Blockchain business application pioneer WAYKICHAIN WHITE PAPER Apr. 2018 1
Blockchain business application pioneer Contents Extract ............................................................................................................................ 3 Part I Design ideas of WaykiChain ................................................................................ 5 1.1 Development and value of blockchain .............................................................. 5 1.2 Design principles and implication of WaykiChain ........................................... 6 Part II WaykiChain technological solutions ................................................................... 8 2.1 Smart contract ................................................................................................... 8 2.2 Voting mechanism ............................................................................................. 8 2.3 WaykiChain applications .................................................................................. 8 2.4 Sidechain technology 2.5 Whole node wallet ............................................................................................ 9 2.6 Mobile terminal ............................................................................................... 10 2.7 Block browser ................................................................................................. 10 Part III Application industry application outlook and realization scenarios ................ 11 3.1 Global decentralized betting application ........................................................ 11 3.1.1 Pain points of global betting industry ................................................... 11 3.1.2 Business solutions for decentralized betting games.............................. 12 3.2 Global decentralized assets transaction application ........................................ 14 3.2.1 Pain points in the global centralized assets exchange ........................... 14 3.2.2 Business solutions of decentralized assets transactions ........................ 15 3.3 Settlement time of international remittance and forex .................................... 17 3.3.1 Pain points of global cross-border remittance and forex ...................... 17 3.3.2 Decentralized forex business solution .................................................. 19 3.4 Construction of the blockchain eco-system .................................................... 20 Part IV WaykiChain Foundation .................................................................................. 21 4.1 Establishment of WaykiChain Foundation ..................................................... 21 4.2 The team of WaykiChain Foundation ............................................................. 21 4.3 HR management of WaykiChain Foundation ................................................. 25 4.4 Legal compliance of WaykiChain Foundation ................................................ 26 Part V WaykiChain's planning and vision .................................................................... 27 5.1 Purpose and management of Waykicoins ....................................................... 27 5.1.1 Purpose of Waykicoins .......................................................................... 27 5.1.2 Attributes statements of Waykicoins ..................................................... 27 5.1.3 Allocation plan for Waykicoins ............................................................. 27 5.2 Milestones and future visions for WaykiChain ............................................... 28 2
Blockchain business application pioneer Extract WaykiChain is a brand new and powerful underlying system of Blockchain 3.0 based on Bitcoin and Ethereum. It is committed to provide enterprise-level blockchain infrastructure and industry solutions. By fully integrating the characteristics of the distributed ledger, distributed database, smart contract, programmable digital currency, as well as the value transfer protocol, WaykiChain will help to build and develop a new business model which belongs to the information society and is totally different from that in the industrial society, and thus will thoroughly subvert three traditional industries worthy of hundreds billions of dollars, including the financial industry in terms of the assets trading and distribution method, the foreign currency exchange market in terms of the acceptance method and the betting industry in terms of the old and tedious business model. Thanks to the developing and innovating blockchain technology, widely used business applications and proper governance, WaykiChain has core competitive advantages in the following fields: ◆ Technology: WaykiChain has a mature and powerful technology team which has not only accumulated resourceful industrial and technological experiences in many sectors including finance, entertainment and IT, etc., but also achieved pioneering breakthroughs in R & D and the application of the blockchain technology. ◆Target industry resources: WaykiChain team is built upon on not only blockchain technology expertise, but also on experienced professionals who come from target traditional industries. Moreover, WaykiChain team has built strategic relationships with target industry firms, which will provide support for the application of WaykiChain. ◆ Business governance: unlike common public blockchains, WaykiChain has a clear and accurate strategy towards target industries. Thanks to the characteristics of the blockchain technology, such as the distributed decentralization, irreversibility, encrypted security as well as the point-to-point value transfer, WaykiChain will professionally and persistently permeate into the target industries and gain market shares in a fast way. ◆ Funds management: in terms of fund management, WaykiChain will primarily develop itself following the strict principles of fairness, justness and openness. WaykiChain Team will safeguard WaykiChain development fund in the specially established WaykiChain Fund, promising the security and sustainability of the fund. In order to guarantee the openness of fund’s use, all fund allocation in WaykiChain project will be disclosed to all investors on regular basis. ◆ Market potential: every WaykiChain’s targeted industry is worthy trillions of dollars . According to conservative estimation, in 2017, the market value of the sports betting industry reached USD 1.3 trillion. And the sports betting industry is just the first industry which will be subverted by WaykiChain! ◆ Sustainable growth: by building up a perfect governance structure, WaykiChain Team has realized effective administration on common procedures, code management, financial management, salary management and privilege operation scope, etc., so as to 3
Blockchain business application pioneer guarantee the sustainable growth of WaykiChain. As the underlying system of blockchain 3.0, WaykiChain has not only flawlessly inherited the characteristics and advantages of the eco-system of the traditional blockchain, but also solved the technological bottleneck of the current blockchain, thus truly integrating the blockchain and business. Moreover, WaykiChain is investing vigorously and continually in the R & D and in the innovation of the financial technology with focus on blockchain. Based on its latest achievements, WaykiChain has a clear vision to develop “Blockchain +” and to upgrade the value of the traditional industries as well as other industries, building up a win-win st blockchain Eco-system in the 21 century. WaykiChain: blockchain application pioneer ©WaykiChain has the final interpretations on the white paper. 4
