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PAZ Project

WHITE PAPER ver. 1.2


Important Disclaimer About this Document

Participants should read and understand this section carefully in order to clarify

uncertainties or ambiguities regarding legal and financial matters directly or

indirectly related to the contents of this document, and to avoid unnecessary

difficulties, disputes, and legal actions in the future. Should you have any

uncertainty in making a decision or taking action regarding this document, you

must consult a suitable expert.

PAZT, as defined and explained in this white paper, is a utility token and stable

coin used for remittances, and PazCoin is token that are listed and distributed on

exchanges through ICO.

As defined and explained in this whitepaper, PazCoins do not constitute securities

in any jurisdiction. This whitepaper is not intended to offer any kind of guide or

sale, nor it is intended to promote a bid for or investment in securities in any

jurisdiction.

This document does not require or sell PazCoin. Participants should not use or rely

on any information contained in this document as legal evidence in future

transactions, contracts, or investments regarding PazCoin.

PAZ Foundation will become the governing foundation that oversees the PAZ

project and manage all payments and contributions for PazCoin in order to provide

funds for PAZ-related business and operations.

No person is liable for making any legal agreement pertaining to the sale, purchase,

World’s Most Beautiful Cryptocurrency A blockchain-based Ecosystem for Donation and Currency Exchange


or donation of PazCoin based on this document, nor can this document be used

as grounds for sending or receiving payment in cryptocurrency or in other

currencies.

The terms and conditions of any contract between the participant and PAZ

Foundation relating to the sale, purchase, or donation of PazCoins, or any other

matter, will be defined by a separate document and have no relation to this

whitepaper. In the event that a discrepancy is found between that contract and this

whitepaper, the former prevails.

You are not eligible to purchase PazCoins if you are a citizen or permanent resident

in a country where the public dissemination of cryptocurrency is prohibited or

considered as stock trading.

This whitepaper clearly states the presence of unforeseen risks and uncertainties

associated with PAZ Foundation and the business and operation of PazCoin. The

document also states that the participant must perform due diligence before

deciding to purchase PazCoin. While the producers of this document have taken

extreme care to ensure that the contents are true and accurate, participants should

fully understand that this whitepaper advises against blindly relying on the contents

of this document or making a decision without having undergone a verification

process.

Denial of Liability for Loss

To the maximum extent permitted by the applicable laws, regulations and rules,

and in any matter related to this document, PAZ Foundation and the operators of

the PAZ business will not be liable for loss of any kind, including financial or non-

financial loss, including but not limited to loss of sales, income, profits, rights,

reputation, or data.

Participant’s Agreement and Warranty


By recognizing and acknowledging the authenticity of the full or partial content of

this whitepaper, on behalf of PAZ Foundation and PAZ Foundation, you agree on

and warrant the following:

You agree and acknowledge that PazCoins are not defined as or constitute a

security of any kind under any jurisdiction.

You agree that this whitepaper is not a guide for or recommendation of any kind

of sale or donation, and that it does not promote securities or seek to attract

investment in securities or contributions in any jurisdiction, and that you are not

liable to make any kind of agreement.

In the case that you purchase PazCoins, you acknowledge and agree that PazCoins

cannot be interpreted, classified, or handled as follows:

§ Any currency other than cryptocurrency

§ Bonds or shares issued by any individual or entity

§ Rights, options or derivatives on bonds or stocks; or other securities

You acknowledge and fully understand that if you are a citizen of or have a

residency in a country where the public dissemination of cryptocurrency is

prohibited or considered as stock trading, you are not eligible to purchase PazCoins.

You are fully aware that there may be unforeseen risks in future operations related

to PAZ Foundation, its business and operations, and PazCoin.

You acknowledge and agree that Paz Foundation will not be liable for any kind of

financial or non-financial loss including but not limited to loss of sales, profit, or

data.

Risks and Uncertainties

Prior to purchasing coins, prospective buyers of PazCoin must carefully consider


and evaluate all information contained in this whitepaper, legally binding contracts,

and all associated risks and uncertainties that are related to PazCoin. If some of

these unforeseen risks and uncertainties develop into real conditions, they can have

a significant impact on PAZ Foundation’s business, financial status, and operation

results or prospects, in which case you may lose all or part of PazCoin’s value.


