Tritium

Tritium

“Nexus releases Tritium, a revolutionary register-based contract engine

November 5th, 2019: Nexus releases Tritium, the 7th activation since the network launched in 2014. This upgrade transforms the Nexus blockchain into a seven-layered software stack with a revolutionary register-based contract engine, that processes 2k to 25k contracts per second. Tritium is designed to be scalable, decentralized, and user friendly. 

Nexus now provides an easy to use Application Programming Interface (API) for developers to build Decentralized Applications (DApps) and Hybrid Networks. The API can be used for the recording of Supply Chains, Digital Asset Licensing, Financial Assets, Records, Licenses, Certificates, Securitized Token Offerings (STOs) and much more. Tokenized assets enforce partial ownership or rights, enabling true peer-to-peer exchange for the purpose of Royalty Payments, and for the distribution of Dividends. 

An innovative decentralized login system is available for DApp developers to build with, that eliminates the requirement of users to store private keys. This furthers the mission of making blockchain technology more accessible, as the management of private keys, even with hardware, comes with the risk of theft and loss. This technology also supports the Nexus Wallet, making it accessible from any computer simply by logging in with your credentials.

Part of the upgrade is a specialized database engine called the Lower Level Database (LLD). The LLD greatly exceeds the performance of Google’s LevelDB and RipplesDB by orders of magnitude.

Another impactful technology is the Locator Identifier Separation Protocol (LISP), that increases the reliability and security of communication between nodes, and through IPv6 addressing provides ample capacity for the emerging IoT industry. LISP was developed by advisor Dino Farinacci who was the first Fellow (the most senior rank or title one can achieve in engineering) of Cisco. Other features include reversible transactions, decentralized exchange, quantum resistance, and much more.

“The design of Tritium is based on many discussions with Fortune 10 to Fortune 500 companies, developers, and community volunteers.” says project founder and lead developer Colin Cantrell. “Our team set out to design contracts that support real world actions between people, and now seeing it come to life has made the years of hard work more than worth it.”

Tritium is the first upgrade of the TAO Framework (Tritium-Amine-Obsidian), which introduces sharding along with three consensus layers for higher levels of scaling, security, and decentralization. The next upgrade in the pipeline, Tritium++, includes DAO technology for the management of Nexus funding, and to support emerging token economies. Amine and Obsidian add further layers to the 3DC (Three Dimensional Chain), Nexus’ on-chain scaling solution.

We have included API documentation inside the wallet along with the fee schedule to creating tokens. A wallet guide will be released by November 11th, for an in depth guide on how to use the new features of the wallet available upon activation. We would like to thank everyone that helped during the testnet phase in supporting this milestone for Nexus!

For more details please read What is Tritium? 

Tritium Core: https://github.com/Nexusoft/LLL-TAO/releases/tag/4.0.0

Nexus Wallet: https://github.com/Nexusoft/NexusInterface/releases/tag/v2.0.0

Securitized Token Offerings

Securitized Token Offerings

Initial Coin Offerings (ICOs) are considered securities, as the value of these tokens are based on the performance of the company that they represent. However, unlike traditional public shares that provide dividends, ICOs do not offer a direct link to the revenues of a company. Conversely, Nexus Securitized Tokens can represent partial ownership of a company, and the automated payment of dividends to token holders. 

Dividends

There are two models that can be used for paying dividends on Nexus, which are described below:

  1. Dividends can be paid out on a scheduled basis from available company profits, and executed by an officer as a single manual cryptocurrency transaction to the company registration address. Therefore, this approach relies on the trust of the officer to accurately reflect the total amount of dividends to be paid out. However, it replaces the requirement of the company to keep a record of all shares of ownership. This model will most likely be used by companies hosting a Securitized Token Offering (STO) that wish to pay dividends in the near term, since it is already similar to the traditional process, having the key difference that it functions with less manual administration. 
  2. Dividends can be paid out to token holders as revenue is generated, with a percentage of tokens reserved by the company for operating costs. This would ensure that investors receive their dividends daily, and would put a cap on the total operating expenses that the company is able to claim. We envision this method being adopted in the future, if supported by investors. This method is completely automated and trustless, being that it does not rely on any manual administration. It also has the additional benefit of ensuring transparent financing and operations of a company, to create a closer relationship between the company and its investors.

Capital Raising 

For the purpose of capital raising, a company registration would be published as an asset on Nexus, with the relevant documents hosted off-chain, such as bylaws or a business plan. The integrity of these documents is ensured through a ‘checksum’ or ‘fingerprint’, included in the registration of the asset. The asset would then be tokenized in order to raise capital from investors, dividing the shared ownership of the company. Nexus Securitized Tokens can also be used to facilitate the distribution of dividend payments from the future revenues of the company. Unlike traditional public shares, dividends are paid out to the token holders automatically by either of the aforementioned methods, requiring very little administration. 