Blockchain business application pioneer Part I Design ideas of WaykiChain 1.1 Development and value of blockchain After more than 40 years of development, internet has brought about new things and new concepts, such as email, network company, social media, mobile network, big data, cloud calculation, internet of things, etc. Internet has drastically reduced the cost relating to searching, coordination and information exchange, radically lowered the entry threshold in many fields, boosted new media, new entertainment and new retails and finally generated the brand new organizational architecture model as well as the unprecedented digital business model. Thanks to the sensor technology, internet has fully permeated the environment where human beings reside. However, for business and economic activities, simple information sharing and transmission cannot meet the development of the economic society. When there is no verification information from the third party (for example, verification of the transactor's identification, qualification, technological capability carried out by banks or government authorities), people cannot rapidly verify the identification of the transactor. These transactors involved cannot establish a relationship of trust which is necessary in economic activities. Therefore, current internet information sharing and transmission solutions, if not relying on the third party intermediary, cannot realize the function of identity verification, nor can it establish a relationship of trust between the two economic participants. Huge limitations still exist. It was not until 2008 that Satoshi Nakamoto firstly issued a point-to-point cash system and its infrastructure protocol: Bitcoin: an Electronic Cash in the Point-to-Point Internet. This digital currency, called “Bitcoin”, can help two transaction parties to build up the bridge of trust to guarantee the completion of the transaction based on intelligent codes without relying on the verification from a third party intermediary. After more than 10 years of development, the blockchain technology behind bitcoin is gradually understood by more and more people, and has undergone continuous development and innovation. Blockchain's role in trust is like that of internet in information. What is mostly absent in internet is the Trust Protocol used to confirm the validity and authenticity of every transaction. The blockchain technology can provide bases to solve such problems, optimizing the approaches and methods adopted by people to allow people to deal with trust, security and privacy. Hence, based on its capability to promote transparency and to protect privacy, blockchain connecting Trust, the most profound need for human beings, point the road ahead for a fairer, more efficient and more accessible global financial 5
Blockchain business application pioneer system. The blockchain technology has huge potential, which will bring about great changes for traditional manufacturing, financial sector, government bodies and all human beings. Features and benefits of the blockchain technology: a brand new distributed infrastructure architecture and calculation paradigm is established thanks to the block chain digital structure used for data verification and storage, data generation and updating based on the consensus algorithm of the distributed computer node, data transmission and access security guaranteed by cryptography, as well as data programming and operation based on smart contracts consisting of automatic script codes. The blockchain technology will store records in thousands of, or even millions of independent computers, while these computers can work in a coordinated manner, no single entity can control them to alter data and software. Moreover, the blockchain technology can establish the reliable point-to-point trust in the internet, so the value transfer doesn't rely on the intermediary. Blockchain discloses information yet protects privacy, makes collective decisions yet protects the interest of the single entity, which increases the efficiency of value exchange and reduces cost as well. The blockchain technology has gradually become mature, bringing about the business ecologic circle of generation, storage, transaction and application. In the industries covered by the blockchain technology, banking, securities and insurance have gained the biggest share. In the future, the entertainment and media industries powered by the blockchain technology will develop in an accelerating speed, and other industries including medical treatment, internet of things, and supply chain will also see more and more applications of the technology. WaykiChain is committed to the booming development of all industries. Based on the incorporation of the benefits of both bitcoin and ethereum, WaykiChain has built up the enterprise-level blockchain infrastructure by integrating the on-chain and off-chain of the blockchain, and thus formed the third generation blockchain eco-system. In the financial and entertainment sectors, WaykiChain will use the blockchain technology to redefine the traditional concepts including assets, currency, investment and transaction, solving the difficulties of exchange, transaction and transmission of values on the internet such as funds, contracts and digitalized assets, etc. Natural persons and financial organizations can, through the eco-system established by WaykiChain, realize the on-line value transmission and exchange in a highly trusted manner by using the whole set of decentralized mechanism constructed by the blockchain technology. 1.2 Design principles and meanings of WaykiChain Although there are many blockchain platforms in the market, and new platforms are 6
Blockchain business application pioneer emerging every day. It is rare to see the platform that not only incorporates with the traditional business but also applies in reality, and the terminal application incorporated with the blockchain technology hardly exists. Even bitcoin, which is the earliest one applies in reality, has more collection value than its currency value. Such situations have more or less deviated from the final objective given to the blockchain technology to change the society, or even to subvert the current business model. We hope to build up a brand new blockchain Eco-system which will be an option for the internet value transmission protocol in the future and to promote the usability and operability of the whole blockchain industry. This is WaykiChain. Thanks to its leading blockchain technology, WaykiChain will, based on its clear business positioning and strategic plans, firstly permeate into and gain shares of the target markets, such as the betting, assets transaction and foreign currency exchange, etc. After accumulating users' solid support, WaykiChain will gradually develop a blockchain technology platform incorporated with real business applications. 7
