Colorful dapp Store Decentralized Applications for the People. Version 0.73 May 21, 2018 Color Platform Team

Transcription

1 Colorful dapp Store Decentralized Applications for the People Version 0.73 May 21, 2018 Color Platform Team

2 Table of Contents 0. Abstract 4 1. Introduction 5 2. Limitations in Blockchain Scalability 6 3. Colorchain Consensus Physical Unclonable Function (PUF) Chip P2P Transactions PUF Consensus With Blockchain Ledger Colorchain Conclusion Color Development Kit Color Engine Color Smart Contract Color Virtual Machine The Color Platform dapp Layer Service Layer Color Gallery Abstraction Layer Roadmap Mega dapps Color Reward Color Career Color Medical Color Home Color TV Pixel Program Pixel Distribution Token Issuance Token Generation Event Terms Token Generation Event (TGE) Breakdown Token Generation Event (60%) Commons Treasury (10%) Platform Reserve (10%) 32 2

3 8.2.4 Bounty and Partnerships (10%) Team and Advisors (10%) Token Generation Event Proceeds Platform Development (40%) dapp Development (20%) Operation Expense (15%) Strategic Partnerships (15%) Marketing and Promotions (10%) Conclusion Disclaimer Legal Statement Restrictions on Distribution and Dissemination Disclaimer of Liability Cautionary Note on Forward-Looking Statements Potential Risks No Further Information or Update No Advice References 42 3

4 0. Abstract Color is creating a decentralized app store for the people. Centralized services serve platform owners by reaping the rewards of user-created content. The Color dapp Store aims to create a decentralized app ecosystem that instead enriches the people who use it. The Color Platform is developing the Colorchain consensus algorithm to ensure speed and security. Colorchain is a hybrid software/hardware blockchain that provides real-time P2P data transfers. Colorchain transactions are P2P transactions that initiate only between two engaged nodes. A minimal number of transaction parties greatly increases the transaction speed. Additionally, Colorchain pairs cryptographic software with cryptographically secured Physical Unclonable Function (PUF) chips. The Color Platform aims to provide enterprise-level transaction speed and security through Colorchain. We are still reliant on prototype-level dapps, which are plagued by scalability issues. Color aims to revolutionize the dapp ecosystem by developing enterprise-level dapps. Moreover, instead of hosting a plethora of unrelated services on a single platform, Color dapps will be powered by a single unified cryptocurrency, the Color Coin (COL). To ensure rapid proliferation of the Color Platform, the Color Team has already been developing three mega dapps: Color Legal, Color Medical, and Color TV. Additionally, the Color Team is in talks with various partners to rapidly expand their dapp product base. Color is also developing a Color Development Kit (CDK) to accelerate the development of dapps. The Color Development Kit enables users to simplify the smart-contract and dapp-development process. The Color Platform is launching the Pixel Program to facilitate the network-effect spread of Color Coins. The Color Platform is focused on the fair distribution and active usage of tokens to promote a vibrant token community. The Pixel Program will serve as the hub for future issuances of the Color Platform. 4

5 1. Introduction Centralized platforms lead to centralized profits. The Apple App Store and Google Play 1 Store collectively take 30% of the profits made from downloaded apps not just commissions from paid downloads but in-app purchases as well. With centralized services, high commissions are simply the price you pay for (inefficient) middlemen. Further, this reliance on centralized financial institutions to execute platform transactions isolates a massive unbanked population. The centralized exploitation model is simply a retread of existing models. Facebook, Twitter, and Instagram, for instance, are building billion-dollar companies off community labor, a relationship akin to the disproportional profit of equity holders and base employees; product profits accrue to administrators, thus disincentivizing the collective to improve the product. Cryptocurrency introduces a whole new way to create an ecosystem for a company or platform. In the old model, a company s stock, reward system, and currency were all quite different and only accessible through distinct centralized systems governed by a strict set of rules. Today, we can build systems that encompass complex schemes where shareholders, users, and creators can all be incentivized to make a better product or service using a single cryptocurrency token. This has the potential to create a positive feedback loop based on greater system usefulness and an increase in the number of participants. At Color, we re building a collection of dapps to attract users and build a community. These dapps employ human-centered design so non-technical users may adopt the platform. By removing the technical barriers to entry and making dapps easy, anyone should be able to use them. Think Color. 1 "Transaction fees Play Console Help Google Support" Accessed 18 May

6 2. Limitations in Blockchain Scalability Bitcoin is an open-source, decentralized, peer-to-peer cryptocurrency created in 2009 by a party or parties using the pseudonym Satoshi Nakamoto. It was the first blockchain-based cryptocurrency utilizing distributed ledger technology (DLT), which records financial transactions without involving a centralized banking network. It is often called the greatest technological innovation since the Internet itself, and for good reason two parties sending money across the world with no intermediary is something the world had never known. Without banks, services like PayPal, or others brokering your transaction, it was impossible to enact a peer-to-peer transaction of a digital asset that couldn t be forged or copied. Bitcoin proved it could facilitate this and do so cheaply. For the first time, on January 3, 2009, the world knew decentralized digital scarcity. In recent years, however, scaling, fees, and speed have become major concerns for users and proponents of the cryptocurrency. Is Bitcoin really meant to scale, with micropayments and the processing of millions of daily coffee purchases? Currently, the Bitcoin network can only process around 2.5 transactions per second and only updates approximately every 10 minutes. In 2017 transaction fees rose to as much as $35 USD during peak usage times. Even if you paid that transaction fee, you could be stuck waiting hours for the transaction to be confirmed. Not exactly a cash replacement. Graph 1-1 taken from bitcoinfees.info the average fee per Bitcoin transaction priced in USD 6

