CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.

CONTENTS 目录

DESCARTES’ PROJECT BACKGROUND 4

INTRODUCTION TO DESCARTES PROJECT 13

2.3.3 KEY TECHNOLOGIES 21
2.3.4 MIXED CONSENSUS MECHANISM 27
2.3.5 ANTI-ASIC ALGORITHM 28
2.4 DAPP INCUBATES APPLICATION SCENES 29
2.4.1 CONVENIENT PAYMENT 29
2.4.2 CREDIT LENDING 31
2.4.3 TRANSACTION EXCHANGE 32
2.4.4 ARTIFICIAL INTELLIGENCE 32
2.4.5 ASSET MANAGEMENT 33
2.4.6 INSURANCE CONTRACT 34
2.4.7 DECENTRALIZED EXCHANGE 34
PROJECT HISTORY AND PLANNING 35
THE PROJECT HAS OBTAINED THE QUALIFICATION 36
PROJECT TEAM INTRODUCTION 38
ISSUANCE PLAN OF THE GENERAL CERTIFICATE 40
RISK WARNING 41
DISCLAIMER 42
REFERENCE 43

Background of Descartes Cloud- melting Chain Project

Finance — the core of world economic development

Since Babylon in 2000 BC, finance has been accompanied by the development of the world economy. By 2018, the global financial derivatives market has exceeded 600 trillion dollars. Finance is the core of modern economy and plays an important role in the virtuous circle of world economy. As an important economic resource and wealth, monetary fund has become the lifeline and media of the whole social and economic life. Almost all modern economic activities are inseparable from money and monetary activities.

four stages of financial digitization development

real finance

The characteristic of real finance is the special industry of financial products in traditional economic environment. Finance had its origins in the babylonian temple in 2000 BC and the Greek temple in the 6th

century BC, and in the business of lending money to pay interest. After a long period of historical evolution, the modern financial industry gradually evolved from a relatively single form of ancient society into a variety of financial institutions. In the modern financial industry, all kinds of Banks are dominant. Commercial Banks are the earliest and most typical form of modern banking. In addition to Banks, modern finance also includes various cooperative financial institutions, financial companies, discount houses, insurance companies and securities companies. Financial advisory firms, professional savings and exchange institutions, pawnshops, gold and silver industries, financial exchanges and credit rating companies.

electronic finance

The characteristic of financial electronization is to use modern communication technology, computer technology and network technology to improve the efficiency of traditional financial services. Reduce operation cost, realize automatic processing of financial services, information business management, scientific financial decision-making, and provide customers with faster and more convenient services. Achieve the purpose that promotes market competition ability. In the second half of the 20th century, financial e- commerce flourished with the development of electronic technology and its wide penetration in the financial industry. Its appearance not only greatly changed the appearance of the financial industry and expanded the service industry, but also constantly changed people’s economic and social lifestyle. Today, all social organizations and

individuals, consciously or unconsciously, are directly or indirectly aware of the existence of financial electronics and enjoy the services they provide.

The emergence of electronic finance has led to great changes in financial rules and efficiency. There is still no smooth communication

and collaboration between financial products, financial products and users, and financial and management. Internet finance emerges as The Times require.

Internet finance

Internet finance integrates Internet technology, Internet spirit and core functions of finance, greatly reducing costs. Reduce information asymmetry and enable consumers, including ordinary individuals and enterprises, to enjoy better inclusive financial services.

Internet technologies, including emerging technologies such as big data and cloud computing, will push the Internet to make full use of the “link dividend”.

The spirit of the Internet lies in equality, openness, transparency and sharing. According to Nobel prize-winning economist Robert merton, core financial functions include resource allocation, payment settlement, risk management, price discovery, resource and ownership allocation, and the creation of incentives.

In addition, no matter the service provider is an Internet company or a traditional financial institution or other institutions, as long as it meets the above description of Internet finance, it can be classified as Internet finance.

Internet finance is the product of cross-border integration, showing different characteristics from traditional finance.

First of all, species transmutation, that is, breaking the shape or boundaries of an established industry. If we say that finance is an

ecosystem, the implantation of Internet finance gene will cause the boundary of different financial business forms to become more and more blurred. “Cross-industry integration” between “finance and

non-finance” and “finance and finance” has become the norm.Many “new species” are emerging that do not exist in the traditional financial services model.

Second, species diversity, or business models, presents an extremely rich diversity.Take crowdfunding. Equity-based crowdfunding projects

return the equity invested in a project, or even charitable crowdfunding projects that do not provide a return.

Third, the evolutionary nature of species, namely product iteration speed is greatly accelerated.Even if it is business of a few already

classified Internet finance, connotation also can refresh ceaselessly. Take payment as an example, new payment modes such as qr code, acoustic wave payment, NFC, beacon, and biometric payment have emerged one after another, breaking the boundary between online and offline.

In short, the financial ecosystem is moving rapidly from a relatively fragmented, static, modular industrial age to a converged, dynamic and “molecular” (relatively modular, which can be broken down into a smaller dimension) form of financial business that is difficult to categorize and, even when classified, often changes rapidly.

Internet financial essence follow is still traditional financial rules and regulations of the inherited, only from the aspect of information processing efficiency, but the centralized financial operation is not the most optimal solution, a large number of third-party intervention to ensure more waste costs at the same time, with increased efficiency improved financial operation mode from the underlying logic, block chain has become a new choice.

digital (blockchain) finance

The Internet was invented to solve the problem of the rapid transmission of information. However, this information transmission network does not have an inherent mechanism to protect valuable information. We can’t pass information that includes ownership point-to-point. Some traditional industries, such as the recording industry and publishing industry, have been hard hit by the birth of the Internet. Although governments are increasingly protecting the copyright of online content, it is still technically difficult to eliminate copyright infringement.

From the point of view of the birth and development of electronic money, although we have managed to make money circulate efficiently in digital form, this digitization is still very fundamental. We have to rely on a large number of third-party intermediaries to ensure the circulation of electronic money, which increases transaction costs, such as handling fees, and also comes with the hidden danger of centralization.

Blockchain is born in this context. Since information and value are inextricably linked, we have a globally efficient and reliable information transmission system that will inevitably require a matching efficient and reliable value transmission system. In other words, the birth of blockchain is not accidental, and there is a profound logic behind it.

The name “blockchain” may be accidental, but the birth of a real blockchain system is inevitable.

Credit is the real raw material for making money. And blockchain makes possible the emergence of bitcoin, a peer-to-peer electronic cash system, by constructing an economic system that quantifies credit. Or rather, blockchain creates a digital credit system that transmits value point-to-point.

rise of digital currency — the embryonic form of digital finance

Bitcoin has long been the only digital currency based on blockchain technology. According to statistics, by the end of 2018.3, there are more than 1,700 kinds of digital currencies released and on larger platforms.