Table of Contents Background ................................................................................................................ 7

1. Vision of PAZ Project ......................................................................................... 15

PAZ Remittance ...................................................................................................... 15

PazDex (Decentralized Exchange) ............................................................................... 21

n PAZT to PAZT ................................................................................................... 25

n PAZT to Fiat Currency with PazDEX ....................................................................... 25

2. PAZT Cryptocurrency ......................................................................................... 27

PAZT: A Blockchain CryptoCurrency ............................................................................ 27

Implementation: GoChain GO20 Token ........................................................................ 27

3. The PAZ Clients ................................................................................................ 29

KYC Process ........................................................................................................... 29

4. Paz System Blockchain ....................................................................................... 30

The Creation of PAZT and the Ledger: GoChain compatible with Ethereum ........................ 30

5. PAZ Foundation ................................................................................................. 33

Summary .............................................................................................................. 33

Governance Goals ................................................................................................... 33

Development Goals .................................................................................................. 34

Organizational Goals ................................................................................................. 34

PAZ Foundation: A Foundation for the PAZ Ecosystem ................................................... 34

Summary .............................................................................................................. 35

6. Issuance of PazCoin for ICO (ERC20) ..................................................................... 36

Allocation of PazCoin .............................................................................................. 36

Investment of Tokens .............................................................................................. 37

7. Roadmap ......................................................................................................... 39

............................................................................... 오류! 책갈피가 정의되어 있지 않습니다.

8. Conclusion ....................................................................................................... 40

9. PAZ Foundation ................................................................................................ 41

Key Personnel and Advisors ...................................................................................... 41


Background

The history of banks began 2,000 years ago with the loaning of grain. Later, the

ancient Greek and Roman empires adopted the acts of depositing and exchanging

currency. Since then, we have always been very naturally accepting of the involvement

of banks in our every transaction.

Currently, when individuals exchange currency, they do so through banks without a

second thought. Most people do not see banks as middlemen like they do real estate

agents. Then in November of 2008, an anonymous programmer under the name of

Satoshi Nakamoto claimed that a bank, or a third party, is in fact completely

unnecessary in individuals’ exchanging of money.

He, she, or they, released Bitcoin to the world, announcing that “The central bank

must be trusted not to debase the currency, but the history of fiat currencies is full

of breaches of that trust.”

The world has already made rapid progress with blockchain, the core technology of

Bitcoin. The progress is synonymous to how a population that only used cash has

evolved to one where everyone uses a plastic credit card – but the pace of change

is so rapid that even when compared to the speed at which the Internet changed

the world, it triumphs.

While blockchain is a system of distributed transactions that doesn’t require a central

bank, numerous banks around the world are in turn racing to study blockchain and

showcase its implementations. Meanwhile, Satoshi Nakamoto released to the world

an open-source program that demonstrates the ideologies of blockchain.

Since then, more than thousands of cryptocurrencies including Ethereum have come

into existence, and we have already entered the path to a world of cryptocurrencies

and blockchain-based systems. Cryptocurrency and blockchain have been proven to

be of value by the demand from the market and from the people like us, despite the


controversy surrounding them.

The economic and social effects brought by a cashless society are that the digitization

of all monetary transactions will end up reducing costs incurred by cash, a real

currency. An examination of the costs incurred from the use of cash in different

countries reveals that while Nordic countries are at 0.3% of GDP, a relatively low

metric, a cash-dominated country like Russia score relatively high at 1.1%.

In the United States, the use of cash is costing the government around two hundred

billion dollars of expenses per year, on top of a loss of one hundred billion dollars

per year from double tax evasion – the highest in the world. According to a study

by McKinsey&Co., the scale of underground economies in countries with less than

50% cash payments average at 12%, while those with more than 80% cash payments

average at an almost tripled 32%.

A cashless society can also reduce various crimes caused by cash use. In a related

study, the crime rate in Missouri dropped 9.8% after the type of welfare subsidies for

low-income earners was switched from cashable coupons to registered electronic

payment cards. In types of crime, robbery and theft involving the possession of cash

declined the largest amount since this enforcement. Crimes not directly related to

the possession of cash, such as tax evasion and bribery, can also be reduced and

prevented by a cashless society since all electronic transactions leave a trace.

Financial institutions, including banks, are setting up various security measures in an

attempt to keep their transaction ledgers safe. Meanwhile, Satoshi Nakamoto is

overturning the way we think about centralized security practices: instead of a system

where important information is kept away from the public and in the dark, Satoshi

came up with a method of preventing the tampering of data by publicly sharing all

information, suggesting that the more people share the data, the safer the system

becomes.

Amidst the fever for cryptocurrency and blockchain, we hear news of various

cryptocurrency crimes on a daily basis – but it still doesn’t compare to the frequency


of cash-related crimes. In 2017, CNBC reported that criminals are ruling out

cryptocurrencies like Bitcoin as a tool for committing crimes since it has become very

easy for authorities to track Bitcoin transactions.

Although it is difficult to identify strict metrics regarding the criminal use of digital

currencies, Shone Anstey, co-founder and CEO of the Blockchain Intelligence Group,

estimated that the proportion of illegal trade of Bitcoin has dropped from around

half of the total trade volume, to around 20% last year. According to CNBC sources,

criminals are beginning to sense change and Bitcoins are no longer being treated as

a possession of criminals but instead as a common, legal capital.

In the United States, cryptocurrency exchanges have been given official approval to

operate in some states. In 2013, the Canada Revenue Agency (CRA) became the first

in the world to impose a tax on Bitcoin. In the European Union, VAT is not imposed

upon purchases of cryptocurrencies like Bitcoin as they are recognized as currency.

