WHITEPAPER - ICO Platform white... · 2018-08-14 · objective information, MCC provides information about one’s social connections. MyCreditChain has a gift-giving daily airdrop(DAD)

BlockChain Based Credit Ecosystem

MCC Foundation

Bring Credit information back to People!

ENG l Version 2.2

May 29, 2018

WHITE PAPER

CopyrightⒸ Mycreditchain Inc. All rights reserved.

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Abstract

1. Personal information Management

1. Credit information management system and its limitations

2. The Goal of MyCreditChain(MCC)

2. MCC information management

1. Personal information ownership to the individuals

2. Personal information as an Asset

3. MCC network that creates and builds credit

4. Self-evolving and self-expanding blockchain

5. Collection of personal information and supply of credit rating model

1. Collection of various personal information

2. Supply of credit rating model

6. Competitive Environmental Analysis

7. Scalability of MyCreditChain

1. Range of Information

2. User Consent Channel

3. How MCC works?

1. Platform configuration Platform configuration

2. Platform components

3. Convenient data collection and supply

4. Security and platform expandability

5. Types of Participants and their roles in MCC network

1. Authentication by participants

Table of Contents


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4. Token Fiscal Policy

1. P2P Daily Airdrop, a step toward Future Economy

2. Token retrievals to induce active use of tokens

3. Stable MCC token circulation and its value potential

4. Issuance and operation of MCC token

a. MCC Token issuance plan

5. Plan of MCC use through actual cases

1. B2P credit information transaction

2. P2P finance in MCC network

3. Simplification of document and document submission

4. Credit evaluation using non-financial data

6. Plan

1. Overall roadmap

2. Platform and application program development

7. Terms

1. Legal liability


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[ Introduction ]

Personal Information is the most valuable asset in the economy. Based on personal

information of customers, companies design their products, implement their

marketing strategy, and target their customers. Financial institutions manage the risk

of their loan products, price the risk premium for insurances. Personal Information is

the driving engine of an economy. However, it is owned and used by major

corporations like Amazon, Google, Facebook and others. Every one of us, the actual

owners of personal information, does not receive direct compensation.

We are living in an era where data is the source of power and wealth.

MyCreditChain(MCC) aims to solve the issues surrounding uses and ownership of

personal information and establish a fair ground for personal information market,

Although personal information is all about 'individuals', most individuals do

not own the data. The data is stored in the servers of hundreds of companies

and financial institutions, and each rating agency evaluates individuals

through its own evaluation criteria.

Another major issue is lack of proper credit information for a great number of people

in the world. People who don’t have the traditional credit data are deprived of credit

services and end up living in a circle of poverty.

MyCreditChain aims the ownership of personal information back to the

owner. With the user’s approval and authentication, MyCreditChain’s state of art

scraping engine gathers personal data from official and commercial websites for

each user. Personal information managed by MCC is accurate and diverse because

it is gathered from original and diverse sources on the web. Most up-to-date and

accurate Data from diverse sources unlocks the limitations of traditional credit rating

models. Furthermore, with blockchain technology, incentive mechanism and

scabability by design, MyCreditChain network can establish credit information

network instantly, which has taken years to establish in a traditional environment.

Every one of us, the actual owners of personal

information, does not receive direct compensation.


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MyCreditChain is a two-way market network that contains both data owners and

data users of personal information as well as product consumers and producers of

financial and other products. Consumers and producers can meet each other with

high accuracy and a minimal cost in MCC network. MCC is a market creating

innovation for financial services and others, in which consumers volunteer to reveal

themselves to the producers of goods and services.

MyCreditChain democratizes the accessibility to personal credit information

big data. MyCreditChain is personal credit information big database of all

participants. This open platform of big data can create a level-ground for various

companies in financial services and other retail sectors. Anyone or any company

can come into MCC network and use the data with MCC tokens and sell their value-

add information on MCC platform. With various APIs and SDKs to be provided by

MCC, the information processed can be applicable to areas such as credit

evaluation, online document submission, asset status analysis, smart contract,

survey and electronic voting.

MyCreditChain provides a multi-layered depiction of a person. On top of

objective information, MCC provides information about one’s social connections.

MyCreditChain has a gift-giving daily airdrop(DAD) that allows users to give gifts to

one another in and out of the network. DAD is done through “seeds” which have no

value unless they are given to someone else. Seeds turn into token values in the

receiver’s wallet. DAD expands user base and fosters relationship building for every

user. The more seeds you receive, higher the social trustworthiness with good

reputation. With the objective information on a person and the reputation measure

from DAD, MCC generates multi-dimensional measure of trustworthiness.

MyCreditChain is inline with the current trend toward legal protection on

privacy. In MCC network, every transaction of personal information is based on the

owner’s consent. EU’s GDPR(General Data Protection Regulation) requires

consent mandate for entire life cycle of all personal information including the

collection, retention, deletion, breaches, and disclosures of personal data.

MCC Daily Airdrop(DAD) is a social credibility measure

reflecting personal “relationship.”


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MyCreditChain tokens mediate all transaction in MyCreditChain network. The

value of MCC Tokens is based first on the total value of all personal information

provided by all users and secondly on the frequency of transactions of the

information in the network and thirdly by the value-added information products

generated from the big data. Personal information is the most value information that

runs today’s economy.

All companies need to market their products, and MCC provides effective 2 way

market where product consumers are willing to reveal themselves by selling their

own personal information. Personal information big data is in great need from health

care, financial risk management, macroeconomic prediction and more where

greatest financial gain is achieved. MCC tokens value will simply reflect what MCC

platform will do for the world economy.

MCC tokens value will simply reflect what MCC platform will

do for the world economy.