Crowdfunding 

Similarly, other forms of fundraising can be facilitated by Royalties Tokens. For example, artists who wish to crowdfund for a music album (registered as an asset on the blockchain) can issue tokens pertaining to the ownership of the album. Tokens could then be used to give rights to future revenues of the album, ensuring that supporters are rewarded for their contribution. Today, creatives raising funds usually have to deal with large businesses, often receiving a less favorable deal than they would like. We envision that this new form of crowdfunding could benefit many different people looking for funding for their projects, though the future regulatory landscape and classification of these types of tokens is unknown. 

Patent Funding 

Tokenization can also be utilized for the purpose of patent funding and future dividend payouts. Below, we will outline a basic overview of how patent funding could be secured :

  1. An inventor comes up with a new idea that currently has a large market, and no competitive patents.
  2. The inventor establishes a company that will manage the rights of the associated patent(s). 
  3. The inventor registers/publishes the company information as an asset on Nexus, linking the founding documents such as bylaws with checksums.
  4. The inventor tokenizes the company, making the company registration owned by the token.
  5. The inventor publishes another asset, which is assigned ownership by the company, containing references to further documents that explain the business plan, manufacturing processes, patent availability, etc.
  6. The inventor holds a crowd sale of the tokens, establishing the first round of funding to pay for the legal registration of the patent, prototype, and go-to-market strategy.
  7. The inventor applies for ‘patent-pending’ status, and once received, registers an asset, again owned by the company, with the details of the patent.
  8. The inventor develops the product, and in an ideal scenario, gets it to market, generating revenue to the company. Any modifications to the patent status are modified in the patent object.
  9. The revenue generated is paid out as dividends, if this is part of the agreement with token holders, allowing the blockchain (tokens) to manage the rights to ownership of the patent. 

From the example above, the automatic dispersal of patent dividends is facilitated by either of the two aforementioned options for distribution. This will make the process of patent-funding much easier for inventors, while investors will have transparency and assurance that their ownership is valid.

Voting

With Tritium++, tokens will be usable for the purpose of voting, similarly to shares with voting power of a public company. This is important as it is becoming more evident that there are flaws within current shareholder voting structures, with new research coming to light that reveals: 

“Since 2003, there have been about 75% more shareholder proposals rejected by a margin of one percent of shares outstanding than proposals that were approved by a similarly narrow margin. As a result, there is a large and discontinuous drop in the density of voting results on these proposals exactly at the majority threshold of each proposal. These anomalies in the distribution of voting results reveal that there are substantial effects of vote rigging on the success rate of shareholder proposals.” [1]

Though our consensus mechanism can go only so far in relieving the above symptoms and psychological tendencies inherent to some, we believe mathematics and cryptography can help improve the condition of our current voting systems.

DEX

Contracts on Nexus can facilitate the exchange of any asset or token, without a third party or any permissions. No matter the value of the exchange, settlements on Nexus will be complete in under ten minutes. This allows the free movement of STO tokens between holders, without the need to rely on centralized or custodial exchanges. 

 “If an asset or token has to be listed by anyone other than the owner of the asset or token, it’s not a decentralized exchange” 

We envision that STOs will create greater trust with regards to raising capital on a blockchain, by providing higher levels of accountability and transparency compared to other blockchain based funding mechanisms such as ICOs, and will provide new methods of raising funds for various projects.

Nexus Records Supply Chains by Design ~ Creating Digital Ecosystems

Nexus Records Supply Chains by Design ~ Creating Digital Ecosystems

Transparency is imperative to building meaningful relationships. With Nexus, the recording of information is naturally transparent. As such, through the use of the Supply API, interactions between many different groups, such as producers, manufacturers, carriers, standards organizations, vendors, and consumers can be recorded transparently. This enables different parties to share information in order to build digital ecosystems or decentralized standards organizations (DSOs) that provide greater visibility into the standards of production across various sectors. 

Traditional supply chains are unable to support the growing interconnectedness that is required to produce the increasingly complex goods of today, while maintaining high levels of quality. They are managed through centralized services, and are often verified by costly third-parties that are required to be trusted. 

Nexus supply chains not only benefit large organizations with complex global operations, they can also be used to build digital ecosystems to support local economies by connecting producers, vendors and consumers within local peer-to-peer networks, reducing the dependency on large distributors. Nexus open source technology automates many processes and is available at a very low cost, thereby revenues to independent producers can be increased, while the cost to consumers decreased. 