In May of 2016, Japanese lawmakers amended the Act on Settlement of Funds to

begin to accept cryptocurrencies as a public payment method. As a result, it was

clearly stipulated that no taxes, including consumption tax, will be imposed on

cryptocurrencies. Although the blockchain and cryptocurrency industries are currently

undergoing a transitional period filled with disputes and issues, they have only just

begun.

The world is already caught up in a frenzy of cryptocurrency and blockchain. Sadly,

however, this ‘frenzy’ that we speak of can otherwise be called ‘speculation’.

Satoshi Nakamoto’s historical announcement that “the history of fiat currencies is full

of breaches of… trust,” gave us reason to believe that we can eventually move out

of a ‘centralized transaction system’ and into a ‘decentralized transaction system’ to

shift the power from the ‘central’ to the ‘public’, be given equal chances of

participation in the system through ‘mining’, and safely store assets via this innovative

technology that will protect ledgers from being hacked and tampered with. In this

way, people anticipated that they could finally be free from the continuous “breaches


of… trust” of the central bank once they were rid of its control.

But what has actually happened? A revolutionary blockchain system has come to be

recognized by the general public as a tool that encourages cryptocurrency

speculation, and the legalization and practical applications of blockchain technology

are being confused with those of cryptocurrency. What is really a race for countries

around the world to implement blockchain systems is being packaged and promoted

as a race to implement cryptocurrencies, along with a propaganda that leads people

to believe they could be the next heroine of a fairytale where 10,000 BTC goes from

having the value of two pizzas to 70,000~80,000 times the worth, all in all degrading

the valuable technology to a mere tool for Alt Coin speculation.

No central authority in the history of mankind has allowed its power to be taken

away so easily. When the public started to make use of the equal opportunity that

was ‘mining’, the power of capital had already put a mining factory in motion, and

in turn, our personal computers failed to provide us with any opportunity.

Cryptocurrency is based on a system that is fundamentally hack-proof and therefore

designed to keep our ledger protected and assets safe. Cryptocurrencies, however,

have been hacked on numerous occasions because they were held not in

‘decentralized exchanges’ but in ‘centralized exchanges’, and the assets we believed

were safe, vanished right in front of our eyes. Customers were generally unaware of

the fact that this blockchain technology – supposedly safer than traditional banking

– in fact had nothing to do with the internal mechanics of centralized exchanges.

Hence, they trusted these centralized exchanges with their assets, only to see them

disappear in a flash. It would have come as a shock to the customers who had at

least never experienced outright theft with traditional banks.

The history of crypto exchanges, too, has now become “full of breaches of…trust”.

These exchanges abused their possession of customers’ assets and assumed the role

of their delegate without agreement, all with a clear priority of maximizing their own

profit over maximizing the safety and profit of the public’s assets.


The problems with fiat currency, illustrated by historical records, will not be solved

by cryptocurrency but simply transferred onto a digital world. The Internet brought

along with its rise the revival of the porn industry – but is that reason to blame the

Internet? Likewise, are we going to blame and discard blockchain for all the harms

that were brought along with it? Even now, numerous cryptocurrencies and ICOs are

using blockchain as a mere buzzword while taking advantage of the public’s misled

expectation that the value of their coins will rise, in order to encourage speculation.

Since the birth of ‘PazCoin, the world’s most beautiful cryptocurrency’ was announced

in Buenos Aires, Argentina on November 28, 2017, it has shed light on various

problems that have surfaced and declared to work to provide solutions.

PazCoin and PAZ Systems were developed with a vision to return to blockchain’s

original spirit and to lead the way in using cryptocurrency and blockchain to make

the world a beautiful place. We will continue to work with our friends around the

globe and with PazCoin users in order to turn this vision into reality.

Most ICOs and cryptocurrencies premise that blockchain will spread just like the

Internet has, using it as a basis to advocate that their cryptocurrency will shoot up

in value when blockchain and cryptocurrency soon become ready for primetime – a

belief no less elusive than the infamous Bitcoin-pizza story.

Many also predict the collapse of a bubble in cryptocurrencies and blockchain. If this

prediction is proved accurate, those who had hoped for the realization of a crypto-

and blockchain-world and participated in ICOs, will be the ones to be sacrificed on

the altar of failed ICOs and failed development efforts.

The fastest and most direct way to give financial help to someone in need is to be

able to hand over amounts of cash in your pocket to someone you run into on the

streets, according to your liking and your situation. Now, through the global network

system that is blockchain, we are able to extend this help as far as to someone on

the opposite end of the earth, at the same speed and convenience.