7 These fees and delays can be attributed to the enormous network of miners required by the system. Miners secure the network by verifying transactions on the blockchain and ensuring they are confirmed. When a block is confirmed, the network is essentially saying, The transactions of the last 10 minutes have been verified as valid. The miners are rewarded for their efforts, and the process repeats. Once these transactions are added to a public ledger, they can be viewed by running the Bitcoin software or using a trusted block explorer. What causes delays in the network is the small block size, which limits transactions to roughly 10-minute increments. This can be changed (through consensus on the network), but when a higher limit is set and Bitcoin scales accordingly, people running the Bitcoin software will need ever stronger and more powerful computers. In a few short years, this could lead to the necessity of hosting a Bitcoin node in expensive cloud storage, paying for bandwidth commensurate with the amount of traffic it generates. It s for this reason that the block size is kept small. With the standard configuration of the Bitcoin client using about 40GB of traffic per day, even the most developed countries blow through the monthly Internet data limits in a matter of weeks, if not days, not leaving room for much else (the prospect is much more grim in developing countries). And that was before SegWit blocks, which only double or potentially triple the problem! Even if customers are willing to pay for it, the usage creates a target for corporate policy and government regulators. Other blockchains have attempted to improve scalability, but none has been able to make much of a difference aside from Bitcoin. Notable attempts include Ethereum s Raiden Network (similar to Bitcoin s Lightning Network in that it facilitates offline peer-to-peer transactions between two parties). The fact remains, however, that if you have a blockchain maintained by miners, the cost will be significant. Fees paid to miners, as well as the new coins created to keep the mining properly incentivized, essentially act as a tax on the network. The conservative inflation rate touted by BitShares (which isn t publicly mineable) amounts to the yearly salary of one U.S. worker per day to maintain. This is a vast improvement, but what if there were a way to achieve a peer-to-peer transaction in the same way you would hand you cash, without the added cost of maintaining consensus? 7

8 3. Colorchain Consensus Slow transaction speed and delayed consensus time are preventing blockchain technology from reaching mass adoption. To achieve mass adoption, Color needs to reach transaction speeds that rival or surpass those of traditional payment providers such as Visa and Mastercard. Scalability issues become more prominent with decentralized blockchain platforms. Not only is the dapp speed curtailed; the entire blockchain network is impaired, ultimately making the dapp and the blockchain itself unusable. It s time to look beyond blockchain. The Color Platform utilizes Colorchain, a hybrid software/hardware blockchain that enables lightning-fast decentralized computing. Colorchain utilizes a peer-to-peer (P2P) payment system and a cryptographically secured physical unclonable function (PUF) chip to greatly increase transaction speeds. Color aims to maintain enterprise-level speed and scalability while hosting thousands of dapps. Centralized Blockchain Colorchain No Consensus Required O X O No Trusted Party in Need X O O Peer-to-Peer X O O Fast Transaction O X O Offline Transaction X X O Scalability X X O Table 3-1 Colorchain: Bidirectional, Offline-Payment, Peer-to-Peer Digital Money Without a Third Party 8

9 3.1 Physical Unclonable Function (PUF) Chip Figure 3-1 Memory-Based Security Chip The Color Platform ensures cryptography on a software level and a physical level through 2 physical unclonable function (PUF) chips. When using PUF in a consensus algorithm, every user node has a physical PUF chip and logical PUF software. PUF chips help protect private data from unauthorized user access. A PUF chip is a cryptographically secure device that utilizes unclonable physical characteristics. Each PUF chip has a unique, unclonable digital fingerprint or digital DNA that serves as a key identifier. Colorchain s PUF chips improve on standard memory-based security chips with (a) unclonable PUF-based embedded random numbers, (b) PUF-based true-random-number Root of Trust (RoT), (c) PUF-based encrypted data transfer on BUS, (d) data stored with PUF encrypted on memory, and (e) a hard-coded crypto algorithm for safer and faster transactions. Christoph Bohm, the author of Physical Unclonable Functions in Theory and Practice, defines PUF as follows: A PUF is a physical entity which produces an output value at least independence of 3 physical structures, which are hard to clone. 2 C. Herder, L. Ren, M. van Dijk, M-D. Yu, and S. Devadas, "Trapdoor Computational Fuzzy Extractors and Cryptographically-Secure Physical Unclonable Functions, IEEE Transactions on Dependable and Secure Computing, January Christoph Bohm, Maximilan Hofer, "Physical Unclonable Functions in Theory and Practice, Springer, 2013, p5. 9

