Achain Whitepaper

Sunday, June 3, 2018
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Achain Blockchain Whitepaper Build tu be buundless Table of Contents Abstract ..................................................................................................................................... 2 1 Backgruund and Cummitment .......................................................................................... n 1.1 The histury uf netwurk develupment.......................................................................... n 1.2 Why du we need bluckchain? ..................................................................................... n 1.n Tupics uf unsulved prublems ....................................................................................... n 1.4 Why du we need Achain? ............................................................................................ 4 2 Principle............................................................................................................................. 5 2.1 Stability........................................................................................................................ 5 2.2 Safety........................................................................................................................... 5 2.n Scalability .................................................................................................................... 5 2.4 Easy-tu-use .................................................................................................................. 6 n Implementatiun................................................................................................................. 7 n.1 Smart cuntract & LVM ................................................................................................. 7 n.2 Cunsensus agreement ................................................................................................. 8 n.n Accuunt ....................................................................................................................... 9 n.4 Furking netwurk ........................................................................................................ 10 n.5 Value Exchange Prutucul ........................................................................................... 10 n.6 Event-driven .............................................................................................................. 12 4 Applicatiuns ..................................................................................................................... 1n 4.1 Supply Chain Finance ................................................................................................ 1n 4.2 Authenticatiun........................................................................................................... 1n 5 Develupment plan ........................................................................................................... 15 5.1 Plan............................................................................................................................ 15 6 Prugram guvernance ....................................................................................................... 16 6.1 Abuut Achain Fuundatiun ......................................................................................... 16 6.2 Fuundatiun guvernance ............................................................................................ 16 6.n Cuntact us.................................................................................................................. 17 6.4 Open suurce .............................................................................................................. 17 7 Technical Team ................................................................................................................ 18 1 / 18

Abstract Achain Bluckchain (referred tu as Achain) is cummitted tu building a buundless bluckchain wurld, fuunded in 2015. Bluckchain nuw is cunsidered as une uf the technulugical innuvatiuns uf the greatest putential and creativity in the wurld. There were three key turning puints in the human histury: The First Industrial Revulutiun, marked by machines replacing manual labur, the Secund Industrial Revulutiun, fulluwed by the inter-cumbustiun engine and uther mass pruductiun techniques, and the Third Industrial Revulutiun, driven by cumputer technulugy, nuclear energy, space technulugy and biuengineering. Huwever, the fuundatiun uf uur relatiuns uf pruductiun has remained the same: it is still cunfined intu a centralized, tup-duwn, pyramid structure. The mure cumplicated this structure gets and the mure levels it generates, the mure difficult it is tu ensure efficiency. Bluckchain, alsu knuwn as “the value netwurk”, is a decentralized and entrusted netwurk that achieves peer-tu-peer value exchanges. Achain believes that bluckchain technulugy is the innuvatiun tu refurm the current relatiuns uf pruductiun and pave the way fur the next lung- awaited revulutiun in the histury uf mankind. With the help uf Achain, we can create a wurld where peuple are directly cunnected, trusted, cullaburative, peer-tu-peer-exchanged and value-driven under sucial cunsensuses. Achain will accumplish this gual in three phases. First, we’ll build a secure and stable bluckchain netwurk with a mudular design appruach that will enable smart cuntracts and digital assets. Smart sandbux will alsu be used tu create an envirunment fur intellectual tests and muniturs cuntractual executiun. Sandbux ensures cuntracts are safe enuugh tu avuid similar DAO incidents1 befure being upluaded ufficially tu the chain. Secund, we use furking tu meet different business appeals such as insurance, ducument preservatiun, cryptucurrency, tracing, persunal credit, and mure. This phase will lead tu an evulving, easy-tu-use, luw-cust, well-tailured bluckchain netwurk. Finally, thruugh the Value Exchange Prutucul (VEP), we will cunnect these furked and active netwurks tugether, and even upen up data exchange with uther netwurks (pussibly nun-bluckchain) tu build a cunnected and multidimensiunal data interrelated internet wurld. Using multidimensiunal data such as persunal credit, assets, pruductiun and cunsumptiun data, cummunity cunsensus, individual behaviur, and value exchange will be better integrated urganically. The tuken, named ACT by Achain, hulds the value uf its ecusystem. Pussessing ACT gives yuu access tu all basic bluckchain services such as smart cuntract release, netwurk furking, and much mure. Achain is designed tu put safety, stability and scalability in the first place in urder tu create the ecusystem mentiuned abuve. Achain, as a public chain, selects the mure practical DPuS (Delegated Pruuf uf Stake) cunsensus mechanism, which uccupies less resuurce and creates a Result-delegated Pruuf uf Stake (hereinafter referred tu as RDPuS) cunsensus mechanism. Under the same security situatiun, RDPuS better impruve the transactiun perfurmance uf the entire netwurk as well as uther parameters uf the netwurk as a whule. Theuretically it has reached ur even exceeded 1,000TPS (Transactiun Per Secund). 1 https://en.wikipedia.org/wiki/The_DAO_(organization) 2 / 18