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The credit is "the level of faith among people" which is traditionally interpreted as

reliability. This credit is the basis for economic interaction among people in a

community, and it has been essential in exchange from the time when bartering

began. Credit in the modern society is used to quantify the ability to obtain goods

before the full payment, and in financial term, it is an expected reliability of a person

to pay back what he/she owes.

The need for more quantifiable credit worthiness brought forth credit rating agencies

that measured credit, which required handling of centralized information for credit

evaluation and monopolization of such information by credit rating companies. Along

with the centralization and monopolization of information, various problems began to

occur related to credit information such as information leakage and data

management cost, and there is a need for improvement in those issues.

Economists have also pointed out the following problems with the use of personal

information by companies. Consumers have little knowledge or control over how the

company will use personal information and are not able to prevent the secondary

use of personal information [1]. In addition, consumers are unlikely to get protection

on their personal information due to their inability such as transaction costs under

general market conditions [2]. It is difficult for individuals to take reasonable actions

to protect their own information due to the lack of information, limitations of

information literacy and various cognitive and behavioral biases found in behavioral

economics and decision-making research [3]. To reduce or eliminate such damage

caused by the abuse of personal information by companies, there was an emphasis

on the need of technology to anonymize personal information using IT technology

[4]. However, we don’t see much incentives for companies to do so. The value of

personal information has been unfaired measured. Economists find that “those who

feel they have less privacy tend to value privacy less and become more likely to

accept monetary offers for their data; giving away their data, in turn, may make

individuals feel they have less privacy”[5]

Thus, MyCreditChain wants to return the ownership of the personal information back

to the individual to fundamentally solve the problem of personal information

management. With blockchain technology and IPFS file system, we can build a

decentralized application that expand into the globe in which the individuals can

manage and control their own personal information and get their fair share of its

economic value.

This new personal information management solution is MyCreditChain.

MyCreditChain is constructed based on blockchain technology and automated data

collection technology. It can easily and quickly collect personal information scattered

in financial institutions and public institutions onto the owner’s personal devices

(mobile phones, PCs). In MCC, vast array of personal information is encrypted and

stored in distributed database. With no central point of attack, the information will be

stored and managed safely

1 Personal Information Management


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The information collected in MCC network will be stored in the owner’s device and

be sold to the desired information consumers under the full of control of the

information owner. This will be an innovative and revolutionary way to the credit

related personal information and the customer information management methods.

MCC is a P2P personal information trading platform that expands and evolves by

itself and will create tremendous amount of new value via transactions among

network participants

1.1 Current credit information management and its limitations

(source: LTP – Let’s Talk Payments, March 16, 2017)

59% of the world's population (about 4.5 billion people) do not have enough data to

evaluate their credit scores. Even in the United States, the world's biggest and most

advanced economy, there are about 26 million people without credit information.

About 10% of the population in Korea are credit impaired such that they either do

not have credit information or are not properly evaluated. When we look into

developing countries in Southeast Asia, the financial alienated population is about

640 million [6].

Current credit rating relies on a narrow set of data, and credit evaluation is entirely

based on the rating agency's criteria. There are problems: 'what evaluates credit

score?’, ‘Can credit rating agencies’ criteria evaluate us properly?’ There is more

information available that people have and that are not accounted for. The utilization

of those information will evaluate people better. In addition, the current credit

system uses past data, such that they do not reflect the current status of the

individual. Evaluating the current individual based on past data, the credit rating has

a limited reliability to evaluate the current situation of the person.


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Another issue is the ownership and control of information. The source of credit

information is the person. The information is provided by an individual at the request

of the rating agencies. However, it is recognized as the transfer of ownership from

the moment it is provided to them, and the information is, then, utilized as a

marketing tool. It is an irony that an individual must pay to get the information

processed by the rating agency.

Finally, there is a social cost due to information concentration. As credit information

becomes centralized, information leakage is occurring every year. In Korea, the

information leakage accidents occurred in 2014 caused more than 15 trillion won

(15 billion USD) of damages. Direct and indirect costs incur in establishing various

policies for information management, improving the system and establishing the

system. The cost of individuals and businesses to use the credit information is

estimated to be around 550 million USD annually in South Korea alone [7].

(Source: http://ceoscoredaily. com/news/article. html? no=4881)

Another issue is the ownership and control of information. The source of credit

information is the person. The information is provided by an individual at the request

of the rating agencies. However, it is recognized as the transfer of ownership from

the moment it is provided to them, and the information is, then, utilized as a

marketing tool. It is an irony that an individual must pay to get the information

processed by the rating agency.

MCC is going to change this moral and economic inefficiency. We will return the

ownership of the information to the true owners. In doing so, the individuals who

own the information will get direct benefits, and the consumers of that information

can use most up-do-date information without the need securely to store and

manage the information.


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1.2 The Goal of MyCreditChain(MCC)

The goal of MCC is to build a [P2P personal information ecosystem] centered on

individuals.

MyCreditChain provides various functions for the individuals by enabling their

ownership of personal information. First, an individual can easily collect his/her own

personal information on various official websites, and it provides a system

environment that allows his/her information to be under his/her control. MCC Token

is issued as a medium of exchange in MyCreditChain ecosystem. An individual, the

information provider, acquires tokens as a payment for his/her information from the

information consumers. Another way to get tokens is by participating MCC network

airdrop (daily 10,000 tokens). All participants in MCC network get three seeds every

day. The seeds have no value unless they are given to some else. The 10,000

tokens are shared among the receivers in proportion to all seeds received in the

network. The seed giving in MCC network creates the picture of human network

surrounding a person. This picture can signify a person’s interaction and

participation in his/her social network; another valuable information about a person.