10 The unique PUF digital fingerprint is constructed via a physical microstructure. The microstructure is randomly created based on unpredictable physical factors introduced during the manufacturing process, which makes the unique fingerprint impossible to duplicate. PUF chips serve as physically unique and tamper-proof identifiers. They provide an additional layer of secure key generation. 4 Figure 3-2 Unclonable Physical Microstructure of ICTK Holdings via PUF, which does not require error correction codes (ECC) 4 Former ICTK Co., Ltd., is divided into the payment accreditation lab division and the ecc-free via PUF development division, and ICTK Holdings Co., Ltd. continues the PUF development. Accessed 18 May

11 3.2 P2P Transactions 5 Figure 3-3 How to Make Consensus Using PUF-based PureChain Consensus Engine Powered by PUF-based PureChain consensus engine, Colorchain improves transaction speed by enabling consensus between only the two engaged nodes. This narrow consensus bypasses the need for third-party confirmation and minimizes the delay between transactions. Through Colorchain, users can send and receive any type of transaction with minimum confirmation delay. With the Colorchain P2P consensus, transactions per second (TPS) becomes meaningless. PUF P2P transactions utilize two PUF chips and four digital signatures. Each PUF chip is divided into two layers: the security layer and the user layer. The pre-transaction and post-transaction data are signed within the user layer. The transacting agent then confirms the transaction and concludes it by recording it on the security layer. 5 This PUF-based consensus engine is originally designed and officially introduced on 8 March 2018 by PureChain ; Color Platform Team is in partnership with PureChain. Accessed 18 May

12 The security layer of the PUF verifies the user-area information and records the transaction to further guard against double spending or forgery. The result of the transaction s digital signatures allows the PUF to verify whether or not the records of the transaction parties were forged. If all the verification results are the same, the transaction will be confirmed. If the verification results do not match, the transaction will be abandoned, and all states in the local user node and other user node will be restored to previous states. As PUF values cannot be replicated, the data generated between PUFs maintains its solidity during the transaction. The dapps that use PUF security can be separated from the PUF device to be used with separate software or safety devices. Color Coins provide instant transaction required for enabling instant smart contract execution on the blockchain. Color Coins are first and foremost a utility token that fuels the immutable execution of software, similar to Ethereum s gas. Secondarily, Color Coins are utilized as an in-app currency for dapps built upon the Color Platform. Color Coins guarantee anonymous transactions that continuously delete previous balances and transactions. Since the nonce generated by a PUF substitutes the transaction address, the possibility of personal-information exposure is very low. Moreover, the transaction model never exposes the trading details beyond the trading parties. Even if transactions are repeated, there s very little chance transaction details will be centralized or linked to other information. 6 Figure 3-4 Color Coin Ledger Structure 6 Based on PureChain transaction flow; Color Platform Team is in partnership with PureChain. Accessed 18 May

13 3.3 PUF Consensus With Blockchain Ledger Figure 3-5 PUF Consensus Flow There are two types of terminal nodes, terminal nodes without a PUF chip and terminal nodes with a PUF chip. If terminal node has a PUF chip inside, it will not use PUF chip for transactions in SVC node. In that case, PUF terminal node will work like normal Non PUF terminal node. If and only if two PUF terminal nodes want to make transactions, they will use PUF chip without any intervention of 3 rd party. In order to make a transaction between PUF terminal node and Non PUF terminal node, PUF node has to store its account status into blockchain and then it will work like a Non PUF terminal node. In that case, all the information stored in blockchain from PUF terminal node are already confirmed in inside of PUF chip. To make more sophisticated services in real world application of blockchain, we need service nodes between blockchain and terminal nodes. The service nodes will provide advanced blockchain services to terminal nodes and will transfer transaction information into blockchain instead of terminal nodes. So the Color Platform will define the service layer and how it work with PUF or Non PUF terminal nodes. 13

14 Colorchain will also utilize a blockchain ledger to confirm transaction records from PUF devices. PUF uses a P2P consensus algorithm without intervention; it will not generate ledgers on its own. A PUF-capable terminal node must send its account status to an SVC node for further verification and storage on the blockchain. Colorchain will send P2P transactions alongside the blockchain ledger much like Ethereum utilizes the Raiden 7 Network, in which nodes can transfer coins directly to other nodes without mining. 3.4 Colorchain Conclusion Colorchain serves a pure peer-to-peer cryptocurrency system that excludes third-party involvement. It uses digital signatures through the non-replicable attribute of PUF chips. This technique overcomes the constraints of other cryptocurrencies, including transaction delays and the limitation of TPS. In addition, it doesn t require a separate consensus process to maintain the completeness of the transaction. This characteristic approximates the existing monetary system. 7 "Raiden Network." Accessed 18 May

15 4. Color Development Kit As seen in the original Industrial Revolution, automation leads to mass production, which then leads to cheaper prices. This same principle applies to decentralized platforms where automation in creating digital data leads to massive flow of data and ultimately results in lowering the cost associated with generating the digital data on the blockchain. We call this the AMP Effect (Automation leads to Mass production and it will dictate the Price). The Color Platform will nurture the next generation of blockchain developers. The central goal is enabling non-technical users to access the power of blockchain, which is why the Color Platform is developing the Color Development Kit (CDK). The Color Development Kit is a development package aimed at accelerating the development of dapps. Color will use a powerful, familiar virtual machine to simplify smart-contract creation, thereby reducing dapp development costs. With its easy-to-use front end and developer tools, the Color Development Kit will enable a new generation of dapps. Blockchain is poised for a technological leap forward that will deliver immense value to all parties in a transaction and Colorchain is ready to take that lead on delivering such value through our own cutting-edge decentralized platform. Colorchain will help outperform other existing blockchain platforms while delivering value to our platform community users. The Color Platform is reviewing various programming languages such as Java, Javascript, Jquery, Python, Php, C#, C++, XML, LISP, Solidity, and Go Language to enable easy development of dapps. 15

