SourceLess Blockchain

PROVISIONAL SOFTWARE PATENT No.US63/294,483
License Granted: 05 January 2022

INVENTION TITLE: Blockchain and Distributed Ledger Technology software, Web3, Str.Domain ecosystem, creating a new web platform with different protocols than www, encrypted and decentralized.

The ecosystem on which SourceLess is based on, will not permit the execution of any malware or computer viruses; based on blockchain characteristics proof, blockchain identity will not permit any type of bad intentions on the Internet, and the digital identity will be white labeled by KYC and AML and will not permit identity theft, thus the information will be protected by blockchain and DLT, Peer-2-Peer in networking with 256-bit encryption from Web 2.0 to Web 3.0;

If web or www allows the existence and execution of malware, expensive hosting or too many resources are running without a purpose, the hosting will be distributed in the whole network, improving hosting armament and carbon reduction by almost 40%; We are having a 90% hosting use and also a bulletproof security web, since everything is public and identity stays proved for all users in the ecosystem. ABSTRACT Blockchain and Distributed Ledger Technology software, Web3, Str.Domain ecosystem, creating a new web platform with different protocols than www, encrypted and decentralized is disclosed.

We are having a 90% hosting use, we are having a bulletproof security web, since everything it’s public and identity proved for all users in the ecosystem.

ABSTRACT

Blockchain and Distributed Ledger Technology software, Web3, Str.Domain ecosystem, creating a new web platform with different protocols than www, encrypted and decentralized is disclosed. We are having a 90% hosting use, we are having a bulletproof security web, since everything it’s public and identity proved for all users in the ecosystem.

SourceLess Umbrella Technologies

These entities work together to advance technology and provide innovative solutions in various fields.

The SourceLess Labs Foundation is a non-profit organization that conducts research and development in various scientific fields, with a particular focus on emerging technologies. The foundation aims to advance scientific knowledge and promote the development of cutting-edge technologies that can make a positive impact on the world.

SourceLess Inc. is a technology company that provides blockchain software solutions for businesses of all sizes. The company focuses on providing innovative and user-friendly solutions for complex problems.

SourceLess DMCC is a legal entity that operates within the cryptocurrency industry, and has obtained a license to engage in activities related to this field. The company aims to provide its clients with a range of investment options and trading solutions, and to maximize returns on crypto investment through rigorous analysis and strategic planning.

SineFonte Capital is a private equity firm that invests in emerging technologies and innovative start-ups. The firm aims to identify and invest in promising technology companies and help them grow and succeed. SineFonte Capital works with entrepreneurs and start-ups to provide funding, mentorship, and strategic guidance, with the goal of creating successful and sustainable businesses.

In summary, SourceLess Technologies is a group of entities that work together to promote technological innovation and development, while providing solutions for businesses and investment opportunities for clients. With a focus on emerging technologies and a commitment to excellence, the company aims to make a positive impact on the world.

SourceLess Blockchain ISO 20022 Compliant

ISO 20022 is a globally accepted messaging standardization approach (methodology, process, repository) to be used by all financial standards initiatives as a common platform for the development of messages. It was introduced in 2005 by the International Organization for Standardization to help financial institutions streamline their communication infrastructure by using the same language for all financial communications. 

Today, ISO 20022 is used by payment systems in over 70 countries.  It is estimated to be the de facto standard for high-value payment systems of all reserve currencies, supporting 80% of global volumes and 87% of value of all global transitions in the coming years. This common language is now an emerging global and open standard for payments data, and is the expected future standard of fintech innovation and competition. ISO 20022 utilizes richer, higher quality data than other standards, driving improved payment outcomes that can easily adapt and are not controlled by a single interest. According to SWIFT, the benefits of ISO 20022 specifically include:

• Better data– ISO 20022 enables richer, better structured, and more granular data for payments messages.
• Higher quality payments– higher quality data means more transparency and more remittance information for customers, which means better customer service.
• Improved analytics– less manual intervention is required, compliance processes are more accurate, and fraud prevention measures are improved.
• A foundation for end-to-end automation– with a single standard for all business domains and processes, new services are more easily created, and straight-through processing is enhanced.
• Uses modern technology– ISO 20022 uses XML (Extensible Markup Language) technology, which defines rules for encoding documents in a format that’s readable by both humans and machines. This allows for fast and single integration of systems, even if a financial institution is running a legacy platform. 
• Worldwide adoption– ISO 20022 is already becoming more pervasive, almost 200 market infrastructure initiatives are implementing the standard or are considering adopting it. 

Payment clearers and central banks are migrating payment messages to the new format on a phased basis over the next 3 years. When the phased migration is complete MT format messages will no longer be used for payment processing.

ISO 20022 messages are intended to be used in five business areas:

• Payments,
• Securities,
• Trade Services,
• Cards,
• Foreign exchange.

Dates to migrate payment processing to the new format have been communicated by country clearing organizations. However, the other four business areas timelines have not been announced yet.

According to ISO20022.org, the first focus of ISO 20022 is on international (cross-border) financial communication between financial institutions, their clients and the domestic or international ‘market infrastructures’. ISO 20022 messages replace message types developed under an older standard, ISO 15022.  These older message types are used by the SWIFT electronic payments network. These have been ubiquitous for 40 years. The new ISO 20022 message types are known as SWIFT MX messages.

The Bank of England cites the following advantages of ISO 20022 messages over the older ISO 15022 messages:

• Flexibility – adapts to changes more easily;
• Harmonization – over 70 countries have adopted;
• Compliance and regulation – richer data aids transparency of transactions;
• Resilience – interoperability allows rerouting;
• Enriched data – better and more complete reference information;
• Competition and innovation – fueled by flexibility;
• Straight-through processing – better data leads to less intervention;
• Analytics – improved decision making based on better data.

The older ISO 15022 messages that are being replaced by ISO 20022 are used by SWIFT members including banks, money brokers and security broker dealers, clearing systems, corporates, non-bank financial institutions and others.

There are also service provider outside of SWIFT who have adopted MT-like messages for the services they provide.  They are likely to feel pressure to support ISO 20022 style messages, in which case their customers may also have to make the switch.

The switch to ISO 20022 is already underway.  Some settlement systems and clearing houses in South American countries began supporting the new messages as early as 2007. Some of the most important financial services providers in Europe and the United States will make the change in 2021 and 2022. If you are sending or receiving SWIFT MT messages then you will have to adapt your workflows to the new style of messaging.  These changes are likely to impact not only the payments process, but in the future will also impact reconciliations, confirmations, cash management, liquidity management and other business functions.

Because support for the older style of messages is likely to wane quickly, doing nothing is probably not a viable strategy.  You may be able to outsource transformations between the older messages and the new ISO 20022 messages, but this is likely to be acceptable only as an interim measure.  Most organizations will find that they need to adapt their systems to the new messaging standard.

Disclaimer

The SourceLess Blockchain Whitepaper is provided solely for informational purposes, and while every effort has been made to ensure the accuracy of the information contained within it, SourceLess Blockchain does not guarantee the correctness of any conclusions reached. The whitepaper is not intended to provide any express or implied warranties, including but not limited to warranties of suitability for a particular purpose, agreement, usage, or trade balance.

Readers should be aware that the details in the whitepaper may contain errors of interpretation and may not fulfill the legal rights of third parties. SourceLess Blockchain assumes no liability for any damages or losses resulting from the use or reliance on this whitepaper, whether direct, indirect, consequential, compensatory, incidental, actual, commendable, or special, even if the possibility of such damages has been disclosed.

SourceLess Blockchain cannot be held responsible for any damages, losses, costs, or expenses of any kind resulting from the use of this document or its contents. This includes, without limitation, any loss of business, income, profits, data, goodwill, or other intangible losses. The whitepaper is not approved by any governmental authority and may not be shared, reproduced, or transmitted to any other entity without the prior written consent of SourceLess Inc.

Entities in possession of this whitepaper should inform themselves of any legal or regulatory restrictions that may apply and seek professional advice if necessary. Additionally, the whitepaper must not be transmitted to any country or territory in which its circulation or content is prohibited or restricted.

This document outlines the risks associated with using the information in the document, and sets out the conditions under which the document can be used,and should not be used as a substitute for professional advice.

INTRODUCTION

From the start of human evolving point until nowadays there have been several revolutionary moments. Since the discovery of the wheel, all the way to the combustion engine, written press or Internet foundation, the world has been in a continuous change and expansion.

In order to get to its current form, the Internet, which appeared in 1977 in the form of a small number of interconnected computers, carrying a small amount of data, has encountered drastic changes. Currently, the amount of data which can be transferred is limited only by the capacity of the system storage.

For interconnection, there is no need of wires and communication has advanced therefore and has become a necessity to everyday life. However, even if this evolution opened up new opportunities, several problems have also increased, such as: human trust has reached a critical level, being obvious in any filed and the vulnerability of intrusion has expanded considerably.

In fewer words, the Internet resembles the blockchain way of function, exchanging value instead of information.

Before we discuss blockchain technology let’s start a quest from the early days of internet to have a deeper landscape about the evolution of the www and transition to WEB3. Unlike others technologies: light bulb or the telephone, the internet doesn’t have a single inventor, instead it has evolved over time as a community collaboration and effort.

WEB1 – Read (ex. Reading a newspaper without interaction with source of the information)

History

During the Cold War scientists and military experts concerned about what might happen in the event of a Soviet attack on the nation’s telephone system, could destroy the whole network of lines and wires that made efficient long-distance communication possible. In 1962 at M.I.T laboratories J.C.R. Licklider (contribution to the development of the Internet consists of ideas, not inventions) proposed a “galactic network” of computers that could talk to one another. In 1965, another M.I.T. scientist developed a way of sending information from one computer to another that he called “packet switching.” Packet switching breaks data down into blocks, or packets, before sending it to its destination, without packet switching, the government’s computer network where vulnerable to enemy attacks like telephone wires.    

At the beginning of the 1970s the four-nodes of the ARPANET became fully functional (each host had a specific set of protocols and to login users were required to know the host’s own ‘language’), to find a solution to this frustrating problem, a specific group of researchers, most of them still graduate students have developed the host-to-host software.

To communicate with the whole group, a member needed to send a simple Request for Comment (the RFC system was invented by Steve Crocker in 1969 to help record unofficial notes on the development of ARPANET and become official documents of internet specifications, communications protocols, procedures, and events) Group was initially called the Network Working Group (NWG) and was led by a UCLA graduate student, Steve Crocker, in 1972 group changed its name in International Network Working Group (INWG) and the leadership passed from Crocker to Vint Cerf (recognized as one of “the fathers of the Internet”, sharing this title with TCP/IP co-developer Bob Kahn).

ARPANET LOGICAL MAP – martie 1977

Offspring the RFC and the NGW are called web-logs, web forums, email lists. 1970 the ARPANET had its first host-to-host protocol, the Network Control Protocol (NCP). By December 1970 the original four-node network had expanded to 10 nodes and 19 hosts computers. Four months later, the ARPANET had grown to 15 nodes and 23 hosts.

International nodes located in England and Norway were added in 1973, they did not belong to ARPANET, successively other world-wide nodes were added, moving from a small experimental network to a network that includes the whole world confronted the ARPANET’s designers with a new challenge: how to make different networks, that used different technologies and approaches, able to communicate with each other?

The concept of “Interneting”, or “open-architecture networking”, first introduced in 1972, illustrates the critical need for the network to expand beyond its limited restricted circle of host computers.

By the end of the 1970s, a computer scientist named Vinton Cerf had begun to solve this problem by developing a way for all of the computers on all of the world’s mini-networks to communicate with one another. He called his invention “Transmission Control Protocol,” or TCP, later, he added an additional protocol, known as “Internet Protocol”. TCP/IP protocol transformed the internet into a worldwide network. Since the 80s, researchers and scientists used it to send files and data from one computer to another.

At the beginning of the 90s a computer programmer Tim Berners-Lee introduced the World Wide Web, an internet that was not simply a way to send files from one place to another but was itself a “web” of information that anyone on the Internet could retrieve, Internet that we know today was born.

In 1992 a group of students and researchers at the University of Illinois developed the first browser name Mozaic (named later Netscape), a user-friendly way to search the Web: It allowed users to see words and pictures on the same page for the first time and to navigate using scrollbars and clickable links.

From that moment the use of the web for commercial purposes encouraged users and companies to build their own website to sell goods directly to customers (e-commerce) and later social platforms appeared.

WEB2 – (participatory web or social web)
Read <-> Write

The term Web 2.0 was used for the first time in 1999 when Internet move toward to a system that actively engaged the user (users are encouraged to provide content, rather than just viewing it).

Users publish articles and comments, user create accounts on different sites which leads to the participation of content creation. Web 2.0 gave rise to web apps built by users or provided by a third party (ex. WordPress), as well as social media sites (Wikipedia, Facebook, Twitter, Tik Tok, Instagram, etc.).

Some elements that supported the development of www:

• Navigation: access to information through a software application/browser (friendly user-interface).
• Data storage: storing data in cloud with solutions out-of-the-box and free.
• Communications: app using the internet for communication at low cost or free and multiple modes of communication: telephony, video sessions, email (chat apps).
• Basic trust: trust in information provided by a third party, trust in security solutions provided by someone else, trust in a financial institution that will hold your money and allow the transfer of money.
• Self-publishing platforms: the possibility offered to content creators to build a blog or website.
• Social platforms: interactive digital channels that focus on the creation and sharing of thoughts, ideas, and information through virtual networks, site allowed users to set up profiles, connect to family and friends, and text them (Facebook, YouTube, WhatsApp, Snapchat, Twitter, Tik Tok -> text, images, videos, interactive media, links, clicks, tags, ratings, social connections, emoticons.
• E-commerce: virtual marketplace where you can buy goods a few clicks away from the comfort of your home or office, whether we’re talking about clothes, electronics, medical insurance, vacation tickets, insurance, etc.

The first Worldwide Web was created in 1990 by Sir Tim Berners-Lee then recruited Nicola Pellow to write the Line Mode Browser, which displayed web pages on dumb terminal. Documents and media made available through web servers and can be accessed by programs such as web browsers.

Netscape one of the first browser was a desktop application and their strategy was to use their dominance in the browser market to establish a market for high-priced server products and grab the PC market dominated by Microsoft.

Unlike other browsers at the time that had to download the entire page before displaying it, Netscape showed graphics and text as the website loaded and was revolutionary feature in the era of low internet speed.

In year 1997 companies started providing dial-up internet access, people could connect to the internet through telephone line, telephone line plugged into a modem and the other end plugged into the phone jack, telephone and the internet could not be used at the same time.

Web browser had the role to deliver content from World Wide Web or from local storage and display on user device, the process starts with the input of a URL (Uniform Resource Locator www.SourceLess.io) from the user’s keyboard.

The information can be accessed from a desktop, laptop, tablet, PDA by using a browser via HTTP/S protocol (usually the information is stored on a server and is accessed by the client, client-server communication) for multimedia content and interactive web applications, gaming, e-commerce, socialization. Software applications are built upon the Web as opposed to desktop applications.

Blockchain technology was created to solve the problem of doubt and in order to achieve data transfer in a safe and controlled way, without the need for a centralized authority to coordinate it.

The infrastructure of this technology was set in 1991, when Scott Scornetta and Stuart Haber considered developing for the first time a cryptographically secured block system. The project was supposed to grow the following year when, together with Dave Bayer, they integrated the Merkel-type trees into the existing technology, optimization that improved the functionality of blockchain, making it possible to store and send information between several blocks of data.

A blockchain is a thriving list of records/data, called blocks, which are linked together and secured with the help of cryptography. Identical to data structure, a blockchain is a simple chained list, in which the links between elements are connected to each other. This way, each block contains a link to a previous block, a timestamp and the transaction data.

By design, blockchains are resistant to data alteration. A blockchain is a transparent and distributed ledger, in which can be recorded transactions between two members in an efficient, testable and permanent way.

In order to be used as a distributed ledger, a blockchain has to be managed by a peer-to-peer collective network that follows a validating new blocks protocol. Once recorded, the data from any block can no longer be modified retroactively without altering the blocks following the previous one, a measure that requires the majority participants in the network’s consent.

Blockchains are secured by construction and remain an example of a distributed computing system with high tolerance to attackers or uncooperative computers. Therefore, the issue of decentralized consent has been solved using blockchain technology. This makes blockchain technology suitable for recording events, medical history as well as other management activities: identity management, transaction processing, documentation origins, commercial route of food products tracking or voting systems.

CHAPTER 1. MARKET DESCRIPTION

WWW – Web 2.0 AND ITS PROBLEMS

Overview: owner of your data, security issues, a third party trading your data for commercial purposes (you don’t know who accesses your information and for what purpose), data loss if you no longer have the possibility to pay the cloud subscription, machine learning algorithms that provide you with filtered data and limit your access to information.

The development of the world wide web and the evolution to web 2.0 brought with it many advantages and innovations that have transformed the way we live and interact with each other. However, as with any technology, it also comes with its fair share of problems and challenges.

One of the most significant issues with web 2.0 is the question of data ownership. When we interact with websites and platforms, we generate a vast amount of data that can be used to track our behaviour, interests, and preferences. However, this data is often collected and owned by the platforms themselves, leaving us with limited control over how it is used and who has access to it.

Another major concern with web 2.0 is security. As more and more of our personal and financial information is stored online, the risk of identity theft, fraud, and other forms of cybercrime continues to grow. Hackers and cybercriminals are always looking for new ways to exploit vulnerabilities in web 2.0 platforms and systems, putting users at risk of losing their data or becoming victims of financial or other types of fraud.

A related issue is the practice of third-party data sharing, where companies collect user data and sell it to other companies for commercial purposes. This means that our personal information can be traded without our knowledge or consent, and we have no control over who has access to it or how it is being used.

Another problem with web 2.0 is data loss. If we rely on cloud-based services to store our data, there is always the risk that we will lose access to it if we can no longer pay for our subscription or if the service is shut down or discontinued. This can be particularly concerning if we rely on these services to store important documents, files, or other critical information.

Finally, machine learning algorithms and other forms of artificial intelligence are becoming increasingly prevalent on web 2.0 platforms. While these technologies can be used to provide personalized content and recommendations, they can also have the effect of filtering and limiting the information we have access to. This can create so-called “echo chambers” where we only see content that confirms our existing biases and beliefs, and can limit our exposure to new or challenging ideas.

Overall, while web 2.0 has brought many benefits and advantages, it is important to be aware of the challenges and problems that come with this technology. By understanding these issues and taking steps to protect our data and our online identities, we can continue to enjoy the benefits of web 2.0 while minimizing the risks and challenges that come with it.

World Wide Web (current www)

Since its inception in 1977 as a small network of interconnected computers transmitting a limited amount of data, the Internet has undergone dramatic transformations. Currently, the capacity for data transfer is limited only by system storage capacity and communication is wireless. This advancement has become a necessity in our daily lives.

However, despite the new opportunities this evolution has brought, it has also brought about several problems. One such issue is the critical level of trust between humans, which has become apparent in all areas, and the considerable increase in vulnerability to intrusion. In other words, as the Internet has become more complex and ubiquitous, it has also become more vulnerable to security breaches, cyberattacks, and other forms of malicious activity, which can have far-reaching consequences. These challenges have led to the development of new technologies and protocols aimed at enhancing the security and resilience of the Internet, such as encryption, multi-factor authentication, and decentralized systems.

Hosting Issues

Slow loading speed or recurring downtime

For a site to get more traffic, it is necessary to have a considerably faster navigation. Low speed and downtime are some of the biggest website hosting issues, as slow performance will steal site traffic, SEO rankings and conversions. The time of breakdown is the most problematic issue. During that time, not only is your site down, but the web is unavailable and the business opportunities along with your reputation are fading.

Hosting: slow speed & downtime -> resources of the server where you host the domains are shared in some cases between more participants than the server’s capacities and server overloading problems may occur (“shared hosting” – share server processor, ram, hard disk, internet access); your website can get infected (vulnerabilities ) by some of the viruses that came to your server through any of your neighbors who haven’t secured their websites effectively; you must have some technical knowledge for configuring plugins and third-party integration for payment processing or SEO; the location of the server can influence the loading time of the page, a physical route must be traveled from the user who accesses the site to the server where you have hosting.

If a large number of users want to access your site at the same time you can experience a lot of traffic and your site can no longer be accessed; long loading time of large images/video; outdated CMS (Content Management System – is software that is used for creating, managing and editing a website -> ex. WordPress, Drupal, or Wix) you must regularly install updates for functionalities and optimization; you have to rent Dedicated IP/Static IP (many hosting companies do not offer a dedicated IP and your website share the same IP with the other sites on the server -> if the web server has 50 websites and all sharing one IP, then the network admin has to configure host header or virtual host that is unique to your site such as www.yourdomain.com to your site); must buy SSL (Secure Sockets Layer) encryption-based Internet security protocol ensuring privacy, authentication, and data integrity in Internet communications.

Access to the technical support service can be slow (you are put on a waiting list and you don’t know what priority your ticket has) evasive customer service representative at the end of a seemingly impenetrable phone tree or endless wait in a chat queue (they’re supposedly available 24/7/365); the hosting services are based on subscription and you are not the owner of the domain for your site, if you stop paying the subscription you lose all the data and you blog or business.

Web 2.0 has given rise to a number of hosting issues, with many websites and applications relying on expensive centralized servers to store and process user data. This centralized approach not only limits the scalability of the web, but also creates security and privacy concerns, as these servers can become easy targets for malicious attacks. In addition, the current web infrastructure is controlled by a small group of powerful corporations, who control the data and set the rules for accessing and sharing it.

SourceLess aims to solve many of these problems by using distributed hosting solutions, such as peer-to-peer networks and decentralized cloud storage. By spreading data across multiple nodes, SourceLess networks can offer increased security and privacy, as well as greater scalability and flexibility. In addition, these networks are designed to be more open and transparent, with users having greater control over their own data and the ability to participate in decision-making processes. This could help create a more democratic and user-driven web, which is more resilient, fair, and open to innovation.

A computer is useful when we use it, but the real power comes when computers communicate/talk to each other, many of the tasks we imagine a computer does: sending email messages, watching Netflix, using navigation applications – Waze, Google MAPS), surfing on YOUTUBE, reading articles from Britannica involve computers communicating(these computers may belong to different companies, be located geographically differently, people and programs using them may use different human and computer languages).

Any given interaction between two computer or hundreds of systems need to know how they are expected to communicate (How they start a conversation? Whose turn it’s to communicate, if the information was transmitted correctly and their integrity is verified? How do they end the conversation? Computers do this through protocols).

Lack of security

Everyone wants their site data safe. When your provider (the only one who can help you with hosting process problems) is not available, it can be really inconvenient.  When it comes to hosting types, a shared one is probably the least secured, due to low level of privacy.

There are a lot of web hosting companies which cannot protect your data against hacking or identity theft and they often offer a false sense of security in order to take over the hosting facilities.

Slow or unresolved customer support

In the world of technology, customer support plays a crucial role in ensuring the smooth operation of systems and applications. Whenever an issue arises, a timely response is essential for mitigating any potential negative impact on the end user’s experience. Slow or unresolved customer support can result in serious consequences, including the loss of valuable work time or delays in meeting important deadlines.

In many cases, the effectiveness of customer support determines the level of satisfaction and loyalty of customers. Therefore, it is essential for hosting providers to establish efficient and reliable support systems to quickly address any issues that may arise. This can include providing support through various channels such as email, chat, or phone, and ensuring that technical staff are available 24/7 to assist with any technical problems.

By prioritizing responsive and effective customer support, hosting providers can ensure that their customers have access to the necessary resources to address any issues they may encounter, leading to a more positive experience and stronger relationships with their customers.

     Excessive cost of a web hosting and its limitations

     Web hosting services are essential for any website to function and be accessible on the internet. However, one of the most common issues with web hosting is the excessive cost of the service, which can often come as a surprise to customers. It can be perplexing to understand how some companies offer free hosting services, while others charge exorbitant fees. In addition to high costs, many web hosting service providers do not disclose the limitations of their hosting services in advance. This means that customers may not fully understand the scope of the service offered by the web hosting company, and they may encounter limitations that affect the performance and functionality of their website.

Moreover, the excessive cost of web hosting services may also be a result of the type of hosting plan and the features it includes. For example, shared hosting plans, which are the most affordable option, come with certain limitations such as restricted resources, limited bandwidth, and slower page loading times due to the shared nature of the hosting environment. On the other hand, more advanced hosting plans, such as VPS or dedicated hosting, offer greater control, customization, and scalability, but they come at a higher cost.

To avoid surprises and misunderstandings regarding the cost and limitations of web hosting services, it is important to carefully review the hosting plans and their features before making a decision. Additionally, customers can seek recommendations and read reviews from other users to get an idea of the quality of customer support and the level of service provided by the web hosting company.

     ERRORS RELATED TO IP ADDRESSES

    Failed connections to local files or shares

     Sharing issues are probably the most difficult network issues to be solved, due to the number of components in need of a correct configuration.

The issues related to IP addresses can often lead to failed connections to local files or shares, which are among the most complex network issues to be resolved due to the complexity of the network components that require proper configuration. Sharing problems can arise due to conflicts between different security environments, which can make it difficult to establish proper interconnectivity between workstations. Even different versions of the same operating system can use slightly different security models that can further complicate the resolution of these issues.

In such cases, it is important to carefully analyse the network architecture, IP addressing schemes, and security policies to identify the root cause of the problem and apply the appropriate solutions. This may involve adjusting firewall rules, configuring network settings, or modifying security policies to ensure that different network components can communicate with each other effectively.

It is also important to maintain a consistent security posture across all network components to ensure that any potential vulnerabilities are quickly identified and mitigated before they can be exploited by malicious actors.  

Slow internet performance

     Slow network performance is often caused by network congestion or poor-quality connections, which may have deteriorated over time. Congestion can be caused by factors such as high network traffic, and can result in decreased network performance. It is important to note that network congestion may not necessarily be related to a reduction in available bandwidth, as a single overloaded port on a switch router can significantly impact network performance. In the case of leased lines, where dedicated bandwidth is expected, slow network performance can be particularly frustrating. Even after conducting speed tests, it may be found that the network is not reaching its full potential. Troubleshooting network congestion can be a complex process, requiring a thorough analysis of the network infrastructure and traffic patterns to identify and resolve the root cause of the problem.

    WWW/HTTP domains

     When Tim Berners-Lee, the inventor of the World Wide Web, made the statement “I would like to see people enrolled in a cheap data plan by default. I would like them to get it for free,” he was expressing his vision of a more equitable and inclusive internet.

     The current internet doesn’t give you ownership of your domain and just allows you to rent it for a while. This means that it can offer you these data but with regulations and a lot of conditioning, fact that leads to other expenses and technical and logistical problems: IP, hosting etc. Current domains can be transporters of viruses which a computer is not able to exterminate.    

In many countries, internet access can be expensive, making it difficult or impossible for some people to afford. This can create a digital divide, where people without access to the internet are at a disadvantage in terms of accessing information, education, and opportunities that are increasingly available online.

Berners-Lee’s statement suggests that he would like to see internet access treated more like a basic utility, such as water or electricity, that everyone should have access to by default. He advocates for affordable, if not free, data plans to help close the digital divide and ensure that everyone has equal access to the internet.

From an academic and technological point of view, this statement is important because it highlights the role of technology in shaping society and the need for technology to be used in a way that promotes equality and inclusivity. It also raises questions about the responsibilities of governments and technology companies to ensure that everyone has access to the internet, and the potential benefits and drawbacks of treating internet access as a basic utility.

Security

     In a centralized system with a common server and a commonly known network architecture we can observe different types of vulnerabilities, based on a very defined attack point, to which is added the human factor. In these conditions, those vulnerabilities can persist and also cause damage. In recent years, individuals and institutions (public or private) which had used centralized systems, also faced ransomware attacks.

     The vulnerability of networks can manifest on 2 levels:

• The possibility of modifying or destroying information, i.e., attacking its physical integrity;
• The possibility of unauthorized use of information, i.e., its leakage from the settled web of users.

Threats to the security of a computer network can have the following origins: human made or natural disasters, equipment failures, human operating or manipulating errors, or fraud. Several computer security studies estimate that half of the costs involved in solving these incidents are due to wilfully destructive actions, a quarter to accidental disasters and another quarter to human mistakes. Analysing the wilfully threats, we can distinguish two main categories: passive attacks and active attacks.  

Passive attacks – are those attacks in which the intruder notices the information he is passing by through the “channel”, without interfering with the flow of messages. As a result, only traffic analysis is performed by reading the identity of the communicating parts and learning the length and frequency of these messages from the channel, even if the content is unintelligible.

Passive attacks have the following common characteristics:

• Do not cause damage (no data are2333323 deleted or changed);
• Violates privacy rules;
• The main scope is “listening” to the data exchanged throughout the network;
• Can interfere in a variety of methods, such as surveillance of telephone or radio links, exploitation of the electromagnetic radiation emitted or routing of data through additional but less protected nodes.

Active attacks – are those attacks in which the intruder engages either in stealing messages or in modifying, resuming or inserting false messages. This means that he can delete, delay or modify messages, insert false or old messages or change the order of messages either in a certain direction or in both directions of a logical channel. These attacks are extremely worrying, as they change the state of the computer systems, data or communication systems.

These are the following types of active threats:

• Identity theft – is the attack in which one entity claims to be another entity; For example, one user can try to substitute himself for another, or one service can claim to be another service with the intention of storing confidential data (credit card number, passwords or encryption algorithm key). Identity theft is usually accompanied by another active threat, such as replacing or modifying messages.
• Replay – this attack occurs when a message or a part of it is repeated with the intention of producing an unauthorized effect; For example, one can reuse the authentication information of a previous message: in bank accounts, the resumption of data units involves duplication and/or other false changes in the account value.
• Modifying messages – this form of attack causes the message data to be altered by modifying it, inserting something false or deleting it. It can be used for example to change the recipient of a loan. Another use may be the change of the recipient/sender field of an email.
• Denial of service – this attack occurs when an entity fails to perform its own function or when certain actions prevent another entity from performing its own function;
• Service repudiation – occurs when an entity refuses to recognize an executed service. It is obvious that in electronic funds transfer apps, the repudiation of the service by both the sender and the recipient must be avoided at all costs.

     When it comes to active attacks, some programs created with a destructive purpose and, which sometimes essentially affect the security of computers are also enrolled. There is technology which can be used to present the different possibilities of attacking a system.

This vocabulary is well popularized by “stories” about “hackers”. Attacks generally involve either reading unauthorized information or destroying (partially or totally) data or computers, the most serious aspect being the potential possibility of infestation through the network or even copies of floppy disks.

Among these destructive programs we mention the following:

• Viruses – are programs inserted into applications which are multiplying on their own in other programs in the resident memory space or disks; Then, either they completely saturate the memory/disk space and lock the system or, after a finite number of multiplications, they become active and enter into a destructive phase.
• Software bomb – is a procedure or part of code included in a “normal” application, which is activated by a predefined event; The author of the bomb announces the event, leaving it to “explode”;
• Worms – have similar effects to the ones of bombs and viruses. The main difference is that they don’t reside in fixed locations and don’t duplicate themselves; they move around all the time, making them difficult to be detected. The most famous example is The Internet Worm, which removed a part of the internet from its function in November 1988.
• Traps – are special accesses to the system, which are normally reserved for remote loading procedures, maintenance or for developers of some applications. However, they allow access to the system, circumventing the usual identification procedures;
• Trojan Horse – is an application that has a very well-known use function and that, in a hidden way, also fulfills another function:  it does not create copies.  For example, a hacker can replace the code of a normal ‘login’ control program through another code, which does the same, but additionally copies to a file the name and password that the user types in the authentication process. Subsequently, using this file, the hacker will very easily penetrate the system.
• Application layer attacks – web application development is becoming more and more popular, everything we need in our daily life is available on the Web: google docs, emails, calculators, storage, emails, news, weather, maps; we use phone/computer applications to store photos, videos, passwords, card credentials, confidential information, identification documents, medical records, password generation/recovery ,processing payments, obtaining loans, selling goods and all are available via the internet mainly on Application Layer. The application must be available on Port 80 (HTTP) or Port 443 (HTTPS), application layer is the most difficult to secure because this layer its most exposed to outside world.

Types of attacks

SQL Injection: SQL injection is a type of attack that takes advantage of vulnerabilities in SQL Server instances by inserting malicious code into strings. When these strings are later parsed and executed by SQL Server, the injected code is also executed, leading to unauthorized access or modification of data. As such, any procedure or application that constructs SQL statements is potentially vulnerable to SQL injection attacks. Even parameterized data, which is commonly used to mitigate SQL injection risks, can be manipulated by a skilled attacker who is determined to breach the system’s security.

To protect against SQL injection attacks, it is important to thoroughly review all procedures that construct SQL statements, including stored procedures, dynamic SQL, and other ad hoc queries. In addition, it is recommended to use parameterized queries to reduce the risk of SQL injection attacks, as well as to sanitize user input and validate all data inputs to ensure that they are within the expected range and format. Finally, regularly patching the SQL Server instance and implementing strong access controls and authentication mechanisms can help prevent SQL injection attacks.

In-Band SQLi (Classic SQLi): attacker use the same communication channel to launch attack and retrieve information. Two most common types of in-band SQL injection are Error-based SQLi and Union-based SQLi.

Error-based SQLi – technique that relies on error messages thrown by the database server to obtain information about the structure of the database.

Union-Based SQLi – technique that leverages the UNION SQL operator to combine the results of two or more SELECT statements into a single result which is then returned as part of the HTTP response.

Inferential SQLi (Blind SQLi) – no data is actually transferred via the web application and the attacker would not be able to see the result of an attack in-band (which is why such attacks are commonly referred to as “blind SQL Injection attacks”). Instead, an attacker is able to reconstruct the database structure by sending payloads, observing the web application’s response and the resulting behaviour of the database server.

Boolean-based (content-based) Blind SQLi – submitting a SQL query to the database and forcing the application to produce a different response depending on whether the query returns TRUE or FALSE, this allows an attacker to infer if the payload used returned true or false, even though no data from the database is returned.

Time-based Blind SQLi – sending a SQL query to the database and forcing it to wait period of time (in seconds) before answering, the response time will tell the attacker if the query result is TRUE or FALSE, an HTTP response will either be delayed or returned immediately, attacker must enumerate a database character by character, this attack is often slow. Out-of-band SQLi – SQL injection occurs when an attacker is unable to use the same channel to launch the attack and gather results, this technique relies on the database server’s ability to make DNS or HTTP requests to deliver data to an attacker.

Cross-Site Scripting (XSS)

     Malicious scripts are injected into trusted websites, attacks inject malicious code into the running application and executes it on the client-side XSS attacks is to send this malicious code to other users, sometimes infecting their devices with malware or stealing sensitive information, this type of website application vulnerability can give the attacker full control of the user’s browser and can be extremely dangerous to any website.

     The malicious content sent to the web browser often takes the form of a segment of JavaScript, but may also include HTML, Flash, or any other type of code that the browser may execute. The variety of attacks based on XSS is almost limitless, but they commonly include transmitting private data, like cookies or other session information, to the attacker, redirecting the victim to web content controlled by the attacker, or performing other malicious operations on the user’s machine.

     XSS attacks can generally be categorized into two categories: reflected and stored. There is a third, much less well-known type of XSS attack called DOM Based XSS.

     Reflected XSS – it requires an attacker to make a user load their script rather than injecting it directly through the web app itself. This limits its reach but also means that there are multiple ways to set this, perform any action within the application that the user can perform, view any information that the user is able to view, modify any information that the user is able to modify, initiate interactions with other application users, including malicious attacks, that will appear to originate from the initial victim user.

     Stored XSS Attacks – the injected script is permanently stored on the target servers, such as in a database, in a message forum, visitor log, comment field, etc.

     Blind Cross-site Scripting – sub-type of stored/persistent cross-site scripting where the web application stores the payload sent by an attacker and only executes it later – at a different time or in a different place, possibly even in another web application.

     DOM Based XSS (The Document Object Model) is a programming interface that defines how to create, modify or erase elements in an HTML or XML document, enables attackers to inject a malicious payload into a web page by manipulating the client’s browser environment.

     Usage of Components with Known Vulnerabilities

• these components can be defined as the third-party.
• apps or software or platforms that are outdated and contain bugs that are public to all, exploit the bugs to put the security of the whole website under severe threat.

     Broken Authentication

Broken authentication refers to weaknesses in two areas:

• session management and credential management,
• the attackers to impersonate legitimate users online,
• apps require user identification to start working,
• if authentication and session management functions fail,
• attackers can gain access to user accounts without entering passwords.