For people sending money to family members overseas like immigrant workers

sending money back home or families with children who study abroad, they are often

required to pay an expensive transaction fee, go through a complicated and

inconvenient authentication process, and wait for the transaction to pass through

more than four institutions over 2 to 4 days, all for a small amount of money. The

culture of donations is yet another victim of this remittance system of today. The

pure will and desire for peace has been tied down by the transaction fees, the long

authentication process and the constraints of time and space. The fact that a twenty-

dollar donation is sent through the system only to come out the other end as less

than five dollars, is evidence of a reality that still requires numerous stages of

transaction costs and deductions related to operating expenses of institutions.

What is worse is that most donors aren’t aware of this devious reality behind what

seems like a simply beautiful system.

We plan to pursue commercialization by applying the feature of blockchain that is

most intuitive to its fundamental spirit, ultimately leading the way in the advancement

of blockchain systems and of society as a whole. PazCoin and PAZ Systems will build

a global remittance/payment network by actively utilizing the pioneering

technologies of PAZ Remittance, a solution for overseas remittance and payment,

and further developing the global network, as well as make efforts to improve the

regulations and regimes between countries through cooperation with international

organizations.

PAZ Systems, with a team of highly proficient experts in each field, has prepared a

timely alternative to the rapidly changing blockchain industry and crypto market. PAZ

Systems, in addition to PAZ Remittance for remittance services, will release PazDeX

(Decentralized Exchange) for a transparent and secure transaction system.

Although ‘anonymity’ is considered a strength of cryptocurrency in that it requires

only the wallet address and simplifies the authentication process, the fact that it can

simultaneously be exploited as a tool for crime, needs to be addressed aggressively.

In 2017 alone, there have been more than 12 hacks on crypto exchanges, and over


the last few years, a damage worth 1.25 billion USD in cryptocurrencies has been

done.

As a decentralized exchange based on blockchain technology, rather than a

centralized one, PazDex ensures security with verified technologies like traffic

distribution and server load balancing, and the best developers in each field. PazDex

is fundamentally a trustless network and has no central hub to control the funds.

Users are able to manage their own assets at all times, and all transactions are P2P.

These features of PazDex inherently restrict the unconsented handling of customer

funds, which has been a common occurrence on centralized exchanges. PazDex also

complies with the KYC (Know Your Customer) and AML (Anti-Money Laundering)

procedures in all countries. Users will easily be able to access PazDex from anywhere

in the world through its franchise network that spans the globe. Lastly, PazDex

enables a smooth and easy exchange process through its user-friendly UX, simple

mechanism, and customer support.

PazTalk is also implemented as a decentralized platform, through which users can

conveniently send and receive PAZ. Unlike the traditional social networking sites,

information exchanged between users on PazTalk do not pass through a main server,

but are handled by the users’ own computers.

PazDex, a secure decentralized exchange, PAZ Remittance, a global remittance system,

and PazTalk, a decentralized social networking platform, will work together to

effectively deliver the maximum benefits to users.

Unlike the creators of Altcoins who proposed no real solution to the illegal activities

and hacks that attacked the users of their own tokens and Main-nets, we, at PazCoin,

will put our best effort into ensuring that our customers are happy and that their

assets are protected.

In addition, in the world of fiat currencies, numerous international financial

institutions like the World Bank (WB), Asian Development Bank (ADB), Inter-American


Development Bank (IDB), International Monetary Fund (IMF), and Asian Infrastructure

Investment Bank (AIIB) are working to establish international partnerships, create and

revise international standards, and take measures to restrict or support matters

regarding the currency – efforts which are almost nonexistent in the world of

blockchain and cryptocurrencies.

PazCoin and PAZ Systems will establish international partnerships and form expert

committees with specialists worldwide, in an effort to create order and stability in

the blockchain and cryptocurrency markets – both of which are currently in a

transition period. We will do our part in increasing the value of cryptocurrency until

it becomes an everyday application, instead of a mere subject of speculation,

ultimately becoming a vehicle for genuine happiness.


1. Vision of PAZ Project

PAZ Remittance PAZ Remittance is a system whereby PAZT and other cryptocurrencies are sent and

exchanged simultaneously. Through PAZ Remittance, assets are transferred securely

and quickly between individuals, and the transferred cryptocurrency is automatically

or manually exchanged into the fiat currency suited to the receiver.

The Paz Remittance platform consists of three key components:

§ Cryptocurrency Remittance App & Server

§ Cryptocurrency Exchange App & Server

§ Cryptocurrency Trading App & Server

The figure below shows a process where a user in Korea is remitting to a receiver

in China using PAZT, and the money is deposited into the receiver’s Chinese bank

account in the local fiat currency (CNY).


The next figure shows a process where a user in Hong Kong is sending funds, using

a prepaid card, to someone in the USA who receives the money in USD, the local

fiat currency.

PAZ Remittance provides a global system through which users are able to send

PAZ PAZ/U

USA PAZ Wall


PAZT to anywhere they wish in the world, and the funds will be exchanged into

the respective local fiat currency. We call this global system Paz RemittanceGlobal.