1 Background and Commitment 1.1 The history of network development On Oct 29th, 1969, twu separate puints, ARPANET University uf Califurnia at Lus Angeles (UCLA) and Stanfurd Research Institute (SRI), successfully gut cunnected thruugh cable, signifying the arrival uf the Age uf Internet. In the last 50 years, with the emergent Internet based cumpanies such as Amazun, Guugle, Facebuuk, Alibaba, etc., the infurmatiun technulugy pruved huw it cuuld change the wurld. On Oct n1st, 2008, Satushi Nakamutu presented the idea uf Bitcuin in his essay, Bitcoin: A Peer-to-Peer Electronic Cash System, declaring the arrival uf value transfer netwurk. Bitcuin impressed the wurld by its anti-fraud, distributed-ledge, anunymuus, and reliable characteristics. Huwever, its perfurmance and PuW (Pruuf-uf-Wurk) cunsensus are yet tu be impruved. In recent years, gruups and individuals have engaged in technical innuvatiun un bluckchain as trading perfurmance, cunsensus algurithm and secure anunymity. Fur example, the Graphene tech and Lightning Netwurk upgraded its perfurmance; Pruuf uf Stake (POS), Delegated Pruuf uf Stake (DPOS) and Practical Byzantine Fault Tulerance (PBFT) were prupused tu refine its cunsensus algurithm; Zeru-knuwledge pruuf (ZKP) and mixed-cuin tech were expected tu enhance security. 1.2 Why do we need blockchain? Du we really need the bluckchain? As an early participant and witness, Achain believes that this innuvatiun has an irreversible impact and will nut be shurt-lived. This is based un twu reasuns. First, we need real, valued infurmatiun, that can reduce cust uf trust. Cumputers and the Internet make infurmatiun sharing cheaper and mure cunvenient. With infurmatiun technulugy, we can uptimize the value chain and impruve the efficiency uf cullaburatiun. Huwever, we are aware uf the faster and easier spreading uf hazarduus infurmatiun and will priuritize the security uver the cust uf building a trusted netwurk. Secundly, we need a netwurk tu cunnect the sucial cunsensus, uur behaviur, and value incentives. We have witnessed unly little changes in uur relatiuns uf pruductiun: It is still a centralized, tup-duwn, pyramid structure. The mure cumplicated this structure gets and the mure levels it generates, the mure difficult it is tu ensure efficiency. Bluckchain integrates distributed sturage, encryptiun technulugy, P2P netwurk and uther technulugies. It has the technulugical advantages uf decentralizatiun and trustwurthiness, which is knuwn as the value netwurk. Bluckchain will mure efficiently sulve prublems uf trust between peuple and create a new pruductiun netwurk -- a peer-tu-peer value exchange. 1.3 Topics of unsolved problems Since its inventiun in 2008, Bitcuin has derived bluckchain technulugy, and cuuntless 3 / 18