16 4.1 Color Engine Application developers will be able to use the Color Engine to assist them in writing Color Smart Contracts. Primary use cases for these Color Smart Contracts include payments distributed to team members with varying licenses and royalty rates. Users will be able to store datasets that can be easily verified by anyone on the blockchain. The Color Engine Engine also enables the implementation of smart contracts on the Color Platform. Color Smart Contracts allow software to be written automatically on the Web without programming. For example, if you were writing a car-rental contract, the contract would be selected from a template repository. The form would have fields like Duration and Cost. The information in these fields could then be plugged into a prepackaged Ethereum Solidity contract that sends a time-bound digital car key to the contract payee. Eventually, the user experience for common contracts would simply involve a form or service provider for contract types. The contract would benefit from a decentralized, code-enforced exchange of two assets/tokens just enter the required info and press launch. Color Engine allows platform community users to build various types of decentralized applications. Colorchain platform will revolutionize the way our community users create and analyze real-time flows of both structured and unstructured data to assist in making Big Data analysis and Machine Learning on our decentralized platform possible. Figure 4-2 Color Engine 16

17 4.2 Color Smart Contract The Color Platform was launched with the understanding that to bring smart contracts to the mainstream, they must be simple and accessible. The most common use cases for smart contracts will arise repeatedly, with slightly different parameters, thus obviating the need to rewrite the logic piece of each contract (similar to how SpaceX reuses its rockets). Imagine having these user-created forms available, peer-reviewed and ranked. Color wants everyone to be able to enjoy the power of smart contracts without worrying about their funds being misrouted or lost due to a coding error. Color Smart Contracts will be stored with their view data on the blockchain, viewable on any device. When the Color Platform becomes fully operational, service providers will be able to create smart contracts and smart-contract templates using the platform s integrated design tools. The form can then be routed to engines that assist users in deploying them to the various blockchains. Figure 4-3 Color Smart Contract Flow 17

18 4.3 Color Virtual Machine The Color Virtual Machine(CVM) will enable automatic generation of executable Smart Contracts based on human-interface input data. The Color Engine technology will convert this input data, such as the fields on a web form, into structured data fields. Unlike traditional programming, Color Engine is also capable of translating unstructured data (e.g., an images, signatures, or video) into structured formats, which can be processed by the Color Virtual Machine. The Color Virtual Machine will then process this data into an executable Smart Contract (e.g., an Ethereum contract entry). The combination of the Color Engine processing system and the Color Virtual Machine allows for the inclusion of information in the Smart Contract, without loss of fidelity of the original data. A large part of our token proceeds will go toward funding this effort. The goal has always been to set ourselves apart from other blockchains in ways that gave us a distinct advantage. Our team is already hard at work changing how we interact with blockchains. To develop on Ethereum, you have to learn Solidity and accept Remix s shortcomings as an IDE. This limits who can develop on blockchains. Though Solidity isn t a difficult language for the experienced programmer to learn, others may be disinclined to acquire a new language to experiment on the blockchain. Developers are used to full-fledged IDE s making their lives easier. For the most part, blockchain IDE s aren t there yet. The Color Virtual Machine will be accessible in a familiar language, which means the powerful IDE s for that language will also be available. The result is that non-technical users can create executable Smart Contracts without the need to conduct highly technical interface development, or to build application-specific contract-generation software. 18

19 Figure 4-4 Color Virtual Machine 19

20 5. The Color Platform The Color Platform is a blockchain platform that enables the easy creation of decentralized applications. It aims to be the incubator for a host of dapps, such as Color Media, Color Future, and Color Music. The Color Platform also provides various services to supercharge the dapp-creation process, among them the Color Development Kit, which enables even students to create dapps. Additionally, the Color Platform provides the back end for dapp development so ordinary users don t have to worry about the intricate details of the consensus algorithm or how to set up a decentralized server. The Color Platform is a dapp Store. 5.1 dapp Layer Figure 5-1 Color Platform Architecture The Color Platform plans to launch enterprise-level apps alongside the launch of Colorchain. Internally, the Color Team is developing Color Legal, Color Medical, and Color TV. Each dapp utilizes blockchain and cryptocurrencies to enhance existing features like curation rewards, betting, and immutable royalty distribution. Section 4 of this white paper goes into detail about the individual dapps. 20