Blockchain business application pioneer Part II WaykiChain technological solutions 2.1 Smart contract WaykiChain is a smart contract platform that supports Turing devices. It adopts DPOS consensus mechanism, sets up 11 voting nodes, and generates a new block every 10 seconds. According to detailed calculation by WaykiChain Team, currently the confirmed transaction speed can reach 1000+tps. WaykiChain’s smart contracts are compiled with lua scripts. Lua was innovated in Brazil in 1993. After 30 years of development, lua is widely used in various kinds of fields, such as games, internet of things and built-in devices, etc. It is easy to learn and use by community developers because of its detailed development materials, and thus enjoys global support from developers and enterprises. With only a small number of WaykiChain coins, community developers can publish their lua smart contracts into WaykiChain’s decentralized blockchain networks. And thanks to smart contracts, we can realize a plenty of applications scenarios, such as assets issue, bet application, copyright sourcing, mutual insurance, decentralized exchange markets and cross-border settlement, etc. 2.2 Voting mechanism WaykiChain adopts DPOS consensus mechanism with 11 accounting nodes. When each block is generated, each accounting node is elected according to the random perturbation algorithm from the 11 nodes with the most votes. Then the accounting node gains all of the transaction handling fee in its accounting block. If the user locks his WaykiChain coins, he may earn the related interests. When the votes of the corresponding user account change, the interest will automatically accrue. According to the design of the system, the annual rate of return is 5% for the first year, and the rate of return will decrease by 1% every year, and finally, the annual rate of return will be fixed at 1% permanently. 2.3 WaykiChain applications WaykiChain decentralized betting application is the first smart contract released by WaykiChain Team. In the application, the built-in application betting super-coin will be published. Every term of betting will be triggered by the initiator through the smart contract transaction. During the valid period stimulated by the contract, the user may initiate the betting contract transaction, and all of the transactions can be searched and traced in the block browser, and can never be revised. All of the super-coins in the betting will be frozen in the smart contract. When a certain term of betting is over, the bet initiator will publish final betting results through the contract 8
Blockchain business application pioneer transaction. Then the smart contract will issue awards to the correct bettor based on final results from official authorities . WaykiChain’s decentralized assets exchange market is another smart contract application released by the WaykiChain Team. Users are allowed to exchange their real assets into their Wayki assets in the form of mortgage, and trade them openly in the market. The smart contract provided by WaykiChain allows the assets initiator to compile dividend sharing rules triggered by certain conditions. And all of the market behaviors towards the object in the transaction will decide the final price of the assets in circulation. Users needing foreign currency may also realize cross-border remittance, transaction and payment through WaykiChain. The foreign currency exchange initiator may possess Wayki coins by means of pledging his assets to WaykiChain, and earn profit by the rate of exchange. Users needing foreign currency can directly look for recipients in WaykiChain. WaykiChain forex platform, based on the blockchain technology, features high vertical efficiency that exceeds traditional means. Thus more and more recipients will be lured into the business opportunities to meet their increasing demands for foreign currency exchange transactions. 2.4 Sidechain The hottest platform which supports smart contracts, Ethereum, has received much recognition in the market. However, there is still huge potential improvement for Ethereum, which could be seen from the recent network congestion. In the history, Ethereum had been stuck from network congestion or hacked frequently. WaykiChain would apply its own sidechain technology, which allows the applications based on WaykiChain to have its own sidechain. Sidechains are mutually exclusive and are able to set up its own consensus. Sidechain will be required to download specific blocks when using the sidechain application. Therefore, it will enhance the efficiency and reduces the resources waste. Sidechain will transfer and receive information from the main chain to ensure the information security by registering its hash on main chain. 2.5 Whole node wallet WaykiChain Team will publish Windows version whole node wallet in its first WaykiChain application, named WaykiChain Betting. The wallet will be integrated with the money transfer function for Wayki coins and super betting coins as well as the bet application center. Within the wallet application center, the user can directly publish the betting smart contract to participate in the betting. The betting bonus will be 9
Blockchain business application pioneer automatically issued to the user’s wallet after the betting results are released. 2.6 Mobile terminal WaykiChain is estimated to publish Wayki android and IOS applications in 2018. Mobile terminal applications will be integrated with Wayki coin light wallet. The user can store Wayki coins and super-coin digital assets in the local mobile terminal and can participate in betting games conveniently. All of the betting bonus will be automatically issued to the user’s mobile application after the betting is over. 2.7 Block browser Block browser is a WaykiChain application data display system that displays money transfer records of Wayki coins and super-coins, balance of the address account, betting transactions and drawing results, etc. According to the application data in blockchai, all of the data is open, transparent and irreversible by nature. 10
Blockchain business application pioneer Part III Application outlook and realization scenarios in WaykiChain industry 3.1 Global decentralized betting application 3.1.1 Pain points of global betting industry (1) Credit of traditional betting platforms When all the online betting platforms adopt the centralized business model (i.e. run by a certain organization or firm), all the participants in the game must have their assets managed by those centralized platforms. The truth is that the credibility and qualification of many online platforms are worrisome to say the least. Problems such as technical loopholes, black box operation, illegal collection, money pool setup, platform scam, non-real-name verification, information insecurity and lack of legal protection bring grave risk to the participants. From technical perspective, after examining five major security tests, including code security, data storage security, data transmission security, network port security, and multilateral interacting process security, we concluded that most of the online betting Applications and clients showed symptoms of encryption algorithm misuse, encryption protocol’s incorrect implementation or partial missing. They are also scored poorly in areas such as user trading information protection, user deposit protection, preventing transaction history tempering and user identity theft, etc. As a result, hackers are given plenty of opportunities to play their tricks in this process. If one looks closely at these online platforms, he or she will soon find out that most of them share the burden of poor credit. Various platforms that involved in the betting business ended up pulling a string on their users and running away. These online betting platforms do not own enough capital to hedge their risk and would therefore be dissolved the second when they encounter any major loss. Some platforms would choose to scam their users to invest even before they had any loss. Besides, black box operations such as embezzlement, underground lottery, fraud, lack of transparency in the rule put a thorn in the heart of all the players. (2) Limitation of market supervision The authorities in different countries have different attitudes towards the betting industry. Some countries regard betting as financial activities, while some regard it as gambling. Betting activities are treated with strict and tedious supervision, which has substantially limited their development and innovation capabilities. (3) High percentage of commission fee collected by traditional betting platforms 11
