Whitepaper - Open Collectors Network

Open Collectors Network

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The first one-of-a-kind token.

Open Collectors Network White Paper Dan-Andrei Singeorzan1, Ion-Cosmin Grigore1, Iulian-Andrei Popescu1, Grant Tiller, Reinhard Brongers, Florin Stefan Gheorghe, Daniel Taivan, Florentina-Maria Caval

Draft published Dec-1-2017, last updated Feb-27-2018 V1.0

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For review, please reach out to [email protected]

1 Table of Contents 2

Executive summary .................................................................................................................................. 4 2.1

3

4

5

6

Vision ................................................................................................................................................... 4

Introduction................................................................................................................................................ 4 3.1

Non-fungible vs fungible (one-of-a-kind tokens) .............................................................. 4

3.2

Market ................................................................................................................................................. 5

3.3

Platform goal .................................................................................................................................... 5

Business model ......................................................................................................................................... 6 4.1

Approach ............................................................................................................................................ 6

4.2

Incentives ........................................................................................................................................... 6

4.3

Competition ...................................................................................................................................... 7

Use cases ..................................................................................................................................................... 7 5.1

Public: tokenizing a little share of “you”................................................................................. 7

5.2

Virtual object marketplace for content creators ................................................................. 8

5.3

Digital media and rights marketplace ..................................................................................... 8

5.4

Gaming platform ............................................................................................................................. 8

5.5

VR .......................................................................................................................................................... 8

5.6

Artists ................................................................................................................................................... 8

5.7

Business sector ................................................................................................................................. 9

5.8

Auction houses ................................................................................................................................ 9

5.9

Discounts............................................................................................................................................ 9

5.10

Embedded ..................................................................................................................................... 9

5.11

Trustless ICO investment pool............................................................................................... 9

5.12

User identity ................................................................................................................................. 9

5.13

BlockchainCollection class (programming) ................................................................... 10

Goals .......................................................................................................................................................... 10 6.1

Openness ........................................................................................................................................ 10

6.2

Decentralization............................................................................................................................ 10

6.3

Usability ........................................................................................................................................... 10

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6.4

Absolute ownership .................................................................................................................... 11

6.5

Seamless Creation........................................................................................................................ 11

6.6

Spamming prevention – enforcing uniqueness ............................................................... 11

6.7

Interaction ....................................................................................................................................... 11

6.8

Trading ............................................................................................................................................. 12

7

Financial & Expenditures overview ................................................................................................. 12 7.1

Financial summary ....................................................................................................................... 12

7.2

Expenditures overview ............................................................................................................... 14

7.2.1 Allocation .................................................................................................................................. 14 8

ECTO token utility ................................................................................................................................. 15 8.1

Functionality................................................................................................................................... 15

8.2

Rewards ........................................................................................................................................... 15

8.3

Token Distribution & Price ....................................................................................................... 16

8.4

Funds Distribution ....................................................................................................................... 17

9

Technical details .................................................................................................................................... 17 9.1

Overall Architecture .................................................................................................................... 17

9.2

ERC721 Standard.......................................................................................................................... 18

9.2.1 Interface ..................................................................................................................................... 19 9.2.2 Implementation ...................................................................................................................... 19 9.2.3 Future backwards-compatibility with other dApps or tokens .............................. 20 9.2.4 Compatibility with existing wallets .................................................................................. 21 9.3

Ethereum Smart Contracts ....................................................................................................... 21

9.4

Token Uniqueness ....................................................................................................................... 22

9.4.1 Preventing spamming the exchange with duplicates .............................................. 22 9.5

Security ............................................................................................................................................ 25

9.6

Scalability ........................................................................................................................................ 26

10

Roadmap v1.0 – alpha .................................................................................................................... 27

11

Our Team ............................................................................................................................................. 28

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2 Executive summary Open Collectors Network is the first decentralized platform for one-of-a-kind tokens, where everyone can seamlessly own, create, customize, interact with and trade individual tokens, on an open market, based on existing standard specifications.

2.1 Vision As founders of Open Collectors Network, we consider ourselves as get-your-hands-dirty programmers at heart. We love a good technical challenge and since the beginning of 2017 we’ve started looking into blockchain tech. How the different proof-of-X work, all the hashes out there and the special structures, like IOTA & Raiblocks. The more read about the blockchain, the more we saw the beauty in it, and we knew that’s what we wanted to do from then on. But at some point, it hit us: all the coins out there were just currency, and like money, they’re fungible. Whereas in our daily jobs, writing code was all about working with things that are non-fungible: like the list of company products, users, roles, services and so on. The list of possible use-cases for unique tokens is virtually endless: the entire IT industry depends on it, and if they converted to the blockchain, they’d get all the benefits decentralization brings: security, transparency, trust and the ease of attaching monetary value to something (virtual currency). With this in mind, we started investigating what exists out there and it seems not a lot. Just a newly created Ethereum standard (ERC721, with a couple of other ERC proposals). So that’s our vision: to create a decentralized open platform, based on existing standards, for non-fungible tokens, all the while making it easy for the IT industry to join the blockchain revolution.