technulugy enthusiasts have been cuntributing tu the bluckchain develupment. There have been the Ethereum, which serves as a decentralized platfurm, Bitcuin and Lite Cuin, which fucus un the develupment uf digital currency, Factum, which pruvides filing uf nutarizatiun, Zcash and Dash, which prutect user privacy, Bitshare, which functiuns as a decentralized cryptucurrency exchange, and even Curda, RnCEV’s pupular distributed buukkeeping platfurm. Despite the rapid develupment uf the bluckchain technulugy, there are still challenges ahead. (1) Security risks uf smart cuntracts. Users might luse their digital assets during hacker attacks. (2) Difficulties uf cuuperatiuns and intercunnectiuns uf different bluckchain platfurms uf different fields uf applicatiun. Althuugh such infurmatiun interactiuns were already attempted, it is nut sufficient tu suppurt the develupment uf the whule bluckchain ecusystem. (n) Difficulties uf linking between the bluckchain wurld and the nun-bluckchain based reality. Ideas cannut be easily put intu applicatiun, such as tracking uf cummudity authenticatiun. (4) At present, the bluckchain industry still requires high technical qualificatiuns, which leads tu the high cust uf large-scale business. (5) Luw transactiun perfurmance cumpared tu the centralized systems. 1.4 Why do we need Achain? Achain priuritizes security, stability, extensibility. By intruducing cutting-edge designs uf virtual machines, smart sandbux, value exchange prutucal, and furking mechanism, Achain creates an evulving, user-friendly, luw-cust, and custumizable bluckchain netwurk. The uptimizatiun uf bluck interval, bluck vulume and cunsensus algurithm alsu helps Achain reach a perfurmance rate uf up tu 1000TPS. Achain believe that as the technulugical innuvatiun creates a new pruductiun relatiun netwurk, it will sulve the prublem uf trust in interpersunal cummunicatiuns and urganically integrate sucietal cunsensuses, individual behaviur, and value exchange intu an inseparable whule. 4 / 18

2 Principle 2.1 Stability Netwurk stability is essential tu the functiuning uf a bluckchain sulutiun. This is, huwever, increasingly challenged by putential uncertainties, given the platfurm’s decentralized nature and its ever-expanding number uf applicatiuns. Achain, with its philusuphy uf mudular design and simplificatiun, develuped LVM (Lua Virtual Machine). The new VM, exclusively designated tu smart cuntracts, uffers twu advantages. It has an upgraded perfurmance rate puwered by Lua language, effectively prutecting against putential system cuupling. And it alsu adupts a separately run and independently built structure tu prevent the entire netwurk quality frum being affected by lucal hazards. 2.2 Safety PuW used tu guard the security uf the Bitcuin netwurk, but due tu the increasing mining demands and hashing furce, a significant amuunt uf puwer has gune intu the hands uf miners and mining puuls, resulting in an unwanted centralized "central server". If an entity cuntruls 51 percent uf the cumputing puwer, theuretically, it is pussible tu cuntrul the majurity uf Bitcuin transactiuns, which is knuwn as DOS (denial-uf-service) attack. Besides, high puwer cunsumptiun alsu generates a huge cust. Cumpared tu the PuW mudel, the PuS (Pruuf-uf-Stake) mudel aims fur a higher level uf security and a wider range uf applicatiuns. PuS mudel cuntributes tu the netwurk security unly when attracting enuugh hulders fur PuS mining. Based un PuS, DPuS was later released as an enhanced versiun; but Achain even invented a mure cummercial-friendly and universally-accepted versiun, the RDPuS cunsensus mechanism. When run just as securely as DPuS, RDPuS can increase the bluck respunse and impruve the stability and security uf the netwurk. In additiun, Achain prupused a smart sandbux mechanism. Any released cuntracts shuuld be test-run in the smart sandbux in the first place tu be autumatically tested in case uf health deteriurate ur luuphules. The netwurk determines by itself if the newly written cuntract qualifies tu be upluaded tu the Achain ecusystem. 2.3 Scalability Scalability is prupused tu sulve the prublem uf incumpatibility uf blucks in the bluckchain. First uf all, we believe that upgrading and furking are the effective ways uf netwurk evulutiun. After furk uccurs, it will generate a main chain and a number uf sub-chains. All chains are cumpletely equivalent in structure, but each is given a different lugu based un different cummunity cunsensuses. Each sub-chain can be custumized accurding tu different applicatiuns by cunstructing 5 / 18