First we will introduce some of the use cases of supply chains on Nexus, and then the technology that supports them. These use cases include benefits of increased trustworthiness of certification standards, protection against the sale of counterfeit goods, increased safety of products, provision of the life cycle of a product, real time data collection and tracking, integration with IoT systems, improved efficiency and security of operations and logistics, auditability, and the replacement of escrow services. 

Use Cases

Decentralized Standards Organizations (DSO)

Today, many standards organizations issue certificates, such as organic, sustainable, recycled, fair trade, no animal testing, vegan, biodynamic, non-GMO, ethical labor, and quality assurances for electronic goods and components. Logos, labels, holograms, QR codes, and more recently SmartLabels, are used to inform the consumer and vendors of these standards, however these methods are susceptible to forgery.

With Nexus, a digital certificate can be issued to the producer which is recorded on the blockchain. Furthermore, with the DAO (Decentralized Autonomous Organization) technology that we are developing, a DSO (Decentralized Standards Organization) formed of various voting groups, could help the organization of existing standards bodies.

Different DSOs could issue certificates for the following products for example:

  • Agricultural Produce & Fish
  • Minerals
  • Timber
  • Livestock 
  • Textiles & Leather
  • Renewable Energy 
  • Electrical Goods and Components
  • Vehicles

Below we will outline an example for a DSO called ‘FlyOrganic’, comprised of voting groups such as agricultural inspectors, consumers, ecologists, nutritionists, animal welfare, vendors, and farm owners, which would issue annual organic certificates to producers that reach the standards of the DSO. 

  1. A certificate is issued by the DSO i.e. Flyorganic, to an individual organic producer, such as a farm ‘Orchard Organics’. This could contain information such as location, farm name, address, acreage, produce, annual quantity of produce, practices, etc. 
  2. The newly certified farm can then issue their own product certificates that would be linked to the DSO issued certification. The farm would be authorized to create product certificates for the duration of the DSO certificate, which would require annual renewal.
  3. With the help of an IoT device the weight and the coordinates of the container could be recorded, and this information added to the mutable fields of the digital certificate to record ongoing data about the product.

The data format of the digital certificates could be standardized by the DSO ‘FlyOrganics’ to record metadata such as:

Product Certificate:

Certificate: 0x8060836f57ad22cb737b

Serial Number: 1F-92835473829

Certifier: FlyOrganic

Producer: Orchard Organics

Item: Organic Pink Lady Apple

Harvest date: 5th October

Sell by date: 15th October

IoT GPS: 40.741895/-73.989308

IoT Weight: 1,000kg

At the point of purchase, a consumer using a smartphone could scan the SmartLabel to retrieve the history of the product back to the issuance of the organic certificate, in order to check whether the product holds its advertised standard. Consumer apps could be developed that enable people to personalize their individual standards, and therefore receive personal product listings.

Authenticity 

Brand authenticity or quality assurance for high value goods can also benefit from digital certificates, in order to prevent the sale of counterfeit or fraudulent goods. Certificates could be issued by luxury brands, by quality assurance standard bodies for electronics, pharmaceutical companies, or by societies and guilds for arts and antiques. 

To support the resale of goods, the certificates would be transferable between parties, allowing buying and selling on secondary markets. Certificates on the blockchain would also reduce cases of theft, as people would be less likely to buy a good without a certificate.

Renewable Energy

Certificates can be issued to renewable energy producers. For example, a digital ecosystem can be built to allocate surplus electricity from renewable sources within a local power grid, enabling people to trade electricity without having to go through a central provider. 

Circular Economies

Supply chain technology can also be used to increase transparency and history of used goods, such as motor vehicles, by recording their lifecycle, providing many benefits to purchasers wishing to resell an item, and also to the recycling and remanufacturing industry. For example, vehicle registrations could record the entire past ownership of a vehicle plus any additional information provided by garages regarding services, modification or repairs.

Safety 

Traceability on the blockchain can aid the identification of the origin of contaminated foods in order to improve the accountability of food producers and reduce foodborne illnesses. Likewise, the technology can be used to identify the source of faulty electrical components.

Real Time Data Collection, Tracking & IoT systems

Items can have mutable data fields enabling important data to be uploaded to the blockchain along the supply chain, such as chemical and temperature readings, and pallet weights, without affecting immutable fields, such as the Serial Number. Containers can also have tracking devices which can intermittently upload GPS coordinates. 

