PlayChip Whitepaper

Tuesday, September 24, 2019
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PlayChip: The Universal Gaming Token A Blockchain Enabled, Sports Community & Gambling Ecosystem PlayChip Foundation Ltd. Sydney, Australia Version 2.1 August 2018 Abstract The PlayChip Foundation Ltd is developing its PlayChip to be at the centre of an incentivised, blockchain- enabled, sports community, and gaming ecosystem. Following the implementation of the blockchain enabled PlayChip, holders of the PlayChip will be able to seamlessly transfer funds between the various sites accepting the token through the PlayWallet. They will be able to buy and sell the token directly via our partnered exchange, the PlayXchange. The PlayChip will also be available to trade on other major international exchanges. This will provide a degree of control and security in a manner not seen before in online gaming. The PlayChip is designed to be secure, scalable, and fun, as well as include features to incorporate fairness into PlayChip transactions and the partner gaming platforms, allowing it to become the gaming token of choice globally. August 2018 1

PlayChip Foundation Whitepaper Table of Contents 1 Introduction 3 2 PlayChip Ecosystem 3 2.1 PlayChip 5 2.2 PlayXchange 5 2.3 PlayChain 5 2.4 PlayWallet 5 2.5 Partner Game Platforms 5 2.6 PlayChip Foundation 5 3 PlayChip Ecosystem Features 5 3.1 Customer KYC 5 3.2 Customer Onboarding Process 6 3.3 Business, regulatory and customer checks 6 3.4 Loyalty Schemes and Bonuses 6 3.5 Provable Fairness and Integrity 7 3.6 Global Solution 7 3.7 PlayChip Feature Roadmap 7 4 PlayChip and Ethereum Methods 8 4.1 Token Requirements 8 4.2 PlayChain Blockchain Methods 9 5 PlayChip Ecosystem Design 11 5.1 Moving PlayChips to the Ecosystem 11 5.2 PlayWallet Functionality 11 5.3 PlayChain Wallets and Ledgers 12 5.4 PlayXchange 13 5.5 PlayChain and Game Interaction 14 5.6 Centralised Identity Mechanisms 14 6 PlayChip Future Architecture 15 7 References 16 August 2018 2

PlayChip Foundation Whitepaper 1 Introduction better odds. As the Ecosystem is based on crypto technology it will facilitate instant cash outs and The PlayChip Ecosystem is being developed to provide greater trust and transparency in the capitalize on market opportunity characterized by holding and movement of funds. the following: • currently no global solution for online gaming platforms to load and cash out gaming chips using reliable and timely methods for transfer to location and location currency. • currently no solution for movement of gambling funds in a transparent manner, where commissions for gaming and money movement are clearly recorded. • currently no crypto blockchain solution for gaming funds that incorporate trust and transparency of a blockchain based technology. Figure 1 – PlayChip Ecosystem • currently no integration to third party In delivering PlayChip to gamers, the PlayChip gaming environs and third-party crypto Foundation and partners will benefit by access to exchanges via application programming global audiences and greater liquidity. The interfaces (APIs), and blockchain development of the Ecosystem, with well-defined technology. interfaces and operating processes, will lower operating costs and allow game providers access • need for flexibility in global online to other services such as seamless online gaming to comply with variable regional shopping. gaming regulations. • need for global online gaming that 2 PlayChip Ecosystem utilises crypto tokens to meet various The PlayChip Ecosystem integrates participants regional security regulations, and as they to enable operation (Figure 2). Each participant is develop. described below: • currently no solution for uniform KYC • Players – online gamers globally use and AML process, and then input as their smart device and PlayChip to access common set data for backend processes all services offered by the PlayChip for jurisdictional regulation. Ecosystem. • currently no solution to utilise token • Partner Gaming Platforms – providers of metadata or Smart Contracts for current online gaming experiences integrated and future regulation applicable to online into the PlayChip Ecosystem to provide gaming. additional services to PlayChip Ecosystem users. The goal is to design the PlayChip Ecosystem to address these market issues and prove global • Global Crypto Exchanges – partner token of choice for online gaming. The PlayChip global crypto currency exchanges that Ecosystem should benefit consumers by allow players and investors to trade incentivizing longer play, bigger prizes, and August 2018 3