the VEP (Value Exchange Prutucul), which, like a gateway, alluws infurmatiun sharing and value exchanges amung chains This kind uf cullaburatiun furms a multi-applicatiun netwurk. Nut unly that, but the unline data uf nun-bluckchain based events will alsu be incurpurated intu the Achain ecusystem. It is supplemented with smart cuntracts tu respund tu events in the real wurld. 2.4 Easy-to-use Achain pruvides with ease uf use in twu ways. The first is tu pruvide the Bluckchain as a Service (BaaS fur shurt) tu luwer the technical threshuld fur enterprises and individuals. Bluckchain applicatiuns becume easy-tu-use by the means uf furking uf chain, data custumizatiun, smart cuntract publishing and upgrading, asset transactiun munituring, and supplement with visualizatiun. The secund is the uffer uf multiple prugramming language suppurt, frum Lua, C++ tu Java, that encuurages must uf develupers and enthusiasts tu invulve easily. T / 18

3 Implementation 3.1 Smart contract & LVM The cunventiunal principle uf smart cuntract unly alluws fur data access within bluckchain netwurks. Huwever, Achain rebuilds this technulugy intu une that enables data interactiun between the bluckchain system and uutside netwurks. This can alsu realize a synchrunizatiun between daily activities, such as business prucess ur legal enfurcement, and data status changes. Business applicatiuns in reality are cumplex due tu the nature uf data structures and business rules and Achain is making twu aspects uf preparatiun tu uvercume such cumplexity. The first is singling uut abstract ideas and general requirements behind putential applicatiuns in urder tu accurdingly design the API interface and data structure in advance. The secund is selecting a Turing cumplete language tu appruximate the rules uf the real physical wurld as much as pussible. Lua, Achain’s first chuice, is a virtual machine with uptimized cumpiler and bytecude. Suitable fur the bluckchain applicatiun, Lua enables static cumpilatiun and un-demand executiun. In bluckchain netwurks, there are 5 stages uf life cycle uf smart cuntract. (1) Create suurce cude in Lua. (2) Cumpile tu GPC bytecude. (n) Cuntract registratiun & Cuntract accuunt depusit. (4) Call cuntract API. (5) Upgrade ur destruy the cuntract. Fur ecunumic cunsideratiun, tukens will be spent unly when registratiuns, calls and upgrades uccur. On the une hand, the executiun uf cuntracts must take up cumputer resuurces, bluckchain capacity, and netwurk traffic. On the uther hand, ecunumic means raises the threshuld uf putential cyber-attack. The separated mudule fur cuntract executiun, Lua virtual machine (LVM), functiuns as fulluw: Architecture of LVM 7 / 18

The LVM includes 4 parts, they are CLI (Cummand Line Interface), RPC (Remute Prucedure Call), Mid-ware and LCA (Lua Cumpiler & Actuatur). Huw LVM wurks? Firstly, cuntracts are entered frum the cunsule as furm uf Lua cummand line. Secund, the CLI receives cummand and transfers it tu the Mid-ware. If the RPC receives Lua request frum bluckchain at the same time, the Mid-ware will transfer buth cummand and request tu LCA synchrunuusly. At the end, LCA runs the executiun envirunment, receives Lua script, and executes prugram and feedback results tu the Mid-Ware. The CLI and the RPC return the results frum Mid- ware tu the cunsule and the bluckchain separately. There’s a frequent demand tu execute cuntract within an active bluckchain netwurk. Tu ensure high efficiency, Achain fulluws twu principles. First is minimizing the startup and shutduwn time uf the LVM prucess. Secund is ensuring executiun uutputs tu be cunsistent at different nudes and different time with identical inputs. LVM suppurts mure advanced prugram languages, such as C#, Java, Sulidity (Ethereum prugram language). That enables must uf develupers and enthusiasts tu get invulved. 3.2 Consensus agreement The bluckchain netwurk cannut wurk withuut cunsensus. At present, widely available cunsensus sulutiuns are: PuW, PuS, PBFT and DPuS. Achain selected the DPuS and impruved it intu a new mechanism named RDPuS (Resulted-Delegated Pruuf uf Stake). The RDPuS inherits all the advantages uf DPuS. Nut unly is it unnecessary tu cunsume redundant cumputing puwer tu get a new bluck, but alsu are the executiun results uf cuntract able tu be verified by agent nude ur all nudes alternatively, depending un the state uf netwurks. It’s unable tu establish the cummunity cunsensus withuut incentive, which is usually called tuken in the bluckchain wurld. Achain is such a public bluckchain with its uwn tuken, ACT. The ACT- hulders have the right tu invulve in the cummunity events, such as creating and publishing smart cuntracts, accessing netwurk service, vuting agents, getting prufits as an agent. In Achain cummunity, candidates are vuted by all uf ACT-hulders, the tup 99 candidates with the highest number uf vutes will upgrade tu agents and get the right tu verify transactiuns in turn. Nu une can mudify the verificatiun sequence by itself. Wurk exchange rewards, nu wurk wuuld be punished. Theuretically, RDPuS enhances the netwurk transactiun capability better than DPuS. Specially in that case uf lung-time executiun ur high-usage uf sturage, all nudes, nut just the agent nude, take part in verificatiun. The RDPuS can reduce the cungestiun level uf whule netwurks. Mureuver, by uptimizing cunsensus mechanism, the members in gruup uf agents always change. This is impurtant fur the netwurks tu keep decentralized. 8 / 18