1.1 Paz RemittanceGlobal’s Vision

PAZ RemittanceGlobal’s visions are as follows.

v Our vision is to build a global remittance service network based on

blockchain technology, in all parts of the world.

v Our goal to is provide a reliable technology so that anyone can send or

receive funds from anywhere with minimum cost and maximum

convenience.

v We are developing a blockchain-based technology as well as a self-

activated business model to enable wide adoption of our service.

1.2 Principles of Paz RemittanceGlobal

PAZ RemittanceGlobal provides a reliable and decentralized and stable

cryptocurrency PAZT via innovative technologies, enabling a liberating overseas

remittance experience. The platform aims to provide a low-cost, ubiquitous

paradigm of multiple-currency exchange for the global citizens, based on the

following principles:

A. Exchange between all types of currencies: We intend to provide a platform

to enable all types of currency exchange such as

ü Fiat-to-fiat

ü Fiat-to-digital

ü Digital-to-digital

B. Independent: We intend to remain independent from any kind of authority

or central control. Owned directly by its users, the platform will never be

affiliated with any political party, economic, or financial organization.


C. Borderless: We aim to eliminate all political and geographical barriers so

that everyone around the world will have an opportunity to freely exchange

funds without any obstacles or restrictions.

D. Frictionless: We intend our service to remain online, so that users can

access our service anywhere, at any time, at extremely low costs.

E. Legal Boundary: We intend our service to remain inside the legal

boundaries of international guidelines and currency exchange regulations.

1.3 Structure of Paz RemittanceGlobal & Regional Remittance Center

Paz RemittanceGlobal is operated with regional centers as its understructure. The

role of these regional centers is to establish a local customer base as well as

operate local remittance services and currency exchange services.


The PAZ RemittanceGlobal Network consists of four layers of contributors that

cooperate with each other, as illustrated below.

The roles of each layer are as follows:

1. RemittanceGlobal : Top layer, in charge of engineering, regional partners,

rule setting, and global marketing

2. Regional Partner : Second layer, in charge of regional marketing, recruiting

point persons, and operating regional currency exchanges

3. Point Person : Individuals who are in charge of recruiting users (End

Customers)

4. End Customer : Remittance service users


Below is a flowchart that shows the operational structure of the PAZ Regional

Remittance Center and RemittanceGlobal.

PAZ RemittanceGlobal provides all software components necessary for

establishing regional centers.


PazDex (Decentralized Exchange)

PazDex takes on a hybrid approach that combines the strengths of existing

centralized exchanges and the strengths of decentralized exchanges. While

decentralized exchanges offer a stronger security of assets, they fall behind in

liquidity, ease of use, and range of functions compared to centralized exchanges.

PazDex plans to overcome these shortcomings through offering an easy UI/UX and

an integrated wallet through which users will be able to conveniently manage their

assets and trades. Furthermore, we plan to address the issue of liquidity through

collaboration with centralized exchanges.

The differences between a CEX and a DEX are described in the chart below. The

major difference is in who manages the funds: while in an CEX the exchange

manages all of the users’ funds, in a DEX, the users manage their own funds, under

their own responsibilities. With PazDex, users will not only be assigned their own

wallets, but also manage their own private keys.


The figure on the next page shows how Ethereum Smart Contracts are used in the

operation of a DEX. In particular, it shows the system through which user A and

user B transfer their funds from their individual wallets to the their respective

PazDex wallets in order to trade. This trading mechanism is enabled through the

use of Smart Contracts and will be introduced as a beta version of DeX before the

full version is released.

Exchange controls users’

funds

Users control their own funds

Run by Central Authority

Operates Autonomously (no third party)

No hacks for central server or

downtime

Hacks for central server & downtime


The figure below shows the implementation of PazDex as its own complete

platform.


PazTalk (Decentralized Social Media)

PazTalk is a decentralized platform which, like any other popular social networking

sites, enables users to create open profiles, share information and communicate

with each other. Unlike the traditional social networking platforms, however,

PazTalk allows its users to exchange information directly, one-on-one or one-on-n,

without having to pass through a central server.

When a PazTalk user sends a message to his or her friends and family, it is delivered

through a P2P network. All data and information regarding messages sent on the

network are stored in a distributed storage network based on IPFS (Interplanetary

File System), which keeps the messages safe from outside surveillance. To ensure

privacy and stability, the PAZ System is designed to securely manage all data and

also to allow users the option to make their messages disappear after a certain

period of time. The aim of IPFS is to enable the creation of a fully decentralized

app, and make the Web faster, safer, and more open. We plan to implement this

IPFS in PAZ Systems to ensure the privacy and security of all user information

stored on the network.

The decentralized PazTalk has the following characteristics:

- Decentralized Architecture

All exchanged data and multimedia are encrypted and stored in the distributed

IPFS.

- Self-Governing

PazTalk is managed and controlled by each user, who creates his or her own rules.

