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Whitepaper Draft

· 17 min de lectura

Financial Network based on Digital Currencies and Digital Identities

Abstract​

In a world interconnected by data, complex systems form intricate networks. To comprehend these networks, we must delineate their architecture, transforming the chaos of vast data and networks into structured, comprehensible models.

Networks can be categorized into:

  • Physical (natural)
  • Digital (relational)

Money, a human construct, often reflects natural systems, as humans are also part of the natural world. In nature, networks facilitate communication and adhere to specific rules and functions. Examples include:

  • Financial networks
  • Social networks
  • Quantum networks (involving photons)
  • Mycelial networks

Finance is often represented through graph functions, where graphs depict networks and their characteristics, influenced by underlying rules integral to or affecting the network.

By examining the flow and protocols governing these networks, we can unlock numerous possibilities.

Summary Points​

  • The advent of digital currencies and identities heralds a transformative era for the financial sector, breaking traditional barriers. The ƒxyz network aims to simplify complex financial networks, enhancing the efficiency of value transfer, exchange, and creation. Utilizing digital currencies and identities fosters a more efficient, secure, and transparent financial ecosystem for all participants.
  • Interconnectivity and data ubiquity mean that connections, whether direct or through a network member, facilitate knowledge and value transfer.
  • We prioritize the security of our members/nodes by advocating for off-chain asset storage through Cube exchange and promoting cautious interaction with the financial world, digital or otherwise.
  • Our network's integration with both permissioned and permissionless networks enhances our access to diverse markets.
  • Natural networks, though operating in distinct clusters with unique missions, contribute holistically to the system.
  • Contributing to our community significantly benefits us.
  • We aim to synchronize the digital and traditional financial worlds using standards like the FIBO ontology.
  • Recognizing humans as legal entities with multiple personas, including online identities, underscores the necessity for digital capabilities like memory, reasoning, and value.
  • Our value network ensures data encryption to a degree that only authorized individuals can access it.

Questions​

What​

  • Simplifying Complex Financial Networks
  • Enhancing value transfer, exchange, and creation

Why​

The financial realm's complexity often obscures the underlying value flow, making it inefficient. By stripping away this complexity and identifying patterns, we can enhance system/network efficiency, given the interconnected nature of all components.

Currencies, representing primary value, are predominantly traded over-the-counter, which obscures transparency and elevates access barriers, allowing layers of secrecy that empower the knowledgeable at the expense of the less informed.

How​

  • Leveraging Collective Human-Machine Intelligence
  • Utilizing Blockchain Networks
  • Implementing Digital Currencies
  • Employing Knowledge Graphs
  • Developing Distributed Compute Networks
  • Managing Informal and Formal Value Transfer and Exchange Networks
  • Operating Decentralized Autonomous Organizations
  • Applying Holacracy Management
  • Integrating Machine Learning and Artificial Intelligence (NLP, GNN, GCN)

Why Now​

The rapidly evolving landscape necessitates timely adaptation to prevent spillover effects.

What We DON'T Do:​

  • Retain user funds or data without explicit agreement via digital or physical contracts
  • Engage in profitless activities or connected reward schemes
  • Participate in uncertain or risky trades
  • Risk more than transaction fees or currency depreciation

What We DO:​

  • Obscure all received data and employ research anonymization tools
  • Implement risk-free trading algorithms
  • Manage collective funds to facilitate earning, transferring, and exchanging money
  • Uphold anonymity while respecting legal boundaries
  • Conduct anti-money laundering (AML) and fraud detection
  • Operate autonomous groups tasked with specific functions
  • Share open-source logic and code with our community and affiliates

What's Next​

  • Expand our membership, user base, legal entities, and liquidity
  • Initiate onboarding through Telegram
  • Establish the Genesis Circle (Main DAO formation) and subsequent DAOs
  • Provide a knowledge base via multiple interfaces (chatbot, dashboards)
  • Develop functions for transfers, exchanges, and creation
  • Raise funds for machine and human agents
  • Cover development costs
  • Create applications (Arbitrage calculator, market overview, data dashboard)
  • Map all blockchains and financial entities
  • Forge partnerships across various sectors
  • Connect with major stablecoin firms (at least 4-5)
  • Transition to graph databases, AI backend, vector databases, etc.
  • Prepare for the quantum computing era

DAOs & Holocracy​

Holocracy offers a decentralized management framework that eliminates traditional hierarchical structures, fostering clear roles, expectations, and boundaries while ensuring alignment. DAOs (Decentralized Autonomous Organizations) automate governance through voting mechanisms but sometimes lack the human judgment essential for certain decisions. Integrating Holocracy with DAOs combines human insight with automated efficiency, creating a dynamic governance model that leverages the strengths of both systems.