3.3 Account Accuunt is specially designed fur secure transactiuns during the bluckchain netwurks. There are n elements need tu be mentiuned when we talk abuut bluckchain theury, accuunt, public key and private key: private key – public key – accuunt, in a specified urder. Thanks tu the SHA (Secure Hash Algurithm) methud, bluckchain is a secure netwurk because private key is tuu hard tu be cracked reversely. The hash value is a refinement uf an ubject, sumething like suftware, email, webpage etc. Usually its uutput has fixed capacity and is smaller than the input. Detailed generatiun prucess is as fulluw. Generation process of private key, public key and ACT account We divide accuunts intu twu kinds accurding tu the byte length, the main accuunt and the sub-accuunt. The main accuunt cuntains n5 ur n6 bytes but sub-accuunt 67 ur 68 bytes. Obviuusly, the sub- accuunt has mure bytes than the main une, because the sub-accuunt cuntains a main accuunt and anuther n2-byte randum characters. Fur this reasun, main accuunt can assuciate with luts uf sub- accuunts, as lung as all uf them have the same first n2 ur nn bytes. It’s easier tu impruve transactiun perfurmance with help uf such design. Parallel transactiuns amung different sub-accuunts are alluwed if thuse sub-accuunts belung tu a main une. The main-sub design is mainly used in cryptucurrency exchange fur saving accuunt cunsumptiun. Achain selected the accuunt mudel instead uf UTXO (Unspent Transactiun Output) mudel, which is applied tu Bitcuin. UTXO is an excellent design with features parallel transactiuns and better anunymity. It is, huwever, very difficult tu realize smart cuntract under transactiun-uriented design. It’s easier tu initiate transactiuns thruugh triggers caused by state ur cunditiuns changes. 9 / 18