In fact, since bitcoin was created, its imitators or competitors have sprung up. Many of them simply copy and mimic bitcoin. Others are not simply imitations but have their own innovations and areas of concern. In terms of the market value of digital currencies, although bitcoin is by far the leader, the subsequent ethereum and rebocoin offerings now have a market value of more than $10bn.

Digital currency is the most widely used and recognized application created by blockchain. Digital currencies represented by bitcoin once became synonymous with blockchain. It can be expected that even in the future when blockchain is widely used, digital currency will still be one of the most important blockchain applications.

Digital assets and blockchain have a natural affinity. In a general sense, a digital asset includes any asset that exists in a binary format and has ownership attributes. In a narrow sense, digital assets are non-monetary assets that exist in the form of electronic data and are sold in daily life. More typical are stocks, bonds and other financial products.

In addition, due to the open, transparent and difficult to tamper with characteristics of the blockchain, it can be any existing digital assets or valuable information, the existence of a reliable proof, as well as various forms of real assets registration or transfer. Applications in this field may include property rights, Copyrights, notarization and many other fields.

difficulties faced by digital assets at the current stage

high transaction costs

Because of the existence of centralized operation subjects, centralized exchanges will generate high transaction costs, which will be doubled from the users. The transaction costs of centralized exchanges are mainly determined by market supply and regulatory policies. It can make rate adjustment rules according to operational policies. They may not even charge a trading fee to encourage HFT, but they usually charge a fee for extracting assets. Most exchanges use IOU accounting. The hanging orders and transactions in the exchange are recorded by the platform’s IOU, so the transaction cost is very low technically. IOU: short for “I OWE YOU.”

extremely low application efficiency

Bitcoin and most blockchains are designed to only consider transactions, and do not support the definition of other assets or the complex trading logic that defines them. If you want to add new features, you have to upgrade the system, but the difficulty is that a completely decentralized system, like bitcoin, any change needs to be agreed by the community, and rapid change is very difficult.

Most of the changes themselves are unnecessary or non-consensual, because more flexibility often means more complexity and less stability. Given the diversity of actual needs, and even the fact that some of them conflict with each other, blockchain is destined not to meet all of them at once.

centralized anti-rule control

Currently hot block chain field, a group of early investors accumulated to the first bucket of gold, the wealth effect brought a large number of new investors, most of these investors and no investment experience and good judgment, coupled with the current various countries not related regulation, make a lot of banker can malicious manipulation of currency price, a currency but there were as many as several times in a day of gains or losses, moreover 1500 times in a day or, in the secondary market constantly complete harvest, behind the high volatility, speculation, money laundering and corruption caused the attention of all countries.

isolation from real finance

The traditional financial system’s resistance to the rise of digital finance stems from the fear of “financial disintermediation”. “The culprit of financial disintermediation” is not the Internet and blockchain, but the low efficiency of the original financial system. New technology is only the power of “financial disintermediation”.There are efficiency problems in any economy. Only in an environment with a high degree of marketization and the introduction of sufficient competition can market participants actively seek improvement. In an environment full of “financial repression”, financial resources are not allocated exactly in line with market mechanisms — those who need them most and can create more value than others will have priority access to them.

Instead, it is distributed according to the dynamic mechanism — according to the degree of the distributor’s control over resources and the relationship between the object of allocation and the distributor, which leads to the natural rejection of the improvement of efficiency. The more severe the “financial repression”, the stronger the desire of

“financial disintermediation”, the stronger the resistance to innovation.This also means that once “financial disintermediation” is achieved, its scale and influence are unprecedented.Although they are substitutes of traditional finance, Internet finance is a gradual change, realizing “financial semi-disintermediation”.Blockchain technology is a disruptive alternative that could be the end of “media finance”.The era of sitting on the back of a monopoly will be a thing of the past.

the rising trend and timing of digital finance

calculability of credit

Blockchain is the underlying technology and infrastructure of bitcoin. Bitcoin is a peer-to-peer electronic cash system that does not rely on any third party. Through cryptography, satoshi nakamoto has built a very sophisticated economic ecology. It solves the problem of how to build reliable value transmission system under distributed structure.

Shannon was the originator of information theory. He solved the key problem of “how to define information by mathematical method”, which allowed quantization of information in bits and accurate calculation, thus laid the theoretical foundation for digital communication. The birth of blockchain technology solves another huge problem – how to use mathematical methods to define credit.

In the field of economics, credit, as a risk factor, is defined as the subjective probability level that one subject evaluates the specific actions taken by another subject. Different scholars hold different views on the premise of establishing credit relationship.

Credit problems can occur when there are different options. When a subject faces the risk that the other party has a high probability of

cheating, it is the occasion of credit. In this sense, credit is a behavioral strategy, and the choice of behavioral strategy seems to be calculated from the perspective of mathematics and games. It is easy to think that credit is the dominant behavioral strategy as long as the product of potential gains and the probability of credit activity is greater than the product of potential losses and the probability of untrustworthy actions. In 1990, Coleman presented this calculation algebraically.

Although many scholars hold the view that credit can be calculated, they also give different concepts and methods of credit calculation, but they cannot solve a problem, and the operability is not strong. In his article, another Nobel prize-winning scholar Herbert Simon pointed out that, in the final analysis, people are limited rational social animals.If we consider the diversity of social environment and the fact that individuals are not absolutely rational, then we will find that the so-called credit is not a simple calculation concept, so the credit behavior at the social level can not always be simply reduced to the interaction between the subjects based on calculation.

Or we could say that credit is not uncomputable, but we just haven’t built an environment or system that can accurately calculate it.

Blockchain technology offers a promising solution to this problem.

blockchain credit expression

The definition of credit is not to calculate the credit of a person or a participant, but to calculate the credibility of a credit action, such as a transaction. Or calculate the likelihood of future defaults (frauds). The lower the probability of default, the higher the credibility of the behavior; Conversely, the higher the probability of default, the less credible the behaviour.

From an economic perspective, the obstacles to solving this problem actually stem from the fact that the costs and benefits of violations

cannot be accurately calculated before they occur. Blockchain is an economic system built with mathematical algorithms. It is a system that is open and transparent to everyone. In the blockchain, the cost of breach (fraud) and the expected benefits can be accurately calculated.

The credibility of credit behavior can be defined as the ratio of default cost to default income (credit behavior confidence = default cost/default income). This formula can be used to derive precise results for any transaction that takes place on a blockchain.

