Internet Node Token Whitepaper

Sunday, June 17, 2018
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Make a different world INT chain Project White Paper Version 2.0 2018.04

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things INT: An economy driven solution to improve the device interconnection of Internet of Things Abstract: INT will build a framework for machines solutions, and through experiments and projects, and devices, and create a token, which will be used to community support as well as confirmatory facilitate the resource exchange between nodes and development, to make the INT a viable solution. heterogeneous links (different nodes may create Through experimental evidence, prototypes and data, independent internal links). For example, a node may as well as responses to community suggestions and make a request and pay corresponding tokens to request comments, the content of this paper will be revised other nodes (or links) to provide power, network, data, gradually in the future. service and other possible resources. In addition, 1.2 Background introduction through zero knowledge proof (specific improvement Blockchain technology has proved its value in as necessary), optional masking may be conducted to finance and other fields, but we believe its best usage is protect user privacy and improve security. in the field of IoT. Highly distributed IoT field is especially suitable for blockchain applications. 1 Preface At present, there are several issues with current The Internet of things has developed rapidly in the development of IoT: last a few years, however, concerns have been raised (1) Lack of standard for the standards of communication and data exchanges The IoT vendors are very diversified, each holding among manufacturers, the interests of manufacturers, their own data silos, so the information flow within the user privacy, as well as fragmented model constraint on systems is everything but smooth, while cross-vendor the overall IoT development. access and liquidation is hard to implement. It is expected that more than 25 billion nodes will (2) Inefficiency be connected on the internet in year 2020, however, if the interconnection within the whole network is not Under the current IoT ecosystem, all the devices smooth, the fragmented Internet of Things would not are connected through central cloud server fully realize value of the nodes. authentication. The connection between the devices is handled through the central servers, thus the efficiency Without defining a common set of protocol cannot really meet the real-time needs of the IoT. standards, seeking support from individual manufacturers is but inefficient and costly. Through (3) Cost decentralized and economy driven methods, it is a new The infrastructure and maintenance cost of way to make standards for device interconnection. centralized systems, large servers, cloud service and network devices is very high. While the number of IoT 1.1 Project objectives devices increases to range of tens of billions, the INT is the acronym for In ternetNode Token. INT additional communication cost also rises exponentially, attempts to build a scheme that allows data and which will make the IoT solution very expensive. resources to flow freely within the network and to (4) Security risks ensure user privacy in untrusted and decentralized machine federations. Centralized network has very high security requirements for central servers, and the security This paper is not a complete and detailed vulnerabilities of IoT nodes will affect the whole specification, just a preview of the development intent network. of the whole design, which attempts to propose 1

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things (5) Privacy protection 2.1 Software defined resources Existing centralized networks can collect the There is a fundamental difference between user's information at will, and after the user realizes the hardware development and software development. value of their data, he or she may not be willing to just Because of cost and design constraints, the hardware accept the situation. Because the IoT systems have resources are generally scarce, so when we want to more private information, including health information, add additional costs and provide additional resources in vehicle driving information etc., the centralized the hardware, it is relatively hard (for example, to network cannot be trusted to store that. provide additional computing power and extra external power supply). 2 Project overview So the problem we want to solve is not to provide The INT project stems from the Apache Mynewt additional resources, but if the hardware itself is a WIFI, community practice. or a temperature collector, when it needs to provide its The team initially tried to define hardware through own value to other services or hardware, the software to reduce the complexity of hardware corresponding charging strategy can be proposed. And development. the resources we are involved in, according to different devices, are abstracted from the real world, mapping However, even if we define the abstraction layer existing entities (whether hardware or data) to provide of the system, how to form a unified ecosystem consistent invocation in the form of services. between individual nodes is still a challenge. Later, through the team brainstorming, the team considers an There is no way to add additional functionality economic way to drive the integration of different to existing devices, but in a relatively hardware systems. ecosystem, perhaps we can allow the various devices to open their own functions, so as to gain more revenue INT is a kind of blockchain application platform through the economic-driven. Because the nature of the and interactive standard which is object-oriented IoT standard monopoly is profit, and the tokens themselves and based on economic driving mode. The parallel can provide profit, and because of the volatility of the chain structure is used to form a distributed network price of tokens, it may generate additional economic between devices, and a consensus algorithm is adopted benefits. Relative income is not less than absolute profit. to guarantee the legal trustworthiness of the transaction between devices. At the same time, different kinds of So we're going to try a new model that drives the devices can be connected to different parallel chains to hardware to open itself up by sharing benefits, to get avoid the explosive growth of the total ledger. profits decentrally, rather than through a centralized monopoly. The existence of INT can greatly reduce the development difficulty of the application of the 2.2 Monetization of resources blockchain of IoT. It can relay different IoT, form edge In our definition, we need a steady measurement, computing networks, effectively circulate resources, and we do not use INT in the settlement of the IoT, but and accelerate the progress of IoT popularization. INT use GAS mechanism, which is similar to ETH. Because is designed as a scalable heterogeneous chain, devices resource settlement needs a relatively stable providing a relay chain platform on which a large measurement, the resources will be settled in the number of verifiable, globally consistent and consensus following ways: data structures can be built. In other words, on the basis Price tag type: pay according to the marked price. of ensuring overall security and cross-chain trust, INT is committed to making the IoT blockchain into a Metering type: Pay according to the timeline, or networking infrastructure like TCP/IP, which other dimensions of subsection. imperceptibly affects people's lives. Competitive bidding type: Bid on all devices that In order to achieve these objectives, we must do the need to invoke the resources. following: 2