3 Introduction 3.1 Non-fungible vs fungible (one-of-a-kind tokens) Best way to explain how we understand this concept, and how it applies to our project, is by example. Imagine you printed 1000 flyers and are handing them out on the street. You don't care which flyer you hand out from the stack, because they are all identical: same size, same content, same purpose. This collection of flyers is said to be fungible and it's equivalent to current crypto currencies: if you send someone 1 coin, it doesn't matter which one from your wallet it is, any one coin will do. But let's consider now, another collection: paintings by famous artists. Already, we can tell a difference: though all of them are paintings, if you wanted to buy one, you wouldn't just pick randomly. You like some more than others, some are more expensive and so on. They're nonfungible, as they are all one-of-a-kind and it does matter "which" one it is.

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3.2 Market The market for non-fungible tokens is virtually endless. If you look around you, almost all the things you see can be categorized: people, cars, streets, shops, products, art and so on. One thing all these have in common is their respective items are all different from one another. All these items are currently being indexed or managed in a centralized fashion. An art gallery internally keeps a ledger of its different exhibits. A car info website has its own SQL database where it has gathered all car specs over time. And the list goes on… All these industries depend on one in particular: the IT industry. It has a 9.27 trillion dollars market capitalization in the US alone and is among the fastest growing industries. Although our business model will allow us to approach any company, the IT industry is our main target and the one that will most benefit from decentralization. But how? Well, just as an example, ever since its early days, IT industry developers working in FORTRAN and other early languages, have had the need to work with collections of objects, and this is still just as true today. These objects usually represent items in a specific application domain, like company assets, products, users, services, income balances etc. The objects in a specific collection are all part of just one category, yet they have different attributes, making them unique. Of course, they must all be stored somewhere and interacted with, but currently this is preponderantly done in a centralized manner. Although the IT industry is the most natural first adopter of blockchain technology, as it becomes mainstream, more and more companies, indeed with entire industries to follow, will want to take advantage of the benefits decentralization and the blockchain brings: Transparency and trust Bullet-proof security Robustness Scalability Ease and cost-efficiency of attaching monetary value (virtual currency) to an asset

3.3 Platform goal Our aim is to create the first decentralized platform which facilitates storing and interacting with non-fungible tokens. We are slowly but surely entering the mature phase of the blockchain era and yet, every new crypto currency or blockchain technology out there is made to work with just one thing: a fungible token. If you have 10 BTC, they are just as good, identical in fact, to any other 10 BTC that someone else owns, and the same is true for more modern blockchain technologies, like IOTA or Ripple.

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From our experience as hands-on developers, we realized that the non-blockchain IT industry usually deals with non-fungible collections of objects, where if you were to randomly select two or more items from a collection, they would have differing characteristics or attributes. It is this rather simple use case that Open Collectors Network, or ECTO, is aiming to solve, albeit we believe it’s probably one of the most basic and commonly used patterns in programming, and for which is there is currently no easy blockchain alternative. In addition, though the use case is simple, we anticipate large demand for our platform, by everyday users who will be using our web interface to create unique items, under the Public category, and even more so by companies, which will most likely be using the platform’s public API, for more advanced scenarios and bulk creation of unique items, for the specific (corporate) purposes of their dApp. In time, as increasingly more tokens are created on the platform, the early or popular ones will appreciate in value, enabling their owner to auction them to the highest bidder for a profit. All creation and trading operations on the platform will have a nominal fee associated with them, the proceeds from which will be shared with the holders of our platforms own utility token: the ECTO token.

4 Business model Our business model revolves around incentivizing both every day and corporate users to convert their assets to the blockchain, using our platform.

4.1 Approach We wholly believe in the mantra that the customer is king. Our efforts are mainly focused on attracting strategic partners, especially during the early stages of our platform. It is our opinion, at Open Collectors Network, that the complexity of integrating with the blockchain is the last remaining barrier to mainstream adoption. For this reason, we will be working with each one directly, guiding them through the decentralization process and its benefits, and, most importantly, free technical assistance, for the first phases of integration. At the same time, seamless usage of our platform is a mandatory development requirement.