Session Management – web session is a sequence of network transactions associated to the same user within a period of time, web applications can track sessions before and after authentication, each user have unique ID and attackers use stolen session IDs to impersonate users.

Credential Management – systems or mechanisms that allow the administration of the life cycle of user credentials (issuance, modification, or revocation). This system is part of what is known as the public key infrastructure (PKI), which is a set of roles, policies, hardware, software, and procedures to create, manage, distribute, use, store and revoke digital certificates and manage public-key encryption.

Phishing attacks

In the 1990s, it was common for hackers to be called Phreaks. What passed for hacking in those days was referred to as phreaking. So, the act of using a lure a more or less authentic-looking email to catch or trick an unsuspecting computer user adopted the “ph” from phreaking to replace the “f” in fishing and became modern-day phishing.

Today the most common type of fraudulent communication used in a phishing attack is still email, but other forms of communication such as SMS text messages are becoming more frequent.

Threat actors use any means they can conceive to get a user to follow a link to an illegitimate webpage and enter their computer or banking system login credentials or download malware.

Unvalidated Redirects & Forwards

Attackers use a redirect to forward users to a malicious website where they can steal sensitive data using malicious code or social engineering methods.

HTTP flood attack

An HTTP flood attack is a type of distributed denial-of-service (DDoS) attack designed to overwhelm a targeted server with HTTP requests. Once the target has been saturated with requests and is unable to respond to normal traffic, denial-of-service will occur for additional requests from actual users, utilizing many devices infected with malware, an attacker is able to leverage their efforts by launching a larger volume of attack traffic, the site becomes unavailable.

Presentation Layer Attacks (Syntax Layer) – the presentation layer is the lowest layer at which application programmers consider data structure and presentation (deals primarily with data presentation), instead of simply sending data in the form of datagrams or packets between hosts, it is where machine-readable code gets processed into something the end user can use later in the application layer, formatting, conversion and encryption happen happens on this layer.

SSL Sniffing – a TLS/SSL termination proxy is a proxy server which is particularly used by an entity to intercept and handle incoming TLS/SSL connections, decrypt the TLS/SSL, and then pass on the unencrypted request to one of its highly secure servers, such as Apache HTTP Server, Nginx or HAProxy.

SSL Sniffing is a cyber-attack when a TLS/SSL termination proxy acts as a MitM (man-in-the-middle) intermediary which seizes the protected SSL link. The proxy connects to the server and afterward the customer connects with the proxy.

Unicode Vulnerabilities – similarities of characters and letters from different languages are used (deliberately or accidentally) to confuse and/or trick users, because Unicode contains such a large number of characters and incorporates the varied writing systems of the world, incorrect usage can expose programs or systems to possible security attacks.

This is especially important as more and more products are internationalized. Visual spoofing is an especially important subject given the introduction in 2003 of Internationalized Domain Names (IDN) [IDNA2003].

There is a natural desire for people to see domain names in their own languages and writing systems; English speakers can understand this if they consider what it would be like if they always had to type Web addresses with Japanese characters.

Type of visual spoofing:

• Domain name spoofing, Fraudulent vanity URLs,
• User interface and dialog spoofing,
• Malvertising,
• Internationalized email forging,
• Profanity filter bypassing.

SSL Stripping – SSL stripping is a type of attack that is often used by attackers to downgrade a secure HTTPS connection to an insecure HTTP connection. This attack exposes users to eavesdropping and data manipulation. SSL stripping works by manipulating the user’s connection to a website, making it seem like the connection is secure and the data being sent is encrypted.

When a user connects to a website that uses HTTPS, their connection is encrypted, and they see a padlock icon in their browser’s address bar. However, an attacker can use a variety of techniques to intercept the user’s traffic and replace the secure HTTPS connection with an insecure HTTP connection.

This is often done by using a tool that acts as a “man-in-the-middle” between the user’s browser and the website. The tool intercepts the HTTPS request and strips out the SSL encryption, leaving only the plain HTTP request. The user is then redirected to a fake website, which appears to be the original website, but in reality, is controlled by the attacker.

The attacker can then monitor the user’s activity and steal their sensitive information, such as login credentials, financial information, or personal data. To avoid SSL stripping attacks, it is important to always use secure HTTPS connections and avoid connecting to untrusted websites. It is also recommended to use two-factor authentication and keep software up-to-date to minimize the risk of attacks.

Session Layer Protocols:

• SIP (Session Initiation Protocol),
• PPTP,
• 245 (Call Control Protocol for Multimedia Communications),
• PPTP/L2TP,
• SMB (Server Message Block),
• NFS (for Network File System),
• PAP (Password Authentication Protocol).

Function of session layer:

• Session Establishment (establish a connection between the session users),
• Normal Data Transfer (exchange of data between user entities can either be a two-way alternate -half-duplex- or two ways simultaneous -full- duplex-),
• Dialogue Management (session relationship is full-duplex, but the upper layer sometimes communicates in half- duplex, keep track of whose turn it talks and is known as dialog management),
• Session Release (releasing the session connection: user abort, provider abort, orderly release, negotiated release),
• Synchronization (enables a phase to insert checkpoint, synchronization points, into a data stream, if a crash occurs during the data transmission, it can be retransmitted from the checkpoint).

Session Hijacking – user in a session can be hijacked by an attacker and lose control of the session altogether, where their personal data can easily be stolen while you’re checking your credit card balance, paying your bills, or shopping at an online store.

DNS Poisoning – poisoning happens when fake information is entered into the cache of a domain name server, resulting in DNS queries producing an incorrect reply, sending users to the wrong website.

Telnet / FTP sniffing – captures the data and sends the info to another program which displays the information in a easy to read format including everything typed by the users.

Man-in-the-Middle Attack – is a type of eavesdropping attack, where attackers interrupt an existing conversation or data transfer, after inserting themselves in the “middle” of the transfer, the attackers pretend to be both legitimate participants, exploit the real-time nature of conversations and data transfers to go undetected.

Cache poisoning – means that at least some of the information stored in the cache is not legitimate and leads to a destination with malicious intentions, a cache is a temporary storage location that allows faster retrieval of frequently used data and files, the perpetrator enters fake information into the DNS cache to redirect users from the intended server to a different server.

DNS Redirect – is a technique where a client computer is directed to contact a different server than the one it initially requested. The result is that the client may end up on a different domain than they originally intended, redirect allows you to point one domain name to another, achieving the same result as if you had changed your original domain’s name servers.

Transport Layer – it provides services such as connection-oriented data stream support, reliability, flow control, and multiplexing, this layer defines protocols that help even further ensure the integrity of network communications, is essential for the source to deliver a complete message (messages are divided in packets).

TCP hijacking – was one of the most popular techniques for intruders to gain unauthorized access to Internet servers, TCP protocol makes it possible to fix errors during packet transfers, unauthorized user can gain access to another user or client authorized network connection, TCP doesn’t provide any packet encryption and monitoring a network has access to a lot of valuable information contained inside TCP/IP packets, attackers sniff a network, spoof TCP packets, and then use those spoofed packets to disrupt connections, or worse, hijack a connection and make changes to sensitive data.

TCP SYN Flood Attack – the TCP connections are sent at a much faster speed than the processing capacity of the machine causing it to saturate and ultimately slow down. It exploits the three-way handshake mechanism which is deployed to send SYN messages to the victim’s server.

UDP Flood Attack – packets are sent to a targeted server with the aim of overwhelming that device’s ability to process and respond. The firewall protecting the targeted server can also become exhausted as a result of UDP flooding, resulting in a denial-of-service to legitimate traffic, the server first checks to see if any programs are running which are presently listening for requests at the specified port., If no programs are receiving packets at that port, the server responds with a ICMP (ping) packet to inform the sender that the destination was unreachable.

Smurf Attack – smurfing attacks are named after the malware DDoS.  Smurf, which enables hackers to execute them, the attacks are named after the cartoon characters The Smurfs because of their ability to take down larger enemies by working together, overloads network resources by broadcasting ICMP echo requests to devices across the network, devices that receive the request respond with echo replies, which creates a botnet situation that generates a high ICMP traffic rate, overwhelm the computer network and make it inoperable

Desynchronization Attack – sequential number in incoming packets differs from the expected sequential number, both communication endpoints dismiss received packets, at which point remote attackers are able to infiltrate and supply packets with a correct sequential number.

Energy Drain Attack – advisory provide the attacking environment or directly attack on the energy sources, the name energy drain shows   the wasting of energy and making dead the node. Attackers may use malicious nodes to inject forgery or corrupt reports or data into the network or generate large amount of traffic in the network, this consumes the energy of the node because Forgery reports will cause false alarms that waste real world response efforts.

Network Layer (Internet Protocol) – is the part of the Internet communications process where these connections occur, by sending packets of data back and forth between different networks, setting up the routes for data packets to take, checking to see if a server in another network is up and running, and addressing and receiving IP packets from other networks, vast majority of Internet traffic is sent over IP.

Spoofing – is a type of scam, in which a criminal, disguises an email address, display name, phone number, text message, or website URL to convince a target that they are interacting with a known, trusted source, often involves changing just one letter, number, or symbol of the communication so that it looks valid at a quick glance (ex. https://sourceles.io/, one letter is missing).

Teardrop – exploits the fragment offset field in the IP header to produce buggy fragments which are then delivered to the target machine. Unable to rearrange the fragments, the victim keeps on accumulating the fragments until it crashes, accumulating at the victim’s side like teardrops and ultimately it leads to the machine crash.

Replay Attack – eavesdrops on a secure network communication, intercepts it, and then fraudulently delays or resends it to misdirect the receiver into doing what the hacker wants, no advanced skills to decrypt a message after capturing it from the network, data is stored without permission and then transferred to fool the receiver into performing false identity verifications, duplicate transactions and other actions.

Wormhole – two attackers locate themselves strategically in the network, then the attackers keep on listening to the network, and record the wireless information, attack involves two or more than two malicious nodes and the data packet from one end of the malicious node is tunneled to the other spiteful/malicious node at the other point, and these data packets are broadcasted. In the wireless network, this malicious node even listens to the packets not intended for them and then tunnels them to the other end of the tunnel.

Routing Attack – an intruder assumes the identity and privileges of another node so as to consume its resources or to throw the normal network operation off, when a device has multiple paths to reach a destination, it always selects one path by preferring it over others, this selection process is termed as routing.

Denial-of-service Attack – perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host connected to a network, flooding the targeted machine or resource with superfluous requests in an attempt to overload systems and prevent some or all legitimate requests from being fulfilled.

Sybil Attack – uses a single node to operate many active fake identities (or Sybil identities) simultaneously, within a peer- to-peer network. This type of attack aims to undermine the authority or power in a reputable system by gaining the majority of influence in the network, the name of this attack was inspired by a 1973 book called Sybil, a woman diagnosed with a dissociative identity disorder the fake identities serve to provide this influence.

Sinkholing Attack – is a technique for manipulating data flow in a network, redirect traffic from its intended destination to the server of your choosing, node promotes itself as the shortest path to the base station and tries to guide the traffic from other nodes towards itself.

RIP Security Attack – Routing Information Protocol and it is one of the oldest routing protocols being used today, basic idea is to keep issuing fake RIP Response messages, containing basically whatever we need (in terms of routes), the other routers will eventually insert our malicious entries in the tables and start routing the packets accordingly.

Ping of Death – attack that occurs when an attacker crashes, destabilizes, or freezes computers or services by targeting them with oversized data packets, a correct Internet Protocol version 4 (IPv4) packet is formed of 65,535 bytes, and most legacy computers cannot handle larger packets, sending a ping larger than this violates the IP, so attackers send packets in fragments which, when the targeted system attempts to reassemble, results in an oversized packet that can cause the system to crash, freeze, or reboot.

Denial-of-service Attack – The larger address field of IPv6 solves a number of problems inherent in IPv4, but the size of the address itself might be a potential problem for the TCP/IP administrator, as a result, IPv6 has the capability to automatically assign an address to an interface at initialization time, in this way, a network can become operational with minimal action on the part of the TCP/IP administrator. Many companies that have already started implementing IPv6 are in no rush to close their administrative ports (SSH, RDP, Telnet, VNC, etc.).

Command and Control Attacks – attack that involves tools to communicate with and control an infected machine or network, to benefit for as long as possible from a malware attack, a hacker needs a covert channel or backdoor between their server and the compromised network or machine, infect the targeted machine or network with malware via a specific form of cyberattack, such as phishing, social engineering, or malvertising, an infected computer or device is called a zombie, and once compromised, the malware establishes communication with the C2 server to acknowledge it is ready to receive commands from the controlling server.

Data Link Layer – this layer transforms data between nodes on the network segment over across the physical layer, transfer data between network entities and may also provide the means to detect and possibly correct errors that can occur in the physical layer, delivery of frames between nodes on the same level of the network. Data-link frames, as these protocol data units are called, do not cross the boundaries of a local area network.

The protocols of the data link layer respond to service requests from the network layer, and perform their function by issuing service requests to the physical layer.

ARP poisoning/ARP spoofing (address resolution protocol) – cyber-attack carried out through malicious ARP messages, ARP attack is difficult to detect, and once it’s in place, the impact is impossible to ignore, a hacker could gain control of every document on your network. Hacker sends fake ARP packets that link an attacker’s MAC address with an IP of a computer already on the LAN, after a successful ARP spoofing, a hacker changes the company’s ARP table, so it contains falsified MAC maps and the contagion spreads.

MAC Flooding – The process of overloading CAM table of switch by sending huge amount of ARP replies to it is known as MAC flooding, when the switch gets overloaded, it enters into hub mode and forwards the traffic to all the computers connected on the network, attacker could able to capture all the traffic using sniffing software.

Spanning-tree attacks (STP) – it allows switches to create a loop free logical topology, even if the network has physical loops within it, the STP operates by moving switch ports into blocking or forwarding states depending on the segments they connect to.

Three basic steps in which STP establishes its topology:

• electing the root bridge,
• selecting one root port on every non-root bridge and selecting one designated port per network segment,
• after about 50s every port on a switch is placed either in forwarding or blocking state.

Disrupt the switch’s spanning-trees, destabilize their MAC address-tables and hold the network in a constant state of reelecting the root bridge and non- existent switch the root bridge can take control.

Multicast brute force – traditional IP communication allows a host to send packets to a single host (unicast transmission) or to all hosts (broadcast transmission), IP multicast provides a third possibility: allowing a host to send packets to a subset of all hosts as a group transmission. it is difficult to conduct attacks with multicast traffic since the first-hop router will not forward IP multicast traffic unless there is a listener for the group. The first hop can be attacked in various ways with multicast packets.

Network saturation attacks, Multicast state attack, a sender could attempt to become the PIM DR, sending PIM hellos, a sender could spoof AutoRP RP-discovery or BSR bootstrap message, a sender can send to any valid multicast group unless this is filtered, the sender can use the source IP address of a legitimate sender, and override content in parts of the network.

Switch looping – multiple connections between two network switches or two ports on the same switch connected to each other, The loop creates broadcast storms as broadcasts and multicasts are forwarded by switches out every port, the switch or switches will repeatedly rebroadcast the broadcast messages flooding the network.

VLAN hopping – attacks – Virtual LAN is a logical method of grouping Layer-2 switch ports on a local switch into different broadcast domains, VLAN hopping is a type of network attack which allows frames from one VLAN to pass into another VLAN, this enables adversaries to send traffic to a VLAN, which their host should not be able to reach. Two main methods of VLAN hopping attacks are Switch spoofing and Double tagging.

STP malfunction attacks – involves an attacker spoofing the root bridge in the topology, attacker has access to switch ports that are able to become trunk ports, he can introduce a rogue switch into the network. The attacker can connect the rouge switch in his network and the switch will negotiate trunk link with switch in the company.

DHCP starvation – Dynamic Host Configuration Protocol server is responsible for issuing IP addresses to devices on its network, A DHCP IP address allocation transaction depends on four types of packets: discover, offer, request, and acknowledgement.

Hostile actor sends DISCOVER packets until the DHCP server thinks they’ve expended their available pool, clients looking for IP addresses find that there are no IP addresses for them, and they’re denied service. Additionally, they may look for a different DHCP server, one which the hostile actor may provide. And using a hostile or dummy IP address, that hostile actor can now read all the traffic that client sends and receives.

NDP spoofing – Neighbor Discovery Protocol is the IPv6 replacement for ARP, include router discovery, neighbor presence, redirects, network options and stateless auto-configuration, attack that allows attackers to intercept communication between network devices. Attacker must have access to the network to send out forged NDP responses. The forged responses advertise that the correct MAC address for both IP addresses, belonging to the router and workstation, is the attacker’s MAC address. This fool both router and workstation to connect to the attacker’s machine, instead of to each other.

Physical Layer – The Physical Layer is the lowest layer in the OSI (Open Systems Interconnection) model of computer networking. This layer is responsible for establishing and maintaining a physical link between network devices, which involves providing the mechanical, electrical, and other functional means necessary to transmit and receive data over a network. The physical layer deals with the transmission of raw bits of data over physical connections, and its main purpose is to convert data into signals that can be transmitted over the network medium.

The physical layer deals with a variety of different signals, which can include electrical signals over copper cables, optical signals over fiber-optic cables, radio waves over wireless connections, and even sound waves over acoustic connections. This layer is responsible for managing the encoding and decoding of these signals, and also handles other aspects of the transmission process such as signal attenuation, signal amplification, and noise reduction.

The Physical Layer is responsible for defining the characteristics of the network medium, such as the maximum distance between devices, the data rate that can be transmitted, and the type of cabling that can be used. It also provides basic error detection capabilities to ensure that data is transmitted accurately.

Functions Performed by Physical Layer: maintains the data rate (how many bits a sender can send per second), performs Synchronization of bits, helps in Transmission Medium decision, helps in Physical Topology (Mesh, Star, Bus, Ring), provide Physical Medium and Interface decisions, it provides an interface between devices (like PC’s or computers) and transmission medium, has a protocol data unit in bits, hubs, Ethernet, etc. device is used in this layer, provides an important aspect called Modulation, which is the process of converting the data into radio waves by adding the information to an electrical or optical nerve signal, provides Switching mechanism wherein data packets can be forward from one port (sender port) to the leading destination port.

Threats of all kinds can menace the physical layer:

• malicious insiders,
• malfunction or sabotage,
• degradation,
• overload,
• natural disaster and so on.

Even the most seemingly insignificant component — like a cable — if compromised or attacked could bring down an entire system.

Wiretapping – is a way to get information about people without them knowing his is done through, as the name suggests, wires, this involves exposing gadgets’ wires and connecting a third-party wire to it, people can eavesdrop on personal businesses like calls, emails, and text messages.

Jamming – interfere with reception of transmitted signals, while intelligent or smart jamming targets specific parts of the signal to interfere with, Digital Radio Frequency Memory (DRFM) systems significantly enhance the probability of disrupting wireless communications because they are able to capture precise and coherent replicas of signals, manipulate these signals, and then retransmit these modified signals- all within tens of nanoseconds.

Bluejacking and Bluesnarfing – Bluejacking is a technology based on Bluetooth that is used to send anonymous messages between 2 devices which are connected by Bluetooth. Bluesnarfing is hacking someone’s information illegally from a Bluetooth connected device through Bluetooth, active Bluetooth is necessary in both cases.

Physical destruction – a successful cyber or physical attack on industrial control systems and networks can disrupt operations or even deny critical services to society, refers to the protection of people, property, and physical assets from the risk of physical actions and events, such as fire, flood, natural disasters, burglary, theft, vandalism, and terrorism.

Web 2 drawbacks

The current WWW faces several challenges that threaten its security, privacy, and reliability. Addressing these problems will require a multifaceted approach that involves increased transparency and accountability, improved security measures, and better protection of user data and privacy. Additionally, the development of alternative, decentralized web technologies that prioritize security, privacy, and user ownership of data, such as Web3, may provide solutions to some of the problems faced by the current WWW.

The www problem (web2) – power is held by a central authority (a contract between two entities still needs one or more validators -> banks validate balance -> legal companies validates signature and legal requirements); identity thief; the loss of money; misinformation; human trust mechanism; high costs of security solutions; the loss of identity (social account); single point of failure; money transfer fees (Wester Union, PayPal) micropayments (poor people); cyber security big problem (fishing, smishing, vulnerable browsing, ransomware attacks); software licenses high costs (dependence on third parties e.g., if you want to open different photos, text, video you need Office, Adobe, WhatsApp, Gmail, Yahoo); need permission to use it.

The World Wide Web (WWW) has revolutionized the way we communicate, access information, and conduct business. However, with the increased use and reliance on the web, several problems have emerged that threaten the security, privacy, and reliability of this global network.

One of the most pressing issues of the current WWW is the problem of data ownership and privacy. With the rise of social media and cloud computing, users are often required to relinquish ownership of their personal data and information to companies that provide these services. This can lead to the collection and sale of user data, as well as the possibility of data breaches and cyberattacks, which can expose sensitive information to malicious actors. Additionally, the use of algorithms and AI systems to analyse and manipulate user data can also have negative implications for privacy and personal autonomy.

Another issue is the lack of transparency and accountability in the algorithms and systems that govern the web. Search engines, social media platforms, and other web-based services use algorithms to curate and filter content, often leading to a distorted view of reality or the promotion of misleading or harmful content. Additionally, the opaque nature of these algorithms and the companies that create and use them make it difficult to assess their impact on individuals, societies, and the web as a whole.

Web security is also a significant problem, with web-based attacks becoming increasingly sophisticated and frequent. Malware, phishing, and other forms of cyberattacks can compromise personal and corporate data, leading to data breaches, identity theft, and financial loss. The security of websites and web applications is also a concern, with vulnerabilities and flaws in code that can be exploited by attackers.

The problem of reliability and stability of the WWW is also a significant issue. The web is a complex network of interconnected systems, and any failure or downtime can have a significant impact on individuals and organizations. For example, outages or slowdowns can disrupt critical services, such as e-commerce, healthcare, and emergency services, causing significant economic and social costs.

We traveled all this way from the emergence of the Internet to Web3 and blockchain technology to understand why the emergence of these technologies was necessary and natural.

Web 3 advantages

SourceLess offers many advantages over traditional web systems. Its decentralized nature, high level of security, transparency, efficiency, and inclusivity make it an ideal platform for a wide range of applications. As SourceLess continues to evolve and improve, we can expect to see more and more applications and use cases for this innovative technology.

What issues SourceLess fix it (web3) – lifetime ownership: hosting, domains, personal and business data, image, documents; military grade security wallet; zero transaction fees; you can access web2 through web3 will all security included from the start; improves security and integrity; web3 native; public and private key to sign transactions; nodes that validates transactions; permission less and public; transparency and traceability; security and integrity; DeFi; DAO; Smart contracts to buy and sell assets – all party can be sure for monetary exchange – code validates the process; Immutability.

SourceLess is the latest version of the internet, which is built on blockchain technology. It provides a decentralized and trustless platform for users to interact with each other and transact without the need for intermediaries or third-party entities.

One of the most significant advantages of SourceLess is its decentralized nature. In traditional web systems, data is stored on centralized servers, which are managed by third-party entities. This puts the control of data in the hands of a few organizations, which can lead to issues such as data breaches, censorship, and privacy violations. With SourceLess, data is distributed across a network of nodes, which are owned and operated by different individuals. This makes it difficult for any single entity to control or manipulate the data.

Another advantage of SourceLess is its security. Traditional web systems are vulnerable to cyberattacks, as centralized servers are a prime target for hackers. In contrast, SourceLess uses blockchain technology, which is known for its high level of security. Each transaction on the network is verified and validated by a network of nodes, making it virtually impossible to manipulate or hack.

SourceLess also offers greater transparency and immutability. Because each transaction is recorded on a blockchain, it becomes a permanent and transparent record that cannot be altered or deleted. This makes SourceLess ideal for applications such as supply chain management, where transparency and immutability are critical.

In addition to its security and transparency, SourceLess is also more efficient than traditional web systems. Because there are no intermediaries involved in transactions, transactions can be executed more quickly and at a lower cost. This makes SourceLess an ideal platform for micropayments and other types of transactions that are too small or too costly to execute on traditional web systems.

SourceLess is a more democratic system than traditional web systems. With traditional web systems, only a few entities control the data and the flow of information. With SourceLess, anyone can participate in the network, and each participant has an equal say in the decision-making process. This makes it a more democratic and inclusive platform for all.

BLOCKCHAINS

     Most blockchains are designed as a decentralized database which functions as a distributed digital ledger. These blockchain records store up data in blocks, which are organized in a chronological sequence and are linked by cryptographic evidence.

The creation of blockchain technology has brought many advantages to a variety of industries, ensuring increased security in environment with trust problems. However, its decentralized nature also brings in some disadvantages. For example, compared to traditional centralized database, blockchains have limited efficiency and require increased storage capacity.

Ledgers have been around for s thousands of years, heart of every single economic transaction (recording transaction) for payments, selling goods, moving property or any type of asset. It is also known as the principal book of accounts as well as the book of final entry. It is a book in which all ledger accounts and related monetary transactions are maintained in a summarized and classified form.

Most blockchains are designed as a decentralized database which functions as a distributed digital ledger. These blockchain records store up data in blocks, each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree, where data nodes are represented by leaves).

The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. Many have described this as a most disruptive technology of the decade, especially the financial markets could be the most affected ones.

Database (electronic database) – A database is an organized and structured collection of electronic information. The main purpose of a database is to facilitate storage, retrieval, modification, and deletion of information in an efficient and controlled manner. The information in a database is stored in a structured manner, typically in the form of tables, which are similar to spreadsheets. The data in these tables can be easily accessed and managed, allowing users to modify, update, and control the data as needed.

Databases are widely used across different industries and fields to store different types of information, including but not limited to people, products, orders, and logs. In addition to providing easy access and organization of data, databases offer several other advantages over traditional file-based data storage systems.

For example, databases are highly scalable and can handle large amounts of data, making them suitable for use in applications with high data volumes. They also allow multiple users to access and work on the same data simultaneously, increasing collaboration and productivity. Additionally, databases provide powerful data querying and searching capabilities, enabling users to quickly find and retrieve the information they need.

There are various types of databases, including relational, NoSQL, and object-oriented databases. Relational databases are the most common and are based on the relational model, which organizes data into tables and defines the relationships between them. NoSQL databases, on the other hand, are designed to handle unstructured data, and object-oriented databases store data in objects with properties and methods

In summary, databases are an essential tool for managing electronic information in a structured and organized manner. They offer several advantages over traditional file-based data storage systems, including scalability, multi-user access, powerful data querying capabilities, and support for different types of data.

Most databases use structured query language (SQL) used in programming and designed for managing data held in a relational database management system (RDBMS). Database Management Systems (DBMS) are software systems used to store, retrieve, and run queries on data. A DBMS serves as an interface between an end-user and a database, allowing users to create, read, update, and delete data in the database.

Types of Databases

Relational databases – organizes data into rows and columns, which collectively form a table, data is typically structured across multiple tables, which can be joined together via a primary key or a foreign key. These unique identifiers demonstrate the different relationships which exist between tables, and these relationships are usually illustrated through different types of data models.

Object-oriented databases – an object database is managed by an object-oriented database management system (OODBMS).

The database combines object-oriented programming concepts with relational database principles.

Distributed databases – consists of two or more files located in different sites, the database may be stored on multiple computers, located in the same physical location, or scattered over different networks.

Data warehouses – is a system that aggregates data from different sources into a single, central, consistent data store to support data analysis, data mining, artificial intelligence (AI), and machine learning.

NoSQL databases (nonrelational) – handle huge volumes of rapidly changing, unstructured data in different ways than a relational (SQL) database with rows and tables. The four most popular types of NoSQL databases are key-value databases, document-based databases, graph-based databases, and wide column-based databases.

Graph databases – present data as a collection of nodes (data elements) connected by edges. In this data structure, nodes contain pieces of data, while edges define relationships between them.

Open-source databases – database system is one whose source code is open source; such databases could be SQL or NoSQL databases.

Cloud databases – is a database service built and accessed through a cloud platform, enterprise users host databases without buying dedicated hardware, accessed through a web interface or vendor-provided API.

Multimodel database – store and work with data in multiple formats, such as relational data, graph, JSON or XML documents, spatial data and key-value pairs.

Document/JSON database – nonrelational database that is designed to store and query data as JSON-like documents, document databases make it easier for developers to store and query data in a database by using the same document-model format they use in their application code.

Self-driving databases (autonomous databases) are cloud-based and use machine learning to automate database tuning: security, backups, updates, and other routine management tasks traditionally performed by database administrators.

Blockchain Database – are like databases that are functionally and structurally different. While databases store data using ‘table’ data on the other hand blockchains store data in blocks, every blockchain may be considered a database but every database cannot be considered a blockchain.

Features: decentralized control over the data, does not require an administrator as the exact same copy of data is maintained at each node in the network, real-time information and it allows one to track the history of transactions, impossible for an attacker to tamper with data in the network without breaking the chain, it is only possible to read or add data to the blockchain database, are permission less as anyone can access them, secure and confidential, not recursive as one cannot go back to repeat a task on any record, transparency. – anyone with the right tool can verify the data once written into the public blockchain.

In recent years, blockchain has emerged as a promising technology for a wide range of applications, including databases. A blockchain-based database utilizes a distributed ledger network architecture, which is a type of peer-to-peer network where each node can connect with another using secure cryptographic protocols. This decentralized approach provides a number of advantages over traditional databases.

One key advantage of a blockchain-based database is that there is no centralized node, which means that nodes can collectively take part in the consensus algorithm. This creates a decentralized system, which means that there is no single point of failure. In traditional databases, if the centralized node fails or is compromised, the entire database becomes inaccessible or vulnerable. With a blockchain-based database, on the other hand, the data is distributed across the network, so even if one node fails or is compromised, the rest of the network can still function.

Another advantage of a blockchain-based database is the high level of security it provides. Each block in the blockchain is secured by cryptographic algorithms, making it virtually impossible to tamper with the data stored within it. Additionally, the distributed nature of the network makes it difficult for an attacker to compromise the entire network. This makes blockchain-based databases ideal for storing sensitive or critical information, such as financial data, personal information, or government records.

Furthermore, blockchain-based databases also provide transparency and immutability. Once a transaction has been added to the blockchain, it cannot be modified or deleted, and it is visible to all nodes on the network. This creates a transparent and auditable record of all transactions that have taken place on the network. This feature is especially useful for industries such as supply chain management, where it is important to have an accurate and verifiable record of each transaction.

Blockchain-based Database

Blockchain-based databases have become an increasingly popular solution in recent years due to their ability to provide secure, transparent, and tamper-proof storage and management of data. In essence, a blockchain-based database is a decentralized database that is distributed across a network of nodes or computers. This type of database enables the storage of information in a secure and immutable way, while eliminating the need for intermediaries or centralized authorities.

One of the main benefits of using a blockchain-based database is its high level of security. Due to the decentralized nature of the database, there is no single point of failure or potential attack. Each block in the blockchain is cryptographically linked to the previous block, forming a chain that is extremely difficult to tamper with. In addition, the data is stored in a peer-to-peer network, which means that data is not stored in a central location that can be attacked by hackers or cybercriminals. This decentralized storage makes the data almost impossible to hack, manipulate or delete.

Another advantage of blockchain-based databases is their transparency. Since every node in the network has a copy of the database, it’s easy to track and verify any changes or transactions that are made on the network. Each block in the blockchain contains a hash of the previous block and a timestamp, providing a complete and transparent record of all transactions that have occurred on the network. This level of transparency is particularly useful in industries where transparency is key, such as supply chain management, financial transactions, and voting systems.

Blockchain-based databases are also more efficient than traditional databases when it comes to data management. Due to the distributed nature of the database, there is no need for a central authority to verify and process transactions. Instead, transactions are verified and processed through a consensus mechanism that involves the network’s nodes. This mechanism is called mining and is usually based on a proof-of-work or proof-of-stake algorithm. Mining incentivizes the network’s nodes to process transactions, which means that transactions can be processed quickly and efficiently.

One of the most promising applications of blockchain-based databases is in the area of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Smart contracts can be executed automatically when certain predefined conditions are met, which can streamline a variety of business processes. By using blockchain-based databases to store and execute smart contracts, businesses can automate a variety of processes, including supply chain management, financial transactions, and legal agreements.

BigchainDB – is a blockchain database provided by MongoDB that enables one to add decentralized and blockchain qualities to the application. It also permits the deposition of large-scale applications in numerous use cases. Properties: records stored are immutable and tamper-proof, database is decentralized which means there is no single point of failure, various types of assets can be stored, use of the Tendermint consensus protocol makes it possible for BigchainDB to attain high performance.

Cassandra – open-source NoSQL distributed database that delivers linear scalability, trusted by thousands of companies for high availability without compromising performance. Properties: is a distributed database, fault-tolerant due to its distributed nature as there is no single point of failure, uses Cassandra Query Language (CQL) for querying data from the database, open source, elastic scalability, schema free, column oriented(metadata, actual-data), high performance, peer-to-peer architecture, possibility of integrating Cassandra with other Apache Open-source projects like Hadoop, Apache Pig, Apache Hive, tunable consistency (Eventual consistency and Strong Consistency)

ChainifyDB – provides a layer in which databases can be plugged into the ChainifyDB network, also synchronizes the databases. Properties: communication in ChainifyDb is encrypted between the plugged databases, this database can be seamlessly plugged into any data store or database without affecting the applications running on the databases, seamless and minimally invasive(fits right between the application stack and the established in-house database infrastructure), easy-to-use web frontend(setup, maintenance, and monitoring of chainifyDB networks are all managed from an easy-to-use web frontend), keep your data inhouse(data management layer remains inhouse and simply connects to the chainifyDB cloud).

Modex BCDB – middleware software product that provides a plug-and-play approach for organizations. Properties: offering a real-time experience of data protection, combination of traditional database and blockchain technology, supports multiple databases, provides security while simultaneously managing the data, simplified compliance processes, no migration downtimes, no steep learning curve. Postchain – blockchain platform developed by Chromeby in Sweden, has a network of nodes that maintain a set of data through a proof- of-authority consensus algorithm. Properties: modular-based framework database used for implementing custom blockchains, stores data in an SQL database, the transactions are not written to the database via SQL code.

Blockchain technology was created to solve the problem of doubt and in order to achieve data transfer in a safe and controlled way, without the need for a centralized authority to coordinate it.

Blockchain-based databases offer a range of advantages over traditional databases, including high levels of security, transparency, efficiency, and the ability to execute smart contracts. As such, they have become an increasingly popular solution in a variety of industries, from financial services to supply chain management, and are likely to play an important role in the future of data management and storage.

Blockchain is not a distributed computing system

The infrastructure of this technology was set in 1991, when Scott Scornetta and Stuart Haber considered developing for the first time a cryptographically secured block system. The project was supposed to grow the following year when, together with Dave Bayer, they integrated the Merkel-type trees into the existing technology, optimization that improved the functionality of blockchain, making it possible to store and send information between several blocks of data.

Blockchain is a network which relies on nodes to function properly. The quality of the nodes determines the quality of the blockchain.

For example, the Bitcoin blockchain is powerful and incentivizes nodes to participate in the network. However, the same cannot be true for a blockchain network that does not stimulate nodes, meaning that it is not a distributed computing system in which the network depends on the involvement and participation of nodes.

In comparison, a distributed computing system works to ensure that transactions are verified, that they are registered and also that there is a transaction history for each transaction. Each of these actions are similar to those of the blockchain, but there still exists a lack of synergy, mutual assistance and parallel to each of them.

Clearly, blockchain could be a distributed network, but it lacks the features which make a distributed stem so beneficial for ordinary users or corporations.

    The problem of scalability

    Blockchains are not scalable like their counterpart centralized system. If you have used Bitcoin network before, you would know that transactions are completed depending on the congestion of the network. This issue is closely related to the scalability problem of blockchain policy. However, there has been a growing shift in the wat blockchains technology works.

With the correct evolution of technology, scalability options have also been integrated into the Bitcoin network. The solution would be making transactions outside the blockchain and use it only to store and access information. In addition to this, there are also new ways to solve the scalability problem, including authorized networks or the use of different architectural blockchain solutions e.g., Corda.

The transaction records stored on the blockchain are verified by nodes. However, blockchain technology has issues with scalability where some blockchains take a long time for transactions to be validated. A blockchain’s TPS (transactions per second) is generally lower than a centralized institution like Visa.