The integration of IoT devices would replace the need for some manual data entry, reducing errors and fraud. A system of IoT devices could be used to create a distributed oracle system, to automatically cross reference collected data which could be used to streamline the work performed by DSOs.

Operations & Accounting

Supply chains combined with QR codes, SmartLabels, RFID tags and IoT systems, can provide organizations a very transparent and accurate account of their entire operation, including data on stock inventory, and state of goods, such as sell by dates etc. 

Supply chain data can be used for analysis and modeling for the purpose of managing or automating warehouse space allocation, distribution to meet consumer demand, shipping routes, upstream purchases, and financial projections. An accurate and automated supply chain can reduce the possibility of overproduction, the spoiling of produce, double handling and returns, erroneous stock accounting, and theft by employees. Overall, increasing the speed of production and delivery times, lowering the end cost to the consumer.

Auditability 

A certificate on Nexus naturally provides an audit trail. Each transaction, and delivery or sale along the supply chain is recorded, displaying an accurate history and sequence of events, making the process of auditing efficient and less prone to error.

Customs

Supply chain data can also be used to provide data to produce a receipt given by a carrier to a consignment of goods. With legal recognition, a bill of lading (BoL) could be issued using the information provided by Nexus for goods being shipped by sea or air, such as type, quantity, origin, and destination. 

Automatic Payments & Information Flow

With Nexus, a digital ecosystem would be the foundation of an automatic payment system. The end payment would have to be made using NXS or a cryptocurrency supported by Nexus. Payments for each item would then be instantly dispersed to the participants of the supply chain (i.e shop, carrier, producer, manufacturer, charitable cause etc). 

This would serve to improve the chain of payments which today requires manual transfers. By reducing the cost of the payment process, everyone in the supply chain receives a better deal.

Traditional supply chains use vertical payment systems, where the funds flow downstream from the consumer. In a horizontal payment system, the participants would be able to claim a percentage of the total revenue, through the tokenization of product certificates. In blockchain terms, this means that there is a shared revenue in the sale of the good that would be realized at the final point of sale. The certificate and applicable token would represent a source of revenue associated with a specific product, creating frictionless cooperation between all participants.

Automatic payments create an instant and transparent informational flow regarding sales, allowing easier coordination of harvesting produce, ordering supplies, assembly of manufactured products, packaging, and the orchestration of carrier and shipping routes.

Exchange of High Value Goods

With the exchange of high value goods, there is a requirement for the digital certificate to be transferred to the purchaser. In a conditional contract, the payment would be a prerequisite for the execution of the transfer, releasing the certificate when the payment is claimed by the vendor. This is one example of how Nexus can benefit the exchange of goods without the requirement of trusted intermediaries.

Nexus Technology 

We have designed a seven layered Software Stack with one layer able to record everyday items as digital items. This is the ‘Register’ layer which allows items to be transferred between users by a technology called ‘Signature Chains’.

The native functionality of Nexus contains the state and history of an item, enabling the recording of supply chains by design, without having to maintain a complex state and history in a single contract as do other blockchain based contracts. The technology is easily accessible through an API designed specifically for supply chains. Below is a list of our notable innovations that power supply chains on Nexus.

Supply Chain Application

For the creation of a successful digital ecosystem, different groups along the supply chain will require custom applications. On Nexus, all that is required is the development of the interface and logical layers, i.e an application integrated with the Supply Chain API, that interprets the items relevant to each type of group who interacts with the supply chain. 

If you would like to view a demonstration application for supply chains, you can view it here on our source code repository:

Github


Supply Application Programming Interface

Programming a supply chain with the Supply API is designed to be intuitive and very simple. A basic supply chain could be created with the following commands:

  1. supply/create/item – This initiates the item by the recording of meta-data. Parameters to this command are omitted.
  2. supply/transfer/item – This transfers the item to another user (sigchain).
  3. supply/claim/item – This allows the recipient of the transfer to claim official ownership of the item.
  4. supply/history/item – This provides a list of events associated with the item, including updates to the register, and change of ownership (sigchains) along its lifecycle.

The history of an item includes data fields such as created, modified, operation, and owner. It displays transparent data on the series of events along an item’s supply chain and life cycle. The functionality of supply chains is built into the design of the Nexus software stack; Nexus records supply chains by design. 

Registers

Nexus is built to facilitate the peer-to-peer exchange of any item. Items are recorded as registers, which are a data storage system that maintain an immutable record and history of an item, including its current and previous states. Registers record items as meta-data stored in a programmable object register. 

