White Paper Platform of attracting investment through the holding of ICO and crowd-funding and management of the company through contracts the Ethereum blockchain and Ethereum classic avatarnetwork.io god@avatar-bank.com
1 Description of the problem... 2 Solution... 6 Purposes of the company... 7 Technological specific of the solution... 8 System of digital asset emission and management... 9 AvatarPay system... 12 Types of contracts for realization... 14 Letter-of-credit contract on the blockchain... 16 Token-Coin... 18 Depository in the blockchain... 19 How company and its investors can earn money... 22 Organization of international independent and autonomous jurisdiction based on DNA passports... 23 Cooperation organization scheme... 26 «Legacy transfer» contract... 29 Forming the documents for company representatives with momentary authentication... 30 Further plans... 32 Conclusion... 32
2 Monopoly for money emission Due to the increasing globalization of all processes we can see that all geopolitical and financial processes are ruled by shadow organizations and clans having monopolies for money emission and buying military potential on them for the coerced right of exclusive use for this printed currency. Thus, the human being is captured and forced to survive. To overcome the problem of the occupation, we need to build the decentralized system of society selforganization with the budget spreading by a decision of decentralized blockchain voting. Digital asset emission and sales Thus, with the appearance of the blockchain technology, we have got a brand new tool for founding such organization. As each technology, potential harvest or company can be valued beforehand with the further emission of conditional currency units or bonds (tokens) for these potential assets which can be exchanged for real money, the growth of the company can be fastened with the creation of new market values which were prevented from development before by the same deterrent forces for keeping their monopolies. So, this is the way we solve the investment problem through the organization of digital token asset emission and their exchange to other currencies and valuable assets. Here, we can talk not only about earning the money, but also about the creation of a new kind of money. Company management Further, having some currency in hands, we need to organize branch offices and representatives, accountants, inner economy, gathering of the analytic information through voting withing the company. We shall do this through smart contracts which have just entered our life. Creating the trusting environment Thus, we have got the organization which is independent from the activity of the regulator, but we need the trusting operating environment in the business field to make business only with reliable counter-agents. In small communities, it is hard to hide anything, so everyone can see you in transparent. So, it is a shame and a disadvantage to shatter the peace as you are responsible for this. There is a value how many counter-agents can be remembered by one person
3 with the unconscious remembering of their rank. It is called Dunbar's number and is about 150 but the number of people in the society you have to make business with is much bigger, and, with the growth of the globalization there are more and more secrets, so the fraud flourishes, people don't believe each other anymore as there is no instrument for data verification. As you know, modern technologies can easily help to forge documents or history of even to release some backdated documents. Every force coming to power revises the history immediately. A person cannot remember everything. Memories are erased with the help of information wars and smooth double-talk. So, the fraud has been hidden in an even bigger fraud to avoid responsibility. Lies and frauds have spread all over the planet, becoming the base for distraction and war! Everything has changed with the appearance of the blockchain as this technology can guarantee the certain information! So, it can guarantee the Truth! This can stop most of financial, judicial and social frauds based by corporate group secret deals in their personal interest! After looking and this, we have come to a conclusion that we need a payment system which can take into account the rank of deal participants and see it for free without any third parties. This can be organized through a contract available in the wallet system called AvatarWallet. This payment system was called AvatarPay. Cooperative form The problem is that every company wants to be the first, the leader of the market, but it cannot reach the necessary autonomy as every company usually has its narrow specialization, so it depends in some way on other sectoral markets such as raw material suppliers, nutrition, logistics, medical insurance, legal services. So, to create the autonomous environment, we need to organize a cooperation. Moreover, the international legal base for such organization form exists. The decision looks like that: a cooperative council is formed, usually consisting of member company directors. This council values the assets of each company with the further emission of the corresponding quantity of tokens. All companies agree to accept these monetary units for their goods and services. Thus, if companies within the cooperation satisfy the needs of all participants,
4 it becomes rather autonomous. So, we come to the idea of building a full-value decentralized autonomous organization (DAO), or AvatarNetwork. Property rights In everyday life, there is often need in creation of property rights registers. It is obvious that property rights always belong to a certain person. So, the problem of his or her identification on the blockchain. Here, we have decided to make an identification system using the DNA analysis, as such analyses can always be proved and digitalized and don't depend on the central power organs which verify the passports. There would be several popular registers of property rights Property rights for vehicles Property rights for apartments Property rights for lands Property rights for patents The contract would rewrite the property rights for valuable objects for the buyer in one transaction. The transaction would be the proof for the property transfer and the change of the owner. In the contract, the owners for each object would be seen. Thus, transparent registers of property rights would be created.
