Tarush Litepaper

Monday, August 12, 2019
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Introduction 2 1. The MimbleWimble Protocol 6 2. Decentralized Governance Protocol 8 Is it important to have a Decentralized Governance Protocol? 9 The business perspective 10 The myth and problems engulfng the pioneering cryptocurrencies 12 How does it work? 13 Voting 14 Block creation 15 Power to the masses 16 3. Dynamically Multigraph Blockchain 17 The theory 17 Sharding 18 Task sharing in Tarush 19 Merging sharding and multigraph processes 20 Multigraph sharding at a glance 21 Network sharding 22 Conflict resolution 23 Shard generation 23 Transaction sharding 23 2

Computational sharding and smart contracts 24 Using Tron’s smart contract platform 25 More effciency 25 Extreme reliability 26 4. Quantum-safe encryption 27 What is at risk and how? 27 How does Tarush offer a solution? 28 Symmetric cryptography 29 Asymmetric cryptography 29 Hashing 30 Securing the data at rest 30 Securing the data transfer 31 Restricting access to data 31 What do we need to do? 32 5. Cross-Chain Network 32 Why is it important? 33 How much is it worth? 34 How is Tarush different (a technical perspective)? 35 Pros of cross-platform compatibility 37 Multi-token transaction 38 3

Interoperability 38 Value transfer 38 Cross chain consensus 38 Cross chain smart contracts 38 Factors to consider 38 A word about cross-platform compatibility 39 6. x86 Virtual Machine 40 4

Introduction The world of blockchains and cryptocurrencies has seen lots of developments over the course of the last two years. While efforts at present are geared towards delivering better speed of transactions, network security, and transparency, TARUSH has emerged to make a difference. The certainty of the blockchain as a major milestone in the push by mankind for greater control over personal fortune and direction is a landmark. Paying attention to the weight of disillusion- ment with the traditional, commercial, financial, and transactional algorithms across the globe, it is clear that the blockchain route cannot be ignored. The utility of cryptocurrencies and blockchain in our world today surely point in the direction of greater adoption and consideration. There is an increased demand and yearning for faster pro- cessing methodologies, decentralized approach, assured security, and usability. No other path- way seems to make all these expectations possible in today’s world like blockchain innovation. This is where TARUSH makes an entry. TARUSH is an upcoming cryptocurrency project focused on privacy, scalability, and fungibility that is built by implementing a MimbleWimble blockchain with some various optimizations. The choice of MimbleWimble as the governing protocol is informed by its privacy advantages. 5

1. The MimbleWimble Protocol MimbleWimble was developed by in July 2016 by Tom Elvis Jedusor to take the privacy concerns of cryptocurrency proponents into consideration. The first steps to MinbleWimble derived from the work of Adam Brock, who conceived confidential transactions in order to encrypt the send- ing and receiving of bitcoins. Block N-2 Block N-1 MW Blocks are formed with tracsactions Block TX cut-through and all N inputs and outputs are mixed MW TXs still have input/output information The primary ingredient for the working of MimbleWimble is the use of blinding factors. The use of blinding factors essentially involves a random value chosen to encrypt the transactional value of bitcoin. This is determined by the sender as the transaction is initiated. What needs to be taken note of here is that the blinding factor should be able to encrypt the transactional value without altering the input and expected output of such transactions. In terms of value determination, this is how it works: If v is the value of a transaction input or output and H a point on the elliptic curve C, we can simply embed v*H instead of vin a transaction. This works because using the ECC operations, we can still validate that the sum of the outputs of a transaction equals the sum of inputs: 6

v1 + v2 = v3 => v1*H + v2*H = v3*H Verifying this property on every transaction allows the protocol to verify that a transaction doesn’t create money out of thin air, without knowing what the actual values are. However, there are a finite number of usable values (transaction amounts) and one could try every single one of them to guess the value of your transaction. In addition, knowing v1 (from a previous transaction for example) and the resulting v1*H reveals all outputs with value v1 across the blockchain. For these reasons, we introduce a second point G on the same elliptic curve (practically G is just another generator point on the same curve group as H) and a private key r used as a blinding factor. An input or output value in a transaction can then be expressed as: r*G + v*H • r is a private key used as a blinding factor, G is a point on the elliptic curve C and their product r*G is the public key for r (using G as generator point). • v is the value of an input or output and H is another point on the elliptic curve C, together pro- ducing another public key v*H (using H as generator point). Generating a private key as a blinding factor for each input value and replacing each value with their respective Pedersen Commitments in the previous equation, we obtain: (ri1*G + vi1*H) + (ri2*G + vi2*H) = (ro3*G + vo3*H) Which as a consequence requires that: ri1 + ri2 = ro3 This is the first pillar of MimbleWimble: the arithmetic required to validate a transaction can be done without knowing any of the values. 7

2. Decentralized Governance Protocol In the modern economy, decentralization has a major impact on financial activities since people do not want to depend on one another and are eager to get things done as quickly as possible. Every crypto venture offers decentralization and hence, provides several perks to the communi- ty. What’s different about Tarush is that it focusses on enhancing the ‘extent’ of decentralization and efficiency offered by the pioneering crypto. Before exploring it in detail, it is important to understand as to what is a Decentralized Govern- ance Protocol. See, we have emphasized it multiple times in the whitepaper that Tarush firmly believes in taking power from centralized authorities and distributing it among the masses. It implies that all the propositions regarding a ‘change’ and its implementation must come from the community. Even though it is quite a trendy notion these days and is being adopted at a massive scale, the ‘decision making’ protocol can never be 100% perfect and therefore, it stays under discussion at all instances and the scope for its efficiency always exists. It should be noted that all of the crypto-based ventures, like Tarush, have the following three areas which are highly dependent on DGP. 8

