Updated 07 June 2021.
Table of contents.
- 1- Introduction.
- 2- Definitions of terms.
- 3- Industry market overview.
- 4- Problems.
- 5- What are we creating.
- 6- How are we going to deliver.
- 7- Game play theory.
- 8- Economic logic.
- 9- How we work.
- 10- Roadmap.
- 11- Store of value.
The Blockchain technology has brought us the first transparent, secure, and decentralized cryptocurrency which is Bitcoin. It has opened the floodgates for innovative business solutions like the Ethereum network which is based on smart contracts. The problem we’re facing now is, this technology has not been adopted by businesses for real world applications due to the fact that it’s still ambiguous and quite cumbersome.
Smart contracts are based on cryptocurrency utility tokens. The major problem now is the ease of doing business with cryptocurrencies. As it stands, buying, transferring and exchanging cryptocurrencies with fiat money is a tedious and complicated process for a lot of users. The real-world usability problems associated with using cryptocurrencies have encouraged Ubinodes to tackle this challenge head on.
While a lot of businesses are not aware of this emerging technology, some are waiting to see what to make of it. As of 2016, Ubinodes has embraced it fully, rather than waiting for the technology to be wholly usable. We aim to structure our business in line with the Blockchain technology, while using parts of the technology that is available for public use. We intend to deliver an innovative User Experience to solve the cryptocurrencies usability/adoptability problem.
Before now, we initially tried to use the old fashioned centrally managed agreements to reduce the difficulty of doing business. The problem was how to form a unified ecosystem between consultants and manufacturers even if we defined the project plan for scalability.
Before the advent of Ubinodes, we were once called Love4aviation. Love4aviation was developed from the passion we had for the aviation industry. It was created in 2007 as an aviation importing company in New Zealand with more than a century’s worth of experience. We were able to expand the business to all corners of the world, working with companies in the US, UK, Germany, and France. In the process, we discovered that our passion exceeded the aviation industry. Beyond aviation, we had a passion for consulting and international trade.
As Love4Aviation, we began to focus on the services we weren’t offering our clients. We discovered that companies needed business consulting and international trade services, so we decided to take up the challenge and tackle the need head on. Hence, Love4aviation birthed Ubinodes.
At Ubinodes, we run various consulting projects which is used to form a network between consultants. An agreement is used to guarantee the legal trustworthiness of each transaction between nodes. The best part about everything is that several kinds of services can be offered to various clients which would lead to rapid growth. The existence of a distributed network greatly reduces the problem of development on Ubinodes. With this network, information can be relayed to different nodes, edge networks can be formed, resources can be effectively distributed and the progress of consultancy services significantly accelerated.
Ubinodes is designed as a scalable heterogeneous network that provides a platform for information and transactions on which a large number of verifiable and globally consistent consultancy projects can be built and structured through consensus. On the basis of this inter-networking trust, Ubinodes is committed to turning international business into a networking infrastructure which would positively impact people’s lives.
Due to various factors, manufacturers generally find it hard to source for funds. The extra costs incurred when rendering consultancy services only increases the manufacturer’s burden. Our solution does not just reduce their burden, we plan on creating a network of consulting experts that provides value to both consultants and manufacturers helping Ubinodes grow and expand organically and adaptively.
Adding new functions to an existing centralized entity is not easy, but in a distributed ecosystem, we can allow the various consultants to add their own functions and services, so as to gain additional revenue through an economic-driven model. As we know, the primary aim of a monopolistic system is to maximize profit, in this system consultants protect their intellectual property at all cost as it’s their mainstay.
In our new model, our aim is to drive consultants to share knowledge and their wealth of experience, and in return they earn profit or income through our distributed economic model unlike what you’d find in a centralized monopoly. Here, each consultant will provide a service based on their skillset, which would be useful in a project to a manufacturer or another consultant.
Services rendered could range from full time consultancy, writing, graphic design or a casual freelancer leveraging on Ubinode’s platform to showcase his/her services to those in need of it worldwide. Consultants are not in competition with each other, rather workload can be shared to achieve maximum results.
For optimum performance during business transactions, the distributed model we use is best. The traditional approach for consultancy has not solved performance problems entirely, so we employed the parallel chain and consensus access to solve them. You can find solutions to a problem on different chains or use a skill that can come in handy during a project. Therefore for each project, different methods are adopted but the flow of data and self-discovery is carried out through integrated consensus.
Data is transmitted through diverse ways depending on the immediate requirement of the project. Therefore, various IT tools and channels may be used during a project, each with their specific protocols and requirements. As the organization increases exponentially and levels of requirements change for each project, we improve accordingly by using real-time, reliable, automated information exchange tools, and automated financial transaction via decentralized networking. This decentralized network solution does not require large data centers for data synchronization and management control, instructions can be carried out through distributed networking.
The aim of consensus in this model is to achieve mutual understanding among nodes. The agreement that originates from consensus and can provide an efficient standard of service as long as all parties are honest in the event of any network defect. The network is deployed in an open and public environment, hence, we need a mechanism to manage the validation of new consultants and motivation for nodes to obey agreements. Ubinodes is designed to address issues arising from knowledge transfer in consulting markets.
It is a new platform based on Blockchain’s principles which are: decentralization, open source, immutability and efficiency. All parties can generate profit after a transaction and share with each other. As a transparent and open system, Ubinodes is expected to promote the development of consultancy, not by unifying chains but by the interconnection of different chains through a consensus based model and economic means, to form an effective and decentralized desk.
2- Definitions of terms.
A Node organizes the Ubinodes network, the entire network is made up of Nodes. These could be consultants, customers, developers, or any party that is involved in a transaction. Nodes are responsible for generation, validation and retention of transactions. Each node can create a message or signature that’s peculiar to it. We deliberately didn’t use the word agent so as to avoid any misunderstanding as the term is already in use in the conventional business world. Agents work on a commission basis, which is not the case for our consultants. The word node also helps visualize the organizational structure unlike “party” which is more abstract, and is commonly used for whitepapers with regards to entities that are outside the network. They only interact with a limited set of nodes within a timeframe and on a specific task.
An oracle is a node that finds and verifies occurrences and submits this information to the network to be used in the context of binding contracts. Contracts contain specifications and would only be triggered if certain pre-defined conditions or events are met. An oracle is a data feed – provided as a third party service designed for use in contracts on the network.
Oracles provide external data and trigger contract executions when pre-defined conditions meet. The primary task of oracles is to provide specifications for contracts in a secure and trusted manner. When a particular condition is met, the contract changes its state and the event is triggered. It could be the release of funds or provision of a service. A typical use case is an import/export business, would be to inspect the goods before custom clearance. Oracles can provide services for the organization itself or for a customer.
This is an entity residing outside the network, they’re not connected to the network but they interact with a node or a set of nodes on a specific project within a specific timeframe and rules related to the project. For example, a shipping agent can be a party, or a storage facility, etc.
Any exchange or transfer of goods, services, data, information, or funds. Any action or activity involving two parties or objects that jointly affect or influence both parties.
A witness is a node that serves the role of validating a transaction, usually a contract, by silently and passively observing how the project is carried out and delivered. They will act as a neutral third party observing both sides without interfering but can ask questions or request for information.
2.6 Destruction of Data.
The process of destroying data stored on tapes, hard disks and other forms of electronic media so that it is completely unreadable and cannot be accessed or used for unauthorized purposes
2.7 Deletion of Data.
Is the intentional removal of a file from a computer’s file system. Have you ever dragged a file that you no longer need to the “trash” on your computer desktop? Every time that you empty the trash, you have deleted the file from your computer. The file may be deleted, but that does not mean that it is gone forever. Even after the trash has been emptied, the files that were deleted remain hidden on the computer’s hard drive. At Ubinodes we don’t delete data, we irretrievably destruct data.
2.8 Ad-Hoc team.
An ad hoc team setting is one in which teammates must work together to obtain a common goal, but without any prior agreement regarding how to work together.
3- Industry market overview.
A study from FedEx shows that 62% of European manufacturers don’t export at all, the average profit or loss for each of them is 647,000 Euros. 49% of them are planning to start exporting. Most of them are expected to eagerly try to maximize the services Ubinodes has to offer. We have already spoken with some of the potential customers, many of them are looking to collaborate with knowledgeable and trustworthy partners to use their expertise in order to enhance their operations. We anticipate a mix of crypto and traditional customers, the exact breakdown of our clientele will evolve along with the cryptocurrency adoption.