This hybrid model is ideal for organizations seeking the benefits of decentralized governance and efficient management. It merges Holocracy's decentralized authority structure, which empowers individuals within defined roles, with the automation and scalability of DAOs.

By integrating Holocracy and DAOs, we create a robust framework that addresses the limitations of each system while capitalizing on their strengths, aiming for decentralized community governance and effective centralized management.

Members​

Members are anonymized and linked to wallets, emails, and other identification systems, maintaining varying levels of privacy:

  • Public figure
  • Anonymous
  • Pseudonymous
  • Private

"Identities can be disclosed programmatically (under predefined conditions) or manually upon initiating contact."

Circles​

Our network comprises various circles—closed networks of people, groups, and companies sharing information and resources. Governance within these circles can be through sub-DAOs or traditional methods, with access to internal data requiring connection to a circle member or formal membership, such as through NFTs or tokenized contracts.

Roles​

  • [List specific roles here]
  • Skills
  • Connections
  • Etc.

Partners​

"Wherever we aim to go, someone is already there waiting for us."

Technology Partners​

  • Solana - Application layer
  • Ethereum + Bitcoin
  • Cube - Settlement, vault, and more
  • Openbb - Data toolstack for data collection, transformation, analysis, and presentation
  • Telegram - Communication and application entry layer, TON blockchain integration, Telegram anon # integration

Business Partners​

Partnerships are essential for various operational aspects, such as:

  • Direct stablecoin purchasing
  • Smooth banking operations
  • Technical issue resolution
  • Quick response times
  • Competitive quotes
  • Etc.

Security, Privacy & Anonymity​

We prioritize privacy and security while maintaining trust through technology verification.

Digital currency holders, whether dealing with cryptocurrencies, stablecoins, or CBDCs, have undergone some form of verification, placing them in a potentially risky position.

Our approach is to maintain pseudonymity, offering a balance where certain entities, organizations, or internal sub-DAO members can verify identities and funds without accessing all private data.

For enhanced privacy and anonymity, we plan to integrate with various zk protocols and technologies, alongside:

  • AML functions
  • Anti-fraud functions
  • Extensive KYC checks
  • Transparency for members

Multi-level Encryption​

  • Anonymous
  • Pseudonymous
  • Public

Financial Cryptography​

"Don't trust, verify."

  • Employ dynamic hashing algorithms for privacy, anonymity, and pseudonymity, incorporating Solana's Proof of History in our encryption methods.
  • Utilize Multi-Party Computation
  • Implement additional privacy layers

Financial Cartography​

We map everything using graph-based tools, allowing for queries, visualizations, and interactions.

Patterns​

Patterns are omnipresent; we need to identify them. A minimum node count is required for patterns to emerge (Ramsey number). Our goal is to transition from mazes to structured trees in our pattern analysis.

Value Domain (Layer)​

  1. Digital currencies:
  2. Stablecoins
  3. CBDCs
  4. Cryptocurrencies
  5. Digital Assets
  6. Tokenized Commodities
  7. Tokenized Real-World Assets
  8. Digital Financial Assets

Social Domain (Layer)​

  • HumanBeing -> LegalPerson -> OnlineID -> Persona -> Member, Partner, User, etc.
  • Trust, guidance, and intelligence are crucial, hence the need to preserve anonymity while allowing trust in something tangible.
  • Humans possess online identities, referred to as Personas.

Tech Domain (Layer)​

Our system evolves with each iteration, improving as different paths are explored.

The ever-updating graph incorporates new knowledge and human guidance.

News is evaluated, processed, and integrated into our updated graphs.

Data Domain (Layers) - Transfer, Exchange, and Creation​

  • Data is a valuable asset.
  • Everything is characterized by data.
  • Attributes/properties: volume, variety, complexity
  • Data about users, members, products, partners - master data - core data
  • Tagged data - metadata

Comms Domain (Layer)​

  • Telegram
  • Tether

Physical Real-world Layer​

  • Humans
  • Machines
  • Energy

Science Domain (Layer)​

Network Applications

This section highlights the essential applications supporting the network's infrastructure, developed and maintained by a team of domain experts, liquidity providers, developers, and the DAO. These applications, while not always directly visible to users, are crucial for the network's seamless operation.

