Fifth, Interesting Reads Chainless Platform

Enter the white paper series

We start today to unveil the mystery of the chainless system and introduce the relevant contents of the white paper. Many programmers have had close encounters with Bitcoin and ended up empty-handed. We are destined to meet each other and believe your wealth is proportional to your cognition. Our airdrop design does not require you to spend money, but you must spend time reading articles to improve your cognition and contribute to your strength; otherwise, you will miss wealth. Interpreting the innovation of chainless systems” is divided into five sections.

Write in front:

Zhang Hai succeeded as a teenager and became the chairman of the listed company China Hi-Tech at 25. He suffered a lot in middle age and learned lessons.

Zhang Hai has always been a mysterious existence to society. In the eyes of the public, he is described as a bad guy. In fact, the division of good guys and bad guys is too simple. Macroeconomic control is to squeeze the bubble, and someone must take responsibility. He disclosed for the first time his thoughts from that time. The journey is worth reading.

He was intelligent and good at learning. He was a trendsetter of the times and left a mark on the times. I invited him and Tang Wanchuan of Delong to analyze my article; readers can feel their knowledge.

His description of me was so vivid that I don’t remember many details. The biggest lesson for me was that when things went well, I mistook the energy of the general trend for my energy, so I was very arrogant; when the wind died down, the pig fell.

Zhu Weisha written August 3, 2023

Zhang Hai commented:

I first met Zhu because I participated in his road show as the main investor in the IPO of Yuxing Technology (the first private company listed on the Hong Kong GEM). After listening to his speech, Mr. Zhu seemed to have only said one sentence: “I am number one in the world.” However, his simplicity and frankness left a deep impression on me. Before, I only learned about the existence of this company by seeing the news about the Venus Project that he collaborated with Bill Gates. However, in Mr. Zhu’s view, Project Venus has many problems. He smiled and said: “Although Venus is not very good, I can add a “cat” to the learning machine and turn it into a learning machine that can access the Internet. It will become an information appliance. I can earn 100 -200 million a year.” At that time, it was rare for a home appliance company to have an annual net profit of 200 million without smuggling or tax evasion. After that meeting, I acquired nearly 25% of his IPO shares. I invested almost 100 million yuan, and soon after the listing, I made a profit of 100 million yuan.

I met Zhu again when Yuxing’s investment in dance mats failed, and the stock price plummeted. Although my floating profit has disappeared and I have lost tens of millions, I have never considered selling my shares, and I have never asked Mr. Zhu about the rise or fall of the stock price. After he noticed my loss, he invited me to dinner with him in Shenzhen and told me about his difficulties. I said that investing means investing in people. Entrepreneurs should be experts in dealing with pressure and should not be too concerned about the success or failure of a single project. That evening, Mr. Zhu shared his research results on the Japanese economy and his definition of industrialists and capitalists. This man is a learned scholar with profound and broad thoughts. It is worth mentioning that Mr. Zhu and his core team have all engaged in research work at the Academy of Social Sciences. At the dinner table, he told me about his experience in doing business, and I taught him the tricks of capital operation.

The third important meeting took place in Beijing. Mr. Zhu came to me to discuss a significant plan. Three months later, I joined forces with Yuxing and other sponsors to successfully acquire FounderTech and won a seat on the board of directors of Founder Technology. The management team we recommended began to lead the operations of Founder Technology. Later, affected by the Delong incident, the stock market turned bearish, and Founder Technology lost hundreds of millions in market value. Mr. Zhu wisely decided to give up the demand for joint operation. He told me that his primary goal is to preserve capital and interest, and he no longer wants to get involved in Founder Technology’s business. Later, I took on the losses of Founder Technology stocks, and the investment provided by Yuxing was converted into loans to charge more favorable interest rates than the market.

The fourth important meeting happened at the critical moment when the Peking University Founder and I separated. In order to maintain control of Jianlibao, I needed to raise 238 million. He only said a few words: “You are a good person. I can’t let anyone bully you. I can provide this money.” A week later, I reached an agreement with Mr. Zhu and another friend and formed a relationship as Zhengtian Alliance, successfully acquiring Jianlibao Group. In this process, Mr. Zhu gave me essential industrial operation experience, and the Jianlibao brand has regained its youth; in terms of capital, we have become an important shareholder of Industrial Bank and Ping An Insurance, and the future is very bright. My experience is limited. The sudden macro-control showed that after collecting loans, the Industrial and Commercial Bank of China would no longer lend money. Enterprises that rely on the rapid expansion of capital chains have suffered a huge blow, especially private enterprises. During the Jianlibao incident, I was imprisoned, and Mr. Zhu was detained for over a year. Occasionally, we looked at each other through the bars in the detention center. The storms were all past, and no one knew what would happen tomorrow.

The fifth important meeting was to persuade President Zhu and Jianlibao to reconcile. I said: “The settlement fund is 450 million; I will bear 50 million.” Mr. Zhu said: “Forget it; you are in trouble a lot.” We drank ice-cold sake that time, but I felt warm in my heart.

The sixth important meeting was when Mr. Zhu came to London to sign an acquisition project for the largest data center in Europe in which he was involved. The day after signing the contract, he came to see me quietly. After meeting my mother and child, Mr. Zhu gave me a big red envelope according to Hong Kong rules. In the evening, I had dinner with him at a Michelin three-star restaurant, and we chatted until Mr. Zhu fell asleep. Before leaving, Mr. Zhu told me: “I haven’t seen you for a few years, but your level is still there, and you still have a great chance. Let the world know your grievances, and I can help you anytime.”

Today, our relationship has lasted 24 years, and these six important meetings have witnessed our growth and market changes. We went from being partners who knew everything to friends who talked about everything to confidants. Both sides have repeatedly observed each other from various angles and examined each other from multiple events. This kind of trust is hard-earned, and this kind of relationship is indestructible. In 2019, at a critical moment when Mr. Zhu was in need, I invested in Yuxing again as a matter of course and served as a consultant. Investment is all about looking at people without even a business plan.