Participants in the MCC network can be classified into the information providers,

namely every individual in the network, and the information consumers, that is,

financial institutions and companies that use the information. It is possible for the

3rd parties to participate in the MCC network for data processing and resales and

other add-value functions.

MCC(MyCreditChain) Ecosystem


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Another feature of the MCC network lies in the fact that individuals without credit

information can create credit by participating in the MCC network. There are still a

lot of people in the world who do not get the benefits of finance due to lack of credit

information. The activities in MCC network creates a person’s personal information

that can be used to measure credit. MCC can provide benefits for many people

without proper accesses to finance.

MyCreditChain can provide P2P activities within the network. We think Credit

information exchange, reliability enhancement activities and P2P financial

transactions can be performed within MCC network. With objective information and

reputation measure from DAD, users can reveal each other and interact with one

another on a considerable level of confidence. MCC network will provide a concrete

ground for P2P transaction in the global economy.

Another important contribution of MCC network is 2-way marketplace, P2B platform.

Companies with customer profiles can send queries over MCC network to the target

customers with MCC token compensation. Upon receiving queries, customers will

decide to reveal their contact information for suggested compensation. Companies

can meet their customers by purchasing their information and, in turn, market their

products directly to the customers in MCC network.

With these activities, a person’s personal information will become an important

asset for the owner. In a new era of blockchain, MCC platform will enable a new

relationship among people, which will further develop new form of financial activities


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2.1 Personal information ownership to the individuals

The most important feature of MyCreditChain is that it enables individuals to own

his/her personal information. In MCC network, one can create, manage and build

one’s own credit. MyCreditChain not only provides automatic collection of data in

real time, but also encrypts the collected data and stores it securely in a distributed

storage. Information on the distributed IPFS storage can only be accessed by the

owner with the PKI and will be provided to others only with the owner's approval.

That is, an individual has the full ownership and control over his/her own information

in MCC network.

2 MyCreditChain information management

2.2 Personal Information is an Asset

Throughout the economic history, the concept of assets has been broadened from

foods, land to intangible assets such as patents, trademarks and stocks.

MyCreditChain will add personal information to the asset list. Besides revenues

generated by trading the information, the rational trust based on MCC KYC in a

global level will create benefit to all of us. MyCreditChain enables us to know about

each other with mutual approval. Economy runs on trust. MyCreditChain can enable

trust and cooperation among people across borders.

2.3 MyCreditChain network that creates and builds credit

MyCreditChain can create credit in a way that is different from the existing credit

rating methods. MCC network provides daily airdrop of 10,000 tokens. The airdrop

works in the following way.

All participants in MCC network get three seeds every day. The seeds have no

value unless they are given to some else. We build good relationship with each

other by giving gifts. The seeds are to give and build relationship. The 10,000

tokens are, then, shared among the seed receivers in proportion to all seeds

received in the network. Information gathered from airdrop can be used to analyze

social connections and dependability between individuals and reputation level in a

his/her group. Trust couples and trust unions that share credit among group

participants can be formed as well, and even more information can be provided for

analysis on behavior patterns with conjunction with offline based data (address

book, IoT, location information, etc.).


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Airdrop case analysis among Finger's employees (for the last 5 years, 150 persons)

2.4 Self-evolving and self-expanding blockchain

MyCreditChain is a blockchain platform that can be flexibly linked with 3rd parties

and can be easily ported to other blockchain networks. Participants in the network

are not only individuals who provide raw information but also those who can value-

add to the MCC personal information network like big data analysts, credit rating

modelers and marketing experts.

Gifts giving in P2P Airdrop is a great expansion mechanism; it will help add friends

and acquaintance from an address book and social network to the network. The

credit rating score provided by MyCreditChain combines traditional data with

relationship data created by users’ activities in MCC network.

Personal information data structure in MCC network allows traceability of data over

time. Users can choose to offer credit history data at premium price. Moreover, the

big data of credit history over period of time can provide valuable insight into the

macroeconomic trend of an economy. It can offer crucial knowledge in managing

economy in national level.


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In other words, MyCreditChain is an ecosystem that has a self-expanding and self-

evolving structure in which the number of participants increases and activities in the

network become more active and complex in creating value-add information

products from the vast set of personal data available in MCC network. More and

more information is stored in the web, and the current legal trend on privacy heads

toward limiting the access of information to the information owner. Big data

accessible in MyCreditChain will provide benefit to individuals and institutions.

2.5 Collection of personal information and supply of credit rating model

In traditional credit ratings, annual income, years of working, position, and level of

wealth have been major factors, and they are not sufficient to evaluate individual’s

credit worthiness. However, MCC contains much more information such as

information stored in public institutions, financial transaction history, consumption

behavior, personal big data from analysis of SNS activities and communication data

and interpersonal confidence index generated in the MCC airdrop.

In addition, MCC can collect information in real time. Information is gathered using

Scraping and DRM Parsing solution, which is one of the most advanced information

gathering technologies available today. Individuals can collect, analyze and store

data automatically in minutes with authentication method (public authentication and

ID-PW).

2.5.1 Collection of various personal information

MCC provides differentiated credit ratings (scores) from those offered by traditional

credit rating agencies. MCC provides credit scores based on a variety of big data

variables that are not utilized by the existing CB. The credit score is calculated in

real time by analyzing the data. This model is particularly effective to assess thin-

filers that have insufficient credit information, and the credit score that MCC

provides will be helpful for P2P transactions within MCC network as well as 3rd party

P2P lenders. Small-scale financial institutions without their own credit rating models

can utilize MCC scores.