Blockchain business application pioneer Operators of centralized betting platforms require high return to offset their risks, because centralized betting activities or the events themselves mean high risks. So the participants in the betting activities are forced to bear some of the cost of the operators. The legal compliance fees collected by the supervision authorities as mentioned above also covertly reduce the return which should be enjoyed by users. Now the total rate of return in the sports contest betting in China is usually around 70% . Some illegal platform can provide 80%-90% rate of return. However, this is far from enough in the market. According to probability theory, nobody can win in the long term in such a distorted market. (4) Niche betting market Traditional betting activities are supervised by the government, which has resulted in the situation where most betting platforms are hidden in the underground market. The outside world knows little about the platforms, and so the market need is not met effectively. Therefore, the seller, or the operator of the betting platform, has more leverage on price, which further squeezes the return of investors. On the other hand, providers of betting activities, due to their covert characteristics, are more difficult to gain the trust of users, because users feel very difficult to verify the qualifications of the providers in the covert market, or such providers intrinsically bear risks of trust breach. Hence the participants of the betting activities are further discouraged, and new users are blocked from the market. (5) Lack of diversity in traditional platforms In the traditional business model of the centralized betting platform, the operator, as the opponent to participants, will bet in the opposite way. The operator can only make profits when participants make wrong judgments. Therefore，most traditional betting platforms have established their own risk control systems and product research departments. If the betting rules of a certain event will give participants some advantages, then definitely such betting event will not be adopted and published by the operator. A philosophical question is raised: only the products and events which are regarded by the operator as advantageous can be published in the platform, while those events published to participants are proved to be advantageous for the operator. Therefore, in the market, there is only a limited number of events available to betting participants. In most cases, such events are disadvantageous for participants. 3.1.2 Business solutions for decentralized betting games The decentralized betting application built on the WaykiChain system has inherited the features and benefits of the blockchain technology, so it will perfectly solve the 12
Blockchain business application pioneer unreasonable problems in the current betting industry, including the low rate of return on the traditional betting platform which is badly criticized, shortage of available betting products, and non-openness, non-transparency, legal risks, fund insecurity, and cheating of the operator, etc. Because the betting application built on WaykiChain is decentralized, it will not be controlled by any party of interest. Moreover, the betting information is recorded in the distributed ledger and cannot be altered by any party, so false betting results are impossible. All users can check the real-time betting records through the blockchain browser. Any fraud or other illegal malicious behaviors will be found out and prevented in time. For example, in the soccer betting, the WaykiChain application will refer to the officially published match results or to those trustworthy results accepted by the public and will collect and verify real-time data. All users will get a result recognized in consensus, then WaykiChain smart contract will execute gains distribution according to the automatically calculated betting rate of return. Because the execution of the smart contract is preset, and the betting information of all users are recorded and cannot be altered in blockchain, so all users enjoy a just, open, and fair gaming environment. The blockchain technology itself has become the most powerful credit endorsement for the betting application. Comparing with the traditional betting platform, the betting application built on WaykiChain features another big advantage: operational cost. WaykiChain is jointly operated by whole nodes and users, so no organization like the traditional operator will share the interest that is payable to the betting participant. The rate of return in WaykiChain betting application may reach 99%, which no other competitors in the market can do so. Therefore, the blockchain technology can bring about another big competitive advantage, namely, the participant can gain the highest rate of return in WaykiChain betting application. Any individual who is very confident about a certain event can also publish a betting activity freely towards such event. WaykiChain betting application allows all participants to publish their own event betting. A publisher, by using the smart contract provided by WaykiChain, can write his event in which he trusts into WaykiChain, and places his assets limits which he pledges in WaykiChain as the betting return. Any user who is interested in and has opposite opinions towards the event can participate in the betting. And the rate of return is decided by the ratio of investment fund of all the participants in the final event result. The smart contract will help strangers to solve the biggest trust obstacle, and at the same time, it will not cost much as the third witness party. Besides, the betting application built on WaykiChain can almost evade legal 13
