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Engine of theNext Generation Economy
5th Chain provides core infrastructure to build next-generation economy.
Everyone profits from consumption.
White Paper V0.6
Fifth Foundation Ltd.
Contact Us
Fifth Foundation Ltd. was registered in Singapore and jointly launched “5th
Chain” project with an investment institution, ALA.
Goal of the Foundation: to guarantee research and development and
maintenance of 5th Chain, manage the operation of the 5TH token, and coordinate
with 5Mall and other DApps.
Foundation: [email protected]
Token Info: [email protected]
Public Relations and Others: [email protected]
Fifth Foundation Ltd.
Joint Investors
Following list is in no particular order.
Joint Investors
Table of Contents
Table of Contents
1 Background …………………………………………………………………………
2 5th Chain: Engine of the Next-Generation Economy…………………………
3 5Mall: Forerunner of the Next-Generation Economy ………………………
4 5TH: Token of the Next-Generation Economy ………………………………
5 Roadmap ……………………………………………………………………………
6 Risk Disclosure ……………………………………………………………………
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2.1 Parent Blockchain of 5th Chain ………………………………………………
2.2 5VDN: Value-Delivery Network of 5th Chain ………………………………
2.3 5ESS: Enhanced Storage Structure of 5th Chain …………………………
2.4 Consumption-Profiting Transaction Explorer ……………………………
2.5 Quantitative Node ……………………………………………………………
2.6 Ecosystem ……………………………………………………………………
4.1 Issuance Plan …………………………………………………………………
4.2 Consumption-Profiting Mining ……………………………………………
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Background
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1 Background
There are four economic forms in human society: agriculture economy, industry
economy, service economy and experience economy.
Agricultural products address people’s basic needs of food, clothing, and
housing etc. Industrial products address people’s needs in using products, and
significantly reduce product costs through standardization.
Service economy is more about reducing people's fatigue, or reducing energy
and time that people spend, making people feel convenient and satisfied.
The experience economy is an extension of service economy, which regards
goods as props, service as stage, experience as main economic provision,
emphasizing customers’ sensibility satisfaction, and emphasizing the customers’
psychological experience when their consumption behavior occurs. Customers are no
longer just buying real goods or services, but also emotional, physical, intellectual and
even spiritual experiences, which has changed industries from industry to agriculture,
computer industry, Internet, tourism, commerce, services, catering, entertainment etc.
However, long evolution between agriculture economy, industry economy and
service economy to experience economy, does not deviate from the basic model of
“producer-product-consumer”, and economic system of the whole society still has
great limitations, the speed of economic development has gradually reduced or even
stagnated. Humans need new economic model to bring revolution to society.
Under this background, base on blockchain technology, 5th Chain provides core
infrastructure to build next-generation economy system, promoting humans into the
fifth-generation economic form: consumption-profiting economy.
5th Chain: Engine of the Next-Generation Economy
2 5th Chain: Engine of the Next-Generation Economy
As the engine of the next-generation economy, 5th Chain’s system framework
closely integrates Merchant-on-Blockchain(“MoB”) ecology and economic model, and
breaks through the boundaries of production, consumption and investment, converting
all participants’ “consumption” to “equity” in the ecosystem. Through whole process
of value transfer, profit transfer and transaction traceability of economic ecology that
5th Chain carries, It achieves the transformation of economic form, establishing a
decentralized, positive-circulating next-generation economy system.
Each consumption-profiting transaction will be passed on the chain. Each
trading behavior will trigger the resonance of merchant nodes, consumption nodes
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5th Chain: Engine of the Next-Generation Economy
2.1 Parent Blockchain of 5th Chain
The 5th Chain uses the extensible architecture combined with parent blockchain
and side chain, providing reliable, stable and fast basic support for blockchain overall
performance, data privacy, multi-ecosphere, fast payment etc.
Parent blockchain is the basis of 5th Chain, mainly for address management,
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DApps
Open SDK/API
5TH Core
Wallet Transaction Explorer
5Hash 5ESS 5VDN 5Proof 5Pool ...
Developer Tools
Index Optimizer
and quantitative nodes, and will promote the next consumption-profiting transaction.
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Abstract Blockchain Interface
5th Chain
Sidechain
Sidechain
Sidechain
Exchange Channel
Exchange Engine
Side chainInterface
Side chainInterface
Side chainInterface
side chain management, encryption management; side chain can build its own
ecosphere, achieving its respective business sub-cycle, and each side chain can also
deliver and exchange their own consensus and value with each other.