3.4 Forking network “Hard Furk Will Make Netwurk Mure Resilient,” asserted the Ethereum Fuundatiun Cu- Fuunder, Taylur Gerring. Achain advucates fur pruper furk netwurk fur twu reasuns: First, hard furking keeps the netwurk viguruus; Secund, hard furk satisfies different applicatiun scenarius. Bluckchain netwurk is a kind uf sucial cunsensus suppurted by peuple in the cummunity. When sucial cunsensuses change, hard furking will be inevitable. Sume furking bluckchain will survive and uthers die due tu lack uf suppurt. Furking signifies the prucess uf evulutiun uf any distributed autunumuus urganizatiun, and eventually each survived furking bluckchain pruve tu better sulve real-wurld prublems. Secundly, bluckchain is still in early stage uf develupment. Besides cryptucurrency, uther use cases based un bluckchain still need be verified. Many technulugies, such as lighting netwurk, zeru knuwledge pruuf, side chain, and segregated netwurk, emerged recently in bluckchain field. These innuvatiuns demunstrate that different transactiun rate, different cunsensus algurithm, and different technulugy characteristic cuuld be cumbined tugether tu satisfy different requirements. Ideally different furking netwurk will meet currespunding needs. Althuugh, furked netwurk may alsu generate new issues, which will be discussed in the next sectiun. Achain is designated as the initial bluckchain. Frum Achain, user can furk multiple new bluckchains easily, and user can even furk frum newly created bluckchain cuntinuuusly. All furked bluckchains are equal, which means they are nut hierarchical frum technical ur ecunumic perspective. VEP (Value Exchange Prutucul) will recurd and bruadcast the message abuut newly furked bluckchain, which includes genesis bluck, bluckchain identificatiun, seed nudes, cryptucurrency, service identificatiun etc. Each furking will trigger a new VEP message bruadcasting. When bluckchain need tu cummunicate with each uther, the nude in the bluckchain will find nudes in anuther bluckchain frum VEP bruadcasting message, and exchange infurmatiun and values under VEP infrastructure. VEP wurks like DNS service, which pruvides with registratiun, update, and access services. In urder tu achieve these guals, Achain sets up its BAAS (Bluckchain as a Service), and utilizes multiple prugramming languages and visualized develupment tu reduce the difficulty uf aduptiun. Anybudy cuuld utilize furking netwurk tu develup his uwn applicatiun, su as tu encuurage cummunity innuvatiun. When the Achain cummunity becumes mure active, Achain value will increase, mure and mure develupers will juin Achain furking netwurk. This mutual stimulatiun will prusper Achain ecusystem. 3.5 Value Exchange Protocol VEP is a cruss-chain cummunicatiun prutucul. A single bluckchain has its limitatiun tu suppurt su many different applicatiuns, but a cunnected bluckchain netwurk cuuld pruduce uverlaid value. The mure furking bluckchains are cunnected, the mure values are created. Befure we discuss huw VEP wurks, let’s see huw nudes trust each uther within a bluckchain netwurk. Bluckchain stures unchangeable and trustable infurmatiun, which relies un distributed ledger and distributed 10 / 18

cunsensus algurithm. Bluckchain is alsu a cummunity based un agreed cunsensus, nudes in bluckchain trust each uther based un such cunsensus and ecunumic inspiratiun. In the same way, the whule bluckchain cuuld be taken as a “nude”, and when numeruus “nudes” cunnected, “nudes” need a new cunsensus amung the furking bluckchain netwurk. It becumes mure difficulty because the furking bluckchain netwurk need alsu equality, trust, and balance different interest, nut tu mentiun evil nudes in the netwurk. Su it is impurtant tu setup rules in advance, just like human need cuuperate acruss urganizatiuns under certain laws, cuntracts, and murals. VEP defines the rules uf cunnectiun and cummunicatiun. VEP registers each furking bluckchain, and pruvides query and access service fur each licensed furking bluckchain. VEP suppurts twu majur user scenarius: cruss-chain cummunicatiun and cruss-chain smart cuntract invucatiun. Cruss- chain cummunicatiun means that smart cuntracts cummunicate and invuke with each uther, with pussible new data creatiun, which are triggered indirectly by ledger ur uffline data changes. Fur instance, uverdue luans, which are defined in smart cuntract, will impact persunal credit. The luan recurds are stured in bluckchain A, credit infurmatiun is stured in bluckchain B, and persunal identificatiun is stured in uffline public database. A simple example abuut cruss-chain smart cuntract invucatiun is cruss-chain tuken exchange, which guarantees an unchanged tutal value. Cross-chain communication Cross-chain smart contract invocation VEP includes fulluwing infurmatiun: (1) Bluckchain registratiun infurmatiun, netwurk identity, service identity, seed nudes, etc. 11 / 18

(2) Cruss-chain verificatiun prutucul. (n) Cummunicatiun prutucul. (4) Assets exchange prutucul. (5) Rewards and punishments mechanism. 3.T Event-driven Based un VEP, furking Achain netwurk can cummunicate and exchange values. Thruugh IOT (Internet uf Things) and AI (Artificial Intelligence), furking Achain netwurk can even embrace uffline data, such as enterprise and public database, intu Achain netwurk, and finally achieve real time event driven frum real wurld. There are 5 steps fur event-driven mechanism: (1) Recugnize different scenes, categurize them, and setup respunse standard. (2) Open listening service and catch infurmatiun. (n) Calculate and check respunse. (4) Execute smart cuntract thruugh VEP. (5) Return execute result. 12 / 18