PlayChip Foundation Whitepaper PlayChips and exchange to local As blockchain technology transaction speed and currency as and when they choose. scalability increases then PlayChip Foundation will reassess ability to include blockchain • Partner Stores – that offer products or technology into the backend systems. This would services to users of the PlayChip be seamless to Players and offers potentially Ecosystem by accepting payment in more insight into the mechanics of the PlayChip PlayChip currency. PlayChip Foundation Ecosystems via blockchain explorers. will not place any restrictions on other third-party stores offering goods and services in exchange for PlayChips, however they may not be considered Partner Stores. The PlayChip Ecosystem is the engine that drives this innovative gaming platform. The componentry is described below. The development of the PlayChip is a natural Figure 3 – PlayChip Ecosystem progression for the dynamic and ever-evolving gaming industry. Due to the ‘trustless’ nature of The PlayChip Ecosystem combines two separate Smart Contracts, and speed and autonomy of common element systems (Figure 3). Those blockchain networks, it is envisioned that the elements have the following features: majority of industries will adopt a blockchain- • A system for global transfer of funds enabled payment system in future. The PlayChip using the PlayChip and common Ecosystem aims to be at the forefront of change hence investment in blockchain technology to PlayChip wallets, governed by drive its solutions. cryptocurrency regulations. The choice of public blockchain technology for • A common user account for PlayChip the Ecosystem player interface and “off-net” and gaming environs. Players must have technology choice for the gaming platform an active account with tokens to interface is based primarily on a need for higher participate in the PlayChip Ecosystem. transaction speed in backend processes. • A regional-aware system that allows Blockchain technology is evolving rapidly, PlayChip Foundation to respect regional however not yet ready for a stable backend gaming regulations whilst managing solution. Thus, the PlayChip Foundation has chosen the architecture in Figure 2 for the first movement of PlayChips under its release of the PlayChip Ecosystem. control. As the global system initially utilises Ethereum blockchain [2], movements of PlayChip in this system will incur an Ethereum transaction costs described as GAS. In contrast the PlayChain is “off-net” and movements of PlayChip within the PlayChip Ecosystem are free from GAS. This is a further benefit of the initial technology choice for the PlayChain, however we expect cost to improve as Ethereum evolves. It is envisioned that a Player will only carry out one ‘Know Your Customer’ (KYC) onboard Figure 2 – PlayChip Ecosystem Components August 2018 4

PlayChip Foundation Whitepaper process to satisfy global regulation and Anti- PlayChips for public sale, and grant the residue to Money Laundering (AML) regulation. In other partners, affiliates, founders and advisors, who words, the same information is able to satisfy will seed the Ecosystem and stimulate growth both gaming and crypto regulatory environs. where available. The PlayChip Foundation will operate the PlayXchange. The PlayChip PlayChip Foundation will regulate existing coins in the PlayChip is fundamental to the Ecosystem by market to preserve token value. In addition, the providing a virtual currency for trading and PlayChip Foundation will derive PlayChip gaming within the Ecosystem. The PlayChip is revenue to ensure long-term viability via based on the Ethereum ERC20 token standard activities such as: [3]. Global movements of the PlayChip are completed with the public Ethereum Blockchain. • Fees on some PlayXchange transactions, Refer to token offering document [1]. • Fees for quick cash out facility, PlayXchange • Interest fees for loaning PlayChips to The PlayXchange is core to movement of tokens new partners in the event they are unable within the Ecosystem. It is optionally enabled to to buy a pool to operate, outside exchanges or directly to currency or • Optional charge to partner for KYC and services. The PlayXchange is tightly integrated AML check service, into the PlayWallet. • Standard partnership distribution fees. PlayChain PlayChain is the backend technology for PlayChip Foundation transactions will be carried immutability, trust, and transaction capability out on PlayChain or PlayXchange and reported between gaming platforms, PlayXchange, and the with the same mechanism as the PlayChip PlayWallet. The PlayChain tracks movement of Ecosystem described later in this document. PlayChips within the PlayChip Ecosystem. 3 PlayChip Ecosystem Features PlayWallet The key features that make for a compelling case The PlayWallet contains players PlayChips in a for both Players and game providers to adopt ready to access and easy to use application on PlayChip and its Ecosystem are described below. their smart device. The PlayWallet is integrated into the gaming platforms. Customer KYC Both the crypto and gaming Ecosystem requires Partner Game Platforms users to carry out KYC compliance. KYC The PlayChip Ecosystem is designed to support compliance costs are increasing due to growing various game platforms and provide common costs of transaction tracking software, staff services with the PlayChip. Currently the game training, and rarity of experts in a rapidly platforms are either tailored to the local regions developing environment. (via regional sports) or global sports. Increasingly, platforms are developed based on The PlayChip Ecosystem onboarding process fantasy sports [1]. The PlayChip Ecosystem is will be used to unify KYC and AML process game type agnostic however each game platform between crypto and gaming Ecosystems. must conform to the Ecosystem interface and Customers who have applied for one set of games meet legal requirements to participate. already have KYC stored making it easier to enter PlayChip Foundation new games within the Ecosystem, reducing The PlayChip Foundation is established to barriers to and costs of adoption. protect and stimulate the PlayChip economy. The Once the user details are entered, a strong identity PlayChip Foundation will release a portion of and access mechanism is designed in the August 2018 5