During this process, I was responsible for clearing assets and formulating new development directions. Mr. Zhu has a particular liking for cryptocurrency. He thinks this direction is good, just like the early years of China’s reform and opening up. Mr. Zhu said, “In the field of cryptocurrency, I am responsible for Standing on top of the industry and plan, and you are responsible for fighting. We strive to stand at the top of this industry together.” My knowledge in this industry is limited, but I also tried my best to shoulder the initial responsibility out of responsibility. I was fortunate to be the earliest reader of the “Chainless White Paper.”

In 2023, Mr. Zhu delivered his world-class answer sheet:

• Confirmed that Satoshi Nakamoto is ethnic Chinese Wei Dai, demonstrating Mr Zhu’s ability to think deeply and solve complex problems.

• Utilize a chainless transparent centralized platform to realize the functional characteristics of the decentralized structure of cryptocurrency, which implements, inherits, and surpasses most of the functions of Ethereum;

• Propose a feasible path to Bitcoin standards and use a chainless platform to distribute the BRC20 protocol token DW20.

The chainless white paper was drafted in early 2022 and is the crowning work. Mr. Zhu climbed to the top by himself and wanted to be a Sherpa to bring us all to this peak. Since 2021, I have been participating in developing the chainless network and constantly asking for advice and discussions from Mr. Zhu. Currently, I am temporarily responsible for the development of the first application of the chainless web3.0 infrastructure: “Digital Asset Intelligent Registration System,” so my review will start with the chainless platform:

A peek at the chainless white paper

Chainless interpretation

None: Take the meaning of infinite human wisdom and supreme human freedom.

Chain: Due to the allusion that Web3 started from the blockchain, we draw lessons from it but are not limited to the blockchain.

Chainless: is the abbreviation of the ecological collection of the Chainless platform and Chinless community.

We believe that with the infinite wisdom of humanity, financial freedom will be achieved in the future, and the Web 3 financial infrastructure represented by the chainless platform is an important step. A chainless community composed of people who pay tribute to Bitcoin and believe in financial freedom.

Introduction to the Chainless Platform

The chainless platform is a financial infrastructure based on digital assets. To solve a bunch of annoyances in the cryptocurrency space, such as sky-high fees, slow transaction processing, and insecure storage methods like open envelopes.

This platform is like a digital wallet treasure bag; what’s in it?

1. Intelligent registration system: It is like a super protective shield for central exchanges and Web3 financial alchemists using chainless platforms, ensuring asset transparency and automatic audit services. It’s like your treasure has been put into a special vault and cannot be stolen! (Note: 3)

2. Easy transactions and payments: Within the chainless platform, transactions and payments are like a digital carnival, fast and cheap. It is simply a surfing paradise for digital currency!

3. Secure asset storage: The chainless wallet can store assets safely and activate the DW20 anytime. (Note: 1)

4. Community banks: Through community banks it is like a one-stop shopping mall for finance, and you can withdraw money at any time! You can exchange DW20 coins into legal currency and withdraw cash anytime. (Note: 2)

5. Wallet interconnection: peer-to-peer transactions are available to you. (Go check out the wallet open beta.)

6. Smart contracts are easy to handle: Compared with traditional “on-chain” technologies (such as Ethereum), the chainless ecosystem is like your super fast lane, making it easy and fast to implement smart contract functions. For details, please check the chainless white paper. It’s like a smart contract fast food service window that makes everything easy!

There is also a killer trick, the DW20 standardcoin, designed for global Bitcoin holders and can be activated gradually according to the rules. In addition, through chainless community banking, you can also enjoy financial services such as international remittances and cash withdrawals. In short, Chainless aims to illuminate all centralized digital currency projects worldwide, promote Bitcoin standards, and create a freer and safer digital financial paradise.

Note 1: In 2023, the chainless system also launched the DW20 standardcoin. As long as you complete the registration in the chainless system with your Bitcoin address, the DW20 standardcoin quota will be automatically issued and activated according to the rules.

Note 2: The chainless system provides global users with global remittances and withdrawals from stablecoins to fiat currencies and a full range of financial services through community holding banks (Switzerland and China).

Note 3: chainless’s vision is to transparentize all centralized digital currency projects worldwide. At the same time, chainless’s mission is to promote Bitcoin standards and create a freer and safer decentralized financial environment.

First, Analysis of basic concepts

1. Transaction value and ecological value

Let us discuss the two treasures of Bitcoin: transaction value and ecological value. These two are a bit special.

First, the transaction value is the harvest of the miners who work hard, that is, the income from their efforts. This concept is relatively easy to understand; the money goes into the miners’ pockets and can be spent anytime.

Then, ecological value is Bitcoin’s new friend. The Bitcoin system didn’t know this guy before, but now, with the BRC20 protocol and smart contracts, it’s like the Bitcoin system has become a bit “social” and started to talk about ecological value. This ecological value is a bit like a friend of Ethereum. DW20 acts as a booster here. It not only increases the transaction volume of Bitcoin but also indirectly increases the value of Bitcoin. It also makes the entire ecosystem more perfect and complete with value.

So, how much are DW20 and Bitcoin worth? Some people say their value comes from everyone’s consensus, just like people’s consensus on the U.S. dollar and gold value. The USD consensus first comes from fiat and then gradually expands the circulation. Bitcoin, like gold, has its value and then forms a market consensus. However, Bitcoin and gold only have stored value. That is due to their volatility, and they are not suitable for pricing commodities because the prices of items cannot change three times a day. DW20 is a yardstick for Bitcoin, and its price is constant and suitable for pricing. With a ruler, Bitcoin can measure the total wealth of society.

