Cto eng

CLOUD TOKEN WALLET
STORE, EXCHANGE, EARN & SPEND
The 4th generation AI Wallet powered by DLT
© 2019 Cloud Technology & Investment PTY LTD. All Rights Reserved .

True
Decentralised Wallet
4th Generation
Blockchain Technology
Cutting Edge AI
trading bot
INTRODUCTION
Cloud Token Wallet is a

WHAT IS BLOCKCHAIN?
A system in which a record of
transactions made in bitcoin or another
cryptocurrency are maintained across
several computers that are linked in a
peer-to-peer network.
“Blockchain” is nothing but a “ledger”,
which is why cloud token wallet
prefers to use the term “distributed
ledger technology” or “DLT”.
E.g. Bitcoin ( P2P Network,
Open Source, Consensus
based, Proof-of-Work ( PoW ),
High Transaction Time/ Fee,
Energy intensive mining
process )
E.g. ETH, EOS
( Smart Contract, Virtual
Machine, Ops by Node,
ICO, Higher Network
Speed, Energy intensive
mining process )
( Real time settlement,
infinite scalability, energy
efficiency, interoperability
with legacy system, fully
distributed )
1st generation blockchain 2nd – 3rd generation blockchain 4th generation blockchain

WHAT IS BLOCKCHAIN?
October
2008
May
2010
Nov
2013
Dec
2017
Bitcoin Short History
“ Bitcoin: A Peer-toper
Electronic Cash System”
by Stoshi Nakamoto
Bitcoin Pizza Day
10,000 BTC for $25
worth of pizza
Ethereum
Launch
July
2015
Bitcoin Surpass Gold
Prize $1,242/BTC vs
$1,240/ounce
$19,783.06 all time hi

WHAT IS A CRYPTOCURRENCY?
Cryptocurrency (informally “crypto”, “coin”, or “token”) is a digital asset tracked by a distributed ledger technology (DLT)
Stability
Stable Coin
Fungible
Majority of crypto
Permanence
On Blockchain
Volatility
Utility Token
Volatility
VS
VS
VS
Impermanence
Fiat Currency
Non-fungible
CryptoKitties

Public Keys Private Keys
Mailbox Mailbox key
VS
Hot Cold Wallet
Exsist on 3rd
party server
Exsist on hardware
until its plugged in
and becomes hot
VS
Hard Soft Wallet
Hardware Software
VS
WHAT IS A CRYPTOCURRENCY WALLET?

Due to their convenience and user-friendliness, mobile wallets are rapidly being
adopted by consumers for both fiat-based electronic payments and crypto
transactions. This is the continuation of a long trend in favour of “cashless payments”,
which are payments that do not involve the handover of banknotes and coins.
DRIVERS OF GROWTH
Technology
Business Models
Merchant Expectations
Consumer Expectations
Regulatory Pressure
Globalization
WHAT ARE MOBILE PAYMENTS?

By 2016 the worldwide volume of non-cash
transactions was more than 433 billion and
forecast to increase at a compound annualised
growth rate (CAGR) of 10.9% to 2020. In developing
economies, the volume of non-cash transactions,
which includes the use of checks and cards, is
expected to grow at a CAGR of 19.6%. Of the
massive and fast-growing volume of global
non-cash transactions, electronic payments
(e-payments) and mobile phone payments
(m-payments) are together expected to account
for about a third (32%) in 2020.
WHAT ARE MOBILE PAYMENTS?

WHAT IS A CRYPTOCURRENCY EXCHANGE?
Fundamentally, exchanges can be broken
down by architecture into two main
categories: decentralized exchanges
(DEX) and centralized exchanges (CEX).
Within each, trading support can be
bucketed into: fiat exchanges (that accept
fiat currency deposits, like USD, KRW, JPY,
EUR) and crypto exchanges, which support
crypto-to-crypto trading only. Most DEX's
do not allow fiat trading, consequently
allowing CEX's to hold majority [sic] of
market trading volume share.
CENTRALIZED DECENTRALIZEDVS

WHAT IS AI TRADING?
Massive operation
log data
Cutting edge
technology
AI Engine
Distributed Processing
Cloud Native Machine
Learning
AI
Trading Bot
Smart Home Device
Self Driving Cars

P R O B L E M S W I T H M O B I L E C R Y P T O W A L L E T SPROBLEMS WITH MOBILE
CRYPTO WALLETS

MANY MOBILE CRYPTO WALLETS ARE CENTRALISED
Centralised crypto wallets are worse than traditional bankings systems because
there is no regulatory framework to keep the organisation accountable.
What if I cannot
open the
application?
Where is my
private key?
Where can I see
my crypto asset on
blockchain?
Scam?
Establishing trust by delivering on the DLT promise of not only
decentralisation but full distribution presents an opportunity for
Cloud Token Wallet.