It’s been seven years since bitcoin was born. No serious fraud occurred without any credible third-party guarantee. The main reason is that the costs of fraud are often far greater than the expected benefits. This is also in line with the calculations and predictions made by Satoshi Nakamoto when he created the blockchain. Obviously, when the cost of fraud is much higher than the benefit, and the cost and benefit can be accurately calculated in advance, any rational participant will not have the incentive to cheat.

value Internet

Information asymmetry refers to the information owned by the parties involved in the transaction that can guide the transaction decision.

Generally speaking, the seller has more information about the transaction item than the buyer. With the advent of the Internet, a new generation of communication channels and almost instantaneous transmission speeds have made it easier for people to get the information they want. Today, the Internet has a profound impact on the business world precisely because it breaks down information asymmetry.

But the Internet is far from complete in breaking down information asymmetry. Traditional Internet only has unified information transmission layer, without unified value transmission layer. When

trading (value transfer), you still need to rely on a large number of intermediaries to ensure that the value is safely stored and transferred. The existence of these intermediaries not only reduces the efficiency of value transmission, but also increases the cost of value circulation.

The establishment of a unified value communication Internet, or value Internet, is the inevitable result of the development and evolution of blockchain. The value Internet would eliminate information asymmetry altogether, allowing the value of money and digital assets to be digitized without the aid of numerous intermediaries. Digital assets can circulate freely around the world. Market efficiency will achieve a qualitative leap, or even completely change the current financial and economic landscape.

basic protocol and hierarchical structure

Essentially, the Internet is a decentralized network like blockchain, with no “absolute center.”The difference is that the Internet is an efficient information transmission network, it does not care about the ownership of information, there is no inherent protection mechanism for valuable information. Blockchain is a protocol that can transfer ownership and will build a new basic protocol layer based on the existing Internet protocol architecture. From this perspective, the blockchain (protocol) will become one of the next-generation Internet infrastructure protocols.

It should be recognized that blockchain is a complex system with multiple levels. Just like the hierarchical structure of the TCP/IP stack, different layers host different functions. People developed various application layer protocols on the basis of unified underlying protocols, and finally constructed a rich and colorful Internet.

In the future, different levels and different types of blockchain will play different roles. We believe that in the future, blockchain will also

develop various application layer protocols on the basis of unified underlying protocols, so as to build diversified ecological value Internet.

development curve of disruptive technologies

Change often prompts people to abandon prejudices and think anew.

The rise of blockchain will overturn most people’s inherent cognition. People lack exponential thinking. For the development of new things, we often misjudge, overestimate their short-term effects and underestimate their long-term effects. Like the dot-com crash of 2000, the Internet was supposed to change everything, and millions of people sought it out. Suddenly, everyone found that the Internet was not so magical, and they all left. The concept of the Internet fell from the cloud into the mud. However, how many people can think that just a decade later, the Internet has changed the human business model, financial industry and way of life in a devastating way.

distributed storage

Worldwide well-known IPFS distributed storage network protocol has appeared A lot of pain points, such as the real storage is not distributed storage but crossed superposition type, such as A, B, C three IPFS network access to the device for file storage, X files are stored in A and B two devices, storage of files stored in B and C Y two devices, if there is something wrong with the B equipment, are these two files will appear because of the imperfect and effect to use. To achieve the real distributed storage, the first thing to do change from the file format, and deal with this reform is a private cloud network distributed storage server, and file processing for cloud service demand is higher, the cloud service must first have three processing technology, high compression, file decoding transcoding technology, Hash fingerprint technology, Descartes cloud service will have these three characteristics, Descartes cloud service files can be compressed at high magnification, and then the compressed package decoding into more than 256 k file, then each file by decoding the transcoding convert it into multiple Hash value,

1.5.6 private cloud network

Private cloud network, the full name of private cloud distributed storage network, it is a focus on safety storage way of invisible web, based on building block chain technology, the invisible network is open source, in simple terms, the network parallel to the Internet, the Internet, now also is parallel to the current network IPFS interstellar file transfer system, because in the Internet age development to the present, a lot of pain points are also increasingly prominent, so private cloud network was born, and anyone can be a part of the network host, the network was born without source, Descartes had also been trying to find the source, However, due to the bottleneck of the current Internet technology has not found the real source of the network, so we can temporarily understand the founder of the network as “satoshi nakamoto”. On the other hand, the owners of this private cloud network can, for the time being, be understood as a global consensus of device owners for hardware storage and data processing.

 

Introduction to Descartes Project

why Descartes?

Innovation of project technology

Although cross-chain technology is well known, no project has yet been universally recognized and used by the community, so it is regarded as immature technology. In terms of stability and security, it is still not comparable with the traditional public chain technology. Some projects put forward cross-chain or side chain as the solution, but few promote the landing.

Possibility of technical realization

The key to analyze this project is to see the feasibility of its technical implementation. The implementation of cross-chain technology requires complex mechanism design and cross-chain intelligent contract programming ability. The key to an investment project depends on whether the project can run stably under the cross-chain technology.

It has obvious advantages compared with similar projects

Although only a few projects landed, it can be seen that projects using cross-chain side-chain technology are usually similar mechanisms.

What makes a project stand out is its technical stability and project schedule.

Design of economic incentive model

Whether a project can develop in the long term, we should first carefully examine its economic incentive model, whether it is enough to support the initial cold start of the community, whether it can continue to encourage absenteeism and participation in the development, and constantly improve the overall value of the project, and form a positive feedback ecology in the later stage.

Community operation ability

In the long run, the speed of project development depends more on whether the team has community operation ability and whether it can form network effect through the community and increase the number of project users.

Whether the service quality can reach the commercial level

Storage reliability, service availability, ultimately need to be verified by the actual market demand. Currently, most cross-chain projects and applications are far from commercially available. How to design the right smart contract. Projects that come up with great solutions are bound to be leaders in the industry.

what is Descartes?

Descartes wants to establish a super public chain in the era of digital finance, hoping to break the isolated dilemma of the independent and closed value island of each

block chain and solve the problem of incompatibility between traditional finance and digital finance. Descartes provides perfect financial function, supports recording

metadata, fully releases the liquidity of various assets, and explores the potential value of assets. Descartes is becoming the key infrastructure linking the whole digital currency world with the traditional financial world, promoting the flourishing growth of the global digital finance ecology.

logic and methods

Blockchain technology has been proved to have great potential in many fields, such as finance, information management, distributed network and storage, asset

management, government administration… But so far, real-world business systems have not adopted the new technology quickly. There are many possible reasons. From our point of view, there are three main problems:

1. Lack of scalability: today, the world’s largest Internet companies, for the rapid increase of data every day and transaction information, data and trading volume is too big, will cause the network congestion and congestion makes the network service become slow and 䀚 expensive, according to the current block formation rate, service business level application is also very far away.