4.2 Incentives Our platform functions based on our own utility token, the ECTO. It is needed to pay for creation and trading fees, while at the same time, offering multiple benefits: Discounts

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Discounts on the platform are directly proportional to the amount of ECTO tokens you are holding at the time. The more tokens you have in your wallet, the bigger the discounts. Periodical rewards All fees collected in ECTO will be redistributed periodically, as rewards for our users, according to a specially designed proof-of-stake algorithm which takes into account relative activity on the platform and also the amount of ECTO tokens you are holding. Our company retains 13% of total ECTO supply, to be used as incentives for attracting strategic partners to our platform and accelerate our growth, with special terms and conditions to be applied. Our token mechanics allow it to have greater demand over time, proportional to the amount of usage of our platform. An increase in popularity & usage of our platform translates into an increased demand for the ECTO token.

4.3 Competition Our platform has currently no competition, with regards to the possibility of creating tokens and in general, to the breadth of use cases possible on our platform. Although there are a couple of projects out there working with non-fungible tokens, they are limited to trading already existing ones, like CryptoKitties, CryptoPunks or Decentraland. Our platform also supports these tokens, as they are based on the open ERC721 standard, but it can do so much more than that.

5 Use cases The possible uses cases for unique tokens is almost endless. We have several that are already implemented and more that we have thought about and working on. But more importantly, it's the ones we didn't think about that are most exciting: our platform is open to everyone and we expect innovative ideas to be implemented on top of our platform, especially since it abstracts away all blockchain related complexity. Just to give a few examples:

5.1

Public: tokenizing a little share of “you”

This can be a part of your future success, a favor from you once you're successful or some of your time later on, in return for financial support. The blockchain, by its very nature, ensures these promises are set in stone forever, and can never be denied. Another example would be individuals or groups who can tokenize something important to them, for personal use.

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5.2 Virtual object marketplace for content creators The ability to buy digital assets with the intent to use them within a game or within the development of a game is possible through leveraging the ERC721 standard. This means the marketplace offers the tools for game developers to sell their creations or use those creations for further game development.

5.3 Digital media and rights marketplace It is worth noting that any digital media could be represented here. This could be a graphic, image, music, book, or anything else that one may want. For example, any artist, writer, musician would be able to sell their asset, as long as it was digital to anyone who wanted to do purchase the asset. Going further, digital rights relating to the ownership of the digital media can be bought and sold via the marketplace. The latter has the benefit of circumventing digital rights auction houses and significantly reducing cost of transacting and the fees related therein. Small creations, like a brand-name, or a logo can be directly held on-chain, whereas larger ones can be stored anywhere on the cloud, and only a hash of their value stored on the ledger. This brings the best of both worlds: cheap/fast storage and full accountability.

5.4

Gaming platform

Card games like Magic: The Gathering© or in-game collectibles like a Dragon Lore AWP skin in Counter-Strike© can be held on the public ledger, increasing accountability and transparency for company. It also adds easier & cheaper payment options for selling the items.

5.5 VR VR is fast becoming a mainstream industry, and through our platform, it will be seamless to tokenize valuable virtual objects that can be traded between participants, while attaching monetary value (virtual currency) to them. Additionally, because our platform respects an open standard, it will be possible to make use of items between different VR technologies/implementations interchangeably.

5.6 Artists Almost any kind of artistic content can be held on the public ledger, for tokenized copyright purposes, or simply to sell it. Small creations, like a brand-name, or a logo can be directly held on-chain, whereas larger ones can be stored anywhere on the cloud, and only a hash of their value stored on the ledger. This brings the best of both worlds: cheap/fast storage and full accountability. It is entirely possible to hold large amounts of data using a decentralized storage platform, like Storj or Oyster Pearl, so that would be our first choice.

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5.7

Business sector

Any freelancer or business can easily tokenize personalized products (cars, devices or hand-crafted items).

5.8

Auction houses

Maintaining their inventory on the public ledger to increase trust among its client base. When an item is sold, after the auction, the unique token associated with it can be transferred to the buyer’s wallet.

5.9

Discounts

Partnerships with companies which can tokenize their products. Let's take for example a user which lives and breathes Apple products. He will create/buy different Apple unique tokens, at which point he, or even we, can approach the company and obtain discounts for him as a reward.

5.10 Embedded Features like 'Facebook like button' that can be easily put up in place using only a script tag on your website.

5.11 Trustless ICO investment pool It is quite common lately for groups of individuals to pool together small amonts of virtual currency, in order to participate in the private sale stages of an ICO, where there is a mandatory minimum investment. Most use plain old Excel sheets to keep track of contributions and distribute tokens after the sale, by having an owner/manager do the transactions. Needless to say, this is less than ideal, and there’s been quite a few cases of things going bad. An ICO pool is certainly a non-fungible token, where its unique attributes are the token sale address and the token contract address. In fact, this will be our first implemented use-case. At the time of this writing, it is currently in testing phase.