Comparing the speed of Bitcoin to VISA transactions, one can quickly notice the major difference: at the moment, Bitcoin can only make 4 to 6 transactions per second, compared to VISA, which can make up to 1700 transactions per second. At this speed, one day it will be able to make up to 150 million transactions per second.

To conclude, we can say that blockchain may not be well equipped for real world application yet and there is still a need for significant improvements before it can be adopted in everyday life.

     Some blockchain solutions consume too much energy

     Blockchain technology was introduced at the same time as Bitcoin’s. Miners are incentivized to solve complex mathematical problems because high energy consumption is exactly what makes these complex mathematical problems not ideal for the real world.

Every time the register is updated with a new transaction, the miners have to solve the problems which will arise, respectively spend a lot of energy. Although not all blockchain solutions work in the same way, there are other consensual algorithms that can still solve this problem.

For example, authorized or private networks do not have these problems due to theirs limited number of nodes. Also, since there is no need for a global approve, they can use effective methods of consent in order to reach it. If you think about the most popular blockchain network – Bitcoin – the problem still persists and requires solving.

To resume, authorized networks are efficient from the energy consumption point of view, while public networks can consume a lot of energy just to stay operational.

Bitcoin uses more electricity annually than the whole of Argentina, analysis by Cambridge University suggests. For verifying any transaction, a lot of energy is used so it becomes a problem according to the survey it is considered that 0.3 percent of the world’s electricity had been used by 2018 in the verification of transactions done using blockchain technology.

Competing miners and giant mining farms burn a disproportionate amount of electricity when compared to the outcome, the creation of the next block. In a world where current energy generation is a climate issue, blockchain processing does not make much sense.

Blockchain is not a distributed computing system – Blockchain is not distributed computer, performing distributed computations, nodes across the world creating something bigger bit by bit. Contrary to what is believed all of the nodes that maintain a blockchain do exactly the same thing: verify the same transactions, record the same thing into a blockchain, they store the entire history, which is the same for all of them, for all time.

     Blockchain data is immutable

     Data immutability has always been one of the biggest drawbacks of blockchain functionalities. It is clear that several systems may benefit from it, including large supply chains, financial systems etc., but if you want to analyse how networks work, the first thing to do it to understand that this immutability can only be present if the network nodes are distributed correctly.

Meaning it is impossible to erase or replace recorded data. Therefore, the blockchain prevents data tampering within the network. The conventional database uses CRUD (create, read, update and delete) at the primary level to ensure proper application operation, and the CRUD model enables easy erasing and replacing of data. Blockchain technology does not allow easy modification of data once recorded, and it requires rewriting the codes in all of the blocks, which is time-consuming and expensive information added must be 100% accurate as even minor human errors become permanent, which may lead to significant issues due to inaccurate data later on.

     To be more specific, a blockchain network can be controlled by an entity if it owns 50% or more of the nodes, fact that is making it vulnerable. Another existing problem is that the data, once written, cannot be removed.

Privacy is one of the human rights. However, if one uses a digital platform running on blockchain technology, then no one can remove its trace from the system if they will no longer want it there. Therefore, there is no way to remove personal data without violating someone’s privacy rights.

Blockchains are sometimes inefficient

     At the moment, there are several blockchain technologies in existence. If you choose the most popular ones, including the blockchain technology used by Bitcoin, you will be able to notice the inefficiency of the system, one of the most important drawbacks of blockchain.

A useful example may be the following: trying to configure the bitcoin miner on my system, I have come to realize that the registry can easily storage up to 100 GB.

This does not favor the data storage which can lead to storage problems for multiple nodes with the intention of becoming part of the network. Clearly, there needs to be a better way to manage this because, whenever the data is updated, the nodes have to replicate it.

In addition, the size of the blockchain is increasing with multiple transactions and nodes so, if it continues to grow, the entire network will be slowed down. On the other hand, commercial blockchains need the network on which they operate to be fast and secure at the same time.

Slowly, these obstacles can be improved with the help of blockchain system solutions. Bitcoin is also trying to overcome these obstacles with the help of Lightning Network (LN).

     Blockchains are not completely secure

    Blockchain technology is more secure than many other platforms. However, this does not imply that it is completely safe. There are different ways in which the blockchain network can be compromised:

     51% attack (sybil): in the 51% attack, if an entity can control 51% or more of the network nodes, then it can take over the control of the network. Doing so, it may modify then the data in the register and also double the expenses. This is possible only in networks where one can control the miners and the nodes.

Afterwards, the private networks are more capable of remaining protected from the 51% attack, while public networks are more vulnerable.

     Double spending: there is still a problem with the current blockchain technology; to prevent duplication of spending, the blockchain network implements different consent algorithms, including proof of stake (PoS), proof-of-work etc. Double expanse is possible only in networks which are vulnerable to the 51% attack.

     DdoS attack: in a DdoS attack, nodes are attacked by congesting the network and knocking it down.

     Cryptographic cracking: another way in which blockchain technology is not secure is because of the cryptographic solution it is using; Quantum algorithms or calculus are more than capable of destroying cryptographic cracking.

Routing attacks – consequences on individual nodes, attacker alter transaction before sending them to peers. Network participants usually can’t see the cyber threat during routing attacks, so everything seems normal. However, behind the visible scenes, hackers have already extracted sensitive and confidential data or tokens.

Mining Malware – hackers use malicious files to access the computing power of victims’ computers and data to mine cryptocurrencies, hackers are placing crypto mining software on devices, networks, and websites.

51% attack (sybil) – miners control 51% and more of the blockchain network’s mining power. After getting enough hashing power, attackers can easily make various transactions and operations through the blockchain network. Private blockchain networks are not vulnerable to 51% attacks. Attackers would be able to prevent new transactions from gaining confirmations, allowing them to alter payments between some or all users, they can reverse transaction and allow double-spend coin.

Finney attack – the Finney attack is a type of double spending attack in the context of Bitcoin, named after Hal Finney who was the first recipient of a Bitcoin transaction and also the first person to comment on the release of the Bitcoin source code. In this attack, the attacker first sends their coins to an address under their control. In the second step, they extract the block containing the transaction, but instead of transmitting it to the network, they make a purchase with the same coin amount used in the first transaction. They then convince the merchant to accept the transaction without waiting for confirmation from the network.

Finally, the attacker transmits the mined block to the network, which includes the first transaction, and the network accepts it as valid. This allows the attacker to spend their coins twice without being detected by the network. It is worth noting that this attack is more difficult to carry out in practice than in theory, as it requires the attacker to be a miner or have a close relationship with a miner to be able to extract and transmit the block quickly enough to avoid detection.

DDoS attack – Distributed deny of server attack it happens when the blockchain network is incapable of adding new transactions sent by its clients for a period of time. Most blockchains have a fixed block size and limit how many transactions fit into a block. By sending spam transactions to the blockchain, attackers can fill the blocks and hinder legitimate transactions from being added to the chain.

Phishing attacks – Cryptographic keys (usually stored in a wallet), you hold the key to your cryptocurrency coins. Disclose that key to an unauthorized party and your funds may be moved without your consent, stealing these keys is analogous to stealing credentials to web2 accounts. Different tactics can be used to reach and trick cryptocurrency users into giving up their private key: monitoring social media for users reaching out to wallet software support and jumping in with direct messages spoofing support to steal one’s private key directly; distributing new tokens for free to a set of accounts (“Airdrop” tokens), and then failing transactions on those tokens with an error message to redirect to a phishing website, or a website that installs coin mining plugins that steal your credentials from your local device; impersonating wallet software and stealing private keys directly; seed phrase p phishing, as part of the registration or account recovery process, unsuspecting victims are asked to enter a recovery phase supplied by the bad actor; typo squatting and impersonating legitimate smart contract front ends.

Eclipse Attack – an attacker creates an create a virtual network `around one node, or user, which allows the attacker to manipulate the affected node into wrongful action, disconnecting the victim from the actual data flow from the network. The attacker obfuscates the isolated node from viewing the legitimate P2P network and starts interacting with the target’s node.

Smart contract attacks – Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. Cannot update or modify a smart contract for security patches after its deployment on a blockchain network, developers must ensure that they implement robust security strategies before deploying on the blockchain network. The attacker interacts with the smart contract and manages to influence the execution of a function/s or the introduction of variables in the contract or to influence how the virtual machine works when the contract is executed.

Timejacking – is a type of attack in which an attacker creates a fraudulent blockchain by adding fake peers to a network with a false timestamp. When computers and machines, separated by vast distances, work in tandem, they usually have to be synchronized. The attacker can manipulate one of the timers of the victim node and create a “poisoned” block. The victim will reject this block, and the rest of the network will successfully accept it, causing a fork in the chain. This attack is possible because blockchain nodes use timestamping to order blocks in the chain, so manipulating timestamps can cause the nodes to lose synchronization with the rest of the network. This attack can allow an attacker to manipulate the ordering of transactions and potentially double-spend coins. Timejacking is a serious security threat and can result in significant financial losses and damage to the reputation of the affected blockchain network. As a result, it is crucial to take steps to prevent such attacks, including using reliable time sources and implementing synchronization mechanisms that can resist manipulation attempts.

Dictionary attack – A dictionary attack is a type of brute-force attack where an attacker tries to guess a user’s password by running through a list of common words and phrases, such as those found in a dictionary, in order to find the correct password. In this type of attack, the attacker uses software to generate potential password combinations and tests them against a cryptographic hash of the password. If the hash value matches the one stored in the system, the attacker gains access to the account or wallet.

A common defence against dictionary attacks is to use a strong password that is not easily guessed or generated by an algorithm. This can include using a combination of uppercase and lowercase letters, numbers, and symbols, and avoiding common words or phrases. Additionally, many systems have implemented password policies that require users to create strong passwords with a minimum number of characters or to change passwords periodically.

In the context of cryptocurrency wallets, it is especially important to use strong passwords and take additional security measures, such as using a hardware wallet, to protect against dictionary attacks and other types of malicious activity.

Cold Wallet attack – A wallet is a collection of private keys, like a key ring (offline wallets,) Attacker create a malware that infect user computer, the final target is hardware wallet chrome application to alter to change the address seen on the screen. Technically speaking, it is not a vulnerability of the cold wallet itself, but rather related to it. Hardware wallets are signing-only wallets that in order to be able to perform basic operations such as transferring funds, would need to connect to a wallet interface.

Hot wallet attacks – To better protect their hot wallets, users must first understand the different attack surfaces that cryware and related threats commonly take advantage of. During the creation of a new hot wallet, the user is given the following wallet data: private key, seed phrase, public key, wallet password (optional). Attackers try to identify and exfiltrate sensitive wallet data from a target device because once they have located the private key or seed phrase, they could create a new transaction and send the funds from inside the target’s wallet to an address they own.

Selfish Mining Attack – mining process that involves a big group of miners, who collabs together and form a group during a mining session, they help each other to expand their mining network and earn profit in form of revenue is called selfish mining. One miner successfully mines a block on the blockchain but does not broadcast the new block to others miners. If the secret miner can then find a second block before the rest of the miners find any new blocks, then the secret miner has now effectively created a branch in the chain that is longer than the chain everyone else is working on. As a standard in most blockchains, the chain with more blocks is considered by the mining network to be the correct chain, as it has the most “proof of work.” So, when the secret miner makes their longer chain public, it invalidates any and all of the blocks discovered by other miners during the time the secret chain was hidden.

Fork-after-withholding – Mining pools consist of a manager and multiple miners. Managers distributed work to the miners, which use their computing power to generate either partial (PPoW) or full (FPoW) proofs-of-work. From a financial point of view, it is not efficient to mine alone, for this reason mining pools were created. Mining pools have become large and important players in the Bitcoin ecosystem., pools can try to game the system to their advantage (and hence disadvantage others, because the total reward is fixed). The activities of mining pools can be interpreted as a game in the Bitcoin system, with each pool choosing its strategy. Pool1 and Pool2 first divide their own computational power into two parts for innocent and infiltration mining, and each pool infiltrates the other using its infiltration mining power.

Private keys

     In order to decentralize the blockchain, it is necessary to give individuals the ability to act as their own bank. In order to access the assets or information stored by the user in the blockchain, they need a private key. This key is generated during the process of creating the wallet and it becomes the responsibility of the user to not misplace it. He also needs to make sure he doesn’t share it with anyone else. If they fail to do so, their wallet integrity is in danger.

In addition, if the private key is lost, users will lose access to the wallet forever. This possibility becomes a disadvantage of blockchain.

Thus, once you lose your key and access to your wallet, no one can recover it. This is a problematic point as not all users are familiar with the current technology and have more and more chances to make mistakes. If there is a centralized authority who is dealing with this issue, then the goal of decentralization is defeated.

     Coordination and implementation efforts

     The start cost of implementing a blockchain technology is a fortune. Even though most blockchain solutions, including Hyperledger, are open sources, they require huge investments from organizations that are willing to pursue them.

There are costs associated with hiring developers, managing a team which surpasses different aspects of blockchain technology, licensing costs if opting for a paid blockchain solutions as well as the maintenance costs associated with the chosen option. For blockchain projects for businesses, the cost can also exceed 1 million dollars.

We suggest that companies which do not trust the idea of blockchain or do not have the necessary funds or budget carefully analyse the market, as well as the advantages and disadvantages before boarding this technology train.

Maturity

     Blockchain technology was born just a decade ago, being still a new technology, which needs time to reach maturity.  Inspecting the market monopoly, one can notice many players trying to solve the problem of decentralization using their unique solution, among which we can name: Corda, Hyperledger, Enterprise Ethereum, Ripple etc.

All in all, it is still too early for blockchain to mature and so, companies will have even less hesitation to adopt blockchain technologies as their foundations are becoming more and more solid.

     Like any other new technology, maturity is another issue blockchain has to solve and therefore, one of its disadvantages.

There is still a lot of work to be done before we see changes in the standardization of blockchain technology. At the moment, there are various options that aim to solve the essential problems but we have to work together to standardize them.

Maturity – Many governments do not recognize the actual value of cryptocurrencies or blockchains, despite their rise in popularity. All in all, it is still too early for blockchain to mature and so, companies will have even less hesitation to adopt blockchain technologies as their foundations are becoming more and more solid.

    Interoperability

     Another disadvantage that blockchain technology suffers from is interoperability. As we mentioned before, there are several blockchain networks, working separately, trying to solve the DLT problem in their unique way. This leads to interoperability problems, where these chains are no longer able to communicate effectively.

The problem of interoperability also persists when it comes to traditional systems or systems using blockchain technology.

Blockchain is the new prototype database, which has solved some of the problems centralized systems are dealing with, such as transactions without intermediary, the time spent on each transaction or unintentional deletion or modification of data in the blockchain. 

Using the benefits of technology such as transparency, trust, multiple copying of transactions and decentralized digital ledger, blockchain technology is reliable and cannot be destroyed and the attacks mentioned above could disrupt the functioning of the system, but not the technology on which it is based.

     Technology used in blockchain is useful and versatile for our world, as it can facilitate most current systems in different industries but it is new and its implementation is too little studied in practice. Blockchain technology promises us a bright future, fraud and deception free due to the benefits of technology.

Developers need to devote more time, practical application and implementation into the already existing systems of the main industrial domains, as blockchains can help businesses, governments and honest and reliable logistics systems.

     Even though blockchain technology implies a lot of challenges, the results of its use weigh more in balance. It is necessary to continue to explore the development and application of blockchain in different areas in the near future, as this new technology can help solve many difficult problems that bother the proper functioning of systems.

There are various blockchain platforms, each trying to solve distributed ledger problems in their unique ways. Each blockchain uses different network protocols, which leads to interoperability issues where the chains cannot communicate effectively. The cross-chain protocol facilitates interoperability between different blockchain networks and enables the exchange of data between several networks. It is also essential as it improves chain efficiency, reduces segmentation, and allows the users to communicate across multiple blockchains more freely. The process of blockchain interoperability is highly restricted, though it can be complicated and complex for the users it ensures safety while transferring data. Since this type of work is still new, it may be hard to find qualified professionals to help blockchain integration companies.

Legal Formalities & Regulation – The adoption of blockchain technology applications may be limited by legal formalities and regulations in some countries. Specifically, in certain regions, blockchain technology has been banned due to its association with cryptocurrency, or due to concerns regarding its high energy consumption and the resulting environmental impact, including carbon footprint.

Additionally, investors may be discouraged from participating in blockchain technology investments due to the lack of clear legal frameworks related to income derived from cryptocurrency, including challenges related to taxation of these incomes. As a result, the regulatory environment in some countries may act as a barrier to the adoption and growth of blockchain technology.

CHAPTER 2. CLASSIFICATION OF BLOCKCHAINS

How Does Blockchain Consensus Work?

In the world of blockchain, a consensus mechanism is a critical component that ensures that all network nodes can make decisions in a decentralized and transparent manner, without requiring a traditional voting process. The primary objective of this mechanism is to prevent malicious nodes/entities from intentionally disrupting the network by cheating.

To achieve this objective, a consensus mechanism is a predefined, specific, and cryptographic validation method that ensures that all transactions on the blockchain are sequenced in a consistent and honest manner across all network participants. Whenever a new data is proposed for addition to the blockchain, any node in the network can suggest it. However, before the proposed data can be added to the blockchain, a consensus mechanism is used to validate the addition of the new data, which involves all nodes in the network reaching some sort of agreement.

The consensus mechanism in blockchain ensures that all network participants have a consistent view of the state of the blockchain, which helps to establish trust and transparency in the network. Through the use of a consensus mechanism, blockchain provides a decentralized, secure and transparent method of validating transactions and creating an immutable and tamper-proof record of information.

In blockchain technology, consensus is the process by which all nodes in the network agree on the contents of the blockchain, i.e., the list of transactions that have been recorded on it. The consensus mechanism is designed to prevent any one node from being able to unilaterally change the contents of the blockchain, which would create a fork in the chain and undermine its integrity.

There are several ways to achieve consensus in a blockchain network, with the most common ones being Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS). In a PoW consensus mechanism, nodes compete to solve a complex mathematical problem, with the winner being rewarded with a newly-minted cryptocurrency unit and the right to add a new block of transactions to the chain. This process is resource-intensive and requires a lot of computing power, making it more difficult for malicious actors to take control of the network.

In a PoS consensus mechanism, on the other hand, nodes stake their own cryptocurrency holdings as collateral to validate transactions and secure the network. This means that the more cryptocurrency a node holds, the more power it has in the network, which makes it easier and more cost-effective to reach consensus. In a DPoS consensus mechanism, nodes elect representatives who are responsible for validating transactions and adding new blocks to the chain. This approach is designed to be more efficient and less resource-intensive than PoW, while still maintaining the decentralized nature of the network.

Ultimately, the goal of any consensus mechanism in a blockchain network is to ensure that all nodes can agree on the contents of the blockchain, without any single node having the power to change it unilaterally. This allows for trust and transparency in the network, which is essential for the adoption of blockchain technology in a wide range of industries.

Proof of Work – nodes are called miners, and they will solve complex mathematical issues with help from their device’s computational power to verify the blocks.

Delayed Proof of Work – is basically a modified version of the Proof of Work, dPoW is not used to achieve consensus on new blocks and, is not considered a consensus algorithm. Instead, it is a security mechanism that is implemented in addition to ordinary PoW consensus rules.

Proof of Stake – selecting validators in proportion to their quantity of holdings in the associated cryptocurrency, allows you to take part in the consensus in terms of how much coins you staked in the network, if you have more coins, your possibility of mining a block will increase.

Delegated Proof of Stake – is a consensus algorithm which is an advancement of the fundamental concepts of Proof Of Stake, system is maintained by an election system for choosing nodes which verify blocks, these nodes are called “witnesses” or “block producers”.

Leased Proof of Stake – modified version of Proof-of-Stake (PoS), it allows users to lease out their stake to miners. Mining nodes, in return, share a part of their earnings with the leaser.

Proof of Stake Velocity – a substitute to the coin’s original proof-of-work algorithm and meant to incentivize active staking in order for coin holders to earn the highest payouts on the coins they are holding.

Proof of Elapsed Time – all the nodes have to wait for a certain amount of time before they can participate in consensus, the time limit is chosen randomly, you can only create a block when you finish the wait time.

Practical Byzantine Fault Tolerance – is the feature of a distributed network to reach consensus even when some of the nodes in the network fail to respond or respond with incorrect information. The objective of a BFT mechanism is to safeguard against the system failures by employing collective decision making (both – correct and faulty nodes) which aims to reduce to influence of the faulty nodes. BFT is derived from Byzantine Generals’ Problem.

Simplified Byzantine Fault Tolerance – SBFT requires about the third part of messages to be sent compared to PBFT and achieves consensus much faster introducing three new mechanisms: nodes are grouped in delegations in increasing authority, first node is considered lead, second node is considered second in charge and so on; each new block is maintained by a specific delegation with pre- determined “open” and “close” timestamps and this information is shared with every other node in the delegation; each node will use it’s internal time to decide when to take certain action and has specific instructions on how to act.

Delegated Byzantine Fault Tolerance – the leader of the nodes is called a delegate, and it has limited power. If the leader tries to manipulate the network, another delegate will replace that node.

Federated Byzantine Agreement – a decentralized version of the Byzantine agreement, in this new FBA system, each node must select a small group (quorum slice) to trust and even join their decision-making group. You don’t need to involve every node in the network, but just a small number of trusted nodes.

     PUBLIC BLOCKCHAIN (permissionless): in a public blockchain, everyone is free to join and participate at the core activities of the network. Anyone cand read, write or audit the ongoing activities from the public blockchain network, which helps maintaining its autonomous nature.

Public blockchains are one of the most widely used and well-known types of blockchains. They are decentralized networks that allow anyone to participate in the validation and verification of transactions on the blockchain. The key characteristic of a public blockchain is that it is open to anyone, meaning that anyone can participate in the network by running a node and validating transactions. This ensures that the network is highly resilient and censorship-resistant, making it difficult for any one entity to control or manipulate the network.

One of the main advantages of public blockchains is their transparency. Since anyone can view the transactions that are recorded on the blockchain, the network provides a high level of transparency and accountability. This makes public blockchains ideal for use cases that require a high degree of transparency and trust, such as supply chain management, identity verification, and voting systems.

However, public blockchains also have their limitations. One of the main challenges of public blockchains is their scalability. As more transactions are added to the blockchain, the network can become congested, leading to slow transaction times and high fees. This has led to the development of new technologies such as sharding and sidechains, which aim to increase the throughput of public blockchains.

Another challenge with public blockchains is the issue of governance. Since public blockchains are decentralized, there is no centralized authority that can make decisions about the direction of the network. This has led to debates and disagreements among the various stakeholders, which can lead to forks in the blockchain or even the creation of new blockchains.

Public blockchains are an important and growing area of technology. They offer a high degree of transparency and accountability, while also being highly resilient and decentralized. However, the technology is still in its early stages, and there are many challenges that need to be addressed in order to make public blockchains more scalable, efficient, and usable for a wide range of applications.

These types of blockchain are open and transparent, it is an open network where nodes can join and leave without the permission of anyone, includes a protocol of incentive mechanism that aims to ensure the correct operation of the blockchain system, no need to use your real name, or identity, everything can be hidden. The public network operates on an incentive scheme which encourages new participants to join and maintain the agile network. Public blockchains offer a particularly valuable solution from the point of view of a truly decentralized, democratized or unreserved operation.

     There are however, some downsides to a public blockchain. The first one would be the high energy consumption required to maintain the distributes public register. Other problems are: incomplete confidentiality and anonymity. This can lead to a weaker security of the participant’s identity. Along genuine collaborators, participants can sometimes include fraudulent members who may be involved in malicious activities such as hacking, theft or network clogging.

Since it is open and highly transparent it is not easy for the government to accept this as they are not controlled by authorities. Transactions are extremely slow and it takes time to process all the transactions in the network.

PRIVATE BLOCKCHAIN (permissioned): a private blockchain allows the selected entry of the verified participants; A participant can join such a private network only through an authentic invitation, after being also verified. A validation is also required to be carried out either by the network operator(s) or through a clearly defined protocol implemented by the network in cause.

A private blockchain is a blockchain that is not open to the public and is typically used within a single organization or group of organizations with a shared interest. Unlike public blockchains, which anyone can join and participate in, private blockchains require permission to access and participate in the network.

Private blockchains offer a number of advantages over public blockchains, including greater scalability, improved privacy and security, and more control over the network. Because access is restricted to a select group of individuals or organizations, private blockchains can be more efficient in terms of processing transactions and verifying blocks. This is because they don’t have to deal with the same level of traffic and competition as public blockchains, which can become congested during times of high usage.

In terms of privacy and security, private blockchains offer the ability to control who can access and participate in the network, which can be important in certain use cases. For example, in a supply chain scenario, only approved parties would be able to access the blockchain, which can help prevent issues like fraud and counterfeiting. Additionally, private blockchains can be designed with specific security features, such as permissioned access, that make them more resistant to hacking and other forms of cyber-attack.

One downside of private blockchains is that they are more centralized than public blockchains, which can limit their decentralization and immutability. This means that there is a greater risk of a single point of failure or corruption, which can compromise the integrity of the network. Additionally, private blockchains require a higher degree of trust between participants, since they rely on a smaller group of validators to maintain the network.

Despite these limitations, private blockchains can be a powerful tool for organizations looking to leverage the benefits of blockchain technology without having to rely on public blockchains. By providing greater control and privacy, they can enable new use cases that would be difficult or impossible to achieve with public blockchains.

     The organization that owns private blockchain decide:

• who can participate in the network,
• how consensus will be achieved between the nodes,
• how mining rights and rewards will be distributed,
• how the ledger will be maintained,
• end of life of the ledger,
• not everyone can run a complete node on the private blockchain,
• make transactions or validate the changes of the blockchain.

The main distinction between public and private blockchains is that the private part controls who is allowed to participate in the network, to execute the protocol, to decide mining rights and rewards and maintain the shared register. The owner or operator has the right to modify, edit or delete entries that are not needed from the blockchain.

     In its truest meaning, a private blockchain is not decentralized and represents a distributed ledger, functioning like a closed, secured database along with cryptography concept foundations. From a technical point of view, not everyone can run a complete node on the private blockchain, make transactions or validate the changes of the blockchain.

CONSORTIUM BLOCKCHAIN (Federated blockchains) – multiple organizations maintain the system, restrictive blockchain that operates in a closed network. similar to private ones but offer a decentralized structure (instead of only one organization, multiple organizations take part in the consortium.

As a result, every organization gets similar treatment, no single entity ruling over the network, and all the other organizations help with that. In reality, you could think of it as a platform where multiple companies come together and share their information if needed. It’s a collaborative environment with read and write for multiple organizations.

A consortium blockchain is a type of blockchain that is designed to be used by a group of organizations that are working together towards a common goal. In a consortium blockchain, the participating organizations share the responsibility of maintaining the network and validating transactions, instead of relying on a single entity to do so, as is the case with private blockchains.

A consortium blockchain is a permissioned blockchain, meaning that only approved entities are allowed to participate in the network. This is different from public blockchains, which are open to anyone who wants to join, and private blockchains, which are operated by a single organization. In a consortium blockchain, the participating entities are usually known to each other and have a pre-existing relationship, such as in a supply chain or a trade finance network.

The consensus mechanism used in consortium blockchains can vary depending on the specific needs of the network. Some consortium blockchains use proof of authority (PoA) as a consensus mechanism, which allows a group of approved validators to validate transactions on the network. This is in contrast to proof of work (PoW), which is used by many public blockchains, and requires participants to solve complex mathematical problems in order to validate transactions.

Consortium blockchains can provide several benefits over other types of blockchains. For example, because the participating entities are known to each other, it can be easier to establish trust and resolve disputes, as there is a pre-existing relationship between the parties. Additionally, because the network is maintained by a group of organizations, there is no single point of failure, which can increase the reliability and security of the network.

Consortium blockchains offer a way for organizations to work together on a shared platform, while maintaining control over the network and the ability to set their own rules and standards. By leveraging the benefits of blockchain technology, consortium blockchains can help organizations reduce costs, increase efficiency, and improve security and trust in their business relationships.

     HYBRID BLOCKCHAIN: this type of blockchain is made through a mix between the private and the public blockchains and supports many customization options, such as allowing anyone to join the authorized network after proper verification of their identity and assigning selected designed permissions to perform only certain network tasks.

These type of blockchain is built in order to grant special permissions to each participant. This allows participants to be able to perform specific functions (reading, accessing and writing information in the blockchain).  

Companies are opting even more now for authorized blockchain hybrid networks, as they can place restrictions during network configuration and control the activities of different participants in the desired roles.

Hybrid blockchains combine the features of both public and private blockchains, giving organizations the ability to tailor their blockchain solutions to their specific needs. A hybrid blockchain can be thought of as a blend of public and private blockchains, where some components are public and others are private.

In a hybrid blockchain, some aspects of the blockchain network are open to the public, while others are kept private for a specific group of participants. This allows for greater flexibility and control, as organizations can choose which aspects of their blockchain solution they want to keep private and which they want to make public.

One of the main benefits of a hybrid blockchain is the ability to take advantage of the benefits of both public and private blockchains. Public blockchains provide transparency and security, while private blockchains provide greater control and privacy. With a hybrid blockchain, organizations can achieve both, while tailoring the solution to their specific needs.

Hybrid blockchains can be particularly useful for enterprise applications, where companies need to balance the benefits of public and private blockchains. For example, a supply chain management system may require public visibility for some transactions, while keeping others private. In this case, a hybrid blockchain can provide the necessary flexibility and control.

     SourceLess Hybrid Blockchain is a blockchain technology that combines the benefits of both public and private blockchains. It enables controlled access as well as freedom, making it a more flexible and secure option. The architecture of SourceLess Hybrid Blockchain is distinct in that it is not completely open to everyone, but still provides key features of blockchain technology such as transparency, integrity, and security.

     In this hybrid blockchain model, users have equal rights to perform transactions, view them, and even modify them if necessary. However, the identity of the users remains secret from other participants until a user transacts with another user. At this point, the user’s identity is revealed to the party they are interacting with through a KYC (Know Your Customer) process.

     The SourceLess Hybrid Blockchain model allows for a more efficient and secure transaction process while still maintaining a level of privacy and control. This makes it an attractive option for businesses and organizations that require a balance of privacy and transparency in their operations.

SourceLess use PoE (Proof of Existence)
Consensus Mechanism

     First of all, we need to make a first distinction between anonymity and confidentiality in the context of transactions of any kind, whether we are talking about financial transactions or data transactions. It is called an “anonymous” transaction when no one knows your identity and a “confidential” when the transaction and its content are unknown.

     In SourceLess Blockchain, anonymity is ensured through the involvement of secure, credible, and accredited companies in the fields of Know Your Customer (KYC) and Anti Money Laundering (AML). When a user creates an account on the blockchain, they remain anonymous at the time of account creation. However, in order to participate in transactions, the user must provide their identity data to a third-party company that is responsible for KYC and AML verification. This third-party company also certifies that the tokenized asset (WNFT) and the registration in the blockchain are accurate representations of the real-world asset.

     This process helps to prevent fraud, money laundering, and other illegal activities while maintaining the privacy and anonymity of users on the blockchain. The involvement of trusted third-party companies adds an additional layer of security and credibility to the blockchain, making it a reliable platform for conducting transactions with confidence.

     The anonymity part only works when the transactions are written in the blockchain and does not violate the law. When a user breaks the law, the force structures can directly access the third-party company providing the KYC & AML services and clearly identify the user who committed the illegality. This rule will coerce SourceLess Blockchain user, through the identity he is assuming and certifying, not to violate the law, fact that demonstrates that our product is considered 100% WHITE LABEL.

     Considered the internet of values

The concept of WEB 3.0 is often referred to as the “internet of values” and is considered to be one of the most disruptive technologies, along with other emerging technologies such as Artificial Intelligence, Internet of Things (IoT), Augmented Reality (AR), and Robotics. It represents a paradigm shift in the way we interact with data and conduct transactions on the internet.

SourceLess Blockchain, an emerging hybrid blockchain architecture, is deeply integrated with WEB 3.0 and is designed to leverage the benefits of the new internet paradigm. SourceLess Blockchain combines the features of public and private blockchains to offer the best of both worlds, including control over access to the network and blockchain-specific functions such as integrity, transparency, and security.

One of the key benefits of WEB 3.0 and SourceLess Blockchain is the ability to create a decentralized internet that provides greater security, privacy, and control to end-users. This can help reduce the risks associated with centralized services, which are often vulnerable to cyberattacks and data breaches.

Overall, WEB 3.0 and SourceLess Blockchain are poised to revolutionize the way we transact and interact on the internet, offering a more secure, transparent, and decentralized alternative to traditional web-based services.

A.R.E.S.

Automatic
Resilient
Execution
Software

A.R.E.S. is a software based smart contract in the SourceLess ecosystem which will govern the entire behaviour of SourceLess components. A.R.E.S. will help implement smart contracts in regular computer-based software and facilitate the governance of account tokenization.

A.R.E.S. has over 900 predefined functions and rules, influenced by Python, Java, GO (Golang), designed to work with all workers (node).

Through A.R.E.S., anyone can create contracts for uses such as the voting process, crowdfunding, auctions and multi-signature wallets. Due to the interoperability of the SourceLess Blockchain with other blockchains such as Solana, Ethereum, Polygon, etc., related software will be recognized and usable (e.g. Solidity, Rust, GO) in the SourceLess ecosystem.

The protection of personal information, but also the browsing security, are the things that Web3 makes possible, the user being able to create his own virtual space without fearing that his private information may be corrupted.

A.R.E.S. “was born” when Alexandru Stratulat decided to create our own programming language which includes over 900 functions that will make the job easier for all the users. For example, if you have the bare minimum coding knowledge, you can easily open up the browser and start creating a website, or do some video editing or even graphic design, only with the help of the patented web3 technology.

     So basically, A.R.E.S. is the leading point to create complex systems that have a long list of useful functions that generate simple and effective solutions to the problems that any tech enthusiast or entrepreneur wants to solve.

     The most important thing you should know about SourceLess is that it comes as a hybrid Blockchain system, both public and private, that allows the user to reveal only the information or data that he wants to share.

     A.R.E.S. and Web 3

     A.R.E.S. as a programming language will allow the integration of AI from OPEN AI, and from ELI (software built by FORMWELT), all in one browser, together creating a “cognitive” Web 3, which will allow SOURCELESS to sufficiently abstract the technology in such a way as to enable an increased user experience.

     This means that every user will benefit from a perfectly secure, fair and transparent Web3. Now, things like building up your own Blockchain or having access to a private messaging service, without intermediaries will become truly possible for those who will use our technology. The practical applications of the platform’s utilities in the business area thus become unlimited.

     Another user benefit derives from the new personalized digital address system implemented by SourceLess, called STR.DOMAIN, which allows each user that decides to buy such a personal address, to have a lifetime access to its own domain. This means that you, the user, will have access to a virtual address inside the platform, which cannot be subject to any control of any third party, meaning either another user, private companies or public institutions.

     Don’t worry, because everything we create was designed to be user friendly. We aim to create an environment where there are no restrictions regarding the implementation of the business ideas that users have, but at the same time ensuring a safe virtual space, where personal information is protected and only what you want to share with others will become visible.

     A.R.E.S. AI – in conclusion

    A.R.E.S. is a critical component of the SourceLess blockchain ecosystem, serving as a software-based smart contract that governs the behaviour of SourceLess components. With its help, smart contracts can be implemented in regular computer-based software, and it facilitates the governance of account tokenization.

     The A.R.E.S. programming language is instrumental in allowing the integration of various forms of AI, such as, OPEN AI, and ELI (software built by FORMWELT), all within a single browser. By combining these various forms of AI, a “cognitive” Web 3 can be created, allowing SourceLess to sufficiently abstract the technology in a way that enhances the user experience.

     The integration of A.R.E.S. and AI creates an innovative solution to complex system design by enabling simple and effective problem-solving for tech enthusiasts and entrepreneurs alike.

     The programming language allows developers to create complex systems with an extensive list of functions, which can generate solutions to a wide range of problems. This flexibility and functionality make A.R.E.S. a powerful tool for developers looking to create cutting-edge systems and applications.

     A.R.E.S. is a vital component of the SourceLess ecosystem, enabling smart contract implementation and governance of account tokenization. Its programming language integrates various forms of AI, creating a “cognitive” Web 3, and providing developers with the necessary tools to create complex systems that generate simple and effective solutions to a wide range of problems.