21 5.2 Service Layer The Service Layer acts as a bridge between the Abstraction Layer and the dapp Layer. The service layer provides various toolkits for the dapp. Each layer has a distinct purpose but overall acts as the core of the Color Platform Color Gallery The Color Gallery will act as a hub for all the dapps on the Color Platform. Through the Color Gallery, users will have access to a broad array of decentralized applications and resources. The Color Gallery has an innate ranking system that enables users with the best reputations to rank higher. In the Color Gallery, new dapps, smart contracts, and newsfeed, as well as connectors to other distributed social-media platforms, can be aggregated. Imagine a portal that connects you to an ecosystem of applications, content creators, and news for a rich user experience everyone can enjoy. The best part? It s all decentralized. Aside from curating applications for you, the Color Platform aims to be the front page for your decentralized life. To do this, we need multiple feeds from not only apps available within the Color Platform but outside of it, too. For instance, a user might want to display 8 their Peepeth feeds as well as their Color Music Playlists and app recommendations. The goal is to keep the front page useful and allow full customization, with the default setting providing the most in-depth view of the applications available on the Color Platform. 5.3 Abstraction Layer The Internet works behind curtains. The average Internet user doesn t understand how data packets are routed from Sydney to Tokyo the Internet should just work. The Color Platform intends to make blockchain accessible to the average user by simplifying the complexities and separating the back end for developers. When launching a dapp, Color developers won t have to worry about orchestrating a smart contract or designing a decentralized storage system. 8 "Peepeth." Accessed 18 May (Peepeth is a decentralized microblogging website. Think a Twitter dapp.) 21

22 When dapp developers want to protect certain data types in their applications, the security service will allow for the encryption and decryption of critical data. The file service, meanwhile, will store dapp data in a distributed decentralized network storage system such as IPFS or BigchainDB. These services will work together to mitigate the difficulties of storing off-chain app logic in a decentralized way. 5.4 Roadmap Phase 1 of the Color Platform will focus on the continued development of dapps. A multitude of dapps will become available right after the token-generation event (TGE), a reflection of Color s commitment to building an ecosystem of valuable applications. The roadmap stipulates that once the platform has garnered enough users, we will switch to True Color, the main chain that will see our decentralized governance and platform in full swing. Paralleling dapp development, the Color Team is building out the platform with developer tools such as testnets, IDE s, smart-contract templates, documentation guides, and even boot camps to support the platform s adoption. A key piece of Color s development will come in the form of the powerful Color Virtual Machine (CVM), which will encompass advanced features and make developing dapps on Color easy even for those new to blockchain programming. The CVM, dapp-development tools, methodologies and IDE s will be released to the community to empower users to create decentralized applications and add value to the platform. Milestone 1: Color Platform MVP (September 2018) Base Color Platform with Service Layer and Colorchain Consensus(Beta) Test Network for Partners on Hyperledger and Ethereum MVP PUF(Physical Unclonable Function) Chip Utilization in Colorchain Prototype Hardware Wallet Basic Software Wallet Milestone 2: Color Platform 1.0 with Color Virtual Machine (April 2019) Color Platform 1.0(with Colorchain Test Network) CVM(Color Virtual Machine) and Single Language for Chaincode Service Aggregator(Colorful dapp Store) 22

23 Milestone 3: Development Environment for dapps (December 2019) Color Platform 2.0(with Colorchain Main Network) dapp Development Environment Colorchain Development Environment Documents and Tutorials Debugging, Simulation, and Testing Facilities Advanced Color Wallets(with Personal Data Vault) Milestone 4: Verification and Validation Toolkit (December 2020) Static and Dynamic Analysis of Chaincode Colorchain Composer with Templates 23

24 6. Mega dapps We are currently reliant on prototype-level dapps plagued by scalability issues. Color intends to revolutionize the dapp ecosystem by developing enterprise-level dapps. The Color Team has dedicated substantial resources to building mega dapps. There are more than 10 in development on the Color Platform. Color dapps are powered by the single unifying Color Coin (COL). In Ethereum, each dapps uses its own data format and cannot shared it with other dapps. Figure 6-1 Scalability of Colorchain dapp Color Reward Color Reward is a dapp that rewards users with Color Coin when they perform specific missions such as downloading an app, signing up for an ad, watching an advertisement, posting an SNS, or submitting a review. Rewards are not only a business model well suited to cryptocurrencies; they are highly profitable on their own. They directly assist in activating a variety of dapps on the Color Platform. Color Reward is based on an existing app, Good Coin & Dailytto, and aims to do a Reverse dapp. Good Coin & Dailytto launched two years ago and is already generating sales, with an operating margin of over 30%. In addition, Good Coin & Dailytto is achieving 40-50% profit, with sales of $45,000 24

25 per month. Color Reward seeks to supercharge the already profitable reward-app 9 ecosystem Color Career Color Career allows you to complete your resume and have your academic background, work experience, and other qualifications cross-validated with a "confirm" or "recommend" button. It prevents job seekers and employers from forging resumes or committing recruiting fraud. Recently, the Platia Team participated in the planning and development of Color Career. The team has participated in the career-management 10 business and is responsible for the EBS Bibliography of Self-Introduction Color Medical Color Medical keeps your medical records secure through blockchain technology. We can make a contribution to the medical industry by making it possible to obtain big data about medical care. When using personal medical data from universities, laboratories, etc., the individual who agrees to provide the data will receive compensation for it in Color Coins. In addition, Color Medical enables accurate and efficient medical treatment based on data recorded individually from birth to the present. As the number of users increases and more data is accumulated, Color Medical will lay the foundations of an artificial intelligence treatment platform. 9 GoodCoin - Apps on Google Play." Accessed 18 May Kim, Han-seul. EBS Bibliography of Self-Introduction, Daegu: Knowledge Plus, Naver Book. Web. 18 May