PlayChip Foundation Whitepaper Ecosystem as a central identity engine to information required and final implementation facilitate ongoing secure use and operation. details. Customer Onboarding Process Customers must have a PlayChip account with a balance of at least one PlayChip in order to enter the PlayChip Ecosystem. This requires correctly completed KYC and allows priming transaction values for later integrity checks. A customer must first apply for a PlayChip account via the PlayXchange via mobile or web- based portals, see Figure 4 (1). Then they must obtain PlayChips via the PlayXchange or receive them via the blockchain from third party wallets Figure 5 – Pre-Authorisation Checks (2). Once they have satisfied these requirements the Player is eligible to select further preferences The ability to check the user wallet balance and via the PlayChain (3,4) and once complete, they associated KYC is essential before game play, participate in partner gaming platforms (5). and relies on information entered at PlayChip account creation, and movement of PlayChip balances in the PlayChain and PlayXchange. Loyalty Schemes and Bonuses The already sizeable and increasing PlayChip userbase will drive demand for the PlayChip token on the open market. PlayChip Foundation and their partner platforms will also have promotions for account holders to help drive the use and demand of PlayChips. The success of these programs will increase the desire to hold tokens and reduce the trading volatility of the Figure 4 – On Boarding Process PlayChip. There will be a one-off process to convert In addition to the above, bonus promotions are existing PlayUp customers to PlayChip account planned to drive the desire to hold PlayChips. An holders. All new entrants must follow the above example of this is a raffle that only verified process. account holders may use PlayChip tokens to enter into. This incentivises account holders to hold Business, regulatory and customer more PlayChips to improve their chances of checks winning. To ensure fairness, the seeds to the The PlayChain supports the ability for gaming random number generator are derived from a platforms to carry out a number of pre- PlayChain interaction with the Ethereum authorisation checks on players before they enter blockchain that is explained later in section 4. a game. These optional checks allow the games It is envisioned that long-term PlayChip holders to query PlayChip balances, regional registration are rewarded with reduced transaction costs or settings, client authorisations, time of day ability to participate in special “golden ticket restrictions, preferred language, or any other events”. These events offer special PlayChip client preferences. These queries arise in either bonuses for a PlayChip token ID that meet the the PlayXchange or PlayChain depending on following conditions: August 2018 6