Blockchain business application pioneer supervision. Firstly, participants will use the digital currency issued by WaykiChain, (not legal currency). Secondly, like bitcoin, WaykiChain is distributed in many nodes in the world, which can neither be destroyed nor be caught. Finally, the anonymity brought by blockchain can help users to carry out games in a safer manner. More importantly, thanks to the decentralization in WaykiChain betting application, there is no control of the rate of return or market manipulation on the part of the dealer, and thus no dealer's runaways. Users in WaykiChain betting application is worry free completely. The WaykiChain application will be gradually open and provide all the betting products and games available in the market. In the early stage, the sports contest betting is used as the beginning point to lure and accumulate initial users. Laterr, it will be open for all users to create their own independent event bets. As time passes by, it will become a killer-level unprecedented betting application on internet thanks to its comprehensive betting products and highest rate of return. 3.2 Global decentralized assets transaction application 3.2.1 Pain points in the global centralized assets exchange The traditional security market is developed around the exchange. The transaction system in the exchange guarantees the normal procedures of all transactions. Once the system is attacked or doesn't work, the whole network may be compromised, and all transactions must be halted. When the centralized assets exchange suffers loss because of outside malicious attacks, all users on the platform normally suffer. Famous examples include Mt. Gox, MF Global, and Bitfinex exchanges. Users must bear the loss when the exchange is attacked by hackers or the exchange goes bankrupt; in some extreme cases, there are embezzlements in the exchange. By selecting the centralized assets exchange, users must trust it completely, giving out their assets for keeping without any doubts. This means that the assets disposition right is transferred from the proprietor to the trustee, i.e. the centralized assets exchange. Therefore, the exchange not only is entitled to dispose your assets, but also sees all of your transactions. No one can guarantee that the exchange will not execute the transaction to its benefits, and as a matter of fact, many exchanges have been done so. Moreover, every exchange has many employees, which increases the difficulty of internal supervision. (2) Unfairness of the centralized assets exchange Because users' transaction information is visible in the exchange, the scandals of insider trading in major exchanges can be seen frequently. Besides, the 14
Blockchain business application pioneer transaction speed is not very fast in the exchange. If some traders can always execute their transactions more quickly, they can gain benefits by means of computing advantages and transaction proceeding speed, which is called high frequency transaction. This is very unfair to other traders. And to compete for faster transaction speed requires more investment, hence increasing the costs of transaction. (3) Rules limits in the centralized assets exchange In the traditional centralized assets exchange, such as NASDAQ, and in the emerging digital currency exchange, such as Coinbase, users are required to follow the rules as stipulated by the exchange, including limited trading time, quota of cash withdrawn every day and even the proof of user's assets income as required by some exchange. Moreover, the assets products that can be traded in the traditional exchange are limited too. The traded assets registered with the exchange must pass various kinds of inspections and supervisions, which causes legal compliance costs and time cost as well. Many quality assets are thus refused to be traded by the assets market. (4) Time cost and high transaction fee caused by the centralized assets exchange The foreground system in the exchange is responsible for matching transactions, while the background system is responsible for settlement and delivery. There are many procedures and links in the two systems, which leads to time and fund cost. Moreover, according to rules, real time settlement cannot be made on the date of transaction, which also brings about potential risks to assets. Furthermore, the operational and promotional fees in the exchange are expensive, and such fees will be labeled as handling fees from users' transactions. Take the digital currency trading website Bitstamp as an example, a user must pay USD 5 for every transaction worth USD 1000. However, the handling fees of Bitstamp are not the most expensive among digital assets exchanges. 3.2.2 Business solutions of decentralized assets transactions The blockchain technology helps to realize the concept of the decentralized assets exchange. The decentralized assets exchange built on WaykiChain system will inherit all the functions in the traditional centralized assets exchange, such as stock trading, rare metal trading, commodity trading, etc. The decentralized exchange can not only bear the load of the same or even bigger trading volume comparing to the centralized exchange, but also solve the pain points that are common in the centralized one. 15
Blockchain business application pioneer Decentralization of WaykiChain technology means that no stakeholder groups or organizations can control the decentralized exchange, thus keeping its fairness, openness and transparency. At the same time, users don't have to worry about the credit of the exchange, because the object of trust has changed from the traditional centralized organization to blockchain smart contract. In WaykiChain decentralized assets exchange, all transactions are realized through smart contracts, without the existence of any fraud or malicious breaking promises. Therefore, the blockchain technology and smart contract can provide more effective support for the transaction of digital assets products, hence laying the foundation for providing transactions of digital assets. WaykiChain decentralized assets exchange empowers users so that they don't have to worry about the high time and handling cost in the traditional centralized assets exchange. The blockchain technology can simplify and automate the profound trading procedures, so that the assets publisher and investor can trade with each other directly, reducing interactions between the foreground and background and save a lot of manpower and material sources. Moreover, the limits often seen in the traditional exchange exist no more in the decentralized exchange. Users can trade at any time freely. Cash withdrawal is not limited, every user has full power to dispose his properties. Thanks to the consensus algorithm and its irreversibility nature of the distributed blockchain technology adopted by WaykiChain decentralized assets exchange, WaykiChain decentralized assets exchange helps the participants to trade assets to perfectly shared data. Every user’s transaction is recorded in the block browser and cannot be altered. Meanwhile, the exchange allows anonymous transaction. Users don't have to worry either the spying upon their transaction information or the dealer's counterpart transactions due to information advantages. Any user can pledge his assets in WaykiChain decentralized assets exchange, publishing his own WaykiChain assets. For example, John owns a company with an annual profit of USD 1 million, and his estimated value of his company is USD 10 million. However, due to various kinds of limits from the stock exchange and supervision authority, John is not able to list his company by issuing stock shares to the public. Now, John may choose to issue his WaykiChain shares on WaykiChain decentralized assets exchange. John's WaykiChain shares are granted with value because he has pledged the future income and some proprietary rights of his company in the smart contract of WaykiChain decentralized assets exchange. Every year, based on the share ratio of the investors, the profits of the company will be automatically allocated, and the investors also enjoy the shareholders’ right in the company. Thanks to the smart contract of the blockchain technology, the cost to establish trust is reduced drastically in the transaction. 16