26 6.1.4 Color Home Color Home is a blockchain-based home-sharing platform. Airbnb has a market value of 11 $31B, a preemptive position among accommodation-sharing platforms, making it difficult for newcomers to penetrate the market. However, Airbnb requires a fee of 10%. If you apply blockchain technology to accommodation platforms, you can bypass middleman complexities and significantly lower the brokerage fees paid by guests and hosts, thus achieving a considerable competitive advantage over Airbnb. This means Color Home will have an edge over accommodation-sharing dapps led by engineers with less business experience. As the number of users increases, Color Home will be able to build a profit structure that links various travel- and lodging-related businesses Color TV Color TV is a global content-distribution platform focused on K-pop videos. The global content-distribution platforms used in various countries have two major problems: One is the lack of convenient payment methods for each country s currency; the other is that content consumers do not get any compensation. By using Color Coin as a payment and reward mechanism, Color TV makes it easy to purchase content in your app and donate to content creators. In addition, Color Coin contributed by consumers is distributed securely to copyright holders (suppliers), since the contract of copyright is concluded in advance through the smart platform. 11 "Airbnb closes $1 billion round at $31 billion valuation, profitable." 9 March 2017, Accessed 18 May

27 7. Pixel Program Figure 7-1 Pixel Program Process Fair distribution of tokens has always been a problem. The centralized hoarding of cryptocurrencies goes against the original decentralized philosophy of blockchain. Cryptocurrencies such as Bitcoin are treading the same path as fiat currency, in that wealth is gravitating toward the already rich while poverty-stricken members of society are continuously detached from wealth. The problem is most apparent in PoW (proof of work) cryptocurrencies, in that the initial miners reap the majority of the rewards. Similarly, in the PoS (proof of stake) model, large coin holders continue to be rewarded with coins. 27

28 This is why the Color Platform is focused on the fair distribution of tokens and the continued usage of tokens. The Pixel Program is a network-effect-driven issuance program that distributes pixels. Pixels are essentially a referral program turbocharged by the power of the blockchain. The Pixel Program is based on the gift economy from Charles Eisenstein s book Sacred Economics: Money, Gift, and Society in the Age of Transition. The Pixel Program aspires to promote a more peaceful world through a gift-giving economy: Another way to see the unexpected fruits that arise from the mystery is that when we live in the spirit of the gift, magic happens. Gift mentality is a kind of faith, a kind of surrender and that is a prerequisite for miracles to arise. From the Gift, we become capable of the impossible. 12 Charles Eisenstein, Sacred Economics Pixels will not only be sent to popular users but to those who need financial support such as the Red Cross, the World Health Organization, Amnesty International, and Doctors Without Borders. Additionally, pixels can be used to fund artistic projects or startups. One example is supporting independent game studios via pixels. While the core distribution of pixels is organic, the Color Team is developing various dapps to accelerate the distribution of pixels. 7.1 Pixel Distribution Pixels are a type of airdrop distributed to five wallet holders. They are awarded on a periodic basis. Starting from GMT 0:00, the pixels have a lifespan of 24 hours. Pixels in their original form do not have any value. The only way pixels have value is by sending them to other users. Pixels must be sent to another person s account within 24 hours or they will become void. Each user can send up to five pixels per week. Once a new user receives a pixel, the pixel will be converted into Color Coins. The received pixels will be converted to Color Coins on a weekly basis, on Saturday GMT 0:00. This conditional sharing mechanism aims to disincentivize hoarding, provide stable issuance, and increase overall user participation in the system. Most importantly, the Pixel Program promotes the active circulation of Color Coins. It will ultimately increase the circulation and value of Color Coins. 12 Charles Eisenstein. Sacred Economics: Money, Gift, and Society in the Age of Transition, ReadHowYouWant.com, Limited, Google Play Books. Web. 18 May

29 The equation for converting pixels into Color Coins is as follows: Every week there will be an airdrop issuance of 700,000 Color Coins. Every 52 weeks the total supply of Pixel Program airdrops will drop by 5%. The systematic decrease in pixels will continue for a span of 50 years. For the first 52 weeks, a total of 700,000 Color Coins will be issued weekly through pixels. The subsequent 52 weeks will see a total of 665,000 Color Coins issued weekly through pixels, as illustrated in the table below. Year Weekly (COL) 52 Weeks (COL) Accumulated (COL) Inflation Rate 0 500,000, ,000 36,400, ,400, % 2 665,000 34,580, ,980, % 3 631,750 32,851, ,831, % 4 600,163 31,208, ,039, % 5 570,154 29,648, ,687, % 6 541,647 28,165, ,853, % 7 514,564 26,757, ,610, % 8 488,836 25,419, ,029, % 9 464,394 24,148, ,178, % ,175 22,941, ,119, % ,116 21,794, ,913, % ,160 20,704, ,617, % ,252 19,669, ,286, % ,339 18,685, ,972, % ,372 17,751, ,723, % ,304 16,863, ,587, % ,089 16,020, ,608, % ,684 15,219, ,827, % ,050 14,458, ,286, % ,148 13,735, ,022, % ,940 13,048, ,071, % ,393 12,396, ,467, % ,473 11,776,621 1,004,244, % ,150 11,187,790 1,015,431, % ,392 10,628,400 1,026,060, % ,173 10,096,980 1,036,157, % ,464 9,592,131 1,045,749, % ,241 9,112,525 1,054,862, % ,479 8,656,899 1,063,518, % ,155 8,224,054 1,071,742, % ,247 7,812,851 1,079,555, % 29