1. Funding governance: where should the funds go? 2. Consensus mechanism: the algorithm/protocol used by the nodes to agree upon the state of the blockchain 3. Project governance: everything else related to the venture It is very easy to understand that decision making remains an easy process if there are fewer members involved. But when the number of users surges (or the network scales), there must be a comprehensive protocol that keeps everything aligned with the perspective. In an overcrowd- ed network, the decisions should be made efficiently and everyone’s input must be weighed in equally as it would have been done in the case of fewer users. In a nutshell, scalability should not haunt the decision-making process. Unfortunately, in most of the networks, it has become quite slow. However, with the help of MimbleWimble blockchain, Tarush uses an optimized approach to scale the user base. As a result, the decision making process on our platform is several times more efficient than our sig- nificant others. Is it important to have a Decentralized Governance Protocol? Yes, it is. Even though cryptocurrency happens to be a great innovation, it is basically technology and a result of programming – both of these things can never produce a ‘perfect’ product. There is always scope for improvement for bringing more efficiency and security. We can only weig tworks in relative terms. For instance, when the BTC was launched about a decade ago, there was no other venture to compare it with and hence, at that time, it was the best, most secure and efficient cryptocurrency. However, with the passage of time, the industry has derived more robust algorithms and protocols which are way ahead of Bitcoin in terms of technology. 9

It is worth mentioning that when a crypto user suggests a change, it is mutually agreed upon by the majority of the network and is then implemented with the help of a fork, let it be a loophole related to security, efficiency, privacy, scalability or any latest feature that a community might be interested to incorporate. Two of the big giants in the industry (BTC and ETH) have both gone through several soft forks which were necessary in order to address some security concerns at one point or another. Since we are using MimbleWimble blockchain, our solution can also be integrated with the root BTC network for enhancing its efficiency in terms of scalability (out of many other salient features). Having said that, we are fully aware of the fact that soft forks must be avoided. Of course, when a new change is being implemented, it can cause a whole new set of inconsistencies while fixing a single bug. Therefore, developers must always ensure that they put in quality time for rolling out a decent project in the first production phase. The business perspective Regardless of the fact that we have been hearing about cryptocurrencies for nearly a decade now, it is important to realize that the entire infrastructure is based upon blockchain, which is a rapidly changing technology. Therefore, this industry is still running towards achieving a certain level of ‘maturity’. 10

However, one crucial thing to be noted here is that cryptocurrencies have a lot in common with equity markets, although the technology is completely different. Keeping that in mind, we must recall that there are very specific stakeholder structures for investment schemes and they have plenty of similarities with the governance model, as implemented in blockchain protocols. For instance, both of them are interested in decentralizing the decision making bodies in order to take away the veto power from a couple of cherry-picked executives. Secondly, equity markets and crypto ventures are sharply inclined towards safeguarding the rights of investors and they even spend millions of dollars annually for researching this department. In many corporate and blockchain-based governance systems, the monetary value is at stake when we talk about individuals. To understand it in a better way, just assume that a few selective people make the decisions in a crypto network. Now, who happens to be at the immediate risk? Of course, the layman using a wallet on the same network is venturing his investment! As a result of this major concern, the overall environment (for investors) is effected and the pay- ment protection process is looked upon with raised eyebrows. Therefore, it is very important to understand that investors in any cryptocurrency project must enjoy the same set of rights as compared with any company shareholder. This is because their profit, loss, and interests can be affected proportionally if there is any change in the network through a DGP. 11

It should be noted that when a selective group of top-tier management is tasked with making decisions, millions of investors using the cryptocurrency are affected. They could be victimized and that is not the thing we want at Tarush. The industry has seen many bad examples in the recent past. For instance, when BTC’s core team took a strong stance and decided to change the block size, many investors were outrageous and their differences lead to a major fork, which created a new token, called Bitcoin Cash. The myth and problems engulfing the pioneering cryptocurrencies Some people have still not understood the concept right, even after observing the crypto and in- vesting in it for about a decade. There are several myths about it and quite often, a sudden hype in the discussion of speculation leads to an unexpected and unjustified fluctuation in token’s value. For instance, many people believe that since cryptocurrencies happen to be decentralized, they do not have any ‘governance’ protocol. They think that the ‘code’ of the venture should be made the law – that sounds quite illogical, right? What’s important to note here is that every blockchain possesses a human-like governance pro- tocol that only executes when the community decides to have a voting session for an upgrade or addition of a feature to the platform. Even if we view it from the perspective of the myth-believers and stand on a common ground that the code must act as a law in all cryptocurrencies, it must be realized that all codes have bugs and it is only a matter of time before someone exploits the loophole. Therefore, it is impor- tant to roll out updates to that ‘law’ periodically, such that the power remains decentralized and the network is securer than before. Please note that even though BTC and ETH have brought a revolution in the industry, they have very outdated, and from a couple of aspects, ‘faulty’ governance models. If we talk about Bit- coin, there are less than 5 mining pools which have cornered the market with ASICs. Moreover, the fee has also surged up several times and in some transactions, it is roughly equivalent to what the banks offer. There are several scalability solutions in the market, like Lightning Network, but they are merely acting as banks and are prone to censorships and attacks by the competitors. 12

Executive Legislature Nodes Miners transmit mined Judiciary The Senate blocks via nodes Miners Developers Developers send code for miners and nodes to choose to run Businesses can House of Reps support code development and devs can contribute Business & Infrastructure to business goals Community Businesses send transactions to miners via nodes Some users run nodes themselves Users use businesses to interact with the network The Users/Community A very rough and simplistic diagram of Bitcoin’s governance model Ethereum’s model is much more decentralized if compared with Bitcoin as it has no single authority controlling the foundation and even the mining process is ‘spread across’ on a much wider scale. However, regardless of the fact that they follow a purely decentralized governance model, the process is not carried out on the blockchain. Once the community has made a deci- sion regarding anything, there are a couple of selected developers responsible for implementing the change, which makes this particular aspect of the foundation highly questionable. You must have realized the scale of the problem and impact of DGP now and this is why Tarush has utilized the same concepts as of the BTC network while making of use of efficient technol- ogies to keep up with the race. How does it work? If you are a technical person, you might have guessed it by now. But let’s just talk about its working in a detailed fashion. After reading the rest of this section thoroughly, it is quite easy to establish that the working of a Decentralized Governing Protocol is pretty straightforward. Firstly, it is important to declare the governing party which is responsible for invoking the request for a certain change. 13