STR.TALK (Communication)

Str.Talk is a decentralized social media platform built on the SourceLess Blockchain. As a decentralized platform, it operates on a peer-to-peer system without the need for a central administrator. This means that participants, including computers and mobile phones, are linked together on the network with equal permissions and responsibilities for data processing. The use of the peer-to-peer system allows for greater transparency and decentralization, which means that the platform is less prone to censorship and manipulation by a central authority.

The SourceLess Blockchain provides the underlying technology for Str.Talk, ensuring that all data stored on the platform is secure, transparent and immutable. As a result, Str.Talk users can be confident that their personal data is protected from hacking and cyberattacks, and that their interactions with other users are secure and private. Additionally, Str.Talk users can engage with each other in a transparent and tamper-proof environment, which enhances trust and reduces the likelihood of fraudulent activities.

The decentralized nature of Str.Talk also allows for greater user control over the platform. Without a central authority to dictate the rules of the platform, users are free to set their own terms and conditions for participation. This means that the platform can be tailored to suit the specific needs of its users, whether they are interested in sharing personal stories, discussing political issues or promoting their businesses.

The functionalities of Str.Talk platform are similar to the well-known social media platforms already in existence: Facebook, Twitter, Instagram, etc. Instead, information will be encrypted and sent strictly between participants, without going through a central administrator, avoiding information interception and data/identity theft.

Each user will have a Str.Domain (WNFT) identifier, a unique and non-interchangeable datum stored on a digital ledger. This solution will provide all Str.Talk and SourceLess users, of course, with privacy and data security, becoming owners of their own domain/account. Basically, Str.Talk is at the core of a p2p (peer-to-peer) social media communication platform, which tailors its options and functionality to the user.

     The Str.Talk platform is designed to be flexible and adaptable, offering customized features to users based on their industry. Whether the user is an individual, a company, an NGO, or a university, the platform’s features can be optimized to meet their specific needs. For example, if the user is a company, the platform could be customized to support business-to-business communication and collaboration, while a university might require features that support online learning and research.

To provide industry-specific functionality, the Str.Talk platform utilizes blockchain technology, which enables the creation of customized smart contracts that govern the behaviour of the platform. These smart contracts can be designed to meet the specific needs of different industries, and can be used to automate certain processes, such as identity verification or payment processing.

In addition, Str.Talk’s use of blockchain technology means that data is encrypted and sent strictly between participants, without going through a central administrator. This approach provides increased security and privacy for users, as there is no single point of failure or potential target for hackers or cybercriminals.

By offering customizable functionality and robust security features, Str.Talk aims to provide a platform that can meet the diverse needs of a wide range of users, while ensuring that their data and identities are protected at all times.

Overall, Str.Talk is a platform that offers the benefits of a decentralized social media network, including increased privacy, security and transparency, while also providing a platform that is flexible and customizable to the specific needs of its users.

SLNN – SourceLess Ledger Network Nodes

Mesh Internet and Blockchain Hybrid Technology

In the year 2023, a good internet connection is already a necessity. From conversations and paying bills to transferring money and programming electronics and appliances, we use the internet for almost everything. That’s why a more resilient and flexible internet connection is so important.

Although not a new term (the first were developed in the 1990s), Mesh Internet networks are designed to provide sufficient speed and bandwidth for many common Internet activities. In addition, the decentralized nature of mesh networks can make them more resilient to outages, ensuring more stable and reliable Internet connections.

Instead of relying on a central hub or router, each node in a SLNN Mesh Internet network can communicate with other nodes in the network and relay data to them. This allows for a more resilient and flexible internet connection that continues to function even if one or more nodes go offline.

One of the main benefits of SLNN Mesh Internet is its ability to provide internet access to “off the grid” areas such as rural or remote locations and developing countries. By using SLNN Mesh networks, communities can connect to the global internet and access a wealth of previously untapped and (to some extent) unlimited information and resources. This can significantly improve the quality of life in these areas.

In addition to improving internet access, mesh networks also offer other benefits such as the ability to create a local intranet for communities to communicate and share information without relying on the global internet.

SLNN Mesh Internet – A Decentralized and Private Alternative to the classic World Wide Web

One of the most innovative aspects of SLNN Mesh Internet is its ability to create a decentralized internet that is less vulnerable to censorship and surveillance. By using a distributed network of nodes rather than a central hub, it becomes much more difficult for a single entity to censor or monitor internet activity. This can help to protect user privacy and security, ensuring a free and open internet.

The use of mesh networks and blockchain technology can bring numerous benefits and innovations, especially in the realm of decentralized internet access and cryptocurrency transfers. SourceLess Ledger Network Nodes (SLNN) – as we explained upper – use a distributed network of interconnected nodes to provide internet access or facilitate other types of communication, can create a more resilient and flexible internet connection that is less vulnerable to censorship and surveillance.

This decentralized nature of mesh networks can also be used to facilitate the transfer of cryptocurrencies between users in a more secure and efficient manner. In addition to these applications, mesh networks can be used in the Internet of Things (IoT) to connect a large number of devices and sensors, and can even be utilized to create smart cities and homes. The intersection of mesh networking and blockchain technology has the potential to revolutionize the way we access and use the internet, and can bring about significant improvements in the quality of life for individuals and communities around the world.

Mesh Internet and hybrid blockchain technology meet the new needs of the internet – SourceLess Ledger Network Nodes

The convergence of mesh networks and hybrid blockchain technology has the potential to revolutionize the internet and offer innovative solutions to new challenges. Specifically, a combination of these two technologies could enable the creation of a decentralized internet that is more resilient and secure.

Mesh networks are a type of network topology where nodes (e.g., computers, mobile devices) are connected directly to one another in a peer-to-peer fashion, rather than through a centralized point of control. In this way, a mesh network can offer more resilient connectivity, since nodes can still communicate with each other even if some nodes fail or are unavailable.

Hybrid blockchains, on the other hand, combine the benefits of both public and private blockchains. They can offer controlled access and freedom at the same time, ensuring that users have equal rights to do transactions, view them, or even append or modify them, while also maintaining blockchain-specific functions such as integrity, transparency, and security.

By combining these two technologies, it may be possible to create an online environment that is less vulnerable to censorship and surveillance. With a mesh network, it may be possible to access the internet without relying on centralized internet service providers. Instead, nodes can communicate directly with each other, creating a more decentralized and resilient network. By using a hybrid blockchain to track and verify transactions on this network, it may be possible to provide a high level of security and transparency, without relying on centralized authorities.

In short, the combination of mesh networks and hybrid blockchain technology has the potential to create a new decentralized internet that is more resilient, secure, and resistant to censorship and surveillance. As the internet continues to evolve and face new challenges, it is important to consider innovative solutions such as this to meet the new needs of users and organizations alike.

Such needs include:

• Better security;
• Eliminating the possibility of being “hacked”;
• Creating one’s own identity on the internet, so that data copying (identity theft) is impossible;
• Creating one’s own ecosystem;
• Zero fees and eliminate intermediaries;
• Eliminating cyberbullying;

Another possibility is using a mesh network to facilitate the transfer of hybrid blockchain-based assets between users. The decentralized nature of mesh networks could provide a secure and efficient means of transferring these assets, which could be used for a variety of purposes such as buying and selling goods and services or tracking the ownership of physical assets.

The combination of mesh internet networks and hybrid blockchain technology has the potential to offer new and transformative solutions in a variety of contexts, including the creation of a decentralized internet, the transfer of blockchain-based assets, and the development of smart cities and homes.

Overall, Mesh Internet is a promising technology that has the potential to transform the way we access and use the internet. Whether it’s improving internet access in underserved areas or creating a more resilient and private alternative to the WWW, Mesh Internet and blockchain hybrid technologies has the potential to improve the lives of individuals and communities around the world.

CHAPTER 3. WRITING THE SYSTEM

    Security and privacy

     First of all, we need to make a first distinction between anonymity and confidentiality in the context of transactions of any kind, whether we are talking about financial transactions or data transactions. It is called an “anonymous” transaction when no one knows your identity and a “confidential” when the transaction and its content are unknown.

     SourceLess Blockchain ensures this anonymity with the help of secure, credible and accredited companies in the fields of Know Your Customer (KYC) and Anti Money Laundering (AML). Specifically, when a user creates an account in SourceLess Blockchain, he is anonymous at the time of creating the account, but then he must provide his identity data to a third company which will KYC and AML verify him and also certify that the WNFT and the registration in the blockchain are the same as in reality.

     The anonymity part only works when the transactions are written in the blockchain and does not violate the law. When a user breaks the law, the force structures can directly access the third-party company providing the KYC & AML services and clearly identify the user who committed the illegality. This rule will coerce SourceLess Blockchain user, through the identity he is assuming and certifying, not to violate the law, fact that demonstrates that our product is considered 100% WHITE LABEL.

     The security in SourceLess Blockchain is also based on +256 KB data encryption. At this moment, no one can create a fracture into a 256 KB encryption, thanks to patented and confirmed security standards IEEE STD 1363.1 and OASIS KMIP, which specify that any type of AES256 bit encryption will be based on an algorithm with the level of security appropriate to the attacks initiated by Quantum Counters.

The SourceLess Blockchain system is created to have the possibility of initiating an upgrade regarding Quantum Computers, a fairly clear component in which any type of connection with a Quantum Computer is identified and automatically removed. In the written code of SourceLess Blockchain, everything that becomes Quantum Resistant starts from the military grade encryption to the piece of code that rejects a certain number of connections with a particular node directly.

     An important perspective of SourceLess consists in the importance of SNARK, not-interactive zero-knowledge proofs, which refers to the proof of the construction in which the possession of an information can be proved, without showing that information and without any interaction between the one who asks for proof and the one who checked it. ZK (Zero Knowledge) translates to information verified without making it public.

The term “zk-SNARKs” was first coined by a team of cryptographers including Nir Bitansky, Alessandro Chiesa, and Eran Tromer, and it has since been developed and improved upon by various projects and teams. Zk-STARK and zk-SNARKs are two of the most promising zero-knowledge technologies available today.

Zk-STARK stands for “zero-knowledge scalable transparent argument of knowledge,” while zk-SNARKs stands for “zero-knowledge succinct non-interactive argument of knowledge.”

SourceLess places great importance on zk-SNARKs, which utilizes a “zero-knowledge proof” concept. This type of proof allows for the verification of information without disclosing it and without any interaction between the party asking for proof and the party checking it.

“Zero knowledge” means that information is verified without being made public, while “succinct” means that the proofs are small and easy to verify, even for complex concepts. Additionally, the term “non-interactive” means that back-and-forth communication between a prover and verifier is not necessary, and “argument” refers to a series of mathematical operations used to prove a statement true.

The key idea behind this proof is that a secret key is created before the transaction takes place, making it possible to prove possession of the evidence without having to reveal the evidence itself. This is different from other types of proof, where at least one of the parties involved must have access to all of the information.

SourceLess utilizes a 1 MB node, making zk-SNARKs a particularly useful technology for the platform. By leveraging zk-SNARKs in combination with other technologies, it is possible to create a more secure and private online environment that is less vulnerable to censorship and surveillance.

Zero-Knowledge Proof’s Characteristics: Completeness (if the assertion is true, an honest verifier will finally be convinced) and Soundness (if the prover is dishonest, they will be unable to persuade the verifier) zk-STARKs are considered to be resistant to advances in quantum computing.

zk-SNARKs use elliptic-curve cryptography (used to generate private and public keys) and is susceptible to the advances in computing power that quantum computing have.

A zk-STARKs is a zero-knowledge scalable and transparent argument of knowledge (key differences to zk-SNARKs are scalability and transparency).

Ben-Sasson created zk-STARKs to provide proofs that can be verified much faster and solved the trusted setup problem, completely remove the need for multiple parties to create the private key needed. Instead, everything needed to generate the proofs is public and the proofs are generated from random numbers.

zk-STARKs actually remove the requirement in zk-SNARKs for asymmetric cryptography and instead use the hash functions.

The mathematical basis of zk-SNARKs is very complex however, such evidence enables one of the parts to demonstrate not only that there is a certain amount of information, but also that the part concerned is aware of that information.

In SourceLess Blockchain, zk-SNARKs’s bases can be checked almost instantly and the protocol does not require any interaction between the user and the verifier. Another attribute of ZK-SNARKS in SourceLess Blockchain is its ability to minimize up to below 1MB the nodes in the network, making it possible to place a node at each wallet holder.

zk-SNARKs – (nodes: < 1MB/node) available on every device (IoT -> even on a smart lightbulb); Every member of SourceLess Ecosystem is an Automatic Validator (node).

     For a platform to be truly considered decentralized, it must eliminate the possibility of manipulation or control shown by centralized entities, which cannot happen without confidentiality. Recent incidents in the spectrum of security and privacy have shown the need to protect one’s identity and data has never been a higher priority.

With the help of the distributed ledger technology (DLT) protocol, which allows the existence of a decentralized database, SourceLess Blockchain removes all security risks from the system, including the authority of a person/entity and distributes it to all the users in the network.

     In a centralized system with a common server and a commonly known network architecture we can observe different types of vulnerabilities, based on a very defined attack point, to which is added the human factor.

In these conditions, those vulnerabilities can persist and also cause damage. In the recent years, hospitals, state institutions, public or political persons using centralized systems have faced ransomware attacks that in the first phase, in order to produce effects, must identify a clear target.

In SourceLess Blockchain it is impossible to identify the target or central point, since the database is both encrypted and then randomly distributed among the users with the help of DLT. All the copies are then stored in the network.

For such an attack to be successful, this decentralized database should be attacked and corrupted at the same time. Under these circumstances, not having a central point that can be attacked and not having the possibility to attack all the nodes at once, our system becomes 100% immune by definition.

     DLT has a much more substantial role than encrypting information and distributing it to the users specifically, it has the role of getting each participant to contribute automatically with some of his memory and processing power for the well function of the network and to create information in a much faster way, taking out the standard and turning it into a database more accurate, easier to maintain and valuable correct.

By using DLT technology and by distributing the amount of information throughout the network, the information can be accessed faster in 90% of the cases and can be distributed among each member of the network respectively, with certain rights. The yield in the network is increasing, making our product eco-friendly and carbon free.

     Also, the DLT technology together with the ZK-SNARKS allow SourceLess Blockchain to minimize the number of nodes in the network, so that each device becomes a node, joining each other node from the database. In terms of efficiency, this process is becoming faster and cheaper, with no other solution more cost effective in our days.

     Distributed Ledger Technology (DLT)

DLT is a digital data transaction registration system in which transactions and their details are recorded in several places at the same time. Unlike other traditional databases, distributed ledgers do not have a central repository for a well-constructed administration functionality.

Distributed ledgers use independent devices (referred to as nodes) to record, share and synchronize transactions in their respective electronic ledgers (instead of keeping data centralized as in a traditional data base). Blockchain is a well-known example of distributed ledger technology maintained by consensus among a network of peer-to-peer nodes. Distributed Ledger is a linked list of sets of transactions between the peers of a network, ordered by time, and where each peer holds a local copy.

     In a distributed ledger (DL), each node processes and verifies each item at a time, thus generating a record of each one and creating a consent of its veracity. A distributed ledger can be used to record static data, such as a ledger, but also dynamic data, as data transactions are doing.

Blockchain is a well-known example of
distributed ledger technology

     DLT is specifically reflected into the technological infrastructure and protocols, allowing access, validation and simultaneous updating of the records characteristics, the distributed registers and multiple entities or location operations.

DLT uses cryptography to securely store data, cryptographic signatures and keys which allow access only to those authorized users. Also, this technology creates an immutable database, which means that information once stored, cannot be deleted and all the updates are permanently recorded for posterity.

     The system architecture represents a significant change in the way information is collected and communicated by moving the record from a single, authorized location to a decentralizes system where all relevant entities can view and modify the register.

As a result, all other entities can see who is using and modifying the ledger. The transparency of DLT provides a high level of trust among the participants and it practically eliminates the possibility of fraudulent activities appearing in the register.

In essence, DLT removes the need for entities of using the register to rely on a central trust authority which controls the register or on a third-party supplier to fulfil this role.

     The enthusiasm in DLT has grown significantly in the decade before Bitcoin’s launch, in 2009, as a cryptocurrency powered by blockchain technology and the first to demonstrate that DLT technology not only works, but is able to scale and stay secure at the same time.

     A company for example, may have different bits of data owned by each of its divisions which contribute to a centralized database only periodically.

     The great process of DLT is its ability to diminish or eliminate the often time consumption and to end error prone processes needed to reconcile the different contributions to the registry, to ensure that everyone has access to the current version and that its accuracy can be trusted.

The terms DLT and Blockchain are often used together and sometimes even interchangeably. However, they are not the same. The easiest way to define them is: Blockchain is a type of DLT, but not all distributed ledger technology uses blockchain technology.

This confusion is understandable, given the grown interest in such technologies, since the advent of Bitcoin and how interchangeable the technologies in actual use can be.

     Both are used to create decentralized registers using cryptography. Both create immutable records which include time stamps. Both are considered almost unattainable, can be public, making them open for anyone to use as in the case of Bitcoin, or can be made private and thus restricted to authorized users who agree to certain standards of use.

     The major difference between the two is that Blockchain uses blocks of data that are chained together to create the distributed regulator, as the name describes it, while DLT also includes technologies that use other designs principles to create a distributed ledger.

To be considered a DLT, the technology does not have to structure the data into blocks.

Categories of Distributed Ledgers: can be classified as private, public, permissioned, permission less, or any combination of the two.

Public (Permissionless) Ledgers: are open to everyone, decentralized (no one person or corporation control the network). Any developer can create an application on top of the ledger without permission from anyone. For end users anyone can access the ledger for a variety of purposes, including storing and sending digital currencies, as well as using applications that are built on the ledger.

Private (Permissioned) Ledgers: usually closed to a select group of users or companies. They are centralized, meaning that one company or a small group of nodes are responsible for reaching consensus via the network’s consensus protocol. Developers in general can build applications on top of this ledger, but users may need approval from an administrator to access them or in some cases apps are not available to the public.

Most end users of private ledgers are currently large enterprises or governments for scenarios that require restricted access.

In addition to blockchain, we will list some other types of DLT below: Hashgraph, DAG, Holochain, Tempo (Radix).

Hashgraph: multiple transactions can be stored on the ledger with the same timestamp, as soon as a transaction occurs on the network, everyone on the network will know where the transaction will be recorded in the ledger within a few minutes, node on the network can send out information on a new transaction known as events, and records the history of how members communicated.

Some particularities: consensus mechanism that reduce computational power and increase transactions per second (TPS), virtual voting and Gossip about Gossip, validations of transactions are peer-to-peer, consensus mechanism that does not give too much powers to miners (the majority have the say on which transaction to go through).

Each event contain: timestamp (when member created the event), transaction (event can hold zero or more transactions), hash-1 (self-parent hash), hash-2 (other parent hash), digital signature (signed cryptographically by the creator of the event). Gossip is computer science term for a calling a random node and telling it a piece of information previously unknown.

Gossip about Gossip means attaching a small amount of data in addition to this Gossip, which are two hashes containing the last two people talked to.

     Directed Acyclic Graphs (DAG) – concept derived from mathematics, a directed acyclic graph takes the linear simple standard linked lists, in which each new transaction gets stored on the ledger on topological order (result is a line of transactions in a straight sequence).

Like blockchain, every member of the network is referred to as a node, any node can initiate transactions, but to validate them, they must first validate at least two previous transactions on the ledger. The more a person validates, the more his or her transactions on the distributed ledger database become valid transactions (previously validated transactions will be given the greatest weight in the ledger).

The DAG takes the miners out of the equation making each transaction independent of miners and based only on a previous transaction. offer nano transactions for free is one of the main advantages of implementing a distributed ledger DAG.

Direct – the sequences of transactions follow a certain direction even if not linearly and look like a graph, transactions are linked to one another directly rather than joined together in blocks and processed.

Acyclic – meaning that since the relationship between the edges can only go in one direction, there is no cyclic path between data points, they are acyclic.

Graph – set of vertices which are connected by lines called edges. Edges are represented on DAGs as arrows that point in one direction on the graph.

Holochain – is an open-source framework for creating peer-to-peer applications that are secure, reliable, and fast Instead of depending on servers, applications connect user devices directly to each other in secure networks.

According to the platform’s whitepaper, Holochain is an amalgamation of blockchain, BitTorrent, and Github, takes an agent-centric approach, putting you at the center of your computing experience, applications run on your device, creating self-owned identities and data.

Holochain Each application creates its own encrypted peer-to-peer network between you and the other users and each piece of data has a cryptographic audit trail connected to its author, and every user helps enforce shared application rules and identify bad actors.

Each node on the network runs its chain, allowing them to function independently while remaining part of a larger network of thousands of other similar nodes (nodes or miners have the freedom to operate autonomously). Distributed hash table (DHT), users can store data using certain keys, data stays in actual locations distributed in various locations across the globe.

Holochain – is an open-source framework for creating peer-to-peer applications that are secure, reliable, and fast Instead of depending on servers, applications connect user devices directly to each other in secure networks.

According to the platform’s whitepaper, Holochain is an amalgamation of blockchain, BitTorrent, and Github, takes an agent-centric approach, putting you at the center of your computing experience, applications run on your device, creating self-owned identities and data.

Holochain Each application creates its own encrypted peer-to-peer network between you and the other users and each piece of data has a cryptographic audit trail connected to its author, and every user helps enforce shared application rules and identify bad actors.

Each node on the network runs its chain, allowing them to function independently while remaining part of a larger network of thousands of other similar nodes (nodes or miners have the freedom to operate autonomously). Distributed hash table (DHT), users can store data using certain keys, data stays in actual locations distributed in various locations across the globe.

Tempo (Radix) – nodes rely upon the passage of logical time to validate transactions, implements logical clocks, counters that count upwards in increments of 1 each time that a node sees a new, valid event on the ledger (achieves consensus by registering, coordinating and preserving the total order of events). With the Cerberus mechanism, all transactions are aggregated across multiple shards.

Scrypto (programming language) is designed to be different, instead of having to rebuild all the logic for assets and tokens in the project’s own smart contracts, developers using Scrypto can take advantage of the native tools built into Scrypto. To create tokens and define the rules for how they can be traded.

Several logical clocks that touch the same event can be put together for making a Vector Clock, which will make it possible to determine the place of that event in the order of events. Every node must regularly transmit its own Merkle Tree with hashes of events it has witnessed, and must sign the root hash with its own private key.

Peer-to-Peer (P2P)

     A peer-to-peer (P2P) network is a group of computers, each one acting as a node for sharing files within the group. Instead of having a central server acting as a shared drive, each computer acts as a server for the files stored on it.

When a P2P network is established over the Internet, a central server can be used to index files or to set up a distributed network where file sharing is accepted between all users on the network which store a particular file. 

Elementary speaking, a peer-to-peer is a simple network in which each computer doubles like a node and as a server for the files it owns exclusively. These are just like a home network or an office network.

However, when P2P networks are established on the internet, the size of the network and the files available allow sharing huge amounts of data. Early P2P networks like Napster used client software and a central server and later networks like Kazaa and BitTorrent removed the central server and split their sharing tasks between multiple nodes to free up bandwidth.

P2P networks are usually associated with internet piracy and illegal sharing of fact sheets. All computers and devices that make up the P2P network are referred to as peers, and they share and exchange workloads and resources: files, disk storage capacity, and network bandwidth.

A P2P network can be an ad hoc connection, a couple of computers connected via a Universal Serial Bus to transfer files, a P2P network also can be a permanent infrastructure that links a half-dozen computers in a small office over copper wires, or a P2P network can be a network on a much grander scale in which special protocols and applications set up direct relationships among users over the Internet.

No central administrators or regulatory bodies in the P2P networks, they are essentially viewed as the most egalitarian computer networks- where all peers in the network are equals with each other, no one peer has special privileges over the other, and all peers share the same duties and rights- functioning simultaneously as both clients and servers.

The advantages of the peer-to-peer networks: versatile and resilient (if one peer in the network is down, the others are still able to operate and communicate with each other), scalability (simple to add new peers to the network, no need for central configuration on a central server), transfer speed (same file stored on multiple peers in the network, the file is downloaded from multiple locations simultaneously).

The nodes use hard drives to store the shared files, when it comes to software, they use applications that can be used for sharing of data or helping other devices to process queries for finding or downloading files. In any circumstance, the peers need to act as a source for any given file. Node have two distinct functions: first function is to act as a client when downloading files, second function to act as a node in the network. Maybe the most prominent examples are likely file-sharing networks like BitTorrent, and blockchain networks that communicate in a peer-to-peer way.

Types of P2P networks:

• Unstructured P2P Networks – participants communicate randomly with one another (tendency to be decentralized).
• Structured P2P networks – each peer to look after a specific section of the content over the network (tendency to be centralized) Hybrid P2P networks – combine the client-server model with the model of P2P networks.

Some use cases: exchange digital assets or cryptocurrencies, peer to peer loans, peer to peer car rental, peer to peer payments, peer to peer communication, and so on.

Libp2p – libp2p is a modular system of protocols, specifications and libraries that enable the development of peer-to-peer network applications. Because of libp2p’s peer-to-peer and distributed architecture, most of the needs and considerations that the current web was built on no longer apply. The internet, such as it is, with firewalls and NATs, was designed to securely provide data by relying on trust assumptions. There are many distributed peer-to-peer network models with different challenges and tradeoffs that try to improve on the way we network. Libp2p aims to be a modular, general-purpose toolkit for any peer-to-peer application.

Scope for this system: users preserve their network identity, overcome network censorship, and communicate over different transport protocols.

Flexible networks need flexible addressing systems: multiaddress (multiaddr) is a convention for encoding multiple layers of addressing information into a single “future-proof” path structure. Let’s say that I have combined my “location multiaddr” (my IP and port) with my “identity multiaddr” (my libp2p PeerId) now I can start share my multiaddr to my friends.

Now not only do my friends know where to find me, anyone they give that address to can verify that the machine on the other side is really me, or at least, that they control the private key for my PeerId.

zk-SNARKs

zk-SNARK is an acronym for Zero Knowledge Succinct Non-Interactive Argument of Knowledge. A zk-SNARK is cryptographic evidence that allows one of the parts to demonstrate that it has certain information without disclosing it. This proof is possible using a secret key created before the transaction takes place.

A zk-SNARK uses a concept knows as “zero-knowledge proof”. The idea behind this was first developed in the 1980s. Putting “zero-knowledge proof” is a situation in which each of the two parts in a transaction is able to verify each other shared information, without revealing, at the same time, what that information is.

For most other types of evidence, at least one of the two parts must have access to the information. A traditional proof of that can be compared to a password used to access an online network. The user sends the password and the network itself checks the content of the password to verify that it is correct. To do this, the network must also have access to the content of the password.

A Zero-Knowledge Proof version of this situation would require the uses to prove to network (though mathematical evidence) that he has the correct password, without revealing the password itself. The advantages of confidentiality and security in this situation are clear: if the network does not have the password stored somewhere for verification purposes, the password cannot be stolen.

The mathematical basis of zk-SNARKs is very complex however, such evidence enables one of the parts to demonstrate not only that there is a certain amount of information, but also that the part concerned is aware of that information. In SourceLess Blockchain, ZK-SNARKS’s bases can be checked almost instantly and the protocol does not require any interaction between the user and the verifier.

Another attribute of zk-SNARKs in SourceLess Blockchain is its ability to minimize up to below 1MB the nodes in the network, making it possible to place a node at each wallet holder.

Zk-STARKs and zk-SNARKs are two of the most promising zero-knowledge technologies on the market today.

zk-STARKs means for zero-knowledge scalable transparent knowledge argument, whereas zk-SNARKs stands for zero-knowledge succinct non-interactive knowledge argument

An important perspective of SourceLess consists in the importance of SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) who uses a concept known as a “zero-knowledge proof, which refers to the proof of the construction in which the possession of an information can be proved, without showing that information and without any interaction between the one who asks for proof and the one who checked it.

ZK (Zero Knowledge) translates to information verified without making it public. Succinct means that the proofs are small and easy to verify even if the concept being proven is complicated (SourceLess have 1 MB node). Non-interactive means a back-and-forth communication between a prover and verifier it’s not necessary. Argument a series of mathematical operations that are used to prove that a statement is true Knowledge refers to the fact that the prover actually has the evidence themselves This proof is made possible using a secret key created before the transaction takes place. For most other types of proof, at least one of the two parties must have access to all of the information.

Zero-Knowledge Proof’s Characteristics: Completeness (if the assertion is true, an honest verifier will finally be convinced) and Soundness (if the prover is dishonest, they will be unable to persuade the verifier) zk-STARKs are considered to be resistant to advances in quantum computing.

zk-SNARKs use elliptic-curve cryptography (used to generate private and public keys) and is susceptible to the advances in computing power that quantum computing have. A zk-STARK is a zero-knowledge scalable and transparent argument of knowledge (key differences to zk-SNARKs are scalability and transparency). Ben-Sasson created zk-STARKs to provide proofs that can be verified much faster and solved the trusted setup problem, completely remove the need for multiple parties to create the private key needed. Instead, everything needed to generate the proofs is public and the proofs are generated from random numbers.

zk-STARKs actually remove the requirement in zk-SNARKs for asymmetric cryptography and instead use the hash functions.

zk-SNARKs – (nodes: < 1MB/node) available on every device (IoT -> even on a smart lightbulb); Every member of SourceLess Ecosystem is an Automatic Validator (node).

CHAPTER 4. CCOIN Network – Financial Core (SourceLess Fintech Infrastructure)

The Ccoin Network represents a cutting-edge fintech solution that leverages the power of the SourceLess blockchain technology to provide fast, secure, and cost-effective financial transactions. By combining the benefits of blockchain technology with innovative features like discounts on MasterCard cards and POS systems, Ccoin Network is poised to become a major player in the world of fintech, offering a compelling alternative to traditional financial systems.

Financial infrastructure is currently a mess of closed systems. Gaps between these systems mean that transaction costs are high and money moves slowly across political and geographic boundaries. This friction has slowed the growth of financial services, leaving billions of people underserved.

To solve these problems, we build a financial infrastructure that supports organic growth and innovation, yet still ensures that financial transactions are recorded accurately. 

A decentralized worldwide financial network could remove barriers to entry, allowing new, innovative participants — who may possess only modest financial and computing resources — to become part of the network’s infrastructure and extend access to unserved communities.

A network with low barrier to entry will spur organic growth, but it also means no longer relying solely on established financial institutions to record transactions accurately. Rather, all participants ensure accuracy by agreeing on the validity of one another’s transactions. This agreement hinges on a mechanism to reach worldwide consensus.

We introduce to you, CCOIN Network, the SourceLess fintech solution: decentralized control, low latency, flexible trust, and asymptotic security.

CCOIN token is a crypto token that serves all use cases within a specific financial in the SourceLess ecosystem.

CCOIN token is unique to its ecosystem.  CCOIN tokens are not mineable cryptocurrencies. CCOIN tokens are pre-mined, being created all at once. CCOIN tokens represent the financial core of SourceLess Ecosystem.   

CCOIN Network Description

a). Definition

Ccoin Network is a fintech system that leverages the SourceLess blockchain technology to enable seamless person-to-person (P2P) and business-to-business (B2B) transfers of money. The system aims to provide a high-quality and secure platform for trading taxes and other financial assets. To achieve this, the SourceLess blockchain technology ensures that all transactions are secure and transparent, while also providing a decentralized and trustless network that can support large-scale financial transactions.

In addition, Ccoin Network is designed to provide its users with certain benefits when they use the platform. For instance, users can receive discounts of 2.5% to 5% when they use MasterCard cards that are issued under the SourceLess logo. Similarly, users can receive discounts when they use the Ccoin Network and SourceLess point-of-sale (POS) system. These discounts can provide significant cost savings to businesses and individuals, making Ccoin Network a compelling choice for those seeking an efficient and cost-effective fintech solution.

The Ccoin Network platform is built on the SourceLess blockchain, which is a hybrid blockchain technology that combines the benefits of both public and private blockchain systems. The SourceLess blockchain technology provides fast transaction speeds, low fees, and high scalability, while also ensuring the security and privacy of all transactions. This makes it an ideal platform for fintech applications, as it can support large-scale transactions with ease, while also providing the security and privacy that is required in the financial industry.

The motto of Ccoin Network highlights one of the fundamental principles of the fintech ecosystem. Specifically, the statement “money sent = money received” emphasizes that transactions carried out on the Ccoin Network are designed to be seamless and efficient, ensuring that the recipient receives the exact amount of money that was sent, without any intermediaries or unnecessary fees.

To achieve this, the Ccoin Network leverages the SourceLess blockchain technology to facilitate person-to-person (P2P) and business-to-business (B2B) transactions, enabling users to send and receive money directly, without the need for third-party intermediaries such as banks or payment processors. This reduces transaction costs, minimizes delays and ensures that the value transferred is retained.

b). Finance

Merchant / Payment Portal through Ccoin Network

Companies can choose from two collaboration options: affiliate or partner.

Ccoin Network can be used for online payments as well as for physical payments through the Ccoin Network POS, or by using online applications for Android, iOS or partner digital wallets (MetaMask, Trust Wallet, Wallet.ccoin.uk).

When accepting payments through Ccoin Network, more than 100 types of cryptocurrencies by debit card or credit adjacent services from third parties such as Paypoint mone, but also payments through type payment services (Revolut, Monese, Crypto.com, etc.). But it can also opt for international type bank transfers IBAN, SEPA or Swift.

Depending on the type of classic payment solution (at FIAT-Crypto) time payment processing differs: whether to payments by card or other similar services which allow real-time confirmation, processing and purchase time is under one minute, including by payment to the Ccoin Network POS, to bank transfers, will be a trading time between 24 and 72 hours, required due to the limitations of this type of transfer.

Classic payment acceptance systems vs Ccoin Network

The benefits of Ccoin Network are clear, easy to identify and understand, especially in the idea of the growing adoption of cryptocurrencies worldwide but also greater adoption of fintech banking services vs. traditional banking, due to the high costs of unjustified processing times for bureaucratic procedures cumbersome but also limitations that are often unjustifiably imposed.

*All other systems similar money transfer Western Union, MoneyGram, Smith & Smith etc.

Ghost Wallet – characteristics: crypto wallet that you own it, no bank account required, retail stores turn your cash into digital funds, friends can send you digital funds, spend IRL (in real life) or online, stores get better transaction rates, open- source and decentralized peer-to-peer currency featuring advanced user data protection features, community governance mechanism, zk-SNARKs financial data protection, multi chain wallet, no centralized storage.

No central banks needed to keep your digital wallet and store your money safely on the blockchain. Sometimes the best way to learn about a new crypto project is to own some.

Crypto Wallet – is a software program or a device (analogy with a physical wallet that stores your cash) that is used to store, manage, and transact cryptocurrencies and digital assets over a blockchain network with a specific address with whom you identify (like a bank account).

Cryptocurrency is different from ownership of traditional currency; cryptocurrency is not available in the physical form and is rather considered as a group of codes.

The holder of the electronic wallet has two keys: a public one that he can share to receive assets and a private one that he uses to sign transactions when sending assets to another entity/person. Key pairs are generated with cryptographic algorithms based on mathematical problems named one-way functions.

Security of public-key cryptography depends on keeping the private key secret, the public key can be openly distributed without compromising security.

A public key is like a bank account number, it can be shared at will with anybody who wants to send you money, a private key, on the other hand, can be thought of as your bank account’s PIN code, and should be carefully safeguarded.

When a user wants to send cryptocurrency, they input the destination wallet’s public key and the amount of crypto they wish to send.

The wallets can be categorized based on the method and location of storage: hardware wallets (cold wallet) and hot wallets (web wallets, mobile wallets, desktop wallets). Web based wallets, mobile wallets, and desktop wallets are all different types of software wallets that are connected to internet and offer better accessibility but less secure.

Cold wallet store crypto tokens of users in offline mode and use a physical medium, typically in the shape of a USB stick (the most secure type of wallet because it would require hackers to have access to your device and the associated PIN/Password).

Transactions with cold wallets generally involve a signing process that starts online and then shifts to the offline process and after completion of the signing process, the complete information of the transaction goes back to an online network.

What is important to remember is the fact that using a hot wallet, the money is placed in the custody of the exchange, in contrast using the cold wallet, money remains in your custody on the physical storage medium.

Peer-to-Peer in Crypto (P2P) – people directly interact to buy and sell cryptocurrency without the presence of a third party who must process and give their consent for the completion of the transaction (there is no central authority). To have such a currency transaction between two peers, there is the requirement of a blockchain.