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things CPP (Cost Per Purchase): Pay based on the end use algorithm, by passing the user intent (intent) to other of the resource. hardware, without the need to pass the user symbol, Because of the existence of smart contracts, many which not only can effectively protect the user's privacy, traditional architectures which cannot be completed in but also can resolve concerns about the loss of users. a way that can be taken here, and then implement Our innovative BKP algorithm model uses coordination and interaction, the specific way can be unsupervised learning or strategy model and clustering agreed on the chain in the form of a smart contract. behavior, through zero-knowledge proof algorithm to implement user desensitization. 2.3 Resource transaction configuration Related nodes shall purchase resources in a semi- This allows for the sharing of resources based on automatic manner through a custom policy. intent between devices, and does not require users to share data, which can effectively address user privacy 2.4 Privacy protection principle problem. There is also a particularly important problem in 2.5 Security the current IoT: User privacy. The user privacy protection of IoT is extremely fragile. It is easy to Is the device likely to kill like a mechanical bee in predict user behavior because of the large amount of a magic mirror (Black Mirror)? This may not data collected by the sensor. Moreover, for the current necessarily be the case, but it must not be a rarity to architecture model, even if use the Open ID to drive a automatic car to hit a person into death. The implement user desensitization, as long as analyze security of the future IoT is the most important, and the multiple dimensions, it is easy to reverse deduce the INT will try to filter the intent through the innovative identity of the user. To solve this problem, we try to BPK algorithm, trying to ensure the user's security. adopt our innovative Behavior Private Key (BPK) algorithm model based on zero-knowledge proof 3 System architecture Figure 1 INT system architecture 3

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things 4 Service 8 Consensus Each machine node can shelve corresponding As we known, in consensus algorithm, traditional SKU based on their own wishes, which is to be suitable DPoS consensus algorithms have started evolving for different bidding, sales, distribution strategy, towards the direction of centralization while deviating authority strategy, forming self-discovery of metadata. from blockchain’s original intention of decentraliza- This layer is a definition of software services and an tion. Therefore, we pragmatically create a new consen- abstraction of hardware services. sus algorithm called Double Chain Consensus Algo- rithm on the base of deep understanding into the core 5 Trading market of DPoS consensus algorithm and on the basis of INT chain’s real application scenarios as well as current A. Machine automatic matching development status of IoT devices. The basic architec- Through smart contracts and semi dynamic ture is shown in the following diagram: configuration, for basic services, such as network, Wherein, the “thearchy chain” made up of the power, calculation, self-discovery, implement plug- servers provided by device manufacturer, community and-play access. leader and ecological enterprise is the core of the entire B. Developer API trading market architecture. The “thearchy chain” consists of “thear- For data and services, a trading system is formed chy nodes” which have come into being through mass in the cloud. election by the method of community poll. Eventually 2n+1 thearchy nodes are produced, and their address 6 INT token information is written into the thearchy chain’s genesis block. INT token will take a two-tier structure. The first The primary function of “thearchy chain” is to tier is the traditional token structure that participates in perform block-generation operation using the exchange transactions and can be understood as an INT dBFT/DPoS consensus algorithm and coordinate with share. The second tier uses the first tier token structure, the work of nodes on the ordinary chains at lower launches a timed auction and float aiming at fiat money, layers. Specific use of whichever consensus algorithm mainly to solve the problem of token volatility, reduce is mainly dependent on the quantity of nodes on the volatility which is easy billing. thearchy chain. We are using the dBFT algorithm in the early phase of the project. 7 Machine node Following TXs will be retained in the thearchy A node may be a traditional PC server node, or a chain’s blocks: 1. Node grouping TX; 2. Node work STM32 node that is configured tailoring according to reporting TX, and; 3. Identity authenticating TX. machine performance. IoT is a typical edge fog Among them, the identity authenticating TX is a key to computing scenario (Fog Computing). In fact, the continuous operation of “thearchy chain”. The identifi- existing blockchain network is not suitable for IoT. In cation information with signatures of n+1 thearchies such a scalable network with high computational power, will appear on the chain. Through this mechanism, the how to share computational power, in fact, the core is system can approve new “thearchy nodes” to join in also economic-driven, so we need to define an INT the “thearchy chain” by vote or kick out manufacturers such a solution. that are no longer involved and thearchy nodes that do not work as normal by vote. 4