Then there is a lengthy (yet efficient) process in which all the nodes inside the DGP vote for the suggested change. If the majority agrees, it is implemented across the network with a consen- sus. As soon as the modification in parameters is accepted, the content of the proposal becomes active and it is given a specific format (e.g. a smart contract) which can be invoked by the au- thorized participants in the network. Voting There are two types of governance systems in the blockchain niche, but in this section, we will discuss the on-chain model only. Until now, you must have developed a decent sense about the fact that on Tarush, everything moves on with consensus, which is essentially a voting process. The important thing to note here is that only the nodes possessing a minimum threshold of TAS tokens are allowed to participate in the process and the ‘value’ of every vote is different. For instance, if you have possessed the tokens for a long period, your assets have increased over time or you have participated in several voting processes – in any of these cases, you might be promoted to another level of governance and as a result, your node would exhibit more value. Let’s say your vote attains a status of 3:1 and while you vote in favor, 2 more (1:1) people cast their decision in opposition – your decision would still have precedence! 14

Apart from that, it should also be realized that not all types of nodes are allowed to take part in every decision making process. For instance, a user who just joined the network a month ago might be able to cast vote for surface-level matters. However, only the senior members or master nodes will be allowed to vote for mission-critical propositions (e.g. budget proposal and security upgrades). Therefore, it is important that the entire process of governance is defined very carefully and formally in order to ensure that the decision making power indeed resides in the hands of the community. Just to clue you in, it is worth mentioning that every second crypto venture markets itself as a ‘decentralized’ one. However, in reality, things are quite different and when we ex- plore their DGPs, they only allow specific people to suggest or vote for the change. So it is clear that merely offering a decentralized architecture is not enough. In fact, there must be a reliable algorithm in place which ensures that the ‘spread’ of authority is even and happens directly as the network scales. There are plenty of Decentralized Governing Protocols in the industry and different projects im- plement them in an array of use cases. However, since we do not have a core team running the venture, we are using the MimbleWimble blockchain which offers a reasonably generic DGP, covering all types of scenarios. Block creation It is the immediate step after reaching a consensus and probably one of the most important ones because that’s how a ledger grows! It is worth realizing that like every crypto venture, Tarush also has its own block creation protocol, dependent upon MimbleWimble. 15

There are several issues in the industry regarding block creation. For instance, the Steemit plat- form has a handful of witnesses (in the 20s) who are responsible for creating a new block. In Tarush’s opinion, it is a catastrophe which leads to the centralization of power – that’s not what we want at all! We are quite decentralized in that regard and our platform ensures that everyone eligible to vote can also assist the network in creating a block. However, in the near future, we might introduce a voting process in which all the members would have to vote for selecting a block producer. But that’s just another thing in consideration. Power to the masses Of course, it sounds fancy, but if we view it from a technical perspective, this distribution of power to the general public on the network is quite a sophisticated thing to handle, particularly if a venture decides to implement an on-chain governance method. Relying on a 3rd party governance tool makes all of this stuff easier to manage since engi- neers can focus on developing the venture while the DGP only needs to be integrated. However, Tarush is trying to keep any 3rd party dependency at its minimum and the reasons are quite straightforward. We would like to address the following concerns in the most reliable and robust fashion, such that even if the network scales, there is no clash in the processes: 1. How would the protocol upgrade? Who would be eligible to vote and what would be the considerations made by our algorithms? 2. In case of an upgrade, how would the network handle previous blocks and wallets owned by active users 3. How would the platform encourage its voters to take part in the process in order to keep the venture running in its best swing 4. Offering incentives to the voters Even after sorting that out, it cannot be ignored that security happens to be the prime concern in any cryptocurrency project, particularly when it is going through an upgrade. Since there are various parties involved, anyone who takes interest in the venture would automatically know about the details regarding an update and this puts the system at further risk. It does not mean that Tarush is ‘still thinking’ about these features and considerations. We are planning to roll out the token with what we think is the best, after thorough research and testing. However, the point here is just to make you feel confident that if in the future, the community thinks about bringing ANY given change, it is quite possible. 16

3. Dynamically Multigraph Blockchain Another important aspect of Tarush’s robust venture happens to the application of sharding together with multigraph functionality. As of yet, not many projects are implementing it, but we think it is very important for enhancing the transactional processes. The theory Mathematical concepts are being used everywhere these days and the crypto industry is no dif- ferent. In the multigraph blockchain, there exist several edges. In simple graphs, these edges can be identified pretty easily with the connected nodes sharing similar ends. However, things are a bit complicated (for our own good) when we talk about multigraphs. Just to clue you in, whenever there are more than one verticals in the graph, their respective edges will be connect- ed with multiple edges so as to diminish the chances of traceability when a transaction is per- formed and allow network scalability at the same time. To make things easier to understand, please note that in the context of a blockchain venture, edges are the links that connect multiples users on the network. The alignment and recognition of these nodes are necessary to enable swift operations. 17

Talking in terms of processes, only a full node will be allowed to download an entire copy of the transactions occurring on the blockchain. Moreover, they will also be able to determine whether the transactions are following the predefined consensus protocols or not. In data structures like DBs, everything is centralized, which carries significant risks for the working of the network as well as the end user. Tarush has taken that into account and therefore, we have opted for a blockchain-based infrastructure. Our venture is not hardware dependent and happens to be a large scale solution based on a de- centralized architecture. Therefore, we can enjoy the luxury where a node assigned to perform a specific task can seek help from several other nodes as well, hence multiplying the overall efficiency of the network. So if you look at it from a broader perspective, it becomes easier to understand that since several nodes are connected, the task of a single one can be divided which brings a great deal of robustness in our processes. Sharding Tarush makes quite an effective use of dynamic sharding as well. Due to this, we are able to assign an arbitrary value to every node. The entire network is aware of the IDs allocated to each one. If you have read it for the first time, you may not find it very fascinating, but the use case is quite good when we consider taking a security measure. For instance, if the network decides to isolate one of its nodes through voting, it can be done easily with the help of its unique ID. Moreover, this technique also comes in handy when an access restriction is to be applied. 18