The 5th Chain uses SHA256 digest algorithm and ECC encryption algorithm
to encrypt on-chain data, realizes communication through main network protocol,
Stratum network protocol and sharding network protocol, and its P2P network
is realized through Kademlia(“Kad”) algorithm, and stores data by referencing
Hyperledger Fabric blockchain distributed storage technology.
5th Chain: Engine of the Next-Generation Economy
2.2 5VDN: Value-Delivery Network of 5th Chain
In the 5th Chain network, distance between nodes of P2P’s Kademlia(“Kad”)
algorithm is logical distance, which is calculated through XOR’ing node ID.
If distance between a target node and local node is in the range of [2(i-1),
2i ], that node will be classified as “K-bucket I”. For example, the distance between
the node with node ID of 000111, the node with node ID of 000110 and the node with
node ID of 000011 is calculated as: 000111 Å 000110 = 000001(Decimalism 1), 000111
Å 000011 = 000100(Decimalism 4). According to the above algorithm, in K-bucket
whose node ID is 000111, the node with node ID of 000110 is assigned to “K-bucket 1”,
while the node with node ID of 000011 is assigned to “K-bucket 3”.
This way of using XOR to calculate distance, is equivalent to organizing the
entire network topology into a binary prefix tree. All the nodes mentioned here are
distributed on the leaf nodes of the binary prefix tree, and this organizational form is
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5th Chain: Engine of the Next-Generation Economy
2.3 5ESS: Enhanced Storage Structure of 5th Chain
The storage structure of 5th Chain references the storage system of Hyperledger
Fabric, just like Bitcoin, also composed of common file and K/V database(LevelDB/
CouchDB).
Final LevelKey value stored in K/V database of the block index information
format of 5th Chain is composed of a prefix flag and a block hash. LevelValue value
consists of block height, block hash, local file information (file name, file offset,
etc.), offset list for each transaction in the file, and block MetaData. The 5th Chain
splices the above information into values in the database according to a specific
coding method. Final LevelKey value stored in K/V database of the transaction index
information format of 5th Chain is composed of the key values in channel_name,
chaincode_name and chaincode:
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equivalent to classifying the distance of the nodes by each of their node IDs.
5th Chain: Engine of the Next-Generation Economy
2.4 Consumption-Profiting Transaction Explorer
The 5th Chain will offer consumption-profiting transaction explorer that
adapted to parent blockchain, open query and verification of consumption-profiting
transaction information, including:
record verification of consumption-profiting transaction;
transaction amount, data of mining computing power, consumption-profiting
profit etc.
verifications of merchant nodes, consumption nodes, quantitative nodes.
Consumption-profiting transaction explorer has now completed the first phase
of research and development, running on the test network, and supporting the query
of the transaction summary.
LevelKey = channel_name + []byte + chaincode_name + []byte + key
The value of LevelValue is composed of the BlockNum block number and the
number of the TxNum transaction in block. The 5th Chain encodes the block number
and the transaction number in a specific way, and then splices with the value in the
chaincode to finally generate the value in the database.
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5th Chain: Engine of the Next-Generation Economy
2.5 Quantitative Node
Quantitative nodes participate in every transaction on 5th Chain, making that
everyone's rights and interests can be realized from consuming mining power. MoB
economy will become a new round of growth in consumer finance and supply chain
finance.
The 5th Chain continues to evolve its algorithms to automate the search
procedure of fittest selection and global portfolio optimization. This framework
is designed with the purpose of sifting through multiple liquidity sources and
combinations to find goodness of fit. Individual solutions are selected through
quantitative-based processes, where fitter solutions (as measured by fitness
functions) are more likely to be selected. Fitness functions are defined and ranked
as classifications of desired characteristics based on margin, volatility(real-time),
risk, return, exposure and execution costs. Fitness functions are criteria for superior
selection.
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Maximum Retracement Rate Formula: Drawdown=max(Di-Dj)/Di
5th Chain: Engine of the Next-Generation Economy
Variance Formula: S =(Xi- )∑ X
2
2
n
R
i
Strategy Formula: Max(Weight*Avg(Y)/Weigh*Variance (Y))
=1
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2.6 Ecosystem
The 5th Chain ecology is a distributed value transfer system that covers
e-commerce, social activity and finance, and achieves artificial intelligence,
consuming transactions, interconnection and value sharing. The autonomous
economic system that 5th Chain built operates around consumer behavior, business
behavior, social behavior, will replace indiscriminate traditional business path, to
become a new value standard for the future MoB world.