The use of cryptocurrency and Blockchain for international services provides a number of advantages. It allows consultants to exchange work and also subcontract it with a lot of flexibility. It also enables consultancy-based to be offered to any customer via secure IT tools, with smart contracts beneath the hood. Currently, there are few international consulting services available that offer such flexibility. Most commercial services are dispensed via lengthy contracts that group various services in rigid ways and end up limiting the amount and variety of knowledge that any given customer can obtain.
The open and distributed nature of Ubinodes gives it more potential for dynamic, effective knowledge sharing than any closed, monolithic system, while still keeping in mind to always portend the greater good of humanity.
From the onset, Ubinodes will offer consultants a variety of IT tools so that they can remain autonomous and operational. The open design of the network and the economic incentives should then encourage consultants and manufacturers to refer other parties to join the organization.
Ubinodes is uniquely positioned for a first-mover advantage in two ways. One is similar to the other marketplace: once we have the required quality and quantity of consultants on our network, it will become the go-to place for international business consultancy, achieving a rapidly accelerating technological and market advantage. The other reason is for the interactions between parties on Ubinodes which will lead to a synergy of knowledge, with the mindset of a distributed network with a wide range of abilities.
Any competing platform will be incapable of emulating depth of knowledge, unless they match the sheer number of consultants with our expertise on Ubinodes – This will be hard for anyone else to achieve as it depends on the sophistication of recruiting consultants with the required expertise worldwide on one hand, a flourishing community of consultants, and a rich ecosystem of customers with varying levels of sophistication on the other hand.
Consultancy and freelancing proved its value to the business world and other fields. We believe its usage in the field of international business is under-appreciated. Highly distributed and decentralized consulting is suitable especially for international projects. Presently, there are several issues with the current state of consultancy and freelance offerings in the market, some of which are:
- Lack of standards: Consultants are diversified, each holding their own data, so the information flow among nodes for a project is everything but smooth, while cross-project developments become harder to implement.
- Inefficiency: Under the current system, all consultants are connected to a central body, all transactions go through that body for everything including authentication. Thus, there is a lag in delivery which leads to inefficiency when the amount of projects surpasses the capacity of the system.
- Cost: The infrastructure and maintenance cost of centralized systems, large servers, cloud services, and management staff is very high. While the number of consultants increases astronomically, the additional communication cost rises exponentially, which makes consulting very expensive.
- Security risks: Centralized network require an apparatus for central servers, nodes living in countries where the judicial system/political system is corrupt are also at risk without adequate coverage. The security vulnerabilities of consultants and IT tools affect the whole network, including external providers.
- Privacy protection: the existing centralized networks in use require a lot of data from its users. They collect and store data at will, when the user realizes the value of their data, the situation may be too late and little can be done to retrieve it. Because a consulting organization requires private information like financial and political information, the centralized network cannot be trusted to store such and in event of an attack from an outside source, your data becomes compromised. In our model, a compartmentalized approach is used instead of a need-to-know approach.
- Cloud services: The services we use online now demand more of our personal data at an alarming rate, this has become a disturbing trend that is threatening the user privacy on a global scale. Tech giants such as Google, Facebook and Yahoo have grown into colossal, seemingly unaccountable corporation that monetizes their user’s personal data. These entities are charged with keeping the said data secure and for safeguarding the privacy of users. Centralized security models are not applicable to the new generation technology like the Blockchain. Centralized consulting firms rely heavily on spy-cloud-services.
5- What are we creating?
5.1- Inspiration behind it.
Humanity faces various challenges on the path to a positive commercial world. Among these is the contemporary global economic system. In numerous respects, the standard financial mechanisms and institutions used today are not enough to serve as the economic engine for a smooth transition to the commercial world. New, more flexible, open and rapidly adaptive economic structures and dynamics are needed for that change.
Internet 3.0 provides a powerful tool for managing transactions in a commercial world, but the internet is just a tool and it must be used the right way. A Distributed Autonomous Organization designed to serve the needs of consultants as they interact with each other and external customers can enable the emergence of a collective knowledge. And it is critical that this DAO is designed with positive principles in mind such as:
- Democratic governance on specific issues – giving the community a voice in the system will tend to make the system act for the benefit of the community.
- Encouraging innovative new consultants to enter the network and creating the conditions for consultants to act in a manner that enhances the collective knowledge.
- Directing a significant percentage of the network’s efforts toward causes that will benefit it.
Ubinodes has been designed to meet the listed requirements via:
- Delivering consultancy services to corporations, individuals and organizations.
- Fostering the emergence of distributed general knowledge.
- Deploying collective knowledge for the benefit of consultants and manufacturers.
Ubinodes is explicitly designed both to be valuable in the current context and to lay the groundwork for the emergence of a self-modifying distributed “collective knowledge network” with the potential for general knowledge and ethical characteristics beyond the present level.
Ubinodes meets an acute market need, in the current economic and technological context. In the sense that every business needs distribution channels, of which multi-card systems cannot meet such needs. Only giant corporations can hire hordes of consultants and expatriates to open new branches and still, they have a hard time hiring enough consultancy experts to meet demand.
Ubinodes provides an almost automated process enabling each business to connect with existing local business channels to build the solution it needs. By providing a secure means of communication and business tools for service delivery, it offers both of the distribution channels and availability of the network, while reducing the duplication of documents and communication channels during development, thereby making the import/export process more efficient.
In line with these goals, Ubinodes will be an open network. Anyone can become a node as long as he/she shares information according to the organization’s principles and accepts/disburses payment according to economic logic.
We have a situation similar to the ones that spawned the creation of Uber and from what we’re seeing, there is a large and unexploited need, an untapped market in need of this service, hence the need to launch the platform to provide the service. The unexploited resource is the consultancy experts existing worldwide and the market in need of this resource is the 97% of businesses that can’t afford their own team of expatriates.
5.3- Product: A robust and adaptive business architecture.
Ubinodes is a peer-to-peer network where the participants are called nodes. This architecture separates the organization’s technology from the smart contract and makes it as easy to add new services to the network. In management terms, Ubinodes is essentially a distributed autonomous organization that creates new contracts to facilitate market interactions with business consultancy consultants. The following features are incorporated throughout the design.
- Interoperability: the network will be able to interface with multiple existing distribution channels.
- Data sovereignty and privacy: data control and sharing come with privacy-enabled controls at top of the network.
- Modularity: Flexible network capabilities make it possible to create custom topologies, consultant’s collaboration arrangements and failure recovery methods.
- Multi-channel: the Multi-channel feature allows independent channels to be created within the network and execute requests, consensus, and contracts. Since the channel is established with only two business nodes, integrity and assurance are ensured on a channel-by-channel basis, and transaction data is held only by the parties transacting business according to data sovereignty and privacy principle. It is possible to construct separate channels for each task only for related parties within the network.
- Tiered system: Apart from the initial authentication process to participate in the network, each transaction is validated and secured through Ad-Hoc authentication. Ubinodes can also set different access privileges to create nodes with specific functions (e.g. audit, supervision) to monitor certain transactions, if necessary, without participating in the actual transaction.
- Fault tolerance: By design, through distribution of data and self-stabilization, an ongoing task can continue as intended rather than failing completely, possibly at the cost of reduced throughput or increase in response time. In any case, the network as a whole is not stopped due to problems either internal or external.
Via close collaboration, Ubinodes is designed to foster development of multiple distribution channels as the next-generation business model for delivering consultancy services and enhancing global knowledge.
As the network evolves over time, it is intended to evolve into a truly distributed and autonomous organization. This organization is distinguished from an ordinary corporation by its openness.
At its foundation, Ubinodes is a set of business tools which consultants can use to get work done, to exchange data and to provide consultancy services. These also include tools to be used by manufacturers who wish to obtain services from a consultant in the network. Anyone can become a consultant following a selection and can enter the network so that anyone can request and/or fulfill consultancy tasks.