A register can be used to issue a digital certificate with immutable data for the purpose of certification or a quality assured standard, or as a certificate of authenticity. Some data fields can be made mutable to enable the modification and recording of data (such as GPS location) to be changed through the production supply chain by authorized accounts or IoTs. Mutable fields can also be used by the current owner of an item through its life cycle, to update notes regarding repairs on a vehicle registration, for example. Other data fields in a register, such as a certificate, could have mutable quantity fields, for recording and tracking a variable amount of items represented by one register.

It is also possible for fungible tokens to be issued from a register, for example to represent 1,000 semiconductors. This would provide the benefit to the consumer of having a ‘proof’ of the item through the ownership of the fungible token, which would be linked to the certificate produced by the manufacturer. This would aid the merging of supply chains for different materials that are required for complex products such as a Smartphone. The division and quantity of these tokens together would form the basis for the components of the device.

Signature Chains 

One of our most important Nexus technologies is the Signature Chain (sigchain), which is a decentralized blockchain account, accessible through a username, password, and pin. This pseudo-anonymous identity layer is important for the verification of all authorized accounts.

A register, being on the layer above the ledger where sigchains operate, is transferred across the sigchains that represent the accounts of the producers, vendors, and end consumer. Therefore, by design the transfer and claiming of registers between sigchains provides a history of a chain of custody, and any modifications or notes added to the mutable fields of a register. 

Sigchains replace the need for physical signatures and paperwork, and ensure authorization systems securely prove the identity of all participants or accounts. In our opinion, sigchains are a very important step for mainstream adoption across all use cases, given that users will no longer have the burden of storing private keys (as is the case with applications using other blockchain based contracts). Other benefits come from the efficiency gained by reducing the requirement of storing a large array of signatures on disk, generated through high transaction volume.

Contrarily, legacy blockchain designs rely on the safe keeping of the private key associated with an account or smart contract, which if lost could lead to broken links in supply chains, reducing overall system integrity. This renders legacy systems susceptible to human error, boding for the need for complex hardware designed specifically to store private keys securely. Though these devices are a step towards user friendliness, they are still at risk of being lost or stolen, and therefore are not reliable replacements for conventional authorization systems that exist in centralized systems. Please see Signature Chains for more information.

Contracts

There are many supply chains use cases that can use Nexus contracts to automate processes, increasing their efficiency and accuracy, thereby lowering the costs for producers, vendors and ultimately consumers. 

The majority of Contract functionality comes from the interaction of operations and registers, which are made immutable through the ledger layer. Operations are instructions that act on registers, and define contract logic. They include primitives such as ‘Debit’ and ‘Credit’, and conditions that reside as a contract between the parties.

These conditions disclose an agreement between participating parties, by outlining a set of requirements that must be met for the transaction to take place. They are the building blocks that allow users to engage in contracts with one another, such as contract expiration or the exchanging of items. More advanced forms of non-custodial escrow are also possible, which are discussed below. Please see Contracts for more information.

Escrow

Escrow on Nexus is achieved through ‘Arbitration Triangles’ which function as non-custodial escrow services between a buyer and a seller. Ultimately reducing the need for trust that is required for the delivery of high value goods between consumers, manufacturers, and suppliers.

An Arbitration Triangle at its most basic level, requires two out of three signatories to unlock the funds and item of an exchange, e.g between a buyer and seller of a good, or any link in a supply chain. Since the third signatory or arbiter (shipping company or carrier) does not have custody of the digital certificates or funds, they act only as a neutral arbiter to resolve conflict between the buyer and the seller. In the case of a dispute, the arbiter settles the disagreement, essentially facilitating the function of an escrow service. Any organization with a supply chain or transaction involving three or more parties can benefit from this unique technology.

For a high value item such as a laptop bought online, the item could be issued a certificate of authenticity. The non-custodial agent, such as the carrier would then assume the role of arbiter, as the item and purchase funds are placed in an Arbitration Triangle. The carrier delivers the package to the buyer, receiving an electronic signature from them, fulfilling their role in arbitration by signing that the package was delivered. This would release the certificate to the buyer, and the funds to the seller, all without the carrier ever having custody of the certificate. 

This means that the carrier never has possession of the certificate (register). Therefore, certificates of authenticity validate ownership rather than physical possession of an item, eliminating problems experienced in shipping with regards to manual paper signatures, theft by carriers, fraudulent claims, and erroneous deliveries. 

Insurance

Following on from the example of the Organic farm in the use case section, the payment for the carrier, (paid for by the farmer) and potentially a deposit from the carrier to ensure that they fulfill their part, (especially if the goods are of a very high value) are held in an escrow contract. The vendor would sign to release the funds to the carrier. If the vendor does not sign, they don’t receive the goods, nor does the carrier get paid. The carrier will possibly lose their deposit unless the goods are returned to the farmer (only the farmer can return the deposit back to the carrier on return of the goods). 