Infrastructure and Core Technologies​

  • Onchain E-spot FX: Execution of on-chain foreign exchange spot transactions.
  • Exchange: Platform for currency and asset exchanges.
  • Communications Network: Secure and efficient communication channels.
  • Security: Robust security measures to protect the network.
  • Payment Infrastructure: Backend systems for electronic payments.
  • Remittance Infrastructure: Mechanisms for cross-border money transfers.
  • OnOfframp Network: Interfaces for digital-to-fiat currency conversion.

Data and Analytics Tools​

  • Data Analytics: In-depth analytics and insights on digital currencies.
  • AI Bot: AI-driven assistance for data analysis and automation.
  • Sanction Check: Compliance tools for regulatory standards.

Optimization and Strategy Features​

  • Algorithms: Optimal path-finding algorithms for currency transfers.
  • Currency Transfer Optimization: Enhanced transfer mechanisms.
  • Arbitrage: Tools for statistical and triangular arbitrage strategies.

Mapping and Navigation​

  • Maps: Graph-based financial navigation tools.

User Facing Products​

User-facing products provide intuitive interfaces for end-users, abstracting the complexity of the network's backend systems.

Transaction and Exchange Interfaces​

  • Retail FX: Interfaces for retail foreign exchange and currency swaps.
  • Transfer Services: Platforms for domestic and international fund transfers.
  • On/Off Ramp Services: Gateways for digital currency adoption and liquidation.

Liquidity and Wealth Management​

  • Intelligent Liquidity Management Tools: Applications for managing and optimizing liquidity resources.

Compliance and Security Services​

  • AML/KYC Checks and Fraud/Crime Detection: Compliance and security systems for transaction monitoring and fraud prevention.

Remittance and Payment Solutions​

  • Remittance Agencies: Services for sending money across borders.
  • Payment Enterprises: Comprehensive systems for processing various payment transactions.

Timeline - Roadmap​

Initially, startups often spend years in research. Although our goal was early profitability without relying on token sales, we faced challenges but gained valuable insights. Now, we are fully prepared to implement our strategies on a larger scale.

  • We have established data connections and specific protocol integrations.
  • Our blockchain connections are finely tuned.
  • We have tested various trading strategies based on scientific research.

The forthcoming developments are clear, and we have built a robust knowledge and network foundation. We believe we have reached the necessary node count for effectiveness, allowing us to expand across multiple dimensions and layers by collectively analyzing multiple variables and their outcomes, always aiming to benefit the network as a whole. Various individual elements contribute to this goal, but the overarching objective is to act as a unified entity: sharing wealth and knowledge and evolving based on continuous learning.

Accounting/Bookkeeping​

Challenges​

  • Regulatory and liquidity challenges are addressed by network members in various countries, akin to a blend of the banking system, hawala network, and cryptocurrencies. By holding money both digitally (across multiple blockchains) and physically (in various countries), and ensuring each entity's legal compliance, we can bypass comprehensive network-wide compliance, allowing the network to function as a digital organism.

Tokenomics​

  • The project is not centered on any single individual, hence token allocation is minimal and spread over a long-term perspective.
  • Anchor Circle (main team): 10% - 10-year vesting (1% per year)
  • Operations Circle: 10%
  • Early Contributors: 10%
  • Partners, advisors, etc.: 10%
  • Seed Circle (first investment round): 10%
  • DAO: 50% - Distributed among users, liquidity providers, community members, developers, and partners through the DAO for management and organizational purposes.

Investment​

  • Friends and Family: 5% @ $5MM+
  • Private: 5% @ $10MM+
  • Strategic Seed: 10% @ $20MM - $25MM

Costs​

  • The majority of costs are allocated to a boutique team (5-7 people, $5-10K USD/month per person) and expenses related to hardware, software, and AI, including calculations, graph databases, etc.
  • Minimal marketing expenses
  • No listing fees
  • No short-term profit from token sales

Data equals money – data is money.

Fxyz Network: A Living Document

Documents​

  • Advanced localization, including user experience customization

Ontology​

  • FIBO ontology serves as the foundation
  • Formalizes data, making it machine-readable
  • Standardizes data across the network
  • Graph Schema includes OWL and RDF

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