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things Figure 2: Architecture of Consensus Mechanism Algorithm Wherein, the “thearchy chain” made up of the servers In addition to the “thearchy chain”, the entire archi- provided by device manufacturer, community leader and tecture will consist of ordinary chains which are made ecological enterprise is the core of the entire architecture. up of IoT device nodes of various models produced by The “thearchy chain” consists of “thearchy nodes” which numerous different manufacturers, and to which all have come into being through mass election by the nodes on the “thearchy chain” will also belong. method of community poll. Eventually 2n+1 thearchy The nodes on ordinary chains will continually read nodes are produced, and their address information is the information on the “thearchy chain” during opera- written into the thearchy chain’s genesis block. tion in order to work with high efficiency. The infor- The primary function of “thearchy chain” is to mation mainly includes: perform block-generation operation using the dBFT/D- 1. Determine which node the next block will be PoS consensus algorithm and coordinate with the work generated according to the “thearchy chain” block of nodes on the ordinary chains at lower layers. Specific generation information (Blocks on ordinary chains are use of whichever consensus algorithm is mainly depen- also generated from thearchy nodes); dent on the quantity of nodes on the thearchy chain. We are using the dBFT algorithm in the early phase of the 2. On the basis of reading the “thearchy chain” project. information, determine the group to which the current nodes belong and then determine the block data that Following TXs will be retained in the thearchy chain's will need to be saved as well as complete the data blocks: 1. Node grouping TX 2. Node work reporting fragmentation; TX, and; 3. Identity authenticating TX. Among them, the identity authenticating TX is a key to continuous opera- 3. Read the legal manufacturers information of tion of “thearchy chain”. The identification information “thearchy chain” and decide the data information with signatures of n+1 thearchies will appear on the reported on other devices is legitimate or not; chain. Through this mechanism, the system can approve 4. Report the operation information of ordinary new “thearchy nodes” to join in the “thearchy chain” by nodes. vote or kick out manufacturers that are no longer involved and thearchy nodes that do not work as normal by vote. 5

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things By this design, there remain only the IoT data fragmentation of ordinary chains and reducing the collecting TX and the scalable smart contract operating performance storage capacity requirements for IoT TX among the main TXs of ordinary chains, while the devices becoming blockchain nodes. consensus algorithm logic and device/data legitimacy judgment logic are both transferred up to the thearchy 8.1 Consensus Mechanism Process chain, thereby boosting the stability and celerity of block The operational process of INTchain consensus generation by ordinary chains while implementing data mechanism is shown as below: Figure 3: Operational Process of Consensus Mechanism The operational procedure of the whole process is 5. On the basis of their own grouping information, shown as below: IOT devices can delete ordinary chain blocks that are 1. Thearchy nodes generate blocks through dBFT alien to their own group; consensus algorithm; 6. IoT devices deliver the running log to the thear - 2. The normal nodes running on the server where chy chain through node work report TX in order to thearchy nodes are located generate blocks after the obtain salary income; thearchy chain generates blocks; 7. IoT devices send ordinary TX to each other to 3. The ordinary nodes running on IoT devices read call functions or send collected data; the grouping information on the thearchy chain to deter- 8. What is displayed, by default, on the INT brows- mine the group to which they belong; IoT devices that er is the block information about the ordinary chain; access the network for the first time are also required to 9. The INT wallet can submit the ordinary chain register nodes on the thearchy chain; TX to any of the IoT device nodes or to any ordinary 4. On the basis of their own grouping information, chain node running on thearchy nodes. Standard TX ordinary nodes on IoT devices select a thearchy node to reproduced similarly by such means also supports maintain connection for updating blocks and delivering anonymous submission by using broadcast; TX; Such design can boost TX's confirmation speed and 10. On a regular basis, the thearchy chain creates reduce the bandwidth consumption brought about with device grouping TX according to the node information TX broadcasting of IoT in narrow-band edge network. of registered IoT devices. 6

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things 8.2 Calculation Separated from Bookkeep- 3. INT would disclose a salary calculation ing "Mining Mechanism" algorithm, into which the input is the records of work- ing status of all devices within the current period After using the double-chain formulaic algorithm, whereas from which the output is the payroll of each no IoT device would have the chance to generate device. Plus, INT would publicize the payroll within blocks, so there is no way to earn rewards by generating the publicity period, whereafter the INT foundation blocks. Although, from the perspective of INT's would issue INT token on the basis of this payroll. In economic model design, IoT devices can earn incomes addition to the calculation of payroll, this salary calcu- by providing functions and reporting key data, we lation algorithm can also be iteratively optimized design a set of incentive mechanism to reward IoT during each period, thereby identifying any data fraud; devices (nodes) at normal work in order that the entire blockchain network can operate more healthily. From This set of mechanism also addresses the issue that the perspective of implementation, the current scheme economic parameters of traditional blockchains are not being adopted for INT is the wage-paying mechanism easily modified once set. Moreover, the openness and “contingent on device’s working conditions”, but we fairness of core mechanism of blockchain are give an umbrella name to such mechanism as calcula- safeguarded through the open algorithm and its input. tion separated from bookkeeping mechanism in order to make a distinction between it and traditional incen- 8.3 Extending Business Logic Using tives which are based on rewards for block generation. Smart Contract The content of operational core of this mechanism is INTChain delivers a basic capacity, namely differ- shown as below: ent device manufacturers are allowed to extend the smart contract operating on their own subchain. But 1. On a regular basis, IoT devices pack their own considering the hardware capacity of IoT devices, working status into "node work report TX” to submit to traditional virtual machine-based methods are not the thearchy chain. The working status includes "Device employed to extend smart contract. We call such Startup", "Device Shutdown", "Device has completed capacity of extending smart contract TX of blockchain xxx work" and other information, and extension is as INT Contract. supported. The principle of INT Contract bears relation to the 2. Within a time period, working status of all devices implementation architecture of INT chain. The imple- in the entire INT network encompassed on the thearchy mentation architecture of INT chain is shown as chain is recorded; below: Figure 4: The implementation structure of INT Chain 7