Napster was a peer-to- peer file sharing application. It originally launched on June 1, 1999, with an emphasis on digital audio file distribution.

Audio songs shared on the service were typically encoded in the MP3 format, to download content a client software and a central server where needed. Later networks like Kazaa and BitTorrent removed the central server and split their sharing tasks between multiple nodes to free up bandwidth.

Let’s list some of the advantages of P2P payments:

• Pseudonymity – to make a transaction you need a unique identifier which is not related to the name and address of the user.
• Wallets – where you can practically store your money and use that for any nature of a transaction, without paying issuance and administration fees and you own your money.
• Secure transactions – a worldwide network of nodes who manages transactions and validates them, is impossible to identify the target or central point, since the database is both encrypted and then randomly distributed among the users.
• Zero Trading Fees – traditional international payments involve expensive processing and service costs due to the number of intermediary banks, brokers and middlemen involved. A peer-to-peer infrastructure avoids all of this as the payments are made directly between two users and fees are very low or don’t exist.
• Ease of use and Convenience – money can be sent at the click of a button with minimal effort from the user.
• Speed – P2P services and cryptocurrencies can achieve money transfer in a matter of seconds.

Ccoin Network – financial fuel (crypto-fuel)

In traditional financial ecosystems, costs associated with transactions are inevitable due to the movement of values, be it virtual or physical. These costs are still present in fiat currency systems today.

However, through the Ccoin Network, it is possible to eliminate these costs using CCOS cryptocurrency trading. Currently, CCOS is an ERC20 token based on the Ethereum blockchain, but the network is working towards becoming a full-fledged cryptocurrency on its own blockchain.

The principle behind the Ccoin Network is that the cryptocurrency itself is the fuel behind any traded value. The value of a transaction is derived from the cryptocurrency that is acquired and traded for the purpose of canceling the costs generated by the transaction. In other words, the cryptocurrency is used to offset the transaction costs, and the value of the transaction is determined by the amount of cryptocurrency required to cancel those costs.

By using cryptocurrency in this way, the Ccoin Network offers a unique approach to financial transactions that could potentially revolutionize the way we think about costs associated with transfers of value. The cryptocurrency itself becomes an integral part of the transaction process, offering a more efficient and cost-effective way of transferring value compared to traditional fiat currency systems.

c). The fintech technology applied

Considering today the difficulty of trading any cryptocurrency, from acquisition and exchange in fiat currency or vice versa, in cryptocurrency, as well as fluctuating price, enormous volatility, but also the need for knowledge in trading, or huge commissioners, we created the Ccoin Network ecosystem, what will manage transparently, predictably and securely any transaction that members they will want you, with the minimum of necessary knowledge.

Effectively, banking as a service (saas) and the blockchain ecosystem, merge for to fulfill the basic purpose of any cryptocurrency: benefits for the community. In Ccoin Network, members and users benefit from a platform – saas banking, which allows them to trade classical but also what with the help of cryptocurrencies a crypto currency exchange based on an integrated AI, necessary to reduces possible human errors or lack of knowledge in trading cryptocurrencies, from various issues such as choosing the best one price as well as the risk of volatility in the cryptocurrency market.

Price stability is an important concept in cryptocurrency trading, particularly in the context of fiat currency trading. In the traditional fiat currency market, the price of a currency is determined by various factors such as economic growth, inflation, and geopolitical events. However, in the volatile world of cryptocurrency, the value of a coin can fluctuate, rapidly and unpredictably, making it difficult to use as a reliable medium of exchange or store of value.

Ccoin Network seeks to address this issue by offering price stability in crypto trading, similar to that provided by stable coins. Stable coins are cryptocurrencies that are designed to maintain a stable value relative to a specific asset, such as the US dollar or gold. They achieve this stability by pegging the value of the coin to the asset it is intended to track.

In the case of Ccoin Network, price stability is achieved through the use of the CCOS cryptocurrency, which is designed to act as the fuel behind any traded value. The value of a traded asset is given by the cryptocurrency itself, which is acquired through trading and adoption in order to fulfill the objective of canceling the costs generated by transactions.

d). The CCOIN financial system will benefit
    from ISO 20022

The CCOIN financial system is expected to leverage the benefits of the ISO 20022 standard. ISO 20022 is a global standard for financial messaging that provides a single methodology, process, and repository for financial standards initiatives. It aims to provide a common language for the development of financial messages, enabling seamless communication and integration between financial institutions and systems.

Ccoin Network is expected to benefit from this standardization approach, as it will be able to use ISO 20022 to facilitate financial transactions across multiple systems and institutions. The standard is designed to improve the efficiency and interoperability of financial messaging, enabling faster and more accurate transactions.

As part of this, the Ccoin Network will be adopting a multi-part International Standard that has been developed by the ISO Technical Committee TC68 Financial Services. This committee is responsible for developing standards for financial services across a wide range of areas, including payments, securities, and trade services. By leveraging this standard, the Ccoin Network will be able to achieve greater standardization and interoperability in its financial messaging, improving its overall efficiency and security.

One of the key benefits of the Ccoin financial system is that it will leverage ISO 20022 standards. These standards provide a modelling methodology for capturing financial business areas, transactions, and associated message flows in a syntax-independent way. This allows financial messages to be exchanged between different financial institutions using a common language, regardless of the underlying technology or system.

ISO 20022 also includes a central dictionary of business items used in financial communications. This dictionary provides a common definition of financial terms and concepts, which is important for ensuring consistency and accuracy in financial messages.

In addition, ISO 20022 provides a set of XML and ASN.1 design rules that can be used to convert the message models into XML or ASN.1 schemas. This allows financial messages to be easily transmitted using either the ISO 20022 XML or ASN.1-based syntax, depending on the preference of the financial institution.

By leveraging the ISO 20022 standards, the Ccoin Network will benefit from a standardized approach to financial messaging, which will help to increase efficiency and reduce errors in financial transactions. The use of a common language and a central dictionary of business items will also help to improve communication and understanding between different financial institutions.

CHAPTER 5. PROBLEMS SOLVED BY SOURCELESS

SourceLess Platform

The SourceLess Platform is a software platform built on top of the SourceLess Blockchain network, which is a Web3 platform. It provides users with a LaunchPad that is designed to be easy to use and allows them to create their own ecosystem on the SourceLess Blockchain.

The SourceLess Platform also provides a means for users to navigate Web2, which consists of websites, applications, and software, all while being protected by the SourceLess Blockchain. By using the SourceLess Platform, users can integrate various types of data, whether public or private, and have the assurance that their data is protected by the SourceLess Blockchain.

The SourceLess Blockchain platform provides users with a safe, fast, and easy way to navigate the platform. The platform offers a solution to current cybersecurity problems that many companies face.

The platform fully integrates companies into the SourceLess ecosystem, which provides comprehensive cybersecurity protection, covering all areas such as application security, cloud security, data security, identity access management, infrastructure protection, integrated risk management, network security equipment, and other information security software, security services, and consumer security software.

The platform will give users hosting space for free.

• 1 GB for personal use,
• 10 GB for business use.

SOURCELESS PLATFORM will give free access for user to AI software OpenAI GPT-3 and Formwelt AI. Using the SourceLess blockchain platform, you will navigate in a 100% safe, fast and easy way.

Security using SourceLess Platform

By integrating the SourceLess Blockchain into their systems, companies can ensure that their cybersecurity is up to date, and that they have access to the latest security technology. With the SourceLess Platform, companies can feel confident that their data is safe and secure, and that they are protected from any cybersecurity threats, such as:

• Application Security
• Cloud Security
• Data Security
• Identity Access Management
• Infrastructure Protection
• Integrated Risk Management
• Network Security Equipment
• Other Information Security Software
• Security Services
• Consumer Security Software

The SourceLess Platform provides a high level of security for transactions by leveraging the underlying SourceLess Blockchain network. Transactions on the SourceLess Platform are secured through a decentralized consensus mechanism that ensures the integrity and immutability of the blockchain ledger.

The platform implements cryptographic techniques to secure transactions and data, including advanced encryption methods such as AES and RSA. Additionally, the platform’s architecture is designed to prevent unauthorized access and attacks, with multi-factor authentication and authorization mechanisms in place to prevent unauthorized access to the platform.

By leveraging the security features of the SourceLess Blockchain network, the platform provides a highly secure and reliable environment for financial transactions and other types of sensitive data.

Str.Domains (wNFT)

SourceLess wallet and p2p payments

After buying WNFT (lifetime property of a Str.Domain) you automatically have an account in SourceLess platform which has behind a soul bound personal digital wallet (512 KB ENCRYPTION) with 100% White Label identity (KYC and AML), you can think that you have a personal vault where you store your money, from where you can make payments or transfer money to a third party 24/7 without needing the approval of a central authority and sign transaction with your private key.

A public key infrastructure (PKI) is a set of roles, policies, hardware, software and procedures needed to create, manage, distribute, use, store and revoke digital certificates and manage public-key encryption. The PKI is generally composed of a certification authority, a registration authority, and a central directory. Collectively, these components distribute and validate certificates.

Certification authority (CA): Issues certificates to users, computers, and services and manages certificates. A certification authority signs each certificate it issues with its own digital certificate. Certificate Authority can be in-house or a trusted third party such as Verisign, or COMODO.

Registration authority (RA): The interface between the user and the certification authority. It is responsible for identifying applicants or certificate holders and ensuring that the certificate usage constraints are met.

Central Directory (CD): Responsible for storing digital certificates. It centralizes and organizes the archiving of certificates. It also manages the list of expired or revoked certificates (CRL) and makes public-key certificates issued by the certification authority available to all users.

Symmetric encryption uses the same key for encryption and decryption; the sender uses the symmetric key to ensure that an unauthorized person or process cannot access the original data and the recipient uses the same symmetric key to decrypt the data once they receive it.

Asymmetric encryption uses a pair of keys to encrypt and decrypt data; the public key encrypts the data, and the associated private key decrypts data. The public key, which is an attribute of the certificate, is widely distributed in the network to allow users to perform encryption operations and digitally sign data.

The digital signature process ensures the authenticity of the sender (authentication function) and verifies the integrity of the received message. The digital signature also provides a non-repudiation function: it prevents the sender from denying having sent the message. A digital signature is an electronic, encrypted, stamp of authentication on digital information such as email messages, macros, or electronic documents. A signature confirms that the information originated from the signer and has not been altered.

A digital certificate is a file or electronic password that proves the authenticity of a device, server, or user through the use of cryptography and the public key infrastructure (PKI).

wNFT represent lifetime property of a Str.Domain within SourceLess Blockchain Ecosystem. By acquiring a domain, you will have your own part of the blockchain. The Str.Domain will be your personal identifier in the SourceLess network, and it comes with a technological and complex account/domain, that will be yours forever.

Str.Domains is a registry for contact domains that uses SOURCELESS blockchain technology to secure and enhance the information flow in a way never seen before. Blockchain will help build trust between partners by ensuring the data you are exchanging is tamper-proof, correct and up to date.

Str.Domains can help establish long lasting relationships between you, your contacts and their contacts too. With the support of SourceLess Blockchain Registry it’s becoming impossible to alter data or hack the system.

In short:

• wNFT is a lifetime property of a Str.Domain;
• Domain is a unique digital identity to connect in the SourceLess Platform;
• Every owner of a Str.Domain will have to complete the KYC & AML verification, before getting the full functionality of his domain;
• You can buy as many Str.Domain addresses you want, and sell them anytime you want, at any price you want, but this process is made only through SourceLess Inc. – owner of SourceLess Platform;
• Based on the KYC & AML protocols, all identities will be clear and certified, which means that the system is WHITE LABEL 100%.

DNS/Http VS WNFT identity

The Domain Name System (DNS) turns domain names into IP addresses, which browsers use to load internet pages. Every device connected to the internet has its own IP address, which is used by other devices to locate the device. DNS servers eliminate the need for humans to memorize IP addresses such as 192.168.1.1 (in IPv4), or more complex newer alphanumeric IP addresses such as 2400: cb00:2048: 1:c629:d7a2 (in IPv6). The operating system (OS) used by your device stores DNS resource records through the use of caching. Caching prevents redundancy when someone tries to go to a site.

HTTP is a protocol for fetching resources such as HTML documents. It is the foundation of any data exchange on the Web and it is a client-server protocol, which means requests are initiated by the recipient, usually the Web browser. A complete document is reconstructed from the different sub-documents fetched, for instance, text, layout description, images, videos, scripts, and more. HTTP data rides above the TCP protocol, which guarantees reliability of delivery, and breaks down large data requests and responses into network-manageable chunks. TCP is a “connection” oriented protocol, which means when a client starts a dialogue with a server the TCP protocol will open a connection, over which the HTTP data will be reliably transferred, and when the dialogue is complete that connection should be closed.

SourceLess Blockchain is native Web3, this means that it does not use DNS and HTTP, on the other hand, to find a resource (site) in our platform, you only have to type in the browser STR.domain. At the same time, you can safely access web2 resources without being infected or hacked, since the viewed information is passed through a virtual sandbox that protects you.

Web 3.0

     Web 3.0 represents a significant leap forward in the evolution of the World Wide Web. The internet is expected to become much smarter and have the ability to process information with almost humanoid intelligence through the power of Artificial Intelligence (AI) systems. The use of AI in web 3.0 would allow for the development of intelligent programs capable of helping users navigate through the vast amounts of data available on the internet.

AI systems are able to process and analyse large amounts of data, learn from this data, and make predictions and recommendations based on what they have learned. Web 3.0 will enable developers to create applications that leverage this power to provide users with more personalized and intelligent experiences.

Additionally, Web 3.0 is expected to be built on decentralized networks, which will allow for greater transparency, security, and privacy. These networks will be powered by blockchain technology, which provides a tamper-proof and decentralized ledger that can be used to verify and record transactions.

     Tim Berners-Lee came to the conclusion that the semantic web is meant to “communicate automatically” with systems, people and devices at home. As such, content creation and decision-making processes will evolve in both humans and machines. This would allow the ability of a faster way of creating and distributing content directly to each internet consumer.

     There are some fundamental differences between Web 2.0 and Web 3.0, but decentralization is among the most important one of them.

Web 3.0 promises to be a major step forward in the evolution of the internet, offering users a more intelligent and secure experience that is powered by decentralized networks and AI systems.

     The beginning of a new era

     Web 3.0 represents the next stage of evolution for the World Wide Web, and it is underpinned by three distinct technological layers, namely edge computing, decentralized data networks, and artificial intelligence.

In this new paradigm, applications are not built to run on a single server or rely on a centralized database hosted by a single cloud provider, but are instead designed to run on blockchain networks or decentralized networks of multiple peer-to-peer nodes, or a combination of the two, which form an economic crypto protocol.

These new types of applications, known as decentralized applications or dApps, have gained popularity in recent years and offer many benefits over traditional centralized applications, including greater transparency, security, and reliability. Additionally, these dApps are often powered by cryptocurrencies and enable direct peer-to-peer transactions without the need for intermediaries, allowing for increased privacy and efficiency.

As the Web 3.0 ecosystem continues to evolve, it is likely that we will see even more innovative applications being developed that take advantage of these new technologies and provide users with new levels of functionality and freedom.

Benefits of Web 3.0

     We are going through a revolution that will completely change our lives. Web 1.0 was all about building basic technologies and the ability to connect via internet. Web 1.0 has ahead of what Web 2.0 had to offer but it was primarily controlled by organisations and corporations in their own interest.

     Web 3.0 reduces the need for human interaction, providing privacy and security to users and more power than have ever had before. The vision about Web 3.0 has changed in the last 7-8 years with the introduction of blockchain and Bitcoin. Now, the Web 3.0 focuses more on the decentralized features and the what blockchain has to offer.

World Wide Blockchain

The SourceLess Blockchain, also known as the World Wide Blockchain, is a new blockchain standard that aims to unify the blockchain world under a single platform.

This new standard is designed to be the next stage in the evolution of the web, with the goal of making the internet smarter and more efficient. The SourceLess Blockchain is designed to provide users with the ability to process information with near-human efficiency by using artificial intelligence systems that are capable of running intelligent programs.

One of the main advantages of the SourceLess Blockchain is its ability to offer a high degree of security and transparency. The blockchain technology that underlies the SourceLess Blockchain allows for the creation of a decentralized ledger that is transparent, tamper-proof, and immune to hacking. This is because all transactions that occur on the blockchain are verified and recorded by a network of nodes, rather than being centralized on a single server. This decentralized nature of the blockchain ensures that the system is more secure and resistant to cyberattacks.

Another advantage of the SourceLess Blockchain is its ability to facilitate smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These smart contracts can be used to automate complex business processes, reduce the risk of fraud, and cut down on the time and cost associated with traditional contracting.

The World Wide Blockchain (WWB) is an information system where documents and other web resources are incorruptible through end-to-end encryption, identified by a SourceLess Domain (domain, such as STR.example) and are accessible on the internet using the SourceLess platform. Web 3.0 resources are transferred via Distributed Ledger and Peer-to-Peer technology and can be accessed by users through a software application, called the SourceLess Platform. The World Wide Blockchain is not equivalent to the Internet, which preceded the Web in one form or another more than two decades ago and is based on associated technologies.

Overall, the SourceLess Blockchain represents a major advancement in the world of blockchain technology, offering users the ability to process information with near-human efficiency and providing a high degree of security and transparency. With its ability to facilitate smart contracts, it has the potential to transform many industries, including finance, healthcare, and supply chain management.

    Anti-monopoly and pro privacy

     Web 3.0 aims to bring a pro-privacy and anti-monopoly structure to the network, meaning that centralized platforms will no longer be favored. Instead, the focus will shift towards privacy and decentralization. This means that the middleman will not be aware of any business or obligations related to the platform. This move towards decentralization and privacy will be facilitated by the SourceLess Blockchain.

In a traditional centralized system, users have to trust a single third party to handle their data and transactions. This centralization of power can lead to a lack of privacy and security, as well as creating a potential for monopolies to form. Web 3.0, on the other hand, emphasizes the use of decentralized systems and blockchain technology to provide a more secure and private way of conducting transactions and exchanging data.

With the SourceLess Blockchain, users can interact directly with each other, eliminating the need for intermediaries or centralized authorities. This provides a more democratic and fair system, where individuals have more control over their own data and are not at the mercy of powerful corporations or governments.

By enabling a more private and decentralized internet, Web 3.0 and the SourceLess Blockchain will likely play a significant role in shaping the future of the internet and the way we interact with it.

Secure network

Web 3.0 is expected to provide a more secure network than its predecessors due to its distributed nature and decentralization. The use of a blockchain-based system, like the SourceLess Blockchain, helps ensure the security of the network. In a decentralized system, hackers or exploiters face difficulties penetrating the network. Even if they manage to penetrate the system, all of their operations can be traced and withdrawn from the network. Because of the lack of centralization, it will become tough for hackers to take full control of an organization.

Despite their security benefits, blockchain-based platforms are not immune to all forms of exploitation, such as the 51% attack. However, most blockchain applications and platforms can be quickly corrected to defend against these types of threats. Additionally, advancements in blockchain technology are being made to prevent future 51% attacks and other potential vulnerabilities. Web 3.0’s more secure nature is due to its distributed and decentralized nature, along with the use of blockchain technology. While blockchain-based platforms are not completely immune to exploitation, they provide significant benefits in terms of network security.

Data ownership

     The issue of data ownership has become a significant concern for internet users in recent years. Web 3.0 aims to solve this problem by giving users full ownership of their data. In contrast to previous versions of the web, where user-generated data was stored and used by large corporations, Web 3.0 enables end users to control their own data.

This is achieved through the use of encryption techniques, which ensure that data transferred over the network remains secure and private. Users will be able to decide what information they want to share with corporations or advertising platforms. The Web 3.0 model is a paradigm shift from the current trend, where corporations own and control user data.

Web 3.0 will also give users the opportunity to monetize their data. Users will be able to sell their data to corporations or other interested parties, allowing them to profit from their own data. This feature is made possible through the use of decentralized marketplaces built on blockchain technology, which enables the exchange of data in a secure and transparent manner.

Interoperability

     Interoperability is a crucial feature of Web 3.0 that enables different applications to seamlessly communicate and exchange data with each other on a decentralized network. This can be achieved through the use of common protocols and standards that are widely adopted in the industry, allowing apps to work seamlessly across different devices and platforms, including TVs, smartphones, and other smart devices.

Web 3.0 enables developers to create decentralized applications that can operate across multiple platforms, without requiring users to go through a centralized service or platform. Developers can also use the decentralized nature of Web 3.0 to promote their applications more easily, as users can easily access and use these applications on different devices and platforms without any limitations or restrictions.

Interoperability has become a key focus for many blockchain-based platforms, with the aim of creating a more connected and integrated decentralized network. By establishing standards and protocols that enable different applications and platforms to communicate and share data, Web 3.0 is paving the way for a more open and collaborative digital ecosystem that is more accessible, transparent, and secure.

No interruption in service

     Distributed systems, like those in Web 3.0, are designed to be more resilient to service interruptions compared to centralized systems.

In traditional centralized systems, a single point of failure can result in service interruptions or outages, and Distributed Denial of Service (DDoS) attacks can be particularly devastating. However, in distributed systems, the lack of a central point of failure makes it difficult for attackers to target a single point to disrupt the network. This is because the network is composed of multiple nodes spread across various geographical locations, making it difficult to take down the entire system at once.

In Web 3.0, distributed systems can provide a robust platform for sharing essential data and services without worrying about interruptions or outages caused by DDoS attacks or other forms of service malfunctions. With a distributed system, data can be stored across multiple nodes, making it more difficult for an attacker to access or compromise the data.

Additionally, if one node goes offline, the system can continue to operate with the other nodes taking over its responsibilities. This makes Web 3.0 an attractive platform for building resilient and fault-tolerant systems that can continue to function even in the face of adverse events.

Blockchains without permission

     Web 3.0 seeks to enable blockchains that do not require a central authority, and thus operate as “permissionless” systems. The decentralized nature of these blockchains allows anyone to join and participate by simply creating an address on the blockchain. The ability to create blockchains without permission creates a range of new opportunities, including access for individuals who may have previously been discriminated against due to factors such as their gender, income, or geographic location.

These permissionless blockchains are powered by a network of nodes that perform the essential tasks required to keep the network operational, such as validating transactions and adding them to the blockchain. Unlike traditional centralized systems, there is no need for a trusted third party to validate these transactions or control access to the system. This means that users of the Web 3.0 can participate in the network without having to rely on any central authority or intermediary.

In a permissionless blockchain, every participant has equal rights and can participate in consensus mechanisms for verifying transactions. The blockchain is publicly accessible, and anyone can view its contents, making it highly transparent. This also means that users can be sure of the authenticity and immutability of the data stored on the blockchain, as the data cannot be altered or deleted without the consensus of the entire network.

     Semantic Web

     The Semantic Web represents a fundamental shift in the way we think about and use the web. By enabling machines to understand the meaning of web content, it has the potential to transform the web from a collection of static documents into a dynamic, interconnected web of data and knowledge.

Web 3.0 will also host the properties of a semantic web. Semantic webs had improved a lot over the last years and are more complex than the latest set of technology, the one used for Web 2.0. They allow data to be shared across multiple community systems, platforms and boundaries and will act as a bridge between different data formats and platforms. By using the semantic web, we will be able to connect, share and enjoy the Internet better than ever before.

The Semantic Web is an extension of the current web, designed to enable machines to understand and interpret the content of web pages and other digital resources. This means that, unlike the current web, where humans have to manually interpret and make sense of the content, machines will be able to do it automatically, opening up a whole new range of possibilities.

The Semantic Web builds on a set of technologies and standards, such as Resource Description Framework (RDF), Web Ontology Language (OWL), and SPARQL (a query language for RDF). These technologies enable the creation of metadata that describe the content and meaning of digital resources in a way that machines can understand.

In practice, the Semantic Web would allow machines to identify and extract information from web pages, and link that information to other related information, creating a web of interconnected and meaningful data. This would make it possible to create more intelligent and sophisticated web-based applications, such as virtual assistants, recommendation systems, and decision-making tools.

One of the key benefits of the Semantic Web is that it can facilitate data integration and interoperability, as machines can easily interpret and understand the meaning of data from different sources. This has important implications for fields such as healthcare, finance, and science, where interoperability and data sharing are critical.

     Ubiquity

     Ubiquity is the result of interoperability. With Web 3.0, we can access data and information through multiple applications without being limited to a specific device, so you will not have to worry about accessing the Web 3.0. If a device has basic internet functionality and connectivity, you are able to access the Web. All in all, our lives will change completely as we will be connected through a better set of technologies, such as artificial intelligence, blockchains and many others.

     The result: a compatible human-centric computer science network which preserves privacy for the next wave of the Web. AI and machines learning algorithms have become powerful enough to create useful predictions and actions, sometimes even lifesaving. When layered over the new decentralized data structures, potential applications go far beyond targeted areas.

     In Web 3.0, identity also works differently from what we are used to today. Most of the time, in Web 3.0 applications identities will be linked to the wallet address of the user interacting with the app in cause. Unlike Web 2.0 authentication methods, such as OAuth or email + password (which requires almost all the time the users to hand over sensitive and personal information), the wallet addresses are completely anonymous, unless in which the user decides to publicly expose his identity.

SourceLess Blockchain – short description

The SourceLess Platform is a software designed to run on the SourceLess Blockchain network, which is a decentralized platform for building and deploying blockchain-based applications. As a “Web3 native” platform, it is built to support the latest generation of the web, which emphasizes decentralization, security, and user control.

SourceLess is a software platform that is built on top of the SourceLess Blockchain network, and it leverages state-of-the-art AI technologies such as OpenAI GPT-3, Formwelt AI, and Github-Copilot to enable individuals and organizations to build their own custom ecosystems on the blockchain. These ecosystems can include a variety of programs, applications, and data, and they are designed to be completely protected against unauthorized access or malicious attacks. With the help of AI, SourceLess makes it easier for developers and organizations to create their own custom applications and programs, which can be integrated seamlessly with the blockchain network. The advanced AI technologies used in SourceLess also help to ensure that the data and programs are well-protected, making it an ideal platform for applications that require high levels of security and privacy. By utilizing the power of AI, SourceLess is able to provide a robust and flexible platform for building and deploying decentralized applications on the blockchain.

The SourceLess Platform offers several key features, including the ability to build and integrate various types of data and applications within a secure, decentralized framework. By leveraging the power of the SourceLess Blockchain network, users can benefit from enhanced security and privacy, as well as greater control over their data. The platform’s Launchpad feature makes it easy for users to develop and deploy their own programs, while the built-in protection of SourceLess Blockchain ensures that their data is always safe and secure.

The SourceLess Platform is a powerful software built on the network of SourceLess Blockchain. It is designed to provide advanced security features to individuals and businesses looking for a decentralized architecture that can protect against malicious attacks and exploits. The SourceLess Platform uses a distributed network that lacks a single point of control, ensuring that there is no central point of failure that can be targeted by hackers or other malicious actors.

This decentralized architecture provides multiple layers of protection for sensitive data and applications. With no central point of control, it becomes difficult for attackers to compromise the system, and even if they do manage to penetrate the network, they will not be able to cause significant damage. The distributed architecture ensures that each node in the network is responsible for a small portion of the data, making it difficult for attackers to gain control of the entire network.

The SourceLess Platform is an ideal solution for organizations that require the highest levels of security and privacy. It enables them to securely store and manage sensitive data, as well as to develop and run applications that require a high degree of security. Its decentralized architecture ensures that there is no single point of failure, making it extremely difficult for attackers to gain unauthorized access to the system.

What makes SourceLess Blockchain different?

SourceLess Blockchain stands out from other blockchain platforms due to several unique features and functionalities.

Firstly, Str.Domains (wNFT) is a revolutionary feature that has the potential to rival the World Wide Web (www). It provides an advanced, decentralized platform for creating and managing domain names, allowing users to exercise greater control over their web presence.

Another key feature of SourceLess Blockchain is Str.Talk, a communication platform with military-grade 512kb encryption. This ensures that all communications between users are secure and protected from eavesdropping or other forms of interference.

The platform also offers AI Builders, which enables users to create robust applications and websites without needing to have coding skills. This is made possible through the integration of cutting-edge AI technologies like OpenAI GPT-3, Formwelt AI, and Github-Copilot.

SourceLess Blockchain also includes a software-based smart contract called A.R.E.S, which governs the behaviour of the entire ecosystem. This helps to ensure that the platform operates smoothly and transparently, and provides greater confidence and trust to users.

The Proof of Existence Blockchain (POE) is another key feature of SourceLess Blockchain, which enables the owner of certain property (media, document, or file, etc.) to record its existence and later prove it.

Users of SourceLess Blockchain can also benefit from having their own zero-fee credit card, which can be used to withdraw money and make transactions.

Multi-layer AVATAR is a feature that allows users to share only the information they desire from their digital identity. This ensures greater privacy and control over personal data.

The platform also offers 100% encrypted cloud storage, which enables customers to protect their networks, applications, and data.

In addition, SourceLess Blockchain enables users to access Web2 through Web3, providing a seamless integration between the traditional web and the decentralized web.

Finally, the platform offers built-in libraries for files, images, and videos, which eliminates the need for third-party apps and licensing fees.

SourceLess Blockchain characteristics:

• Public and Private. – A unique, versatile, scalable, carbon-free, interoperable blockchain
• Soulbond token
• DLT – Distributed Ledger Technology;
• ZK-SNARKS – (nodes: < 1MB/node) available on every device
• P2P – peer to peer
• R.E.S. – a new programming language
• ISO 2022 compliance
• Private key to access your data (images, video, text)
• Digital Identity
• Brand protection
• Carbon Free

Main benefits

SourceLess Blockchain is a powerful platform that provides a range of benefits to users seeking to protect their sensitive data and intellectual property. Its unique features and cutting-edge technology make it a top choice for individuals and businesses seeking to take control of their digital identity and protect their valuable information.

• Visibility: Accurately know your sensitive data reside and share only the necessary information
• Protection: out-of-the-box data protection, breach prevention, data loss protection.
• Private Cloud: custom Virtual File System Views PER Domain AND
• Cybersecurity: Secure, Credible, Efficient, Non-Disruptive.
• Optimal User Experience: easy to build your domain and digital identity.
• Software Agnostic: independent of software applications provided by a third party
• Payments: easy to pay with our solutions, no fees, secure, compliance to the regulations
• Rapid deployment: Low-Touch Approach with intuitive and fast creation of “Str.identity”
• Intellectual property: timestamp your creation whether we are talking about an object or a work of art
• Business or personal domain: you can customize your domain and no longer depend on a third party for renewal, after purchasing you are the owner.
• Anonymity and Confidentiality: It is called an “anonymous” transaction when no one knows your identity and a “confidential” when the transaction and its content are unknown.

SourceLess Blockchain is a decentralized platform that offers many benefits to individuals and companies seeking to protect their sensitive data and intellectual property. One of the primary benefits is visibility, which allows users to accurately track their sensitive data and share only the necessary information, preventing data breaches and loss. Additionally, the platform provides out-of-the-box data protection and breach prevention, which eliminates the need for users to implement their own data protection measures.

One of the unique features of SourceLess Blockchain is its custom Virtual File System Views, which enable users to view their data in a way that is specific to their domain and subdomains. This provides a level of privacy that is not typically available on traditional cloud storage platforms.

Cybersecurity is another critical feature of the SourceLess Blockchain platform, which is designed to be secure, credible, efficient, and non-disruptive. The platform’s software-agnostic nature also means that it is independent of software applications provided by third-party vendors, allowing users to focus on their own solutions.

In terms of payments, SourceLess Blockchain offers easy payment solutions that are secure and compliant with regulations. The platform also offers rapid deployment, with a low-touch approach and intuitive and fast creation of “Str.identity,” which allows users to quickly build their domain and digital identity.

Intellectual property protection is also a key feature of SourceLess Blockchain, allowing users to timestamp their creations, whether they are objects or works of art. This feature provides a level of authenticity and security that is essential for creators seeking to protect their intellectual property.

With SourceLess Blockchain, users can create their own business or personal domain and customize it to their liking, eliminating the need for third-party providers for domain renewal. The platform also provides a high level of anonymity and confidentiality, allowing users to carry out transactions anonymously and keep the content of their transactions confidential.

AI & Blockchain

Integration of Blockchain & AI technology can bring one single entity with a symbiotic relationship, which helps to solve many issues and open new opportunities, both technologies have their own features and advantages, but when they are used together, these technologies offer a new way of doing business, Big Data is the oil of the 21st century. AI is completely dependent on the input of data, through data, AI receives information about the world and things happening on it.

Basically, data feeds AI, and through it, AI will be able to continuously improve itself. Blockchain is essentially a technology that allows for the encrypted storage of data on a distributed ledger (fully secured databases). When combining blockchains with AI, we have a backup system for the sensitive and highly valuable personal data of individuals and business data of companies.

Imagine AI programs that need our data will be required to buy data directly from its creators, through data marketplaces. This will make the entire process a far fairer process than it currently is, without tech giants exploiting its users. Blockchain’s digital record offers insight into the framework behind AI and the provenance of the data it is using. Using blockchain to store and distribute AI models provides an audit trail, and pairing blockchain and AI can enhance data security.

AI can rapidly and comprehensively read, understand and correlate data at incredible speed, bringing a new level of intelligence to blockchain-based business networks. Providing access to large volumes of data from within and outside of the organization, blockchain helps AI scale to provide more actionable insights, manage data usage and model sharing, and create a trustworthy and transparent data economy.

Converging DLT with AI gives data providers the opportunity to share their data while keeping it confidential as needed and maintaining the right to manage data access, enabling businesses to safely and efficiently train algorithms on the data to derive insights.

Smart contracts have emerged as one of the most efficient and effective ways to streamline data management. By converging AI and smart contracts, there is great potential to improve AI and machine learning (ML) driven applications and to streamline data management functions.

A smart contracts-based integration layer across applications can be a powerful addition to the enterprise data management toolkit. It accelerates digital and insights-driven business transformation and unlocks a variety of operational benefits.

Using smart contracts, companies can easily build contract-driven orchestration layers that are persistence layer agnostic (meaning they can run on either databases or blockchains).

Generative Pre-trained Transformer 3 (GPT-3)

     The GPT-3 is a self-regulating language model that uses deep learning to produce human-like text. 

     It’s the third-generation language prediction model in the GPT-n series (and the successor   to the GPT-2) created by OpenAI, a San Francisco artificial intelligence research lab. The full version of the GPT-3 has a capacity of 175 billion machine learning parameters.

The GPT-3, which was introduced in May 2020 and has been in beta testing since July 2020, is making it seemlike a trend in natural language processing systems of pre-trained language representations.

     GPT-3 was used to create articles, poems, stories, news and dialogues using only a small amount of text.

     The GPT-3 is also used for automated conversational tasks, responding to any text that a person types on the computer with a new piece of text appropriate to the context.

GPT-3 can create anything with a text structure, and not just text in a human way. It can also automatically generate text summaries and even programming code.

     When a user provides text, the system detects the language and uses a preacher of text    to create the most likely output. Even without much adjustment or additional training, the model generates high-quality output text that feels similar to what the human mind would produce. 

     Whenever a large amount of text needs to be generated from a robot based on a small amount of text entered, the GPT-3 offers an excellent solution. There are many situations in which it is not practical or effective to have a human at hand to generate text or to need the automatic generation of a text that seems human.

For example, customer service centers can use GPT-3 to answer customer questions or support chatbots; sales teams can use it to connect with potential customers and marketing teams can write articles using GPT-3.

     The OpenAI API can be applied to virtually any task that involves understanding or generating natural language or code. It offers a spectrum of models with different levels of depth, suitable for different tasks, as well as the ability to adjust your own custom models. These models can be used for everything from content generation to semantic re-search and classification.

     The API is powered by a family of models with different capabilities and price points. The basic GPT-3 models are called Davinci, Curie, Babbage and Ada. The Codex series is a descendant of the GPT-3 that has been trained in both natural language and code.

     So, whether you want to build a chat bot, whether you want to create a translation platform or even build and generate a virtual game, GPT-3 is the future of creation.

FORMWELT

Imagine a world where children and adults from everywhere learn together systemically. A world in which people communicate with each other in a conceptually clear and meaning-dense understanding-oriented way, and where human and artificial superintelligence grow synergistically.

     FORMWELT is a coding language for language and meaning. It is a linguistic system based on the injunction of acquiring a definition. Its core consists of about 320 references: we can consider them words with concrete meaning that explain each other, without gaps.

