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“The purpose of Velas is to address and fix existing issues and challenges faced by most existing blockchains including scalability, security, and expense.”

V.E.L.A.S ™Virtual Expanding Learning Autonomous System

Blockchains still have problems

> Many blockchains are centralized to some degree> Scalability is an ongoing concern> Block producers are not always incentivized to act in

the network’s best interests> Networks, like Bitcoin & Ethereum, run at maximum

capacity, hampering efficiency

Blockchain technology is evolving

Velas ™ is a self-learning and self-optimizing blockchain platform for secure, interoperable, extremely scalable transactions and smart contracts. The Velas blockchain uses neural networks optimized by artificial intelligence to enhance its consensus algorithm, which maintains decentralization, stability and security.

July 1, 2019 Copyright © 2019 Velas AG

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“An Artificial Intelligence is a series of algorithms used to identify relationships and patterns in a set of data.”

VELAS Advancements & Improvements

> Fully decentralized through AI-enhanced DelegatedProof-of-Stake (AIDPoS)

> AI selects who stakes based on the blockchain’s needs> Velas can create blocks only when required <every two

seconds or every five minutes>> Tremendous scalability to 30,000 Tx/sec> Block producers are elected by Artificial Intuition

VELAS Artificial Intelligence

> Neural networks on Velas are composed of numerous simpleorganisms that eliminate irregularities in theblockchain through 80/20 consensus, ensuring the networkdoes what it is supposed to.

> VELAS AI calculates the time of block formation and therewards for node operators. The AI-optimized networkgenerates the best possible results, reducing the costof consensus and resulting in scalability beyond 30,000Tx/sec.

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“AIDPOS attempts to solve the problems of alternative consensus option, including Bitcoin’s traditional Proof of Work system and the Proof of Stake system of Peercoin and NXT.”

VELAS AI-Operated Delegated Proof of Stake

The AIDPOS consensus algorithm provides a fault tolerance system that prevents most major issues like the 51% attack and the nothing-at-stake problem.

The AI framework on top of the Velas Platform:

> Motivates participants of the network (nodes) to bereliably present and active in the network, maximizingrelevant scores/rewards.

> Blocks fake messages about false transactions,increasing the quality of messages and resistance toattacks.

> Forms timings of age, accelerating Tx/sec and reducingthe network workload.

> Correctly and optimally allocates rewards.

VELAS Blockchain Use Cases

> VELAS is the backbone on which a whole ecosystem willrun including exchange, multisig wallet, and merchantplatform.

> Companies such as Mind AI are already building on VELAS.Developers can integrate AI into projects.

> Companies can tokenize on VELAS the same way asEthereum and ERC-20 tokens.

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“These containers will allow for the creation of an onchain/offchain scalability solution for all other tokens as needed and serve as one ecosystem wallet for all Velas smart contracts.”

Merchant Platform

In July 2019, an existing user base of 3,000,000 merchants and buyers will swap their existing CoinPayments coins (CPS) to VELAS’ native VLX utility token.

Anyone with a storefront on the web will be able to sell their products and services on the VELAS blockchain. In July 2020, a registration system will launch to allow merchants to authenticate themselves and their products.

Multi-wallet Technology

The Velas blockchain allows for the creation of public and private containers for all tokens supported. Velas will generate private keys for other virtual currencies, including Bitcoin and Ethereum, and tokens such as EOS, XRP, and Monero.

Keys are created using a user’s private key seed. All containers will be restored from the same original seed or private key associated with the Velas wallet.

Users can also benefit from storing all tokens they currently hold securely in the Velas wallet and (discounts) creating multisig backups for tokens that do not natively support it.

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Roadmap

Stage 1 (Pre-Alpha): July, 2019 > Creation of the blockchain system structure, tokens,

transactions on four nodes run by network organizers.> Smart contract in wallet will allow all CPS coin

(CoinPaymentsCoin) users to swap 1:1 to VLX (Velas).> Creation of tokens or custom digital assets.

Stage 2 (Alpha): November, 2019 > Creation of a stable system> VELAS deployment on 10 nodes and testing AI from network

organizers on four servers.> Introduction of Multi-Wallet Containers public and

private send functions.

Stage 3 (Beta): March, 2020 > Addition of AI test nodes to compete with server side

AI.> Further expansion for leading virtual currencies in

Multi-Wallet container system for sending, receiving andsmart contract functions.

Stage 4 (Release Candidate): July, 2020 > Integration of AI into existing advisor nodes, amount of

which is now set by the AI logic.> Full decentralization is achieved.

Stage 5 (Release): November, 2020 > Fully functional system launch.

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DISCLAIMER AND CAUTIONARY STATEMENTS: This document is for information purposes only. All statements in this document, other than statements of historical facts, are forward looking statements. These statements are only predictions and reflect Velas AG’s current beliefs and expectations with respect to future events and are based on assumptions and are subject to risk, uncertainties and change at any time. We operate in a rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you are cautioned not to rely on these forward-looking statements. Actual results, performance or events may differ materially from those contained in these forward-looking statements. Any forward-looking statement made by Velas AG contained herein speaks only as of the date on which it is made and Velas AG is under no obligation to, and expressly disclaims any obligation to, update or alter the forward-looking statements contained herein, whether as a result of new information, subsequent events or otherwise.

Velas AG does not guarantee the accuracy of or the conclusions reached in this document, and this document is provided “as is”. Velas AG does not make and expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title or noninfringement; (ii) that the contents of this document are free from error; and (iii) that such contents will not infringe third-party rights. Velas AG shall have no liability for damages of any kind arising out of the use, reference to, or reliance on this document or any of the content contained herein, even if advised of the possibility of such damages. In no event will Velas AG be liable to any person or entity for any damages, losses, liabilities, costs or expenses of any kind, whether direct or indirect, consequential, compensatory, incidental, actual, exemplary, punitive or special for the use of, reference to, or reliance on this document or any of the content contained herein, including, without limitation, any loss of business, revenues, profits, data, use, goodwill or other intangible losses.

This document does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of the Velas token (VLX) or any other product or service regardless of whether such token, product or service (if any) is referenced in this document. Furthermore, nothing in this document is intended to provide legal, tax or acquisition advice and nothing in this document should be construed as a recommendation to receive, hold, buy or sell VLX or to engage in any transaction with respect to VLX including any reward transaction. Velas AG does not represent that VLX, the products, or services (if any) discussed in this document are suitable for any particular person. You are solely responsible for determining whether any transaction involving VLX is appropriate for you.

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