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things Each INT subchain is developed based on the same provide reliable executive source data for INT smart chain SDK. But different subchains are allowed to contract at software and hardware levels respectively. extend their own INT Contract at the TX execution 8.5 Cross-Chain Interoperability Protocol engine layer. Traditional development language (JavaScript), instead of specialized smart contract VM, The cross-chain interoperability protocol of the INT is used to extend INT Contract and can run directly on relay-chain will fall into two parts: "cross-chain asset the OS of IoT, featuring high executive performance, exchange protocol" and "cross-chain distributed trans- low resource consumption and applicability for the real action protocol". execution environment of IoT devices. Moreover, the (1) Cross-Chain Asset Exchange Protocol learning cost and engineering cost of INT Contract are Extended over the double-chain atomic asset lowered with effectiveness with the use of regular exchange protocol of INT chain1.0, this allows multi- development languages. ple participants to exchange assets on different block- 8.4 Countermeasures against Puzzles on chains and guarantees complete success or failure of Source Tracing along the Public Chain all steps throughout the trading process. To implement this function, the INT Contract feature needs to be Logically, it is impossible for matters in the physi- exploited to create a contractual account for each cal world to be chained, so a numeric ID is required to participant. For any other blockchain incompatible be fabricated for each “matter”, in such form as with INT Contract, it can remain compatible with number or QR code. But the correspondence between INT’s cross-chain protocols as long as a simple smart such ID and the “matter” hinges on human factors, contract feature can be delivered. which allows for considerable subjectivity and scope for counterfeit. The reliability of tracing the source (2) Cross-Chain Distributed Transaction Protocol along blockchain remains deficient. Cross-chain distributed transaction means multiple Take Ethereum as an example. The smart contract steps of an entire transaction whose consistency is deployed on Ethereum is originally unable to access secured are implemented on separate blockchains. This networks beyond blockchain, even impossible to call is an extension to cross-chain asset exchange, whereby the Restful API directly in similar ways applications the behavior of asset exchange is extended into an are developed. Hence, data sources in the physical arbitrary behavior. In layman's terms, INT’s relay world remain significantly inaccessible to blockchain. chain makes cross-chain smart contract possible. A This requires an automated tool that can provide single smart contract can execute different parts across reliable data sources for smart contract of blockchain. multiple different blockchains, which are either Oraclize Company promotes the Oracle tool which completely executed or return to the status prior to ensures data are not counterfeited to a certain degree execution. through verification of TSL Notary. 8.6 Packaging Methods of Blocks The above description reveals that the core strategy Different chains may take either form of chains to cope with the puzzle in source-tracing application is generating blocks at high frequency and low time to minimize human participation and economic consumption or highly densified blocks. So, different motives for counterfeit throughout the process from packaging methods for enclosed blocks are adopted for collection to processing to transmission-onto-chain of each parallel chain, and consensus is integrated via the key source data of “matter”. relay chain. The consensus integration part will be The shell of INT chain will develop supporting tools billed by main nodes. similar to Oracle for the smart contract module consti- tuted by Software Fetch and Hardware Fetch to 8

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things car owners can exploit blockchain to trace IoT devices 8.7 Network Design (e.g. annual inspection of vehicle, automatic car insur- IoT is such an extremely special network that there is ance tracing, etc.) Automatic traveling data exchange enormously great discrepancy between the requirements between vehicles. For instance, the source map indicat- for accuracy of delaying different protocols. So we will ing traffic congestion transmits data for car owners to adopt the MQTT method in respect of network architec- keep track of the real-time traffic condition and imple- ture and accomplish specific implementation and proto- ment automatic drive in a safer manner, automated col amelioration for MQTT to fulfill the demands for navigation of automobiles, roadside service, etc.; blockchain. (3)Intelligent finance: In combination with the impossibility of falsification 9 Application Scenarios of INT and and authentic right of data implemented for distributed INT DAPP data of blockchain, the authenticity of data about finan- With the growth of IoT devices at geometrical cial agencies is secured, issues such as letter of credit, progression as well as the improvement in the level of corporate obligations and bonds, trading platforms, intelligence of machines, there will be an increasing giving quotation, contract fraud and order fraud can be number of automatically running IoT DAPPs to be avoided, and traceability in financially safe network is installed on smart devices and real-time, credible enhanced; automatic data exchange and automatic transaction will (4)Intelligent equipment: be implemented between machines and between human Sensors are utilized to trace the conditions of bridges, and machine via the distributed IoT DAPPs. roads and power grids, even to help monitor natural INT will implement data transmission featuring disasters in remote areas, prevent against massive direct interconnection between nodes within IoT. IoT mountain conflagrations, disease and pest damages and solutions would not require importing large-sized data other grave catastrophes, implement smart urban centers for data synchronization, management and management, prognosticate urban greening and pollu- control. All operations including the sending of data tion conditions, and perform maintenance to share collection instructions and software update can be trans- high-efficiency urbanized management. mitted via the network of blockchain. Some typical Different IoTs are relayed to circulate resources with application scenarios of INT are: efficiency while significantly lowering the access (1)Intelligent manufacturing: threshold on IoT, shortening the cycle of development Product transport, for instance, in which the products and reducing risks in application development. It will can be traced, secured and delivered on schedule even be extensively applied in respect of intelligent power though cargoes are transferred through multiple material grid, intelligent logistics, smart home, smart advertising flows; for instance, the data about production, inventory board, smart city, military appliances, etc. In intelligent management, sales volume of products and inventory medical treatment, partnership has been achieved with are all recorded in order to be shared between the INT’L Medicine, a well-known leading domestic listed business and production departments, intensify punctual enterprise in medical circulation. Having successfully production and boost efficiency of operation. Equip- addressed such issues as resource waste in drug packag- ment and systems in manufacturing are becoming ing, environmental pollution and difficulty in ensuring increasingly intelligent, thereby stepping progressively drug safety during transportation, the INT technology into a completely virtualized world; and RSPS carried system can not only provide real-time location information but also ensure safety protection (2)Intelligent automobile: for whole-process traceable drug circulation, channel The automatically running DAPPs in IoT enable end-to-end business data and boost the efficiency of vehicles to change into smart application terminals, and drug circulation. 9