The value of Bitcoin comes from the conversion of electricity, like turning waste into treasure. And DW20 is airdropped; where does its value come from? Well, its value comes from users, and user value has a market value in the capital market. The article mentioned that 70 million users could support a value of 210 billion U.S. dollars, which does not sound like bragging. If there were more users, wouldn’t the value of DW20 rise even higher? Theoretically, yes, but it should be noted that due to the existence of the Bitcoin mortgage issuance mechanism, when the price rises, mortgage arbitrage occurs, and the issuance of DW20 will also increase. It is like the people who mortgage Bitcoin have set up a secret money printing machine. , snatched away the rising profits of DW20 by increasing the circulation of DW20. This design is so intelligent that it attracts countless profit-driven people!

In short, DW20 is as valuable as Bitcoin, and the greater the demand, the higher the usage. Therefore, we aim to create high-frequency usage scenarios and high-profit products to make DW20 more attractive. While making money, it also attracts investors to hold it for a long time and use it frequently.

Then, let’s take a look at CLY. It is the token of the chainless system; just like the facade of the chainless system, it represents transaction and ecological value. Unlike Bitcoin, the Bitcoin system has no real boss. Miners are like competitors, and the value relationship is a bit messy. The relationship between users and systems is also a mystery. But CLY is different. It is a complete system representation, just like a proof of stake. Therefore, CLY’s value is like the company’s market value and can be estimated.

Because ClY represents the value of the chainless system, chainless users have user valuations in the capital market. If the cryptocurrency tokens do not represent the value of the ecosystem, no matter how many users there are, the capital market’s valuation method for users will not be used.

In short, Bitcoin has value, but it is challenging to value the system itself. DW20 also has value, and the value of the corresponding chainless platform can be estimated, and CLY represents this value. DW20, like Bitcoin, is a currency value subject to the laws of supply and demand, and its value depends on demand. The relationship between the chainless platform coin CLY and the chainless system represents the equity relationship.

The Bitcoin system is the issuance tool of Bitcoin, and the system does not require a value representative. Bitcoin is right. However, the subsequent cryptocurrency ecosystem followed the idea of system valuelessness, causing logical confusion in economic theory and application. That is a long topic; the most straightforward impact is that users cannot value it. That’s why the less-than-accurate Total Volume Locked (TVL) valuation method has emerged.

2. Let’s talk about DW20 and CLY, who is more valuable?

First, the DW20 has a pricing tag, limiting its value to $1. It is so clear. The circulation of DW20 was set at 210 billion in the first phase. It is like the lubricating oil in a car engine. It is not much, but it is not a minor player. The reason is that DW20 is based on legal currency. The global legal currency base is only 70 to 80 trillion U.S. dollars, and coupled with the currency multiplier effect of commercial banks, there are about 300 to 400 trillion in circulation in total, so 2100 DW20 billion is just a tiny number. Assuming that we all use DW20 for settlement, the amount issued in the first phase is a small part of the entire demand, almost negligible. When the demand for DW20 increases, issuing DW20 using collateral Bitcoin will not cause the price of DW20 to rise significantly.

DW20 has a benchmark value and is a settlement token on the chainless platform. The article says that Satoshi Nakamoto has not entirely solved the problem of excessive lending by commercial banks, but peer-to-peer payments can significantly reduce bubbles. The cryptocurrency community supports this view. In short, no bubble means that the issuance of DW20 will dramatically increase. The chainless platform is the only issuance platform of DW20. Its total issuance is a bit like the “total lock-up volume” in the cryptocurrency field and is an important indicator. But in the article, Mr. Zhu didn’t seem to mention this. I asked him whether we should look at the total circulation or the profitability and prospects of the platform. He believed that the total circulation of DW20 is not necessarily on the chainless platform but may be circulated on many platforms, just like the global circulation of the U.S. dollar. However, the chainless platform has the function of settlement and clearing DW20. The mortgage is only destroyed here. CLY represents the profitability of the chainless platform. As the profitability of the platform increases, the price of CLY will increase.

In the short term, the value logic of DW20 is obvious. Holding DW20 can make you make money quickly. But remember, DW20 has a price limit. The market demand for DW20 will eventually be reflected in the price of Bitcoin, while the ecological value will be reflected in the chainless token CLY. Therefore, in the long run, CLY may have more excellent prospects.

3. Platform resonance creates a new profit model for chainless platforms

Let’s talk about platform resonance; it’s interesting. DW20 is only a tiny part of the chainless platform, but it was like a magnet in the early days, attracting many users. Then, the chainless platform also began to bring more users to DW20. It was like a beautiful resonance show.

First, let’s take $100. DW20 represents financial value and has a higher valuation for customers. , the customer is worth $100. The chainless platform represents the value of the Internet, and the customer value is $50. Now assume that other projects on the chainless platform are issuing coins, but chainless will still provide users with $50 of chainless tokens. These projects and platforms attract each other and double the user value. It is the so-called resonance effect.

Does Ethereum have a resonance effect? Of course! There are various applications on Ethereum, and they all use Ethereum tokens to trade and interact, so there is also a resonance effect. Since the Ethereum platform cannot be valued and cannot benefit users, users are only their consumers, so there is no resonance of interests.

Do Web 2 projects also have this effect? Some of them do; after all, attracting new users is their way of survival. But the advanced resonance strategy, as Mr. Zhu said, is not used in every project.

User growth is often an essential measure of project success. But when the growth of a project is no longer as crazy as an exponential function, it may mean that it has entered a mature stage. At this time, the resonance effect may cause mature cryptocurrency application projects to jump to the chainless platform, bringing a large wave of new users. This incredible phenomenon may create a fantastic user growth rate, an Internet miracle. The concept of resonance is like this. The application at the beginning is like a “guide,” other applications also prosper in resonance, and everyone is joyful.

That’s it, the resonance effect, playing is the heartbeat.