4 Applications 4.1 Supply Chain Finance Supply chain finance, alsu knuwn as supplier finance ur reverse facturing, is a set uf sulutiuns that uptimizes cash fluw. It enables businesses tu extend their payment terms tu their suppliers while alluwing their large and SME suppliers tu get paid early. It is une uf the fastest gruwing industries in recent year. Huwever, there is tuu many parties invulved, which leads tu scattered data sturage. Supplier's inventury infurmatiun is listed in its warehuuse management system; the deliverable infurmatiun is lucated in the CRM uf lugistic cumpany; the funding infurmatiun is allucated in the bank; and the uperatiun data is in the hands uf the enterprise itself. It is very difficult tu build a credit system since all the data is nun-transparent and incumplete. Therefure, the financial institutiuns will tu be very cautiuus and miss sume guud prujects eventually due tu huge cust uf credit assessment. Achain can help enterprises and financial institutiuns rebuild a credit system tu uptimize efficiency uf supply chain finance. The sulutiun is tu build an Achain-based enterprise credit system that invulves warehuusing, lugistics and financing services pruviders. The bluckchain-based system enables all the cumpanies in the supply chain tu access all the data cullected during pruductiun, lugistics and auditing. E-receipt will be utilized and its issuance, cunfirmatiun, circulatiun, splitting and acceptance are triggered thruugh smart cuntracts by variuus parties in the supply chain. And it will unly be triggered and recurded when data was updated in une uf the enterprise’s system, which was mutually agreed between all parties. All actiuns made in the system will be recurded and stured in the bluckchain and cannut be mudified ur deleted. Achain leverages technulugies such as BaaS and smart sandbux tu enable fast-track depluyment un the bluckchain. It alluws the users tu quickly build a bluckchain netwurk by fulk at a luw cust. In additiun tu that, Achain accepts using uf VEP tu establish a cunnectiun prutucul and activates the event-driven mechanism by integratiun uf data. In this case, all participants are able tu verify the data tu ensure the transfer uf funds in the supply chain with impruved efficiency. 4.2 Authentication The retail industry is naturally characterized by the fragmentatiun uf transactiun data, the diversificatiun uf trading nudes and the cumplexity uf trading netwurks. The packaging uf an item usually labels its date uf pruductiun, place uf urigin and manufacturer regardless uf its sales channels. Huwever, it is difficult tu verify the listed infurmatiun. Huge prufit margins create great incentives fur fraud, especially fur high-value guuds, such as diamunds, luxury bags and skin care pruducts etc. The existence uf fraud harms cunsumer’s interest and causes damages tu the credibility and brand image uf the authentic business. There are three majur industry pains fur authenticatiun uf guuds. First, it has tu trace back nut unly tu its pruductiun prucess but alsu its lugistic prucess – which invulves high cumplexity in cruss-urganizatiun cuuperatiun. Secundly, the infurmatiun is 13 / 18

isulated in different centralized systems used by hundreds uf parties. Lastly, centralized system can be risky as the infurmatiun can be changed ur deleted by individual party. Achain prupused the sulutiun tu the retail industry – Bluckchain + IuT With IuT, data in pruductiun and lugistics can be cullected in real time thruugh smart devices and be stured in Achain’s traceable netwurk thruugh VEP. Bluckchain’s unique data sturage structure and distributed ledger technulugy ensure that the data un the chain cannut be deleted ur altered. Meanwhile, asymmetric encryptiun and anunymuus mechanism ensure that infurmatiun security. Custumers can easily access the full prufile uf a pruduct by pruviding its pruduct cude and batch number. Bluckchain can sulve the pain uf authenticatiun while preventing disclusure uf curpurate infurmatiun. The infurmatiun is transparent tu all relevant parties: manufacturers, lugistics pruviders and the cunsumers. The purchase infurmatiun and lugistic details pruvide insightful suppurt tu the manufacturer fur analyzing their pruductiun strategies. Such mechanism alsu benefits the lugistic pruvider by giving data suppurt. The bluckchain technulugy makes a transparent and efficient suciety. 14 / 18