The FORMWELT core is more than enough from a semantic point of view. It contains the basic concepts necessary to describe any phenomenon that one can think of.

     Using the FORMWELT core you can clearly say what can be said and do what can be done, resulting in a significant description.

     FORMWELT always offers exits to empirical, practical or mental experience: so that you can understand what you are saying, do what you say and see, feel, hear, taste or smell the results of your descriptions.

     FORMWELT offers a language that can be spoken just like conventional language. In fact, it is based on the language we speak every day and improves it, since each user can further improve it.

     FORMWELT is used in the existing languages of our world and the results of interactions based on the language programmed by FORMWELT will be better coordinated, less prone to misunderstandings and failure and more accurate and much more in line with the plans of the individuals who use it.

     The core is constructed from references, each reference being represented by a fairly short string of words: a label indicating its referent, which is (mostly) constructed from labels indicating their referents.

Sufficiency of the kernel means that it uses only words that are either referenced in the kernel or can be understood by the simplest and most common cognitive or practical concepts.

     In short, FORMWELT is a language we can use to communicate with each other, regardless of nationality or language, and to understand each other directly without leaving room for interpretation.

So, how does it work?

The kernel consists of references, each reference is a rather short relation of words: a label pointing to its referent, which is (for the most part) built of labels pointing to their referents.

Self-sufficiency of the kernel means that it only uses words which are either referenced within the kernel or can be understood by most simple and common cognitive or practical concepts.

Each reference provides an instruction or a rule. When you follow the references, you will move within a most complex web of cognition and practice (operation). In following a referent, you will produce your own experiences with this specific part of the cognitive web, you will learn and understand increasingly and from diverse points of view.

You will be able to reproduce and communicate the data, experiences, cognitions and operations you have produced in your work with this verbal net by using your own set of labels to describe them. Others will understand you because your labels are their entrances to the net to make their compatible experiences.

The foundation of the kernel of FORMWELT is formal, is mathematical but that does not hinder the familiar flow of reading, talking, communicating and writing because this foundation can be kept invisible when not wanted and made visible if needed.

People who do not know FORMWELT listening to others using FORMWELT would not realize the difference. That can simplify matters. No one has to learn code in order to talk to an AI except its developers and this only necessarily until they have taught it to program itself and then they can use FORMWELT to develop even more intelligent Artificial Intelligence.

The references within the kernel of FORMWELT are organized in modules. Each module provides you with the tools to perform a specific and most basic cognitive or analytical or operative function. The understanding of and the capability to use FORMWELT does not spring from learning single references by heart but it grows by utilizing the parts of its reference system which are in your actual situation helpful to understand and express yourself.

The real power of FORMWELT unfolds by putting the kernel to use in your mind and in your communication with others: You will be able to describe the complexity of the world precisely. You will be able to develop new and meaningful concepts. Using the kernel, you can develop own or consensual reference systems to describe new PERSPECTIVES, thus program your own language and in teamwork with others your project specific language.

FORMWELT delivers the intellectual means to develop an interface that can help a human being to recreate and simulate parts of his/her mind using a computer. This computer aided constructs can augment her/his daily experiences and proceedings. Moving on from here it might become possible to simulate complex and meaningful maybe even self-referential or self-conscious communication behaviour in a machine.

Imagine clear spoken learning materials that help us from our early days on to learn with pleasure as much as we like as fast as we can without the ever-lurking demon of vagueness always using its chance to jostle us into the deep and dark abyss of misunderstanding and foolish narrow-mindedness.

Scientific teams can develop their project specific language clearly and effectively when based on FORMWELT. Descriptions of scientific views can be reviewed based on FORMWELT. Most certainly ways can be found to improve them and maybe we even find some important things we have overseen so far because we could not get a clear view from the angle we needed.

FORMWELT is a new way of thinking and this will improve intelligence. So far incorporated in FORMWELT are concepts of mathematics, logic, model theory, science theory, information theory, system theory, sociology, philosophical constructivism, etc.

FORMWELT is not an artificially constructed hybrid language. FORMWELT is spoken in the existing languages of our world, but the results of interactions based on language programmed by FORMWELT will be better coordinated, less prone to misunderstanding and failure, more precise and much more in accord to the plans of the individuals who use it to realize their plans.

As a creative tool FORMWELT opens up new ways of self-description, perception, action and conceptualizing your view of the world and the universe and especially your view of the living beings you are sharing this planet with.

Another in a way built-in application of FORMWELT is language based behaviour research analyzing the user activities on an internet service for FORMWELT.

FORMWELT AI
ELI – Elevated Linguistic Intelligence

ELI is cutting-edge evolution for Artificial Intelligence. In synergy with ELI, we will unleash our innate complexity management skills and explore potentials that lie dormant in all of us and that, until now, have only been accessible for few.

This AI will help you to review your concepts, make suggestions, and support your organizational work. While you rest, sleep or do other things, ELI will help you to exchange information with your colleagues and partners ELI’s about your progress and continue to work for you.

     Internet of Things (IoT)

     The Internet of Things (IoT) refers to the billions of objects and devices around the world that are connected to the internet, collecting and exchanging data. All personal, commercial and industrial devices are equipped with chips through which they collect and communicate various information without human intervention.

     Commercially, many of these objects aim to improve what is known as Quality of Life (QoL), easing people’s daily responsibilities, and industrially, interconnecting machines and appliances to further revolutionize the market.

     According to a study released by the Gartner Institute (source: www.gartner.com) “more than 50% of new businesses will incorporate elements of IoT”. According to the same study, utility providers and governments are and will remain the most important users of IoT technology.

     The IoT segments that are growing the most during this period are the automotive industry (autonomous cars), automated services (street lighting) and healthcare providers, who use this technology mostly for monitoring chronic diseases.

     The adoption of new technologies is visible across industry, in public institutions and in the everyday lives of consumers. The data generated by the devices helps companies operate more efficiently, gain insight into business processes and make real-time decisions.

     By combining device connectivity with systems automation, information can be collected, analysed and, by default, a decision can be made in response. IoT can therefore help a person accomplish a task. Moreover, IoT gives devices the opportunity to communicate not only within a private network, but also between different types of networks, creating an interconnected world.

Benefits of IoT for businesses:

     Even though the benefits for business differ depending on the way of implementation, a common thread can be observed: companies have access to more data about their products and internal systems, thereby possessing a stronger ability to make changes.

     For example, within the manufacturing industry, various retailers are introducing sensors into product components that transmit data on their performance. In this way, companies can identify when a component is prone to failure and replace it before it causes a real danger. Furthermore, businesses can use the data to streamline their systems and supply chains, given reliable information about their functionality.

Considered at the size of an entire supply chain or within a particular industry, the impact can be huge, noticeable in the accurate delivery of materials and the efficient management of production throughout its lifecycle.

     Benefits of IoT for consumers:

     New technologies come with the central promise of making our environment (homes, cars) smarter, easier to measure and manage. By developing such applications, consumers have the opportunity to optimise a lot of processes and measure their performance, schedule events and even prevent certain hazards.

     But apart from the obvious benefits for large companies and users who want a smart home where things work at their performance, there are also some risks as there is a lot of sensitive information or personal data involved in these processes.

     Just as having a social media account is not entirely free, as we “pay” for it with personal data that is passed on to companies and marketing and analytics departments, so goes the IoT: the more smart objects we own, the more personal and behavioural data we send out into the void, without knowing exactly where it ends up or how it can be used.

     The SourceLess Blockchain platform retains all the benefits and performance of IoT, making it a secure and encrypted environment.

Internet of Things is the concept of connecting any device (so long as it has an on/off switch) to the Internet and to other connected devices. The IoT is a giant network of connected things and people, all of which collect and share data about the way they are used and about the environment around them. Devices and objects with built in sensors are connected to an Internet of Things platform, which integrates data from the different devices and applies analytics to share the most valuable information with applications built to address specific need. IoT is creating new opportunities and providing a competitive advantage for businesses in current and new markets. It touches everything—not just the data, but how, when, where and why you collect it?

TechJury estimates that 31 billion devices will be connected to the Internet by the end of this year. “By 2030, this figure is expected to jump to 125 billion. Statista recently published a report stating that by 2025 75.44 billion devices will be connected to the Internet.

Given the amount of data generated by IoT devices, it is no wonder that data privacy and security are among the major concerns with regard to IoT adoption. Once devices are connected to the Internet, they become vulnerable to possible security breaches in the form of hacking, phishing, etc. Frequent data leaks from social media raise earnest concerns about information security standards in today’s world; were the IoT to become the next new reality, serious efforts to create strict security stands need to be prioritized.

IoT is no longer a concept only discussed in laboratories, think tanks, and technology companies. It has transcended those boundaries and is today a reality.

According to McKinsey, most IoT value can be created in B2B applications and factory settings, including manufacturing plants, farm yield management, and predictive maintenance. It also sees the human health sector as a top IoT value creator along with worksites, smart cities, retail environments, autonomous vehicles, ship navigation, and defense operation management.

With the adoption of the Consumer Privacy Act in California and the General Data Protection Regulation (GDPR) in Europe, privacy is now front and center for many consumers. However, despite all the global concern over the unethical intrusion into people’s privacy and the unacceptable use of their personal data for profit, it remains pervasive among the Big Techs, such as Google, Amazon, Facebook, and Microsoft.

Meanwhile, blockchain startups are building decentralized networks and applications to give back to the people ownership of their privacy, intelligent devices, and the valuable information they generate.

IoT and blockchain are a perfect pair. One of the main issues with IoT is its security, and that is where blockchain comes to its aid by securing the data from IoT sensors. But this is not just a one-sided relationship, as IoT tends to evolve with the help of blockchain, even blockchain becomes more useful ledger and can be also be claimed to be indispensable in some areas.

Internet of Things (IoT) could unlock a global economic value of up to $12.6 trillion by 2030, McKinsey states in their report. From the fitness trackers we wear, to the smart thermostats we use in our homes, to the fleet-management solutions that tell us when our packages will arrive, to systems that monitor the quality of the air we breathe, the IoT has become embedded in our lives and in the operations of enterprises and governments.

IoT implications McKinsey:

• Human Health: Devices (wearables and ingestibles) to monitor and maintain human health and wellness; disease management; increased fitness; higher productivity.
• Home: Home voice assistants; automated vacuums; security systems.
• Retail Environments: stores, banks, restaurants, arenas—buildings where consumers physically consider and purchase products and services; self-checkout; in-store offers; inventory optimization.
• Offices: Energy management and security in office buildings; improved knowledge worker productivity.
• Factories: Manufacturing plants, hospitals, and farms; operating efficiencies; optimizing equipment use and inventory.
• Work Sites: Mining, oil and gas exploration and production, construction; operating efficiencies; predictive maintenance; health and safety.
• Vehicles: including cars, trucks, ships, aircraft, and trains; condition-based maintenance; usage-based design; presales analytics.
• Cities: Public spaces and infrastructure in urban settings; adaptive traffic control; smart meters; environmental monitoring; resource management.

With a device identity protocol, each device can have its own blockchain public key and send encrypted challenge and response messages to other devices, thereby ensuring a device remains in control of its identity. In addition, an intelligent device with a digital identity can develop a trackable reputation or history on the blockchain, Jeremy Cuomo – IBM blockchain lead.

Machines are emerging in our homes, businesses, and cities at a blistering rate. In 2020, more than 150 new machines were activated every second, connecting the physical and digital worlds like never before. By 2030, McKinsey predicts machines will outnumber humans by 10:1.

Over the past decade, centralized corporations have been the gatekeepers and sole beneficiaries of the largest technology revolution in human history. Tech giants control our devices, monitor our activities, mine our data, and earn huge profits with no value returned to users. Users own and control their machines, as well as the data and value their machines generate.

PricewaterhouseCoopers (PwC) predicts that 50% of all jobs will be partially automated by 2030, and Deloitte estimates that 30% of the world’s workers will be replaced entirely by machines within the next 20 years.

Smart home devices, wearables, vehicles, and all types of devices can become “medievalist node” and offer input to smart contracts, we can deliver real time and continuously information from stock market price, weather, Global Positioning Systems or Virtual Positioning System, camera feeds (the footage from a road accident can be sent directly to a smart contract), parking system, charging EV, etc.

The possibilities are unlimited, we can map the physical world into the digital world, users can earn digital assets or digital reputation based on their real-world actions that are captured/verified by machines. Our 5 senses are replaced by the senses/sensors of the devices that map the surrounding world in recreate Twin World where many people can spend their lives or hold their money and their assets (cars, houses, music, photos), bidirectional gateway/portal to teleport from one world to other.

We can think on Autonomous Decentralized Blockchain Machines where machines have own identity and they make their own decisions – Proof of Existence.

CHAPTER 6. TOKENOMICS

Governance Tokens

SourceLess Blockchain

STR Token – SourceLess Ecosystem Governance Token

Total Supply: 63 Bln.                                               63.000.000.000 STR

Max Supply: 63 Bln.                                                63.000.000.000 STR

STR Token supply distribution:

Treasury: 42 Bln.                                                     42.000.000.000 STR

Market: 21 Bln.                                                       21.000.000.000 STR

SourceLess Blockchain STR Tokens Distribution

STR Tokenomics Breakdown

STR Token supply and distribution

The STR token system has a total supply of 63 billion tokens, which are distributed at a ratio of 3:1 between the STR Treasury Pool and the Available Market Supply. It is important to note that the maximum supply of STR tokens will remain fixed at 63 billion, and there is no possibility of mining new tokens.

The STR Treasury Pool is exclusively dedicated to the acquisition of Str.Domains, and it will hold the total amount of STR tokens that result from such sales. This Treasury Pool confers value to each Str.Domain by retaining the original STR token amount spent at acquisition. By doing so, this Treasury Pool plays a crucial role in facilitating the SourceLess Marketplace where users can auction off and/or purchase Str.Domains.

The STR Treasury Pool

The STR Treasury Pool contains:

• 35% of Str.PersonalDomain sales values
• 14% of Str.BusinessDomain sales values
• 1/3 of Str.Domain re-sales value
• 10% of NFTs and NFT collection sales revenues
• 10% of Hard/Soft-Fork and White-Label revenues

By reducing the supply, the value of each coin can increase over time, creating a potential store of value for holders. The SourceLess Blockchain achieves this deflationary effect by locking in the coins used for purchasing Str.Domains with a smart contract.

This approach creates a unique economic model for the SourceLess platform, which is designed to incentivize users to acquire and hold STR domains, thus contributing to the deflationary nature of the cryptocurrency. This model creates a dynamic marketplace where users can buy and sell Str.Domains, which are backed by the STR Treasury Pool, ensuring their original value is maintained.

STR Working Capital Pool

The STR Working capital Pool’s role is to insure the required liquidity for transactions at high speed. If required, the STR Working Capital Pool can also cover the cost of fees for the SourceLess Ecosystem users as a backup to the CCoin Network Financial Core. The STR Working Capital Pool will also credit the amount transferred by the user instantly, to ensure the fastest time for execution.

The STR Working Capital Pool has a starting capital of 1,26 Bln STR Tokens and retains:

• 35% of Str.PersonalDomain sales
• 14% of Str.BusinessDomain sales
• 1/3 of revenue from Str.Domain re-sales

STR Development Pool

The STR Development Pool represents 30% the amount of STR Tokens reserved from the Str.Domain sales and will be re-invested into marketing, research and development.

The STR Development Pool has a starting capital of 0.77Bln. Bln STR Tokens and retains:

• 30% of Str.PersonalDomain sales
• 12% of Str.BusinessDomain sales
• 1/3 of revenue from Str.Domain re-sales

STR Token Market Supply

The Market Supply represents the maximum amount of available STR Tokens in circulation at present and the STR Tokens due to be gradually released for circulation, according to the G.M.R.M (Gradual Market Release Mechanism)

The Market Supply is distributed, according to the Tokenomics as follows:

Team Distribution – 4.5 Bln. STR Tokens

The total amount of STR Tokens will be distributed over 60 months (5 years G.M.R.M) period from 2023 to 2028, according to predetermined ratios.

SourceLess DLT and Mesh Rewards – 4.5 Bln. STR Tokens

SourceLess dedicates 4.5 Bln STR Tokens as rewards for users that actively participate in the network expansion and development (5 years G.M.R.M). Once exceeded, rewards will be represented by a percentage sales kick-back.

The Rewards algorithm will be presented as an annex at the time of its reveal.

STR Token G.M.R.M – Gradual Market Release Mechanism – 2 Bln STR Tokens

This system represents a means of releasing additional STR Tokens from the reserve at a 3:1 ratio to Str.Domain sales. For every 3 STR Tokens spent on Str.Domain acquisitions, SourceLess increases the available market supply with 1 STR Token, up to the defined limit at 2 Bln STR Tokens.

Domain Category and Subcategory Pools – 2 Bln. STR Tokens

Str.Domains (wNFT) will be divided into categories and subcategories. Each category is represented by a liquidity pool that will hold the equivalent quantity coins and STR Tokens, at parity with the price, according to its predetermined price. The full monetization scheme for categories and subcategories is expressed below.

STR Token market distribution and community rewards – 1.26 Bln. STR Tokens

Seed sale: 500 M. STR Tokens

AirDrop Program: 100 M. STR Tokens

Bounty Program: 100 M. STR Tokens

Private Sale: 300 M. STR Tokens

IDO: 10 M. STR Tokens

IEO: 13 M. STR Tokens

Total CEX: 237 M. STR Tokens

Avg. Tokens / CEX: 20 M. STR Tokens

Working Capital Pool – Initial Supply – 1,26 Bln. STR Tokens

The Working Capital Pool will be funded with a starting capital of 1,26 Bln. STR Tokens. This pool will also be funded by the sale of Str.Domains, as exemplified at pt.4.  

NGO Donations – 2 Bln. STR Tokens

SourceLess will donate 2 Bln. STR as 2% of the Str.BusinessDomain sales value, for all registered NGOs in the SourceLess Charity Platform and the ecosystem’s users can vote on fund allocation.

Partnership Rewards – 1.5 Bln. STR Tokens

1.5 Bln. STR Tokens are to be distributed toward the SourceLess partners and affiliates that are actively contributing to the development of the network. (5 years G.M.R.M)

The partner and affiliation models will be presented in an annex at the time of release.

Staking Rewards – 1.15 Bln. STR Tokens

1.15B STR Tokens are reserved as a reward for the Staking program. This service is limited due to the SourceLess Ecosystem’s functionality and they are gradually released in the market over a multy-year period. (5 years G.M.R.M)

Marketing and Development – 0.77 Bln. STR Tokens

The STR Development Pool will receive a starting capital of 0.77 Bln. STR Tokens. This pool will also be funded by the sale of Str.Domains, as exemplified at pt.3 (5 years G.M.R.M)

World Wide Blockchain – WWB & DLT Services and Products

SourceLess Products

Domains

Str.Domains will be priced in USD and sold for the real time equivalent in STR Tokens, through the SourceLess Platform. The STR Tokens used to purchase the Str.Domain will be transferred to the STR Treasury Pool and distributed according to tokenomics.

Ex.: STR = 0.0076 USD => Str.PersonalDomain = 20 USD => The domain price will be 2631 STR

As the price of STR Tokens increases in relation to USD, the quantity of STR Tokens, necessary to acquire a Str.Domain, will decrees.

Ex.: STR = 0.0420 USD => Str.PersonalDomain = 20 USD => The domain price will be 476 STR

Str.PersonaDomains ~20 USD

The Str.PersonalDomain is the primary SourceLess product and serves as the user’s access and identity in the new web.

With one-time payment and life-time ownership, the purchase of an Str.PersonalDomain includes access to:

• Secure Browser
• Platform
• Digital Wallet – 0 Fees
• Physical Card – 0 Fees – SourceLess MasterCard
• HEX – 0 Fees – Hybrid Exchange
• Marketplace
• Talk
• SourceLess Metaverse Key
• 1Gb Initial Hosting Space

The STR Tokens from Str.PersonalDomain acquisition are distributed according to tokenomics as follows:

20 USD converted to STR Tokens and deposited in the STR Treasury Pool, Working Capital and Development Pool as follow:

• 35% STR Treasury Pool
• 35% STR Working Capital Pool
• 30% STR Development Pool

Str.BusinessDomain ~200 USD

The Str.BuinessDomain is dedicated for business use and can be purchased under your Str.PersonalDomain or free-standing by a private business.

The purchase of an Str.BusinessDomain includes the following additional benefits:

• Launch-Pad products
• Tokenization / Monetization /create NFT Collections
• Additional sub-domains
• 10Gb Initial Hosting

The STR Tokens from Str.BuinessDomain acquisitions are distributed according to tokenomics as follows:

• 40% SourceLess:
• 14% STR Treasury Pool
• 14% STR Working Capital Pool
• 12% STR Development Pool
• 35% Subcategories
• 25% Categories

Premium and Top Brand Str.Domains 

Premium and Top Brand Str.Domains are reserved and available for auction in the SourceLess Marketplace. The full list and conditions can be found at wNFT.eu*

A Str.PremiumDomain is defined by the following rules:

• 4 characters or less
• Custom names
• Top Brands

Top Brand domains may be pre-reserved and offered directly to the Brand.

SourceLess will pre-register Str.BusinessDomains for Top Brands globally and they will be available to purchase by the SourceLess Ecosystem users, in case the company refuses purchase.

Str.Domain re-sales

Str.Domains can be auctioned off/for in the SourceLess Marketplace with a 30% fee on net revenues resulted from sales.

Ex.: Str.CarlCox is bought for 20 USD and later sold at auction for 200 USD. The 30% fee is applied for 180 USD, meaning 54 USD and the user receives 146 USD

The revenue generated by SourceLess from Str.Domain resales in distributed as follows:

• 1/3 STR Treasury Pool
• 1/3 STR Working Capital Pool
• 1/3 STR Development Pool

Refund Policy and Money Back Guarantee

Users purchasing a Str.PersonalDomain have a 100% money-back guarantee as long as they have been validated through KYC and AML.

Users purchasing any other Str.Domains are not eligible for refunds.

NGOs / Public Institutions / Governments / Universities

SourceLess offers its technology for free, along with implementation support and maintenance for the above categories.

SLNN Mesh Internet – SourceLess Ledger Network Nodes

Mesh Internet and Blockchain Hybrid Technology

The SourceLess Mesh Internet Node is part of the SourceLess Network and provides users with a private* internet.

The Mesh Node has the capacity to host the user’s data or to outsource hosting for a fee, thus generating income for users.

The price and algorithmic data hosting fee scheme will be annexed at the time of release and available at wNFT.eu

SourceLess Services

Data Hosting

SourceLess offers additional data hosting services for Str.Domain holders.

The data hosting plan and prices will be annexed and available at wNFT.eu

BusinessDomain Subscription

SourceLess offers additional sub-domain acquisitions as a monthly/yearly subscription for Str.BusinessDomain holders.

• 10 additional sub-domains
• 100 additional sub-domains
• additional sub-domains
• 000 additional sub-domains
• Unlimited additional sub-domains

The revenue generated from subscription sales will be distributed according to Str.BusinessDomain model, according to tokenomics.

The subscription plan and prices will be annexed and available at wNFT.eu

SourceLess Blockchain Hard/Soft-Forks

Hard/Soft-Forks allow the SourceLess partners to have their separate and customizable Blockchain Fork under the governing rules of the SourceLess Ecosystem.

Hard/Soft-Forks are granted directly by the SourceLess board through petition and approval through vetting process. For details, write to business@sourceLess.io

SourceLess Blockchain White-Labels

White-Labels allow the SrouceLess partners to rebrand the technology and receive additional rights and obligations under the governing rules of the SourceLess Ecosystem.

White-Labels are granted directly by the SourceLess board through petition and approval through vetting process. For details, write to business@SourceLess.io

CHAPTER 7. CASE STUDIES

CYBERSECURITY

In a report released in 2021, research firm Gartner forecast that global spending on information security and risk management services will jump to $150.4 billion this year, a gain of 12.4% from last year.

In the Gartner 2021 CIO Agenda Survey, cybersecurity was the top priority for new spending, with 61% of the more than 2,000 CIOs surveyed increasing investment in cyber/information security this year.

Security services including consulting, hardware support, implementation and outsourced services represent the largest category of spending in 2021, at almost $72.5 billion worldwide.

Information Security & Risk Management End User Spending by Segment, 2020-2021 (Millions of U.S. Dollars)

Source: Gartner

www.gartner.com

May 17, 2021

THE AUTO INDUSTRY

While cars are getting closer to complete connectivity, electric and autonomous propulsion, the need for a well-developed and well-coordinated database increases. Also, the presence of technology in the manufacturing process of a car, can present a breach in security.

Lately it was not only shown that car theft is possible without the key in the ignition, but also manipulating various components of the vehicle while it is running, by people who have managed to breach the car’s software.

In 2015, an experiment performed by 2 IT experts has demonstrated that they can take complete control of a car from thousands of kilometers away.

SourceLess Blockchain allows for the installation of a node with a memory size below 1MB on the car’s software in a way that any security issue will be cancelled, running in SourceLess Blockchain and not allowing any viruses or malware to execute.

If every car would have had a SourceLess Blockchain node (1 MB) preinstalled on the car’s computer from the factory through the SourceLess Platform (str.domain), any eventual frauds and deficiencies that can show up could be verified:

• Changes to the real mileage;

• Changes to the car’s parameters;

• Security;

• History of generic errors invalidated in the main computer;

• The unique digital identity of the property;

• The car history, regardless of the service where it was fixed;

• The instant reporting of the vehicle errors to the service;

• Reminders of the various legal inspections that need to be performed;

• Checks required in order to eliminate the risk of crashes.

INSURANCES

The usage of SourceLess Blockchain through the SourceLess Platform allows insurance companies to introduce new innovative business models, to improve services, to optimize various operations and secure its entire network through encryption.

The SourceLess platform allows the complete control over all of the computers inside an insurance company, such that the company will streamline and maintain its network intact.

The SourceLess platform allows an insurance company to use all of the updated software within it, being able to choose the Public or the Private version based on the documents. Through the SourceLess Platform, insurance companies can utilize AI (artificial intelligence), being able to develop, improve and automate the current processes.

The Blockchain will introduce the security and transparency of the operations, helping companies in reducing costs and automate various operations. The combination of the blockchain with smart contracts and IoT can completely revolutionize the insurance sector and offer its users a transparent management system, incontestable and extremely responsible. It is enough to register any accord in the smart contract and to save it in the Blockchain, such that this will be automatically launched based on the terms previously established by both parties.

Through the SourceLess platform, any ensured good can become a node in the SourceLess Blockchain network, thus having permanent awareness of its situation and with any fraud attempt being controllable.

If a car has a SourceLess Blockchain node installed, then the insurance company will be able to check all the LIFETIME technical data of the vehicle in real time. The same issues could be avoided in the case of house insurance or goods that can allow the minimum of connectivity (Alarms, Smart systems, etc.) through the SourceLess Platform. Through this method, potential frauds and litigations can be avoided.

The SourceLess Platform proves that it is capable of solving most problems, offering insurance companies and their partners a reliable and transparent instrument for the efficient capturing, storing, managing and utilization of data regarding vehicles and goods, thus removing potential frauds.

CERTIFICATION AND SCREENING OF GOODS

The manufacturers of goods from all around the world can use SourceLess Blockchain to create digital certificates for every product they have. This aspect can help both the consumers and the distributors to immediately detect the origin of a product, regardless of the reasoning behind the request.

For example, such certificates can be used for food, which means that the route can be retraced in case a consumer finds an altered product or is simply not satisfied with the promised quality. Through the same method, clothes and accessories (from standard to luxury items) can be certified in order to ensure not only their quality, but their authenticity as well. Thus, the number of counterfeit products on the market could be reduced.

HEALTH

Utilizing SourceLess Blockchain through the SourceLess Platform will allow medical companies to introduce innovative business models, improve services, optimize various operations, reduce cost, have complete security over their data through encryption and have total control over their network.

The SourceLess Platform allows full control over all the computers inside a medical company; therefore, the company will streamline and maintain its network intact, with the help of SourceLess Blockchain.

     The SourceLess Platform allows a medical company to use all the updated software, being able to choose between the Public or Private version, based on the documents they are working with.

The SourceLess Platform offers the possibility of an instant connection between different entities of the medical field: Ministry-Company-Hospital-Doctor-Patient. Thanks to this, the useless bureaucracy is avoided, streamlining the process for everyone involved. For example, falsifying a patient’s history will become impossible.

Medical research could benefit from AI software integrated in the SourceLess Platform, opening new horizons. Creating new patterns and methodologies through AI, the SourceLess Platform will allow everyone with permissions (private blockchain) to utilize, collaborate and put into practice.

The SourceLess Platform will allow the direct connection of the Medic to the Pharmaceutical systems (Health insurance bureau – Pharmacy), thus eliminating any fraudulent attempt (digital signature) or system stoppage (the data of the patient is kept for life), basically thriving towards eliminating human error.

The SourceLess platform will allow through AI software the development of treatment schedules that can be followed and updated based on the medication available on the market.

Taking into consideration all the data regarding the health of billions of people in the online field, the speed at which the information is processed by the AI and how fast this data is associated, will be reflected on the treatment practices.

Pharmaceutical companies from around the world can use SourceLess Blockchain in order to create digital certificates for every product they have. This will help both consumers and distributors in finding and checking the origin of a product through the SourceLess Platform, regardless of the reason for the request.

THE PUBLIC SECTOR AND GOVERNMENTS

The public sector and governments which use the SourceLess Platform based on the SourceLess Blockchain network, benefit from the safety of data protection, streamlined processes, reduced fraud, waste and abuse, increasing in the meantime the trust and responsibility.

On a governance model based on the SourceLess Platform, individuals, governments and institutions share the resources through a registry distributed securely through encryption. This structure eliminates a single point of failure and inherently protects the citizen’s and government’s sensitive data. The SourceLess Platform can integrate all the software used by the central and local authorities, which can then be optimized and improved with the help of AI.

     The SourceLess Platform used by governments and public institutions has the potential to solve inherited problems and allow for the following advantages:

• The safe storage of government, citizen and commercial data;

• Decreasing the number of work intensive processes;

• Reducing excessive costs associated with the handling of liability;

• Reduced potential for corruption and abuse;

• Increase of trust in the government and online civil systems.

The format of the shared registry can be used to support a series of government applications and from the public sector, including payments, registering of lands, identity management, supply chain tracking, healthcare, corporate registering, taxation of vote and the management of judicial personnel.

The SourceLess Platform ensures the following benefits:

     The proof of property rights and transfers

     Land transactions and proof of ownership requests can encumber the government agencies with documents and administrative work.

     By using SourceLess Blockchain, the governments can permanently stock active transactions such as lands, properties or vehicles, in a public registry.

     In consequence, the government has greater transparency in land transactions, while interested citizens who are looking for a piece of land can gather the right information because all of the sales -actual and subsequent – are registered, marked and permanently stored.

     This process can also reduce the possibility of corruption a lot, due to the implementation of the shared registry being safer by default.

Self-performing contracts

     The traditional execution of legal contracts is expensive for both governments and their citizens. However, smart, self-executing contracts, enabled by the SOURCELESS PLATFORM, can eliminate the need for an intermediary and improve contract creation and execution.

These contracts are publicly accessible and secure within the network. The lack of an intermediary has reduced transaction time by over 90%.

     Social benefits management

     Government schemes that provide social benefits, such as unemployment, can be misused and infiltrated by certain individuals and groups, such as cyber attackers.

SOURCELESS PLATFORM can improve records management and provide protection against them although, privacy issues need to be addressed thoroughly. Keeping IDs and anonymized data in the employer database while storing the encrypted hash key (a fingerprint) in the SOURCELESS PLATFORM can help protect data.

     With PLATFORMA SOURCELESS, a government can administer its retirement program with the additional benefit of reduced management costs.

     Document validation

     Governments are constantly looking for centralized, cloud-based solutions to validate documents for all their citizens, and SOURCELESS BLOCKCHAIN may be the solution.

     SOURCELESS technology can store the hash values of citizen documents on the blockchain, allowing governments to provide a version of the document at any time permanently time-stamped electronic version of these documents.

     Patent protection

     Because the SOURCELESS PLATFORM can permanently tag transactions at any time, companies or individuals can file patents without experiencing the burdensome filing process. While the actual verification of the patent can take time, the stamp associated with the filing can help resolve many patent disputes and prevent costly lawsuits.

For example, in the SOURCELESS PLATFORM, a company could stamp a document before the full patent application and filing is submitted, so if a competitor tries to file a similar patent, it is easy to prove original authorship of the creation in question. In addition, patent documents are given a transaction hash, providing encryption protection.

     Security and fees

     By using the SOURCELESS PLATFORM, authorities avoid any kind of cyber-attack, so losses of money, time and confidential data are automatically avoided.

     In the wake of such attacks, CCTV systems in many cities have been hacked, and many of the essential data and images have been stolen. 

An integration of CCTV software into the SOURCELESS PLATFORM would mean total control of the stream of data and images. The traffic control system integrated into the SOURCELESS PLATFORM becomes stable without disturbances.

     CAPITAL MARKET

Broadly speaking, there are four categories of market participants in the capital markets for whom SourceLess Blockchain-based solutions offer clear benefits.

The SourceLess Platform, based on the SourceLess Blockchain and AI software, will enable innovative solutions and the power of instant domain analytics.

Connecting into the SourceLess Platform will allow every entity to have instant access (public and private, depending on permissions) to any information and to verify in real-time the existence of any type of transaction.

     For issuers

     The SourceLess platform offers significant benefits to issuers, enabling easier, cheaper and faster access to capital through digital, programmable assets and securities. New securities can be issued in minutes, with corresponding rights and obligations codified and automated. This allows issuers to increase the speed of funding events.

     The ability to schedule or encode terms and conditions into assets (in the case of securities issuance, for example) provides greater flexibility and customization than ever before. Blockchain technology can streamline KYC/AML processes and provide real-time updates and analytics with a single interface for investors, increasing transparency and efficiency.

     One of the main advantages of digital assets is the ability to fractionalize each asset. Digital assets can be split into more affordable and transferable units, which creates an opportunity for greater liquidity and diversity for investors in certain markets.

In addition, barriers to issuing an asset or security are significantly reduced, opening up greater opportunities for smaller issuers, while existing issuers benefit from new markets or forms of securities. Finally, the entire lifecycle of an asset has the potential to be automated from servicing investors to managing dividend events.

     For fund managers

     Fundamentally, SourceLess Blockchain enables peer-to-peer trading of any asset on a verifiable ledger. Funds benefit from faster and more transparent settlement and clearing, which reduces the risk of non-reimbursement in more solid markets. Faster processing means funds and managers have less tied-up capital and are able to use and allocate existing capital more efficiently.

Funds will reduce costs from increased operational efficiencies, such as streamlining fund servicing, accounting, attribution and administration. Fees paid to third parties for services such as fund accounting and administration, transfer agency and even custody can be reduced or eliminated through automated fund services.

     There will undoubtedly be many new types of financial products and instruments created, using the AI technology of the SourceLess Platform, which will in turn create new asset classes for capital attribution. While there will be an exploding array of financial products, most of these assets will share specific programmed standards, simplifying the structuring of new financial products or instruments.

     The ability to issue digital assets and fractionalize existing assets will create a wider pool of investors, especially as newer investors are more comfortable with the idea of owning a portfolio of digital assets.

     For investors

     The SourceLess platform significantly reduces the barrier to issuing new assets or financial products. As the cost of issuing new securities decreases, and the speed of issuance consequently increases, issuers will be able to tailor new instruments to the personalized needs of each investor.

     The improved ability to tailor investors’ desire for yield, time horizon and risk appetite more precisely with customized digital instruments can have a profound impact on the investor-issuer relationship, creating a direct link between capital seekers and investors.

     Investors seek to soften risk while increasing their potential rewards. One of the main risk factors is a lack of liquidity.

     This is addressed by the programmable nature of digital assets and financial instruments, which allows for lower transaction costs, increasing the potential liquidity of an asset and enabling more comprehensive risk management. Combined with increased connectivity and efficiency in the capital markets, investors will see greater liquidity and a lower cost of capital.

     In addition, the transparent and distributed blockchain ledger will enable reliable information on asset quality, which has the potential to improve the due diligence process.

SourceLess Platform will enable risk integration and optimization through AI. At the same time, all current software systems that will work under the SourceLess Platform will be able to be interconnected through AI.

