node along a path in a MAST
therefore yields the code for one possible path of execution for a program.
Since branches in a MAST don’t have to be added in any particular order, maintaining
consistency during tree construction would be cumbersome .Instead, the hash function of a
MAST node computes the correct Merkle hash using the current state of the tree .It does so
by first forming a binary tree of all direct children nodes .As this tree is constructed, hashes
are concatenated and hashed to compute a new Merkle hash at each level of the binary tree.
Then, the root hash of the children tree is summed with the hash of the node’s own
content, producing a Merkle hash representing the node’s code and children .By not including
the node’s content in the binary tree we establish a syntax-tree style construction where the
parent executes before the child.
Figure 2a shows the structure used to calculate the Merkle hash of a given MAST
node .The four children branches are placed in a binary tree whose root is the yellow “Branch
Merkle Root ”.This Branch Merkle Root hash is summed with the content hash on the left to
give the Merkle Root .
41
10.3. PROOF LISTS
In order to verify the integrity of code, the MAST function generate Full Proof Up-
ward generates a proof list to a given Merkle root hash from the current node .It does so by
traversing the tree upwards, generating a list of the Merkle hashes and code content it passes
along the way .The logic gets more complicated due to the fact that Merkle hashes are
calculated using a binary tree .As a result, the proof list generator crawls up this binary tree
until it hits the branch Merkle root )the parent MAST node(, and then repeats the process
until the destination node is reached. For the verification process, we assume that another
machine )without the entire program code (has the Merkle hash of the MAST root node .
42
With a proof list whose destination node is the MAST root hash, this other machine
could verify the code in the proof list by iterating over it, summing up the hash values to
make sure that they add up to the next hash value in the proof list .If the final summation
yields the root hash, then the sequence of hashes provided is correct .We check the integrity
of the code against hashes in the proof list as content hashes are represented .Additionally,
scripts can be compiled to a proof format that is compatible with opcodes used on the
Blockchain .This further augment the compatibility between the MAST implementation and
the Blockchain protocol and allows for potential future extensibility of this project to be
integrated within a Blockchain.
Figure : Structure of a simple MAST and accompanying proof .The recursive data
structure (left)
10.4. PUBLIC KEY AND PRIVATE KEY
The public and private keys are an encryption method used by BCS to provide a
security measure for merchant and scenario-based access to protect the security and
information security of users .He is an output block that converts an n-byte input block into
an encrypted byte by encryption .If you want to encrypt or decrypt byte sequences, you have
to do it on a block-by-block basis .Since n is small )n =8 bytes for RC2, DES and TripleDES;
n =16; n =24; n =32 for Rijndael(, one block must be encrypted at a time for data values
greater than n .
43
Given any positive integer N, how many positive integers less than or equal to N have
an interoperability relationship with N? )For example, between 1 and 8, how many of these
numbers is 8)? BCS uses Euler function algorithm and mode anti-element.
10.5. NODES
BCS Master nodes are nodes that run a BCS wallet and make decisions, such as
locking trans-actions, coordinate mixing of coins and verifying the public ledger to form a
consensus.
BCS Master nodes are required to have a dedicated IP address and be able to run 24
hours a day without a more than a 1 hr connection loss .BCS Master nodes will get paid a
share of the block reward on every block (PoS), which is distributed to BCS Master nodes
one at a time.saster nodes enable the following services:
HyperSend )almost instant transactions .(In contrast, Bitcoin takes about 10 minutes
to confirm a payment.
SecureSend )anonymous transactions .(In contrast, Bitcoin transactions are totally
public and traceable .Only the identity of the addresses is anonymous.
PeerBook )BCS Master nodes govern, while the Blockchain funds development.(
44
In contrast, Bitcoin is controlled by a few big miners and funded by 3rd party
centralized institutions with self interest .BCS Next Generation Evolution a decentralized
dedicated BCS payment processor )think a decentralized global Paypal.(
10.6. CODE EXECUTION
BCS technology will use Permissive license open source license. Blockchain
enthusiasts and developers can collaborate to build applications.
On the basis of open source, we can jointly build BCS scene application and improve
various BCS functional experience and application.