Similarly, an arbitration contract can be made between a shipping and carrier service to incentivise good behaviour, whereby deposits from both parties are held in a contract to ensure that they carry out the service that they have been consigned to. In the event that one of the parties does not fulfill their part of the service, the arbiter, such as a supplier, would decide which party would claim the deposit. This type of peer-to-peer depositing system holds the potential to change the way we view insurance services, and possibly reduce the requirement for them.

LISP

LISP (Location Identifier Separation Protocol) is a protocol designed by a small group of Cisco engineers who are responsible for many of the protocols that power today’s Internet. It provides important advancements to the Network Layer, and many necessary features for secure access schemes for hybrid networks. 

Most Internet devices use IPv4 addressing (the Internet equivalent of phone numbers), which is limited to around 4 billion devices. To accommodate the growth of Internet-connected devices, IPv6 was developed, though even decades later it still has not been widely adopted. On the contrary, LISP is able to use IPv6 as an overlay, since it does not suffer from the compatibility issues of underlay devices. The capacity of IPv6 is 2^128 devices, providing ample capacity for the growth of IoT devices. Please see LISP for more information.

Hybrid Networks 

Organizations that work closely together, such as producers, vendors and service providers, sometimes want to share information. However, they often wish to provide different levels of transparency to one another. Hybrid networks utilize technology that enables the granting of secure control access schemes, giving businesses the ability to privately share information with partners or alliances. These access schemes give specific accounts or applications access to various parts of the overall data, thus creating a ‘Hybrid’ of a public and a private network. Please see Hybrid Blockchain for more information.


DAO Technology 

Nexus is currently designing technology that can be used to create Decentralized Autonomous Organizations (DAOs). DAOs will provide more opportunity to people to shape the management of organizations by way of voting and interacting in working group structures. We envision this will empower many people to get involved in creating ethical, sustainable and regenerative practices, so that we can together build a resilient global community for the future.

August Newsletter 2019

August Newsletter 2019

August was a month of debugging, testing, and hardening code. The security audit is now complete. The feedback was that the quality of the code was very high, well structured, and designed. Five vulnerabilities were identified of which only one was assessed as high and one as medium, though no issues were found that could cause a delay to the release of Tritium. Independent Security Evaluators (ISE) have also provided us advice about keyloggers which is discussed below. They will be conducting a final assessment to provide a seal of approval that the above issues are resolved, after which we will announce the release date of Tritium and the corresponding activation timestamp. For more information on the details of the audit, please watch our latest Zoom meeting.

Zoom Meeting 20th August

Upgrade Procedure 

We have officially decided to end support for all v2.5 versions of the Legacy Qt Wallet. Please move to the Tritium wallet as soon as possible. When Tritium activates on the main network, you will no longer be able to stake with a legacy wallet, you will have to stake using your Signature Chain. The upgrade procedure will be as simple as loading the new wallet. You will be able to migrate your trust to your new Signature Chain by using the command line API, or via a migration button in the Nexus Wallet.

Wallet Update

Version v1.2.2 was released to fix small issues with the transaction page refresh, time filter, and some adjustments to the overview page. This update also includes two high priority security updates. These have been made in conjunction with the security audit. Please download the new wallet here:

Nexus Wallet

Testnet

The new Tritium testnet number will be 13 which will go live on Monday, September 2nd. If you would like to join the testnet, add -testnet=13 to your config file or command line, and your node will automatically connect and sync to the test network. Please pull the latest code from the ‘merging’ branch when joining the testnet https://github.com/Nexusoft/LLL-TAO/tree/merging. We would also encourage you to join the #tritium-testnet channel in the community slack where you can post questions or provide feedback/bug reports. 

Network Attack

On Friday 9th August, the Nexus network was subject to an attack allowing the attacker to generate blocks with an arbitrary coinbase reward. At approximately 8am UTC, the team was made aware of reports that Tritium nodes on the network had dropped out of sync at block 2778365. We started our investigation and found that this was due to the error “block 2778366 ambassador signatures invalid”. This check makes sure that the ambassador rewards — which are included with each coinbase block — are paid to one of the 13 hard-coded ambassador keys. The error suggested that the block had simply been constructed with an invalid ambassador public key in the coinbase, but upon investigation of the data, this was not the case — the ambassador key in block 2778366 appeared to be valid. For more information please read the article below. 