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things 10 Roadmap degree of post-doctoral research at Chinese Academy of Sciences (CAS). He is a young expert in the Next INT aims to address the issue of value transfer in Generation (5G) Wireless Communication and IoT fragmented and dispersed IoT markets. It will be a brand technology, and he now majors in the applications of new architectural platform at the bottom layer of IoT “Blockchain - IoT” technological convergence. He blockchain featuring decentralization, openness, open took charge of one of “863” Projects. He has published source and high efficiency. In the ecosystem, different multiple papers and applied for several technology participants can receive the profit at right cost and share patents. it with each other. There exists the bonus of fast devel- opment in both domains of blockchain and IoT. Chen Guanghui As a transparent and open system, INT is expected to Chief Development Engineer of INT DAPP. Mr. promote the development of IoT, without appealing to Chen graduated from Fudan University, majored in unification of standards, to drive the interconnection of Computer Software. He worked in EastCOM and different standards by economic means and to form an Huawei successively. He has rich experience in effective decentralized market. communication underlying technologies, system archi- tecture, R&D project management, software develop- In the first step of the solution, we will release the ment, mobile Internet and other fields. From 1993 to INTchain1.0 by the first quarter of 2018 and, on this 2005, he worked as R&D engineer in the CDMA Switch base, accomplish code reconstitution and stratification Development Department, Head of the Testing Depart- to implement the double chain architecture and create a ment and Vice General Manager in EastCOM. He new version INTchain 2.0 to be released by the second joined Huawei in 2005 and served as Head of the Enter- quarter for commercial operation among multi- tudinous prise Communications MKT Department and Head of cooperative clients. the Railway Signal Architecture Design Department. In In the second part, we will build the INT ecosystem, 2012, he started his own business in the direction for the integrate upstream and downstream enterprises and mobile phone taxi service market. scientific research enterprises in IoT, create open Wang Hongwei hardware platforms, and apply INT in IoT big data, IoT supply chain, finance, intelligent manufacturing and Master from Sichuan University, 10 years of experi- more industrial domains. ence in technology research in IoT; early platform architect for Huochebang; a leader for the first industri- al routing AR531 device in Huawei; inventor of the 11 INT team High-speed Railway Signal 3oo3 Combined Default - The INT team core members include the first batch Security System and Smart Packaging. of IoT development experts globally, developers with Michael Zhang vast experience in communication and large systems, MBA from National University of Singapore. Bach- architects for operating systems, and engineers in the elor from Fudan University. Mr. Zhang has over 20 financial field. The R&D team has a deep understand - years of experience in IT management and operation in ing and research and development experience in the Asia. He is a leading expert in cross-border trade and fields of IoT、 signal transmission, supply chain management. security system design, blockchain, bottom layer of Yin Xiangyu bitcoin, Ethereum, automated value exchanging, machine learning, the big data technology and so on Head of INT China. A diehard fan for the IoT. One of the earliest IoT research and development practi- 11.1 Core Team Members tioners in China, entrepreneur of successive Internet Xiang Ruofei startups and Apache Mynewt code contributor. Mr. Yin Chief Architect of INTchain. Dr. Xiang holds the has participated in the research and development, 10