2.5.2 Supply of credit rating model


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2.6 Competitive Environmental Analysis

The competitive factors of MyCreditChain can be classified into two: a data broker

that trades personal information and a credit rating agency that evaluates one’s

credit score.

A data broker is a person or a company that collects and analyzes individuals’

personal information scattered in various platforms, such as financial institutions,

public agencies and private sources. A data broker sells the processed information

about individuals for marketing and other purposes. With the utilization of Big Data,

personal information can be collected and distributed in multiple ways. For instance,

Acxiom Corporation, a prominent marketing technology and services company,

contains insights into 700 million consumers worldwide. The company’s revenue

amounted to one billion US dollars in 2015. The other data broker companies,

including CoreLogic and Datalogics, dynamically gather data about individuals from

numerous sources. These companies, then, sell the collected profiles to other

organizations.

A credit rating agency is a licensed institution that evaluates and manages one’s

creditworthiness in accordance with traditional models. The bank determines an

applicant’s loan eligibility and interest rate based on the credit score calculated by a

credit rating agency. Some companies have been using alternative data to assess a

person’s creditworthiness in recent years.

In MCC network, data is provided on demand, in real-time base, item by item on the

information owner’s consent. Information is most up-to-dated and comprehensive

without any legal liabilities. MCC network provides credit rating based on much

more comprehensive and up-to-date data as well as the social reputation factor

from DAD data.

Competitors in blockchain world are Bloom and Valid. Bloom uses BloomID, which

is global KYC, BloomIQ, a credit data gathering strategy with users approval, and

scoring mechanism BloomScore. Bloom’s business focus is on credit rating without

personal information database. At the core of its service, Bloom uses “peer-to-peer

staking” for creditworthiness and identity authentication, and calls for peer judgment

on the person’s creditworthiness. These grouping is formed with intention to create

creditworthiness as a group. MyCreditChain has Daily AirDrop mechanism in which

users voluntarily reveal their personal via gift giving. There is little incentive to form

a group just to create creditworthiness. Valid claims to achieve a similar goal of

helping people to own their data and get compensation for it. However, Valid does

not provide proven means to gather personal data.

2.6.1 The business environment of personal and credit information


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2.6.2 Alliance and partnerships

The market environment for credit and personal information mentioned above does

not necessarily go against what MyCreditChain plans to achieve. MyCreditChain

plans to return the ownership of personal information back to the owner by

democratizing the accessibility. The two do not have to compete each other. Rather,

MyCreditChain can play a significant role as the world is moving toward the next

frontier, decentralized platforms. The alliance between the existing companies and

MyCreditChain will generate a significant synergy effect.

MyCreditChain’s strategies can be differentiated into two categories: its capacity to

collect data in real time and its confidence index generated by the self-evolving

ecosystem. If data brokers and credit agencies were to participate in the ecosystem

built by MyCreditChain as 3rd parties, thus supplementing and sharing more

information within the network, it will be beneficial for all sides

2.7.1. Range of Information

Personal information is not limited to credit information. There is a variety of

personal information that have economic value. MyCreditChain will expand the

range of personal information provided available. There is a variety of information

that are too sensitive for individuals to expose, such as personal profession, career,

political orientation, religious philosophical beliefs, genetic information, medical and

health records, but they have the social benefits when utilized properly. Strictly

following the under-lining philosophy of capitalizing their own information under the

full control of an individual, MyCreditChain aims to contribute to the rational use of

personal information while protecting the rights and interests of individuals.

2.7 Scalability of MyCreditChain

2.7.2. User Consent Channel

The basic philosophy of MCC is that personal information is an asset of the

individual and therefore individuals must exercise full control over their information.

Meanwhile, the use of personal information is essential to operate the

socioeconomic system reasonably and efficiently. In response to such demand for

personal information, the MCC can provide a user consent/veto platform where

individuals to exercise the right on the use of their information to the companies

which want to monetize their own customer information.


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Many companies and organizations have their customers’ personal information. Some of

which are sold through information brokers on the owners’ ignorance, or some have not

been utilized because of the inability to obtain consent from individuals. The MCC can

provide a mechanism of personal consent essential for the utilization of personal

information stored in the data systems of these companies and organizations. For example,

a general hospital that has a variety of medical records can use the MCC platform to sell its

own medical records to pharmaceutical companies or insurance companies with the

patient's consent. Travel agencies have their customers’ travel history, and it can be sold to

airlines, hotels through MCC's personal consent mechanism. The information held by

various corporations and organizations not only finds the way to be monetized through the

MCC channel, but MCC channel enables individuals to identify and control various

information about themselves and get reward for the information if they wish.

MyCreditChain, as a channel for obtaining the user's consent, will be linked to

various industries that have a variety of information about individuals, and will open

up a new market where useful information can be reasonably used under the strict

control of the information owners.


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3.1 Platform configuration

The MCC platform consists of block chains consisting of Ethereum-based Smart

Contracts. Data is encrypted and stored in IPFS, which is a distributed storage

method and controlled by DAC (Data Access Control). The 3rd party participants

can receive services through various APIs provided by MCC and consumers who

have personal and credit information can receive services through MCC App to be

provided at Application Layer.

3 How MCC works?

3.2 Platform component

CoreLayer - Ethereum

Ethereum provides a decentralized application technique suitable for personal

information management. Ethereum is a blockchain with built-in Turing complete

language that allows interactions with small and less frequently used applications as

well as other applications outside the blockchain. Ethereum allows smart contracts

and distributed applications to create rules on information ownership, transaction

formats and state transition functions that will automatically activate on information

exchange event. MCC Token will be issued according to ERC20 standard.

However, there is a concern that Ethereum would not be able to handle the amount

of transactions required for MCC and that MCC needs to move to much faster

blockchain. MCC is designed to accommodate such changes. However, current

level of transaction speed is adequate for personal information transaction.