9th August Network Attack

Keyloggers 

We protect against viruses that read your wallet’s memory by encrypting your Signature Chain in memory. Even though this technique is useful, the threat of keylogging still exists if a virus is monitoring keystrokes. Due to this, we have been looking at solutions to protect your wallet against keylogger attacks. After a discussion with the security team at ISE, we were informed of different techniques that could be used to protect Signature Chain credentials. We have requested that this information be compiled into an easily digestible report to aid us employ some of these methods to further secure Signature Chains against keyloggers beyond the use of password managers. 

Signature Chains 

Below is new content published to the website about ‘Signature Chains’ which are used to create a decentralized blockchain account, accessible through a username, password, and pin. They are the foundation of a Digital Identity for managing assets, while maintaining pseudo-anonymity for privacy. In our opinion, Signature Chains are an important step for mainstream adoption of blockchain, given that users will no longer have the burden of storing private keys.

Signature Chains 

Digital Rights Management 

With Tritium, any type of digital asset can be registered on the Nexus Blockchain. Our new technology includes, digital licensing, Signature Chains, digital watermarking, tokenization, a Decentralized Exchange (DEX), and automatic royalty payments.

These collectively support agreements between a digital asset owner (licensor) and a purchaser (licensee). This true peer-to-peer exchange will provide a more efficient, accurate and secure way for exchanging value in the creative industry, and could possibly result in higher revenues to creators. Read more in the article below:

Digital Rights Management ~ Royalties & Licensing of Digital Assets

Fees

Discussions have taken place regarding the fee structure for Tritium. The below fees are close to being finalized, so please submit your input or requests for changes in the economics working group before the final Public Testnet (September 2nd, 2019). The suggested fees are as follows: 

Creating an unnamed account = FREE

Creating a named account = 1 NXS

Creating an asset/item (any object register storing user defined data) = 1 NXS

Creating a token:

The fee for creating a token is based on the number of divisible token units in the token supply. The token fee is still undecided, below we present two models. The first model is exponential, the second is linear. 

The exponential approach is 1.5 NXS per figures cubed:

Token Units

100 = 12 NXS

1000 = 40 NXS

10000000 = 514 NXS

100000000000 = 1996 NXS

1000000000000000 = 5062 NXS

10000000000000000000 = 10288 NXS

Fee = log10(nSupply)^3 * 1.5 NXS

The linear approach would charge 100 NXS for each significant figure above 100:

Token Units

100 = 0 NXS

1000 = 100 NXS

1000000 = 400 NXS

10000000000 = 800 NXS

100000000000000 = 1200 NXS

1000000000000000000 = 1600 NXS

10000000000000000000 = 1700 NXS

Fee = log10(nSupply) * 100 NXS

The above term ‘token units’ is defined as the number of figures used, meaning that the registration of a token with max supply of one whole token that is divisible to two decimal places would translate to 100 token units. 

Registering a local name (including when creating a named account or any named object) = 1 NXS

Registering a namespace = 1000 NXS

Registering a global name = 2000 NXS

Debit/Credit transactions = FREE

Transfer/Claim transactions = FREE

Object Register Update transactions = FREE

Q&A With Alex El-Nemer

Alex El-Nemer, director of the U.K. Embassy is holding a Q&A session in Slack at 1pm PST, Friday August 30th, 2019. He will be answering questions about how the Business Development team is progressing, so please make sure to drop in Slack if you’d like to speak to him!

Twitter Giveaway 

The winners of the Twitter giveaway were yugioh, cryptolegend10, ladjjn & cryptoBison. Thank you for your brilliant tweets, and a big thank you to mikecasey for funding the prizes, and jayden for his support.

We all appreciate your continued support and encouragement, 

The Nexus Team.

Digital Rights Management ~ Royalties & Licensing for Digital Assets

Digital Rights Management ~ Royalties & Licensing for Digital Assets

With the release of the much anticipated Tritium network upgrade, any type of digital asset can be registered on the Nexus Blockchain. Our new technology includes, digital licensing, Signature Chains, digital watermarking, tokenization, a Decentralized Exchange (DEX), and automatic royalty payments.

These collectively support agreements between a digital asset owner (licensor) and a purchaser (licensee). This true peer-to-peer exchange will provide a more efficient, accurate and secure way for exchanging value in the creative industry, and could possibly result in higher revenues to creators.