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things application and promotion of wearable remote 11.2 Advisors to the Team single-soldier life test instrument based on GPRS, depth Kong Huawei Head of Shanghai Sub-institute of the of anesthesia tester, early diabetic neuropathy tester and Institute of Computing Technology, Chinese Academy the first WeChat-based IoT device in China - Welomo. of Sciences and Chief Scientist of Venture Capital Feier Chen Investment of Zhangjiang Hi-Tech. INT Chief Business Officer, She graduated from Tan Lei Blockchain and big data mining expert, the Beijing Film Academy and has extensive practi- promoter of North America Blockchain Association cal experience in the cross-border integration of real (NABA), 13 years of service in Microsoft Headquar- estate, finance, Internet and government network. ters, Master from Duke University, author of books like Blockchain 2.0. Zhang Bo Mr. Zhang holds a Mater’s Degree from Huazhong Ramble Chairman of North America Blockchain University of Science and Technology. He has 12 years Association (NABA), Chief Architect for Guiyang of experience in stystem architecture; a leader for Blockchain Financial Regulation Sandbox, Chairman DDOS protective devices in H3C; head of the of Guiyang Blockchain Finance Incubator, Founder of High-speed Railway Signal double 2-vote-2 Security GooCoin and SWFT. Mechanism in Huawei; architect for the first industrial Roy Li Celebrated network security and IoT expert. routing software in Huawei and metro system ATP& Zhao Yafu Director of Risk Management of Guang- ATO system. dong Zhuo Tai Ci Capital Ltd. Zhang Hangjun Liu Jinhua CPA, CTA, Co-partner of Shandong Graduated from Hangzhou Dianzi University, 11 Shixin Certified Public Accounts Firm, accounting and years of experience in hardware development; in charge tax consultant for several listed companies, former of R&D of 10+ EMC testing devices; head of the first of-ficial of Shandong Provincial State Taxation Bureau. industrial routing hardware in Huawei, in charge of Mo Lei Partner of Guangdong ETR Law Firm. R&D of vehicle-mounted, CBI and rail-side signal system hardware of high-speed railway, metro system 11.3 INT Angel Investment Team and tramcars. Wang Dou Founding partner of Silicon Valley Geek Xu Chun Capital and Link Capital Master from China Jiliang University. Worked Liang Junzhang Co-founder of Kinzon Capital. successively in Huawei and CETC, an expert in software system engineering and highly reliable and Li Jiaxuan Co-founder of Future Fund. secure system design. When he worked in Huawei, Mr. Huang Zhiyi Co-founder of Sino-US Venture Capi- Xu was in charge of design and development of tal. high-speed railway signal systems and the RBC system; Luo Wen Chairman of iwali Technology. when he worked in the IoT Research Institute of the Zhou You Director of Hangzhou Shunwang Tech- CETC, he was in charge of the project of Smart Zhili in nology Co Ltd, Chairman of Fuyun Technology. Huzhou and other projects and he was the technology chief in charge of top-layer planning, network deisgn, Lin Shirong Founder of Enhou Investment. applications, deployment and development of hardware Zheng Zhiping Founder of aizhan.com. terminals, etc. Lin Xirong Co-founder of ITB CAPITAL. Chen Yuqi School of Mathematics of Sun Yat-sen University, 11.4 Team achievement former development engineer of the distributed system · China's first generation remote single soldier life of SouFun.com and contributor Google Brillo code. status detection wearable clothing based on GPRS 11

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things · China's first depth of anesthesia tester concept the alliance blockchain. Some INT will be converted products into other forms of equity assets for project operation if · PHS products, communication platform and necessary. communication protocol system 12.3 Financial management explanation · The first CDMA switch in China Financial management of the INT Foundation follows the principle of comprehensive management, · HUAWEI's first industrial routing hardware, frugality and practical results orientation. INT Founda- AR531 tion assets management is included in the all-round · High speed rail signal 3oo3 combination fault and budget management and financial operating budgets are safety system made based on actual operational conditions. Annual · H3C 100 G class DDOS protective device financial operating budget shall be submitted to the Autonomous Committee for review; monthly financial · HUAWEI high speed rail signal Double 2-vote-2 budget shall be re-viewed by the Execution Committee. 2security system The Financial Management Center is responsible for · Chinese subway ATP&ATO system preparation and execution of reports and make disclo- · Interbank settlement blockchain application sure on a quarterly basis. INT Foundation will engage system third-party auditing to supervise financial operation of the project, audit capital and prepare auditor’s reports · In 2016, the test of a vehicle connecting blockchain which will be announced in annual information disclo- application “Automatic Traffic Interchange System” sure. Financial statement disclosure channel: https://in- based on ETH was successful. tchain.io/ 12.4 Progress Disclosure 12 INT Foundation The promotion team of the INT project commits INT Foundation is a non-profit organization which is makes a commitment to manage crow-funding encrypt- established for supporting IoT application projects ed digital assets in the principle of dedication, integrity based on INT platform. and prudence and diligence. In order to protect inves- 12.1 The Governance of INT Fund Com- tors’ interests, strengthen management and efficient use mittee of INT and promote healthy development of the INT project, the information disclosure system is adopted INT Fund Alliance Committee adopts the alliance for the INT project. INT hopes to standardize digital rotating chairmanship, in which a chairperson-in-office asset management, improve self-discipline in the block- will be elected by voting every other year and hold chain industry and enhance transparency of manage- his/her office for only one tenure. The Committee has ment of encrypted digital assets on blockchain by several management centers, including Blockchain setting itself as an example to safeguard long-term Technology Development Center, Blockchain Commer- development of the blockchain industry. cialization Center, Financial Management Center, Risk Control and Management Center and General Affairs INT will disclose a quarterly report within two Management Center, which give guidance for work in months as of completion of each quarter and prepare their respective business departments. and disclose an annual report within three months as of the date of each fiscal year (i.e. December 31 every 12.2 Capital Source and Management year).Contents of these reports include but not limited The capital used for maintaining the operation of the to technology development milestones and progress of INT project mainly originates from batch-based venture the INT project, application development milestones investment into underlying assets INT token as well as and progress, digital asset management, duty perfor- membership dues, donations, etc. paid by members of mance of the team, financial conditions, etc. 12