Transactions on Ubinodes are done through its own token, the Ubinodes token. Token holders can purchase goods and services in the marketplace and in future could be part of the democratic governance process on specific governance issues.
In short, Ubinodes is an innovative economic platform, designed to improve human knowledge to a new form of an ethically beneficial self-organizing model. The Ubinodes network is designed to provide valuable consultancy services to customers across the world while in the process self-organizing toward its stated goals. Ubinodes aims to do well for the world in general just as much as it wants to create a platform of knowledgeable consultants. The Ubinodes project is designed to generate a knowledgeable global economy that benefits all people in all spheres of life. Through a combination of knowledgeable consultants, collective decision-making and a benefit-maximizing architecture, Ubinodes will accelerate the development of a commercial world, helping humanity evolve into a more advanced, intelligent, beneficial and connected body.
The growth Ubinodes will foster can not only be seen in practical consultancy services and business structures, but also in the general theory and practice of business.
Ubinodes will be the first general-purpose distributed over-the-counter (OTC) international business network. The first service providing an extensive, inclusive and holistic array of consultancy services purchasable in cryptocurrency. Ubinodes supplies:
- IT tools and a set of contracts for interacting with consultants.
- A token-based economy for handling financial exchanges with consultants.
- A democratic governance mechanism for adjusting the parameters of the economy.
Transactions may occur between consultants within the network or between consultants and external entities outside the network. In order to foster a vibrant market, Ubinodes will not charge any transaction fee. Rather, the network’s operations will be funded democratically, via decisions of network participants to direct a fraction of newly released tokens toward entities providing and enhancing network infrastructure and associated tools.
Generally speaking, the primary service Ubinodes offer is “offering access to market”. The customers here are businesses in every area of industry wishing to open-up new markets for their services. It is also relevant to note that the crypto economy exceeds $400 billion, spans multiple market niches, and is rapidly growing. We are primed to take the opportunity of becoming the dominant provider of consultancy services in this sector. We anticipate that firms within the import/export community will be among the early adopters of Ubinodes services.
5.5- Value proposition.
What will incentivize customers of consulting services to use Ubinodes instead of an alternative? In essence:
- Security of user’s data in the organization is non-negotiable.
- Superior consultants on the network as opposed as to what is found on other networks: The network has specialized consultants, they went through rigorous screening done by Ubinode’s HR specialists, before they were hired.
- Superior consulting from consultants via the network; this is achieved due to the synergy of consultants connected together via the network.
- Appropriate mechanisms on the network is used to match clients and consultants with the right skillset to offer the right services.
- Easy and flexible means of communication between consultants.
These factors will incentivize consultants to use Ubinodes instead of offering their services on some other platform or directly via their own personal websites. When a consultant offers a new service on Ubinodes, it benefits from the network’s distributed knowledge base and other consultants too. Furthermore, the consultant gets access to the customer base of Ubinodes, the service can now be easily found by anyone using the network’s discovery mechanisms.
The individuals can also hold Ubinodes token used by the community, the token is open, shared by individuals who share the same values which is the development and success of the organization. Ubinode’s success depends on whether a highly cohesive community and self-sustaining environment can be built.
With the development and spread of Block-chain technology, these kind of communities are expected to increase both in quantity and quality. In such an environment, most tasks will be handled through smart contracts. The role of many centralized agencies and intermediaries in each field will gradually shrink or disappear, accelerating the speed of business processing. In general, most platforms begin with the goal of improving the work efficiency among the members of the community, but in most cases they evolve in the direction of increasing transactions with the outside world.
In this case rather than handling external affairs through a separate centralized institution, the smart contract of each community will become the subject of the transaction and the work will be handled through the connection between the smart contracts. Ubinodes aim is to be in the lead by connecting communities to create an environment where all communities can work in real time based on smart contract. As the number of communities connected through Ubinodes increases, the transactions on Ubinodes network will increase exponentially, resulting in maximum utility of each and every community member connected through Ubinodes.
Through the global capital market, countless transactions are constantly carried out through large group of intermediaries and centralized institutions. Because of these intermediaries, the transaction becomes lengthy and back-office work becomes complicated. Blockchain is driving the innovation of the insurance industry through its value chain. Innovation of claims and payment of services not only reduces cost, it improves the efficiency of transactions. It can also enhance consumer experience greatly, thereby improving the overall satisfaction of the insurance industry.
6- How are we going to deliver?
6.1- Morphing into a distributed organization.
Think of Ubinodes as an Operating System. It is like an underlying platform, often invisible, though it defines everything that’s built on it. Ubinodes is defining the space in which everything happens and changing the rules by which everything plays. Ubinodes is defining how the overall system is structured, how different processes interact and cooperate, how power is distributed and allocated between nodes and so on.
Generally, the majority of Blockchain projects place emphasis on their decentralization, the major problem is the lack of adoption in the real world due to their technological and business limitations. Ubinodes aims to overcome such challenges and help advance our society towards true connectivity.
6.2- Network dynamics.
The key services exchanged on Ubinodes are:
- Checking for suitable skillsets by consultants for relevant projects.
- Secure exchange/payment for goods and services using Ubinodes tokens.
- Requesting or providing a vote on a specific governance issue.
Further explaining the two types of transactions listed above, a set of standard legal agreements and IT tools will be provided for incorporation into the smart contract templates, and a number of templates embodying these tools will be provided for utilization. A few examples of services covered by these would be:
- Translating documents, like advertising, website content, legal documents, manuals, brochures.
- Creating a website on a local server and using the local language and cultural codes.
- Providing manuals to consultants and manufacturers.
- Providing secure communicating tools to parties.
- Providing legal documents to parties, including smart contracts.
- Helping parties understand and use cryptocurrencies and Blockchain.
- Syndicating costs for any resources that have general interest, including the marketing of the organization and its developments.
The variety of services to be covered will be quite large and the Ubinodes community will create and maintain a list of these services by democratic mechanisms. Customers who join the network in order to obtain access to the services marketplace will do so by purchasing Ubinodes tokens.
6.3- Blockchain integration.
Blockchain technology enables the transfer of assets like money over the internet without an intermediary such as a bank or payment processor. It uses a distributed ledger that is updated by consensus among the community, rather than held privately. Smart contracts are self-executing pieces of logic that run on the Blockchain network. The smart contract contains some “if-then-that logic” that two parties agree on and the contract automatically executes payment when the conditions stipulated in the contract are fulfilled.
Ubinodes uses smart contracts to create a distributed, self-organizing and cooperative group of consultants. As such, it can be built on any open, decentralized framework that satisfies certain basic requirements. It requires no special innovations in cryptocurrency or Blockchain technology with smart contracts designed to minimize the running costs for network operations.
However, Ubinodes should be understood as a dynamic structure that can be implemented with different cryptocurrencies and distributed ledgers rather than just Bitcoin. Communication between parties will happen in a peer-to-peer manner.
The organization provides a set of tools allowing:
- Exchange of information among consultants, including consultancy services and negotiation of terms.
- Mechanisms for exchanging Ubinodes tokens for services.
- Democratic governance on various issues.
We refer to the entities executing contracts as Signatories, which means either on Ubinodes or an external party that is interacting with Ubinodes members. We are currently using declarative contracts, these are easier to verify and audit and less prone to obscure programming errors or human interpretations. They enable highly flexible peer-to-peer dynamics, which is a fundamental specification for a distributed autonomous organization.
Due to the rapid evolution of cryptocurrency and associated tools, Ubinodes may need to shift between different crypto-economic infrastructures as technology progresses. Choices regarding the modification and growth of the underlying platform of Ubinodes will be made using the democratic governance mechanisms.
There is a Blockchain-facing technology to link the nodes to Blockchain based applications and a network-facing technology to make it interoperable with other nodes on the network. Joining Ubinodes requires minimal work. Candidates just need to understand and know how to use the technology. There are manuals that’ll be provided as well as detailed documentation and tutorials for both consultants and manufacturers. Ubinodes will use the Wavesplatform for the time being for its Block-chain implementation, but it could change in the future.
6.4- From service’s marketplace to self-organizing inter-networking.
For some transactions on Ubinodes, a user can simply use tokens to purchase a service directly from a consultant on the network, the consultant can offer the service by his/herself. However, some services may require multiple consultants. All of them work collectively for the general benefit of Ubinodes as a whole.