5 Abstract The new technology has its global influence on the financial system as the restructuring of some industries occurs due to the blockchain. We are at the gates of the new economic reality. With the appearance of the Ethereum technology with the possibility of registration and execution of smart contracts, the legislative field and the system of relations between people is changed. Only few people want to face it, but this technology lets return power to the people, to the ones who are the source of all goods!
6 To solve this problem, we have decided to use the Ethereum blockchain technology. There are several reasons to do that: The network is decentralized. There is a possibility to execute the contracts, so the system can provide and solve the legal problems. It has user-friendly interface. Enterprise Ethereum Alliance has been already organized, with the participation of such companies as Intel, Microsoft, Bank of Canada, Toyota, Samsung and about 60 other large corporations. A lot of projects is being created on this platform, so our contracts and software would be compatible with these platforms. The network is 99.99% protected from hacking and more reliable than common banking systems. Quick validation of transactions. One block is validated in 20 seconds.
7 Creating the self-administration system for the company which cannot be regulated by third parties. Implementing the reputation system to increase the responsibility level for individual deals and contracts, together with the transparency level for market participants to create the trusting environment for doing transparent and honest business. Implementing the AvatarPay payment system for goods and services which cannot be regulated by third parties, has the ranking system, is totally transparent and protected by the authentication key or the multi key. Building the cooperation system acting as the Autonomous Decentralized Organization and using its own inner monetary unit which lets provide the set-off of the goods and services movement within the autonomous eco-source system. Creating the registers for property rights based on the blockchain system and the DNA passport and building the architecture and the behaviour models for AvatarNetwork social networks, financial communications and proof algorithms for smart laws in our homeland. Creating the precedent on Earth for organization of all-planet referendum with the registration via DNA passports in the blockchain for the right of use of all the Bowels and the Resources of the Planet Earth on the right of the co-founder with the guarantees of individual rights and freedom for everyone as the equal player and the Owner of His Own Life, together with the transparency of all the Economic System!
8 Ethereum blockchain for providing the data protection and validity. Mobile apps for Android and ios. Cards for reaching the system without mobile phones. PlayDisplay alternative reality for creating the user-friendly interface for interaction with the reality. Identification using the recognition system for faces, DNA or representative signatures. Smart contracts provide 100% guarantee of performance of the agreement. Open API Compatible with a number of external system. IoT smart contracts helping to create a 'smart house' and 'smart city' by expense optimization.
9 Digital assets emission system and management are the platform for ICO (Initial Coin Offering) realization. The digital asset is a token (coin) or its part which can either be the company stock, the right to receive goods or the company's debt obligation. In the beginning of the attraction of investments makes all the calculations of digital asset emission by its own self, with the system of their allocation, purchases and the performance of obligations if necessary. Digital assets would be build on Ethereum blockchains. Additional tokens can be emitted with the possibility of the elimination of unnecessary units and the further emission only after N signatures from the company co-founders or depending on the calendar. It is possible to produce tokens of the standard ERC-20 ERC-223. Tokens can be kept on Avatar cards or AvatarWallets or other Ethereum wallets supporting ERC-20 tokens. The token is ERC-20 TOKEN international standard, so it is compatible with the processing of all world cryptoboards.
Tokens can be purchased for all world cryptocurrencies or even for other liquid tokens. A businessman organizing ICO or crowdfunding sets the wallets for receiving assets himself. 10
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12 Trusted payment system using the ranking system. Notable for the presence of an escrow account for money reservation up to the fact of receiving the goods by the customer from the seller using the principals of letter-of-credit logic. After the deal, its participants can value each other from 0 to 100. Before the deal, they also can see the average rank of the participant. Values and possibilities Both participants of the deal can see the reputation of each other before its beginning (the number of deals and the average percentage of opinions) Unlimited transfers No market regulations; guaranteed transaction results Low service costs Accelerated deal cycle. Payment via QR codes. Transparent transfer system Reputation index set after the end of the deal Making deals using only Avatar.Card and a smartphone Escrow account for money reservation up to the fact of receiving the goods using the letter-of-credit logic principals.
13 The result of AvatarPay system implementation: Increasing of the responsibility level for deals and contracts. Creating the trusting environment for honest business and open economy. How it would be realized This technology would be realized with the help of the contract containing the escrow account and the ranking system. The contract would be implemented into the AvatarWallet mobile app through AvatarInterface. Ranking system: Both participants of the deal can see the reputation of each other before its beginning (the number of deals and the average percentage of opinions). The rank is set after the end of the deal by both participants. No one can delete, fake or zero it.