2..Insufficient connectivity: each public chain must design a complete economic system, miner ecology, native currency, DApps and so on before going online.Every existing public chain is an island of digital

assets, which cannot communicate with each other. Even if it is feasible in theory, it is very difficult to transfer and pay digital assets between public chains in practice. The

lack of cross-chain interoperability is a major obstacle to the widespread adoption of blockchain technology.

3..Availability is not high, the existing Internet service in computing, storage, network bandwidth of several main aspects have been able to meet the demand of most human information processing, but block chain Internet limited computing and storage capacity, at the same time in the standardized protocols, programming language system, the development framework, application from several aspects, such as ecological is very junior, temporarily difficult to load all the traditional Internet business.

The most urgent of the above three problems is connectivity. In order to realize the free transfer, exchange and payment of various digital assets, the bottleneck of cross- link communication must be solved. The second is scalability, and the last is usability. Improving usability is a long-term infrastructure work, and the traditional Internet does not reach today’s technology level in a short time. The industry’s leading

technologists, as well as Descartes’ research and development team, have devoted themselves to these three problems.

technology development path

If you don’t understand the past, you can’t understand the present and you can’t control the future. In September 2016, Vitalik Buterin published the Chain Interoperability study, which summarized three Interoperability technologies:

The early cross-chain technologies are represented by Ripple, BTS, Cybex and BTS. They focus on asset transfer. Adopt the notary technique.

The second cross-chain technology is divided into two directions. One is the side chain, represented by RSK, Bytom and Lisk, which anchors the main chain Coin and solves the extensibility of the main chain. Second, Relay, represented by BTC Relay, Polkadot, Cosmos, focuses on cross-chain infrastructure.

The third cross-chain technology is hash locking, represented by the lightning network, which aims to improve the off-chain transaction processing capacity of the bitcoin network and is the most widely used technology at present.

Types that communicate across chains

        • Centralized or multiple notary mechanism, when A group of trusted participants in A chain of events at the same time, on the B chain to perform the corresponding operation
        • Side chain/relay: a built-in blockchain can verify and read events and/or state systems in other blockchains
        • Hash locking: the hash value of a random number set to operate between chains, usually in the plaintext to be disclosed.

Notary mechanism

The simplest technical way to facilitate cross-chain operation is to use a notary mechanism; According to Vitalik’s definition, the notary mechanism is:

A trusted individual or group of trusted individuals declares to the X chain that an event on the Y chain did occur, or that a statement on the Y chain is valid.

In a notary mechanism, a trusted entity or set of entities that is trusted as a group is used In order to claim to chain X that a given event on chain Y took place,

These trusted individuals can actively listen and automatically trigger actions based on events in some chains, or passively call and publish signed messages. Simply put, it is the transfer of assets across different chains through a third-party “connector” or “verifier” that transfers money freely to and from each other. Typical examples are: the Interledger protocol implementation process:

  1. Notary election: the notary is chosen by the participants;
  2. Initiate proposal: the initiator initiates the proposal, and all participants verify the ledger;
  3. Preparation: transfer of accounts through escrow. The initiator first authorizes, the connecter in turn manages;
  4. Execution: the participant signs the transaction receipt and submits it to a notary, who confirms the transaction through a Byzantine agreement

Relay technology

Instead of relying on trusted intermediaries to convey information between chains, a more direct way to facilitate cross-chain communication is through relay chains. Specific implementation process:

Side chain/relay technology is based on the new chain to achieve the anchor on the main chain of the token, so as to achieve asset transfer, transaction verification and information exchange functions. Typical representatives are BTC Relay, Polkadot, COSMOS, etc

  1. Main chain transaction: the main chain initiates a cross-chain transaction, indicating the target chain, the amount and the address of the receiving party
  2. Side chain monitoring and verification: side chain receives the event and conducts main chain authentication for the transaction. Using the light client protocol, the block header is read and the Merkle tree is used for cryptographic authentication transactions
  3. The side chain produces the corresponding assets for circulation
  4. In the opposite direction, the asset is returned to the main chain by destroying the asset

Hash lock

In addition to the above techniques, there is another technique for intercommunicating atomic operations across blockchains without having to know much about other chains. Sets up interchain triggers that operate on each other, usually hashes of random Numbers in clear text to be exposed. The redemption mechanism works by locking the original hash value for a period of time. Hash locking originated from the bitcoin lightning network. The following is a case study of cross-link digital asset exchange to illustrate the implementation of this mechanism:

  1. A generates random number S and sends hash(S) to B;
  2. A locks the asset and sets the conditions: if A receives S within 2X time, it will be transferred to B; otherwise, it will be returned to A.
  3. After B confirms the lock and time setting of A, it locks the asset on B and sets conditions: if B receives S within X time, it will transfer to A; otherwise, it will be returned to B.
  4. A reveals S within X seconds in order to claim assets from B’s contract;
  5. B learns that S allows B to claim assets from A’s contracts

The atomicity of the mechanism is provable. If A reveals S in X seconds, then at least X seconds of window can be provided for B to declare their assets. A may have made A mistake that delayed the disclosure of S and prevented him from retrieving the asset, but this is often A’s own mistake and can be easily avoided. If A reveals S between X seconds and 2X seconds, then A can’t get his assets, but B can, which is also A’s fault; If A after 2X seconds doesn’t even reveal S, then both A and B get their assets back. If A doesn’t lock its assets, then B doesn’t lock its assets. If B does not lock his assets (or fails to do so within A specified period of time), A can choose not to reveal S so that A can retrieve his assets.

Descartes cross-chain solution

Traditional assets transferred to the chain of the world and across the chain of communication is essential, but it is not easy to achieve, because each chain has its own network protocol, communication mechanism, standard and agreement and the module is still in perfect, want to move the balance between these chains, we try to relay system, notary technology, exchange of atom, hash lock technology, etc., the

purpose is to find a concentrated solution, developers, users, miners and all other parties to achieve the pareto optimality. All the explorations converge in one direction, that is, how to safely

authorize multiple untrusted nodes to jointly operate a digital asset account, which is also the core technology of cartesian cloud melting chain.

