NKN Introduction

Friday, June 15, 2018
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A NEW KIND OF NETWORK NKN is a new kind of network connectivity protocol & ecosystem powered by blockchain for an open, decentralized, and shared Internet.

WHY Shortcomings of today’s Internet

The Missing Element NETWORK STORAGE COMPUTE $1.4 Trillion business PROOF OF STORAGE PROOF OF WORK PROOF OF RELAY/TRANSMIT e.g. IPFS/Filecoin, Sia,Storj e.g. BitCoin, Ethereum Missing

Problems with Today’s Internet Net Neutrality Inefficient Network Utilization Deficiency of today’s SDN The repeal of net neutrality policy Connectivity and bandwidth are not Traditional systems with centralized means that Internet Service Providers balanced between supply and demand. controllers can become a bottleneck can now block, throttle, and prioritize Ephemeral networking resource are lost for performance as well as a target of content and services as they wish. every second. coordinated malicious attacks. Network Fragmentation Privacy There are more than 12,000+ ISPs Without protections, network providers worldwide. Only top Tier 1 providers can extract information from your are able to share traffic given internet traffic such as a users location, preferred peering agreements. applications, and more.

WHAT Revolutionize networking and its business model

The Third Pillar of Blockchain By blockchainizing the network layer, NKN is providing the missing third pillar of internet infrastructure. Just as Ethereum has done for compute and Filecoin for storage, NKN will decentralize network connectivity and transmission.

Decentralized Connectivity Exchange NKN is the first decentralized network connectivity exchange to handle millions of micro payments for millions or even billions of users in real time.

Decentralized Token Defined Network NKN is an emerging decentralized software defined network (SDN) at global scale. It enables network operators and enterprises to dynamically route traffic according to real time performance metrics and cost.

HOW Scalable consensus, Proof of Relay, Tokenized connectivity

The four core elements of NKN technology There are 4 core elements of NKN's public blockchain infrastructure: Decentralized Data Transmission Network (DDTN), Proof of Relay (PoR), blockchain consensus and incentive distribution mechanism. Together, these elements provide a highly reliable, secure, and scalable network blockchain platform.

Inspirations from NKS “A NEW KIND OF SCIENCE” CELLULAR AUTOMATA - STEPHEN WOLFRAM Simple Microscopic Rules can Lead to Complex Behavior Network fully decentralized Wolfram’s 4 Classes of Behaviors to highlight Homogeneous and Parallel “the Edges of Chaos” for Self-organization Dynamic, Self-organized and Self-evolving Richness of computational Universe Simplicity of Rules The principle of computational equivalence The nature of computational irreducibility

Decentralized Data Transmission Network (DDTN) NKN’s maintains dynamic topology and routing based on Chord Distributed Hash Table for millions or even billions of nodes and clients, who can join and leave at any time. Unique NKN address is used to identify nodes, providing an overlay on top of TCP/IP.

Proof of Relay (PoR) PoR uses signature chain as a proof of relay at all nodes along the network route. This allows a level of secure data transmission that is not only verifiable but also impossible to tamper with or forge.

Highly scalable consensus NKN has designed a highly scalable consensus algorithm based on Cellular Automata concept and Ising model, and has applied it to next generation blockchain and peer-to-peer networking across millions of nodes.

Token/incentive distribution mechanism NKN’s economic model will provide token reward for participants who help relay traffic for other users. In addition, mining reward will also be proportional to the amount of data that participants help relay.

Action Plan Economic model, ecosystem, biz dev, and roadmap

Economic Model Similar to FileCoin/IPFS but on networking domain, NKN intend to tokenize the connectivity & data transmission capability. At genesis ● NKN Foundation: strategic investment in building the ecosystem ● Developers: founding team, community developers ● Purchasers: purchasers of NKN tokens Over 25 years ● Miners: get reward for traffic relay & block maintenance

NKN Ecosystem Devices NKN ISPs Network Fragmentation Infrastructure Applications Devices Selective Propagation

NKN Strategic Partners and Alliances In 2016, Facebook set up a new TIP (Telecom Infra Project) that brings together operators, infrastructure providers, system integrators, and other technology companies to work together to develop and deploy new technologies, changing the traditional way of building and deploying telecommunication network infrastructure. Members include Facebook, China Unicom, Deutsche Telekom, NTT Docomo, Orange (formerly France Telecom), SK Telecom, Vodafone and others. The ONF (Open Networking Foundation) was founded in 2011 by Deutsche Telekom, Facebook, Google, Microsoft, Verizon, and Yahoo!. As a non-profit organization that is still growing, ONF already has more than 140 members and their common mission is to accelerate the deployment of open SDN. ONF promotes open SDN and OpenFlow technologies and standards and promotes the development of products, services, applications, and customer and user markets. Cryptic Labs is an innovation research institute of Stanford University led by Whitfield Diffie, inventor of public key cryptography. It aims to solve basic security and cryptography problems to promote the development of blockchain technology. Cryptic Labs and NKN have signed a strategic cooperation agreement and Dr. Whitfield Diffie is the Project Academic Advisor. We will conduct more in-depth discussions, cooperation and research on solving the key technical difficulties of the project.

NKN Business Plan Target ISPs to kick start the Collaborate w/ devices for Cultivate developers to NKN network seamless UE drive traffic Value for ISP: Value for Devices: Value for Developer: Network •New source of revenue Network •Improved connectivity performance Network •Easy-to-use development kit •Extends existing network •More connection options / less •Access to a decentralized network with Fragmentation •Uses open source which lowers cost and Fragmentation dependence on any one network Fragmentation a global reach provides greater agility •Greater device control •New source of revenue •Aligns with Net Neutrality •Better overall user experience Value for NKN Value for NKN Value for NKN •Applications drive network traffic and •Leverage existing network deployments •Embedded device solutions lower increase network usage •ISPs are Infra Vendor influencers barrier to entry and increase adoption rate Selective Selective Selective Propagation Propagation Propagation Disclaimer: these are application examples for illustration only, not under discussion or agreement

NKN Roadmap

Applications How can we use NKN with some examples

NKN is more than a “New Internet” Net consumer Consumer becomes Net producer of of connectivity producer connectivity Truly open, any device Anyone with extra network New and existing ISPs upgrade can join and use capacity can share and build out new infra

Application Vision #1: Want to send files faster, you can ask neighbors for help Jim needs to send a large video to his colleague before 5 o'clock, but his Internet connection is weak and taking a long time to transfer. Greg is nearby and has a fast and reliable network connection. Both Jim and Greg open the NKN blockchain application on their mobile. Jim connects to Greg's phone and uses Greg's high-quality network connection to quickly and easily transfer the file via the NKN network. At the same time, Greg also gains rewards for sharing his idle network resources.

Application Vision #2: Internet service providers gain new business revenue Acme is a small rural Internet service provider in the Midwestern United States. With a limited number of customers and ever- increasing costs, Acme needs to find new sources of income to remain profitable. Acme chooses to share its network connectivity with NKN users and earns additional incentives for data transmitted.

Application Vision # 3: dApps will enable messaging without servers Jay has developed a great instant messaging App. However, Jay wants to avoid the high cost of hosting his application on a centralized messaging server in the cloud. Therefore, Jay chooses to use NKN's dApp network toolkit and p2p network to rapidly create an application that no longer needs a central server. Jay’s app will pay tokens to relay traffic across NKN network. In addition, Jay’s app can also receive incentive tokens if the app helps relay traffic for other clients and applications.

FREE THE BITS, REBUILD THE INTERNET WE ALWAYS WANTED. STORAGE [email protected] https://twitter.com/NKN_ORG https://t.me/nknorg