14 1. User registration, saving the Last Name, First Name, Patronymic, birth place and date, photo and other data. In fact, it is the passport of a person. The owner of the passport can change his Last Name, First Name, Patronymic himself. Other data can be proved by the maternity clinic and/ or parents. This contract is necessary for the possibility to link the address with a person to prove his right to make legal deals. 2. Document signature registration of the document within the blockchain and its signing by any number of people. 3. Vote registration and participation in the vote, revision of the voting statistics. 4. Letter-of-credit procedure of purchase of the goods with the reservation of money on the escrow account until the moment when the goods are received. The seller can see the money reservation on the escrow account for sale and then sends the goods. After receiving the goods, the customer unblocks the money and they are sent to the seller. ERC-20 tokens can be put to the contract. 5. Collective ownership for accounts. A person can withdraw money from the account only after signing by all co-owners or set it the proper way, so the money can be withdrawn after signing by come percentage of co-owners of the account. 6. Payroll card program delegation of the access rights to the company account for payroll management, hiring and firing procedures with the registration of these documents in the blockchain. 7. «Legacy transfer» contract legacy can be transferred as output and ERC-20 tokens to the to the notified address. There is a possibility to name the people that can be experts to the fact of your death. 8. Forming the documents for company representatives with the momentary verification. The purpose is creation of the hierarchy system for delegation of rights and mights for the realization of the system of departments, licenses, franchises and other hierarchy company systems. Friend-or-foe identification system. 9. Auto Inspection any decentralized organization can keep its own tab on vehicles with the emission of all the necessary documents. Driver licenses, vehicle registration certificates, vehicle passports, vehicle numbers, violation registration and investigation. 10. Network identification personal data proof through witnesses
around. Thus, network identification can be organized, now being under construction within the Nemsis project. 11. Cooperation token emission through the cooperative council via voting or multi signatures. 15
16 Letter-of-credit goods purchase procedure with the reservation of
17 money on the escrow account until the goods are received. The seller of the goods can see the reservation of money on the escrow account for sale and then sends the goods. After receiving the goods, the customer unblocks they money and they are sent to the seller. If the customer is not satisfied with the goods, he sends them back after the goods are received. The seller unblocks the money and they return to the customer. After the end of the deal, the customer and the seller can rank reach other and see the ranks of each other before the deal. The contract supports the use of ERC-20 tokens.
18 To accelerate the implementation of the project, it was decided to issue shares of the company in token of the company AvatarCoin. Avatars (AVR) the Coin is intended to pay for while using contracts and purchase of goods and services to the Avatar Network and partners in our ecosystem. Is the Ethereum token standard ERC-20. Compatible with processing all the world's kriptonite. Store in any purse or Ethereum platform AvatarNetwork. Results will be released 100,000,000 AVR. Following the ICO tokens will be placed on exchanges and can be traded as well as other digital assets.
19 Is used for the registration of documents in the blockchain with the ability to sign it with digital signatures. The following information is saved after the registration in the blockchain: ~ Document name ~ Document link ~ Additional data After the registration, the transaction hash and the document identifier in the contract registry are given. With this identifier, any network user can sign this document. Possibilities and conveniences: Documents are registered in the Ethereum blockchain There is a possibility of remote signing using the electronic signature There is an issue from the depository with the registration approval Deleting or editing the records and signatures is impossible There is a possibility of keeping the digitalized document Documents cannot be destroyed, taken out, stolen, burnt or falsified Documents can be signed by digital signatures by any number of people Document search Comfortable keeping and availability from each coordinate in the world
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21 Пример рабочей альфа версии «Портфель документов»:
22 The main source of the company income is the percentage rate from the investment projects released by third-party companies with the help from the bank. From each ICO made with the use of our platform, Avatar Bank would get 5% for payment for our goods and services. Receiving money through crowdfunding organization. Selling Avatar Bank cards, DNA passports and other bank services. How investors can earn money? There are two ways of earning money for them: 1. Selling the tokens after their entering the board. As tokens are sold for the minimum price, they would grow. 2. Earning the dividends from the company for all time of its existence.
23 The main purpose of the legal right is the identification of the person with the description of property rights registration and transfer. These two problems would be solved with the help of (SMART-CONTRACT). The first task is the identification of a person, being solved through the link between the DNA passport of a person and the registration blockchain. To pass the whole procedure, a person should: 1. pass the DNA medical analysis 2. verify his medical analysis for his own passport with the help of the lawyer 3. register the DNA passport in the contract 4. Contracts can be signed from the blockchain name of the digital AvatarPassport, which is considered to be the identity card (in Arizona, US, digital signatures already have legal power).
24 Definition scheme of the links between jurisdictions and digital signatures Kinds of property rights that would be created: Vehicle property rights Apartment property rights Land property rights Patent property rights Etc. The passport is linked to the DNA profile and is registered in the blockchain. This gives the opportunity to organize the property rights or the copyrights with the personal identification with the 100% guarantee (even after plastic surgeries and changing of all documents) Main properties of the DNA passport The unique code for all the Planet The passport can be digitalized
25 The code is not change even after sex reversal The DNA passport is legally verified in correspondence with the international laws or the current state laws for providing of links between the jurisdictions. DNA analysis gives the right to sign smart contracts due to the AvatarMultipass International Personal Identification Standards. Proves the direct relations between parents and children.