Note: Since the network is decentralized and runs hundreds and thousands of nodes, if a single one is being scrutinized, the community would never suffer from a bad user experience even for a fraction of a minute. Task sharing in Tarush We have talked about it briefly in the above sections, but let’s just explore it in detail now. Task division between several nodes is not the only thing sharding does. In fact, it also ensures that the data split is logical such that the retrieval process is efficient and meaningful and the algorithms do not have to arrange anything at the runtime. In order to understand it in a better way, let’s explore an example of internet pages. Before mov- ing forward, please note that they operate in a centralized environment. Suppose that a database service, linked with any website or platform runs into an issue – which is very common. As a result, all the objects or data stored on the affected addresses will become 19

inaccessible for the users. What’s even worse is that the hosting website will most likely go down. In such scenarios, a load balancer would come into play and effect the redirection of inbound URLs to the DB. In order to prevent a non-user friendly experience, the visitors will be sent to a page containing information as to why the site might be down. This pathetic approach can be countered pretty easily in a distributed environment and the entire network can stay up even if hundreds of nodes go down. For instance, if the above-mentioned scenario occurs with Tarush and from the perspective of blockchain, even if several nodes go down at once, the entire network won’t shut down – only the affected section(s) will go offline. Moreover, in order to isolate the unresponsive nodes, a code is incorporated at the time of very launch and it can detect any segment of the network which is affected by any means. Merging sharding and multigraph processes In our network, nodes, user accounts, and processes hold the maximum precedence and we also ensure optimum dedication and resource allocation to these vital elements. Basically, whenever a transaction occurs, the sending wallet is selected as the basis. Therefore, even if someone tries to conduct a fraudulent activity in terms of revoking the transaction, the ‘basic’ node is called for the process. As a result, there cannot be any double spending since the shards of this node prevent such an incident. 20

Multigraph sharding at a glance Many enterprises hesitate to adopt blockchain because of their reservations related to business scalability – well they have legitimate concerns! However, since Tarush makes use of the dynamic multigraph sharding concept, it enhances the processing speed of the network and as a result, the scalability prospects also increase. Just to clue you in, it can handle about 100,000 transactions per second, which makes Tarush a decent choice for pretty much any type of business willing to scale up. It is worth noticing (again) that the technique is dynamic – it implies that regardless of the increase in the number of users, the throughput will also adjust its pace so as to fulfill the ex- pectations and demands. As soon as the transactions on the network surge, each one of them is assigned to a particular shard, which breaks up the tasks in all transactions and processes everything in parallel, thus achieving efficiency and allowing optimized scaling. It is also worth noticing that Tarush makes everything work in a combination, therefore, our consensus algorithm and multigraph sharding work at the same time to guarantee that the system never slows down and the processing speed is kept at its ‘level best’ at all instances. That’s all about horizontal scaling where our focus is on the expansion of nodes and transac- tions. Let’s explore the vertical dimension now where Tarush ensures to add plenty of resources (e.g. computation power and storage capacity) in the individual nodes. Therefore, none of them would ever have to suffer from downtime or lag in performance because of limited resources. It is understandable that with the help of sharding, the network experiences an overall increase in efficiency and by utilizing vertical scaling, the probability of any possible malfunction in CPUs is diminished to a great extent. This is quite a robust technique and a major chunk of credit goes to the decentralization architecture offered by blockchains. Since Tarush is based on the MimbleWimble, it can act as a sidechain as well and can be easily integrated with the root BTC network by implementing a soft fork. Until now, several challenges have engulfed different blockchains in the industry. However, the MW creators and researchers spend a decent team researching all of these shortcomings and as of now, it happens to be one of the most robust solutions in the market, particularly if we talk about scalability, security, and privacy. 21

Network sharding Now that sharding is reasonably clear to most of you, we shall discuss how Tarush uses this technique. It is basically a load balancing method and we use it to divide the entire mining network into smaller shards – this process has 2 steps. Firstly, it selects several loyal nodes from the network and forms a direct service committee. The primary responsibility of this committee is to per- form network sharding and then assign nodes to different clusters (aka shards). The DS committee governs the sharding process and the initial step in this regard is to select the nodes that are to be authorized, which is done by solving a mathematical puzzle based on the PoW model. The algorithm involved here makes sure that every node which has successfully produced a valid result in the previous stage must come up with the DS block header. A DS block usually contains the signature and the header, however, it can be modified to carry more details as well. As soon as a node solves the PoW based puzzle, it simply creates the header for the block, which is then sent to the DS committee through a multicast. The committee is responsible for adding its signature to the block after reaching a consensus as to whether the header of the block is legitimate. 22

Immediately after the bootstrapping stage is over, the composition of the nodes, which becomes a part of the DS committee, is shown. The time period between mining two DS blocks is re- ferred to as DS-epoch and it is carefully monitored to ensure that the two successive blocks do not start competing with each other. As soon as a new node is added to the committee, the previous one is removed to ensure that the total number remains constant. It is also worth noticing that the latest member happens to lead the consensus protocol until a new node is added. Conflict resolution Tarush’s consensus protocol ensures that there is no forking in the DS blockchain by default. They are only allowed when the majority of nodes solve a mathematical puzzle at roughly the same time. In order to get rid of any conflict, the members of the DS committee remove the nonce fields from their respective headers and then arrange them in ascending order. At this point, the node leading the consensus offers its header to the committee which MUST match with the largest nonce. After that, the newest node determines whether a consensus pro- tocol is executed to agree on the block header or not - if the result is negative, it forcefully runs the consensus (that’s rarely required). Shard generation As soon as the committee is elected, the core sharding procedure begins and as you must have realized, in order to take part in this stage, a node must have undergone all the previous steps mentioned above. At the very beginning of DS-epoch, sharding is performed again and the pre- vious hashes together with nonce for this latest consensus are sent to the DS committee. Transaction sharding Tarush makes use of an account oriented architecture which guarantees that if a transaction is meant to be sharded, it indeed undergoes the process at all costs, based on the sender’s account. 23