PlayChip Foundation Whitepaper • Owning a specified number of sequential • Behavioural Fairness –logging of PlayChip IDs, selected anonymised gaming actions to Ethereum blockchain. • PlayChip ID is a prime number, • User State Integrity – comparing the • PlayChip ID matches the value paid out PlayChain and PlayXchange to record on on a given day. Player device. • PlayChip ID matches a chosen The mechanisms to deliver these measures are significant date. covered in section 4. These competitions, finalised via a Smart Global Solution Contract, ensure fairness and transparency of the gaming environment. They also encourage The PlayChip will have application outside the movement of PlayChips within the PlayChain PlayChip Ecosystem. It may be transferred on the and open market in order for players to obtain the Ethereum blockchain like other ERC20 tokens. PlayChip IDs they desire. This will allow Players to carry out the following functions: The PlayChip IDs are allocated upon entry to the PlayChip Ecosystem, and recorded in the • Transfer PlayChips to third party PlayChain. The generation method of unique IDs exchanges that support the PlayChip, is covered in the following section. The IDs • Utilise supported exchanges to convert currently have no meaning in the Ethereum PlayChips to other crypto currencies, environ. The ID allocation encourages Players to keep their PlayChips in the PlayChip Ecosystem. • Utilise supported exchanges to convert In future the PlayChip will investigate the use of PlayChips to other fiat currencies non-fungible tokens (ERC721) in the open supported by that exchange, market. • Move PlayChips to cold wallets that Provable Fairness and Integrity support PlayChips, The PlayChip Ecosystem has a fair and • Move PlayChips to supported online transparent transactional method allowing third parties to observe PlayChip operation and wallets, integrity. Figure 6 provides a diagrammatic • Spend PlayChips at PlayChip Ecosystem explanation. stores, or as a payment method on other exchanges. PlayChip Future Roadmap The utility of PlayChip will increase the evolution of blockchain technology. The following design changes to PlayChip are expected: • When future blockchain transaction speeds are increased the PlayChain may Figure 6 – Fairness and Integrity be replaced with a blockchain equivalent. • Transactional Fairness - logging of PlayChip transactions will strike directly selected anonymised PlayChip onto an open chain improving transactions to Ethereum blockchain. transparency in the PlayChain. • With the evolution of Smart Contracts the ecosystem business rules will be August 2018 7

PlayChip Foundation Whitepaper automated on behalf of the users, players, This is measured against existing Ecosystem game partners, and the Foundation. users [1]. It will be designed to scale to two million users, to meet growth projection for the • Non-fungible tradeable tokens year ahead. introduced to increase interest in specific PlayChip IDs. The transaction load on the PlayChain will vary depending on the time of day, significant events, In summary the first iteration of the PlayChip will and increasing game platform partners. It will be utilise many different aspects of blockchain designed to scale to meet demand. technology, and as the technology evolves more features may be applied to the PlayChain. Blockchain solutions are challenged by this environment, but technology is rapidly evolving 4 PlayChip and Ethereum Methods to increase transaction performance using In order for the PlayChip Ecosystem to meet its sharding and sub-chains [5]. business objective the PlayChip must be designed to meet the following technical requirements. Transaction Options and Costs It is intended that the PlayChain and Token Requirements PlayXchange will group transactions to the The PlayChip Token will be launched via an Ethereum blockchain to reduce average initial coin offering and be tradable on the Ethereum GAS. This will allow PlayChip users PlayXchange and third-party exchanges. At to have a free or reduced cost cash out option. launch the PlayChip will have an issue price of Alternatively, if players wish for faster PlayChip US$0.01, however as the PlayChip trades on the transactions via the PlayXchange, the player may open market it will fluctuate to market demand. fund the transaction with PlayChip and complete The PlayChip has the following design, which it on the PlayXchange. will improve with technological advances: It is expected that blockchain evolution will • Ability to fork to new standards, provide reduced or no GAS. PlayChip may • Migrate to new blockchains, migrate to improved blockchain platforms if that is the case. • Support joint front and backend blockchain solution, Portability • Enable bulk transactions, As blockchain technology evolves, PlayChip and PlayChain efficiencies will follow suit. Every • Possible carriage of fairness data on effort will be made to improve efficiency with blockchain, minimal redesign of the modular architecture. • Possible non fungibility to support global Additionally, due to the high adoption of ERC20 for current tokens, it is expected that future PlayChip IDs. blockchain technology will be backward Transaction Timing and Scaling compatible to ERC20, or mechanisms developed to port or fork ERC20 tokens to future standards. The PlayChip Ecosystem is designed to support a variety of gaming platforms, each with their own Availability performance requirements. Due to the nature of The PlayChip Ecosystem is designed to survive real time online sports, tight timing requirements multiple single points of failure through are placed on transaction times of the PlayChain advanced design principles. These includes the to ensure seamless user experience and system communication paths as well as server integrity. infrastructure. At its initiation it is expected that the PlayChip Ecosystem must support over one million users. August 2018 8