This is a python test script for the BlockChainStore Interface:
import sys
from bcs import *
class CApp():
def __init__(self):
self.serial = False
self.hashes = 0
self.txs = 0
def echo(self, message):
return message, 0
45
def info(self):
return ["hashes:%d, transactions:%d" % (self.hashes, self.txs)], 0
def set_option(self, key, value):
if key == "serial" and value == "on":
self.serial = True
return 0
def deliver_tx(self, txBytes):
if self.serial:
txByteArray = bytearray(txBytes)
if len(txBytes) >= 2 and txBytes[:2] == "0x":
txByteArray = hex2bytes(txBytes[2:])
txValue = decode_big_endian(
BytesBuffer(txByteArray), len(txBytes))
if txValue != self.txs:
return None, 6
self.txs += 1
return None, 0
def check_tx(self, txBytes):
if self.serial:
txByteArray = bytearray(txBytes)
if len(txBytes) >= 2 and txBytes[:2] == "0x":
txByteArray = hex2bytes(txBytes[2:])
46
txValue = decode_big_endian(
BytesBuffer(txByteArray), len(txBytes))
if txValue < self.txs:
return 6
return 0
def commit(self):
self.hashes +=1
if self.txs == 0:
return "", 0
h = encode_big_endian(self.txs, 8)
h.reverse()
return h.decode(), 0
def add_listener(self):
return 0
def rm_listener(self):
return 0
def event(self):
return
if __name__ == '__main__':
l = len(sys.argv)
47
if l != 2:
print("provide the port number")
quit()
elif l == 2:
port = int(sys.argv[1])
print(‘testing app')
app = CApp()
server = BCServer(app, port)
11. DEVELOPMENT PLAN
11.1. REAL WORLD APPLICATIONS
Today the companies provide their blockchains just to create cryptocurrencies. They
do not provide real world applications beside currency functionality (which is questionable
for most of them). The goal of BCS blockchain is to create a real value product for the
customer and mankind. Already above smart contracts point was stressed. Smart contracts
have numerous applications in real life.
The company also has in mind to use the blockchain for virtual reality projects,
Gaming, 3D educational projects, VR advertising network and so on.
48
11.2. EXAMPLE: PANORAMA VIEW
Panorama display is a major breakthrough BCS, and strives to the virtual world and
the real world combination. We have a vision of block chain stores and satellite 3D map
combination to form a glance of the shock effect, of selected goods, connecting the seller
with the buyer using advertising networks.
49
11.3. 3D PANORAMA
12. VIRTUAL REALITY
50
12.1. EXAMPLE: 3D MODELING WORLD
51
Today what we want to show you is not only an encryption shopping website, it will
be a virtual Kingdom of you soon.
52
13. COMPETITIVE ENVIRONMENT
Tomorrow's industry leaders might not be known today .Industry competition is often
thought of as a continuous battle between the same set of key players .But as history shows,
things are far more dynamic .According to R «Ray» Wang, founder of Silicon Valley-based
«Constellation Research», 52 %of the Fortune 500 companies have been merged, acquired,
gone bankrupt, or fallen off the list since 2000 .The impact of digital disruption is real .
However, it's not the technologies that drive this change .It's a shift in how new business
models are created .Global e-commerce is such a growth industry, which poses huge
challenges to the world of traditional retail channels .For many consumers, especially in the
developed world, e-commerce has become the top choice when it comes to shopping,
threatening the existence of old brick-and - mortar retail shops .It is also creating huge ripples
in emerging markets, especially since e - commerce shops can enter the market quite easily.
The barriers of entry are relatively low and the initial capital requirements are small.
Using the technology available today, e-commerce shops can get a reach far beyond any
initial expectations .Many platforms operate in the market, offering similar products from a
variety of suppliers that have little bargaining power and are looking for the widest exposure
possible to maximize their sales potential.
A number of darknet markets exist that provide unfiltered listings – typically for drugs
and other illegal items –, and accept bitcoin due to the irreversible and relatively private
nature of blockchain payments .However, these are simply ordinary, centrally-administrated
collections of merchants who cater to a particular segment of the market.