        • Secure digital assets
        • Support cross-chain intelligent contract programming
        • High robustness
        • Real-time processing and response for large-scale financial applications
        • Under the condition of satisfying the scale expansion of the system itself, the computing pressure of cloud server nodes is not increased
        • Cross-chain asset transfer
        • Trading across the chain
        • Separate ownership and use rights

According to the above requirements, Descartes’ research and development team to integrate academic frontier theory, developed by

* * Distributed private Key generation and control technology, which we call DKSC (Distributed clustering technology Distributed Key security Key Secure Cluster), the original is generated by DKSC chain lock on the account, do not need to use the two-way anchor method, also do not need to add script extension to identify and verify the original of SPV in the chain of evidence. When the transaction data is transmitted back to the original blockchain network, it is a legitimate format in line with its communication standard and network protocol, and the core process and calculation of cross-chain transaction are fully integrated into the cartesian chain. There is no need to change the mechanism of the original chain, so no matter the existing public chain or private chain, the alliance chain can be connected to the cartesian chain at a lower threshold. Reduce the cost of cross-chain transactions and freely map assets on each chain.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

DKSC distributed key security clustering technology can safely transfer the control of digital assets from individuals or organizations to a completely decentralized blockchain network. Key generation and storage procedures are distributed, and no single node can obtain a complete key. The security of control rights of digital assets is

guaranteed, and the security of digital assets is guaranteed. The operation of releasing control is called Release, and all key-controlled digital assets can be distributed and mapped through Release. The action to Recycle control is called Recycle, which is the reverse of Release to help users Recycle control and Release the asset map.

key technologies

High connectivity network clustering algorithm

At the bottom of the blockchain is the P2P distributed network. The communication feature is non-periodic communication. Any single node has the right to broadcast all over the network. The second is security: how to determine whether a node is honest or malicious.

Cartesian financial chain is different from traditional network communication method because it USES clustering algorithm which USES the inherent characteristics of triangle to ensure connectivity. Through this algorithm, a highly connected backbone network is formed in the network, reducing the network routing table overhead and communication overhead of the whole network.

The implementation process is such that, before deploying the nodes, the nodes are specified by the system. The network message is initialized by broadcasting, the whole network is initialized, and the clustering algorithm is started by it. When a node exists for more than a period of time and the number of adjacent cluster heads does not reach 3, the node enters the supplementary node and requests to form a cluster, so as to ensure that any non-cluster head node in the whole network is within the communication range of 3 cluster heads. Thus forming a highly connected backbone network. As time goes by, the cluster-head node consumes too much energy. When the energy of the cluster-head node is lower than a certain value, the cluster-head node will be replaced to maintain the normal working level of the network.

This technology can solve the problem of not increasing the computing pressure of cloud server nodes while satisfying the expansion of the system itself.

The following is the core algorithm, and some symbols need to be used in the algorithm description, as shown in table 1 :(I is the node of the current broadcast GCM message

DKSCA (distributed key security clustering algorithm)

Since the public chain is open to the public, malicious nodes can not be excluded to join the network. Descartes adopts a secure clustering algorithm to realize the generation and management of distributed keys. The implementation process is as follows: after all the cluster heads are formed, the broadcast cluster message contains its own public key, the node that receives the message saves its public key to ensure that the node has the public key of the cluster-head node within one hop in the whole network. Before deploying the system, randomly select some public key stores from the key pool.

The authentication of a node is divided into four stages, and two pieces of broadcast messages need to be received before the node can process and forward them. The protocol initiates the authentication message broadcast by the cluster-head node, which enables the three cluster-head nodes around it to communicate with each other to initiate the protocol and enter the key search stage. When the key is found in the network, the key is returned according to the arrival path, and then the reply stage is entered. When the protocol initiates the cluster-head node to verify the signature and meets the initial threshold value in quantity, the broadcast key confirms the message and the protocol enters the confirmation stage. In the whole process of the implementation of the authentication protocol, if an abnormal situation is found, the protocol will be immediately terminated to prevent the attack of malicious nodes.

The following is the core algorithm, and the symbols used in the description of the algorithm are shown in table 2

Network security

Network security threat mainly comes from malicious node attack. Regardless of whether the attacker knows the key pool information or not, if he wants to pass the cluster-head node authentication, he must know the ID of the common node and the corresponding private key information of the ID. Since there is no direct relationship between the key pair and ID, and the attacker knows at most the public key information in the attack, it is impossible to calculate the private key from the public key. Therefore, it is guaranteed that the attacker cannot obtain the private key through the public key, so that the attacker cannot forge a node with a specific ID number to communicate.

Application security

Managing digital assets is, in effect, managing private keys. Taking bitcoin as an example, the essence of the private key is a random number. The private key algorithm of bitcoin is to generate a 256-bit random number by running SHA256 operation on the random number. The private key in the form of WIF(Wallet import Format) can be obtained by prefixing the version number, adding a compression flag and a checksum, and Base58 encoding. The public key is generated by the private key through the elliptic curve algorithm, and the bitcoin address is generated by the public key through the hash function (RPIEMD+SHA).

The key is stored entirely in one place, whether it’s a person’s computer hard drive, a third-party server that provides wallet software, or an exchange server. Once a hacker attack, key leakage, loss or third party theft, will cause the loss of users.

DKSC technology not only solves the cross-link communication problem, but also improves the security of digital assets, which is reflected in two aspects:

  • Key shard

The complete key is divided into sections, each of which is called a fragment. The shard keys do not need to be reorganized from generation to storage and use, so that the complete private key does not appear anywhere and at any time.

  • Distributed storage

Distributed storage refers to the distribution of the shard keys to different nodes in the decentralized network. In the process of distributed storage, each node will only touch one sharding of the key, and any single node or several nodes cannot recombine the key by several sharding, so as to reduce the risk of key leakage. Distributed key storage method can completely avoid the third party malicious occupation.

mixed consensus mechanism

The PoW consensus mechanism represented by bitcoin is simple and effective, but there are two major problems:

  • High latency

The average confirmation time for each transaction is up to 10 minutes, with a maximum of 2-digit concurrent transactions per second supported

  • Waste of resources

Any consensual mechanism based on the no-license model requires additional hashing power to ensure security, and the average confirmed bitcoin transaction costs $6 in electricity as of press time.

Cartesian cloud melting chain adopts Hybrid Consensus mechanism, which solves the above two problems:

  • High speed processing

The maximum transaction speed on a blockchain depends on the network transmission rate, and there are no visible limits

  • economies

The transaction is confirmed by a group of nodes with very low energy consumption

The mixed consensus mechanism of cartesian cloud melting chain fuses PoW and PoS and operates in layers. At the bottom is the PoW miner, responsible for confirming the transaction information and generating blocks; At the top is the PoS miner, which packages the transaction records and presents them to the PoW miner.

