I. KNOW BLOCKCHAIN
The Blockchain is a term that has come to mean many things to many people. For developers, it is a set of protocols and encryption technologies for securely storing data on a distributed network. For business and finance, it is a distributed ledger and the technology underlying the explosion of new digital currencies. For technologists, it is the driving force behind the next generation of the internet. For others, it is a tool for radically reshaping society and economy taking us into a more decentralized world
Whichever way you look at it, blockchain has become a term that captures the imagination and fascinates many, as the implications of such technology are truly profound. For the first time in human history, people anywhere can trust each other and transact within large peer-to-peer networks without centralized management. Trust is established, not by centralized institutions, but by protocols, cryptography and computer code.
The First Generation
The first blockchain was conceptualized in 2008 by an anonymous person or group known as Satoshi Nakamoto. The invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. The bitcoin design has been the inspiration for other applications and has played an important role as a relatively large scale proof of concept.
The Second Generation
Within a few years, the second generation of blockchain emerged designed as a network on which developers could build applications; essentially the beginnings of its evolution into a distributed virtual computer. This was made technically possible by the development of the Ethereum platform.
The important contribution of Ethereum as the second generation of blockchains is that it worked to extend the capacity of the technology from primarily being a database supporting bitcoin to becoming more of a general platform for running decentralized applications and smart contracts.
Current Constraints
The mining required to support the Bitcoin network currently consumes more energy than many small nations being equal to that of Denmark and costing over 1.5 billion dollars a year in electricity. A Lot of this is being fueled by cheap but dirty coal energy in China where almost 60% of the mining is currently being done. This high energy consumption is simply not scalable to a mass adoption.
The volume of transactions is likewise an existing constraint. With cryptocurrency, speed is measured by TPS transaction per second. The bitcoin network theoretical maximum capacity is up to 7 transactions per second while the Ethereum blockchain as of early 2018 can handle about 15 transactions per second. By comparison Visa’s network is capable of handling more than 24,000 transactions per second, similarly, Facebook may have about 900,000 users on the site in any given minute meaning that it handles about 175,000 requests per second.
Another issue is that of cost, the fact that it cost some small amount to run the network so as to pay the minors for maintaining the ledger.
The Third Generation
In response to these constraints, a third generation of blockchain networks are currently under development. Many different organizations are currently working on building this next generation blockchain infrastructure such as NEO, EOS, IOTA and they each use different approaches to try and overcome the current constraints.
Knowchain is a 2 layered blockchain that powers enriched decentralized Applications with Smart Contracts and Additional Information of users on-chain. We aim to become on of the top Third Generation Blockchain Infrastructure.
Knowchain goals is to build an extensive platform for building and deploying decentralized applications and smart contracts that are enriched by additional information of users and related appendix.
By allowing people to attach more information onto Knowchain, it aims to remove barriers between the crypto world and the real world where transactions need to have enough information to be executed.
II. Know Network’s Structure.
The blockchain is a distributed system, meaning there is no centralized organization to maintain and verify the entries on the database. This database is instead maintained by a large number of computers that are incentivized to provide computing resources by earning some form of tokens in exchange but these nodes themselves cannot be trusted individually. Thus it is required that the system provide a mechanism for creating consensus between scattered or distributed parties that do not need to trust each other but just need to trust the mechanism by which their consensus has arrived.
First generation Blockchain like Bitcoin, Etherium use Proof-Of-Work concensus to protect their system. Mining nodes validate transactions, add them to the block they are building, and then broadcast the completed block to other nodes on the network. In order to randomize the processing of blocks across the nodes and deter certain service abuses, blockchains use various time-stamping schemes, such as proof- of-work. Proof of work describes a system that requires a not-insignificant but feasible amount of effort usually by requiring computer processing time. The main drawback of this consensus is the energy consuming as mention in the previous question.
Knowchain use Delegated Proof of Stake (DPOS) concensus for our system. DPOS is the fastest, most efficient, most decentralized, and most flexible consensus model available. DPOS leverages the power of stakeholder approval voting to resolve consensus issues in a fair and democratic way. All network parameters, from fee schedules to block intervals and transaction sizes, can be tuned via elected delegates. Deterministic selection of block producers allows transactions to be confirmed in an average of just 1 second. Perhaps most importantly, the consensus protocol is designed to protect all participants against unwanted regulatory interference.
As mention above, Knowchain enrichs decentralized Applications with Smart Contracts and Additional Information of users on-chain. Thus, we need the special layer to fulfill this task, it is called as Ano Layer. Beside of this, in order to develop Knowchain Ecosystem, we also need another layer (Know Layer) to support a normal transactions (send, receive Know coin, vote for Delegate or register for becoming Validator, etc).
Know layer is the Value settlement layer. In short, you can transfer Know (crypto unit of Knowchain) through this layer to other people.