30 32 142,735 7,422,208 1,086,978, % ,598 7,051,098 1,094,029, % ,818 6,698,543 1,100,727, % ,377 6,363,616 1,107,091, % ,258 6,045,435 1,113,136, % ,445 5,743,163 1,118,879, % ,923 5,456,005 1,124,335, % 39 99,677 5,183,205 1,129,519, % 40 94,693 4,924,045 1,134,443, % 41 89,959 4,677,842 1,139,120, % 42 85,461 4,443,950 1,143,564, % 43 81,188 4,221,753 1,147,786, % 44 77,128 4,010,665 1,151,797, % 45 73,272 3,810,132 1,155,607, % 46 69,608 3,619,625 1,159,227, % 47 66,128 3,438,644 1,162,665, % 48 62,821 3,266,712 1,165,932, % 49 59,680 3,103,376 1,169,035, % 50 56,696 2,948,207 1,171,984, % Table 7-1 Annual Amount of Color Coin Issuance NOTE: Numbers are not finalized. Pixels are distributed only to wallets that have gone through the KYC (know your customer) process in order to prevent abuse. Wallets that receive pixels do not have to go through the KYC process. The core idea of the Pixel Program is similar to MyCreditChain s Seed Program ( ). The MyCreditChain team has tested the Seed Program with over 100 employees for five years with great success. 30

31 8. Token Issuance 8.1 Token Generation Event Terms The Color Coin (COL) is a multiplatform cryptocurrency that will be used on every dapp across the Color Platform. The Color Coin plans to unite and create a synergy among dapps, instead of allowing disconnected dapps to slow down the platform. Color Coin will initially be used in Color Legal, Color Medical, and Color TV Total Token Supply 500,000,000 COL Token Generation Event Token Supply 300,000,000 COL KYC Requirements for Token Generation Event First Name, Last Name, Age (Above 18 Years Old), Gender, Nationality, and Residence Country Token Generation Event Unsold Tokens Commons Treasury Token Generation Event Accepted Currency Ethereum 31

32 8.2 Token Generation Event (TGE) Breakdown Figure 8-1 TGE Breakdown Token Generation Event (60%) In the token-generation event (TGE), a portion of the total 500,000,000 coins will be offered to participants as ERC20 tokens. The token-generation-event breakdown budget and usage will be discussed thoroughly in a future version of this white paper Commons Treasury (10%) The commons treasury contains a budget that will use the Color Platform s governance system to distribute funds to apps, projects, and other content for the platform. This budget will also fund future projects mentioned throughout this white paper Platform Reserve (10%) Development may encounter unforeseen circumstances in which another round of funding is needed. These tokens will be kept back if necessary Bounty and Partnerships (10%) Delegates from the Color Project such as the marketing team, dapp-development teams, and others will be given access to a fund used to award bounties. Bounty rewards may include a bonus for finding bugs in the platform (or dapps running on top of it), contests, etc. 32

33 8.2.5 Team and Advisors (10%) The companies and organizations that came together to make the Color Platform a reality took an enormous risk. These coins will be used to compensate those who made Color possible, which will incentivize further development on the Color Platform. 8.3 Token Generation Event Proceeds Platform Development (40%) The majority of token-generation-event proceeds will be invested in the development of the Color Platform. For the Color Platform to reach its true potential, Color Virtual Machine, Colorchain, Quality Assurance, Color Messenger, Color Wallet, and the Color Vault must all be developed dapp Development (20%) The Color Platform aims to develop 10 mega dapps. The Color Team is currently working with third-party developers to build dapps on the Color Platform. The bulk of dapp-development funds will go toward supporting internal and external dapp teams Operation Expense (15%) The Color Platform is a global platform with bases in Singapore and South Korea, with plans to open Color Research Centers in the United States, Russia, Belarus, and another country soon after. The operation expense will mostly be used to maintain and expand the office-management team Strategic Partnerships (15%) The Color Platform plans not only to internally develop dapps but exponentially expand its dapp library by partnering with various third parties. The Color Platform will build upon these strategic partnerships and distribute Color dapps to various markets Marketing and Promotions (10%) Marketing is the backbone of any product success. The Color Platform aims to continually invest in marketing Color Platform products. The Color Team intends to devote a separate team to each dapp and execute a cohesive marketing campaign. 33