We have skimmed through this technique in the above sections, but it is important to under- stand the reason and working of this procedure. Basically, transaction sharding guarantees that any event related to double spending is countered by the very shards of the sending node. In order to take care of the scalability needs, we ensure that the network only performs atomic transaction commits. Hence, the cross-shard transmission never occurs which further prevents the network from executing complex and resource intensive functions. Tarush also executes all the transactions in an asynchronous fashion, thus preventing the network from clogging at any given time. Computational sharding and smart contracts Let’s shed some light on smart contract first. Basically, since we are using Tron’s platform, the platform or rather the solution we offer is quite dynamic and we can host pretty much any use case. Moreover, it is worth noticing that traditional blockchains have outdated procedures and they are not optimized up to the required industry expectations. Therefore, such networks consume a significant time to validate a given transaction. The primary reason for this shortcoming is that every node is supposed to run a repetitive process. 24

It may seem a secure option to many of you, but it costs a hefty sum since the computational power consumed by such procedures, when executed in repetitions, increases exponentially. If the expenses continue growing exponentially, eventually, no one would prefer using blockchain. It happens to be one of the reasons as to why we have selected Tron’s platform for smart con- tract creation as it goes quite well with our sharding procedures. Please note that we run a consensus protocol to perform sharding of computational resources. The purpose of this process is to ensure that all the participants on our network are involved in writing the sizes of groups for every subtask involved in a consensus. As it is quite compre- hendible now, every consensus group will be assigned a particular task, which they will be held responsible for. It is worth noticing that the participants are also meant to determine a condition upon which the result of the consensus will be accepted by everyone. Tarush is the next generation of payment-oriented use cases and since we imply sharding with dynamically multigraph blockchain, our scalability prospects are better than anyone else in the market. Using Tron’s smart contract platform There were plenty of reasons for choosing Tron, but the primary one was their extent of decen- tralization. They do not require you to be a part of any centralized organization and anyone with a piece of reasonable programming knowledge can build solutions on top of their technology and roll out a dApp. Since Tarush does not have a management team running the venture (and offers the truest sense of decentralization), Tron serves our use case in the best possible manner. Now that we have explored Tarush-specific aspects, let us jump towards some generic benefits of decentralization. More efficiency In traditional banking models, if you send payment to anyone, you have to wait for a certain period (several days for International transfers). This is not feasible at all and the main reason is that you have to depend on central authority (bank) to verify and accept the payment before the recipient’s account is funded. 25

However, you do not have to suffer from any such thing in a decentralized environment since au- tomated smart contracts execute the deal for both parties and the transaction occurs in a matter of seconds. So it is pretty obvious that decentralization does not only mean ‘more power to the masses’, but it also brings a great deal of efficiency in our processes since we do not have to rely on any single entity. It happens to be one of the foremost reasons as to how we offer a through- put of 100,000 Transactions Per Second. Extreme reliability While using cryptocurrencies, you are not supposed to put your trust in any centralized entity. In traditional organizations, servers and all the data storage devices are placed in a centralized location. Tarush is quite different in that regard. We store the information all across the nodes so even if one of them is down, the rest can respond and keep the network running. What’s exciting and distinctive is that we continuously optimize our chain size to offer unparalleled efficiency. 26

4. Quantum-safe encryption Cryptocurrencies are all about encrypting your private details and critical transaction informa- tion that may be exploited otherwise in traditional systems. Even though security is taken very seriously when we talk about any blockchain-based venture (let alone a cryptocurrency), there are advancements in other technologies as well that may pose a security risk to the existence of blockchains. For instance, quantum computing is progressing at an incredible pace and while it happens to be quite a decent step in the future, its efficiency and computational power raise a serious threat for anonymity and integrity of information in crypto networks. See, the information infrastructure is dependent on public key cryptography, which is highly reliant on mathematical problems. It implies that there is a digital puzzle that needs to be solved by consuming enormous computational power. Even though ordinary processors cannot break difficult algorithms (e.g. Elliptic Curve Cryptography) easily, quantum computing can serve the purpose efficiently and once it starts operating at a mass scale, it could bring wrath on crypto- currencies if necessary measures are not taken on time. What is at risk and how? In short, the wallets and all of their related confidential information are at stake due to the progress being made in quantum computing. We have already talked about the application of mathematical algorithms, but let’s just dive deeper into the specifics to explore a bit more about how all this stuff works. 27