MOBILE CRYPTO WALLETS ONLY DO TWO THINGS
Integrating payments and a range of useful and convenient
services, such as exchange functionality and AI trading, within
a single fully-distributed application presents an enormous
opportunity for Cloud Token Wallet.
Securing users’ public and private keys
Enabling users to check their crypto balances
1
2

A D V A N T A G E S ADVANTAGES A D V A N T A G E S

FULLY DISTRIBUTED ANONYMITY & TRANSPARENCY
User-friendliness
Many decentralised
applications have been very
"clunky". They have been
difficult to use for those used to
slick and intuitive user
interfaces (UIs) i.e. the vast
majority of prospective users. It
is as if the user experience (UX)
for decentralised applications
were designed by engineers
for engineers, rather than by
UI/UX professionals for users.
Transparency
Cloud Token Wallet’s full
distribution offers real-time
on-chain transparency to
crypto holders, and to users
of the integrated payments,
exchange, and AI trading
services. Assets are
managed by users, not a
centralised organisation.
Deployment of the AI trading
is optional and at users’ own
risk. The AI is autonomous.
Anonymity
Full distribution facilitates
anonymity, which is one of
the core principles of the
Cloud Token Wallet. No
personal information is
required during the setup
process. Full distribution
also means that users can
deploy other wallets to
control the assets in their
Cloud Token Wallet.

VAROOM identifies inflection points within trends to
minimise risk and deliver solid returns.
v = velocity
a ~ accleration
Analyse their
± signs
(0,y0)
(-1,y-1)
(-2,y-2)
y = at2 + vt +s
t
yAI-assisted Trading System
Returns paid in CTO
JARVIS AI, Smart triangular
HAL, the adaptable
trading algorithm
More to come
INTEGRATED SERVICES & CONVENIENCE

Decentralised Exchange
As discussed earlier, DEXes are designed
to operate “trustlessly”, with smart
contracts rather than intermediaries
facilitating settlement. There is no
central server to manipulate or corrupt
or shut down. And, because trades are
undertaken directly between the two
parties with no intermediary
involvement, there are zero or minimal
transaction fees.
(To be expected)
D E C E N T R A L I S E D E X C H

Cloud Token Wallet will develop its
own payments network for those who
want to accept payments directly
from Cloud Token Wallet users. Cloud
Token Wallet will roll out a franchisee
network to build clusters of payment
partners within territories.
Qualified Cloud Token Wallet users be
eligible for their own debit card linked
to an international payments network.
PAYMENT

ARALLEL LEDGERSPARALLEL LEDGERSPARALLEL
LEDGERS

INDIVIDUAL
P2P POR
CONSENSUS
Initiated on an individual’s user-friendly mobile
phone (the buyer’s dApp node)
Confirmed on the fully distributed peer-to-peer
dApp network
Recorded as a file-based block by all the dApps
that are party to the transaction — the buyer’s
mobile phone dApp, the seller’s point of sale (POS)
dApp, and the witness’ dApp
Witnessed by a similar peer dApp according to
the fair and fast Proof of Reputation (POR)
PARALLEL CONSENSUS

PARALLEL CONSENSUS
Initiated via a point of sale
(POS) dApp (the seller),
witnessed (by POR) and
confirmed externally on
the P2P network (i.e. it is
already a done deal)
Witnessed internally
by a POS dApp peer
in the organisation’s
own P2P network
Confirmed and
recorded on the
organisation’s
decentralised
network of OrgNodes
ORGANISATIONAL HYBRID CONSENSUS

C L O U D T O K E N W A L L E T T E C H N O L O G YCLOUD TOKEN
WALLET
TECHNOLOGY

SWARM Storage uses the FSDLT to
store transactional information in
the filename so eliminating the
need to store data in the actual
file itself. Other BLOB/STRUCTURE-
based data is stored in the file.
FILE SYSTEM DLT (FSDLT)
#1
#1 #2
#1 #2 #3
TX
#1
TX
#1
TX
#1
dApp #1
dApp #2
dApp #3
Merchant #1
Real-TimeParallelTransactions
Witnessess