Digital assets include, but are not limited to:

  1. Music , Audio Books, E-books
  2. Graphics & Photography 
  3. Film, TV shows
  4. Games, Software and Apps

Digital Licences

When a digital asset is recorded on Nexus it is witnessed by a distributed consensus on the Nexus Blockchain. This makes the proving of asset ownership easy, and introduces the added functionality of digital licensing. The benefits of licensing on Nexus are threefold: Digital assets can be watermarked and traced for authenticity, license agreements can be executed in a genuine peer to peer interaction, and payments can be tokenized to distribute revenue between asset owners. All of these are facilitated through the interaction of three key architectural components: Signature Chains, Registers, and Conditions.


Signature Chains

A Signature Chain is a decentralized blockchain account that is accessible through a username, password, and pin. This identity layer is important for the managing of assets and digital licenses, whilst maintaining pseudo-anonymity for privacy. 

In our opinion, Signature Chains are an important step for mainstream adoption of blockchain technology, given that users will no longer have the burden of storing private keys. Please see Signature Chains for more information.


Registers

Registers are a data storage system that maintains an immutable record and history of all its current and previous states. Registers can act as assets, accounts, tokens, or any other object that requires a persistent state to be maintained. An asset is in essence a register with specific data formats. E.g:

Image ID: 108629084398374

License Type: Enhanced 

Image title: Arizona Sunset 

The above example displays a simple meta-data format for a photographic asset that is stored in a programmable object register. This format can be augmented with mutable and immutable type specifiers, meaning that a field such as ‘Image Title’ in the example above, could be mutable and able to be modified, while the other fields would remain immutable.


Conditions

Conditions are statements that are at the heart of a contract. Conditions generally disclose an agreement between the two pseudo-anonymous parties via Signature Chains, and outline a set of conditions that must be met for a transaction to be executed. This provides the building blocks of Nexus contracts, which stipulate the requirements for the contract to be fulfilled.


Digital Watermarking

With traditional methods of copyrighting, once a digital asset has been licensed, it is difficult to track infringement or misuse. Post-purchase, any digital asset (audio, film, text, software) can be registered to the blockchain, and contain an embedded watermark pertaining to a digital license. Watermarks can then be linked to a contract on the Nexus Blockchain, providing a way for purchasers to prove that the use of a digital asset is within the terms of their license agreement. With the use of a digital watermark reader, this technology can provide evidence of license violation. 

Though watermarked digital content is not a new innovation, linking said watermarks to licenses recorded on a blockchain is. This is a major step towards improving the overall security of watermarked content. In order for this technology to be of benefit to content creators, compatible media players, photo viewers and websites will need to be capable of verifying these watermarks. 

In the case of applications that do not support watermark verification, the watermark does not interfere with the quality of the original digital media, maintaining backwards compatibility with all existing media applications. Likewise, a reduction in quality or security will not be experienced by watermark enabled media players.

If you would like to view a demonstration application for watermarks, you can find it here on our source code repository:

Github-Watermarks

The intention of this technology is to provide independent creators and responsible consumers the tools to self-regulate, and ultimately rely less on third parties.


Legal Recognition

To see widespread use for blockchain enabled digital licensing, these assets and their ownership will require legal or common law recognition. Fortunately, the future looks promising, given that in some US states such as Arizona [Coindesk], a digital signature on the blockchain is already legally recognized.

Royalties 

Until now, tokens have mostly been used to raise capital in the form of Initial Coin Offerings (ICOs). Conversely, Nexus Tokens can either represent a store of value such as NXS, or enforce partial ownership in order to facilitate the payment of shared revenues for any asset. 

In the case of the creative industry, this tokenization model enables the automatic distribution of royalties to multiple owners of a digital asset. Examples of token holders include: musicians, models, actors, editors, producers, directors, scriptwriters, songwriters, writers, charities, graphics artists, seed investors, or anyone who had a share in the creation of the digital asset.

This will improve the process of distributing revenue to the relevant token holders, in a direct peer-to-peer manner, enforced by mathematics. This is in direct contrast to centralized intermediaries, whom often add both costs and time to facilitate transactions.

Please see Contracts and Tokens for more information.

Empowering Creators

Our new aforementioned innovations enable true peer-to-peer exchange by replacing traditional distribution channels. Our hope is that consumers will be provided with greater levels of transparency and flexibility, and that creators will have a greater say as to how their work is used, and be fairly rewarded.

A Vision of the Future

We see the future of digital licensing containing apps that allow anyone to look up an image (using technology like Google’s advanced image search), or an audio file (using technology such as Shazam), to find the available licensing, and with the click of a button the license is paid and distributed to all content creators. This will improve not only the mechanism for these licenses to be paid, but also the accessibility and transparency for the everyday user. Our innovations will ultimately bring creators and consumers closer together.

Read more:

The Nexus Ecosystem

API 

Nexus Contracts