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CoreLayer - IPFS

The InterPlanetary File System (IPFS) is a distributed file structure that interconnects

all the storages in computing devices into a one file system. It provides a content

addressed block storage model and has a structure that can manage high bandwidth

for transaction speed and have traceability of versions. IPFS is MCC database

structure that enables safe storage of a large capacity of data that is difficult to be

stored in a personal device.

In MyCreditChain, IPFS system can be supported by a node operator. Node

operators must satisfy the basic rules and conditions for authentication and node

operation and will be given with adequate incentives for providing services. Anyone

can freely participate in the operation of the IPFS node through the node operator

authentication, and the node operator is compensated for the operation of the node

according to the rules set by MCC. The data collected in MCC are all encrypted and

stored in the IPFS and are provided only on the information owner’s approval.

Service Layer

MCC token will be issued on Ethereum ERC20 standard along with MCC Smart

Contract. Ethereum ERC20 standard provides compatibility with other Tokens.

That is, it has an extensible structure that enables token exchanges and other

services with other ERC20 standard tokens. Information collected on the MCC

platform is managed and controlled by Data Access Control for data security. Data is

kept encrypted so that only the data owner and the data consumer are authorized

have access, and the data consumers have preset period for the data access.

Scoring System

MyCreditChain provides credit rating (score) based on various data collected through

MyCreditChain. It provides extensive credit evaluation techniques based on various

data collected in the network. Scoring can be expressed both in rating scale and in

score.

API Layer and Application Layer

The API Layer standardizes access and authentication protocols to ensure

participation and activities of financial institutions and 3rd parties in MCC network.

It is designed with Open API structure to ensure network performance and

expandability. The application layer, which is the final service model of the MCC

platform, manages subscription to MCC services and handles information requests

and provides information. Information providers and information consumers can use

the MCC service through their own devices in a global UX environment


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3.3 Convenient data collection and supply

MCC has a powerful data collection technology. MCC collection technology has the

advantage of collecting data directly from various organizations’ websites and

it is performed at the point of data purchase in real time. With scraping, DRM

parsing and API, a MCC participant can collect personal information conveniently on

his/her device. Depending on which country a participant resides, the scope of data

acquisition may vary. Personal data can be collected from public institutions,

financial institutions, telecommunication companies and social networks

MCC provides a separate API for supplying data for data consumers. The API is

designed in such a way that with the consent of the information provider, the data

are provided to the specific information consumer. Information request, data

collection and provision are all performed on real time, and the simple procedure

provides a convenient environment for both information providers and consumers.

3.4 Security and platform expandability

All data in the MCC network is encrypted, and the scope of encryption includes the

transmission of data.

When data is collected, decryption is performed through the security module

provided by the organization that supplied the data. When the data is stored on a

personal device, encryption is performed with the encryption key in the personal

device. In addition, it registers and manages the device ID (PC-> mac address,

smart device-> device id) for the service subscriber in order to restrict the use of the

service on a registered device.


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For security, vaccine for virus detection and treatment is applied from the

information input stage, and a keyboard security module and obfuscation solution

will be applied to prevent hacking and exposure at the data source.

The type of data managed by the MCC platform is divided into the basic personal

information and the data collected in MCC platform. Identity part of each data will be

stored separately from main contents. The data collected by MCC platform will be

packaged in a standardized format, which will be accessed through a separate API

for 3rd party participations.

3.5 Types of Participants and their roles in MCC network

Participants in the MCC network can be classified into 'individuals' who provide

information, 'information consumers' (banks, credit rating agencies and companies)

and 3rd party participants who process information for resale in MCC network.

In MCC, Individuals take the ownership of their personal information and get

compensations by providing the information as well as the additional benefit from

the P2P Daily Airdrop. Activities in MCC network create new credit information for

them, and MCC is open for them to perform P2P transactions with one another to

advance their livelihood.

Information consumers can use accurate and diverse and most up-to-date data to

meet their needs on the approval from the rightful owners of the information. With

the vast resource of data available from MCC, it is possible for them to upgrade

their own credit rating models, develop new products and refine marketing

strategies. In particular, banks can effectively open online branches by participating

in the MCC network.


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Participants in the 3rd party can be either individuals or companies. They can

provide additional credit information to other participants in the MCC network,

process and re-sell processed information, or participate in node operations and

contribute to system performance improvements for compensations. 3rd party

participants can be a financial institutions providing p2p loan service with

cryptocurrency or with fiat currency.using MCC network as a marketing platform

Node authentication

To participate as an IPFS node in the MCC network, node registration and

authentication must be performed. The node participation is to induce the individual

system resources to participate in the MCC network, and MCC will post the

conditions and rules of node participation on the MCC website. To be a node

provider in MCC, module installation and ID registration and authentication and

subscription procedures must be performed. The node registration procedure may

vary depending on security and conditions of each system.

User Authentication and Verification

In the MCC network, all users are issued and managed with a unique account

through Identity verification procedure with government IDs in the local jurisdiction.

The individual user must identify himself/herself through the KYC procedure, and a

subsequent verification process is automatically carried out based on the collected

data. Verification process may vary from country to country and depends on the

given country's authentication policies and IT environment.

The 3rd party are the participants who provides additional analytical data or

additional collected data by utilizing the information in MCC platform. 3rd parties

must submit the detailed description on type of data usage and its purpose at the

time of subscription. MCC will conduct a rigorous participation certification process

for 3rd parties.

In addition, the 3rd party must ensure the integrity of the data, and the additional

information provided by the 3rd party must be designed such a way that its reliability

can be verified. If the individual provides additional information, he/she may register

the reasons for providing the information and must proceed with the additional

authentication process.