Furthermore, the platform will be enhanced as consultants around the world add new and fresh ideas to the organization. Everyone will be motivated to contribute to the organization and in return will also profit from participating on Ubinodes.
In some cases, there will be multiple consultants that can fulfill a request, in different ways and to different degrees. This makes complex networks of dependency possible. A network of dependency among consultants making offers to each other to exchange services for payments is known as an Offer Network. Each request to the network will require a unique combination of consultants forming a dependency network uniquely suited to fulfill the task. On Ubinodes, there is value in finding suitable consultants that can perform this task and receive a percentage of the payment for their service. New consultants will be brought in continually into the network by existing consultants themselves, for example when specific skills are lacking in the organization.
To fully meet the requirements, the Ubinode’s strategies are as follow:
- 1- We use Blockchain to save data assets, information and execute transactions.
- 2- We adopt a decentralized point-to-point network for realizing safe and reliable network communication.
- 3- We employ Ubinode’s for identity, ownership, processing of digital assets and to prevent data exposure.
- 4- The network is run on mainstream hardware and standards therefore we have the possibility of infinite extensions.
- 5- We relentlessly explore new technology to stay at the forefront of the Blockchain network.
Solely relying on centralized hierarchical structures, the current players are not capable of achieving the above mentioned goals due to lack of efficiency and flexibility.
We take privacy and security very seriously and our aim is to ensure that through design and procedures: hope is not a strategy. Therefore, we’re asking all parties to always put that first in their priority list in all dealings regarding our organization.
Like any other organization Ubinodes utilizes the five principles of security which are, layering, limiting, diversity, obscurity, and simplicity.
06.6.1 – Layering.
This security approach is also known as defence-in-depth and is used to resist a variety of attacks. From encryption keys to using aliases Ubinodes utilizes multiple methods to prevent threat actors.
06.6.2 – Limiting.
At Ubinodes we work on a need-to-know basis, while nodes may work on projects together it does not mean that everyone is aware of the work that they are doing. By limiting the access to files on a need-to-know basis, we limit the risk that is taken with data sharing.
Ephemerality is used at all time to guarantee the protection of data in the future. Pursuant to E.U data privacy laws, we never ever keep copies of data and always irretrievably delete old data.
06.6.3 – Diversity.
Diversity is very much related to layering but includes the detail of making sure that each layer of security is different from the other. If one level of our security plan is breached, it does not mean that the entire network is compromised.
06.6.4 – Obscurity.
Here at Ubinodes we use obscurity through the use of aliases. By using aliases we ensure the privacy of employees.
06.6.5 – Simplicity.
Security attacks can originate from a variety of sources and because of that, security is a complex subject. Nevertheless, we try our best to simplify the systems that are in place so that everyone can understand their roles in protecting themselves and the company.
7- Game play theory.
Describing the inner workings of an organization may feel counter-intuitive to business people as the lexicon and mindset are not business related. In an autonomous organization, the rules are embedded in the code, sometimes they are referred to as the Constitution or Agreement. Therefore, the design is based on a systemic approach. Understanding the game play allows the creation of standards and tools enforcing the rules.
The distributed network architecture is well suited for everyone because Ubinodes is not limited physically by geography, neither is data flow restricted among consultants, consultants can collaborate on a project regardless of location which will allow for self-discovery and improving the knowledge base of the network. Additionally, nothing goes to waste, even an aborted project can be used to bootstrap another project, resulting in a positive outcome for consultants and manufacturers.
For the sake of demonstration, the initial centrally managed, hierarchical and locally incorporated company was arguably less suitable for Ubinodes. In such structures, the rules are position-dependent (roles and responsibilities are pre-defined), and asymmetric (control and instruction depends on authority). The rules include long-range interactions between various levels of hierarchy and roles. A consultant going MIA (missing in action) may result in the failure of a project, such outcomes would only weaken the organization. The search for a suitable consultant is resource consuming, not leading to any positive outcome for the organization.
At this point, the game play highlights the importance of the self-discovery mechanism as a fundamental function of our autonomous and distributed model. Thus, most design decisions will be geared toward optimizing this function. According to the rules of the game, starting from randomly initialized searches, consultants form Ad-Hoc symbiotic teams for specific projects to produce the best outcome as each node is assured of a reward proportionally. As we’ve seen, it’s a positive game where any outcome is always adding value to the organization.
Ubinodes will keep updating its parameters so as to minimize errors between the predicted outcome and the final outcome of a project. This is done so as to make sure projects come out with the best outcomes. Specifically, the parameters are adjusted by gradient descent of a loss function where sub-optimal models are dropped and for more rewarding ones used in subsequent games of self-discovery.
This self-discovery mechanism can be compared to a series of collaboration along a tree where the initiator is at the root and the search for an Ad-Hoc consultant traverse the tree from root to leaf. The consultant estimates and optimizes the expected outcomes taking account other potential outcome. Each simulation proceeds by selecting a set of specification in each consultant which increases in relevance by the amount of time they’ve been visited. This increases the odds of forming an adequate team as well as higher performance value according to the available skills on the network. The search shows a mesh representing the probability of inter-networking distribution. Ubinodes simply maintains a single distributed network that is updated continually, rather than waiting for clearance from an HR manager.
The rules do not change in terms of consultant’s rotation neither does it change for projects. It is therefore possible to initiate the self-discovery process randomly before evaluating the possible outcomes compared to the industry average and different biases (cultural, historical etc.). Therefore there is no need for training nor for initial positions and roles to be defined. There is no need for the discovery process to be carried out by the best player in the field, and there is no need for a formal training where performance is measured, the new project manager would be measured against the previous best player.
In contrast, the centrally managed, hierarchical organization relies on professional recruiters who have undergone specific training in form of academic studies and whose performance is measured against other similar players, thus impacting the organization’s capability to scale and adapt.
Therefore the self-discovery mechanism occurs internally to form teams and extends externally to recruit new consultants, which is done by existing consultants, still without relying on a dedicated HR manager or management team. Self-play games are generated by using the latest parameters for this distributed organization to work, omitting the evaluation step and the selection of best player.
7.3- Feedback loop and Alpha-Beta search.
Ubinodes is optimizing constantly by applying the best known parameters, called Hyperparameters, for all discovery mechanism without the need for specific instructions. The sole exception is the noise added to the prior search by new factors, for example local constraints in the form of country or product specific regulation. Through the feedback loop this noise will add value to the self-play reinforcement learning as a function of training steps, the search vector will adapt and the organization’s spatial model will reshape to reflect the new hyperparameters.
In game play, this process is called Alpha-Beta Pruning in the sense that no possible outcome or variation is dismissed and all consultants are considered employable. From there it is clear that the organization’s design must optimize the self-discovery and feedback loop functionalities, as the performance of the consulting work is a by-product of the inter-networking distribution, which is allowed by two core functions: self-discovery and feedback loop.
7.4- Pruning and reduction.
During the search, each position is described by midgame/endgame-specific features such as: values, economy, mobility, regulation, safety, affinity, availability, qualification, accreditation and other patterns of evaluation. Each feature is assigned a weight by a combination of manual and automatic tuning, manual tuning could be a conscious decision whereas automatic tuning could be an unconscious or mandatory one. Through linear evaluation a corresponding final weight will result in a descriptive position for each consultant.
Linear evaluation is done on surface value like when you add one plus one to equal two, which is often applied when assessing human skills. However, this raw evaluation is only considered accurate for positions that are “quit”, with no unresolved hypothesis. This describes the assessment of new candidates in monolithic hierarchical locally based organizations, and from this text book hypothesis result evaluation and selection tests and processes are counterproductive and often destructive to any organization.
In international business, import/export is a specialized field, a quiescence search is used to resolve tactical situations before the evaluation function is applied. The consultant managing the project and doing the search is optimizing the team structure for best outcome, thus preparing a strategy defined in the business plan. These tactical moves are called variations. The self-discovery process consists of filling positions by evaluating each leaf using a quiescence search, that is searching “interesting” positions to a greater depth than “quiet” ones to make sure there are no hidden traps and, usually equivalently, to get a better estimate of its value for the variation. Any sensible criterion may be used to differentiate “interesting” positions from “noisy” ones.