Blockchain business application pioneer WaykiChain decentralized assets exchange allows the user to pledge any assets to issue the corresponding WaykiChain assets. The price of such assets will be recognized by investors according to market laws. 3.3 Settlement time of international remittance and forex 3.3.1 Pain points of global cross-border remittance and forex (1) Settlement time of international remittance and forex In the cross-border transaction, if the remitter and payee doesn't belong to the same bank, the procedures necessary for the transaction is very tedious. Different banks have different ledgers. When the cross-border transfer is executed, banks involved have to check their own ledgers, and the transaction can only be fulfilled after information is exchanged and verified by every bank. Then comes the breach risk when both parties make the settlement. Therefore, the common solution is to seek the third party as an escrow account; and only when the transaction is completed, the third party will transfer the fund into the account of the payee. Tedious account verification will slow the transaction speed. Particularly when the cross-border transaction happens, more than one bank are involved if the respective bank for the remitter and payee intend to complete the transaction. The time necessary in such procedures is unpredictable. Sometimes, the transaction can finish in one day, and sometimes it will take several days. In the forex market, following ordinary procedure, one trading party transfers its fund to the intermediary. For example, CLS, a foreign currency settlement provider, will hold the fund till the counterpart party provides its fund. One problem occurs in the procedure is that, before the settlement is completed, the fund of the initiating party will be frozen in the transaction for one day normally, or even longer. Therefore, the forex market as well as the cross-border transfer faces the same problem, i.e., uncertainty and delay of the transaction completion time. (2) Exchange rate risk in the cross-border remittance market The parties involved in the cross-border remittance and forex must face the risk of exchange rate fluctuations due to the time delay of the transaction. Usually, the parties involved are required by banks to bear the rate fluctuation risk when they use the inter-bank transfer service, which increases uncertainty of transaction for both parties. The risk of rate fluctuations can be particularly fatal for forex parties. 17
Blockchain business application pioneer (3) Fees in the cross-border remittance market In the market, every participant involved in remittance will be charged with certain fees. And the more the money involved, the higher the relevant fees are. Hence another uncertainty occurs, because the total fees for one transaction cannot be determined until the completion of the transaction. Generally, the fees for one transaction is 2% - 3% of the traded amount; in some extreme cases, the fees may exceed 10%. (4) Non-transparency in the cross-border remittance market As mentioned above, neither the remitter nor the payee is sure about the necessary time and fees for the transaction, They only know that the fee collected will be fluctuated within a range. Moreover, as the initiators of the transaction, both the remitter and payee can neither search for the trading progress in the trading banks, nor can they carry out effective real-time tracing. Because every transaction is usually fulfilled by many different participants, it is extremely difficult to search and trace the relevant information. When a mistake occurs beyond expectations, it is very difficult to locate the mistake by tracing the transaction. Mistakes will usually be found out after quite a time. For example, wrong account numbers takes even longer time to fix. (5) Forex settlement risk Settlement is a major forex link. The global forex settlement systems are innovated thanks to the development of the information technology. Because financial systems are inter-connected, a settlement failure in a large amount of transaction will trigger a series of breaches. The risk is that the cross-border settlement can only be executed during the normal working time of the central bank of the home currency. While both parties in the settlement may reside in different time zones, if one party makes the settlement before the other party, the other party waiting for the settlement will face its counterpart breaches. If a forex trader pays its currency but doesn't get the currency payable, it will face the loss coming from the rate fluctuations of the exact currency payable. The risk comes from the synchronization of the payments by both parties. (6) Supervision requirements in the cross-border remittance and forex Every state puts much emphasis on the supervision of foreign currency and cross- border transactions. It is also very difficult to increase the supervision efficiency and lower the cost as well. 18
Blockchain business application pioneer 3.3.2 Decentralized forex business solution Along with the development of WaykiChain, there would be more and more users joining WaykiChain. Some of them speak different languages and use different currencies. To make all users to participate in the WaykiChain conveniently, WaykiChain has provided a solution that different legal currencies can be converted. At the same time, the system will serve the users who need forex transactions and cross-border remittance. In WaykiChain decentralized forex application, there will be forex recipient for various legal currencies. Anyone can become an recipient. Recipient can obtain the digital assets titles (WKX) by pledging assets to WaykiChain, such as bitcoins, Wayki coins, Ethereum, etc. WKX can be WKCNY, WKUSD, or WKBTC. WKX to the corresponding legal currency is anchored at the forex rate of 1:1. In WaykiChain, users can either pay WKX to buy the assets priced with the corresponding legal currency, or withdraw cash with WKX, which has provided a channel for fund circulation. WKX supplies will be strictly recorded in the blockchain browser where anybody can access. WaykiChain will increase WKX circulations with the same amount as that of the corresponding pledged deposit, and will recover the corresponding WKX in case of cash withdrawal. For example, investor John owns RMB 60,000, and intends to convert the money into USD. But due to the forex control in the country, John chooses to use WaykiChain to exchange for USD. In WaykiChain decentralized forex application, John finds recipient Terrence who wants to exchange for RMB with his USD, and then sends RMB 60,000 to Terrence. After that, John gets WKUSD at the same exchange rate as that of USD. Suppose the exchange rate of USD to RMB is 1:6, John gets 10,000 WKUSD. At the same time, the title of 10,000 WKUSD is taken back by the system from recipient Terrence. By continuing to pledge the deposit to WaykiChain, Terrence can gain more WKX titles to provide acceptance services. The smart contract supported by WaykiChain will ensure the trasaction’s immediacy and security. Foreign exchange transaction and trade will become much faster and become more convenient for customers. Moreover, the transaction cost would be reduced as well. Unlike the traditional forex platforms, WaykiChain doesn't charge any handling fees. The recipient can select his own forex rate and the range of fluctuations. Finally, the actual rate will be close to the officially published rate, because the listed rate exceeding the market rate will be eliminated by the market. WaykiChain contracts guarantees the instantaneity and security of every transaction, because the exchange and cross-border remittance between the currencies of different countries become very fast and convenient in the system. At the same time, the necessary cost is reduced to minimum. 19