If an organization intends to provide financial services such as P2P loan service

participates as a 3rd party, it can connect directly with an individual participant after

a separate registration and authentication procedure.

3.5.1 Authentication by participants


<23>


What will happen if a lot of beads are put on the checkerboard and shake it? We

might expect that it would show a normal distribution. It is often called the 'Gaussian

Distribution' or 'Normal Distribution'. This is the probability of casting the dice, the

average score of the test or the distribution of people's height. However, the actual

computer simulation results are different from the normal distribution.[8]

4 Token Fiscal Policy

Normal distribution (Poisson distribution) U distribution

Data no miezaru te, 2014, Kazuo Yano, Soshisha Publishing Co. Ltd.[8]

This result is similar to the "Boltzmann distribution" [9] and it can be used to model

an individual's trust level in a group in which constant exchanges of information are

occurring.

As in the U Distribution, certain clustering occurs. There are members clustered and

members that are alienated from the clusters. Our assumption is that clustered

members are more reliable. This assumption is based on the experience of

Grameen Bank micro financing. We have come up with a few ideas to further

increase member grouping by gift mechanism. MCC’s original P2P airdrop uses gift

mechanism. Giving gifts to one another and forming relationship has been an

important activity for humanity, and Charles Eisenstein eloquently reminded us in

his Sacred Economy[10]. All participants in MCC network are given three seeds

every day. The seeds have no value unless they are given to some else. The seeds

are to give and build relationship. The 10,000 tokens are, then, shared among the

seed receivers in proportion to all seeds received in the network.


<24>


The information acquired from Airdrop Seed giving can be used to analyze the trust

level between individuals in a his/her group. It can generate a new confidence index

of a person from the analysis of gift giving and receiving.

MCC token has another unique policy, partial confiscation of tokens from inactive

users. 10% of the tokens will confiscated from participants inactive for a month. This

policy has its base on the Silvio Gesell's "Free Money" theory [10]. It promotes the

active use of tokens in the network, and limits the use of MCC token for preservation

of value and expands the reserve for P2P daily airdrop.

MCC network’s token mechanism is based on these economics ideas. It makes

MCC unique and differentiate MCC from other currencies fiat or crypto. MCC

ecosystem will be a fairground for all participants. MCC will bring prosperity to all

participants by establishing right ownership, providing a fair accessibility to data as

well as a new market place where all participants can trade based on measurable

trust.

4.1 P2P Daily Airdrop, a step toward Future Economy

MCC’s P2P Daily Airdrop is inspired by Charles Eisenstein's "Social Dividends," which

enhance the circulation of money and ensure the purchasing power in the economic

virtuous cycle. MCC implements a dividend system in the form of P2P Daily Airdrop.

As Seeds are converted into value only by giving, we can analyze the seeds giving

among people and can identify the group structure in the personal networks. The

group structure can be further analyzed to produce confidence index about a person.

The seeds of MCC are not just an Airdrops that other Cryptocurrencies use to attract

participants, but it has its purpose and structures that allow participants build

relationship with others. It is a form of 'Gift Economy'.[11]

GMT 00:00 Seeds Creation GMT 24:00 Token Distribution

Seed Gift Giving

F

T T

Daily 3 seeds created for every user.

Unused seeds evaporate.

Seeds turns to fruits at receiving.

Token distribution proportional to the number of fruits.


<25>


P2P Airdrop is very helpful to promote the circulation of tokens. As Seeds have no

value in themselves, the flow of seeds is created naturally. It creates a natural

exchange among people who feel favorable or trustworthy to one another. MCC will

reflect the relationships in the confidence index. A person with high credibility in the

offline social relationship will naturally acquire more tokens and gain a higher

confidence index. Trustworthiness is the mining power in MCC network.

However, there is a possibility that few members can collude to profit one another.

To mitigate the bias in such grouping, MCC will allocate the seeds to the tokens by

applying the 10 days rule. This can be summarized in the following formula.

4.2 Token confiscation to induce active use of tokens

Inspired by Silvio Gesell's 'negative-interest money' theory, MCC adapts token

confiscation policy from inactive participants. This policy allows confiscation of a

certain percentage of the tokens held by the inactive participants, thereby inducing

activities among the participants in the network as well as increasing the value of

Tokens held by the active participants.


<26>


Silvio Gesell originally intended a form of a "holding" tax. However, in blockchain, it

is possible to identify inactive tokens. Therefore, we adopt a policy that identifies the

inactive participants and collects a portion of the tokens from them.

For example, a participant who are inactive for 1 month will get their 10% of the

tokens confiscated. This policy will apply to all MCC participants. However, it will

be applied only to tokens acquired from P2P airdrop(DAD) Tokens bought at

exchanges will be exempted from this policy. The collected tokens will be stored in

MCC foundation as reserve for P2P Airdrop. It enables to build a self-circulating

MCC ecosystem without issuing additional tokens

4.3 Stable MCC token and its value potential

In the MCC network, the P2P Daily Airdrop and token retrieval policies are applied

at the same time, and we expect that the total number of tokens will gradually

stabilize over time. When the number of tokens in circulation converges to a certain

volume as inflationary P2P airdrop and deflationary token confiscation policy act

against each other. N, the token volume, will converge to a certain volume as the

time passes.

This policy will prove beneficial to overcome the high fluctuation which is quite

common among Crypto Currencies, and it can guarantee a stable operation of MCC

ecosystem after decentralization of MCC.