Pruning is the process of dismissing possible variations during the self-discovery process. Pruning completely removes certain branches off the search tree, when they have no bearing to the search result. Alpha-Beta may be considered as backward pruning, because we can find a refutation after searching, which is why we don’t dismiss a consultant beforehand based on arbitrary criterion and which is why is it more suited to a distributed organization.
Forward pruning sometimes has risks by overlooking things, which could influence the outcome. This pruning is used to safely cut any branch that is probably dominated by another variation, for example consultants involved in conflicting projects. Additional cuts are achieved using aspiration windows, for example variations that can be dismissed because of regulatory environment spaces, or principal variation search. For example, when we can reapply part of a previously successful variation. Other pruning strategies include null move pruning, that’s when any consultant is used rather than to leave the position vacant. Futility pruning; that’s when the variation wouldn’t produce an outcome, and other domain-dependent pruning rules.
The point of this game play theory is to understand that the search is focused on promising variations both by extending the search depth of promising variations and by reducing the search depth of unpromising variations based on heuristics like history, peer-to-peer exchanges and activity. Variations are based on domain-dependent rules such as product specific regulation or local laws. These rules identify singular moves with no sensible alternative, and domain-dependent rules such as modifying the product design to adapt to the local demand and regulatory environment. Reductions, as opposed to pruning, are a class of search heuristics that decrease the depth to which a certain branch of the tree is searched.
Such process is based heavily on domain knowledge and can be seen as counterproductive compared to alpha-beta search or pruning. Hence, only highly experienced consultants in the organization have the capability to perform reductions, this emphasizes the importance of local knowledge versus scholar qualifications. The alpha-beta search depends heavily on the order in which variations are considered, which is based on the strategy developed in the business plan with the manufacturer, this in turn emphasizes the importance of having a consultant close to the manufacturer.
Variations are therefore ordered by iterative deepening, using a shallower search to prepare the overall strategy and a deeper search for variations. In addition, a combination of domain-independent variations are occurring, these variations typically affect or can be transposed to the entire organization by reflection, strengthening the organization and increasing its performance. Transposition facilitates the reuse of variations when the same situation is encountered by multiple nodes. A carefully tuned knowledge platform is used to select variations at the start of the project. Exhaustive feedback of endgame positions provides optimal tactical moves to all consultants, anywhere, any time.
7.5- Inclusive recruitment.
Self-discovery, both for forming teams and recruiting new consultants, is a game play using alpha-beta search, pruning and rarely reduction. It’s a pure self-play reinforcement learning approach where domain knowledge is the main key factor. Domain knowledge could be defined as:
- The initial features describing the position of the consultant and the output features describing its possible moves (political, technical etc.).
- The knowledge of the rules of the game, both for rules guiding the project and that of the organization. These are used to simulate the positions resulting from a sequence of moves, to determine game termination and terminal state. In other words, it’s an estimation of power. Power can have several forms, power of coercion, power of influence, power of decision etc.
- The number of legal moves is used to scale the exploration field. For example experimenting the project in the market?
- Maximum number of steps before the project will be terminated after the expected outcome. This typically in business terms is defined by timeframe and budget.
There is nowhere consultants are selected arbitrarily based on specifications alone. Quite the opposite, optimization is achieved through a thorough search, and any outstanding criterion can be a reason to select a consultant. Again, we see that by exploring the organization’s structure through game play theory, we achieve a clearer understanding of the dynamics and functions. This is important as for anyone speaking honestly, a distributed autonomous organization is something fundamentally counter-intuitive to conceive and implement.
In order for services to run on a high-performance, credible and secure network, it must be designed for usability and credibility. This is realized through separation of trust and transaction. The aim of the Trustzone is to issue ID to parties, identifying property and intellectual rights and rendering them tradable.
This combination provides the network with an economic foundation based on clear rights allowing its economy to grow and the productive force to develop. The Trustzone functions on one-dimension for identification and N-dimensions for services, therefore guaranteeing that distributed services can run on a credible and secure system. The network is organizationally decentralized and logically centralized.
7.7- Threat model.
Reactive security: when a node in the network does something bad or detrimental, the entire security model depends on other nodes being able to stop the act, mitigate its effects and closing down the avenue used to commit the atrocity. Reactive security in a network topology model is where you have high availability centralized servers in random mesh between themselves and users on the edges connected to these servers doesn’t work, it doesn’t solve the security models inherent to reactive security.
8- Economic Logic.
8.1- Long term goals.
Ubinodes has three long term goals:
- To be the hub of open international business consultants.
- To accelerate the development of open, borderless, neutral, transnational and censorship resistant economics.
- To promote the idea that technology and commerce can be broadly beneficial to allow mankind to find its way towards a sustainable and fair economy outside of invasive governmental interference working for bank cartels and monolithic groups.
Ubinodes economic logic is optimized for achieving those goals.
First goal: To become the hub of open international business consultants, Ubinodes needs both a network and an open market for buying and selling services. The network lets consultants work together, it makes them interoperable. The function of all markets is to price goods and services efficiently, so our first objective is to reduce friction and costs in client to consultant transactions. Ubinodes is an open distributed network. It should not be dependent on any exterior economy and should not discriminate access to participants. Anyone is able to use or provide services on the network. It is a free, permissionless, and open market and so our second objective is to maximize open and international access to a world of consultants.
Second goal: Ubinodes was born to accelerate the development of international business consultancy. It is as much an ideological vision as an economic one. Behavior must be regulated on the network and also to incentivize the recruitment of new consultants and the sharing of knowledge and experience. So our second goal is to ensure the economic logic facilitates dramatic growth.
Third goal: Ubinodes aims to provide resources to projects that are democratically approved as beneficial both in the present as well as in forthcoming global sustainable economy.
To maximize the success of Ubinodes, the economic logic must be optimized for all three objectives. For that reason we are introducing the Ubinodes token. The economic logic of Ubinodes revolves around this single token. The Ubinodes token is a utility token with a core purpose of being used for transactions carried out by consultants, including being used for fiduciary services during the exchange of physical goods, so it has a consumptive use. The release of the token will occur based on the development of the network’s transactions volume.
8.2- Economic objectives.
To maximize network success, Ubinodes economic logic must enable the buying and selling of consultancy services with minimal friction to market users, while making the discovery process as useful as possible. So the economic logic is optimizing for the following objectives:
- Open, worldwide and frictionless access.
- Consultancy services and delivery.
- Good behavior and service diversification.
The Ubinodes token is designed to achieve these three objectives. It guarantees free and non-discriminatory access from the start and keeps value created by the network within the network. It allows the rewarding of good behaviors and amazing customer service on the network.
8.3- Tokenomics: The need for a native token.
A question that consistently comes up is how to monetize a decentralized application. Traditional ways of monetization for centralized platforms include transaction fees, advertising revenues, referral commissions, and access rights to user data and subscriptions. For a decentralized organization the answer is to allocate scarce resources on the network by using a scarce token; an application coin. Users need this appcoin to use the network, in a pay-to-play approach.
Owners of scarce resource get paid in appcoin. We can apply this model to any kind of decentralized system. Scarce resources could be consultancy services, storage space, trades, data, ads, and so on. With the wider acceptance of Blockchain technology and its innovative financial solutions, cryptocurrencies are closer to being recognized as money more than ever. After all, it has all the features of what is accepted as money such as: Scarcity, Durability, Portability, Divisibility, Authenticity verification, Easy storage, difficulty in counterfeiting, and lastly Usability. Adoption can be facilitated by mentoring new users to help adopt Blockchain based systems.
In a situation where the economic logic is well designed, it drives rapid growth. If poorly designed it may create friction in the system. The conclusion of our careful analysis was that only a native token lets Ubinodes achieve its desired objectives. To create a system that makes transactions smooth, guarantees international access and incentivizes network growth we require a native token and economic model optimized for a peer-to-peer market.
8.4- Token utility.
Some typical specifications that can be achieved only through the use of a native token:
Permissionless International Payments which are open to the World: Ubinodes opens international consultancy services to an entire world of businesses and consultants. To ensure fair and non-discriminatory access, a single token unconnected to any outside economy is required. Any fiat currency would create barriers to those who cannot use that currency and make the Ubinodes economy vulnerable to manipulation by the government backing that currency.