5.12 User identity Our platform aims to collaborate with a KYC solution, where after a user has his identity verified, a unique token for him is created on the blockchain. After than, when the user needs to verify his identity with another web site, he can use Metamask to sign transaction verifying he is the owner of the token with all his information and the web site can double-check using our API. The same can apply for the more ordinary use case of logging into a website and it would work in just the same way as logging in with Facebook or Google, except it would be decentralized and you would own your credentials, not some 3rd party company Open Collectors Network ICO

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5.13 BlockchainCollection class (programming) At the end of the spectrum of use cases, is one of the most basic and common patterns in coding in general: using a collection of objects with different attributes. Standard ones include array, list, dictionary, hashmap and there are many open source libraries which provide specialized collections (think C++ Boost, .Net C5 etc). Our platform will provide such an open-source library with collections that store objects on the public ledger, bringing with it all the benefits of decentralization to non-blockchain devs. All you would need is an Ethereum wallet and to sign transactions using your private key, which would not leave your code.

6 Goals To achieve all of this, we are currently building a platform (at the time of this writing, it is a working prototype) based on Ethereum smart contracts, specifically designed for this purpose: creating, modifying, interacting with and owning one-of-a-kind tokens.

6.1 Openness It is an imperative for the platform to be based on open standards and have open-source code. For our specific use cases, the relatively newly created standard for the Ethereum ecosystem, the ERC721 standard, must be adhered to. This provides compatibility with any already existing tokens, like Decentraland, Crypto Kitties and Crypto Punks, and ensures future backwards compatibility can be maintained with tokens created earlier.

6.2 Decentralization Having Ethereum smart contracts as the underpinning code allows us to take full advantage of the added benefits blockchain technologies bring to the table: transparency, tamper-proof security, accountability & absolute ownership. At the same time, we have the option and will exercise it, to have our code signed & publicly verifiable, simply by using Etherscan and checking out the contracts’ code.

6.3 Usability We believe the last remaining barrier to mainstream adoption of blockchain technology and crypto currencies in general, is the difficulty of use. Buggy wallets, complicated to understand dApps and the technical terminology overload that a newcomer must endure are a problem. This is only natural, since the technology has been in its early stages. However, as time passes, overcoming technical barriers is no longer a valid excuse, and so, a clean and intuitive interface for newcomers is one of our top priorities. Open Collectors Network ICO

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6.4 Absolute ownership The end user should absolutely own each unique item. He or she will be able to see their items in their wallet at any time and only they are allowed to interact with it, by using their private key. Our decentralized exchange does not hold, nor request private keys from its users.

6.5 Seamless Creation Anyone can create a unique item, which will automatically enter into their ownership. However, there are several rules by which creating new items functions. These are put in place to ensure existing items on the market do not have duplicates created for them and are categorized appropriately. This will allow items to grow in value over time.

6.6 Spamming prevention – enforcing uniqueness Precisely because tokens can be created by anyone, there are rules in place to ensure uniqueness. These are implemented using specialized algorithms2, and are needed to prevent spamming the market with virtual duplicates of existing, expensive items. This is especially important for the Public category tokens, where everyday users will be able to create their tokens. For corporate use cases, this is less of an issue, since their tokens will be created within a particular category specific for each company.

6.7 Interaction The creator of an item has the option of allowing improvements to be made, over time, to the newly created item. They can specify exact rules by which these can be made upon item creation. This allows for accelerated appreciation of an item’s value (flexible investments into an item) and/or can be used to create complex game-like conditions for interaction between items in the same category. An example might be an item from a racing cars category, let’s say a Ford Mustang model. The creator, if they so choose, can allow child items to be linked to the main item. They can create two ‘Tires’ items, one called ‘Slick Tires’, for dry weather and one ‘Rain Tires’. They can create upgraded engines for the car and swap them around. In addition, they can specify the rules by which these added upgrades add value to the car, and what the rules are for a race between cars. These will be encoded into a smart contract upon a new race creation, so everyone can be sure of the rules of the race before it starts, enabling fairness and easy creation of games using the platform.

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More details in technical chapters

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We also provide the raw option for specifying token interactions: a plain old json field with serialized custom data. This is a common pattern in application programming and it allows the IT industry to easily take advantage of blockchain benefits, while abstracting away all the nitty-gritty details of blockchain smart contract programming.

6.8 Trading3 As popular tokens’ increase in value over time, the exchange allows many forms of trading, ranging from selling for currency or auctioning, to direct trading with another seller, which has an item of interest.