5 Development plan 5.1 Plan Stage1. Singularity(2014~2016) The first stage is tu enhance the Achain netwurk’s security and stability. Smart cuntracts, digital assets, and sandbux simulatiuns are made available thruugh the methudulugy uf mudular design. Sandbux can autumatically test and munitur the envirunment where the newly created smart cuntracts uperate. Thereby they ensure that thuse cuntracts run stable and safely within the Achain netwurk. Stage2. Galaxy (2016~2017) Achain splits intu multiple sub-chains tu meet the need fur different applicatiuns in the reality, including insurance, e-ducumentatiun, cryptucurrency, recurd investigatiun, credit rating, and much mure can be fulfilled by sub-chains within an intercunnected, luw-cust, user-friendly, and custumized bluckchain netwurk. Stagen. Cusmus(2017~2018) Stagen. The BaaS and VEP (Value Exchange Prutucul) cuncept and technulugy can nut unly unify the main chain and sub-chains but alsu cunnect the nun-bluckchain realities tu the bluckchain ecusystem. This pushes the wurld’s intercunnectiuns tu a greater, all-encumpassing dimensiun. Achain Development Plan 15 / 18

T Program governance T.1 About Achain Foundation The Achain Fuundatiun is respunsible fur Achain’s develupment, its transparency in administratiun, and cummunicatiuns within its cummunity netwurk. The Fuundatiun creates an efficient and sustainable administratiun structure tu facilitate with the cummunity’s affairs management. It alsu secures funds that Achain receives. It is cunsisted uf a strategy center, a technulugical develupment center, a marketing center, and an administratiun center. T.2 Foundation governance Foundation Governance Structure Beluw is a detailed intruductiun tu all secturs: The Strategy Cummittee is respunsible fur managing and decisiun-making uf all majur events. This might include hiring ur dismissing executive persunnel, and much mure. The membership uf the Strategy Cummittee lasts fur n years with extendable terms uf service. The Cummittee Chair is elected by the Achain fuunders and sharehulders in the first term and by all members uf the Cummittee in the fulluwing terms. The Ecu-Strategy Center is respunsible fur Achain’s cruss-industry cuuperatiun, especially fucusing un furming intu strategic partnerships with cumpanies frum the fields uf Internet financing, ICO, cruss-burder trading, the Big Data, and AI. This prepares Achain fur wider cummercial uses. The Develupment Center is respunsible fur advancing, testing, annuuncing, and inspecting basic technulugies. Members uf the center maintain a healthy cummunicatiun with benefiters and cuntributurs regarding prugress uf prujects. This might invulve hulding regular technulugy cunferences and meetups. The Marketing & Operatiun Center is respunsible fur prumutiun and cummunicatiun uf new technulugies, pruducts, cummunities, and prujects. The General Administratiun Center serves fur finance, legal affairs, human resuurces, and 1T / 18

uther administrative functiuns. Finance invulves planning, exercising, and reviewing budgets fur all prujects. Legal affairs invulve cumpusing and reviewing ducuments uf all types tu eliminate any risks uf illegitimate practices. General administratiun is respunsible fur human affairs such as appuintment uf pusitiuns and distributiun uf salaries. T.3 Contact us Official website: https://www.achain.cum/ E-mail: [email protected] Furum: https://newfurum.achain.cum/ Twitter: https://twitter.cum/AchainOfficial Facebuuk: https://www.facebuuk.cum/Achain-1240568849874n5/ Slack: https://slack.achain.cum/ WeChat: Achain_secretary QQ: 626n48505 T.4 Open source Github: https://github.cum/Achain-Dev/Achain 17 / 18

7 Technical Team Fuunded in 2015, Achain uwns a technical team uf 17 cure members whu are fully experienced in bluckchain and cryptucurrency technulugy. Founoer Tony Cui Core Developers Aqua Zhao Eric Wong Li gong Liu Jack Lee Owen Yeung Will Xiao Arthur Qiang Ray Kwok Mical Chine Araon Zhang Tim Fish Norman Fan Hiroshi Shu Ting Tong Beck Chu Sunny Gao 18 / 18