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things INT will disclose important temporary information 13 Disclaimer of the INT project in a real-time manner on an irregular This document is meant only for conveying infor- basis, including but not limited to major cooperations, mation and does not constitute an opinion on the trading any change to core team members, lawsuits involved of INT token. Any such proposal shall be carried out INT, etc. INT will disclose information and financial under a trustworthy provision and with the permission statements on its official website https://intchain.io/. of the applicable securities law and other relevant laws, 12.5 Advisory committee and the above information or analysis shall not consti- INT will invite domestic and foreign experts tute investment decisions or specific recommendations. engaged in the field of blockchain industry for many This document does not constitute any investment years, notables with rich experience in work perfor- suggestion, investment proposal or abetted investment mance, legal entertainment culture and other profession- in relation to any form of securities. This document als, and people familiar with government policy to form shall neither constitute nor be construed as any behavior a third-party expert advisory committee, and to provide of providing any buying and selling or any behavior of consultants, assistant decision-making, and other inviting to buy and sell any form of securities, and it outside brain staff, including: shall not be a contract or commitment in any form. 1) Demonstrate and guide the team's work plan and INT has made it clear that users with relevant inten- major projects, assist the project development planning tions have had explicit knowledge about the risks of and design; INT platforms and that, investors, once involved in any 2) Undertake projects of government research and investment, are deemed as having known about and industry commission to carry out industry research; accepted the risks of this project and being ready to undertake every corresponding result or consequence 3) Organize the research on the hotspot issues of IoT for their investment. and blockchain, and provide consulting services for the team; INT token is a digitally encrypted currency used on INT platforms. When this paragraph is being compiled, 4) Strengthen the exchange of information, regularly INT token remains unable to purchase relevant goods or hold industry forums, guest discussions, academic services. We cannot guarantee that the INT currency is exchanges, etc. bound to appreciate, instead it may also depreciate INT Expert Advisory Committee includes the under certain conditions. following experts: Kong Huawei, Director of Shanghai INT token is neither an ownership nor a control Institute of Computing, China Academy of Sciences power. Any control over INT token does not represent (CAS); Xiang Ruofei, CAS post-doctoral expert in the control power over INT or its application. INT token blockchain; Zheng Zhiping, Founder of aizhan.com and does not empower anybody to involve in such control or expert in network marketing; Zhao Yapu, risk control make any decision on INT and its application. supervisor of Guangdong Zhuotai Investment Manage- ment Co., Ltd. 14 Risk Statemen 12.6 INT Legal Counsel 14.1 Risk of Loss of INT token due to Loss The INT Foundation will employ well-known of Certificate international law firms as an INT project legal Each buyer will have a corresponding INT account advisor to provide comprehensive legal services after allocation of the INT token. The only way to for the design of the digital asset transaction access this INT account is a related login credential structure, operational compliance, legal wind chosen by each buyer. The loss of such credential will control system design, and overseas legal advice result in loss of INT token. The best way to store a login for the INT project. credential securely is to securely store it in one or more 13

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things places rather than any public place or a place where a official versions. It is possible to fail any expecta- stranger will show up. tion or imagination of the INT itself or buyers for the functions or forms (including participants’ behaviors) 14.2 Risks Associated with Core Protocols of INT applications or INTcoin. This can happen of Ethereum because of any analysis with error or any change to Before the launch of the main blockchain of INT, underlying design. INT token is developed based on Ethereum ERC20 14.7 Risk of Hacking or Theft Protocol. Therefore, any fault incurred by the core protocol of Ethereum, unpredictable functional failure It is possible that any hacker or organization or or incurred attack will possibly cause INT token to stop country or region tries to interrupt INT applications or working or lose functions in an unexpected way. For INTcoin functions in any way, including service attacks, further information about Ethereum protocols, please Sybil attacks, guerrilla attacks, vicious software attacks visit http://www.ethereum.org or consistency attacks, etc. 14.3 Risks Associated with Buyer's Creden- 14.8 Loophole Risk or Risk of Vigorous tial Development of Cryptography Any third-party that acquires a buyer’s login creden- INTcoin might be lost due to development of tial or private key is likely to control his/her INTcoin cryptography by leaps and bounds or development of directly. To minimize this risk, buyers are expected to other related sciences and technologies, like develop- protect their electronic devices to prevent admittance of ment of quantum computers, or decoding risks brought any unverified access request and any access to contents to encrypted tokens and INT platform. in such devices. 14.9 Risk of Lack of Maintenance or Use 14.4 Risks Associated with Judicial Regula- Buying INTcoin shall be considered as support for tion and investment in the application and development of The blockchain technology has become a main the IoT rather than speculation. INTcoin may have target of regulation in major countries and regions. If a considerable market value in a certain period of time competent authority for regulation exerts influence, INT and enable early investors to make promising earnings. applications or INT token will be impacted. For exam- However, if the INT platform is not well maintained or ple, statutes restricts the use and sale of electronic used sufficiently, such appreciation is not of much tokens. practical significance. 14.5 Risk of Lack of Attention to INT 14.10 Risk of Loss due to Lack of Insurance Applications Unlike bank accounts or accounts with other finan- It is possible that INT applications are not used by a cial institutions, storage in an INT account or Ethereum large number of individuals or organizations. This network is normally uninsured. Any loss under any means that the public is not interested enough to develop circumstances is not underwritten by any open organi- and grow these related distributed applications. This zation or individual. phenomenon of lack of interest may have negative influ- 14.11 Other Unpredictable Risks ence on INTcoin and INT applications. Cryptographic token is an emerging technology. 14.6 Risk of INT Related Applications or Besides the risks elaborated herein, there are also some Products Failing to Meet the Expectations of risks which are unpredictable by the blockchain indus- INT Itself or Buyers try itself and the INT team. For further information, INT applications are still in development and they please visit INT’s official website: https://Intchain.io may be changed significantly before the release of 14