PlayChip Foundation Whitepaper Security Figure 7 – Optional Random Number Seeding off The PlayChip Ecosystem is being designed with Mershell Hash a “defence in depth” approach with strong The seeds will be available for use in the boundary protection, identity and authentication PlayChain and within the gaming platforms services, internal intrusion detection and themselves. The random number mechanism has prevention services, and extensive integrated a range of proposed uses such as: logging and management services. • Loyalty scheme rewards Many of the integrity and fairness measures guard against cyber intrusion and data breach • Golden ticket bonuses with identification of third-party alterations of • Integrity checks. transactional, behavioural, or user, data. • PlayChip ID generation. PlayChip Format The ERC20 Token [3] has been chosen for the PlayChip ID Generation initial PlayChip implementation due to its The unique identification of PlayChips within the widespread adoption and ease of handling in third PlayChip Ecosystem is designed to support party exchanges and wallets. Other standards customer loyalty programs. There is currently no were also considered, such as ERC 223 [4] for anticipated need for PlayChips held by the ability to back out transactions, and ERC 827 to Foundation, or other non-player accounts, to carry data such as fairness inside the PlayChip. require PlayChip IDs. The development of non-fungible tokens (ERC721 [4]) is also of interest, allowing PlayChip to carry unique token IDs and assisting in development of loyalty bonuses for PlayChip holders. The design decision is to stay with ERC20 until the other ERC standards have evolved to provide improved security, and backward compatibility with ERC20 for migration purposes. The PlayChip Ecosystem is intended to be rolled out in progressive phases between 2018, and 2020 [1]. PlayChain Blockchain Methods Random Number Provision Figure 8 – PlayChip ID Mechanism A common native mechanism to seed random There are a few proposed ID creation methods. number generation is proposed for the PlayChip The simplest being a random number generator Ecosystem. It will rely on extracting hash values mechanism that generates numbers of a chosen from blockchain transaction records and using length, checks them for uniqueness, then applies them as seed for random number generation. them to PlayChips held in Players wallets. Alternatively, the PlayXchange may hold a combination of values taken from characteristics on the latest Ethereum or PlayChip transaction on the blockchain and implement unique IDs allocated to PlayChips when added to PlayChain user ledger. August 2018 9

PlayChip Foundation Whitepaper A business decision by the Foundation will be Regularly a hash of current records will be made on whether PlayChips in the Players Free created and appended to a known Ethereum and Paid wallets have the same status in future transaction. This may be compared to the same loyalty programs. However all PlayChips in the hash presented as part of the online presentation Ecosystem will have unique IDs. of records. PlayChain Event Logs Viewers may see that the current records are unchanged, and they may go back in history to The PlayChain is able to keep immutable event see whether results published remain the same logs. The event log will be implemented as a (common hash) to those published earlier Any database. The log is likely to reside on a high change to the database would result in a change performance blockchain in future architecture. in the hash value calculated and presented to the Apart from maintaining the log of all user and user. game transactions, the event log will act as a source of information for the PlayChain to measure statistics such as: • Distribution of entry fees and winnings (Top 1%, 5%, 25%, 50%) • User statistics (winners, break even, losers) • Beginner user statistics (as above). These statistics may be presented on a per game basis, per game partner, or the entire PlayChip Figure 10 – Integrity of Game Logs Ecosystem. The statistics provide players unique insight to the gaming platforms they access via User and Game Hash Tagging the PlayChip Ecosystem. A similar check may be carried out on user PlayChain Integrity Check records. A players’ device may carry out a hash The PlayChip will ensure integrity of operation on user and registered Game IDs, latest by maintaining the log as a secure record of transactions, wallet balances stored on the phone transactions and publication to the Internet. The cache, and then check against information stored PlayChain also provides a mechanism to ensure on PlayXchange and the PlayChain to check for the reports and logs are immutable, or if changes record integrity. are made, they are easily detectible. Figure 11 – User based PlayChain Integrity Figure 9 – Integrity of Transaction Logs This would not only determine whether the PlayChain had been compromised, but also August 2018 10