4. Innovative solutions to solve airdrop problems

Hey, let’s talk about airdrops in the cryptocurrency world. Airdrop sounds cool, but designing a good airdrop plan has always been a problem. The way most people know about it is the halving method, just like Bitcoin does. However, this is not always a good idea for projects that rely on users. Some projects, like PI Coin, once tried attracting users by giving away coins for logging in daily. However, as a result, they were modified repeatedly and not carefully considered at the beginning.

So, what is the correct airdrop model? From the traffic perspective, cryptocurrency projects are essentially Internet projects, and their user growth should proceed like a natural growth curve. Among natural growth curves, the most common is the S-shaped curve. Therefore, we can consider designing the airdrop plan based on the user’s S-shaped growth curve. It may be a suitable method. In this way, the airdrop problem can become a problem of reasonably distributing tokens according to the user’s S-shaped growth curve.

Both the CLY and DW20 coins of the chainless platform adopt a similar coin issuance principle. They have the same formula structure, but the parameters are different. Both coins have 30 cycles, but there is a difference between the amount issued and the number of users. However, these formulas can be adjusted to different situations and are more flexible than the simple halving method. This formula may be a good choice if user growth follows a natural growth curve.

In short, the airdrop problem is like giving everyone candy but ensuring everyone eats the same amount instead of letting some people eat to their fullest and others not eat. It’s a delicate balancing act, adjusting how candy is distributed as the user evolves.

5. The excellent functions of linear release and lock-up

Let’s talk about a common phenomenon in cryptocurrency: after people get free tokens, they sell them quickly. Such behavior often triggers fierce controversies in the market, attracting many speculators. For those who don’t lock up their tokens, it’s possible to forget the token’s name shortly after selling it.

Can people keep interested and remember the token for longer? It is the beauty of linear release. By gradually releasing tokens, users have more time to learn and understand the market conditions, which may give them a deeper understanding of the value of the tokens, which may ultimately lead to better returns on investment. It will feel better if you don’t eat all the chocolate in one go but savor it bit by bit.

Another interesting point is the reward mechanism, which means that some special rewards or rights can be given to users who hold tokens for a long time. Especially those old users who have been sticking to traditional cryptocurrencies, such as Bitcoin, are more willing to lock their tokens for a long time and not sell them quickly. It can reduce the selling pressure in the market and make the token price more stable, just like you have a collection of rare stamps that you don’t easily sell.

In the design of chainless tokens CLY and DW20, the design of the lock-up and release mechanism is similar, which also helps maintain the stability of the token, like hiding wine in a wine cellar, aging it slowly, and then taking it out to enjoy when it is correct.

6. The role of market-making funds

Let’s talk about market-making funds, a relatively novel approach to ensuring the success of cryptocurrency projects and turning an otherwise volatile price curve into something more like a climbing ladder. Mr. Zhu believes this method has found a new path for non-productive assets such as Bitcoin and DW20 to discover their value. Can it be successful to introduce market-making strategies from the primary to the secondary market? I think it’s at least worth a try. The role of a market-making fund is a bit like a large company buying back its stocks. For the project itself, it’s like making wise value investments when the price of the project drops.

The whole system is characterized by:

(1) lock-up to adjust the supply and demand relationship;

(2) Bollinger Bands represent the long-term trend;

(3) the exact range control mechanism the Hong Kong Monetary Authority uses;

(4) Artificially forming the exact price bottom as Bitcoin. The price bottom will be broken, but the bottom will rise as users increase and transaction volume increases.

(5) Allows the value of commodities based solely on supply and demand to be accurately reflected.

In short, market-making funds are like throwing a buoy in the sea of cryptocurrencies, providing solid direction and support for the project to sail successfully.

7. The spirit of Satoshi Nakamoto promoted by medals

Let’s talk about those gold, silver, and bronze medals. They are not only a decoration but also a spiritual reward. Although each award rewards the same number of DW20 tokens, it isn’t a big deal. But here’s the secret: the real difference is how long users stick with it. Because registration is based on address, you can choose a real name or anonymous, so even if Satoshi Nakamoto himself registered, he would get more than 20,000 gold awards. But to him, those medals may not be that important because the real key is who comes second and third.

Satoshi Nakamoto has always emphasized the culture of holding Bitcoin. Still, in fact, in the early days of Bitcoin, people like Laszlo (the founder of GPU mining) and Gavin (the top maintainer of the system who took over from Satoshi Nakamoto) Heroes also emerged. Their contributions may be forgotten, but in the Bitcoin world, who is the real second and third person has important significance.

The design of these medals is motivating. The gold medal winners are successful people who follow Satoshi Nakamoto. Therefore, the gold medal can be regarded as a symbol of understanding and persistence of the Bitcoin concept. The existence of medals also helps people distinguish real investors from speculators.

Satoshi Nakamoto’s “immovable Bitcoin” concept tells us that cryptocurrency, like gold, is not easy to depreciate, so there is no need to spend it arbitrarily. On the contrary, fiat currency may lose value, so it is better to immediately exchange it for an asset that does not lose value quickly. People who have received medals may have an easier time understanding this concept.

Medals are more than just symbols; they can divide those blurry Bitcoin accounts, which has profound meaning.

8. The incentives of the user community are probabilistic incentives

Probabilistic incentives sound mysterious, but they are a bit similar to the bonus system in our daily lives. In the Bitcoin world, everything is a big game. Some people may engage in speculation in the short term, but in a long time, everything is based on probability. When mining, the guy with more computing power has a greater chance of winning. But if there was a system to distribute computing power evenly, would Bitcoin still exist? Gambling is the golden rule of Bitcoin.