MCC token issuance and operation policies are designed so that the daily airdrop

and the token confiscation naturally creates a self-circulating structure. Excessive

inflation from additional token issuance can be prevented in advance, and the value

of the token can steadily increase as information exchanges in MCC and the

number of participants increase overtime.


<27>


4.4 Stable MCC token and its value potential

MCC will issue MCC Tokens that complies with the ERC20, a standard token of

Ethereum. MCC token is a means of exchange in the MCC ecosystem and will be

used in all exchange activities within the network. The total number of MCC Tokens

is 1 billion, and there is no further issuance of tokens. Among the total tokens

issued, tokens for P2P Daily Airdrop for the ecosystem management is set aside for

more than 79 years and will be stored in MCC foundation immediately after issue.

MCC Token is paid to network participants in the form of an Airdrop every day.

Tokens are used for updating personal information, purchasing information and

attracting node operations. When there is a request of information from the

information consumers, tokens are used for rewards to the information suppliers.

Financial institutions can advertise their financial services in MCC network using

tokens. They can conveniently provide product recommendations and attract loan

applications, or they can provide their own credit information provision and attract

document submissions using tokens.

MCC designates 23% of all tokens for p2p airdrop for successful ecosystem

vitalization. 35% is set aside for token sale participants, and 23% for initial

investment group and founders, and 19% for research, Business development and

marketing. The hardcap is ETH 25,000, and the softcap is ETH5,000. Tokens that

have not been sold at the initial participant token sale will be converted to Airdrop.


<28>


Information related to the sale of MCC Token will be announced on various

channels including MCC homepage.

HOMEPAGE

BLOG

FACEBOOK

http://www.mycreditchain.org

https://steemit.com/@mycreditchain

@mycreditchain

http://www.mycreditchain.org


<29>


5.1 B2P credit information transaction

The B2P credit information transaction is expected to be the most active in MCC.

Diverse and accurate information from individuals is crucial for the financial

institutions to perform accurate credit evaluation and for companies to market their

product to the target consumers. To accommodate these demands, MCC provides

a platform for individuals and companies to make direct transaction of information.

5 MCC use cases

[ Case: Product sales marketing ]

I got a message on my MCC app. H company sent a new car AD. It

presented the right price and purchasing terms for me. It seems cheaper

than the price I've heard. Sales terms and conditions look very good; the

interest rate is lowered. I've sold my information to H company and received

two tokens before. I am thinking I might buy this car.

5.2 P2P finance in MCC network

In the MCC network, individuals can start a P2P financing business. MCC platform

can be used to make and exchange contracts for private transactions between

individuals, and with mutual consents, each party can look through other party’s

credit information to identify reliability. Recently, P2P loan is a hot topic in the field

of Fintech. In MCC, P2P loan can happen directly without any intermediary.

[ Case: Private P2P loan ]

My friend suddenly says he needs money urgently. I heard this guy has

many troubles in his business, and I am worried about lending money at

first. I do not know what to do ... Oh! I can use MCC P2P loan. I can use this

to automatically create a smart contract, and I can also refer to his credit

information. We don’t have to meet each other face to face. MCC got a

workable solution for this tricky situation. I will ask him to request it on MCC

App


<30>


5.3 Simplification of document and document submission

In MCC, individuals can submit various official documents online when they apply

for loans from financial institutions. At present, the documents that can be submitted

online include proof of income, business information, tax information and financial

transaction information from financial institutions. It will be extended to more diverse

information that can be retrieved online in the future.

This service will be provided through a separate application. Customers can easily

submit documents via MCC, and financial institutions can save manpower and

resources by directly receiving the important documents online.

[Case: One-Click document submission ]

I need to get documents for my bank loan today. I have been thinking of

buying an apartment. I need to see if I can get a good interest rate. To get

all the document, I must go to the tax office to get the certificate of income

and the city hall to get the proof of tax payment. I need to take a day off to

do this. My wife cannot do this for me. But I joined MCC yesterday. There is

nothing to worry about. Enter MCC app, click on the required documents,

and it will process all of the document submissions online using one token. It

is completely simple


<31>


5.4 Credit evaluation using non-financial data

Non-financial data (Alternative Data) is used for the evaluation for thin-filers (person

with little credit information) and financial aliens who lack proper financial

information. FICO, a leading US rating agency, assesses creditworthiness by using

FICO scores for illegal aliens and thin-filers in the US, and UK's Visual DNA

measures credit worthiness through online surveys. Although there may be some

variation from country to country, the credit rating methods used in MCC rating is

applicable globally.

5.5 Developing Daily Airdrop(DAD) data as Universal measure

Data from Daily Airdrop has unique quality. First, it reveals personal relationship

map of each users. People with higher number of seed gift are the people who are

popular and liked by many. These people are influential and at the leadership

position. People with tight connection of giving and receiving can form a credit

union. People at the core of a group is a influencer in the group and can be good

marketing point. People connecting with distinctively different group can be a

mediator and good influencers for marketing purpose. People with little connection

can build their relationship with Daily Airdrop gift giving.

Human beings are social creatures. We all share our social nature across globe.

DAD depicts social relationship of each users. With extensive data collected from

MCC network, MyCreditChain can confidently establish correlation between

traditional credit score with DAD data. We feel that we can apply the correlation to

the underdeveloped countries where there are limited traditional credit data.