7 Financial & Expenditures overview 7.1 Financial summary The following sections will outline important financial information, while also keeping sensitive parts private. Today's financial system is complex, versatile and in many regards, uncertain. However, this plan represents a framework to clarify, structure and estimate our financial matters. Please be aware this is not financial advice and it contains forward-looking statements based on assumptions on user activity on the platform. Main source of monetization is represented by the platform’s fees and we expect Open Collectors Network to sustain itself in maximum 6 months to 1 year from main launch. Other types of monetization, like premium user’s roles and partnership requests are planned for the future. Given this, 2018 will be considered year 0 and the assumptions used are representative for the financial forecast for Open Collectors Network. Any person purchasing Open Collectors Network platform’s services or ECTO tokens expressly acknowledges technical and market uncertainties. The economic model of the platform is based on the following formulas: Non-fungible token creation price, based on an initial fee of 100 ECTO Forecasted price of our ERC20 token, the ECTO Number of registered users Number of businesses created

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Technical chapters and roadmap describe in detail all trading options

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Number of partnerships acquired/businesses created on the platform Platform’s trading activity, based on 0.1% fee Platform’s interaction rules system Platform’s creation and uniqueness algorithms

Indicators, hard cap 15000 ETH

Registered Users ( millions ) Created tokens ( millions ) Tokens transactions ( millions ) Interaction rules defined ( millions ) Partnerships acquired Collected fees, millions

ECTO price

Indicators, soft cap 3000 ETH

Registered Users ( millions ) Created tokens ( millions ) Tokens transactions ( millions ) Interaction rules defined ( millions ) Partnerships acquired Collected fees, millions

ECTO price Open Collectors Network ICO

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2020

2021

0.3

2

7

1.5

10

50

4

20

150

10

50

300

5

20

30

0.35

1.5

10

P_token

P_token

P_token

2019

2020

2021

0.1

0.6

4

0.3

4

25

0.9

6

60

1

12

100

2

6

14

0.06

0.5

4.25

P_token

P_token

P_token 13

Several economic mechanisms are at play, with specific relationships between in continuous change. By studying these relationships, we are targeting when, by how much and in what direction our marketing and development plans will adjust.

7.2 Expenditures overview 7.2.1 Allocation

Scenario 1, soft cap Use cases are implemented one at a time, starting with ‘Decentralized trustless ICO pool” and ‘Digital media and rights’ Mobile applications will be coded after main net launch Dedicated marketing team Dedicated 24/7 support team Dedicated development team for partnership acquisition ( proof of work implementation on client’s headquarters ) Scenario 2, hard cap Scenario 1, soft cap -

+ Use cases are implemented in parallel Mobile applications will be released along with main net launch Dedicated sales team for partnerships acquisition Dedicated research team for discovering of new use cases and problems our platform could solve

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Our highest priority is to satisfy our users through early and continuous delivery of usable and valuable software. We will follow Agile Software Development toolset as it helps us to release portions of our platforms in each year’s quarter. Our sprints will be represented by 1 phases with grooming and planning meetings for each sprint. After each release a retrospective meeting will be scheduled at which we will discuss users concerns and teams’ problems, along with other marketing and development changes from crypto ecosystem.

8 ECTO token utility 8.1 Functionality Operations on the platform are powered by using our own coin, the ECTO token. From a technical point of view, it is needed to ensure fair usage of the platform and avoid spamming and overloading of the Ethereum network, especially with regards to the creation and trading of unique items. From both technical and business model points of view, it is also needed for our special proof-of-stake algorithm, according to which users and holders of ECTO get periodically rewarded.

8.2 Rewards In addition, having ECTO in your wallet also offers several benefits, according to a special proof-of-stake algorithm: Discounts for all operations. Voting rights for features that the platform should implement first. Airdrops given out periodically, in the form of ECTO airdrops, based on a combination of activity on the platform and the amount of ECTO you hold.

Activity is measured in relation with the total activity by all users of the platform. Open Collectors Network ICO

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ECTO stake refers to the amount of ECTO you have in your wallet at the time of calculation. The actual implementation of this mechanism is going to be coded into Ethereum smart contracts, for several reasons: Guaranteed terms, which will remain unchanged over time Added security Full transparency regarding any collected fees, shared profit and funds Full control of funds: each user will be able to withdraw his profit share, to his wallet where he holds his ECTO tokens, at any time, without the need for it to be daily (his share is calculated since his last withdrawal date) No hidden fees, no withdrawal fees, except the normal Ethereum transaction mining fee As our code will be open-source, we intend to encourage more ICO’s to make use of our reward mechanism. This distributes decision making for a project, and we believe community knowledge and consensus driven decisions are stronger and more valuable than centralized ones.