Blockchain business application pioneer 3.4 Construction of the blockchain Eco-system WaykiChain provides highly usable and expandable infrastructure platforms for blockchain applications. It is open to all of the developers. Anyone can publish his applications on WaykiChain, realizing his business ideas. In the early stage, WaykiChain will focus on three major applications in order to expand the market, namely, the decentralized betting application, decentralized assets transaction application and the decentralized forex application. After that, it will gradually increase and perfect the upper-layer blockchain applications. Besides the development of user's terminals, WaykiChain system will provide the development platforms fit for different systems and users. At the same time, WaykiChain Team will continue to develop and provide mobile terminal services, including the mobile wallet and the mobile smart contract application. We believe that the true realization of the blockchain mobile terminal services can not only change current APP markets and business models, but also benefit a wider population of internet users. In this way, the blockchain technology can be promoted and developed in China. 20
Blockchain business application pioneer Part IV WaykiChain Foundation 4.1 Establishment of WaykiChain Foundation Founded as a non-profit corporation by WaykiChain Team in Hong Kong in 2017, WaykiChain Foundation is committed to the sustainability of the open-source community project, effectiveness of fine governance, and security, openness and transparency of the raised funds. The foundation is responsible to keep the fund raised in WaykiChain projects as well as the development reserve tokens. At the same time, it will be obliged to rationally use and allocate the fund. According to its agenda, the foundation will disclose the fund usage to the public on a regular basis. 4.2 The team of WaykiChain Foundation WaykiChain Team The team is engaged in the infrastructure construction and implementation in the blockchain industry. It has almost 20 members relating to blockchain R & D, technology and business, including the developers with established reputations and successful project experiences in the industry, as well as the experienced operators and experts in the target industries. Along with WaykiChain's development and the expanding market share, we will be open-minded to recruit the talents willing to serve the community. Main members in WaykiChain Team Wayki Su WaykiChai Chief Strategi Offi er O e of the ea liest e t ep e eu s a d i esto s of digital u e ies i , o shiped the i dust as Godfathe of Doge oi . Net a e: Fe e . Mo e tha ea s’ e pe ie e i fi a ial a d i te et i dust ies. The fou de of Oulu C o d Fu di g as ell as the p eside t of Hu i a e Digital Assets Ma age e t Co., Ltd. He e jo s high eputatio s i oth t aditio al fi a ial i dust a d e e gi g digital u e a kets. A d he has e t e el i h i dust ial esou es, ai tai i g good oope atio ith a fa ous digital u e e ha ges. Vale ti a WaykiChai CEO Chai Ba helo of e o o i s i Ho g Ko g Baptist U i e sit . Fo e se io a age of a fa ous Chi ese se u it o pa . Yea s of p oje t ope atio e pe ie es. Good at tea o st u tio a d p oje t ope atio . A d good at lo alizatio a d i ple e tatio of 21
Blockchain business application pioneer usi ess pla s. E pe ie es of o li e ajo p odu ts. Respo si le fo Wa kiChai st ategi pla i g a d a age e t. To y Chau WaykiChai Chief Operatio Offi er G aduated f o Ca adia U i e sit of To o to. Fo e e plo ee of a fa ous p i ate fu d aisi g o ga izatio . De oted to i dust ial i estigatio a d o e ial a al sis. Deep stud a d u i ue u de sta di gs of o e ial ope atio odels. P ofessio al fi a ial k o ledge a d o plete p oje t e pe ie es. Ho gju Zha g WaykiChai Chief HR Offi er G aduated f o Chi a’s Re i g U i e sit . E pe ie ed HR a kg ou d f o a fa ous o pa ies. Wo ked as HR a age of Citi Ba k a d Wa da Co po atio . Has deep u de sta di g of HR a d k o ho to eate a effi ie t h a age e t s ste su h as p o otio , i e ti e s ste , ai s to de elop e plo ee’s pote tial, eati g e elle t tea , uildi g o de ful o pa ultu e, p o oti g ha ge a d i o atio fo the pu pose of sustai a le de elop e t. Gra ey Ya g WaykiChai Legal Ad isor Maste of La i the I stitute of Ci il a d Co e ial La u de Chi a U i e sit of Politi al S ie e a d La . Pa t e of V & T La Fi She zhe . P a titio e of la si e . Legal o sulta t fo a Chi ese a d fo eig o pa ies, o ga izatio s spo so ed the go e e t, offi ial autho ities, a d i di iduals. Tia ei Chief o sulta t of WaykiChai . Hua g Fou de of Bitti es. E -p odu t a age i Te e t. Afte lea i g Te e t, fou ded a d ope ated fa ous e ga e - Fa te i Basket all Ma age s, fu tio ed as the i e p eside t. Afte that, a ted as the hief st ategi offi e fo You ue Fi a e. O Ma , fou ded Bitti es Digital Cu e E ha ge. Good eputatio i the i dust . Saiju Wa g WaykiChai Operatio Ma ager Ba hlo a d Maste of Huazho g U i e sit of S ie e a d Te h olog . O e o ked as ope atio a age of A e i a a h i Hua ui Wi d Po e Te h olog Co. Ltd a d ep ese ti g Hua ui to atte d the Dallas I te atio al Po e E hi itio . O Ju e, , as a a ded the title se io e pe t the Wuha u i ipal go e e t. Good at i te al a age e t a d eati g ha o ious e i o e t a d spa e fo the o pa f o oth ithi a d ithout. Peter Qiu COO, WaykiChai etti g appli atio ea s i i te et lotte . ea s i i te et ope atio a d pla i g. Fo e e plo ee of Si a Lotte a d Ife g Lotte . Fo e hief edito of Ife g Lotte . P ofou d u de sta di gs a d i h ope atio e pe ie es i the i te et lotte i dust . 22
Blockchain business application pioneer Yua ha g WaykiChai Te h ology De elop e t Ma ager Xiao P offesio al lo k hai te h olog offi e , o e o ked at o e of the top o po atio : Ri oh I agi g Te h olog Sha ghai Co. LTD. I ha ge of lo k hai te h olog app de elop e t a d o e p o ided API de elop e t a d a ket data a al sis se i es fo a digital u e e ha ges. E pe ie ed i digital u e de elopi g a d p ofessio al i diffe e t odi g la guages i ludi g JAVA、C# a d Li u C. Lia ji Te h ology Supporti e Offi er of WaykiChai Hua g Well-k o lo k hai te h olog e pe tise、ACM p a titio e Boa d o ittee、 MBA. Hua ei te h olog VP, lo k hai depa t e t head; Chief a hite t i CGI, Ca ada. Kris Liao Te h ology Supporti e Offi er of WaykiChai Maste of Co puti g E gi ee i g i Zho gsha U i e sit . O e of the fou de s of Zhi e gfa g Ethe eu i Chi a. Me e of o e of the ea liest lo k hai te h olog tea s i Chi a. E pe ie ed de elope of lo k hai te h olog . Yea s of esea h i digital e pted u e ies a d lo k hai s. He has pa ti ipated a d i st u ted the de elop e t of a lo k hai p oje ts. . Ma Lo g M.A. of Wuha U i e sit . The fi st i e to of Ma Colo Blo k hai . I ited le tu e fo Asia DACA Blo k hai Stud Asso iatio a d iCe te of Tsi ghua U i e sit . Ele ted as o e of lo k hai opi io leade s - . Net a es: d , Ma a, idgui, Bite Jia g fo his We hat pu li a ou t , et . BTC olu ite . Fou de a d fo u host fo IDGUI a igatio platfo as ell as Doge oi appli atio . He has de eloped a digital oi appli atio s, i ludi g Naokouli g allet tool, haft ou tdo fo oi p odu tio , oi e site platfo , Pe a e t Wall BBS, Doge oi oti g, it jokes, et . 4.3 HR management of WaykiChain Foundation WaykiChain puts strategic emphasis on talents. In order for the smooth technological development as well as the sustainable, effective, and competitive operation, WaykiChain will invite top developers and management talents. Unlike other blockchain teams, Besides technological talents, WaykiChain Team also warmly welcomes experienced talents in target industries because WaykiChain focuses on the integration of technology and applications. Talents invitation WaykiChain Team will firstly consider the talents with experiences and reputations in 23