In real life, we have salaries and bonuses. The salary is a living wage, and bonuses are based on individual performance. These bonus systems have a huge impact on the success of the business. The incentive is a keyword in the chainless white paper, and those contributors are rewarded every 21 days. It’s a bit like the bonus you get at the end of each month, but a little different is that chainless incentives are based on probability. This probabilistic incentive method is really novel. I have not seen any other project do this so far. In a chainless environment, incentives involve the design of various groups, which may lead to the emergence of computing power pools similar to Bitcoin mining. These groups compete fiercely for prize money. However, unlike Bitcoin’s computing power pool, the problems faced by chainless groups are more complex because there may be uneven contributions from different members. As for how to maintain an interest group, Mr. Zhu did not explain in detail. It may depend on the creativity of each group. Those groups that make more money may grow rapidly, while those that only take advantage of the opportunity may end up with nothing.

As mentioned earlier, the chainless token CLY represents equity and is the owner of platform benefits, while computing power represents the only winner of the Bitcoin system. The reason why Bitcoin can survive is related to the competitiveness of computing power. The person who represents the most incredible strength wins the computing power competition. This competition’s results differ from traditional enterprises’ equity allocation. Significant shareholders of traditional companies usually do not change easily. Bitcoin’s design is more advanced because it uses competition as a core principle. It begs the question: Is Bitcoin’s design more advanced, while traditional businesses’ designs lag? In theory, yes. Therefore, chainless should learn from Satoshi Nakamoto’s ideas and regard competition as a core principle. Mr. Zhu believes that Bitcoin is an automatic competition system, and the natural development of human beings is also the natural result of competition. If Chainless hopes to reduce manual intervention, it must imitate Bitcoin’s successful experience in all aspects – engaging in gaming. Chainless equity, like Bitcoin’s computing power, should be in the hands of the most influential people. Strength comes through competition, and it’s a bit like the various election contests worldwide, isn’t it?

Therefore, the chainless world is an arena; the incentive mechanism is based on probability, the winner takes all, and those groups that continue to compete and make progress will win. Like the best athletes in the world, they all have a chance to win a gold medal if they are willing to keep fighting.

9. Indirect incentives

Let’s talk about a unique concept: grade salary. It sounds a bit like the level of wages in traditional companies, where you are rewarded when you get promoted. In Internet projects, rewards are usually given based on specific tasks or performance, but this simple reward method may seem too rough for the core team and senior executives.

In Mr. Zhu’s plan, community members are divided into 12 levels. The Chinese government has 21 administrative levels, and enterprises usually have 9 to 12 levels. Future developments are difficult to predict because this is an entirely new concept. However, this design may cause much controversy in the cryptocurrency community. Which method is more reasonable is not an easy question to answer.

Overall, Rank Pay is an exciting attempt to differentiate between community members’ roles and contributions. However, this point will likely attract some heated discussion in cryptocurrency. Just like when you order a novel dish in a restaurant, some people may think it tastes unique, but others may think it’s a bit weird.

10. The core team cannot be the center

Let’s explore this exciting concept, the core team. It seems that the idea behind this system is that the core team should not be too large, preferably between 30 and 50 people. But this team is not that in the traditional sense. They are more like an investment team. Their task is to allocate funds, assign tasks, and improve the entire system’s efficiency, which sounds a bit like how the Ethereum project operates.

In the start-up stage, usually, due to limited resources, the founding team has to do everything. However, a truly successful decentralized system should gradually reduce the intervention of the core team and achieve automated operation. The critical idea of decentralization is to reduce progressively centralization and allow users to manage the system themselves without relying on a central team.

We need to be clear that decentralization is a gradual development process. Just like Bitcoin had some centralized characteristics at the beginning, today’s ledgers are still centralized. The critical difference lies in the issue of power. Decentralization means that users can manage their rights and interests, and once the core team becomes large, they may have more control. Like you have a family compound at home, the relatives initially manage it alone. Still, as the family grows more extensive, a “head of the family” may be needed to coordinate. It is the process of gradual centralization of power.

11. Ecological community incentives

Let’s talk about the eco-community incentive plan. This small team boldly plans to expand its impact by inspiring the community. Mr. Zhu proposed a quite “rich reward” plan in the chainless white paper, intending to use 30% of the tokens to reward developers who work hard to develop the ecosystem. It is one of the most exciting incentive programs in current cryptocurrency projects.

Let’s use an analogy. It’s like you are playing a game that everyone likes. The game company suddenly announces: “Hey, if you can develop some cool new features for our game, we will give you the most precious game Equipment!” This plan can attract tens of thousands of developers like Filecoin, allowing them to invest passionately in the construction of the ecosystem.

The ecological community incentive plan is like an initial investment gift package to developers, and the tokens will be gradually released according to their development progress. Considering that the chainless platform has many users, this makes it easier for entrepreneurs to realize their dreams. This method is relatively decentralized and driven by the community. The chainless white paper introduces this original method in detail in Chapter 3. It is really a pretty creative idea!

12. Construct a community with coin as the link

Let’s talk about building a community connected by tokens. Finding a community that is a magnet to bring people together in the Internet and cryptocurrency world is a bit like a large family gathering. In families, our blood is the tie that binds us together; common beliefs bring together religious communities; group activities are based on interpersonal relationships and common interests; and fans are gathered by common idols or knowledge together. However, in the cryptocurrency community, we seem to be missing a typical community where people can come together based on project tokens.

In cryptocurrency, technology is a bridge connecting technology enthusiasts, but the user community is fragmented, a bit like a large group of people chatting in a WeChat group. In addition, despite the existence of DAOs (Decentralized Autonomous Organizations), their functionality is limited, and it seems that this problem has not been fully solved.

Now, let’s take a look at Mr. Zhu’s thoughts. He believes that the cryptocurrency community should use tokens as a link to build the community into the highest decision-making body of the project. Although achieving absolute decentralization is somewhat difficult because democratic decision-making requires a common will, the hierarchy within the community is a preparation for a representative decision-making mechanism in the future. It means that the cryptocurrency community must gradually transition from an interest community to a decision-making community.