Each node determines that it belongs to Pow miners or PoS miners by running a random algorithm. This process is completed automatically without system intervention to ensure that the election mechanism is fair and credible, and the election is repeated every 24 hours. All PoS miners can realize the parallel processing of transaction information of the whole network through clustering technology. The transaction information processed by each cluster is not intersected with each other, which greatly improves the transaction processing capacity of cartesian chain and provides basic support for the deployment of large- scale financial applications.

anti-asic algorithm

The blockchain system is run by miners, who verify transaction records, make and store all the blocks, and agree on the blocks written into the blockchain. The essence of mining is to use chip to solve the incomplete hash function. The result of this algorithm is not a value, but an interval, the result of the chip operation was in this range, is regarded as mining success, when many chips to participate in the operation success becomes a probability problem, in general, in a unit time, computing the probability of the existence of a qualified, the work force is

proportional to the contribution by the chip. The mining of the first generation of miners was completed on the ordinary computer, that is, the CPU was used for calculation, and the CPU dealt with the problem in a linear way, so the miners could only simply try all the temporary random Numbers in a linear way. At present, it is not profitable to use the CPU of the ordinary computer for mining. The second generation of miners, realizing that cpus were useless, started using video CARDS or graphics processors (gpus). The GPU has high throughput and high parallel processing, both of which are very beneficial for mining. There is a large amount of parallel processing for hash solving, because you need to calculate multiple hash values with different temporary random Numbers at the same time. But GPU mining has a number of drawbacks, including a lack of cooling equipment, and the fact that gpus are so power-hungry that they force you to spend a lot of money on specific motherboards that can carry a lot of graphics CARDS. The third generation of cloud systems emerged in 2011 and is called field- programmable Gate Array (FPGA).The working principle of FPGA is that users can debug or modify the hardware parameters on site while pursuing the best performance of customized hardware. In contrast, commonly used hardware is designed before it leaves the factory, and cannot be customized after it leaves the factory, but can only do the same work forever. FPGA has better performance than GPU and is easier to cool, but because of its high operation threshold, it is not easy to buy and has a short history in cloud services. Today’s mining market is dominated by ASIC (application-specific integrated circuit). These IC chips are designed, manufactured and optimized for the sole purpose of mining. The emergence of asics has led to the shift of mining from the private sector to large professional mining centers. In order to maintain a competitive edge, these mining companies purchase a large number of updated ASIC cloud services with higher performance rather than those that can be sold directly to individuals. The existing cryptocurrency based on the POW consensus mechanism has been far away from ordinary users, and only by purchasing a dedicated ASIC cloud service can they participate in the mining and get rewards. This

gives rise to the situation of “latecomers coming ahead” and “capital leading”, which is not conducive to the popularization and development of digital currency in the long run. Cartesian chain hopes to change this situation, we design an anti-asic algorithm. Attract ordinary users to participate in mining, do not need too much hardware investment, can be satisfied with the reward, at the same time to avoid the formation of hardware arms race, a lot of money invested in the upgrading of computing power competition, for the project side and participants are meaningless. Existing puzzle solving algorithms (such as sha-256) take up only 256 bits of computation and can easily be put into the CPU’s registry, which provides the basis for designing specialized mining equipment. Instead, we turned up the computation module so that it could not be easily put into the CPU and had to calculate with a large amount of memory. This method is called memory-hard Puzzles.

This puzzle solving algorithm requires only relatively simple computational power but requires a large amount of memory, which means that the cost of solving the puzzle will increase at a relatively low level as the memory speed increases. There is no need to worry about someone suddenly having more than 51% of the computing power to attack the entire web.

application scenarios

convenient payment

Application – payment card

A growing number of merchants are accepting digital assets such as bitcoin as payment methods. For users, they have gradually become accustomed to and dependent on electronic currency. Bank CARDS have become a tool for users to identify and participate in the transaction process. Digital currency is a substitute for electronic currency. Therefore, cartesian chain launched digital currency payment

card (referred to as digital payment card), which is a blockchain financial service perfectly integrating digital assets and bank CARDS.

Descartes melt cloud chain holding several users only need to pay card, can brush calorie of consumption, in any parts of the world business card reader is a cluster node (PoS) miners, able to handle the deal immediately, packaged trading

information submitted to the nearest PoW miners, mean the deal is added in the

latest generation of block information information, complete the confirmation, the whole process in 1 seconds.

The figure above shows the internal structure of Descartes digital payment card, including coil, NFC interface chip, digital encryption chip, MPU microprocessor and digital currency memory module.

The user’s digital asset private key is stored in the digital payment card, and the security is very important. The security of ordinary magnetic strip bank card is very low, and a cashier can copy the bank card information to create a duplicate card. In recent years, Banks have added EMV chips to debit and credit CARDS. Hope to provide additional security for card transactions. At the recent black hat computer security conference, security researchers from NCR demonstrated that EMV chipcards can be as easily counterfeited as magnetic stripe CARDS.

The digital card USES MPU encryption + ASIC encryption, and the data is stored in the dedicated storage module in the form of ciphertext.

Even if an intruder gets data from the data bus, it is not possible to know the key or other sensitive information. Such protection measures can effectively prevent invasion and semi-invasion attacks. Each card bus encryption key is different, so a chip with the same key cannot be generated even if the intruder completely cracks it. Since each debit card chip has a unique ID number, you cannot purchase debit CARDS with the same ID number. In terms of circuit design, the digital payment card will use ASIC class logic to design standard module structure, such as decoder, register file. This design method is called mixed logic design. The mixed logic makes it nearly impossible for dishonest users to physically attack by manually looking up signals or nodes to get information about the payment card. It greatly improves the performance and security of MPU kernel. The card reader of digital payment card adopts DKSCA algorithm to realize end- to-end encryption. Any transaction information sent by forged card reader or maliciously tampered card reader will not be confirmed.

The specific principle has been described in detail in the section “2.3.3 key technologies”.