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things Definitions Tolerance algorithm consensus mechanism. It is a consistency algorithm for message delivery, wherein [1] Bitcoin: Bitcoin is a virtual currency and it is not consistency is achieved through three stages to deter- issued by relying on a certain currency organization; but mine the final generation of blocks. In the case that rather, it is generated through a huge amount of comput- there are 3f+1 nodes, such algorithmic mechanism ing according to a certain law. Bitcoin uses the distribut- decides f fault nodes can be tolerated to exist without ed database constituted by many nodes in the entire P2P making any difference to the consistency result. Such network to confirm and record all trading behaviors and mechanism can be independent from the existence of guarantees security of all parts of the currency circula- tokens. Consensus nodes can be constituted by the tion process by leveraging cryptographic design. participatory and supervisory parties. The shared delay [2] IoT: Internet of Things, i.e. network links for 2 to 5 seconds can basically fulfill commercial between things. requirements. [3] Apache Mynewt: an open-source community [13] ZKP: zero knowledge proof, a concept put project promoted by the Apache Software Foundation forward by S.Goldwasser, S. Micali and C. Rackoff in (ASF). the 1980s, It means that a prover enables a verifier to [4] Mynewt: a real-time operation system focusing believe that a certain conclusion is correct without on IoT applications, including low power consumption providing any useful information to the verifier. bluetooth (BLE50) wireless transfer protocol stack [14] PoA: Proof of Activity. NimBLE; latest stable version 100-b1. [15] POW: Proof of Work. [5] DAPP: Decentralized Application. [16] POS: Proof of Stake. It is a consensus mecha- [6] DAC: Decentralized Autonomous Corporation. nism upgraded from the PoW. It controls the duration of [7] Distributed Ledger. mining based on how many tokens a node owns and how long it holds a token; it can effectively shorten [8] Fog Computing: in this model, data, (data) mining time, but it does not avoid the issue of waste of processing and applications concentrate in devices at the computing resources of miners. edge of the network rather than almost all of them storing in the cloud. It is an extended concept of Cloud [17] DPOS: Delegated Proof of Stake. For its princi- Computing. ple, a token selects a certain number of nodes through voting and completes verification and bookkeeping for [9] Hash: a classic technology in cryptography. An them. This consensus mechanism can significantly input with a random length is turned into an output reduce the number of nodes which participate in book- composed of letters and numbers with fixed length keeping and verification so as to achieve rapid consen- through hash algorithm. sus verification. However, it also relies on the existence [10] Hash/s (H/S for short): a computing perfor- of the token and this limits some applications which do mance parameter, i.e. the number of hashes processed not need the existence of the token. per second. 100MH/S means it is able to process 100 [18] ERC20: the ERC20 Token is a common million hashes every second. exchange standard for ETH wallet, allowing developers [11] Merkle Tree: it is a double-fork tree, composed of wallets, exchange and other smart contracts to know of a set of leaf nodes, a set of middle nodes and a root the way a new mark operates based on this standard in node. advance. In this way, they can design their own applica- [12] PBFT: Practical Byzantine Fault Tolerance, tions to take care of these tokens without waiting for which is also known as the Practical Byzantine Fault any update to a new token system. 15

INT: An economy driven solution to improve the device Make A different world interconnection of Internet of Things [19] ERC223: the ERC20 Token is unable to send tokens to a contract which is incompatible with them. This is the reason for why there is a risk of loss of some capital. The ERC223 Token will introduce a new function to the existing ERC20 standard to prevent any unexpected transfer. [20] Raspberry Pi: Rpi for short. It is a mini comput- er of credit card size designed for learning computer programming education and its system is based on Linux. [21] Arduion: a convenient, flexible and easy-to-use open-source prototype platform. It includes hardware (various models of Arduino boards) and software (Ardu- ino IDE). It is developed by an European development team in the winter of 2005. References A. Tapscott, D. Tapscott, How blockchain is chang- ing finance, Harvard Business Review, 2017. T. Stein, Supply chain with blockchain—showcase RFID, Faizod, 2017. S. Nakamoto, Bitcoin: A peer-to-peer electronic cash system, Bitcoin.org, 2009. R. Hackett, The financial tech revolution will be tokenized, Fortune, 2017. D. Bayer, S. Haber, W. S. Stornetta, Improving the efficiency and reliability of digital timestamping, Sequences II: Methods in Communication Security and Computer Science, 1993. A. Legay, M. Bozga, Formal modeling and analysis of timed systems, Springer International Publishing AG, 2014. A. Back, Hash cash—a denial of service count- er-measure, Hashcash.org, 2002. B. Dickson, Blockchain has the potential to revolu- tionize the supply chain, Aol Tech, 16