26 Description: The cooperation is a kind of a cooperative form when several companies unite into a unique structure with its inner currency which can provide the set-off of the goods and services movement within the cooperation. Such cooperative form of work, or the customer societies, is internationally legal. The cooperation can consist of several companies, each company is registered by its owner. The owner of the company provides his goods and services to the cooperation council, the cooperation values the input stock and emits the monetary units for payments, transferring them to the new company for the use within the
27 cooperation. The cooperation pays the salary to its employees in the same currency. The monetary unit is considered as the calculation unit within all the cooperation. The customer, being the participant of the cooperation can buy some goods or return some share as the participant of the ecosystem, cooperation or the customer society To sell the goods from the name of the company, cashier positions are being made within the company. There can be any number of cashiers. Money (monetary units) are transferred to the cooperation account (the share is returned). Thus, the set-off of the goods and services movement within the cooperation takes place. The system takes into account the presence of goods, their sales and the money calculation in the wallets belonging to the participants of the cooperation. If the goods were damaged, some monetary units concerned with it are deleted for the support of the value of the monetary unit. Thus, monetary units are always provided by goods. The owner of the monetary units can make payments within the ecosystem or transfer them to third parties as the liquid asset. Solution: Is organized as the smart contract emitting the tokens and transferring them within the system. There is a function of token deletion in the case of damaging the goods. The cooperation council decides to emit the money using the multi signatures. For the cashier, AvatarCash app would be developed. Here, there is a draft sample for the cooperation:
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29 «Legacy (gathered value) transfer» contract after someone's death. Using this contract, you can transfer not only money (ETH), but also the tokens and the property rights. Description of the release The owner of the values is registered in the contract. In this contract, he can register a person or a number of people with the right of 'legacy' and their shares. In the same contract, he can register some people as the experts of the fact of the death of the value owner which are not directly interested in his death and notes the case of positive decision for legacy transfer. After the owner's death, experts notice the fact of his death and then the values are transferred to heirs in correspondence with the cases of the contract. If experts sanction the fact of the preliminary transfer of the fact of death, the owner can cancel the deal in the contract, so the experts will receive the negative rank, with this fact being the case for the responsibility of dishonest experts. Money transfers using the DNA passports The money is transferred with the help of the contract For the proof of the fact of death, a person sets a list of people able to prove this fact (the fact of death) After the proof of the fact, the money is transferred automatically to the account listed in the contract An additional option can be activated to prove the DNA of the heir, with the involving of an expert signing the authenticity of the DNA Transfer of the property using the DNA passport The same mechanism of property transfer can be implemented for all values, such as: o Copyrights o Vehicles, land properties, companies o Documents
30 Purpose: creation of the hierarchy system for delegating the rights and mights for release of the system of departments, franchises, licenses and other hierarchy company system. Identification system for friend/ foe definition. Situation of use: For the protection of one's own business and company from double dealers (dummies). In other words, for definition of official company representatives from unofficial ones by the company's own clients which can destroy the reputation and involve third parties into fraud schemes. The company gives its clients the instrument of document authentication for the official representatives. AvatarWallet phone app would be the instrument for check. Pros: the final document would be verified in two seconds via scanning the QR code with the telephone, which prevents from the wrong company representatives which can try to pass as officials without any franchises or liabilities if the company is successful. Release: in the form of a 'smart' contract. A QR code is being put to a document which can be scanned by anyone with the information about the owner of the document with the photo. A person can pass the right to give the documents to the juniors. The cancellation of the document validity for some office when the documents given by juniors are cancelled automatically.
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32 Implementing the Ethereum Classic blockchain. It would soon have the technology of contract registration with zero knowledge proofs, which makes tracing the transactions impossible. At the same time, the technology guarantees the full data consistency. Avatar.Protect protection system for the participants acting through rapid response system. Implementing the EmerDNS system for the distributed register of Domain Names. After the organization of the current AVATAR NETWORK, we would be able to create the environment for trusting business where goods and services will cost less of their real price as the system lets avoid the taxes. Besides of that, the AVATAR NETWORK system would help to create the closed and autonomous decentralized community acting on trust and independent from casual people. Thus, we are making a precedent on Earth to organize the global referendum with the registration within the blockchain for the property rights for all the Bowels and the Resources of the Earth on the rights of co-founders based on DNA passports, with the guarantee of all individual rights and freedom as the equal market player as The Owner of The Unique Life and the transparency of all the Economy system! Let the welfare be blessed! Avatar Network