The mDHT system consists of four modules:
User Interaction Module for receiving data and
accessing time information from the user;
Cryptography Module for performing encryption
of data;
Key Management Module for managing
the keys required for encryption; and
o A Threshold Estimation Module for setting the optimal
parameters based on the similarity measurement
between the reinforcement learning and the data
availability graph, and
o a DHT Network Module for distributing the
generated key shares to the DHT network.
Secret Sharing Module for dividing the
encryption key into several pieces using two
further modules:
MAINLINE DISTRIBUTED HASH TABLE (MDHT)
x
x x
x x x
xx
x
x
<package, CodegenSupport>
pilot
ClincalDocument ResultsSection
<CDATemplate> <CDATemplate> <CDATemplate>
ResultOrganizer ResultObservation
<CDATemplate>
TuberculosisFollowUpProgressNote
<CDATemplate>
Code : CE(C:LOINC#30954-2)
Text : Struc Doc Text
Title : ST
<CDATemplate>
TBResultOrganizer
Code : CD{V:Lab Test Result
Name (TB)}
x
TBResultObservation
<CDATemplate>
classCode:
ActClassObservation=OBS(fixed)
Code : CD(V:Lab Test Result Name(TB)
StatusCode : CS(C:ActStatus#completed)
-resultOrganizer -resultOrganizer
[1..*] [1..*]
-resultsSection
tbResultObservation
tbResultObservation
tbResultObservation
[0..*]
[0..*]

SHOUT is a lightweight, large-scale connectivity
protocol. It is a UDP-based open micro transport
protocol variant designed to mitigate latency
and other congestion in traditional BitTorrent
over TCP. SHOUT multicasts data to all nodes in
the network, greatly reducing network overhead.
SIMPLE HEURISTIC OBJECT UDP TRANSFER (SHOUT)
P
O
N
M
L
K
J
I
H
F
E
D
A
Buyer Seller
Witness
C
B
4
4
4
4
3a
3
4
3b
4a
4a
4a
1
2
4b
4b

SWARM STORAGE
The SWARM Storage layer effectively manages a process whereby participating nodes share disk space with
every other node in the network. Each transaction between sender and recipient is processed by a
reputation-backed node which is called a witness, and each transaction is a separate file-based block in the
SWARM. No more dependency on Server anymore!
EDGE Device SWARM
vRAID6 Atomic Chain
dApp dApp IoT dApp
FOG computer
EDGE devices

At the heart of the implementation is a set of basic
rules that run by conditions, events & actions i.e. if
this, then that (IFTTT).
These rules are modified from time to time based
on statistics indicating abnormalities in the network.
Certain stakeholders can add their own business- or
transaction- or reward-specific conditions on top of the
rule but they never supersede the basic rules.
IFTTT BUSINESS LOGIC LAYER

BLOCK GAP SYNCHRONIZATION
Risk level: Low
Impact: Network amplify /
Denial of service
Description: Each file-based block has a link to a previous block. If a new block arrives where
the Cloud Token Wallet network cannot find a link to a previous block, a node has to
determine whether it is out of sync with the network or if it has received junk data. When a
node is out of sync, it will establish a TCP connection to another node that offers to bootstrap
it. Thus a block gap synchronisation attack is initiated by sending out a torrent of junk blocks,
which leads to an amplification of traffic and denial of service as network nodes attempt to
establish TCP connections.
Defence: Cloud Token Wallet nodes are programmed to wait until a certain threshold of
votes has been observed for an unlinked block before initiating a TCP connection to a
bootstrap node. If a block does not receive enough votes, then it is assumed to be junk.

Description: Transaction flooding is sending as
many valid transactions as possible in order to
saturate the network. An attacker will send
transactions to other accounts they control so it
can be continued indefinitely.
Defence: Each Cloud Token Wallet block has a small
amount of work associated with it; around five
seconds to generate and one microsecond to validate.
This work difference causes an attacker to dedicate an
enormous amount of their own resources to sustain an
attack while wasting a small amount of everyone
else’s resources. Cloud Token Wallet nodes that are not
full historical nodes — the vast majority of them — are
able to prune old transactions from their chain. This
clamps the storage requirement from this type of
attack for almost all users.
Impact: High input/output
Risk level: Moderate
TRANSACTION FLOODING

PENNY-SPEND
Risk level: Moderate
Impact: Large ledger
Description: Similar to a transaction flooding
attack, a penny-spend attack is where an
attacker sends tiny quantities to many accounts
in order to waste the storage resources of nodes.
Defence: Cloud Token Wallet’s block publishing is rate-limited by
work, so this limits accounts to a certain extent. Also, Cloud Token
Wallet nodes that are not full historical nodes can prune accounts
below a statistical metric where the account is probably not a
valid account. Finally, the block lattice is tuned to use minimal
permanent storage space, so that the space required to store one
additional account is proportional to the size of an open block +
indexing ~ 96b + 32b ~ 128b. This equates to 1GB being able to store
8 million penny-spend accounts. If nodes want to be aggressive,
they can calculate a distribution based on access frequency and
delegate infrequently used accounts to storage.