Let’s just assume that you are tasked to find the prime factors of 10 and 15. Of course, you would tell the answer in less than a minute and if a computer program is given such input, we can ex- pect the answer in less than a second! But what if the complexity of this problem is enhanced many times? For instance, even if we task a supercomputer (which is pretty fast in making calculations) to determine the primes of two numbers (10000+ digits each), it would take several years to give an output. Please note that complexity and difficulty in solving such puzzles form the basis of cryptography in today’s sys- tems. Even if a person or an algorithm claims to have access to the public key, it is impossible to reverse engineer the process and retrieve a private key from it. So this is the entire assumption or rather a notion upon which the foundation of cryptography stands. As an ordinary reader, without any technical knowledge, it may sound great. But quantum computing’s different algo- rithms (e.g. Shor) shake it off. For instance, if a regular supercomputer takes a million years to solve a mathematical puzzle, a QC would only require minutes, if not seconds! It implies that once the quantum algorithm gets hold of a public key, we can expect it to retrieve the private key in absolutely no time. Therefore, if a wallet address broadcasts a transaction with an exposed public key, a QC can get this sensitive data and sabotage the integrity of the entire network. With that being said, it is quite evident that any system relying solely on Elliptic Curve Digital Signature Algorithm would have to roll out an update in the near future before the QCs become mainstream (which may take about a decade). How does Tarush offer a solution? We offer a protocol that is highly quantum-resistant. It implies that the transactions executing on our network are significantly difficult to be ‘hacked’ by an algorithm that runs on the basis of quantum computing. Furthermore, since regular updates are released for our protocol, there is no need to worry about the blockchain getting outdated in comparison with the latest algo- rithms. Just to set the perspective, it is worth mentioning that most of the coins that can be destroyed by quantum algorithms are based on ECDS alone and in several tests, we have observed that such networks are easily compromised by using Shor’s algorithm. 28

However, in order to keep Tarush safe from any such incident, we have implemented primitive cryptographies, and hashes. It ensures that the users and their data are safe on the network and no entity outside the channel can have access to the network, whatsoever. Our signatures and hash functions work together and it must be noted that the later mentioned is not prone to quantum attacks at all – not even the Shor’s. Contrary to what we are offering, most of the cryptos running on ECDS can get compromised because their protocols ‘uncover’ the signature at the time of transaction execution. If you happen to be the industry for some time, you must have comprehended the loophole by now – if the signature gets in the wrong hands, there is no way to stop anyone from using the funds in that wallet. At this point, it is important to have a brief look at some of the top cryptography techniques used in the industry. Symmetric cryptography Basically, it utilizes the same key for both ends of the operation (i.e. encryption and decryption). For layman’s understanding, it is equivalent to using a single key for opening the front and back doors of your house. Asymmetric cryptography It happens to be the exact opposite of symmetric cryptography and given the seriousness of threats these days, this technique is highly recommended. Its working is quite different as it utilizes two different keys for encryption and decryption. In order to execute a transaction, the pair must be used together. 29

Hashing Basically, a hash function is responsible for taking the data as input, processing it and then pro- ducing a string against it. The coolest thing about this function is that it only proceeds in one direction, unlike encryption. It implies that once the string is generated, there is no way a person could decode it to retrieve the information for which it was initially produced. In layman’s terms, here is what hashing looks like: Whatever you provide as an input, it is ‘eaten’ by the algorithm and instead, it gives you some- thing even securer to refer to the data. But the ORIGINAL form of it cannot be retrieved at all. However, you can always point towards it or use it, without knowing the details that could po- tentially reveal sensitive information regarding the transaction, sender or receiver. One of the greatest perks is that the output of the hash function is always of the same length. For instance, if you have heard about the SHA-256 algorithm, it produces a string of 256 bits. This is a great step which ensures that whether a set of data is equivalent to a sentence or mil- lions of pages, the function will only produce 256 unique bits against it. So it does not only store the data securely but allows it to be found pretty easily at a later instance. Securing the data at rest Unauthorized access happens to be one of the core security concerns in every niche. It implies that merely storing the data is not enough and organizations need to take robust measures to guarantee that no unauthorized person can read, fetch or manipulate the stored information. After exploring many scenarios, it has become quite evident that even an insider could be in- volved in a cybersecurity event. But let’s just keep our focus on external threats for now, which can be thwarted efficiently by using post-quantum algorithms. Tarush’s primary layer of security is there to prevent the data from being stolen and the ‘real’ quantum resistant algorithm comes into play when the packets are sniffed away. Its job is to guarantee that the ‘thief ’ cannot crack the vital data that may compromise sensitive information. We have also defined access controls and policies which further diminish the likelihood of any unforeseen incident in this regard. 30

Securing the data transfer This is a very volatile process that requires extensive security measures to present unauthorized access. Tarush’s quantum resistant algorithms ensure that while transferring the data from one network to another, or while conducting a transaction between different individuals within a channel, nobody can intercept or sniff the packets. Our robust solution does not only offer an end-to-end encryption method, but it also allows the network to detect any middlemen who might be trying to get into the network. Therefore, it happens to be a pretty advanced solution for organizations trying to secure their processes from a malicious third party element. Due to the incorporation of post-quantum algorithms, we can also strengthen our claim that even if (although the chances are quite slim) a hacker or a QC based program steals the data, it would be fairly difficult to crack or reverse engineer the information so as to reveal the actual IDs of the users and other confidential data related a given transaction. Restricting access to data Blockchains are being used extensively in mission-critical projects. This is because the data required for such operations must be trustable by all the stakeholders. The primary step in this regard, as discussed above as well, is to sanction the data and allow only role-based access. 31

In plenty of ventures, the role-based privileges are rather static which, in the long run, promote insecure behaviors. However, Tarush has opted for a dynamic approach that grants access to the stored information only when required and authorized – the combination of these two must go hand in hand if optimum security is to be maintained. What do we need to do? We have already emphasized that QCs would take a couple of years before they become com- mercial. But once they do, significant problems could arise if steps are not taken way in ad- vance. The encryptions may sound safe for now, but a couple of years down the road, the situa- tion might be reversed. See, blockchain has shaken the internet marketplace and is progressing at an incredible place. Forget about crypto for a while, every second business giant is researching extensively to im- plement an effective blockchain-based use case. Years later, if the sudden mass production of the quantum computer begins, that would mark the end of blockchain if necessary steps are not taken to strengthen the existing technology. The pace of investment and adoption is higher than any other time in the history of blockchain. Therefore, by that time, governments, agen- cies, and organizations would have invested a reasonable sum of efforts and finances and might experience irreversible losses. This is the reason as to why Tarush has ensured that our signing technique, wallets and all of the confidential information is secure and is well-guarded from QCs while we continue researching in order to make the product more robust. 5. Cross-Chain Network In a quarter of a century, more than 53% of the World’s population has started using the internet and the rate is increasing exponentially. Since the total number of users is about 4 billion, it is pretty rational to assume that collectively, they all use a different OS, apps and technologies for performing a variety of activities on the internet. With so much diversification, the latest sys- tems and apps being rolled out in the market must be cross-compatible for connecting everyone across the Globe. Talking about the new wave in technology (i.e. blockchain), most of the networks have their independent use cases, tokens, apps, and users. They operate in quite an isolated environment, which halts their exponential progress since users and apps from a variety of networks cannot interact. 32