The open-source community of 5th Chain creates a future-oriented
decentralized open-source public blockchain and a widely-used DApp system,
chaining ontology data of all 5th Chain open-source community participants,
confirming the rights, having the value of continuous growth, and finally empowering
humans through consumption-profiting economy.
5th Chain: Engine of the Next-Generation Economy
The 5th Chain ecosystem takes node as support, community as link, value as
venation, mining power as core, builds a value deep network ecology to achieve
"Consensus", "Collegiality", “Co-Sharing", “Coalition" and “Co-Right” of business
value in MoB era.
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5th Chain: Engine of the Next-Generation Economy
5Mall: Forerunner of the Next-Generation Economy
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3 5Mall: Forerunner of the Next-Generation Economy
The 5Mall is an important partner of 5th Chain. As the first DApp in 5th Chain
ecosystem, 5Mall is a model for practicing consumption-profiting economy. Merchant
nodes, consumption nodes, quantitative nodes form a cycle of consumption-profiting
transactions through 5Mall. Every consumption behavior will trigger the resonance of
the system ecology.
The 5Mall is more than just a “Blockchain Amazon” which uses the shared
consumption mining power mechanism as the engine, which is also a DApp MoB
platform that integrates the whole ecological scenes such as mining pool, wallet,
transaction and investment. Consumption-profiting consumption will change
traditional consumption concept, making everyone, including Merchant-on-Blockchain
and Customer-on-Blockchain, benefit from development of the next-generation
economy.
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4 5TH: Token of the Next-Generation Economy
Base on system carrier of smart contract, 5TH token has decentralized value
measurement, payment ecology, transaction storage, contribution motivation and
other attributes.
The 5TH tokenizes points, integrates the asset island of traditional business,
realizes consumption-profiting transaction with 5Mall and other 5th Chain DApps, and
will become basic element of the next-generation economy system.
5TH: Token of the Next-Generation Economy
5TH: Token of the Next-Generation Economy
4.1 Issuance Plan
The total amount of 5TH issuance is constant at 2.2 billion, and will never be
issued more.
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4.2 Consumption-Profiting Mining
Every transaction that runs on 5th Chain will process consumption-profiting
mining through quantitative nodes, and continue until the transaction completed.
Every tiny business behavior can drive long-term fission of the entire system.
Customer nodes participate in consumption-profiting transaction by using 5TH
Token, deliver value to merchant nodes through 5th Chain DApps, and transmit a
certain percentage of the “MoB Fund” to quantitative nodes, and quantitative nodes
will carry out consumption-profiting mining. The speed of mining varies with the
efficiency of quantitative nodes.
5TH: Token of the Next-Generation Economy
The proportion of MoB Fund varies with capacity of the 5TH consumption-
profiting pool. For every 10% reduction in consumption-profiting pool, the proportion
of MoB Fund will increase by 1%.
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5TH: Token of the Next-Generation Economy
5 Roadmap
Roadmap
2018-01Foundation Established
2019-095Mall DApp Release
2021-065th Chain Main Network
Trial Running
2019–08Consumption-Profiting Transaction Explorer Internal Testing
2020-125th Chain Parent Blockchain Testing
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Risk Disclosure
6 Risk Disclosure
This white paper is only a project information introduction, and does not
constitute any form of sales. The dissemination of this white paper by any party will
not constitute a public promotion.
This white paper has not been reviewed by any supervisory institution or
administrative organs. In light of the instability and changes in related policies, laws,
regulations, technologies and other factors, the information provided in this white
paper may not be accurate or final. The matters set out in this white paper are for
reference only and do not have any legal effect.
At the same time, in order to ensure the stability, consistency and flexibility
of the relevant system, Fifth Foundation Ltd. has the right to update the relevant
contents of this white paper. Please be sure to obtain the latest version of the white
paper in time.
In view of the attributes of the business model of the project and the project in
the early stage of development, 5th Chain and related applications in this project will
be regarded as high-risk projects. Participants should understand the potential risks
of the project, and make rational decisions after assessing their financial situation
and risk tolerance.
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Engine of the Next Generation Economy
Visit the official website for more informationhttps://5th.world