Digital payment card adopts NFC near field identification technology, which enables users to easily recharge their mobile phone in support of NFC, set double verification (fingerprint, face recognition), and add mainstream digital assets. It does not need to install multiple digital currency wallets, and truly achieve one card in hand and go around the world.Payment transfer, second level confirmation, cash back consumption, each expenditure is discounted.

credit lending

Application – chain credit

As digital currency becomes a broader medium of exchange and a more important store of value, it is an inevitable trend to use digital currency to create new value and obtain corresponding income, just like investing bitcoin in “mining” and investing in other blockchain projects like ICO. With the increasing application range of digital currency, there are more and more fields and opportunities to invest directly in digital currency (no need to convert into legal currency, and the return on investment is also denominated in digital currency). Those who make use of digital currency to create value need more digital currency, those who hold digital currency need to maintain and increase value, and the demand for borrowing and lending business of digital currency will be more and more. Cartesian financial cloud chain supports institutions or individuals with credit and financial capacity to complete the deposit and loan business as the supply and demand intermediary of digital currency. In the etheric currency, for example, implementation is a mediator in the chain of Descartes melt cloud applications using smart contracts create deposit interest, and set the etheric money deposited in the party through the chain mechanism of putting the etheric fang on currency into cartesian melting cloud intelligent contract correspondence address on the chain, Descartes melting of cloud chain deposits intelligent contract issue corresponding to this certificate of

deposit (Descartes cloud token on the chain, similar to a bank certificates of deposit) to Descartes melt cloud chain in the user’s account, intelligent automatic computing interest contract. When the user needs to withdraw the ethereum deposit, the certificate shall be transferred back to the intermediary address. The contract shall execute cross-chain transaction and the ethereum currency corresponding to the certificate shall be unlocked on the original chain and transferred back to the original user’s account. An important advantage of this scenario over the traditional model is that the deposit reserve (the original chain of locked assets corresponding to the intermediary address of the intermediary) is always transparent and the depositor is always aware of the deposit reserve.

transaction exchange

On behalf of app — rongyun coin

Currently, the exchange of digital currency mainly relies on centralized exchanges and over-the-counter trading intermediaries. All transactions are based on trust in exchanges and intermediaries. After the multi- currency is connected to the cartesian cloud chain, exchanges or intermediaries can realize multi-currency bidding trading and one-to- one over-the-counter trading through smart contracts. The transaction mechanism providing privacy protection on cartesian rongyun chain provides support for transactions with privacy protection needs. The digital currency without privacy protection is introduced into the cartesian rongyun chain, and privacy transaction is initiated in the cartesian rongyun chain. Finally, the digital currency is transferred back to the original chain. To some extent, the privacy protection of the original chain is realized by cutting off the fund tracking path. This usage scenario is similar to the earlier mixed currency model.

artificial intelligence

C is for applications — the hive

Artificial intelligence is like a monster that needs very large data to feed, so the source, quality and privacy of data are urgent problems to be solved. The smart contract in the blockchain can protect the privacy of data owners and users through physical isolation of data. In terms of computing power requirements, on the one hand, the high performance server of artificial intelligence is very expensive, on the other hand, the update iteration of the server is very fast, which is a huge cost for all artificial intelligence enterprises. Therefore, blockchain technology can help the whole industry to reduce computing cost and improve computing efficiency, so as to achieve the goal of lowering the threshold for ai enterprises.

In terms of artificial intelligence, cartesian rongyun chain aims to build a benign ecosystem through blockchain and unique technology, promote resource sharing, and inspire more people to participate in the development and implementation of intelligent applications. To promote the development of artificial intelligence in a credible and reliable environment; Let the privately generated data be transformed into a more precise service for everyone.

Wisdom is honeycomb is driven by chain block technology of artificial intelligence computing platform, mainly to help enterprises solve global artificial intelligence industry pain points: lowering the cost of work force and protect the privacy of data aims at providing a more sophisticated AI applications with a common block chain platform, can let the data resources, application developer divide, platform resources and users in this block chain free distribution and use their own resources and application

asset management

Representative application — digital hengsheng digital information platform

We have seen the trend of traditional assets mapping to blockchain in the form of alliance chain, such as commercial paper, business points, future earnings, accounts receivable, etc. In the future, more financial assets will be recorded in the form of distributed ledger based on the alliance chain. When these alliances are linked to the cartesian cloud chain, the alliance chain becomes the provider of financial assets, and the holders of digital currency can use their digital currency to buy these assets for investment. Similar to the traditional banking business, this is similar to the purchase of wealth management products in the bank. The difference is that more intermediaries can get involved, or asset holders can finance assets directly.

ICO has become an important means of crowd-funding in the field of blockchain, and this trend is spreading to non-blockchain fields. More and more projects, especially those based on ethereum, directly use smart contracts for ICO. The whole process is more transparent and fair, but only use ethereum for crowdfunding, which causes inconvenience to investors holding other digital currencies. ICO platform developed based on Descartes rongyun chain, or individual ICO project, the issuer can support multi-currency investment while issuing with smart contract. Investors can more convenient with the etheric fang, COINS, or any other connected with Descartes melt cloud chain block chain tokens, sponsors can be more convenient to manage their money raised further, when project launch, as long as the new block chain access Descartes cloud chain, through the chain mechanism can easily complete the raise share with native currency conversion. With the cartesian rongyun chain, we will enter an era of whole-process blockchain-based digital equity issuance.

Digital hengsheng is the blockchain breakthrough financial ecosystem that defines protocols for financial products based on cryptocurrencies.The platform has intelligent contracts, borderless leverage, financial products (fixed income, market index, binary options, futures, leveraged ETF), and sunrise ecosystem provides investors with a comprehensive financial market, full of financial products, services and applications to meet their investment needs.

insurance contract

On behalf of the application – security

Traditional insurance giant numerous problems, premium users are not used to pay more than 70%, but as the profits of insurance companies, business commission and a series of unnecessary costs, if you can to get rid of the centralized business, users will be able to spend less money or more services and pay, at the same time, also avoid the overlord provision of insurance company. The decentralized mutual guarantee insurance contract platform is to establish an intelligent guarantee contract market based on the block chain technology, and replace the centralized traditional insurance model with the disintermediated mutual guarantee model. On the platform, anyone in the world can get a smart contract guarantee at a very low cost. Let the joining users realize mutual guarantee and risk offset, effectively reduce the operation cost of insurance guarantee products, and provide higher security of guarantee funds. Let the application for mutual aid users sick money doctor, the cost of sharing. Users who join the platform are both benefactors and beneficiaries.

decentralized exchange

Representative application — bitcoin exchange

Representative Application —— Coin Fusion Exchange The fungible digital assets are created by the general ledger of decentralized transactions, which is protected by DPoS. It has a verification speed in seconds. During transactions, the fluctuation in currency prices changes constantly; currency-to-currency transaction is like

swimming in the sea, non-stop. The assets can marketize and anchor the value of any item, such as US dollar, gold and gas, etc. Like all DACs, Coin Fusion enjoys the stock

rights transferred between users (similar to Bitcoin); it has implemented a business mode similar to banks or brokerage companies; it is distinguished from traditional centralized exchanges, avoiding a series of problems, such as high cost, bad security and malicious behaviors of exchanges, etc.