Description: The metric of consensus for the block lattice is a balance
weighted voting system.
If an attacker can gain over 50% of the vote, they can cause the network to
oscillate their decisions, which renders the system useless. An attacker must
have at least some value tied up in the network that they are willing to forfeit
as an expense in performing this type of attack since this attack ruins the
integrity of the system. An attacker can lower the amount of balance they
must forfeit by preventing good nodes from voting through a network
distributed denial-of-service (DDoS) attack.
Defence: The primary Cloud Token Wallet defence against this type of attack
is that voting weight is tied to investment in the system according to DPoS. (In
PoW systems technology can be deployed that gives disproportionate
control.) On the Cloud Token Wallet network, the cost of this attack is
proportional to the market cap i.e. the cost of attacking the system scales
with the size of the system. Attempting to flip the ledger would destroy an
attacker’s necessarily large investment in Cloud Token Wallet. In order to
maintain the maximum quorum of voters, which could be threatened by a
DDoS, the next line of defence is representative voting. Account holders that
are unable to participate in voting for connectivity reasons can assign a
proxy who can vote with the weight of their balance. Forks are never
accidental, so nodes can make policy decisions on how to interact with
forked blocks. The only time non-attacker accounts are vulnerable to block
forks is if they receive a balance from an attacking account. Accounts can
wait a little or a lot longer before receiving from a suspected attacker or opt
to never receive them.
51% ATTACK
Risk level:
Extremely low
to impossible
Impact:
Completely
destructive

December
Project commenced. The core tech team in Singapore, supplemented by Malaysian, mainland Chinese, and Hong Kong-based teams, started
developing core Cloud Token Wallet functionality based on the fourth-generation DLT.
February
Alpha version. The Alpha version of Cloud Token Wallet was made available to professional cryptocurrency user groups for testing. The team engaged
five focus groups of 12 members each across five countries.
April
o Beta version. The Beta version of Cloud Token Wallet, including the JARVIS AI service, was launched for early birds who helped spread the word. A
user base of approximately 50,000 members had been generated by the end of April.
o Under construction
May
Official dApp launch. International launch of Cloud Token Wallet 1.0 in Bangkok, Thailand, including the official release of this concept paper.
Franchisee program launch. Cloud Token Wallet country leaders will be recruited to sign up major payment partners to Cloud Token Wallet
payments service.
June
o Expansion of AI trading options. JARVIS AI bot upgrade with VAROOM algorithm. HAL AI bot launch. Other bots and algorithms to be determined in
collaboration with mathematics professors to provide more strategic options for end users with different risk/reward profiles.
o Global online marketing campaign launch. Cloud Token Wallet online brand ambassadors will start their campaigns. Launch of official Cloud News
channels.
o Franchisee program expansion. Cloud Token Wallet district leader’s recruitment to be led by country leaders. District leaders will be tasked with
signing up clusters of small and medium-sized payment partners to Cloud Token Wallet payments service.
July
Global events launch. The first in a series of localised events in collaboration with the Cloud Development Foundation. The events will focus on
educating the public on the basics of DLTs, cryptocurrencies, cryptocurrency wallets, cyber security et cetera, and to create public awareness and
adoption of Cloud Token Wallet.
November
Crypto-to-fiat solutions launched. The debit card-based payments solution for eligible Cloud Token Wallet members launched alongside on/offline
crypto to fiat solutions for all members.
December
o Offline systems integration tools launch. Cloud Token Wallet to release its solutions-as-a-service for merchants to create payment solutions e.g.
POS machines, ATM, business tools.
o The road ahead
Launch of Cloud Token Wallet DEx and the continued expansion and enhancement of core Cloud Token Wallet functionality, including a more
comprehensive range of digital asset management tools and AI-bot solutions. Further UI/UX refinement will be important.2020
2019
2018

Cto eng

More Related Content

What's hot (18)

Similar to Cto eng (20)

More from gary wang (20)

Recently uploaded (20)

Cto eng