We can divide the crypto community into two categories: one is the unowned community, and the other is the owned community. Projects like Bitcoin and DW20 belong to the ownerless community because their businesses are relatively simple. However, a chainless system is a complex platform, and without an effective decision-making mechanism, problems may arise. Although the founder may exit, the community mechanism still needs to exist, and the owned community needs corresponding checks and balances to ensure that everything runs smoothly. Just like a ship needs a captain, it also requires a capable crew team to ensure it sails worry-free.

13. Establishment of checks and balances and guarantee mechanisms

Let’s talk about checks and balances and reassurance mechanisms. These mechanisms are like safety belts in our lives. Although you hope you will never need them, they can protect you from harm when things go wrong.

First, let’s mention Bitcoin, which has a cool system of checks and balances. There are two main forces in Bitcoin: computing power and programmers. Programmers can change the Bitcoin software, but the computing power can choose whether to accept those changes. Bitcoin clients developed by “Bitcoin Core” account for 96% of the market share. It’s like a game where programmers come up with the rules, but computing power has the final say, telling them whether they agree with those rules. This mechanism works well in a relatively simple system like Bitcoin.

Then, let’s talk about Ethereum. Unlike Bitcoin, Ethereum pays more attention to community development; just like a big family, everyone hopes to contribute to the future. However, Ethereum’s checks and balances mechanism is relatively weak. The Ethereum Foundation represents the core team, but it does not have enough checks and balances. It is like a big family. Parents want the final say, but children sometimes want to give orders.

Let’s talk again about Satoshi Nakamoto, the mysterious creator of Bitcoin. He owns 1.14 million Bitcoins, which has become a stable factor in the Bitcoin system. Like a spare tire, you hope you’ll never need it, but it’s reassuring to know it’s there. Then, we have Chainless Systems, where Yuxing Technology owns 15% of the CLY tokens, but their goal is to ensure the company’s long-term success, not to sell off the stock quickly. This sponsor has voting rights for community decisions, just like a board of directors. They can supervise the core team and form a check-and-balance relationship with the core team.

These highly deterministic designs are like a magnet that can attract more large-scale capital and increase their confidence in the project as if they have found a solid haven in an economic whirlpool. It is the magic of checks and balances and guarantee mechanisms. They play a crucial role in the world of cryptocurrency, like a director on the stage, guiding the development of the entire plot. Like seat belts and spare tires, they provide peace of mind and protect us from harm even in difficult moments.

14. How to operate a chainless system

Okay, let’s talk about how chainless systems operate. It’s like running an unusual business with unique ways of running it.

First, let’s take a look at the distribution method of the chainless coin CLY. In the early days, the core team was responsible for marketing, just like promoting new products to let more people know about the coin. But as time goes by, they will focus mainly on investment and project improvement, just like companies continue to develop new products and improve service quality.

But one characteristic of the chainless system is no manual customer service. It is like a company without a customer service hotline. Instead, customer service is provided by automated systems and community members and moderators. If you need other customer service support, you may need to pay a fee, like hiring an outsourcing company to provide service support. These people are also community members and provide customer service support to the outside world.

In short, chainless systems pursue continuous automation and improved user-friendliness, just like a company constantly introducing new technologies and improving service levels to meet customer needs. Therefore, although the business method is somewhat unusual, it has its unique charm.

15. Can Web3 be constructed using Ethereum technology?

Let’s talk about the processing speed of Ethereum and chainless systems. It’s like two runners in a race. One is slightly slower, and the other is faster.

Ethereum, upgrading to version 2.0, is still a bit slow in processing blocks. It takes about 12 seconds to confirm each block, which still lags behind the centralized system’s processing speed. Therefore, Ethereum needs auxiliary tools like second-layer technology to accelerate, like a long-distance runner using a run-up during a race. However, one thing to note is that because Ethereum uses a proof-of-stake (POS) mechanism, its performance and reputation system have not fully withstood the long-term test.

The chainless system can be seen as a second-tier technology, like a fast sprinter. It operates transparently and centrally and is not as difficult to understand as some complex zero-knowledge proof techniques, like a competition of indirect proofs. From this perspective, Satoshi Nakamoto’s public and private key system is like a complete zero-knowledge-proof technology. Nowadays, mainstream zero-knowledge proof technology is quite complex and not easy to be widely adopted, while the public key and private key system are easier to understand and apply.

The chainless system chose a public-private key system instead of complex zero-knowledge proof technology, probably because it wanted to make the technology more straightforward to understand, just like an athlete choosing a more direct way to compete. Ethereum and Bitcoin can serve as the root of credit in the future of Web3, which is already a huge contribution to human society. However, giving them too much responsibility may not bring significant benefits. Zero-knowledge proof and cryptocurrency were proposed almost simultaneously. Still, Satoshi Nakamoto chose other methods, such as anonymity and public-key private vital systems, as indirect proof, and the market widely supported them. Although zero-knowledge-proof technology has existed for a long time, no representative product has yet appeared. The chainless system chose Satoshi Nakamoto’s technology to present the connection between the general ledger and the sub-ledger. This choice is wise, just like a player making a smart strategic choice in the game.

Second, Functions and technical features

16. DW20 is just an application example of the chainless platform

Okay, let’s talk about DW20. It is not just a small token for a chainless platform; it has great uses!

The birth of the DW20 token is a bit like planting an excellent seed in the garden of the Bitcoin system. This seed grows a token tree of the BRC20 protocol, just like the ERC20 tokens on Ethereum. The initial role of this token is to do clearing and settlement work, like a steward of value coins. However, over time, it will gradually transform into a stablecoin patrolman and assume the duties of Alipay on a chainless platform. In order to promote DW20 tokens, no matter what the price of DW20 is, 1 cent, 10 cents, or $1 will be treated as one dollar, equivalent to subsidizing users with chainless transaction fees.