8.3 Token Distribution & Price Total tokens: 150,000,000 ECTO ( 100,500,000 public; 2% bounty + 65% sale )

Token price: 1ETH = 6000 ECTO

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8.4 Funds Distribution In addition to the development of the exchange platform itself, we put emphasis on marketing and attracting strategic partners. We believe this is key to a successful product, and development will be an agile, interactive process, based on the needs of users & partners.

9 Technical details 9.1 Overall Architecture The platform is being built around Ethereum Smart Contracts, written in Solidity, which are used for managing ownership and transferals, in a secure and robust way. These are coupled with a clean front-end, based on AngularJS, for users to have an overview of their assets and initiate operations.

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The backend is only useful for new token creation, as it will be responsible for advanced uniqueness rule enforcing, statistics and monitoring. It is based on open-source .Net Core and hosted in the cloud for maximum availability. It will come with a free public API, for more advanced users of the exchange. All interactions with the blockchain from the front-end must be as easy and intuitive as possible, using the most up-to-date mechanism, which, at the time of this writing, is the Metamask web wallet. We are planning integration with MyEtherWallet for the future. As a desired consequence, the exchange does not store private keys of its users, putting them in total control of their assets. In addition, there is no need for account management on the client side (no signup/login), as all operations are made through the 3rd party open-source wallet, ensuring privacy and security. The platform aims to conform to GDPR standards, so we will no be storing any personally identifiable information, unless requested by law, and then only with the user’s consent.

9.2 ERC721 Standard This is a relatively new and powerful standard created for the Ethereum ecosystem. Whereas up until now, almost all newly created tokens were fungible, meaning they are all equal, so any 5 tokens were just as good as any other 5 tokens, the need for unique, non-fungible tokens has recently arisen. These are items that must not be lumped together, but each item must be considered on its own for the purposes of atomic tracking, ownership and transferal. The ERC721 standard was created for exactly this purpose: ownership and transferal of individual tokens from one contract or address to another. This means that each token can be identified uniquely throughout the Ethereum ecosystem by the pair: (contract address, token id).

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9.2.1 Interface The following is the latest version of the standard draft: pragma solidity ^0.4.18; contract ERC721Interface { function implementsERC721() public pure returns (bool); function totalSupply() public view returns (uint256 total); function balanceOf(address _owner) public view returns (uint256 balance); function ownerOf(uint256 _tokenId) public view returns (address owner); function approve(address _to, uint256 _tokenId) public; function transferFrom(address _from, address _to, uint256 _tokenId) public; function transfer(address _to, uint256 _tokenId) public; event Transfer(address indexed from, address indexed to, uint256 indexed tokenId); event Approval(address indexed owner, address indexed approved, uint256 indexed tokenId); // Optional // function name() public view returns (string name); // function symbol() public view returns (string symbol); // function tokenOfOwnerByIndex(address _owner, uint256 _index) external view returns (uint256 tokenId); // function tokenMetadata(uint256 _tokenId) public view returns (string infoUrl); }

The operations declared by the interface explain themselves, perhaps with the exception of the two transfer methods. The first one, transfer, must be called by the owner of the token specified by _tokenId, while the second one, transferFrom, can be called by anyone (like our platform), provided the owner has previously called approve for the recipient.

9.2.2 Implementation A clean working version of this interface would require the implementing contract to hold only the following fields: contract ERC721Token is ERC721Interface, Pausable { address NULL_ADDRESS; string public name = "token name"; string public symbol = "token symbol"; event Creation(address indexed owner, uint256 tokenId, string data); event Transfer(address indexed from, address indexed to, uint256 indexed tokenId); struct ERC721TokenData { // add non-fungible token attributes here

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// the following is just an example String name; string description; string link; string customDataJson; // … any other needed fields } ERC721TokenData[] tokens; mapping (uint256 => address) ownersByIndex; mapping (address => uint256) tokenCountByOwners; mapping (uint256 => address) approvedByIndex; function implementsERC721() public pure returns (bool) { return true; }

// other methods impl

The three fields are all that is needed to manage ownership and transferal: -

ownersByIndex can be used to cheaply find the owner of a particular token tokenCountByOwners can be used to find the total tokens owned by a particular address approvedByIndex is used for the implementation of the approve/transferFrom methods

Conforming to this standard is one of the main drivers behind our exchange, as it provides valuable benefits, described below.