Low transaction costs for micro-transactions: As Ubinodes opens international consultancy services to the global market, prices will be reduced by knowledge sharing and economies of scale while volume will increase as businesses turn toward Ubinodes. It will become a micro-transaction driven economy. While fiat currencies have high fixed transaction costs for regulatory reasons, a micro-transaction network makes new forms of value creation possible. To make such a network function, a transactional token tailor-made for micro-transactions is required.
Fiduciary guarantee: As the network is based on trusted inter-connections, parties may need fiduciary services in order to protect large transactions. Sometimes the risk associated with the financial transaction may require protection against loss. The liquidity of the transacted tokens allow Ubinodes to cover for the risks associated with the transactions based on its own token. The wealth created by Ubinodes activities is enough to cover the financial losses of its own token. Such function is impossible if the organization is using a third party value of transfer, whether it is fiat money or another cryptocurrency as it would be equivalent to borrowing liquidity or wealth from outside.
For these reasons and more, it’s clear that if we want to achieve our economic goal, a native token is required.
8.5- Value of the Ubinodes token.
The value of the Ubinodes token is driven primarily by external forces and not managerial efforts. The value of the Ubinodes token is determined by the contribution of independent users of Ubinodes, the decisions of token holders themselves and broader market forces, rather than the efforts of the founding team.
Independent contribution: The organization is an open desk for consultancy services which can be purchased with Ubinodes tokens. The value of the Ubinodes token therefore depends heavily on the variety, quality and availability of consultancy services. The core developers conceived the idea for the platform and will continue to make improvements to its infrastructure but the consultancy services are developed and introduced to Ubinodes by individuals and independent parties without centralized oversight by the core developers.
Democratic governance: Token holders can vote on specific decisions affecting the organization. The holders share equal control of all aspects of the organization’s functions. Token holders are able to rate services they use, affecting the success of those services and providing feedback that is necessary for the organization to improve. This role further contributes to the continued improvement of the network and its offerings.
Market forces: Because the network is a marketplace in which Ubinodes token is a currency, the value of the Ubinodes token cannot be separated from the forces of supply and demand. Supply as discussed above is determined by creators of consultancy services, both in term of initial development, introduction of the service, and its continued improvement in response to token holder’s feedback. Demand will depend on a variety of factors including factors outside the network. The consultancy services will include services totally unheard of, which may create demand where it was nonexistent as well as offer more efficient or effective ways of performing tasks for which closed and centralized market already offer.
8.6- Use case.
Ubinodes tokens let anyone buy and sell consultancy services from all around the world. Whenever someone wants a consultant to perform services, a smart contract is created for the job. By default the contract will involve the exchange of Ubinodes tokens for services. As the network grows, we also anticipate that more complex dynamics will emerge where services can be exchanged between consultants on cross-projects. As more advanced options are explored and refined, the Ubinodes token will support the dynamics of this network. Tokens are also a component in deciding how the network is governed in a decentralized way.
To reduce friction, the process of buying and selling Ubinodes tokens can be left to the market in the form of decentralized exchanges or brokerage.
8.7- Network effects.
From a legal perspective, the Ubinodes token represents a tokenized license for interaction with Ubinode’s commercial platform services. Ubinodes token does not represent ownership or equity in any company and as such should not be considered for potential increase in value, but rather for its usage as described in this Whitepaper. However, how it affects networks is our main interest. We have three type of Network Effects that will multiply each other and lead to the exponential growth of the Ubinodes token. This systemic exponential growth is making the Ubinodes token a good long term investment.
Developer network effect: As more consultants are on-boarded into the organization and contribute to its growth by rendering services, the intrinsic value of the organization increases and this value is reflected in the value of the token.
Marketplace network effect: As more customers join the network they need to purchase more tokens, as the number of token is fixed, the value of the token when compared to fiat currency can only increase over time.
Speculator network effect: The Ubinodes token is pegged to the Blockchain that has its own cryptocurrency, let’s call it the Underlying Cryptocurrency. This Underlying Cryptocurrency will benefit from its own developer and marketplace network effects, leading to an increase in value of the Underlying Cryptocurrency token relative to fiat currency. Therefore, as an underlying cryptocurrency, if its value increases it will pass this gain on to the Ubinodes token, which would be rise when compared to fiat currency.
Additionally, cryptocurrencies in general are seeing exponential adoption from mainstream users, this adoption is increasing the value of any actively developed Blockchain project. This is a simple transfer of wealth from the old economy to internet money, but we’re talking billions of dollars added each year which is spread out on quality projects. So we’re basically seeing a compounding speculator effect starting with the increase of value of the token relative to fiat currencies in the cryptomarket. These compounding effect will multiply the gain of the Ubinodes token which benefit from several network effects at once.
8.8- Smart contracts.
A smart contract is a piece of code that lives on the Blockchain. When a preprogrammed condition is triggered, the smart contract executes the corresponding contractual clause. No third party trust is required and there is no need for an external body. This works very well with automated agents. Automated agent means a piece of software that runs without any human intervention, in other words they run without supervision, autonomously.
The preprogrammed condition could be triggered by a sensor, the smart contract logic is IFTTT, (If This Then That). But a decentralized organization isn’t made by automated agents A decentralized organization empowers its agents, it gives voice to its members and the power is spread evenly among everyone. Humans don’t need to be the only ones making decisions, smart contracts can take up roles like paying people on certain dates. Sometimes, smart contracts may need to be triggered by humans and humans may need to have a say in the execution of a smart contract. While Ubinodes is leveraging on the Block-chain technology to be more efficient and resilient, it uses technology for improving human conditions and not the other way round.
Therefore, Ubinodes will use smart contracts when and if there is a consensus among nodes and when the technology is mature enough to be used exactly as required by Ubinodes, rather than compromising its core principle of not adopting immature technology. One of such principles is that the organization will always benefit from and grow with the diversity of the consultants that make up the network, smart contract must serve the network and not reduce the inter-networking activity between consultants.
8.9- Digital Curation.
Digital curation is the selection, preservation, maintenance, collection, and archiving of digital assets. The term curation was commonly used in museums and by librarians in the past, it has since been applied to digital assets. Digital curation establishes, maintains, and adds value to repositories of digital data for present and future use. Ubinodes is using digital curation to improve the quality of information and data within its operational and strategic processes. Successful digital curation will lessen digital obsolescence, keeping the information accessible and up to date for its users indefinitely.
Because the self-discovery mechanism on the platform is based on domain knowledge as described above, the curation shall be carried out by the nodes within the network. The economic logic ensures that each party is assured of a reward, either proportionally or greedily, which depends on the amount of time spent by nodes on projects or functions for the organization, as nothing goes unrewarded. However, greed is a stronger internal force in humans than goodwill, therefore an incentive to carry out curation task is introduced at the contract level. There is a necessity to enforce the feedback loop in order to advertise the work and receive donations. The node who has completed weekly tasks has to “advertise” the results of their work in order to receive donations made in Ubinodes tokens from other nodes. The node is improving its own reputation which gives opportunity for new projects down the line.
In a centralized organization, functions are broken down in such a way that back-office tasks are transparent to the customer. The price tag does not correlate with the cost of the product. Marketing teams discover where the customer is seeing a value and therefore will present their price accordingly. This manipulative approach is improved yearly by well-funded scientific researches. This is the pinnacle of capitalism and democracy now borrows these tactics. One of the downsides is that customers do not see value in back-office tasks.
In a distributed autonomous organization, the middleman is cut off, and instead it benefits the players and not the middle man. Since consultants and manufacturers are now put at arm’s length, back-office tasks are referred to as digital curation, which have to be paid for by the customer.
A fixed monthly maintenance fee is charged to clients, this applies evenly to all clients on the platform. The more manufacturers join the network, the lesser the impact of the fee is felt because it would be spread evenly among people which would lead to a general reduction in price. This will incentivize manufacturers to recommend other manufacturers to join.
8.10- Sponsored Projects.