Users remove unimportant messages and spam themselves, and we plan to pay

PAZ in return for their efforts.

- Integrating Decentralized Wallet

PazTalk and PazWallet work together seamlessly. No third person controls or


owns the users’ assets. In other words, each user will be in complete control of

their own assets.

- Existing SNS like Facebook Migration Tool

PazTalk System plans to provide migration tools so that users can easily transfer

their data including user profile, recent posts, and friends lists, from existing social

networking sites like Facebook and WhatsApp.

- Guarantee Privacy

We do not own any content or information that belong to our users. We do not

share our customers’ personal information with anyone. We assure that

information that is deleted by users will be permanently removed and that no

copies will be saved.

PazTalk is an innovative messenger where users can securely and instantly forward

messages, as well as PAZ. Users can also choose to have their message translated

automatically upon sending. All data and information will be stored in a place that

is out of reach from third party viewing or inspection.

- Secure transfer of PAZTs in conjunction with a message

n PAZT to PAZT

n PAZT to Fiat Currency with PazDEX

- Automatic translation of messages into user-specified language upon sending

- Exchanged messages stored securely in IPFS



2. PAZT Cryptocurrency

PAZT: A Blockchain CryptoCurrency

PAZT is a pure cryptocurrency with a fixed supply. PAZT has been built with an

architecture that makes it divisible and not subject to long-term inflation. However,

as explained below, most of the PAZT supply will be stored as reserves and for

exchange purposes, and a required supply of PAZT will be distributed into the

market in the near future.

Like with other cryptocurrencies, PAZT’s unit of account PAZ is fungible and

transferable, and expected to trade and be exchanged for other cryptocurrencies

as well as legal tender. PazCoin is issued as a stable cryptocurrency with a fixed

amount and fixed price. The implementation of PAZT used in PazDex, PazTalk and

PazRemittance is described below.

Implementation: GoChain GO20 Token

PAZT is compatible with Ethereum and incorporates all the benefits of Ethereum

and is implemented with GoChain, which has a TPS speed 100 times faster than

Ethereum. GoChain is more than 7500 times cheaper gas fee than Ethereum.

GoChain (gochain.io) supports smart contracts and DApps and is compatible with

all programs developed on Ethereum. GoChain is a scalable, high-performance,

low-cost cryptocurrency and blockchain that can run decentralized programs.

• Build decentralized applications and rock solid smart contracts

• Fully compatible with existing Ethereum wallets, smart contracts and other tools

• Fast transactions and high volume - 5 second blocks, 1300 tps

• Low fees - 7500x cheaper than Ethereum


The table below compares the speed and transmission rates at the current state.

Of course, Ethereum and Bitcoin are continually working on various projects for

scalability, and we believe the speed will be improved, but it is not the situation

that can be applied right now. Therefore, the cryptocurrency used in the PAZ Project

are implemented as GO20 standard specifications on GoChain, which is compatible

with Ethereum smart contracts. Several organizations have reported that GoChain

has performed well in all respects when comparing Ethereum with GoChain under

the same conditions.


3. The PAZ Clients KYC Process

Cryptocurrency can be overwhelming for consumers who have never interacted

with the technology before – and rightly so, as unfamiliar language like ‘transaction

fees’, ‘private keys’, and ‘32-byte wallet addresses’ can be as much as entry barriers

for most users. Paz System removes this complexity and improves the experience

for customers.

In order to participate in PazCoin, users must first sign up for PAZT Wallet through

the PAZT KYC process. The KYC (Know Your Customer) process is done online and

the whole process takes three minutes to complete. The user must upload a valid

photo identification, upon which the server will examine the photo using a

verification software, and register the user. Additional requirements such as email

authentication and residency verification are used as supplementary KYC processes.

Unlike the traditional wallets where the majority of important user resources such

as the private key are stored on the server, the PazCoin Wallet will be implemented

as a system where users will control and be responsible for their personal

information. This fundamentally prevents the compromise of user assets in case of

server hacks, and will be a necessary building block in the implementation of the

DeX.


4. Paz System Blockchain

The Creation of PAZT and the Ledger: GoChain compatible with Ethereum

The average block time of the Ethereum network as of August, 2018 is 15 seconds.

The Ethereum network is currently operating on a Proof of Work (PoW) blockchain,

which has a slow processing speed. However, once Ethereum shifts to a Proof of

Stake (PoS) system and scaling solutions like Sharding, Plasma, and Raiden are

implemented and verified, the block time is expected to decrease significantly.

The number of daily transactions on the Ethereum network is growing steadily. As

of 2018, the number of transactions per day has reached 800,000 and is expected

to increase further as new applications are launched and more users join the network.

The Ethereum network will be adjusted with new resources to handle higher volumes

and increase processing speed.