Blockchain business application pioneer the industry under the principle of ability first. And WaykiChain will carry out at least two rounds of interview as well as detailed background investigations on candidates, so as to guarantee that every new member shares the same ideas of WaykiChain. In certain fields, WaykiChain will hire experienced consultants in order to guarantee the feasibility and implementation of WaykiChain projects. The relevant fees will be approved by the foundation, and disclosed to the public. Performance assessment Members of WaykiChain Team will receive regular and planned performance assessment under the objective of maintaining the positive attitude and efficiency of the team as well as the project progress of WaykiChain. Main assessment contents are determined by project development, application development as well as funds returns. 4.4 Legal compliance of WaykiChain Foundation In order to provide a more reliable development environment for value creation, WaykiChain is committed to meeting the legal supervision requirements in different areas of jurisdiction in the world. According to law, the foundation is a non-profit organization, and online users obtain only the use rights of WaykiChain. Buyers should understand that WaykiChain doesn't make any promise of any kind, so no refunding will be made for Waykicoins under any circumstances. Part V WaykiChain's planning and vision 5.1 Purpose and management of Waykicoins 24
Blockchain business application pioneer 5.1.1 Purpose of Waykicoins Waykicoins are the tokens consumed in WaykiChain operation. WaykiChain users can use WaykiChain applications and functions by consuming their WaykiChaincoin. For better understanding, the coins can be compared to a kind of fuel. The maximum amount of WaykiChaincoin is 210 million pieces, which will be generated when WaykiChaincoins is official published. All of the coins will be held by the WaykiChain Foundation and is available for sale in public fund-raising. The time and rules for public sales will be released on WaykiChain official website. The minimum trading unit of WaykiChaincoins is to eight decimal places. As WaykiChaincoins adopts DPOS stock authorization certification mechanism, the holder of WaykiChaincoins can gain 5% interest, and the rate of interests will be attenuated annually till 1%. For example, 100 WaykiChaincoins will be increased to 105 coins in the second year. Every piece of WaykiChaincoin corresponds to a voting right, and the holder can take part in the election of book-keepers (self- recommendation allowed). 5.1.2 Attributes statements of Waykicoins WaykiChaincoins are only tokens used and circulated in the wallet of the WaykiChain application, so there are no attributes of legal currency in the coins, just like the tickets of a music fair can only be used for the entry of the fair. After release, WaykiChaincoins can be obtained through mining, voting, subscription, or transactions with other holders, which means that WaykiChaincoins have value of transactions by possible trading with other currencies in other exchanges. However, this doesn't mean that WaykiChaincoins themselves have attributes and value characteristic of legal currencies. 5.1.3 Allocation plan for WaykiChaincoins ● 60% for public sales To guarantee sufficient liquidity to start the application in the early stage and the equality and credibility of all participants, 60% of WaykiChaincoins tokens will be released in the market for private fund-raising. The fund from the public sales of WaykiChaincoins will be kept by WaykiChain Foundation, and will be used to pay for the operational fees of WaykiChain relating to product development, technological upgrading, marketing, financing, legal consultation and community encouragement, etc. The foundation is obliged to disclose to the public the usage and details of the funds on regular basis. ● 15% reserved for the development team, early investors and operational team 25
Blockchain business application pioneer They have made contributions in the early development of WaykiChaincoins, by providing manpower, materials, resources and technology, etc. A part of the coins are reserved for them to pay for their contributions. At the same time, some coins will be reserved to encourage the sustainable development and maintenance of the team. Such coins are configured with a frozen period, so that holders cannot sell them before the time line. ●10% for private investor This percentage of WaykiChaincoins is reserved for thoses investors who invested WaykiChain early as rewards for taking the highest risk. ● 15% for development reserve The development reserve will be used as rewards for individuals or groups that make major contributions to WaykiChain in the future. It will be used as merger funds to incorporate the ideal target in order to expand the market share if necessary. The reserve will be kept by the foundation, and its details of use will be disclosed to the public regularly. 5.2 Milestones and future visions for WaykiChain Ti e Milesto es Jul. Esta lish e t of the fou di g tea Aug. E t of seed apital I t odu tio of the esou es of st ategi ta get i dust ies 26
Blockchain business application pioneer Sta tup of the de elop e t of the u de l i g lo k hai s ste Sept. st e pa sio of the Wa kiChai Tea Sta tup of the de elop e t of de e t alized etti g appli atio Sta tup of PC e sio of all odes allet O t. Resou es li k ith the de e t alized etti g i dust ies No . Pla i g a d p epa atio of pu li fu d aisi g De . I itiati g the p i ate fu d aisi g Ja . Wa kiChai Coi listed o e ha ges. Fe . Wa kiChai Betti g appli atio eta e sio eleased. Sta tup of Wa kiChai o ile allet appli atio Ma . Wa kiChai Tea ’s se o d e pa sio Wa kiChai etti g appli atio elease PC e sio Wa kiChai all odes allet elease eta e sio Ma . Wa kiChai ’s She gzhe p odu ts elease o fe e e Wa kiChai allet elease Wa kiChai glo al oad sho sto pla -Ko ea Ju . Wa kiChai glo al oad sho sto pla -Russia Wa kiChai ’s o ld up etti g eleased Wa kiChai ’s de e t alized e e ts etti g eleased Aug. Wa kiChai glo al oad sho sto pla -Japa Wa kiChai glo al oad sho sto pla -A e i a U de ided Wa kiChai ‚Asia Ga es Betti g‛ elease Wa kiChai Tou a e t elease O t. Wa kiChai A e a Betti g elease I itiati g Wa kiChai App platfo de elop e t De . Wa kiChai etti g app upg ade Wa kiChai u de l i g te h olog upg ade Wa kiChai etti g app upg ade Ma . De elop o e tha Wa kiChai apps Ma . Sta tup of Wa kiChai assets e ha ge app de elop e t Ma . Sta tup of Wa kiChai fo e app de elop e t ©WaykiChain has the final interpretations on the white paper. 27