     For regulatory

     Securities regulators are often criticized for getting too involved in capital markets or not getting involved rapidly enough, as in the 2008 financial crisis. Government agencies and regulatory organizations can benefit from a distributed SourceLess Blockchain ledger which is transparent and verifiable at any time of the day.

     The immutable nature of SourceLess Blockchain – transaction data cannot be changed – allows regulators to automate functions such as auditing and compliance.

     As more institutions, investors and issuers use multiple blockchain networks to track their holdings and asset lifecycle events, regulators using the SourceLess Platform will be able to spend less time analyzing and predicting risk by learning the intricacies of each firm’s system environment and customized representations of transactions.

     The improved quality of data and disclosures enabled by the SourceLess Blockchain ledger will reduce overall costs and prevent potential systemic risk.

     ENERGY MARKET

     SourceLess Blockchain technology has the potential to transform the energy sector. The energy industry has been consistently catalyzed by innovations including rooftop solar, electric vehicles and smart metering, all of which can be enhanced and controlled through the SourceLess Platform.

     The SourceLess Blockchain presents itself as the next emerging technology to drive growth in the energy sector through its smart contracts and system interoperability. Of the many use cases for blockchain, energy and sustainability are often less recognized.

However, the World Economic Forum, Stanford Woods Institute for the Environment and PwC have released a joint report identifying over 65 existing and emerging blockchain use cases for the environment.

These use cases include new business models for energy markets, real-time data management, and the transfer of carbon credits or renewable energy certificates to SourceLess Blockchain.

     Distributed ledger technology has the potential to improve the efficiency of utility providers by tracking the chain of custody for network materials. Beyond source tracking, SourceLess Blockchain offers unique solutions for renewable energy distribution.

     Long-established energy sectors such as oil and gas will also benefit from the implementation of SourceLess Platform solutions. Complex systems with multiple players have the opportunity to benefit from SourceLess Blockchain technology.

For example, oil is one of the most traded goods and requires a network of refineries, tankers, employees, governments and regulators. The complex network of participants suffers from isolated infrastructures and numerous inefficiencies along the way. Large oil and gas conglomerates are looking to invest in and implement blockchain technology because of its ability to reduce costs as well as its harmful environmental impact.

     Oil and gas companies are particularly concerned about privacy and company trade secrets. The SourceLess Blockchain Network offers data permission and selective consortium permission to pre-approved parties.

     The SourceLess platform connects all players in the energy market so each entity (public/private) will be able to access (depending on permissibility) different information.

     The main benefits of SourceLess Blockchain in the energy sector are:

• Reduced costs;

• Environmental sustainability;

• Increased transparency for stakeholders without compromising confidentiality;

• SourceLess Blockchain is a carbon free ecosystem.

     ENERGY DISTRIBUTION

     Companies looking to implement SourceLess Blockchain technology in wholesale electricity distribution are focusing on connecting end users to the grid.

     The SourceLess platform through embedded AI will allow consumers to trade and buy energy directly from the grid rather than from traders. The SourceLess platform through AI software becomes an exponent of the IoT, enabling control and efficiency of all components of a public/private, industrial/personal, producer/supplier energy system.

     Supplementing merchants with the SourceLess Platform has the potential to reduce consumer bills by around 40%. By connecting users directly to the grid, the SourceLess Blockchain will allow users to buy energy from grid at the cost they want. The result is a more equitable and stable energy market with lower electricity costs.

     PEER-TO-PEER ENERGY TRADING

    SourceLess Blockchain is a Peer-to-Peer Network

     While wholesale energy distribution is a mainstream application for many companies, it is not the focus of all energy companies. Blockchain in Energy research by Wood Mackenzie shows that 59% of blockchain energy projects are building peer-to-peer energy marketplaces.

A peer-to-peer energy market is a shared network of people trading and buying excess energy from other participants. These energy markets benefit the masses because they reduce control from central authorities such as wholesale entities.

     As more and more countries achieve energy parity, the cost of renewable energy becomes equal to or less than traditional energy for sale. People who produce their own energy will be able to trade it with their neighbors and peers. Australian-based company Power Ledger has connected communities together to create “microgrids”.

     Microgrids are a group of interconnected loads and distributed energy resources. Microgrids currently exist as a layer on top of the national grid; however, in theory they can be separate and self-sustaining.

     MANAGING ENERGY CONSUMPTION

     SourceLess platform can give consumers more efficiency and control over their energy sources. In addition, an immutable registry provides real-time updates of energy usage data. Efficiency and cost reduction is a goal of the SourceLess Platform through AI. Various types of energy data include market prices, marginal costs, energy compliance and fuel prices.

     Data is often intentionally manipulated or misreported and omitted. The financial costs of intentional corruption and accidental administrative errors can be damaging to businesses and governments. In the spirit of transparency, the SourceLess Platform will allow the public to access records of transactions and prices. The transparency of public blockchains further reduces the chances of monetary or data mining.

     ROBOTICS

     Robotics is today’s booming, multidisciplinary field and is spreading its roots deep into various fields of research, manufacturing industries, healthcare and even our everyday lives. However, as with any other evolving technology, robotics faces many challenges. In this context, blockchain technology has recently been identified as a promising technology to solve many of these problems, such as malicious/rogue node identification, malfunction/failures in automated processes, non-compliance with agreed privacy rules and regulations, security attacks.

     Concretely, blockchain with features such as decentralization, immutability, provenance, low operational cost, strict access control and trusted operations, can provide significant improvements to new applications and use cases driven by robotics. Accordingly, the paper begins by exploring the key requirements and technical challenges faced by robots in general. It further provides a detailed overview of blockchain technology in a tutorial style.

Subsequently, the role of blockchain in different robotics use cases is analysed. In addition, various technical challenges that need to be mitigated in order to harness the full potential of blockchain for robotics are highlighted. Finally, future research directions that can pave the way forward for advances and profitable integration of blockchain in robotics are presented.

     This is an area where SourceLess Blockchain technology offers a credible solution through the SourceLess Platform.

     The SourceLess Platform enables the integration of any system and software in robotics, providing both SourceLess Blockchain security and AI integrated into the platform.

     Swarm robotics is seen as an area where the combination of blockchain and AI can benefit the technology. The field consists of multiple physical robots working together in a “swarm” to perform tasks or operations. In this field, each robot is powered by AI to interact with its environment, following pre-determined rules. When these robots are connected, their collective behaviour and interactive capability becomes robust and highly scalable.

     By using the SourceLess Platform, based on the SourceLess Blockchain network of advanced encryption techniques such as cryptographic digital signatures and cryptographically secure public key cryptography, the SourceLess Platform provides optimal security for data across shared channels. Information accessibility is controlled by the specific private key available to a bot. While artificial intelligence-based robotics has emerged as a cutting-edge technology, blockchain empowers robotics with an optimal security solution.   

A perfect elaboration of these problems and how they are solved by SourceLess Blockchain is detailed in the paper Managing Byzantine Robots via Blockchain Technology in a Swarm Robotics Collective Decision-Making Scenario by:

• Volker Strobel IRIDIA, Université libre de Bruxelles Brussels Brussels, Belgium vstrobel@ulb.ac.be

• Eduardo Castelló Ferrer MIT Media Lab Cambridge, Massachusetts, U.S. ecstll@media.mit.edu

• Marco Dorigo IRIDIA, Université libre de Bruxelles Brussels, Belgium mdorigo@ulb.ac.be

     AI IMPROVES BLOCKCHAIN

• Saving energy: mining data requires huge computing power, and AI can be very efficient in monitoring this consumption;

• Scalability: blockchain scalability can be used by AI to make room for decentralized learning and other processes;

• Optimizing security: although blockchain is highly secure and tamper-proof, machine learning and deep learning technologies can make applications even more secure by running alongside blockchain;

• Efficiency: AI can provide efficient use of resources to minimize costs associated with blockchain;

• Hardware: data miners using blockchain technology continue to make investments on the hardware side. This is compounded in particular by the use of specialized hardware components. AI can play a tremendous role in procuring more efficient systems and capabilities.

• Meeting talent needs: there are still very few experts and professionals working in the blockchain technology space. As the talent gap grows and demand for blockchain implementations steadily increases, AI-powered virtual agents can play a critical role in various tasks, such as creating new ledgers on their own.

• Data verification: while the growing volume of data used in blockchain always makes personal data and privacy vulnerable, AI-powered screening and data gates can help monitor access to private data.

HUMAN RESOURCE and its Application

From providing credential verification, instant screening to executing direct cross border payment and mitigating risk traditionally associated with limited trust, SourceLess blockchain will change the way Human Resources operate.

To date, the most mature blockchain use cases are in Finance and Supply chain. However, according to the IBM Institute for Business Value (IBV) study conducted across 600 respondents, the value of blockchain will increasingly have a major impact on Human Resources.

The study also shows that the majority of survey participants are either considering, piloting or implementing blockchain in the HR function. The remaining 28% of survey participants are taking a wait-and-see approach. Those who try could potentially create a meaningful impact and leap ahead of their competition.

Gartner predicts blockchain will create $3.1 trillion in business value by 2030. Although a significant amount of these returns will result from value generation and efficiency improvements in current operating models and business processes, the real value will come from the way it enables a paradigm shift in how societies, businesses, customers, partners and individuals interact, create and exchange value.

In its simplest terms, blockchain makes it possible for participants of a network that may or may not know each other to exchange value in digital environments. In its essence, blockchain provides trust in untrusted environments, eliminating the need for a trusted central authority.

“The hype surrounding blockchain is typical of technologies in the early, experimental stage. But business leaders shouldn’t underestimate the disruptive nature of blockchain-based solutions. Blockchain will not only impact IT, but every function. HR leaders who fail to do sufficient scenario planning and experiment with the technology accordingly risk significant long-term disintermediation,” says Gartner Senior Director Analyst Matthias Graf.

A few words about Blockchain Technology

Blockchain is storing transaction data in cryptographically linked blocks that form a chain. At its core blockchain is a decentralized distributed ledger that permanently records transactions and tracks the movement of any asset, whether tangible, intangible, or digital. Once a transaction, so-called block, is written, it cannot be removed or modified.

The beauty of blockchain is that participants in a business network have the same record of the transaction, that is secure, permanent and immutable. If any below characteristics bring significant value to your process, then it is the right candidate for blockchain:

• Consensus:the ability to have the same view of a set of data that may be updated or changed by each partner without relying on governments or central authorities. For example, partner organizations that share the reference data, such as employment records, insurance and others will have “one system of record” across the business network.

• Immutability:All transactions on a blockchain are tied to one another through an append-only process called hash chaining. Blockchain creates a permanent record of all transactions.

• Finality:Transactions and asset ownership on a blockchain are executed immediately upon the fulfilment of specified contractual conditions. The parties would benefit from the ability to create instantaneous and tamper-proof transactions, such as compensation payments, eliminating the middleman/banks, addressing the currency fluctuations and more.

• Provenance:Each transaction is tied to previous ones sequentially resulting in a tamper-proof audit trail that allows participants to trace the asset from the first log on the Blockchain throughout its lifecycle.

As more use cases scale from Minimum Viable Product to production, HR can become even more effective by integrating Blockchain, Artificial Intelligence (AI), Robotics and other technologies. AI can provide powerful analytics based on secure and trusted data it pulls from a Blockchain platform. Not only can it provide operational insights, but also predict best candidates, proactively manage the talent supply chain to respond to changing market conditions as well as impacting many other areas in HR.

Blockchain, coupled with robotics process automation, could give organizations the ability to manage data, perform an audit and other repetitive administrate tasks. When a transaction meets specific pre-set criteria, digital workers can immediately execute the business processes accordingly. For example, it can send notifications to interested parties, compose and distribute collateral documentation and generate reports required by corporate risk compliance and industry regulators. Any process that a Digital Worker carries out is secure, resilient, scalable, free from human error and is captured in an immutable log for reporting and analysis.

Blockchain application in Human Resource overview

The SourceLess Blockchain technology allows the establishment of a secure and evolving record of lifecycle events and empowers an individual to build and maintain the verifiable history of their employment, education, volunteerism etc. Diplomas, Tax, SSN, Medical records, performance evaluations, previous job history is stored on an individual’s digital wallet and can be instantly selectively disclosed with the appropriate parties allowing to stay GDPR compliant.

Individuals, peers and organizations can directly interact with each other, validate and confirm information without the need for central certifying authority, which allows building trust between employer and potential employee. Trust becomes an especially valuable asset in the context of emerging trends like the gig economy and shifts to use contingent workers. A decentralized repository that would allow authenticated sharing of credentials would transform Human Resource.

Modern HR is continuing to change, and fast. HR professionals are no longer simply responsible for hiring, compliance, and assisting with payroll. HR teams are now on the hook for creating robust policies that protect both employees and the employer. They’re responsible for finding candidates who aren’t just qualified, but are also a good culture fit and will be able to support the overall mission-critical objectives for the business. HR leaders and executives also need to create policies that help grow a business culture that retains employees and increases productivity. All of these objectives require a new way of looking at the HR business unit and HR practices overall.

For HR leaders looking to create more robust HR plans and increase the success of HR objectives, blockchain may be part of the answer. The role and potential uses cases of blockchain have expanded significantly past its introduction to the world as a cryptocurrency ledger. Blockchain can now be applied to not just various industries, but to business units within organizations.

Five characteristics of blockchain

SourceLess Blockchain enables trusted interactions between unknown participants by combining five design elements to authenticate users, validate transactions and record that information to a digital ledger in a way that can’t be corrupted by a single participant or changed after the fact.

“Even capabilities that exist today aren’t fully ready to support the performance and scale that will be needed in a blockchain world”

Early-stage “blockchain-inspired” experiments don’t include all five elements, but strictly speaking, all five are required for true blockchain: 

• Distribution –SourceLess Blockchain participants are connected on a distributed network and operate “nodes” — computers that run a program to enforce the business rules of the blockchain. Nodes also keep a full copy of the ledger, which updates independently when new transactions occur. 

• Encryption –Technology records data securely and semi-anonymously (participants have pseudonyms). Participants can control their personal identity and other information, and share only what is required for a given transaction. 

• Immutability – Completed transactions are cryptographically signed, time-stamped and sequentially added to the ledger. Records can’t be changed unless all participants agree on the need to do so.

• Tokenization –Value is exchanged in the form of tokens, which can represent a wide variety of asset types, including “money,” units of data or a user’s identity. Tokenization (the creation of tokens) is the way a blockchain represents and enables a “native value” (“currency”) that can be traded.

• Decentralization –No single entity controls a majority of nodes or dictates the rules. A consensus mechanism verifies and approves transactions — eliminating the need for a central intermediary to govern the network.

Existing and emerging technologies enable blockchains

A range of current and new technologies enable these blockchain characteristics, including encryption and peer-to-peer connectivity, but even capabilities that exist today aren’t fully ready to support the performance and scale that will be needed in a blockchain world.  Essential capabilities already include:

• Decentralized apps (DApps): Applications that cryptographically store their data, instructions and records of operation in a distributed-ledger technology;

• Distributed business terms and conditions (T&C): Automated trust mechanisms for external interactions and transactions between organizations or individuals;

• Smart contracts: Programs or protocols that facilitate, verify or execute business processes;

• Smart assets: Digital representation of physical assets with programmatic behaviour.

But for blockchains to radically alter current operating models or business processes and create new commercial, social and other governance paradigms, organizations will need to combine existing technology capabilities in new ways and acquire new know-how. If your eyes have already glazed over, consider what these components and capabilities could actually mean for the way businesses engage with talent in real life.

Imagine the next big, strategic initiative your organization launches — with a blockchain seamlessly connecting all businesses, vendors, people, activities and communications: the assigned in-house talent, the contractors and third-party suppliers, the cross-functional communications, authorizations, pilots, stage-gate reviews, budget approvals, etc. Without phone calls, emails or stacks of paper, the right talent can be authorized and brought in at each relevant step in the process, given access to the information and resources they need only for as long as they need them, with activities moving automatically and transparently along the chain.

SourceLess Blockchain use cases for
Human Resources

Blockchain technology is perhaps best known for its role in safeguarding the cryptocurrency infrastructure (e.g. Bitcoin), making financial transactions secure without the need for a bank or a middleman. But the technology is eyeing a landing in the human resources space, which will inevitably change the way that HR professionals handle large amounts of sensitive employee data and deploy various HR processes.

As blockchain technology becomes more mainstream and accessible, all members of the HR department—from recruiters to the senior leadership—will likely find it disrupting their daily workflows, including the recruitment process, tapping talent pools, running background checks, verifying employment history, engaging contract workers with smart contracts, onboarding, maintaining employee data, maintaining employees’ personal data, handling financial transactions and managing payroll systems. It can even simplify cross-border payments by automating real-time exchange rates and other jurisdiction parameters, which hold implications for businesses that hire and operate globally.

One of the first challenges HR professionals face is understanding the fundamentals of what blockchain is and how it functions. Simply put, a blockchain is a distributed digital public ledger used to keep track of records. The term block is simply another word for record. A blockchain, at its core, is simply a chain of records. Blockchain is special and distinct from other recordkeeping systems because it relies on a distributed ledger, meaning the chain of records is subsequently stored across a large network of independent computers. This decentralizes and encrypts the data, making it safe and secure.

The high level of security makes blockchain technology a good match for the HR industry, which is often charged with managing large amounts of sensitive data about a company and its employees.

Despite all the ways blockchain technology could potentially disrupt human resource management, HR teams need not panic. There is still some time to prepare for the coming blockchain revolution—and the technology has a strong track record of success in the industries it has touched so far. For example, banks can now reduce infrastructure cost by 30% through blockchain solutions. This is achieved by encrypting millions of storage points, none of which contain a full name or an account number.

While just 0.5% of the global population is currently using blockchain technology, the demand is rising and it is expected that 80% of the population will be involved with blockchain technology in some capacity within 10 years. For HR teams, the mainstream adoption of blockchain could unlock value and benefit for employers and employees alike, starting with the ability of hiring managers to put the right people in the jobs.

To show how it could work on both sides of the employer relationship, blockchain can enable individuals to maintain, secure and offer controlled access to a comprehensive blockchain-driven digital ID that includes critical information about them to employers. This could include education, skills, training and professional performance. Through this digital ID, individuals would be able to turn their credentials into real value in the employment market while employers are able to identify the right employees more accurately and effectively through data-driven insights.

If its success in banking and supply chain is any indication, blockchain is poised to innovate the ways we manage human capital in many different capacities.      Now is the time that the industry is piloting and envisioning various use cases.

Examples of use cases for blockchain HR

Blockchain is disrupting many of the industries that HR departments work alongside with in order to manage human capital. For example, aside from blockchain’s prevalence in the banking industry, Forbes has identified the healthcare industry as one of the top industries likely to be disrupted. According to Bitfortune, 55% of healthcare applications will adopt blockchain for commercial deployment by 2025. HR departments will therefore need to be on the forefront of the evolving healthcare landscape—including the implementation of blockchain—so they can continue to be an authority on delivering healthcare plans and wellness programs to employees.

But the use of blockchain will be more than just a concept HR professionals need to be aware of for partnership purposes. Because the HR department is the keeper of so much of the data that is critical to employees’ lives and how a company operates, blockchain technology will be integrated directly into the HR function through a multitude of use cases—lending transparency and trust.

1.  Strengthen security for sensitive personal & financial data.

HR teams are tasked with conducting some of the highest-volume financial transactions for an organization as well as handling sensitive employee data related to pay, healthcare, finance, banking, disciplinary records, performance records, expense reimbursement, and more.

All of the data an HR department maintains is at risk of being exploited and, as more companies face data breaches, it is of utmost importance that safeguards are in place to prevent fraud and maintain security. In the face of rising cybersecurity crime, blockchain technology is being lauded as a solution.

Blockchain’s role as a game-changer for human resources is defined by its security capabilities. In fact, blockchain has proven itself to be so effective for risk management and software security that even aerospace and defense giant Lockheed Martin is using it.

Implementing SourceLess Blockchain can help thwart both internal fraud and external hacks of sensitive employee records. Access to the blockchain is limited and controlled and even those with access can’t arbitrarily make changes to the record. This limits both internal fraud and external hacks of sensitive employee records.

With the rise of the Internet of Things (IoT) in HR, there is growing concern as hackers often get in the door by strategically exploiting weaknesses in edge devices. The vigilance applied to computers is often neglected when ensuring the security of IoT devices, leaving organizations vulnerable to hacks. SourceLess Blockchain offers strong protections against data tampering by locking access to IoT devices and shutting down compromised devices within the IoT network if a security event is suspected.

SourceLess Blockchain serves to effectively decentralize data as a key defense against hacks and fraud. Data is part of a company’s currency in the digital age. It is fast becoming one of the most prized assets a company has. If you store all your jewelry, cash and other valuables in one location of your home, what happens if a burglar enters your home and finds this location? Because blockchain spreads data across a large network of computer storage spaces, it is like placing your most valuable belongings across a multitude of locations to mitigate your risk of being severely impacted or wiped out by a single hacking event.

2.  Improve recruiting processes, verification of job qualifications & background checks.

Whether we call it lying, embellishing or stretching the truth about work history, we know that sometimes what you see on a candidate’s CV is not always what you’re getting. A reported 75% of HR managers have identified a lie on a CV. With nearly 20% of hiring managers also reporting they spend less than 30 seconds looking at a CV, it is impossible to know how many fabrications actually go undetected.

Perhaps the greatest advantage that blockchain can offer is trust in the veracity of its data. In current recruitment systems, it is difficult to determine the accuracy of a potential employee’s work and education history. Even the most seasoned recruiters can be deceived by a candidate’s falsified employment history and education credentials.

Traditionally HR managers have relied on CVs, which applicants can modify and embellish. While LinkedIn and reference calls can be used to verify some information, these methods only provide a thin layer of verification. Additionally, these analog processes can also be time consuming and a hassle.

As many HR professionals can confirm, conducting a traditional background check can be slow and expensive. It can also place a burden on candidates, requiring numerous forms to be filled out. Blockchain can reduce the labor and expense currently associated with background checking.

Although blockchain cannot guarantee all inaccuracies or exaggerations will be detected, it can effectively reduce incidents. It also provides employers with the most accurate snapshot of a candidate’s credentials and background.

The benefit of blockchain is also passed on to candidates in the form of confidence, allowing them to apply to roles that they know they are qualified for. It also mitigates the concern that other candidates might be getting ahead of them by applying to the same job with fraudulent resumes and qualifications. This transparency levels the playing field for all candidates

3.  Streamline payroll, contractor payments & vendor tracking.

One of the most common use cases for blockchain HR involves a company’s largest expense and the process that employees appreciate the most: payroll. Blockchain has the power to replace many of the manual tasks and eliminate time lags within current payroll systems. Blockchain also offers ‘smart contract’ solutions that allow a company to automate and secure payments to contractors and vendors.

Global companies in particular could enjoy benefits with blockchain when it comes to issuing cross-border payroll to employees in overseas jurisdictions. Blockchain automatically sifts through exchange rates and communicates with intermediary banks so employees can be paid quickly—and at a lower cost to employers in the long term.

Through smart contracts, some organizations are using blockchain to pay out employees, contractors and vendors. In fact, it is reported that 45% of early adopters of blockchain are already implementing smart contracts within their organizations.

A smart contract writes out in code a set of parameters using statements in ‘if this, then that” (IFTTT) language. These contracts can be designed so that, once put in motion, the payment process is made entirely dependent on these codes. It is also made irreversible unless of course terms of a contract need to be updated.

When a certain number of hours of work have been completed (this would be a potential ‘if this’ variable), the smart contract automatically pays the employee, contractor or vendor the correct payment (a ‘then that’ variable) by deploying the ascribed piece of remotely executable code. This code is linked to an instruction from the company’s bank account to the contractor’s bank account, which ultimately facilitates the payment.

HR would not need to contact their company’s bank or do a monthly payment run. Instead, the transparent, real-time blockchain ledgers help track invoices and facilitate distribution, billing and reporting of transactions. There is also no need to wait for the usual payroll processing time.

The smart contract functions as a guarantee that work is completed and that the payment will make it to the employee, contractor or vendor properly and in a timely fashion.

4.  Automate taxes & mitigate the strain of audits.

Taxation plays a critical role in the life of a business or an individual. For HR professionals, constantly evolving tax laws and regulations across jurisdictions ensure they often have their hands full properly issuing taxes. Payroll taxes are then only further complicated by other factors like bonuses, commissions, overtime pay, back pay, accumulated sick time pay, human resources expenses, and beyond.

Blockchain’s keen ability to record and update employee tax considerations and provisions automatically is catching the attention of the HR industry. By wielding the capability to streamline and secure the taxation process, it is likely that blockchain-powered platforms will become the record of choice for HR departments around the globe.

Speaking of taxes, no business wants to be hit with an audit but it does happen. Audits are so daunting that it has actually held back countless businesses that only feel comfortable maintaining physical record systems, despite the time, energy and money they require to properly upkeep.

If presented with an audit, having blockchain technology already in place is like having a life preserver thrown out to you while you’re struggling to stay afloat in choppy waters. The SourceLess blockchain makes it easier for a business to sustain an audit because it can securely share its records with regulators in near real-time. The time and cost spent for document collection is subsequently reduced drastically. Furthermore, the blockchain’s cryptographic hashes and source verification build a strong barrier against document manipulation and fraud.

5.  Enhance employee experience with better access to benefit packages & a dynamic expense reimbursement system.

HR and employees alike will appreciate blockchain’s ability to expedite access to benefits packages. Once employers outline the terms of employment prior to hiring, it is HR’s responsibility to uphold the conditions in the contract. The traditional model requires manual implementation of provisions that might impact an employee’s benefits package, running risks of errors or preventing proper delivery of benefits.

Inputting these terms into blockchain technology instead allows HR to seamlessly deliver upon these benefits. For example, if a company outlines that an employee’s healthcare benefits are due to kick in after a 90 days waiting period, the blockchain technology can be engineered to implement those benefits at the right time. Again, this is coded through the same IFTTT language that governs smart contracts.

Apart from healthcare benefits, Blockchain can potentially offer a more robust approach to pay scales by applying defined salary increases for identified skills or key capabilities that are deemed valuable to the company. They can also administer performance-based bonus awards to employees in a more measurable, data-driven way.

Blockchain expands on the employee experience even in the realm of expense reimbursement. In its current format, reimbursing employees can be nebulous and time consuming. For employees, they are often forced to wait for paperwork to go through and checks to clear. For HR, it can also create pain points and expend time and energy.

Blockchain is disrupting the expense reimbursement scene by allowing organizations to create their own company currency. In developing an individualized cryptocurrency unique to their company, organizations will reduce expenditures associated with the current expense reimbursement process: elimination of processing fees, accounting for international exchange rates, reducing in-house HR staff, etc. This also appeals to both parties in the transaction and provides corporate mobility, with businesses now having the ability to easily reimburse between various jurisdictions.

With current reimbursement system, there is an ongoing conflict between employer and employee about what should be compensated, what should not, how, when, etc. Blockchain-led solutions ensure transparency, with all company-funded transactions linked into the blockchain network.

Though initially cultivated in the cryptocurrency industry, blockchain is branching out into the world of work. There are many potential uses for blockchain technology, which could disrupt hiring, payroll, taxation, benefits administration, data storage, and so much more. Despite current challenges in cost and scalability, the case for blockchain HR is strong.

Promoting transparency and trust in company processes are two priorities for HR professionals as they manage human capital and face a competitive hiring landscape. While the technical performance of blockchain technology and its ability to encrypt and offer laser sharp accuracy are hardly up for debate, blockchain’s success will ultimately depend on how well it is able to infuse trust and transparency into an organization’s operations.

Information and reference: techfunnel.com ; mercer.com ; gartner.com ; ibm.com ; Adema Yeshmagambetova

REAL ESTATE and Its Application

Real estate is the largest asset class in the world. Commercial enterprises and real estate professionals are recognizing the transformative impact of blockchain technology to optimize retail and commercial property sales, streamline payments, and increase access to real estate funds and investment opportunities.

Commercial real estate constitutes a significant portion of world economic asset and transaction activity. According to an MSCI report, the size of the professionally managed global real estate investment market increased from $7.4 trillion in 2016 to $8.5 trillion in 2017. Today’s real estate market however, consists of many siloed and independent networks with transactional friction and opacity between existing systems. The SourceLess blockchain presents a practical solution to realize the following industry benefits:

• Tokenization of real estate assets;

• Process efficiency for underlying industry operations;

• Reduced costs from process automation;

• Access to global asset distribution;

• Access to broader investor pools due to ownership fractionalization;

• Access to secondary market opportunities;

• Data accessibility to increase transparency and inform better investment decisions and portfolio management.

One of the most exciting ways SourceLess benefits the industry is through the digital securitization of real estate properties, also known as tokenization. Digital assets can represent real-world assets such as real estate, real estate funds, revenue streams, governance rights, and more. Once these assets are tokenized, they can be divided into more granular pieces, made accessible to a wider pool of investors, and leveraged to raise capital.

Once tokenized, the programmable SourceLess blockchain enables the secure and compliant digitization of the transactions and processes around these assets, including issuance, trading, and lifecycle management.

In the real estate market, the advice, knowledge, and know-how of real estate professionals will remain crucial to commercial buyers. However, the processing of securities, liability management, document processing, and accounting will inevitably change.

Why You Should Care About Using
SourceLess Blockchain in Real Estate

In 2021, companies from various industries spent about $6.6 billion to implement blockchain technology in their processes. It is almost 50% more than in 2020.

But that’s not when the investments in blockchain slow down. According to the IDC Worldwide Blockchain Spending Guide, the global spending on this innovation will grow by an average of 48% annually over the forecast period from 2020 to 2024. It indicates the rapid pace of blockchain technology adoption globally

What Main Problems SourceLess Blockchain Application Solves in Real Estate

The commercial real estate industry has experienced a drop in growth over the last few years. It faced some problems that remain objections to this market expansion.

At the same time, SourceLess blockchain development helps create solutions to resolve these issues. So, let’s reveal what the critical real estate industry problems are and how SourceLess blockchain applications can help to overcome them:

Lack of Transparency and Slow Operations

One of real estate’s biggest problems is the total lack of transparency between the contractors, which causes corruption, fraud, and money laundering and prevents industry growth.

Yet, one of the main benefits of SourceLess blockchain in real estate is shared secure databases.

Leasing, purchasing, and sale transaction records become common knowledge, so realtors don’t end up stepping on each other’s toes. Multiple listing services, which collate property-level information from the private databases of brokers and agents, are a prime example of why this new tech is so critical.

Many independent parties can also use the blockchain-enabled database, but only those that should legitimately have access to it. Hence, only contractors involved with real estate management, such as the owners, tenants, lenders, investors, operators, and other service providers, can always have stable and fast access and abilities to modify or add needed information.

With SourceLess Blockchain, real estate participants can access and share the same blockchain tech. They don’t need to have the data integrity fears they once did.

Therefore, SourceLess Blockchain allows building a platform for all parties for secure, transparent, and faster communication, automation, tokenization, and access to real-time information, all of which are highly valued in real estate.

Unsecure Titles or Data Management

Another real estate problem is improper record-keeping, which is critical for fast business processes.

With SourceLess blockchain, all entities get digital identities that cannot be mistaken or appropriated. It leads to more transparent record-keeping with property titles, liens, or financing. Now, this technology allows making title companies to be disintermediated through blockchain.

Slow and Unsafe Transactions

Many real estate transactions come with conditional clauses, need a long-time to proceed, and must be transferred safely. Thus, the transaction can be more efficiently executed through SourceLess blockchain.

For example, a purchase-sale transaction could depend on title clearances or loan approvals. With SourceLess blockchain, real estate entities can check whether those transactions have been enacted and conditions have been met.

Another problem with real estate is that it needs to be more secure and protected against malware. SourceLess blockchain solves that by providing a higher security standard of data encryption. 

So, blockchain in commercial real estate businesses can ensure safety and high speed of transactions.

How can SourceLess Blockchain help
the Real Estate industry?

Processing real estate transactions

Revolutionizing online payments and the remittance sector was among the first and most prominent use cases for SourceLess Blockchain and real estate. This translates perfectly to real estate, where SourceLess Blockchain’s core strengths could be utilized for handling the billions of dollars changing hands on commercial and residential property markets every day.

The technology’s trustless nature allows for direct transactions between sellers and buyers, without the need of an overseeing institution verifying the validity of those transactions.

The process can be further bolstered by implementing smart contracts, which ensure that a seller-buyer transaction will only take place if certain conditions are met.

Transparency and secure storage
of transactional records

The fact that SourceLess Blockchain in real estate is able to eliminate the need for external supervision of transactions already hints at its immense potential to improve security across the real estate sector.

This potential becomes even more evident after taking into account the other core features of the technology – its immutability and decentralized nature. For one, all members of a blockchain network share one, easily verifiable transactional history, which guarantees transparency across the entire network.

On top of that, records that have been stored on the blockchain cannot be changed. The combination of these features allows for SourceLess Blockchain to serve as a single irrefutable point of truth, which can greatly benefit fraud detection and prevention, data storage, regulatory compliance and due diligence.

Cutting out the middleman

Third-party validators of transactions are not the only intermediaries risking to become obsolete if SourceLess Blockchain achieves widespread adoption across the real estate sector. Title companies will be among the affected, as blockchain-based systems will be able to automatically guarantee the legitimacy of the transfer of title.

SourceLess Platform capable of connecting sellers and buyers directly will also eliminate the need for real estate agents, thus removing the burden of hefty property commissions from the equation.

Tokenization

The real estate market could benefit greatly from joining the rapidly growing tokenization trend. Tokenization refers to the issuance of blockchain tokens acting as the digital representation of an asset or a fraction of an asset.

This process can be applied to any physical asset, from fiat currencies and stocks through precious metals and other commodities to fine art and luxury items. Real estate is no exception.

Tokenizing properties can bring greater liquidity to the sector, increase transparency and make investment in real estate more accessible, among other benefits.

Top 8 SourceLess Blockchain Use Cases
in the Real Estate Industry

Let’s look at more details at real-life examples of SourceLess blockchain applications in real estate and what business results it brings:

1. The Real Estate Tokenization

Tokens represent a particular number of shares for some real estate assets that can be issued, bought, and sold through SourceLess Platform with cryptocurrency. It speeds up property sales and lowers crowdfunding barriers.

What is worth mentioning is that through this system, the barrier is reduced for ordinary property investors. Overseas investment in commercial real estate also becomes more manageable. Simply put, properties can now be traded like a stock on exchanges.

Generally, SourceLess blockchain can revolutionize the entire commercial property market thanks to the ability to increase real estate liquidity.

2. Smart Contracts

Smart contracts, which are incredibly beneficial for the banking and finance sectors, are among the most profitable blockchain innovations. The real estate industry, which must handle numerous transactions, might also incrementally gain from this technology.

With this sort of tech in place, a property transaction that once involved nearly endless paperwork can now take place digitally between the buyer and seller. That transaction has greater transparency and security than was previously possible.

The transactions are all automated and hardly require any human interaction. Once set into action, everything built on the SourceLess blockchain becomes self-executive. There is less time and effort by the principals involved, not to mention reduced costs and no chance of fraud.

3. Security and Control Over Transactions

SourceLess Blockchain use cases in real estate can also lead to a reduced risk of fraud. You might be dealing with someone trying to buy property from you, or you are attempting to buy it from them. You don’t know them, and therefore there is no reason for you to trust them implicitly.

In 2021, companies from various industries spent about $6.6 billion to implement blockchain technology in their processes. It is almost 50% more than in 2020.

With SourceLess Blockchain tech, you don’t have to. Property transactions no longer have to go through third parties because SourceLess blockchain eliminates the possibility of anything underhanded.

Extensive documentation and the involvement of various intermediaries have had to exist in the real estate industry up till now. That has led to slow, expensive, and opaque modes of financing and payments for property transactions.

If you think about how to apply blockchain in real estate, the way you can leverage it to streamline payments and improve the security of real estate transactions has to be one of the first things on the list. SourceLess Blockchain can be used to prove that parties have the funds needed for the transaction in both rental and purchase scenarios.

Soon, by integrating SourceLess Blockchain technology globally, financial and payment systems will be secured and transparent. They will be stored so that either party can return and reference them whenever they wish.

4. Property Management Automation

The use of SourceLess Blockchain technology in real estate will eliminate manual paperwork and the need to use multiple software programs. All of that will be replaced by SourceLess Blockchain tech for betterment and up-gradation.

A single decentralized application with blockchain-backed smart contracts will make the whole property management process efficient. It will lead to reduced costs and time spent on administrative tasks.