53
A number of mainstream peer-to-peer markets exist, which are built on the
Blockchain and are more directly comparable to BCS .There are critical differences that set
BCS apart from its immediate competition .From a consumer point of view, brand loyalty is
limited while access to global vendors is virtually unlimited.
Price is often the key factor when making a purchase, but other innovations such as
payment methods and distribution channels are equally important.
Today, the e-commerce industry is dominated by a handful of well-established
enterprises .Their dominance varies from region to region and their business models are
54
similar .Auction-price and fixed-price sales are generally handled through an escrow account
system, which is usually managed by a third-party payment service provider .In summary, the
exhibit below analyzes the level of competition in the e-commerce industry today, according
to Michael E .Porter's <<Five Forces Analysis.>>
13.1. PROVIDERS OF DECENTRALIZED MARKETPLACES
There are a number of existing decentralized markets that have integrated
cryptocurrencies as a payment system on the market .The following table attempts to compare
them.
14. TOKEN GENERATION EVENT
In order to further develop and promote the BCS platform, BCS will conduct a token
generation event that will offer for sale 25,000,000 BCS tokens out of a 100 million total
supply. The proceeds of the Token Sale will be used for marketing, solution development
(both iOS and Android), integration of BCS with major enterprise clients and the operation of
55
crypto to local currency exchange. The remaining will be reserved for the liquidity pool,
bounty programs and referrals. Any unsold tokens will be burned.
15. FUTURE DEVELOPMENT
We are not necessarily the best idea and implementation, but we will strive to be
better and serve humanity is our value.
56
16. BCS ROADMAP
57
17. TEAM INTRODUCTION
Cheng
Blockchain Technical Director
SPET Membership
Master in Computer & Finance
Akis
Technical Director / Mathematics Expert
Distributed Computing Engineer / Cryptography Engineer
15 years of software development experience
58
Kei
Front-end Engineer
Sakai
Japan Operating Officer
59
Jay
Server-end Engineer
18. PROJECT GITHUB LINK ADDRESS:
https://github.com/BlockChainStore/token
19. GLOBAL RECRUITMENT:
In order to accomplish our mission, we specialize in recruiting talents worldwide.
19.1. CRYPTOGRAPHIC EXPERTS
Knowledge on symmetric/asymmetric key schemes, zero-knowledge schemes
etc.
Nice to have：
Background in mathematics（linear algebra， calculus, Set theory, number theory）
19.2. DISTRIBUTED COMPUTING EXPERTS
Strong ability to database scheme designing
60
19.3. BACK-END PROGRAMMERS
Proffered skills:
Python, Go, C++ or Java
Previous experience on open source projects (a github account is desirable)
19.4. GRAPHIC DESIGNER UI/UX DESIGNER
Skill in Photoshop, Illustrator, Understand the Visual Identity design, and rich in
commercial art experience
61
20. CONTACT
Address:
152 Chartered Square Building, 28th
Floor, Unit 28/03
North Sathorn Road, Silom, Bangrak
Bangkok 10500
Thailand
Email: [email protected]
Web: http://www.bcschain.io
Phone: (+66)-02-236-3966, (+66)-02-236-6426
Telegram：https://telegram.me/blockchainstore
Open source：https://github.com/BlockChainStore/token
Facebook：https://www.facebook.com/bcschain.io
62
21. REFERENCES
BIP141 (Segregated Witness ) Consensus layer example code
Public key infrastructure: https://en.wikipedia.org/wiki/Public_key_infrastructure
X.509 protocol: https://en.wikipedia.org/wiki/X.509
Merkle trees: https://en.wikipedia.org/wiki/Merkle_tree
Two Generals' Problem: https://en.wikipedia.org/wiki/Two_Generals%27_Problem
Byzantine fault tolerance: https://en.wikipedia.org/wiki/Byzantine_fault_tolerance
Lighting Network whitepaper:
https://lightning.network/lightning-network-paper.pdf
QRL POS algorithm:
https://github.com/theQRL/PoS/blob/master/pos-qrl.pdf