PlayChip Foundation Whitepaper whether other parties have used the PlayChip user gaming wallets in the PlayChain. Due to the users’ account on a different device. business rules in the gaming environ there will be wallets directly supported by the PlayXchange ie 5 PlayChip Ecosystem Design User Hot Wallets. These wallets may transact to The PlayChip Ecosystem comprises elements of the Ethereum chain, and may be seen as a online gaming and blockchain technology shown standard exchange hot wallet. below in Figure 12. Players who have PlayChips in their user hot Moving PlayChips to the Ecosystem wallet may transfer PlayChips via the After the onboarding process described in section PlayXchange to their corresponding integrated 3.2, Players will receive PlayChips from the PlayChip gaming wallets in the PlayChain to PlayXchange in their PlayWallets. engage in online gaming within the PlayChip Ecosystem. Alternatively, PlayChips can be bought at third- party partner exchanges and sent to an Players may convert their PlayChips to fiat appropriate third party wallet or their PlayWallet currency or other cryptocurrencies directly from via the Ethereum network. their third-party wallet through third-party exchange, or from their PlayWallet through the PlayChips sent to the PlayWallet involve sending PlayXchange. PlayChips located in the gaming the PlayChip through the PlayChip Foundation wallets have a number of mechanisms to transfer merchant wallet supported by the PlayXchange, out to other wallets with different timing and cost which allocates the PlayChips to corresponding implications. Figure 12 – High Level Design two ledgers in the gaming wallets for differentiating tokens in the pay-to-play and free- PlayWallet Functionality to-play gaming environs. Alternatively, PlayChips located in third party user wallets may The PlayWallet is the term given to the unified be transferred to equivalent interface that provides users a common view of August 2018 11

PlayChip Foundation Whitepaper their balances, allows different feature sets which represent the user’s allocation of assets on depending on user sophistication, and provides an the exchange. ability to move between wallet and game The wallets and ledgers aligned to the environments seamlessly. PlayXchange are: • PlayChip Merchant Wallet – a hot wallet attached to the PlayXchange for receiving and sending PlayChips in and out of the PlayChip Ecosystem over the Ethereum blockchain. This wallet will be a multi-signature wallet requiring a multiparty process to send PlayChips. The wallet will be accessed via a web Figure 13 – PlayWallet Overview interface or integrated into an automated A PlayWallet is comprised of a ‘PlayChip wallet’ business process via an API. used for gaming and an optional user ‘hot wallet’, which allows users to transact directly with • PlayXchange Wallet Ledger – an internal Ethereum through the PlayXchange. These are database of allocations of coins and different feature sets of the same PlayWallet. tokens that are sent to the Merchant wallet and allocated to the correct The PlayWallet is integrated into the destination address and user via an PlayXchange and PlayChain and able to be used internal process. Each of these ledgers on Apple IOS and Android devices. In all wallets, will have one or more blockchain the users’ PlayChip balances, transactions, and addresses associated with the user ID. deposit addresses are standard features. As the user hot wallet is more transactionally focussed it These ledgers will be used for both will contain more details around currency PlayChain Players and PlayChain conversion rates like a conventional exchange- Partners to transact PlayChips on the based wallet. The PlayWallet will be more public blockchain. focused around integration into the gaming • User Hot Wallet – an optional wallet environment and rules involved in moving chips interface for sophisticated players to buy in and out of the game interfaces. For example, as and sell tokens directly via the PlayChips are placed into a game, they will move PlayXchange. This option may not be into an escrow ledger until the results of the game are known. PlayChips are then moved out of implemented in the initial phase of the escrow back into the wallet or remain in the game development of the PlayChip Ecosystem. wallet ledger. The actual movement of PlayChips The wallet will be primarily accessed via between wallets is carried out by the a mobile device interface but may PlayXchange and PlayChain. optionally be accessed via a web interface that supports 2FA. PlayChain Wallets and Ledgers There are multiple types of wallets and ledgers within the PlayChain Ecosystem and this section explains their interaction. The PlayXchange is a cryptocurrency exchange, comes with merchant wallets, and ability to allocate coins and tokens to internal ledgers August 2018 12