<32>


6.1 Overall roadmap

[Main schedule of road map]

2018. 2Q : Token Sales

2018. 3Q : MCC Token Exchange listing

2018. 3Q : DB construction, participant test

2018. 4Q : Recruit of participants and P2P Airdrop test

2019. 1Q : Service launching

6 Plan

MCC is built on a foundation of the Korean IT companies that have long been active

in the related fields. Finger Inc. has been one of the strongest IT companies in SI

development for Korean financial institutions for 17 years and has been

implementing Airdrop model for 7 years. Exchain Co., Ltd, a block chain

development company, carried out a blockchain based project with A Bank during

2016~7. FinTech Co., Ltd. is specialized in data collection and social credit

evaluation. FinTech Co., Ltd has provided a credit rating model and data collection

technology to major Korean financial institutions. Landing Science Co., Ltd. has

successfully conducted P2P loan business for more than 2 years and is one of the

most successful P2P micro loan companies in South Korea.


<33>


6.2 Platform and Application Development

MCC is built on a foundation of the Korean IT companies that have long been active

in the related fields. Finger Inc. has been one of the strongest IT companies in SI

development for Korean financial institutions for 17 years and has been

implementing Airdrop model for 7 years. Exchain Co., Ltd, a block chain

development company, carried out a blockchain based project with a Bank during

2016~7. FinTech Co., Ltd. is specialized in data collection and social credit

evaluation. FinTech Co., Ltd has provided a credit rating model and data collection

technology to major Korean financial institutions. Landing Science Co., Ltd. has

successfully conducted P2P loan business for more than 2 years and is one of the

most successful P2P micro loan companies in South Korea.


<34>


7.1 Legal Responsibility

7 Terms

This white paper is intended as a reference to provide the information being planned

by MCC team.

The content of this white paper can be amended later on, and if it revised, it will be

immediately notified through its webpage, blog, etc.

MCC team will not guarantee and is not legally responsible for any issues relating to

this paper.

Regarding the legal binding force, our current white paper briefly stated that “We do

not guarantee anything related to this white paper and will not be legally responsible

for it.” , but we encourage you to specifically revise it as follows. This white paper is

intended as a reference to provide the information being planned by MCC team.

The statements and information contained in this white paper are forward-looking

statements and information, therefore, such forward-looking statements and

information are uncertain as to inclusion of known or unknown risks, and the actual

results may differ materially from results expressed by the white paper or the results

of participant’s guessing through the statements in the white paper. This white

paper has no legal binding effect on MCC team and its participants.

This allows MCC team to modify, add or delete a part of the white paper at any time

for any reason. Once it changed, modified, added or deleted, it will be published on

MCC team webpage, blog and others.

This white paper does not provide a guide to investment, legislation, taxation,

finance, accounting, regulation, and it also not intended to drive MCC token

purchases, sales, or provide a basis for trading. Before purchasing MCC tokens,

investors must aware the potential benefits, possible burdens and other

disadvantageous consequences through consulting with regulatory experts

regarding investment, legislation, taxation, finance, accounting, and regulation.

This white paper is not a plan to issue securities, nor is it an encouragement to

invest or purchase securities. Accordingly, the participant should aware that MCC

token does not represents securities and that the white paper is not for issuing

securities, nor is there any form of dividend or voting right for MCC token. Please

note that MCC team do not bear compensation for any form of loss, liability, or other

financial damages caused by the use of this white paper by investors.


<35>


MCC tokens must not be provided, distributed, resold or transferred to any citizen or

corporate entity (limited participant) in the area where digital token transactions are

prohibited or restricted by law or policy.

MCC team may either reject a request to buy MCC token at any time if the

information, provided by the participant attempting to purchase it, is insufficient and

inaccurate, or if the buyer is assumed to be a limiting participant.

Transaction could be prohibited, restricted, cancelled, and invalidated whenever a

participant purchase MCC token on an illegal or unauthorized route.

Determine whether MCC token can be legally purchased in a buyer’s area and

whether MCC token can be resold to other buyers in particular area is responsible

for MCC token purchaser, not for White paper. All responsibilities incurred by the

restricted participant’s intervention is upon the participant and the person who

distributed, resold, and transferred to restricted participants.

Reference

[1] Varian, H. R. (1996). Economic Aspects of Personal Privacy. Technical report,

University of California, Berkeley.

[2] Noam, E. M. (1997). Privacy and self-regulation: Markets for electronic privacy.

In U.S. Department of Commerce, Privacy and Self-Regulation in the Information

Age.

[3] Acquisti, A. and J. Grossklags (2007). What can behavioral economics teach

us about privacy? In S. G. C. L. Alessandro Acquisti, Sabrina De Capitani di

Vimercati (Ed.), Digital Privacy: Theory, Technologies and Practices, pp. 363–

377. Auerbach Publications (Taylor and Francis Group).

[4] Acquisti, A. and H. R. Varian (2005). Conditioning prices on purchase history.

Marketing Science 24(3), 1-15

[5] Acquisti A., Leslie K. John, and George Loewenstein. What is Privacy Worth?

The Journal of Legal Studies, Vol. 42. No.2 (June 2013), pp. 249-274 The

University of Chicago Press for The University of Chicago Law School

[6] LTP – Let’s Talk Payments, March 16, 2017

[7] http://ceoscoredaily.com/news/article.html?no=4881

[8] data no miezaru te, 2014, Kazuo Yano, Soshisha Publishing Co. Ltd.

[9] Boltzmann distribution

https://en.wikipedia.org/wiki/Boltzmann_distribution

[10] [The Natural Economic Order] – Silvio Gesell

[11] Gift Economy : Scared Economy, Charles Eisenstein, 2011

HOMEPAGE

BLOG

FACEBOOK

MCC Foundation

Bring Credit information back to People!

https://mycreditchain.org

https://steemit.com/@mycreditchain

@mycreditchain

http://ceoscoredaily.com/news/article.html?no=4881

Documents

WHITEPAPER - ICO Platform white... · 2018-08-14 · objective information, MCC provides information about one’s social connections. MyCreditChain has a gift-giving daily airdrop(DAD)