9.2.3 Future backwards-compatibility with other dApps or tokens While we believe we already have solid use cases for our tokens, and we plan to implement user-voice and partner affiliates mechanisms for new feature requests, it’s entirely possible 3rd parties might find new and exciting use cases for the open token standard and implement them. Some examples of this are CryptoPunks and CryptoKitties, which conform to the standard. In fact, we encourage this! It will allow any exchange user to import, migrate and generally make use of his or her tokens in other dApps. Any conforming token can be handled by the exchange by using the pair (token contract address, token id). In the case of tokens created by the exchange itself, the token contract address can be omitted. Open Collectors Network ICO

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9.2.4 Compatibility with existing wallets Wallets are incentivized to implement the standard, so users can see owned tokens inside any respectable Ether wallet. We believe this is an important feature of the platform: the mere fact that you are in control of your tokens is an advantage.

9.3 Ethereum Smart Contracts The best and only way to ensure total fairness and accountability is to make use of smart contracts on the Ethereum blockchain, taking full advantage of decentralization, especially for the core functionality of the exchange. For contract language, the choice was between Solidity and the lower level Serpent. The Solidity compiler is more stable, with fewer bugs, is more widely used (so any kinks are discovered earlier), all of this at the expense of increased direct access to the EVM. After careful consideration, we chose Solidity. The contracts are kept as simple as possible, with security and separation of concerns being the main considerations. At the time of this writing, our proof of concept is powered by the following contracts:

ERC721Interface - the standard interface for non-fungible tokens ERC721Token - clean implementation of the standard interface CreatableToken - responsible for creating new tokens; contains the data structure common

to all tokens on the platform UniqueToken

- responsible for ensuring uniqueness and fair use of the platform for

creating new items AuctionableToken - manages information about token auctions currently in progress Collectible - adds information to the common data structure regarding specific token implementation; these include descriptive fields and rule enforcing methods for token dynamics

OpenAuction the first auction type to be currently implemented Open Collectors Network ICO

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token ownership transferral from the user to the auction contract, upon auction creation by the owner transfer of the token to the highest bidder, refunds of losing bidders, and transfers winning bid to previous owner, upon auction end

9.4 Token Uniqueness 9.4.1 Preventing spamming the exchange with duplicates Popular tokens on the exchange will appreciate in value over time, which creates a risk of duplicates being created by users. We have rules in place to mitigate this risk. Each newly created token will be automatically validated by the exchange, through a complex mechanism, made up of several layers. In order to be responsive, the first layer is an automatic check, using cutting-edge data matching algorithms. The first layer will be the most frequently used one and will provide us with a uniqueness score. If this score is high enough, it means the token can go ahead and be created, which will be the average case or the fair-use case of the platform. If the score is not high enough in its own category, it means this token creation might possibly represent a duplicate and will be denied initially. The user has the option of requesting a manual check for duplicates for their token. Upon approval, the creation process can go ahead without any problems. To further mitigate this risk, each token has complete history data attached to it on the blockchain, allowing us to create a reputation rating to it. Users will be able to easily see this rating when deciding to acquire a token. A semi-formal description of the inner workings of the exchange follow, with the exact combination of algorithms for the automatic check not completely revealed, as we would like to keep this a trade secret, with regards to both future competition from other exchanges and reverse-engineering in order to try to bypass it.

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Creation flow

Manual approval Run DoS checks (too many manual approval requests from IP, already requested check etc..) Dequeue approval request Manual check Log manual request approval or failure

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Automatic approval This is based on calculating a list of candidate duplicates for the token, each with a score, using a combination of algorithms:

Levenshtein Distance - purely lexical difference score Example: score = levenshtein(“Jessica Alba”, “Jessika Alba”) = 1, because there is only one letter that needs to be inserted, changed or deleted

Smith-Waterman - difference score using local alignment, used to match dna sequences in many genome projects Example: score = 1 / smithWaterman(“Trickshots”, “Trickshots Restaurant”) = 0.1, we must invert the result of the algorithm, meaning expensive operations to convert one value to the other equals a high uniqueness score.

Metaphone/MetaphoneX2/Soundex pronunciation. Variants exist for different cultures.

difference

scores

based

on

phonetic

Example:

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9.5 Security The crypto world is as dangerous as it is exciting. Every other day, there’s a new story about a hacker stealing funds from exchanges and so forth. Our exchange solves 90% of this problem by having its core functionality hosted on the blockchain, as Ethereum smart contracts. The exchange does not hold any user personally identifiable information, everything is done by using a state-of-the-art, open-source wallet, therefore, we don’t store the user’s private keys. This brings the security of the exchange to the level of the EVM, however, the remaining 10% is very important: the security and robustness of our smart contracts code. We have a multitude of requirements to ensure this risk is mitigated: Develop using Solidity language, which is the highest level available language Educate ourselves about every new smart contract vulnerability in the news, try to learn from other’s mistakes and use established patterns. Have 100% unit test coverage (with both positive & negative testing). Request 3rd party smart contracts audit for the live exchange. Strict adherence to the ERC721 standard for token ownership & transferal.