 

Processes and plans

Qualifications

Ukraine

Approved by Ministry of Finance and on Records of Ministry of Justice First Blockchain Company with Ukrainian Blockchain Financial License in the World

In 2018, Ukraine proposed a bill to define encrypted currencies including bitcoin as legal data that can be used to exchange goods and services. The first part of the bill defines encrypted currency, exchanges, trades, block chains, owners of encrypted currency and miners. The bill proposes that owners of encrypted currencies have the right to choose how to deal with their encrypted currencies, including for exchange with other encrypted currencies, electronic currencies, legal tender or goods and services. In January 2018, Ukraine’s National Bank of Ukraine (NBU) said it would ” consider” introducing a digital version of its currency. In may of the same year, ukraine’s national securities and stock market commission (SSMCS) announced that it would treat encrypted currency as a financial instrument, and subsequently issued relevant laws to recognize the legal status of general certificate data in the field of payment. Timur Khromaev, chairman of Ukraine’s State Power Market Committee, said that block chains, bitcoins, tokens and other technical solutions have become part of the country’s financial market. At present, only eight digital cash licenses have been issued throughout Ukraine, and only five projects including Descartes Rong Yun Chain have received this license. Having this license plate is not only the Ukrainian government’s affirmation of Descartes’ Rong Yun chain project’s efforts in the past few years, but also the encouragement and expectation for the future development of Descartes’ Rong Yun chain.

 

Pass issuance plan

Publishing 126 million of coins, all produced by mining: 70% for reward to miners, 10% for Descartes Foundation, 15% for operation cost, 5% for research & development cost.

 

Risk alert

Policy Risk: At present, the supervisory policies for blockchain projects and swap financing are not specific and clear, and there is a possibility that certain policies might cause losses of participants. Among the market risks, if the whole value of digital asset market is overestimated, the investment risk will grow bigger. The participants will have high expectations for the increase of swaps, and those expectations might be too high to be realized.

Risk inside Team: Descartes Chain has gathered a talented team full of vitality and strength, attracting senior practitioners of blockchains and well experienced technical developers, etc. In its future development, it is possible that Descartes Chain may be negatively influenced by the absence of core team members and the conflicts inside the team.

Risk Between Teams: Nowadays, there are many technical teams and projects related to blockchain. In this field, there are many fierce competitions and a lot of operation pressure. Whether Descartes Chain can become an outstanding and widely recognized project among all those excellent ones, it depends on not only the ability of its team and plans but also the influence of many competitors and even some magnates in the market, where there is a possibility that Descartes Chain may need to confront with vicious competitions.

Technical Risk of the Project: Firstly, the construction of the project is based on cryptology algorithm, so the development of cryptology will

bring potential risks of code cracking. Secondly, technologies, such as blockchains, distributed ledger, decentralization and tamper proof, support the development of core businesses, but Descartes Chain team cannot completely guarantee the landing of all technologies. Thirdly, during the update and adjustment process, there may be bugs, which can be mended by patches. However, the level of influence cannot be assured.

Security Risk: Talking of security, the capital of a single supporter is a small number; as supporters increase, the project requires a higher level of security guarantee for a bigger amount. Electronic tokens, anonymous and difficult to trace, can be easily used by criminals, or attacked by hackers, or involved with criminal acts, such as illegal asset transformation.

 

Disclaimer

The paper shall be regarded as information transmission for reference only. It shall not be regarded as any investment and transaction suggestion, instigation or

invitation of the stocks or securities sold on Descartes Chain or in relative companies. This kind of invitations shall be made in form of confidential memorandum, and they shall accord with relative securities laws and other laws. Any content of the paper shall not be explained as any compulsive force of participating in swaps. Any

behavior related to the white paper shall not be regarded as behaviors of

participation in swaps, including the requests for copies of the paper or the sharing of the paper with others. Participation in swaps indicates the participants have

already reached the legal age standard, with integrated civil capacity of conduct. All contracts between the participants and Descartes Chain shall be valid. All

participants should sign the contracts voluntarily, and it is necessary for the participants to have a clear understanding of Descartes Chain before signing

anything. Descartes Chain team will continuously take rational attempts to make sure the information in the paper is authentic and accurate. During the research and

development, Descartes Chain platform will be updated, including but not limited to platform mechanism, tokens and token mechanism as well as distribution of tokens.

The content of the paper can be adjusted in a new version, in response to the

progress made in the project. The team will release an updated content by publishing Disclaimer announcements or a new-version white paper, etc. Participants must obtain the latest version of white paper to adjust their policies according to the updated content.

 

References

  1. s. Nakamoto, “bitcoins: A peer – to – peer electronic cash system,” [Online]. The Available: https://bitcoin.org/bitcoin.pdf, 2008, accessed: 2018-01-22.
  2. g. Wood, “Ethereum: A secure decentralised generalised transaction gotten,” [Online]. The Available: http://gavwood.com/paper.pdf, 2014, ac – cessed: 2017-01-22.

J. Comput. Syst. Sci., 75(2):91{112, February 2009.

  1. k. Christidis and m. Devetsikiotis, “Blockchains and smart contracts for the Internet of things,” IEEE Access, vol. 4, pp. 2292 — 2303, 2016.
  2. Alysson Neves Bessani, Jo~ ao Sousa,
  3. Juan Garay, Aggelos Kiayias, and Nikos Leonardos. The Bitcoin backbonprotocol: Analysis and Applications. Cryptology ePrint Archive, Report 2014/765, 2014.

Ran Canetti and Jonathan Herzog. Universally composable symbolic security analysis. J. Cryptology, 24(1):83{147, 2011.

[8] h. Massias, X.S. Avila, and j. -j. Quisquater, “Design of a secure timestamping service with minimal trust requirements,” In 20th Symposium on Information Theory In the Benelux, May 1999.

  1. Ronald L Rivest, Adi Shamir, and David A Wagner. Time-lock puzzles and timed releases crypto. Tech-nical Report MIT/LCS/ tr-684,
  2. Herman te Riele. Security of e – commerce threatened by 512 – bit number factorization. Published at HTTP: / / www.cwi.nl/ ̃ kik/persb – UK. HTML, Aug 1999.
  3. Dennis Fisher. Experts debate risks to crypto, Mar 2002. Also available as http://www.eweek.com/ article/0,3658,s=720&a=24663,00.asp.
  4. Drew Dean and Adam Stubblefield. Using cleint puzzles to protect the TLS. In Proceedings of the 10 th USENIX Security Symposium, Aug 2001. Also available as http://www.cs.rice.edu/ ̃ astubble/cca shut.
  5. Hal Finney. Personal communication, Mar 2002.
  6. Thomas Boschloo. Personal communication, Mar 2002.


0 条评论

发表评论