5. Transparent Data Tracking and Analysis

SourceLess Blockchain applies ledger technology that lasts as long as the network is running. Because of this, all data on the property or the history of the building is recorded, readily available, and transparent to all future owners and investors. SourceLess Blockchain can help make real estate investing fairer for all parties involved.

Moreover, combining blockchain technology and big data provides a better opportunity for more accurate tracking of consumer and owner histories across borders and banks. It lessens the possibility of default. Big data real estate players can now better analyse information and make data-driven decisions.

6. Shared Ownership and Investment

SourceLess Blockchain technology transforms real estate by enabling fractional ownership and investment. Purchasing real estate requires significant investment, especially given the steady rise in property prices. Through the blockchain, investors can pool their resources and buy their share of a property they could not purchase independently.

Furthermore, shared ownership enables investors to sell their ownership stake whenever they want. It also allows them to avoid self-management of real estate: its maintenance or lease, which often requires considerable effort.

7. Access to Secondary Market Opportunities

Tokenizing real estate assets creates opportunities by granting access to the secondary market. It is made possible by digitally reproducing any asset, lowering the cost of transactions, and making them accessible worldwide.

Using SourceLess Blockchain in real estate allows you to turn illiquid assets into liquid ones and attract more investors. As a result, anyone can buy an asset in digital form or a share of it and then sell it on the secondary market.

8. Global Asset Distribution

Most of what we mentioned above, such as real estate tokenization, increased liquidity, smart contracts, and better transaction transparency, is even more significant if you look at it globally.

This technology makes it possible to create a universal system of buying and selling property with tools understandable to customers and sellers worldwide. Smart contracts will enable you to automate all sales transactions and confirm their validity in real-time.

Regardless of business hours or weekends, all transactions on the blockchain are processed almost instantly. As a result, blockchain technology reduces the limitations caused by geographical factors and offers a universal system for selling property.

How does tokenization impact Real Estate funds
and asset management?

In real estate, tokenization refers to the digitization of securities, alternative assets, and financial instruments. With SourceLess Blockchain technology, digital assets can be programmed to include ownership rights, transaction history, and rules to ensure asset issuance, distribution and transfers are regulation compliant. Simple examples include controls to ensure that tokens can only be transferred to certain counterparties, or not at all during a lock-up period. Digital assets can be customized to meet all kinds of issuer requirements.

In addition, tokenization reduces the costs and increases the speed of creating, issuing, and exchanging assets, innovating new features, administering dividends and managing other corporate actions. In-depth customization and rapid issuance allows issuers to tailor digital assets directly according to investor demands, significantly reducing counterparty risk.

Reduced costs allow issuers to decrease minimum investment amounts and expand access to a wider pool of investors. Increased connectivity between digital assets and associated networks expands secondary market opportunities and improves liquidity. These benefits to both issuers and investors demonstrate the real promise of SourceLess blockchain is a future with fundamentally new instruments and markets.

How does SourceLess Blockchain impact alternative financing for real estate?

Raising finance for new real estate projects is difficult. Property development firms face interest rates as high as 29% when working with banking institutions as single source loan providers. They also face challenges with multiple loan sources as crowd financing can be difficult to administer.

SourceLess Blockchain simplifies access to alternative financing models by facilitating investor management for developers and ensuring investment transparency and continuous ROI tracking for investors.

SourceLess Blockchain based financial products can also be programmed for global distribution. These solutions simplify investor experience, increase investor confidence, and unlocks access to a wider investor pool.

How does SourceLess Blockchain impact loan and mortgage securitization?

Loan origination and underwriting remain unstandardized and reliant on paper documentation. Security structuring is left open to interpretation, and great effort is required to protect against double-pledging of assets. Trading and asset servicing decisions are often made based on outdated data. And lastly, cash reconciliations across lifecycle events often incur settlement delays impacting investor cash flow.

SourceLess Blockchain offers banking institutions a single version of verified information, secure data sharing, immutable transaction monitoring, and real-time payment settlement. By digitizing a loan or mortgage, it can be programmed to include relevant data such as ownership rights and loan payment history to support future servicing decisions. Smart contracts can be utilized to collect and distribute payments to beneficiary holders, and deliver real-time reporting to regulators. This delivers efficient lifecycle management and generates confidence in secondary markets by providing investors proof of asset performance.

How does SourceLess Blockchain impact property management?

Large scale property management firms endure inefficient oversight of their global portfolios. SourceLess Blockchain facilitates secure data sharing, streamlines rental collections and payments to property owners, and also provides premium due diligence across the portfolio. This increases operational efficiency and allows for time- and cost-savings. It also generates substantially richer data to facilitate better decision making.

How does SourceLess Blockchain impact land and property registries?

Land titles continue to rely on paper documentation, vulnerable to loss, fraud, and mismanagement. In addition, property transfers and permits require a multitude of lengthy and costly legal procedures, sometimes locking land in unproductive use.

SourceLess Blockchain replaces outdated paper deeds with true digital assets and tracks changes on an immutable ledger that acts as a secure shared source of truth for documents between multiple parties and organizations. SourceLess enables transaction and property ownership records to be more accessible — facilitating market transactions, increasing investor confidence, unlocking access to finance, and promoting economic and social community development.

How does SourceLess Blockchain impact urban planning?

Property development almost always occurs without valuable input from the community. The public often feels disenfranchised from planning processes, unable to express preferences for the local community.

Blockchain-based planning platforms can include educational resources, token-based participation incentives, and a feedback loop between stakeholders. This would encourage community engagement and better integrate local communities in the property development value chain, improving public confidence, and improving developer services for sustainable success.

How does SourceLess Blockchain impact property development and construction?

Larger construction projects have become increasingly difficult to manage with fractured sub-contracting and procurement practices and a lack of supply chain transparency. A blockchain platform can simplify procurement with reputation management for suppliers and subcontractors, incentivizing high performance. Smart contracts can automate contract agreements and payment terms to enhance financial management.

SourceLess Blockchain can prove the authenticity of premium goods at their point of origin by associating products with non-fungible tokens and using these as digital blockchain certificates. Lastly, SourceLess Blockchain can streamline project management by digitizing end-to-end processes. This will enable construction managers to securely track and share project status with key stakeholders and minimize bottlenecks, allowing for more efficient project management.

How does SourceLess Blockchain impact investor and tenant identity?

Blockchain-based digital identities will be powerful across multiple industries, consumer applications, and within the public sector. Tenant and investor identities from mutualized blockchain-based KYC/AML procedures can streamline background checks, reduce costs, and increase security. Decentralized identities enable anyone to prove ownership of properties while making essential documents (proof of insurance, identity, credit history) easily shareable with necessary parties.

How does SourceLess Blockchain impact payments and leasing?

Distributed ledger technology enables leases to be signed and paid on-chain. This removes the need for manual reconciliations, and automates rental and dividend payments to property owners. Smart contracts can also automate other types of payments and fees to incentivize good behaviour from tenants, landlords, and service providers.

How does SourceLess Blockchain impact real-time accounting?

With property ownership and cash flows recorded on-chain, investors and asset owners benefit from automated and near-immediate accounting. In the future, the preparation of annual financial statements, such as the balance sheet, statement of cash flows, or income statement will be conducted with the potential for real-time audits. This enables multiple breakthroughs in compliance, regulatory oversight, and investor relations.

How can SourceLess Blockchain be implemented in real estate?

Blockchain’s potential to transform the real estate sector is undeniable. That said, it is up to real estate companies and SourceLess Blockchain developers to figure out how best to utilize the technology’s unique properties for the benefit of the sector. Here are a few ideas, some of which are already being actively explored.

Shared real estate database and SourceLess Blockchain-powered marketplaces

Division of real estate

The case for real estate tokenization becomes much stronger when considering that it can enable people to buy a fraction of a building or other type of property. This fractional ownership would make investment in real estate much more accessible to retail investors.

By owning a part of a property in the form of tokens, an investor will be entitled to a share of the income that property generates through lease, as well as a portion of the proceeds from a future sale.

Efforts to open up the sector to smaller investors have had success in the past. Having been around for decades, real estate investment trusts (REITs) and other property investment schemes offer ways for investors to pool their resources to tap into income-producing commercial real estate. In those cases, however, returns are tied to the overall performance of a particular REIT or fund, which may have a portfolio that includes underperforming properties.

The tokenization approach would allow for a much more focused investment. Among the companies pursuing that approach is RealBlocks, a New York-based startup, whose platform enables investors to acquire fractional interest in properties.

Secondary markets

We can take this concept even further, as tokenization could spark the emergence of secondary markets, where investors would be able to trade property tokens. This would bring more liquidity to a notoriously illiquid market. Best of all, unlike some derivatives traded on the global financial markets today, property tokens would be underpinned by tangible assets and their value would be determined by the real-world performance of those assets.

Conclusion

As we’ve so far demonstrated, there are many ways in which the power of SourceLess Blockchain in real estate can be harnessed for the benefit of the real estate industry. Hopefully, we’ve also made a strong case for why it should be harnessed.

Being such an important part of the broader economy, real estate requires reliable mechanisms to ensure that the sector is in good health. At the same time, fresh ideas and approaches can contribute greatly to revitalize an industry that has seemingly reached peak levels of maturation.

We believe that SourceLess Blockchain technology can help on both fronts and we are looking for partners who share that belief. We have a proven track record of consulting and working on blockchain projects in a wide range of industries, including, as mentioned earlier, real estate.

So, if you dream about shaking up the real estate industry, we would love to hear from you! We are prepared to provide you with assistance every step of the way!

Information and reverence: consensys.net ; softermii.com ; limechain.tech

TELECOM

By facilitating innovation in identity management, enabling cost reduction through automation, and enhancing data security; blockchain in telecom is paving the way for the industry to rapidly evolve.

As Telecom prepares to enter the 5G era bringing the next wave of disruption to the industry, now, more than ever, organizations need to focus on continued innovation to remain relevant and competitive in this sector.

Beyond faster data and lower latency, the fifth generation of network technology will enable an almost incomprehensible amount of cross-industry applications and IoT devices to connect.

Using blockchain technology as the backbone of IoT interconnectivity will allow the Telecom sector to capitalize on new efficiencies, automation, cost-savings, and improved customer experience. Let’s take a look at the top five blockchain use cases for Telecom here.

1. Identity Management

One of the clearest cases of blockchain applications for Telecom is identity management. Currently, when customers register for new accounts, they have to go through a cumbersome “Know Your Customer” (KYC) process which involves handing over or uploading sensitive information.

This data is then stored with a third party, placing it at risk of inefficient management, fraud, and even breaches or hacks — such as that of Adobe in 2013 or Equifax in 2017, in which hundreds of millions of customers’ sensitive data was stolen and exposed.

Integrating blockchain with your existing Telecom networks can remove this hazard as customer identities are no longer stored with a centralized third-party but in a decentralized, tamper-proof immutable ledger, with no single point of failure.

Not only can Telecom providers reduce costs and enhance customer security but this revolutionary technology also gives rise to a blockchain identity management use case (identity-as-a-service).

In an increasingly competitive industry in which providers regularly exchange data and customers continually need to provide it, offering identity-as-a-service could be a new and major revenue stream for Telecom providers, helping them to innovate and diversify from their core business model.

In this way, blockchain technology can also give customers a portable identity allowing them to share data with the providers of their choice quickly, easily, and without going through tedious and repetitious processes.

2. 5G Enablement

According to a report by Ericsson, by 2022, a staggering two-thirds of almost 30 billion connected devices will be IoT devices. As we approach a new era of connectivity, 5G will allow these devices to interconnect instantly and frictionlessly without suffering from current latency issues. They will also be able to connect over wider ranges.

However, for 5G to be implemented safely, the data being received by these interconnected devices must be trustworthy and free from the intervention of malicious actors. This cries out for a technology that is secure, tamper-proof, decentralized, transparent, and allows for information transmission to be automated in real-time.

Blockchain will enable 5G to reach its full potential by being that trusted source of data that interlinks all devices. It will provide security and the peace of mind that we won’t see self-driving cars suddenly being hijacked and run off the road or cardiac devices hacked and patients’ lives held at ransom.

3. Roaming and Settlements

Another clear-cut blockchain use case in Telecom pertains to roaming and settlements, an area currently hampered by inefficiencies, human error, and even fraud. For travel outside of the EU, for example, many intermediaries are involved in ensuring a customer can access mobile/data networks. This makes it inefficient and expensive, and provides a horribly inconvenient user experience for the customer. Moreover, any issue that arises from unexpected charges or settlement of bills while using roaming can often take months to resolve.

With blockchain technology, telecom providers can create smart contracts that are executed without human intervention, making for a seamless automated experience. Customers benefit from a transparent service and companies cut down costs and increase efficiencies by removing the middlemen.

4. SLA Monitoring

SLA (Service Level Agreements) are vital to the Telecom sector as they define the services provided to the customer in terms of technical capacity, quality parameters, rate reduction entitlement, etc. However, SLA monitoring is often subject to inefficiencies, delays and disputes depending on how the agreement is interpreted.

For example, a customer may have the right to a discount should the provider fail to meet the contract terms due to an interruption of service or high latency issue. While many Telecom organizations have invested in the automation of SLAs, there’s often still a need for manual processes which exacerbate these delays.

Using smart contracts on the blockchain can not only clarify SLA conditions and make the monitoring process more transparent but payments can be automated upon completion of the agreed-upon terms. So, for example, if a client is without service for a certain period of time, they’ll automatically receive a rebate without having to file a claim.

5. Mobile Number Portability (MNP)

Mobile number portability (MNP) has been available to customers for some time already. However, it’s a service that’s often fraught with difficulty and delay. This is usually due to a disconnect between providers who may hold or need additional information to complete the transfer. This can lead to frustration for customers and delays in onboarding for service providers.

In the same way, as smart contracts can automate SLA monitoring and resolve roaming disputes, they can also accelerate the MNP process. Blockchain can act as one network for all providers to access the same information.

And thanks to the innate properties of blockchain, they can be sure that the information is immutable, auditable, tamper-proof, and trustworthy. This will allow all network providers to work together cohesively, efficiently, and with notable cost-savings and benefits for the end user as well.

Telecom Branches that Benefit from
SourceLess Blockchain

The current business environment for telecom entrepreneurs is rather challenging. Over-the-top services providers offer applications and streaming content straight to the customers via the internet, and by this, they have settled their dominance even in the most vital communication services. WhatsApp and Viber already account to approximately 80% of all messaging traffic, and Skype represents around one-third of all international voice traffic minutes. As a result, telecom enterprises suffer revenue losses due to drop-offs in SMS messaging and roaming. Moreover, there is a stable decrease in venture investments into the telecom industry since the Dot-com bubble.

Telecom Operations Advancement

Blockchain and smart contracts can create a lot of automation in internal processes, like billing, roaming and supply chain management. Currently, the transactions in telecom ledgers need to go through a clearinghouse to be approved. Smart contracts can automate this process and guarantee the settlement between the participants, by routing from one operator’s blockchain to another operator and increase transparency to the end customer. The roaming subscriber initiates a voice call on the telecom network. The transaction is then recorded on the blockchain network and when the call ends, the call duration is saved on the blockchain platform. Based on the smart contract rules, the charges are set, and the payment is registered from the home operator to remote partner.

The process is based on a consensus model, and shared ledger technology, which does not involve any clearinghouses. This helps to avoid disputes between the participants involved; it is less time-consuming and deceases the costs spent on auditing and accounting, and most importantly, excludes the expensive mediation of the clearinghouse services.

Digital Asset Transactions

Telecom enterprises could leverage blockchain to enable micropayments for music, mobile games, and other types such services. Moreover, blockchain may be implemented for customer-to-customer money transfer services. Airtel, the leading telecommunication company in India offers digital wallets that enable customer-to-customer payments. By employing blockchain to handle the transactions, Airtel makes its wallets more secure with ID verifications. Furthermore, such approach results in cheaper international remittances, more swift and convenient transfers which, as a result, has a positive impact on the company’s revenue.

Smart Contracts and Supply Chain Management

Telecom enterprises can enhance their supply chain management with the help of blockchain. Smart contracts enable automated cooperation between the enterprise and the partners within the chain and may automate the inventory management process. Smart contracts have prior established terms, and the contract self-executes only when the terms are fulfilled entirely. The use of smart contracts offers ultimate cost reduction for telecom entrepreneurs. It eliminates intermediaries, facilitates settlements with vendors and suppliers, and keeps the record keeping though the whole supply chain cycle easy and transparent, which reduces the costs on accounting and auditing.

Digital Identity Management and Verification

Identity verification costs corporations and governments hundreds of billions of dollars annually. Currently, new blockchain-based identity verification systems are being developed by startups like Civic. Telecommunication enterprises work with enormous amounts of customer data it is profitable for them to act out as a source of identity authentication. They can design new systems, which are more transparent, secure and convenient, for both customers and businesses to generate additional sources of income.

When a subscriber gets on the roaming partner’s network, the roaming partner determines that this is a visitor from the home operator. This is implemented via the subscriber information exchange transactions on the blockchain-based network. The subscriber is then approved and registered on a smart contract. Blockchain identity management system will allow the users to manage their Id’s across various applications, devices, and organizations with only one single password. Each subscriber receives a master key with the help of which he or she will be able to verify his or her identity in any digital presence.

This can be an excellent opportunity for telecommunication organizations to grow and spread their business segment. A few examples would be the subscriber’s driving license, passports, marriage certificates etc. At the moment, such an ID management project is already unfolding in Europe. The ID2020 project intends to provide 1.1 billion people a secure and reliable identity management system in the nearest future.

Fraud Prevention and Cybersecurity

Telecoms industry significantly suffers from fraudulent schemes each year. According to the Communications Fraud Control Association (CFCA) survey, 38.1 billion dollars get lost due to fraudulent schemes, so they the major reason for revenue losses in telecom. In terms of telecommunications, there are two main types of fraud – subscription identity and roaming fraud.

Roaming Fraud Prevention

Roaming fraud occurs when a subscriber accesses the resources of the Home public mobile network (HPMN) via the Visited public mobile network (VPNM) but the HPMN is unable to charge the subscriber for the provided services but is obliged to pay the VPNM for the roaming services. The two major issues in the roaming fraud are the longer detection and response time. Concerning the longer detection time, the fraud happens when the subscriber is in a network other than HPMN, and the time required to detect the fraud is longer due to delays in the exchange of data between home and visited networks. In terms of longer response time, due to lack of control over the systems in which the fraud has occurred, the time to respond to the fraud is longer.

Secure blockchain technologies could be implemented between the operators that have a roaming agreement to reduce fraud rates. Designated nodes from both operators verify the validity of each transaction broadcasted on the network. The roaming agreement between the HPMN and the VPMN is settled by a blockchain smart contract that is generated when a transaction that contains the call detail record data is broadcasted on the blockchain network. Every time a subscriber triggers an event in a VPMN, it broadcasts the detail record data information as a transaction to the HPMN. This data triggers the smart contract, and after this, the terms of the agreement are executed. The HPMN can automatically calculate the billing amount based on the services provided and send this information back to the visited network.

Identity Fraud Prevention

Subscriber identity information is necessary to create an account and assign services to the subscriber. Subscription ID theft occurs when a subscriber uses false identification or another subscriber’s ID to obtain the telecom services. The deceivers can use the stolen identity information to obtain a SIM card in the victim’s name. The SIM card stores the International Mobile Subscriber Identity (IMSI) and the related key is used to identify and confirm subscribers on mobile devices. Each time a mobile device is turned on, it broadcasts a signal containing the IMSI to the nearest network station. That identification number links the device to the account with the provider. There are many ways in which a subscriber’s identity can be compromised, for example, email phishing, SIM card fraud and other. Due to the multiple-play services provided by telecom operators, ID theft can result in serious losses through access to many services under a stolen identity.

Blockchain has the potential to exclude any type of fraud that involves identity theft, thus cutting down the telecom revenue losses, and ensuring security for the customers. Blockchain can be used to identify a device and link that device to a subscriber’s identity. Instead of broadcasting the IMSI to the net, the device-generated public key is broadcasted instead. In such a case, neither the carrier nor any other third party needs to know the private key. Blockchain can help to protect private information that is heavily encrypted in the private key. The private key is associated with only one device, so the data theft probability is dramatically reduced.

The Future Use of SourceLess Blockchain in the Telecom Industry

Blockchain and 5G Enablement

The demand for communication services is increasing, and soon the world will switch into a 5G network, which will be ten times faster than 4G, will have much lower latency and greater capacity, but managing such a complex network will require a greater calculation power and storage capacity.

5G is another technology that can benefit from blockchain. 5G promises prevalent access to various networks, and telecom entrepreneurs will need to handle versatile access nodes and diverse access mechanisms. Choosing the fastest access node for every user will soon become the major challenge for telecom companies. Blockchain has the potential to enable such access selection mechanisms when 5G is developed.

Today the communication systems are centralized in a client-server model where the rules stored on the server are pushed to the customer. This causes delays and does not allow seamless provisioning between access networks for the device. In addition, the provisioning of rules is not a real-time process, which means that they cannot be changed. GPRS, WiMAX, WLAN, and Wi-Fi access networks in a specific area can be networked with blockchain where each access point, like a Wi-Fi router or an SP cell tower, can serve as a node in the network. Rules and agreements between the various access providing networks can be established in a smart contract. These contracts can be dynamic in nature wherein any time a policy needs to be altered, only the contract code needs to be changed.

When a device broadcasts its identity, it is accepted into the network by the corresponding communication service provider. Once the device broadcasts its location, the access node that can best provide service to the device. This results in seamless rating and charging of all services between the various access nodes.

Blockchain and IoT in the Telecom Industry

IoT cellular connections will reach in billions by next decade. The major issue is that the growth of IoT and increasing data insecurity are directly proportional. IoT connectivity creates serious challenges, like the need to secure billions of interactions among machines and sensors, and the need to secure the sensitive information that is captured and transmitted via the devices.

As a result, data and network security requirements can become costly as these IoT networks continue to grow. Blockchain-based decentralized control allows IoT security to be more scalable, and secure verification and validation will not allow a rogue device to interfere in a home or a factory system by delivering false information.

Blockchain can create highly protected peer-to-peer self-managed mesh networks that use an extensive number of nodes. These nodes can be represented by IoT sensors with the ability to verify every block that is being changed. Such networks can be introduced into a private environment based in cell-towers. Communication service providers could then provide private/public key security and broad connectivity to enable such blockchain network with global reach.

SLNN Mesh Network

Mesh Network: A local area network topology in which nodes connect directly, dynamically, and non-hierarchically to as many other nodes as possible. The nodes cooperate to efficiently route data, with every node participating in the relay of information.

Mesh networks dynamically self-organize and self-configure, reducing installation overhead. A Wi-Fi mesh network is a system composed of multiple mesh nodes that work together as one large Wi-Fi system, sharing a wireless connection over a larger area.

Benefits of a Mesh Network:

• Flexible coverage: Additional nodes can be added to improve coverage and scalability.

• Self-healing: If a node goes down, communication is rerouted through another node, eliminating a single point of attack or failure.

• Direct path: With all nodes connected to each other, data can take multiple paths to its destination and choose the best route.

• Seamless Connection: Wireless devices automatically connect to the closest node within the single network, eliminating the need for manual network changes.

• Secure: Communications are encrypted between nodes, acting as a virtual private network (VPN).

• Resilient: The use of blockchain underlying protocol allows for smart devices to connect without internet or telecom services, making the network resistant to parts going offline.

• Decentralized: A mesh network eliminates the need for a central entity, making it resistant to censorship and shutdown.

Mesh networks can use either a flooding or routing technique to relay messages, making them different from non-mesh networks. In a routed message, the data is propagated along a path by hopping from node to node until it reaches its destination.

The use of blockchain allows for the recording and verification of routing on the network, enhancing security and privacy. Every smart device, mobile phone, or other equipment can become a node, enabling peer-to-peer transactions without an internet connection. Data presented on instant messaging and social networks through the network are only links to data stored in the mesh network, further enhancing privacy.

How SourceLess Blockchain Can Help

Blockchain technology is revolutionizing the Telecom industry by enabling automation, efficiency, and new business models. These five blockchain use cases are just scratching the surface of blockchain applications for Telecom.

But if it still sounds a little daunting, the good news is you don’t have to navigate it alone. And you don’t need a complete overhaul of your existing IT systems either.

At SourceLess, we simplify the process of unlocking real value for your business from blockchain technology. We provide custom blockchain solutions that make integrating blockchain into your Telecom business easy and frictionless. Solutions that work in harmony with your existing infrastructures, not against them.

Starting with a flexible and adaptable enterprise-grade blockchain platform, we build solutions that plug into the very heart of your business. No waste, no complexity, just a custom blockchain solution that really delivers.

From blockchain consulting, to blockchain development and support services, we’ll accompany you all the way from planning and design to delivery and ongoing support.

Blockchain technology is opening up new areas of innovation for the Telecom industry. From 5G enablement to Identity-as-a-Service, blockchain technology is facilitating new business models, while solving age old challenges around data integrity and centralization.

Communication Service Providers (CSPs) seeking to enhance data integrity and security are increasingly turning to blockchain solutions to track and secure data across various disparate systems.

Decentralized networks paired with cryptographically secured data provides CSPs with a trusted source of immutable data that can be used throughout a company’s operations — from billing systems to identity management.

Automatic execution of transactions via smart contracts on the blockchain help provide a whole new level of efficiency for Telecoms providers. Laborious manual processes in areas such as identity verification, billing of services, and data roaming now benefit from automation and dynamic execution via blockchain technology.

Overall, blockchain reduces the need for manual intervention and reduces the reliance on middle-men throughout a CSPs operations. Not only does this result in a better service for customers, but also leads to cost reduction through efficiency gains for the entire industry.

With benefits ranging from security to automation, blockchain for telecom is enhancing traditional operations and enabling new business models.

Our range of blockchain consulting and custom development services provide everything your organization needs to get started with blockchain.

• Digital Advisory: An advisory based service focusing on identifying where and how new technology fits into your digital transformation strategy.

• Blockchain Consulting: A consultancy-led service focusing on your business’s challenges, the discovery of blockchain innovation opportunities, and solution advisory.

• Blockchain Engineering: Custom blockchain development and integration services to build anything from PoCs to large-scale solution deployments.

Conclusion: SourceLess Blockchain is an advanced technology that can make an enormous contribution to the telecommunications industry. It has the potential to enhance security, and create additional sources of income for the telecom enterprises. Although adopting blockchain may cause a number of issues, for example conforming to existing data standards in terms of both structure and transport of information could become an obstacle. Furthermore, telecom companies need to define regulatory frameworks to implement smart contracts in their business practices.

Nevertheless, adopting blockchain is worth the cost. Smart contracts will exclude the need for clearinghouse intermediaries and steeply decrease the accounting costs. With SourceLess Blockchain, telecom entrepreneurs can prevent roaming and identity fraud, which is the main source of financial losses in the industry. Most importantly, blockchain will become an integral part of future communications, alongside with the 5G network and IoT.

ACADEMIC SECTOR

     The education industry faces the same challenges that have been dragging it down for years. These include inefficient paper record-keeping processes, lack of transparency, poor student and teacher accountability, lack of real motivation for students to learn and perform well in the classroom, and lack of trust in educational merit and academic credentials due to recurrent falsification of them.

     The SOURCELESS PLATFORM can have a major impact on education and address these challenges by providing tangible solutions described in detail below.

     Improved records and transparency

     Using the SOURCELESS PLATFORM, the school registrar’s office needs to create a one-time student record, this digital identity will then allow them access throughout the education system. After that, it becomes accessible to all participants in the education system and can even be shared between institutions.

     Each assignment, participation in curricular and extra-curricular activities are attached to the student’s digital registration in the SOURCELESS PLATFORM in the student profile. This gives teachers, counsellors and school administrators a direct view of their students’ progress.

     In addition to maintaining student records, SOURCELESS PLATFORM can be used to oversee and facilitate accreditation of schools, colleges and universities to protect intellectual property rights and eliminate diploma and transcript forgery.

     Educational records in SOURCELESS PLATFORM can be easily accessed and quickly transferred to other institutions and organizations, including potential employers.

     A student’s digital identity in SOURCELESS PLATFORM and the information that is entered into their subdomain is confidential data protected by the BLOCKCHAIN SOURCELESS network and can only be accessed by those with permission.

This type of system ensures complete authenticity of credentials and student records, as the complete history of signature changes is stored on the blockchain.

Student responsibility

     Each assignment participating in curricular and extra-curricular activities are attached to the student’s digital record in the SOURCELESS PLATFORM in the student profile. This gives teachers, counselors and school administrators a direct view of their students’ progress. Through the SOURCELESS PLATFORM’s Str.Talk CHAT, it will be possible to create work rooms, workspaces where each student will be able to resolve and upload/upload all required documents.

Each student will be permanently connected to all the information concerning him/her through the SOURCELESS PLATFORM (chat, blog, courses, workrooms, video), thus eliminating human error and having everything available for the development of the students’ capabilities towards the desired career.

     Future employers or sponsoring companies have the possibility to check in real time the student’s activities, analyse performance and see the student’s progress over time via the SOURCELESS PLATFORM.

Stimulating students and teachers to achieve better results

     Token credits can be used to create effective reward systems that motivate students and encourage teachers to contribute to the educational process by creating new learning materials and participating in research. Smart contracts can be programmed to issue credit awards for completed tasks. Teachers will be able to further incentivize students by giving special credit to high performers.

     Teachers will be able to be monitored through the SOURCELESS PLATFORM so they can be integrated into an award scheme.

     SOURCELESS PLATFORM through AI can monitor and analyse the progress of all students and teachers, thus allowing the management of the educational institution to award prizes through token-credits.

     SOURCELESS PLATFORM takes full advantage of the gamification element in modern education and can take it to the next level with tokenized credits, which can be used to pay off student loans, buy school supplies, teaching materials and cover other educational expenses. Rewards for graduating from a particular major and receiving a degree from the university could significantly reduce the number of students who drop out with no intention of returning to school.

     Developing the learning environment and teachers

     SOURCELESS PLATFORM will enable all teaching staff to use software and AI to better convey information, streamline the teaching process, structure and simplify assessment methods. With PLATFORMA SOURCELESS teachers will have all the attributes of modern communication at their disposal: chat, video, blog, work rooms, conference facilities.

     SOURCELESS PLATFORM will allow all educational institutions to be connected so that information and data exchange between teachers will become a formality. Development or research groups will have access to the power of the SOURCELESS PLATFORM based on the SOURCELESS BLOCKCHAIN network.

     On a global scale, the SOURCELESS PLATFORM could aggregate district, state and national performance statistics and increase healthy competition among schools, colleges and universities with the ultimate goal of providing the best education.

     Through the SOURCELESS PLATFORM teachers can create new study patterns, new assessment techniques, new courses for a better level of efficiency in Romanian education and beyond.

Introducing student transcripts,
verifiable for life

     We’ve all been through the trouble of getting student transcripts from educational institutions. It is a time-consuming process, involving several parties to check credentials and compile the complete academic record.

     SOURCELESS PLATFORM provides students with an online digital transcript, available whenever they need it. This verifiable transcript throughout the student’s life could contain information about all educational achievements and streamline credential verification, making it easier for students to transfer between schools.

Providing students with a portfolio of educational achievements

     The SOURCELESS PLATFORM allows students to create their own digital portfolios that would store all their educational merits such as:

• Major/minor degrees earned;

• Proven competence through experience;

• Certificates of completed courses;

• Micro-certificates for achievements;

• Additional credits and awards;

• Test scores and attendance records.

     This portfolio can be shared publicly to prove a student’s worthiness to enroll at a university or can be sent to an employer by a student seeking an employment opportunity.

     Ultimately, a universal database of potential candidates could be created, and top-performing students could be sought out by companies, creating even more incentive to perform at school.

    University management

     The governing bodies of educational institutions will have the SOURCELESS PLATFORM with AI help to streamline expense management, eliminate human error, develop new curricula, and control institutional problems.

     Research programs will be able to be evaluated by MANAGEMENT through the SOURCELESS PLATFORM. The SOURCELESS PLATFORM will allow the integration of all the software an educational institution works on.

     Management through the SOURCELESS PLATFORM will be able to grant each participant in the system a certain degree of permissiveness, so that each participant will only have access to the information necessary to carry out their work.

     Evaluation of employees will become an easy task with PLATFORMA SOURCELESS because all objectives of each student will be monitored by PLATFORMA SOURCELESS with the help of AI.

     Internal security (alarm systems, fire systems, CCTV, etc.) is an area that SOURCELESS PLATFORM with AI takes to another level, all based on the SOURCELESS BLOCKCHAIN network.

SOURCELESS PLATFORM will allow the interconnection of all educational institutions, with educational collaboration being just a click away, research collaboration being perfectly transparent and efficient, and collaboration and curriculum completion being achieved with AI. Exchanges of experience (students/teachers, internal/external) are now made easier with the SOURCELESS PLATFORM, with all participants connected to the same system.

     SOURCELESS PLATFORM will be made available to the TEACHING SYSTEM free of charge, SOURCELESS BLOCKCHAIN being a CARBON FREE system.

SourceLess – Education, Technology & Innovation

Blockchain technology, distributed ledger technology, zk-SNARKs, and artificial intelligence have immense potential for technological innovation, and education will play a crucial role in unlocking this potential. By leveraging these technologies, humanity can create new and innovative solutions that have the potential to revolutionize the way we do business, interact with one another, and solve complex problems.

The decentralized nature of blockchain technology and DLT ensures transparency and security in a variety of processes, ranging from financial transactions to supply chain management. This technology offers several advantages, including faster and cheaper transactions, improved traceability, and reduced fraud and errors. Additionally, blockchain and DLT can ensure more efficient and secure voting systems and streamline legal agreements.

Zk-SNARKs is a form of cryptographic proof that ensures that information remains private while still being verifiable. This technology offers significant benefits for industries such as finance, where privacy and security are critical. With zk-SNARKs, transactions can be conducted securely without revealing any private information, making it ideal for financial transactions and data sharing in healthcare and other sensitive sectors.

AI has the ability to analyze vast amounts of data and provide valuable insights that can drive business decisions and improve efficiency. By integrating AI with blockchain and DLT, we can create decentralized systems that are self-governing, autonomous, and secure. These systems can provide more accurate predictions and improved decision-making, and help to optimize complex business processes.

The combination of these technologies has the potential to improve transparency, security, and efficiency across a wide range of industries. Education and research will play a critical role in unlocking this potential, and it is essential that we invest in the education and training of future innovators to ensure that we fully capitalize on the opportunities that these technologies provide.

Through these innovative solutions, humanity can solve some of the world’s most pressing problems, including climate change, social inequality, and access to healthcare and education. It is important to continue to explore and invest in these technologies, as they have the potential to transform our world for the better.

SourceLess is built on a blockchain and Distributed Ledger Technology software, Web3, and Str.Domain ecosystem, which creates a new web platform with different protocols than the traditional www. The platform is encrypted and decentralized, and it prevents the execution of any malware or computer viruses. The blockchain identity and white-labeled KYC and AML information will also prevent any type of bad intentions on the internet and protect against identity theft.

The platform uses 256-bit encryption for Peer-2-Peer networking, providing better hosting capabilities while reducing carbon emissions by almost 40%. The hosting is distributed throughout the network, making it more efficient and cost-effective. Overall, the SourceLess ecosystem offers a secure and reliable web experience, with public identities for all users and 90% hosting use. This innovative technology has the potential to revolutionize the web and usher in a new era of decentralized, secure, and efficient web services.

In conclusion, SourceLess is a blockchain-based platform that aims to provide individuals and businesses with a highly secure, decentralized, and easy-to-use environment to build and deploy their applications and data. It offers several unique features such as STR.Domains, STR.Talk, AI Builders, Proof of Existence Blockchain, encrypted cloud storage, and more. SourceLess is powered by cutting-edge AI technologies like OpenAI GPT-3, Formwelt AI, and Github-Copilot, which help users create their own “ecosystems” within the network, without the need for advanced coding skills.

By leveraging the decentralized and secure nature of blockchain technology, SourceLess aims to address many of the key challenges associated with traditional centralized systems, including security vulnerabilities, privacy concerns, and third-party dependencies. It provides users with full control over their data and applications, without having to worry about the risk of data breaches or unauthorized access.

Overall, SourceLess is a promising platform that offers a range of innovative features and benefits. Its ultimate goal is to provide individuals and businesses with the tools and technologies they need to build and deploy their applications and data in a highly secure, decentralized, and efficient manner, while also providing them with full ownership and control over their assets.