PlayChip Foundation Whitepaper information. There will be a need to store amounts of both paid and free PlayChips. This ledger will also contain user preferences such as language, game registrations details, and a range of other player specific information. • PlayChain Partner Wallet Ledger – during game play the PlayChips at risk are moved from the Player ledger to an escrow account. Winnings are then returned to the Player ledger or losses to the Partner ledger. All these transactions are handled by the PlayChain. Players will have a unified view of their PlayChip Figure 14 – PlayChip Wallets and Ledgers activity from their mobile device. This unified view is described as the PlayWallet where two • Partner Hot Wallet – a hot wallet separate processes and interfaces support attached to the PlayXchange for the different features in the Ecosystem with purpose of partners receiving and transparency to the Player. sending PlayChips in the open market. This wallet will be a multi-signature PlayXchange wallet to require a multiparty process to The PlayXchange will support the following key send PlayChips. The wallet will be functions: accessed via a web interface or integrated • The PlayWallet via customised APIs that into an automated business process allow the PlayChip Foundation to through an API. increase the sophistication of the The other types of wallets and ledgers are those PlayWallet over time. which are reliant on the PlayChain: • Interfaces to the PlayChain to support the • PlayChip Wallet – an interface for movement of PlayChips within the players to view information on their PlayChip Ecosystem. current holdings, transactions, addresses, • Interfaces with third party exchanges and market values, KYC information, credit wallets on Ethereum and other selected card details, gateway tokens, bank blockchains. account details, other cryptocurrencies. Additionally, Players may initiate • The movement of PlayChips from the purchases or cash out transactions global Ethereum network into the through the wallet. The wallet is also PlayChain for gaming use. tightly integrated into game interfaces so • The PlayChip movement business rules that Players may move from wallet to to meet regional gaming and game interfaces seamlessly. cryptocurrency regulation. • PlayChain Player Wallet Ledger – a The PlayXchange will be supported with database ledger which contains the PlayChain Foundation infrastructure and information presented by the PlayChip designed to have high levels of integrity and Wallet and other PlayChip user resilience. August 2018 13

PlayChip Foundation Whitepaper The PlayXchange will be responsible for managing the collection of player KYC and entry to the PlayChain so that both systems may report on AML and regional gaming regulation. PlayChain and Game Interaction Due to transaction scale and speed restrictions of current blockchain technology the initial implementation of the PlayChain will use database technology. Players use their smart device as primary interface with the PlayChip Ecosystem, allowing play in games provided by the gaming partners. Both the Game and the PlayWallet communicate Figure 15 – PlayChip Game Partner Interaction with the PlayChain to ensure conditions are correct for the Player to participate in the game The PlayChain provides the support mechanism such as: for the wallet, ledgers, and transaction logs, and is an integral part of the gaming process and • Registered to Play compliance regime. • Passed global and regional requirements In addition to normal system maintenance and (via KYC data), support tasks, the PlayChain administrators will be able to access the event log and query • Sufficient funds (Free or Paid), transactions in order to resolve customer • Player preferences match. transaction disputes, as is required by law. Once appropriate technology becomes available, this All transactions on the PlayChain are retained in could become another task that could be the event log and accessible by the PlayChip performed by oracle masternodes on a Foundation, PlayChip Partners, and players in proprietary blockchain.The Players’ PlayWallet order to ensure the ecosystem is open and will also have the facility to show individual users transparent. Transparency will be enhanced with transaction logs as well so that Players are equally transactional and behavioural fairness well informed on the status of past and active mechanisms enacted by the Ecosystem and games. Ethereum chain. Centralised Identity Mechanisms Gaming events will be carried through REST Central to the PlayChip Ecosystem is an Identity APIs to the gaming platforms in a similar manner and Access Mechanism (IAM) [6] that provides to the operation of the existing platforms. The security on who may or may not access physical existing game graphical user interfaces (GUI) devices, software services, and administrative will be integrated into the PlayWallet as part of roles. It will also provide the engine behind the joining the PlayChip Ecosystem. Additionally, 2FA and multi-signature processes implemented our operational partners will interface with the for higher value transactions or more PlayChain to allow for the movement of sophisticated Player accounts. Future solution PlayChips between user wallets and gaming flexibility consideration may include other platforms. identity and access methods such as biometrics, hardware, and tokens. Architecture for mobile application identity is being considered to integrate support to the overall PlayChip security architecture. August 2018 14