On the big stage of the chainless system, the CLY token is the star, representing the value of the chainless platform, while the DW20 token is like an intelligent manager responsible for managing various transactions. Unlike centralized currency issuance and exchanges, DW20 adopts a decentralized approach to distribution, which is like giving the right to issue currency to every partner in the community. In this way, the problem of over-issuance of money will be solved, just like no one can secretly print more banknotes. In a centralized system, due to the lack of transparency, it is like playing magic in a black box, and currency over-issuance is risky. Taking USDT as an example, although all transaction data is public, we cannot be sure whether 1:1 USD reserves actually back these stablecoins. However, every step of the DW20 token is transparent, just like a piece of transparent paper, which means that every transaction and issuance can be publicly verified, increasing the security of the asset, just like putting money In a sturdy safe.

17. Implementing smart contracts will realize all financial functions of Ethereum

Hey, let’s talk about the Web3 financial platform, which is like the magic bank of Ethereum, and the secret weapon of this magical bank is smart contracts. The financial functions here do not include NFTs.

You know, Ethereum is a breath of fresh air in the financial world and its secret lies in these smart contracts. These contracts are like the spells of a financial wizard, able to perform various financial tasks without a centralized authority. In a centralized system, this concept is like a bad magic show, too easy to implement, and there will be nothing new. Figure 1 below is an example of the functions of the chainless platform. For a detailed description, please refer to Chapter 1, Section 5 of the chainless white paper. The concept of smart programs used in the figure relates to functions that cannot be achieved or are not easily achieved by Ethereum. Let’s take third-party hosting as an example:

figure 1

18. Implementation of third-party machine hosting

Chainless machine automatic custody and digital asset registration system – one of the applications of the chainless financial platform.

Hey, let me tell you a story. The chainless financial platform is like a relative of Bitcoin. Their family has inherited the wisdom of Satoshi Nakamoto, but it has its unique magic. You can think of the chainless financial platform as a super architect in the financial world. He took the blueprint of Bitcoin and rebuilt a supercity with 100% transparency. This city has the same autonomous spirit as Bitcoin and inherits all the functions of Ethereum. It is like a perfect combination of Bitcoin and Ethereum.

The goal of this super architect is no small. He wants to subvert the rules of the entire financial world, redesign settlement, clearing, and payment methods, and turn the future of finance into the infrastructure of his home. He not only repaired the problems of commercial banks and small payments that the Bitcoin system did not solve but also had the Bitcoin system’s central bank currency issuance function. It is like he achieved the three significant goals proposed by Satoshi Nakamoto back then and did an excellent job!

If you look at it from the perspective of blockchain, the chainless financial platform is like the second-layer application system of Bitcoin. It is the superhero that helps Bitcoin and other blockchain projects realize their dreams. It implements advanced techniques that other projects have been trying to implement.

Just like the little problems in life, there are two significant headaches with digital assets:

First, some people put their digital assets on fast centralized exchanges, but bad guys are always trying to get rid of them, just like you put your valuables in a market filled with thieves. Even if some big exchanges take regulatory measures and increase transparency, thieves in suits will never disappear, security issues remain, and your assets may be embezzled.

Secondly, putting digital assets in a wallet is not a perfect solution, just like putting your treasures in a bag that is easy to lose, and backup and inheritance are not easy.

These two major pain points also had similar phenomena in China’s early stock market, such as the stock market crash caused by the misappropriation of customer deposits by the xx system. It is impossible to replace the early paper stock certificates if lost, which is the same situation as the current wallet mnemonic phrase is lost. With the improvement of the central registration system, the electronicization of stock accounts, and the Bank-Securities Connect, which ensures that exchanges and securities companies cannot use customer stocks and margins, these two problems have been eliminated, and the asset size and trading volume of China’s stock market have increased hundreds of times, growth of. Finally, the Chainless team appeared, like a team of superheroes, with patented weapons to solve these two problems. After discussing the white paper theory, they have achieved full rationality and feasibility in theory and technology.

In view of the current situation of unregulated blockchain, they created a chainless digital asset machine registration system, which functions as a central stock registration company for various applications on the platform and manages users’ assets in disguise. It’s like finding a solid vault for your digital assets to protect them, preventing exchanges and other applications from misappropriating customer deposits. This protection process is automatically completed by smart contracts, just like a selfless and tireless machine guarding your baby.

The characteristics of a chainless general ledger that indeed manages your assets are:

First of all, the core technology of the chainless general ledger is like a clever accountant. He will check every transaction carefully, just like looking at your bill, but he will not make mistakes. These verification processes are like a transparent account book that everyone can see. It is like posting a bill in front of everyone. Your accounting records will be as untamperable as the blockchain, just like a thousand years of incorruptibility. Protected by the cover.

Then, when you make a transfer, you need to sign with the system, just like signing a contract, and the process is like you and the system agreeing to the transaction, and then the transaction will be displayed on the coin indicator like I saw new transaction records in my bank account. To ensure security, the chainless ledger will perform a double confirmation, like when you need to click confirm twice when sending an email. It will be taken care of by a super machine (like an invincible robot in an Ironman competition) check; you can double-check, like reading an important document one more time before sending it off.

Different wallets will have other verification methods, just like various mobile applications require different verification methods, ensuring payment security. The chainless wallet can even be customized according to your needs, just like you can set the notification ringtone on your mobile phone yourself. From direct confirmation to multiple backup confirmation methods on multiple terminals, this will ensure the safety and reliability of your assets.

Finally, it should be emphasized that the private key of the general ledger is different from the multi-signature private key of cryptocurrency; just like in a team, the captain and the team members have different powers. Since Chanless is a reconciliation system, the system’s private key is like a supervisor. Only when everyone confirms that the transaction is correct will give you the green light; just like in an amusement park, only the inspector approves the roller coaster will be launched if it is safe. It is the design of conditional statements, just like the restaurant door will not open if you don’t pay the bill. Therefore, the chainless ledger is a solid barrier to protecting your digital wealth, so your assets are always under your control and can only be moved with your permission.