Therefore, a cross chain technology would allow Tarush to interact with multiple blockchains and exchange a variety of assets while giving an impression as if the operations are being exe- cuted on a single chain. This solution multiplies the capacity of a network to scale up by sum- ming up the throughput of all the related chains. Why is it important? If you have been reading this paper from the beginning, you must have understood that scalabil- ity happens to be one of the core aspects addresses by Tarush. Even though it is quite crucial for the future of cryptocurrencies, it must be realized that in the long run, a network cannot scale if it is not interoperable. Therefore, we are offering a solution that performs equally well in both domains and can interact efficiently with most of the blockchains in the industry. 33

That was a technical perspective. Even if we view it from the angle of a layman, it makes no sense to have hundreds and thousands of blockchains working separately from each other – what is the point of maintaining such a distinguished level of isolation when this technology is meant to combine everything under a hood? One of the primary motives for introducing block- chains was to get above the monopoly of power. But if industry leaders and even the emerging blockchains stay unintegrated, there is practically nothing to be proud of. For understanding the situation in a better way, just consider blockchain as a planet with differ- ent cities and the phenomenon of interoperability as a road network. In order to have efficient communication and transportation between every city, there must be some sort of a cross-city or rather a cross-chain solution. If there are technological advancement in a city, all of its nodes would benefit tremendously. But wouldn’t it be great if all the cities on the planet share the perks of the latest technology or innovation mutually? This is where Tarush steps in. Essentially, we are building bridges, which we think are not only beneficial for the entire crypto/blockchain community but in the next 5-7 years, they would emerge as a necessity. Furthermore, the concept of interoperability and ‘digital globalization’ also aligns with Tarush’s mission. We have rolled out this solution to work on the BTC’s model and make it efficient, secure, scalable and interoperable in today’s landscape. Our motive is not to offer competition to any of the stakeholders in the market, but to provide an environment and feasibility where everyone could collaborate and advance. How much is it worth? Let us have a look at an important chunk of history first. When the BTC was first rolled out about a decade ago, plenty of people called it the million-dollar bitcoin. Even though the big rally towards the end of 2017 spiked up such hopes, we can analyze the situation quite rationally now – Bitcoin is very far away from reaching that status. What’s troubling for most of the investors is that Ethereum consumed a significant portion of BTC’s market share. As a result, when the price of a coin surged and people started pouring in their investments, the transaction fee also increased and it became quite clear that the pioneer- ing currency might not be able to fulfill the promises it made in the very beginning. 34

There is no doubt in the fact that a couple of years down the road, the cryptocurrency industry is going to be worth trillions of dollars. Therefore, Tarush has jumped into this area and we are offering a solution where a variety of such networks can operate and exchange tokens with one another within a couple of clicks. We believe that in the near future, the demand for such a product is going to increase exponentially and it happens to be the perfect time for investing time and money in Tarush. How is Tarush different (a technical perspective)? Well, before we start discussing the details, it should be noted that scalability is not our sole fo- cus. In fact, we also ensure that privacy, fungibility, and efficiency go hand in hand. All of these are equally important and a crypto venture holds no significance if it scales decently at the ex- pense of privacy or efficiency. Since this industry is already suffering from the issues related to scalability, we have decided NOT to implement an indirect approach for tackling the problems. We would rather address this concern straightaway by shifting our focus on the overall throughput of the network. Just to clue you in, I want you to think about one thing. Bitcoin hit the market about 10 years ago and there have been hundreds and thousands of transactions since then. So where is all the data? Of course, it is stored in what we call the ‘ledger’. But is all of that data relevant and really important to store? 35

Not really! Since there is plenty of unwanted information stored on most of the crypto networks, the load has increased exponentially and that is where Tarush comes into play. As you must have guessed until now, we remove all the irrelevant data from every transaction. Therefore, our block size is smaller and so is the case with the overall chain length. If you happen to be in the industry for a couple of years now, you must be aware that whenever any blockchain network reaches a state of consensus and records the transaction on a public ledger, it undergoes a variety of processes – even though all of them are crucial for the integrity of the network, it is not important to store their details forever. This is what Tarush has realized after studying the BTC model for years. So basically, just to make it shorter and easier to understand, we continuously remove the old transactions in order to keep the network in its best swing. However, if some of them are still crucial, we do not remove them off, in fact, we bundle such transactions in a single block to pre- vent the network from clogging. So instead of having a separate block for EVERY settlement, we create ‘a big one’ and throw in the intermediary transactions. Well, that’s not the only perk we offer. The MimbleWimble blockchain can be efficiently imple- mented as an off-chain. As the name suggests, it acts as a secondary chain and takes the sheer load off the main network. So in a nutshell, a smart contract is invoked from the root chain, but due to MW’s enhanced efficiency, its sidechain processes and executes the transaction in order to settle it without any delay. If we talk about traditional and some outdated blockchains, they offer no optimized solutions for the length of the chain. As a result, they keep on growing steadily and even though it may seem quite good in the beginning, it happens to be catastrophic in the long run. You must have realized that MimbleWimble blockchain is not only relatively smaller in size, it is also dynamic (i.e. the length of the chain changes by aggregating transaction blocks). The only thing that matters in a crypto network is to change the ownership of tokens after all the required verifications. Suppose Adam transfers 1BTC to Mark, who then transfers it to Smith. If you look at it carefully, there is no need to record the intermediary transaction where Mark possessed the coin. We are only interested in recording the end-to-end transfer that happened between Adam and Smith. 36