A basic example of the kind of things we are being careful about can be our Auction Smart Contract. This contract assumes ownership upon its creation by the initial owner of the token. It accepts bids and after the auction duration is reached, or a direct-sell price is bid, the auction ends, and among others, the following must happen: Transfer ownership of the token to the highest bidder Transfer highest bid to the now previous owner Transfer any losing bids back to the losing bidders

The auction end will be detected by a particular method in the smart contract, but at that point, it is not a good idea to start doing all these things sequentially, because of the max call stack attack possible in the EVM. The first step, transferring ownership of the token to the highest bidder is completely safe because it’s our own verified code. The second step, transferring funds to the previous owner is not safe, as this will eventually result in a call to the previous owner’s address, which can be an external untrusted contract. This contract’s payable fallback function will be called, and it is free to do let’s say 1024 recursive calls in its own code. This will cause the EVM to throw an exception, and the rest of our auction contract code will not execute. There are workarounds for this, like trying to catch the exception, but these are not recommended. A better way would be to let the auction method fail after the second step, with the money having Open Collectors Network ICO

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effectively been sent to the previous owner already. The 3rd step, refunding losing bids must be done independently, in a separate method, which can be called by anyone, but will be done by the exchange in what we call a sweeping process. This is similar to the way crypto exchanges don’t keep funds in the addresses you see on the site, but move them to their hot/cold wallets, and only keep centralized database records with the amount of funds you have, for security reasons.

9.6 Scalability As the exchange platform will grow, scalability becomes an issue. Our development process has this in mind from the get-go, by having three prime directives: Each one of our smart contracts is load tested for performance metrics, on multiple environments (TestRPC, a live test network like Ropsten & Mainnet). The main contract will have in place adjustable throttling parameters, global & per user, with fully permissible initial values. We will be monitoring the smart contract transactions from outside (free, no gas cost) and decide if throttling is needed, to ensure proper functioning of the exchange. In addition to throttling, with extra large scale use of the exchange it’s entirely possible that the Ethereum network becomes clogged. We are foreseeing that sharding of the Ethereum ecosystem by the main dev team will fix this problem. But in case this feature does not materialize, or comes too late, we have a plan of our own in place of sharding the tokens among multiple identical smart contracts. Although Our smart contracts implementation will follow the upgradable pattern, to allow future improvements to be made.

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10 Roadmap v1.0 – alpha

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11 Our Team We are a hard working team with over 50 years of combined programming, testing, product management and marketing experience, who have a burning desire to be part of the blockchain revolution.

Dan Andrei Singeorzan Co-founder & Developer 2 years Development Manager @ Ivanti, 4.5 years Team Lead @ Stefanini

Ion-Cosmin Grigore Co-founder & Developer 2 years Software Developer @ RES Software, 2 years .Net Programmer @ Fullscreen Digital

Grant Tiller Product Manager 11 years Director of Product Management @ Ivanti, 1 year Product Manager @ Dell

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Stefan Mihai Stanescu Legal Advisor Current: SCP STOICA & ASOCIATII

Daniel Taivan Test Lead 2 years Test Manager @ IBM, 4 months Test Manager @ Tremend Software

Florin Stefan Expansion & Marketing Executive 6 years Service Line Manager @ Stefanini, 4 years Senior Line Manager @ Akela

Cristian Cotarcea Digital Marketing Specialist 2 years Product Manager @ THATS.wiki, 2 years Co-Founder @ Senzo Association

Iulian-Andrei Popescu Senior Developer 3 years Senior Software Developer @ Ivanti, 4 years Assistant @ University of Bucharest

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Florentina-Marina Grigore Developer 3 years .Net Developer @ ING, 5 months Trainer @ Invatam Programare

Spasenie Alexandru Android Developer 3 years Android Developer @ Stefanini, 4 years Founder @ Digitalapps

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Advisors

________________________________________________________

Cristian Tamas 3 years Senior Esports Manager @ Twitch, 6.5 years Co-Founder @ The GD Studio

Mike Boutwell 1 year Founder @ cryptoadvisors.io, 2 years Senior Network Architect @ AT&T

Sabin Girlea 5.5 years Director of Operations @ Stefanini, 1.3 years General Manager @ Stefanini

Dylan Senter 1 year Founder @ Spectiv, 3 years Founder @ SuperSenter

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Simon Cocking 2 months Advisor @ Friendz, 4 months Advisor @ MediChain

Reinhard Brongers 2 years Solution Architect @ DCypher, 8 years Software Architect @ RES Software

Alexandru Savulescu Current: Founder of RetroTech

Laura Toma 4 months Co-Founder @ Renowed&Co, 5 months Marketing Consultant @ AmaZix

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