Sponsored projects have been specifically assigned to add value to Ubinodes as an organization and joy to humanity. In the same vein, it promotes togetherness among participants and propagates the core values of the organization. The concept of sponsored projects is to have a substantial impact that would improve the culture of Ubinodes as it grows. It gives an opportunity to anyone who’s surfing on our website or receiving our newsletter to fund a project they are interested in. The sponsored project could be testing an app, payment cards or everything else that puts emphasis on decentralization and encryption. Also, the nodes have an opportunity to create their own project and get funded that way.
It is an approach for Ubinodes to create positive outcomes by using its consulting services for positive causes and to ensure that as Ubinodes grows, it is deployed in a way that is favorable to everyone. Participants are rewarded with Ubinodes token for voting rights which are contributed by other nodes. The number of voting rights to be distributed depends on the complexity of the project and is decided beforehand through self-governance based on a pre-agreed scale.
Formulating a system to measure which projects are worthy of being sponsored will be an important and continuous task for the Ubinodes community. Ethics will be written in a way that can be understood by all parties. Looking at Beneficial projects from an economic perspective, it doesn’t add much to the network dynamics. But in terms of its impact on Ubinodes, it may end up being one of the most important of all.
A number of proposals on the “social benefit of crypto coins” have been previously made, but it lacked a specific way of generating economic value, and sources for exponential growth. In Ubinodes, there is a cycle between the beneficial projects and overall network wealth for several reasons:
- The more the wealth present in the network’s overall economy, the more valuable the beneficial projects will be.
- Creating and executing services for tokens drawn from the organization will take consultants to discover new paths that they might never have pursued before. This will increase the diversity of the network’s activities and more diverse activities tend to lead to a larger knowledge base.
Each node can advertise their proposal publicly, on our website and newsletters, and then public makes the donations. These donations could be handled via smart contract, this feature is going to be available on Waves’ platform main net soon. Once a certain threshold of funding is reached then the node(s) can start managing the sponsored project. To avoid creating endless wallet addresses, there is only one address that is used for all beneficial projects. The donator will add in the comment section to which beneficial project they are donating for.
This will also avoid having wallets that aren’t certified to receive Ubinodes token. For example, if a sponsored project is advertised online, and for some reason the content stays live after the beneficial project is completed, visitors could find the post and send Ubinodes tokens to that address. By re-using addresses, we ensure these funds wouldn’t get lost. CoreDevs will then publish this wallet address on a secure page where all addresses for beneficial projects are hosted. This is to avoid changing the wallet addresses by people with malicious intentions. The donated funds would be divided between the lead node and other supporting node(s). If it’s needed to make some sort of a purchase (equipment, license, paid accounts etc.) this amount will be deducted from donations and all that’s left will be divided between the nodes who are taking part of that specific sponsored project.
8.11- What tasks are considered sponsorable?
Any node on the network can suggest a potential sponsored project, and it is considered so if it’s voted as sponsorable by other nodes, this is a purely democratic process. A project is called sponsorable when it has received a certain number of votes. When a certain number of people vote on a project (the number will be decided later on) it will be considered and certified as sponsorable and a certain amount of token will be allocated for such projects. Web-based IT tools are created that’ll be used to work on new tasks, these IT tools will also be used for voting.
9- How we work.
9.1- Multi-signature wallets.
A cryptocurrency wallet or a smart contract may be multi-signature. These can be 2-of-3 or 2-of-4 multi-signature contracts.
Scenario 1: In this instance, just one witness is involved, no Oracle. Here we have three parties: buyer, seller, witness. For the funds to be released, 2 out of 3 persons must sign the transaction.
Scenario 2: In this instance, an Oracle is involved. Here we have four parties: Buyer, seller, witness and the oracle. We’re still using a 2-of-4 multi-signature contract, but for funds to be released, both the oracle and the witness must sign the contract.
9.2- Witnesses and oracles.
Witnesses are mandatory if one party requests for it. They are chosen randomly from a pool of volunteers where everyone is given a turn to be a witness. Witnesses are not rewarded or compensated in any form by any party so as to remain as unbiased as possible. They are compensated with voting rights, thus increasing their influence in the organization. If a witness fails to produce a validation, then they are not compensated, and may even be voted out, the next witness in line will take over the validation task. Witnesses are not paid and can be involved in all type of contracts including service only contracts, therefore their location is not relevant as long as they are able to witness all communication and information.
There are two parties when it comes to validating a transaction: the one who proves “Prover” and the one who verifies “Verifier”, here we call it witness. For a transaction to be validated by a witness, it needs to satisfy certain parameters:
Completeness: if the statement is true then an honest Verifier can be convinced of it by an honest Prover.
Soundness: If the Prover is dishonest, they can’t convince the verifier of the soundness of the statement by lying.
Oracles validate tangible occurrences and therefore are locally based and act as third party service provider, charging for their work as per the agreement made between them and the requesting party. As service providers, they are found through the self-discovery process and their behavior may be attested to by the witness in the same vein as the buyer and seller.
Both Witnesses and Oracles can be requested for as part of multi-signature contracts where for example the original trustees sign a contract for future release of funds only if certain conditions are met. Before funds can be released, a witness or an oracle has to sign the contract as well.
To build a marketplace, the first step is to see if there is demand, then you assess the people in need of the solution you have to offer. Supply follows next. The usual long and uncertain way is that the founders initially meet the supply themselves, this occurs through an OTC desk where an order book can reveal sides to everyone. For Ubinodes this is already done. The organization is forking from Love4aviation, a company incorporated in 2007, involved in international trade in the heavily regulated aviation sector. Love4aviation had a list of newsletter subscribers in excess of about 13,000 before it got out to the consumer goods sector. In that sense, Ubinodes isn’t a new business.
For analytical purposes, all countries of the world can be classified into one of three broad categories: a developed economy, an economy in transition, and a developing economy. This classification is based on their level of development as measured by per capita gross national income (GNI). Accordingly, countries can be grouped as high-income, upper middle income, lower middle income and low-income. Countries with less than $1,035 GNI per capita are classified as low-income countries, those between $1,036 and $4,085 are classified as lower middle income countries, those between $4,086 and $12,615 as upper middle income countries, and those with incomes of more than $12,615 as high-income countries.
Consultants of Ubinodes are based all over the world, both in developed economies, economies in transition and in developing economies. Some consultants will be based in offices or homes where they’ll have access to unlimited broadband on desktops and mobile devices, others will have to share low speed internet. This opens up a lot of possibilities in the development of atypical inter-networking patterns – some obvious, some more creative, and some unexpected.
Parties that partake in Ubinodes will be able to exchange experience and services with other nodes involved in active projects as well as with consultants, manufacturers elsewhere, and they will be able to carry out financial exchanges for goods and services using tokens. This will provide an unprecedented level of adaptive and knowledgeable organization. This will enable customers to acquire services from the organization in exchange for payments, and consultants too can receive payments from other consultants in exchange for their services. It will enable consultants carry out small economic transactions with each other based on purely local network interactions where internet connectivity is an issue.
Consultants in the network, as well as external customers, need a way to estimate the reputation of other consultants and marketplace participants. This can include:
- Consultants and manufacturers who are working under agreement with the organization.
- External providers used by the organization for its internal functioning, like servers, banks, transport companies, etc.
- External providers used by consultants in the course of their projects like customs clearance companies, freight forwarding providers etc. This is critical in making choices regarding everyday transactions on the network and it also plays a core role in network governance and resource allocation. Ubinodes will provide a rating and reputation mechanism to address these needs. Rating system design is difficult and the Ubinodes rating/repudiation system will need to evolve with the network. For starters, a simple system will serve adequately but can be refined in future.
10.3- Democratic governance.
As a decentralized organization, the ongoing health and growth of Ubinodes will rely on democratic decision making among the network participants regarding network operations. The democratic mechanisms on the network is analog to “proof of contribution” as it factors in the reputation and number of contracts completed.
10.4- Know your customers.
Ubinodes uses a decentralized KYC methodology in which nodes are known and verified by other nodes rather than by a central authority. One approach here is essentially a “verification federation” consisting of nodes that are democratically approved to perform KYC functions. The ultimate goal is to balance decentralized control and operation with protection against exploitation by wealthy and powerful external entities.
This technology enables consultants to join, leave, advertise various services, look for service providers and to negotiate partnerships and one-time job offers. Even if a consultant doesn’t explicitly quit the network, the network will automatically consider the consultant gone if nothing is heard from the consultant over a certain period of time.