PlayChip Foundation Whitepaper 6 PlayChip Future Architecture To put this into context, the PlayChain is estimated to need to support 3-5000tps for a 2 Wherever possible, blockchain design principles million user base, including surge demand. These are being integrated into the current backend numbers are implementation dependent, and design for future transition to a seamless development of the first iteration of the blockchain enabled backend. PlayChain will help refine this requirement. Examples are: The PlayChip Foundation will also consider • Separate wallet/ledger architectures implementing a consensus chain for bets that trusted third party data feeds cannot verify. In this • Using ERC20-like APIs wherever instance, oracle masternodes will serve as the possible. consensus agents of the betting smart contract, verifying the outcomes of the bet and enacting the • Designing processes around immutable payouts via Smart Contract. This could be records (fairness and integrity methods, performed by the PlayChain (once suitable audit trails, PlayChip IDs) technology becomes available), or a secondary • Integrating logic into blockchain blockchain. variables (random number seeds) The PlayChip Foundation will continually assess In order for future architecture to support these technology options in order to keep the blockchain technology in the backend and PlayChip at the forefront of blockchain become an integral part of the PlayChip and game functionality, whilst preserving the ease of use, platforms, blockchain technology will need to and integrity of the overall Ecosystem. The advance in performance and scaling. PlayChip and PlayChain will be migrated as and when technology improves. The initial approach applied to Ethereum scaling is to perform as many transactions off-chain and At this early stage the solution is based on a next use the blockchain sparingly – this is why the generation Ethereum or the ERC20 token, but PlayChain is designed as it is today. could be migrated to an entirely new chain technology suitable for high volume gaming The second common approach relies on a future transactions. The migration would resemble the third generation Ethereum implementation of process completed by EOS and TRON [11]. This sharding [5], where the Ethereum state machine approach will allow introduction of benefits of is segmented and processed separately in parallel consensus and Smart Contracts to the PlayChain, with other segments. This increases scalability at where it makes sense, and allows the PlayChip the cost of security and decentralisation. It is also and PlayChain to remain at the forefront of the predicted that this approach may reduce GAS as industry. less work is required per shard. An alternate approach for the backend design is to use a completely new blockchain technology designed specifically for high speed transactions. Examples of these under consideration are: • EOS – has a target 6000 tps [7], • High Performance Blockchain – has a target of 1,000,000 tps and no transaction fees [8]. • Quarkchain – target 2000tps [9], Figure 16 – Future PlayChip Ecosystem Architecture • Ziliqua – 2400tps [10]. August 2018 15

PlayChip Foundation Whitepaper 7 References 5 https://techcrunch.com/2017/09/18/ethereum- will-replace-visa-in-a-couple-of-years-says- 1 https://www.playchip.global/wpcontent/uplo founder/ ads/2018/06/TokenOfferingDocument.pdf 6 https://searchsecurity.techtarget.com/definiti 2 https://ethereum.org/ on/identity-access-management-IAM-system 3 https://theethereum.wiki/w/index.php/ERC20 7 https://eos.io/ _Token_Standard 8 http://www.hpb.io/ 4 https://medium.com/wepower/erc-standards- 9 https://quarkchain.io/ to-move-ethereum-forward-erc-20-erc-223- 10 https://zilliqa.com/ erc-721-e1712456449d 11 https://globalcoinreport.com/eos-tron-erc20- migration-affect-on-ethereum/ August 2018 16