34 9. Conclusion Color is a decentralized app and content platform for the people. The Color Platform is redesigning decentralized governance to enrich those who use the platform. The Colorchain consensus algorithm employs hybrid software/hardware that utilizes P2P transactions and a cryptographically secure PUF chip. Color endeavors to revolutionize the dapp ecosystem by developing enterprise-level dapps. Color dapps will be powered by a single unifying cryptocurrency, the Color Coin (COL). Color is developing a Color Development Kit (CDK) to accelerate the development of dapps. The Color Development Kit seeks to simplify the smart-contract-and-dapp-building environment. Think Color. 10. Disclaimer Please read this entire section carefully. If you are in any doubt as to the action you should take, please consult your legal, financial, tax, or other professional advisor(s). The white paper may be updated before the main Token Generation Event Legal Statement (a) This white paper ( white paper ) in its current form is circulated for general informational purposes only in relation to the Colorchain ( the Colorchain ) project as presently conceived and is subject to review and revision. Please note that this white paper is a work in progress, and the information in this white paper is current only as of the date on the cover hereof. Thereafter, the information, including information concerning ( Pax Datatech Pte Ltd., ) business operations and financial condition, may have changed. We reserve the right to update the white paper from time to time. (b) No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of the Color Coin (as defined below) and no payment is to be accepted on the basis of this white paper. Any sale and purchase of the Color Coin will be governed by a legally binding agreement, the details of which will be made available separately from this white paper. In the event of any inconsistencies between the above-mentioned agreement and this white paper, the former shall prevail. 34

35 (c) This white paper does not constitute or form part of any opinion on any advice to sell or any solicitation of any offer by the issuer/distributor/vendor of the Color Coin to purchase any Color Coin, nor shall it or any part of it, nor the fact of its presentation, form the basis of or be relied upon in connection with any contract or investment decision. (d) The Color Coins are not intended to constitute securities, units in a business trust, or units in a collective investment scheme, each as defined under the Securities and Futures Act (Cap. 289) of Singapore or its equivalent in any other jurisdiction. Accordingly, this white paper therefore does not, and is not intended to, constitute a prospectus, profile statement, or offer document of any sort and should not be construed as an offer of securities of any form, units in a business trust, units in a collective investment scheme, or any other form of investment, or a solicitation for any form of investment in any jurisdiction. (e) No Color Coin should be construed, interpreted, classified, or treated as enabling or according any opportunity to purchasers to participate in or receive profits, income, or other payments or returns arising from or in connection with the Color Platform, the Color Coin, or products, or to receive sums paid out of such profits, income, or other payments or returns. (f) This white paper or any part hereof may not be reproduced, distributed, or otherwise disseminated in any jurisdiction where offering coins/tokens in the manner set out in this white paper is regulated or prohibited. (g) No regulatory authority has reviewed, examined, or approved of any of the information set out in this white paper. No such action has been or will be taken in any jurisdiction. (h) Where you wish to purchase any Color Coin, the Color Coins are not to be construed, interpreted, classified, or treated as: (a) any kind of currency other than cryptocurrency; (b) debentures, stocks, or shares issued by any entity; (c) rights, options, or derivatives in respect to such debentures, stocks, or shares; (d) rights under a contract for differences or under any other contract with the purpose, or pretended purpose, to secure a profit or avoid a loss; or (e) units or derivatives in a collective investment scheme or business trust, or any other type of securities Restrictions on Distribution and Dissemination (a) The distribution or dissemination of this white paper or any part thereof may be prohibited or restricted by the laws or regulatory requirements of any jurisdiction. In 35

36 the case where any restriction applies, you are to inform yourself about, to obtain legal and other relevant advice on, and to observe any restrictions that are applicable to your possession of this white paper or such part thereof (as the case may be) at your own expense and without liability to the Colorchain or its representatives, agents, and related companies ( Affiliates ). (b) Persons to whom a copy of this white paper has been distributed or disseminated, provided access to, or who otherwise have the white paper in their possession shall not circulate it to any other persons, reproduce, or otherwise distribute this white paper or any information contained herein for any purpose whatsoever, nor permit or cause the same to occur Disclaimer of Liability (a) The Color Coin and related services provided by the Colorchain and its Affiliates are provided on an as is and as available basis. The Colorchain and its Affiliates do not grant any warranties or make any representation, express or implied or otherwise, as to the accessibility, quality, suitability, accuracy, adequacy, or completeness of the Color Coin or any related services provided by the Colorchain and its Affiliates, and expressly disclaim any liability for errors, delays, or omissions in, or for any action taken in reliance on, the Color Coin and related services provided by the Colorchain and its Affiliates. (b) The Colorchain and its Affiliates do not make or purport to make, and hereby disclaim, any representation, warranty, or undertaking in any form whatsoever to any entity or person, including any representation, warranty, or undertaking in relation to the truth, accuracy, and completeness of any of the information set out in this white paper. (c) To the maximum extent permitted by the applicable laws and regulations, the Colorchain and its Affiliates shall not be liable for any indirect, special, incidental, consequential, or other losses of any kind in tort, contract, or otherwise (including but not limited to loss of revenue, income, or profits and loss of use or data) arising out of or in connection with any acceptance of or reliance on this white paper or any part thereof by you Cautionary Note on Forward-Looking Statements (a) Certain information set forth in this white paper includes forward-looking information regarding the future of the project, future events, and projections. These 36