19. Summary of the technical framework of the chainless platform

The Chainless White Paper looks like a complex map, but don’t worry, I’ll give you a condensed version. This technical summary chart is like navigation, helping you better understand the chainless platform. Let me take it apart and take a look: As can be seen from Figure 2, the chainless platform has legal currency settlement considerations. If USDT stores U.S. dollars in the banknote-issuing bank, the Federal Reserve, its opacity will become transparent. The figure shows that issuing legal currency to cryptocurrency must follow the BRC20 or ERC20 protocol. Then, a “cross-chain conversion” section explains how chainless can achieve interoperability between cryptocurrencies, just like a translation tool between other languages. Next is “User Control,” which means that your assets are entirely under your control, just like your wallet is in your pocket. Finally, there is the “chainless system verification” part, which means that Chainless will not manipulate user data but only plays a role in checking and accounting, like a neutral referee, only responsible for confirming the game’s results.

The meaning of each technical feature is described below. Chainless tokens and transaction tokens have been discussed, and we have not started with them.

figure 2

20. Reconciliation system

Transferring money is to send money from one place to another. The most crucial thing in this process is to ensure the accuracy of the transfer, which is the core function of the financial system. It’s a bit like the kind of goal call you see in soccer, where you must ensure the ball has crossed the goal line. Therefore, double confirmation is usually adopted.

However, when it comes to transfers between different banks, direct mutual confirmation is impossible, so a common practice adopted by banks is to require a secondary confirmation from the sender. The double-check process requires user approval before the actual funds transfer is performed. It is a very reliable method because once funds are mistakenly transferred, it is difficult to recover them.

A sound system should be carefully designed to ensure that the accuracy of accounting can be verified even in a distributed system. Within the chainless system, fund transfers are all carried out in the same system, so confirmation by both parties can be easily achieved, and secondary verification can be performed when necessary. This process helps effectively prevent the risk of hacking and improper transfers.

21. The general ledger must be balanced

When it comes to a chainless ledger, imagine it is like a magical ledger that records everyone’s digital wealth. This ledger is transparent, like your window; anyone can see what’s happening inside.

There are many small accounts in this ledger, which magic keys designed by Satoshi Nakamoto control. The magic key has two parts: public (public key), just like your house number, everyone can know it. The other part is private (private key), just like the key to your home; only you can open it.

There are many small accounts in this account book, and each account is like a mini-safe containing various digital treasures. Every time you make a transaction in this account book, it will be automatically recorded in this account book, just like putting a treasure in or taking out a treasure from your safe. That is to say, each user sub-account contains all transaction data of a specific cryptocurrency, and the sum of the latest data of the sub-account is equal to the storage data of the corresponding cryptocurrency in the general ledger.

There’s a magic trick here: although you can see all the transactions in the ledger, you can’t open the safe and take the treasure. Only the safe owner can use their private key to open the safe and remove the treasure.

All in all, the chainless general ledger is like a transparent account book that everyone can see, recording the flow of digital wealth. Still, only the account owner can truly control their digital treasures.

This ledger is like a magic index that tells you what everyone is up to. Just like you only care about the latest phone numbers of your friends, this indexed ledger only cares about the latest transactions for each user’s subaccount. Since the general ledger only contains the newest transaction records of the user’s sub-accounts, it actually acts as an index for the sub-accounts, so it is called an indexed general ledger. This form of system is the third form of ledger for cryptocurrency.

22. Transaction journal

This account is equivalent to the ledger of the blockchain. Calculate a hash value by creating an account page in one minute, then hash the hash value again by the hour. You can calculate the daily hash value as needed, and uploading it to the chain will be cheaper.

23. Real-name or anonymous user settings

Anonymity is the tradition of cryptocurrency, and chainless systems support anonymous registration and transfers. Traditional finance supports real names. Registering your real name lets you quickly log in to other financial systems.

24. Multiple signatures and multiple backup wallets

A multi-signature, multi-backup user wallet is like a super-secure safe in the digital world. Although it is a bit cumbersome, it can provide top-level security protection. It can adjust the privacy level as needed and automatically inherit it, which is very helpful for decentralizing the financial system. It’s like a fortress of digital wealth! For small amounts, you don’t need to sign more. It could reduce the trouble.

25. One-person systems and machine trust

Trust is a funny thing, just like the loyalty you have in your cooking skills or your dog. We all know that trust takes time to build. And, the fewer people and steps involved, the easier it is to build trust like you only trust your family to care for your dog, not strangers.

The same is valid for machine trust. The longer the trust time, the better; the fewer people you trust, the better; the fewer trust links, the better; the safer the trust links, the better. Together with decontrol, these constitute the principles of machine trust.

Now, let’s talk about Bitcoin. It is a model of machine trust because its core software was designed and developed by a mysterious figure named Satoshi Nakamoto. It is the ultimate level of trust; the fewer people involved, the better because there is only one person! So much so that we could say he is a digital ghost.

Bitcoin is a distributed accounting system. Compared with a centralized system, it has more trust links, making it less secure than a centralized system. In a world of machine trust, centralized systems often win. However, centralized systems have their own problems, as they are easily controlled.

In short, trust is a long process, just like cultivating friendship. Bitcoin is revered for its single creator, while Ethereum 2.0 will take time to prove itself. Regardless, the cryptocurrency world is always full of surprises, like when your dog suddenly does a new trick.

26. Conclusion

The text is my excerpt. It is far less profound than the chainless white paper. It can only be regarded as a “fast food version” of that white paper. If you are interested in this topic, you should not just be satisfied with fast food, but enjoy the white paper of a luxurious meal!

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