Since a huge chunk of information related to the intermediaries is not required in MimbleWim- ble, our block size is merely 100B, compared with 1MB of Bitcoin’s block (which is still quite less for the amount of unnecessary data they have to store). In the beginning, some of you must have thought as if we are offering competition to the pio- neering cryptocurrency. But in reality, we are just favoring it. Tarush has a firm belief in the core and basic model set out by Bitcoin. All we are doing is to strengthen its privacy and nourish the scalability. This is a rapidly changing niche and it is important for all the upcoming ventures to utilize a robust technology stack to keep up to the expectations of their customer base. Moreover, since entrepreneurs all over the Globe are exploring different solutions to expand their businesses and scale up, Tarush could turn out to be a perfect alternative in that regard. Pros of cross-platform compatibility Let’s talk about it from the perspective of a business. Your company does not have to create a wallet account on every network to accept more customers. With cross-platform compatibility, only one wallet account will allow you to receive payments from all the chains. As a result of this, you do not have to depend on the uptime of any 3rd party or pay any intermediary chain for receiving or sending the money. Moreover, it would also allow a slow performing network to shift its intensive computation to another network, get it done, and then retrieve the result – at no cost! 37

Let’s explore the pros categorically now. Multi-token transaction Multi-token wallet system is vital for cryptocurrencies and with its help, investors, HODLers and daily users won’t have to trust a 3rd party (usually an exchange) for possessing their tokens. As a result, the transactions and conversions will be performed much more efficiently without risking your assets. Interoperability We have already discussed it above. Just like any other cross-platform technology, blockchains will also be able to interact with each other and exchange their assets without being reliant on any intermediary, thus cutting off the delays and excessive transaction costs. Value transfer If you look at it, all digital systems, particularly the ones dealing with financial activities, merely transfer the numeric ‘value’ from one place to another. For instance, if you transfer 1BTC to your friend’s wallet, does a real coin move across the chain? No, just a number is deducted from your wallet and added to your friend’s wallet. With cross-platform blockchain, this value transmission can get a whole new meaning. Cross chain consensus We have implemented Proof of Work with various other techniques to ensure that we offer a hybrid solution for cross chain consensus. It is quite important and yet a futuristic approach provided that we are already allowing users to exchange assets of different types and values with a variety of blockchains. Cross chain smart contracts Since we are talking about interoperability, it is important to facilitate smart contracts that are executable on the majority of the blockchains. As of yet, it may seem like a luxury, for which, some ventures might charge a premium, but in the long run, it would become a necessity. We have seen a couple of solutions recently, including atomic swap, but what it offers is quite limited. However, Tarush is quite versatile, generic and efficient in that regard, which can serve pretty much every use case that you could think of, especially the ones related to finance. Factors to consider Cross chain compatibility is a very fascinating term and sounds like a great thing. However, there are a couple of factors that must be scrutinized before making your solution go live. 38

First of all, since we are talking about moving funds or other digital assets from one chain to another, there must be enough security for establishing a channel between the chains. Plus, it should also be guaranteed that if funds are being transferred from network A to network B, then the later mentioned does not get hold of the private keys of the other. This issue is quite decently addressed in FUSION (a cross chain platform) which implements DCRM to share the private keys of the network and it guarantees that none of the nodes possesses an entire key. As a result of this implementation, FUSION ensures that a single node is not authorized to take control of all the digital assets. A word about cross-platform compatibility In any blockchain network, either data or value gets exchanged. There are some solutions in the market that allow interoperability based on token compatibility and a very few 3rd party block- chains offer cross-compatibility for either value or data based chains. However, considering the exponential growth of the industry, it is crucial that we create more solutions like Tarush that offer comprehensive feasibility and cover a wide range of networks. Moreover, it is also crucial that we encourage different organizations and people to implement their ideas on a wide variety of blockchains, instead of funneling down on Ethereum, Hyper- ledger Fabric, Waves, etc. Decentralized technology is difficult to implement than a centralized one and there are a variety of challenges that must be catered in order to make a network successful. In recent years, we have seen a sheer focus on privacy and scalability, but cross-compatibility is somewhat… lost! If this issue is not addressed heads on, like Tarush has taken an initiative by implementing Mim- bleWimble, the industry might end up in a pit of fragmentation and inefficiency in the next 5-7 years. 39

So it is very important to persuade developers, investors and innovators to focus on a variety of chains while developing interoperable systems. 6. x86 Virtual Machine When we talk about scalability, there are plenty of factors to be looked after and since developers create these systems, it is important to facilitate them as well. Most of the people prefer EVM and therefore, they are bound to write the smart contracts and entire business logic in Solidity programming language. As a result, it leaves us with a very small pool of developers having command over the very language. In order to address this crucial concern, Tarush has decided to go for x86 Virtual Machine, which would allow us to facilitate the developers belonging to all technical backgrounds, let it be Python, Rust, C++ or any other popular language. Therefore, you can create and test smart contracts in your preferred language. Hence, the results will be achieved much more efficiently and the operational redundancy will also diminish to a significant extent. 40

Its implementation will further ensure that Tarush’s network selectively uses the secure and validated code only. Therefore, fewer resources will be utilized and the burden on our nodes will also decrease. Fortunately, the industry is taking this technology seriously and tests have exhibited that its im- plementation can reduce the computational time of a network by at least 10-20%, which is quite significant. In some cases, it happens to be even greater than, but we would not want to give any absolute analysis as of yet, just to keep the hopes realistic. Tarush has a firm belief that ultimate authority must reside in the hands of the masses and so as to advance our mission, we do not want only a handful of developers benefitting from our venture. Everyone, anywhere in the World, should be allowed to participate. Just to wrap it up, we will be able to offer an unparalleled user experience in terms of efficiency since developers will be able to deploy their solutions in less time and the performance of our blockchain will also increase. 41

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