Vitalik Buterin’s research on scalability suggests that Ethereum would eventually

achieve 1 million transactions per second, but only once innovative approaches are

taken in order to improve the Ethereum blockchain. Of the problems that need to


be solved, the first is that the verification time of an Ethereum transaction takes

longer than what is expected by the average user – hence is not yet practical for

applications that require fast responses. The second is that for every transaction on

the Ethereum blockchain, a fee must be paid. To address these issues, PAZ Systems

is planning to develop its own PAZ mainnet. This mainnet will either be Ethereum-

based, or its own blockchain that is a variation of EOS. Once Ethereum or EOS is

technologically stable and transaction speed is dramatically improved, we will use

either one of the platforms to develop PAZ System mainnet. Ethereum and EOS are

both great blockchain platforms, but we feel that it is still too early to judge which

one is better. EOS offers better solutions in areas where Ethereum is lacking –

scalability, TPS (Transactions per second), and cost of using DApps – but there are

areas which have not yet been technologically verified. On the other hand, Ethereum

has been responding to competitors by announcing a roadmap with plans to

improve performance: including implementation of Sharding to increase scalability,

Raiden to improve transmission speed, and Casper for shifting to Proof of Stake

(PoS).

A popular challenger to Ethereum, EOS started out with a blueprint for blockchain

operating systems and supporting smart contracts as well as overcoming the issue

of speed, which has been the biggest pain point for Ethereum. These areas are

closely related to the issue of scalability – and as a solution, a new consensus

algorithm has been proposed by the EOS camp, which is the Delegated Proof of

Stake (DPoS) method. DPoS is different from the traditional Proof of Stake (PoS) in

that it is a consensus mechanism using the concept of delegates.

This means that rather than every EOS owner participating in policy decision

processes and block production, twenty-one elected representatives are delegated

these rights. As of April 2017, Ethereum handled 20 transactions per second, whereas

EOSIO Dawn 3.0 scored around 1000 per second. However, this still falls short of the

target for the EOS development group Block.one, which is 8000 TPS – we’ll have to

wait and see how far they get.


Another shortcoming of EOS is transaction fees. Users of the Ethereum network pay

a fee called ‘gas’ for every transaction. With EOS, on the other hand, users can make

as many transactions as the amount of tokens they own. Thus, while on the Ethereum

platform users must pay a fixed percentage of fees for every transaction, on the EOS

platform developers must be in possession of the tokens. EOS promotes free use

for participants and allows developers to leverage resources in proportion to their

shares, allowing DApp developers to create a revenue strategy that is effective and

easy to predict.

The development team of PAZ project has in-depth all these technical reviews and

decided to use GoChain as the main backbone blockchain of the Paz Project. As

mentioned earlier, GoChain is rated as superior to any existing platform in terms of

speed and transmission costs.

In conclusion, we will make the Paz System blockchain by incorporating excellent

technology into the proven GoChain platform and use it to develop PAZ remittance

system, PAZDex, a decentralized exchange, and PAZTalk, a decentralized SNS.


5. PAZ Foundation

Summary

The PazCoin Ecosystem consists of communities of partners who adopt the PAZ

cryptocurrency. The PAZ Foundation is intended to be an independent governing

body for the members of this ecosystem.

The PAZ Foundation establishes long-term policies and makes important decisions

regarding:

§ Technical support for the realization and development of PazCoin

§ Member of the Ecosystem

§ Operation of PazCoin Remittance & Distributed Exchange

§ Working towards establishing an international blockchain organization like

the current international financial institutions.

§ Research and support for the blockchain environment for world peace

§ Research on PAZ blockchain systems and Reward Programs for the

environment

Governance Goals

The PAZ Foundation will devote resources to establishing fair and transparent

governance structure and processes, taking into account the opinions and

circumstances of all participants within the Ecosystem. This open management

model determines and oversees:

§ Policy and all decisions regarding PAZ Remittance & DEX operations

§ Membership process, requirements for participation, and rules

§ Analysis and response to legal issues


§ Analysis and response to industry standards compliance

§ Other important matters about the PAZ Ecosystem

Development Goals

The foundation will lead and financially support the development of a platform on

which partners in the ecosystem can create value and grow with each other. The

PAZ Foundation will further promote the development of the PAZ Ecosystem

software by bringing in a team of developers, and maintain an open-source

codebase and PAZ API for participants of the Ecosystem.

Organizational Goals

PAZ Foundation: A Foundation for the PAZ Ecosystem

PAZ Foundation will be built to serve as an organization that oversees the equitable

and productive growth of the PAZ Ecosystem. PAZ Foundation will also manage

PazCoin’s remittance, trades, and currency exchanges, and provide tools to ensure

that all services are running smoothly within the PAZ Ecosystem. Ultimately, the

PAZ Foundation will work to enable the PAZ Ecosystem to evolve into a

decentralized and autonomous network.

PAZ Systems: PAZ Technical Team

PAZ Systems will serve as the technical team responsible for the technology and

development that facilitate the smooth operation and growth of the PAZ Ecosystem.