When a Node first joins the network, it will communicate with one or more root Nodes, obtain a list of peers and install the technology in use by the organization. It will also create a cryptocurrency wallet which includes a public key, an account for tokens and a description of its skillset.
A register stores all ads of services available on the network. Consultants can use the register to look up service providers and validate that they’re still available to perform their offered services.
On-boarding new consultants is straightforward. We use communication tools specific to each key aspect that is integrated such as:
- The list of services being provided which are described as references to consultants in the shared folder.
- Specifications about how the consultants should collaborate.
- A list of services required for each service being provided, if any.
10.6- Dynamics of providing services.
As discussed in this whitepaper, some consultants will provide services to clients and also act as clients for other consultants. When such consultant join the network, they will search for suitable service providers by browsing their advertisements.
A consultant is responsible for advertising services they offer, including a description of how he/she will charge clients, how he/she can accept data and also to communicate, how he/she will provide results. He/she will also keep the network informed if he/she perform can’t perform any of its services.
At any given moment when the consultant may or may not be able to actually execute a service, or they may need another consultant to provide a sub-service.
Any job offer begins with a price proposal and a query for readiness. The consultant may agree to the pricing proposal or they could make a counter-offer. If the consultant to state a price on their ad, clients and manufacturers are expected to honor it. The job offer may also include negotiating on how data is transferred.
Once an offer is agreed upon, it will be added to the network as a contract and linked to an escrow account, with an optional witness being named to arbitrate conflicts. Once the job is finished, and the client has obtained the results, the escrow account will forward the funds to the consultant that performed the service.
After each job is completed, the client is also allowed to rate the provider. Aggregated ratings are public and stored in the profile so that they can be viewed by prospective clients and partners.
Communication with consultants is very simple as they are not concerned with the details of how the applications work, and the service provider is not concerned with the details of the Blockchain nor with the business logic. The contractor can confirm that the consultant is able to execute a new job of any given kind, and it can trigger that execution. This is done through asynchronous synchronization so the contractor can receive status updates and results.
10.7- Monthly maintenance fee.
Many Blockchain platforms available today contain promising roadmaps and some even have incredibly talented, creative developers. Unfortunately, without funding, many of these projects will never see the light of day. Without a constant income stream generated from the project, maintaining a full-time development team can become increasingly difficult. This is the last thing we want at Ubinodes, as we truly believe in our mission, our objectives and our commitment to the Ubinodes community. In order to counteract the funding problems commonly faced by many projects, we charge a monthly maintenance fee.
This monthly maintenance fee also brings fairness among customers. The benefit offered to the customers is access to Ubinode’s network of which the network gets stronger and offers more benefits each day. Whether a customer is using the network or not is, this network is constantly maintained. Since all customers have equal access to the network, they benefit equally from it so with a monthly maintenance fee, all customers contribute equally which is fair. This generates a circle of virtue by removing the need to use transaction fees, therefore encouraging activity within the network as seen in the Game Play is adding value to the organization.
10.8- Adoption path.
How are we going from where we are to a place where everybody uses our token? This can only be done in a comprehensive token based economy. The entire financial transactions pertaining to the organization must be done outside of the traditional banking system. And down the line, the entire economy will be based on cryptocurrency, where somebody can pay wages, rent, and have their entire life outside of the banking system.
The market will always favor simple solutions over complex ones, and this will be done in stages, one of which is the possibility of withdrawing cryptocurrency directly to credit cards or from ATMs. First, we need other people to adopt the cryptocurrency, therefore we need to identify the reasons why they are going to be adopting the cryptocurrency. It requires efforts to change the current money flow into a different money flow, change requires effort, and it comes at a cost. In order for people to bear that cost, we need to justify it.
The only reason that’ll convince people is “profit”. In other words, if we want people to adopt our cryptocurrency; we need to see how they can profit. They are not going to change because you want them to, they are going to bear the cost only if they can make a profit down the road.
How can you make profit using cryptocurrency? Remittance is one way for an international business organization that provides import/export and fiduciary services. Credit cards charge 2 – 5% fees, using cryptocurrency instead of credit cards saves a lot of money for online merchants. Forex is also eliminated because most people won’t want to change their crypto back to fiat money once the crypto-ecosystem is diverse enough.
11- Store of value.
In order to make the Ubinodes token adaption easier and faster, it is used for financial transactions within our ecosystem, especially for physical goods exported across borders. This would result in three phenomena making the Ubinodes token a good store of value, why because its value rises thanks to scarcity.
Also, there is a price-floor that protects the value of the token by not reducing below a certain point. Notwithstanding volatility of any magnitude, this price-floor will always go up from time to time. Agreements signed in place are encouraging parties to adopt the Ubinodes token, not in a coercive way, but through the inherent value of the organization and word of mouth.
The first phenomena is: price-floor pegged to a currency basket.
Once the Ubinodes network covers several countries, the demand for it would be bench-marked by the exporter and importer relative to their local currency. No matter how the Ubinodes token is technically purchased, exchanged, OTC, fiat or cryptocurrency, in view of the holders, they’ll benchmark their Ubinodes according to their local currency and this will affect their behavior on the Ubinodes trading market.
Therefore, the Ubinodes token is pegged to a currency basket, no-one controls the currency basket which constantly evolves in line with the organization’s activities. As the Ubinodes token is pegged to a basket of fiat currencies instead of cryptocurrencies like Bitcoin or Ethereum, this makes it a better option for investors and users when compared to other cryptocurrencies or fiat.
The second phenomena: resale price maintenance.
It encourages exporters to use the Ubinodes token to sell their physical goods. There are many advantages to this:
- It provides liquidity for the Ubinodes token.
- We offer fiduciary services, as per the agreement.
- Instant and almost free international transactions.
- More stable than using other currencies, fiat or crypto, due to the price-floor pegged to a basket of currency effect.
Exporters and importers use the Ubinodes token for their physical goods which introduces a resell price maintenance effect. This effect is self-maintained and would come from the system itself, not from any grey agreement, thus it can’t be used to control the price but the opposite is the case as it will have an effect on the fairness of the price discovery mechanism.
The effect works as follows: exporter(s) sell their goods for a price set in their local currency and fixed at the date of the sales agreement with the importer. The importer buys Ubinodes in their local currency in order to transfer value to the exporter. The exporter receives the Ubinodes once the goods are delivered, sometimes a witness or an oracle is included in the contract.
Only when the exporter receives the goods is when they can release the Ubinodes token on the market, the selling price will be set so that the equivalent of local currency is entirely recovered. The exporter should not sell the tokens at a loss. Therefore this introduces a form of price maintenance whereby the value in fiat currency will be the same as it was when the importer bought them.
The third phenomena: resistance to market manipulation.
A speculative bubble is a spike in asset values within a particular industry, commodity, or asset class that is fueled by speculation as opposed to fundamentals of that asset class. A speculative bubble is usually caused by exaggerated expectations of future growth, price appreciation, or other events that could cause an increase in asset values. This speculation and resulting activity drives trading volumes higher, and as more investors rally around the heightened expectation, buyers outnumber sellers, pushing prices beyond what an objective analysis of intrinsic value would suggest».
This phenomenon is referred to as reflexivity. Reflexivity is the theory that a two-way feedback loop exists in which investors’ perceptions affect that environment, which in turn changes investor perceptions. The reflexivity theory states that investors don’t base their decisions on reality but their perceptions of reality. The actions that result from these perceptions have an impact on reality, or fundamentals, which then affects investors’ perceptions and thus prices. The process is self-reinforcing and tends toward disequilibrium, causing prices to become increasingly detached from reality». The Ubinodes token is immune to such a phenomenon.
As the Ubinodes token is bought at a set date by the importer who transfers value to the exporter, the exporter has to wait several days or weeks till the goods are delivered and funds transferred from the fiduciary to its wallet and available for selling on an exchange. The exporter who has to sell part of its Ubinodes tokens, is on one hand subject to the resale price maintenance effect and on the other hand subject to real world expenses they have to pay to get the production plant running. Therefore the exporter’s decisions are based on reality and business fundamentals and can’t be affected by a two-way feedback loop from the crypto market.