Consisting of leading experts in various fields such as IT and Blockchain Systems,

PAZ Systems will provide direct and specialized technical support for PAZ

Remittance, PazDeX, and the rest of the PAZ Ecosystem. PAZ Systems will ultimately

grow and expand to include technicians from all over the world, to lead the way in

the stabilization, autonomy and technology of blockchain systems globally.


Summary

We expect the PAZ Ecosystem to be a decentralized, independent, and autonomous

system based on its core PAZ cryptocurrency. Moreover, we expect that the PAZ

Ecosystem will expand geographically to achieve global reach, as well as multiply

in numbers of participants and partner organizations. PAZ Foundation, through

economic and technological advancements and with PazCoin at its core, will strive

to create an open and independent PAZ Ecosystem in our everyday life. The key to

this Ecosystem is the guarantee that all participants, including users, partners, and

founders, will have economic incentives within the system.


6. Issuance of PazCoin for ICO (ERC20)

Allocation of PazCoin

Table 1 PAZ Token Allocation Plan

Total Supply Token Sale 3rd Party

Donation Team/Advisors

PAZ

Foundation

Operation

Reserve

PazCoin 100% 10% 30% 10% 30% 20%

Total

Supply

10,000,000,000 1,000,000,000 3,000,000,000 1,000,000,000 3,000,000,000 2,000,000,000

The table above shows the total supply and allocation plan of PazCoins. Allocations

of the PAZ Foundation are used for the following purposes: Quantity allocated to

the PAZ Foundation is frozen for five years.

The PAZ Foundation’s share of tokens will be used for the following purposes:

§ Donation the amount of the PAZ Foundation to third parties. However, the

donated tokens will be frozen for 10 years from the date of donation and

will be used for various settlements and expansions of the Paz Blockchain

System, including the creation of a blockchain environment for peace and

international solidarity, as the value of PazCoins increases in 10 years or more.

§ PAZ Foundation Operating Cost: the PAZ Foundation has been established

to ensure independent management and growth of the PAZ Ecosystem, and

a proportion of the Foundation’s share is allocated towards the continuous

operation of the Foundation as well as legal and development costs.


The next figure shows the scale, schedule, and target amount of each Presale.

Table 2 PazCoin Sale Schedule

Currently, PazCoins have not been sold in any presale or private sale, and will be

listed on the Main cryptocurrency exchange in late 2019 / early 2020. The listed

price will be the initial trade at a reasonable price in consultation with the exchange.

Funds earned through the sale of PAZ tokens will be used to fund PAZ operations

and to establish the PAZ Foundation, and some will be used to build the PAZ

ecosystem, develop PAZ systems and additional features , and implement the PAZ

long-term roadmap.

Investment of Tokens

Private Sale Presale ICO Total Supply

PazCoin 0 0 1,000,000,000

PAZ/ETH 0 0 TBA


The funds earned through the token sale will be invested for the operation,

promotion and development of the PAZ Foundation, as shown in the table above.

• The Engineering/Dev proportion will be allocated to the development

team for the development of all systems and services that will materialize

the ideologies of the PAZ Foundation.

Reserve10%

Marketing/PR15%

Strategic Parterner Support

25%

Business Development

25%

Engineering Development

25%

Breakdown of tokens earned from presale


7. Roadmap


8. Conclusion

For some time, the ICO craze attracted large amounts of funds into the market.

One ICO alone would attract 100 million USD or 500 million USD, and people would

call this a success. However, it does not take long for one to realize that this

‘success’ is simply a collection of people’s funds.

Shouldn’t the scale of success be determined only once the proposed business is

carried through? As proposed in the beginning, most ICOs so far presuppose that

the blockchain environment will be created in every part of the world, but

blockchain systems are still only in their infant stage.

These ICOs base their models on the premise that many people will use their

cryptocurrency in an environment where cryptocurrencies are readily available for

use in shopping, money transfer, and tax payment.

Our PazCoin and PAZ System have been created to set up the PAZ Blockchain

System in all parts of the world and foster a safe, convenient, and happy

environment for foreign workers and all people in need. In order to carry through

with this plan, we have been sharing the PAZ spirit with global experts in various

fields such as international politics, IT, environmental science, and NGOs – and this

spirit is spreading very rapidly. The PAZ Blockchain System will create a

differentiated PAZ Ecosystem.

PAZT in Paz System is stable coin which is used as a kind of Utility Token. The price

is fixed like USDT and works with US Dollar. On the other hand, PazCoin, which is

listed on the cryptocurrency exchange and purchased by the public, is traded only

in a certain amount. The value of PazCoin is directly related to the growth of the

value and profit of the PAZ Foundation. The PAZ Foundation will continue to burn

the volumes in order to realize the value of PAZ users and exchange them with the

stable coin PAZT at a certain rate.


9. PAZ Foundation

Key Personnel and Advisors

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