Ano layer, where additional information can be attached include Smart Contracts, Identifications, Degrees, Contents, Appendix, etc. and be bridged with a transaction in Know layer. Ano layer is needed to enrich the transactions on Knowchain, because in the real world need to be identified: from the identification of senders and receivers to the terms and conditions of the transactions. A bank in real world always require its clients to provide full information about themselves to use its service. With the ability of second layer, Knowchain can power both the anonymous transactions in the crypto world and identified transactions in the real world.
A Full Node is a computer who participates in Knowchain network and has connections with other Full Nodes. Transactions will be sent to Full Nodes and forwarded to Delegators.
A Delegator is a Full Node who has been voted by other Full Nodes (Voters) to be the validator for the next block. Voters are Full Nodes who stake their Know to get the votes. To vote for a Delegate, a Full Node must create a transaction called Vote Transaction and the total Votes will be counted with weights are the current staking balance of the Voters.
Ultranodes system is the unique design from Knowchain for its ultimate purpose to make transactions information-rich. To maintain the 2 layers blockchain effectively, the network requires a different design from other blockchains. Ano Layer in Knowchain will be managed by Ultranodes system. An Ultranode is a Full Node who stakes a large amount of Know into lock-box. The process working with Ano Layer will be independent with the Know Layer which is managed by the Delegates system.
To motivate the work of Ultranodes, Knowchain rewards the Ultranodes system by the fees of the users for the information attaching processes. Ultranodes also get Block rewards from Know Layer which are shared by the Delegates for the participation in the transactions which are related to the Ano Layer.
A Full Node can be rewarded by applying to become a Service Ultranode. A Service Ultranode is a trusted Ultranode who provides extra services to the Knowchain network. Basic Ultranodes provide attaching and storing services for the Knowchain network on Ano Layer. Advanced Service Ultranodes provide services like Verification of Ano units, Instant Payment System or Private Payment System. Service Ultranodes must be trusted by the network.
Service Ultranodes can be run by Governments, Hospitals, Universities, Banks and Enterprises. The services on Knowchain network are provided by certain Service Ultranodes and they are not decentralized.
As a third generation of Blockchain, we support building Decentralize Application and Web 3.0 in our system.
The idea of web 3.0 has been around for a while but it is only very recently with the developments of the blockchain that it has actually started to become something real. Web 2.0 has evolved to become highly centralized around very large platforms running out of ever-larger data centers, creating many issues surrounding, security, privacy, control and concentration of power in the hands of large enterprises, it is only today that these issues are starting to enter mainstream discourse. Web 3.0 is set to disrupt this whole technology paradigm as the critical change that is coming about is that we are decentralizing the Web. We support Decentralize Application and Web 3.0 with Know’s KDSP and Know’s Smartconstract.
As a third generation of Blockchain, Smart Constract plays important role in our network.
This is similar to IPFS platform, it support the process of uploading, saving users file in the Know distributed network.
III. KNOW LEDGER
People sometimes talk about the blockchain as a “trusted machine” in its capacity to enable a network where trust is created by design. Because the blockchain creates a trusted database it can function as a record of value storage and exchange, these records of value may be called ledgers.
Since ancient times, ledgers have formed the backbone of our economies — to record contracts and payments, for buying and selling of goods, or the exchange of assets like property.
These ledgers started out as records in stone, clay tablets, and papyrus and later paper as they evolved into the ledger books supporting modern accounting. They enabled the formation of currencies, trade, lending and the evolution of banking.
Over the last couple of decades though, these records have moved into the digital realm as whole rooms of people working to maintain accounts have become replaced by digital computers which have made possible our complex global economic system. Today, this record keeping system is once again being revolutionized as these ledgers are shifting to a global network of computers which is cryptographically secured, fast and decentralized, what we call a distributed ledger or distributed ledger technology DLT for short.
Data, that is a very valuable asset in an information society and of critical importance to tackling major societal challenges, is being used against us in many ways, creating a stumbling block that societies are becoming increasingly aware of.
Currently, centralized organizations like Google and Facebook suck up all the little bits of data we leave behind us and use it to serve us customized advertisements from which they create their revenue. This results in a huge power imbalance within society where centralized organizations armed with teams of mathematicians and computer scientists use mountains of data to influence people’s behavior towards purchasing the products of their advertisers.
In a world of distributed ledgers, people have their own little databases on the blockchain and can own their own data giving it to organizations to use when and where needed; fundamentally reversing the current dynamic and empowering people. Your health records reside in your health ledger and different healthcare providers can access and update that single record but only with the permission of the end user as the data remains theirs.
Know’s Ledger will help people to own their own database on a distributed ledger they can transact directly peer to peer the individual has a ledger record and a secret key with which they can access their record. When they send money they send it directly to the other person’s record, simply debiting from your record and adding to theirs directly peer-to-peer.
IV. Know Smart Constract.
One of the key technological innovations of blockchain 2.0 has been the development of what are called smart contracts. Smart contracts are computer code that are stored inside of a blockchain which encodes contractual agreements. Smart contracts are self-executing contracts with the terms of the agreement or operation directly written into lines of code which are stored and executed on the blockchain computer.
Our economies are powered by a massively complex set of contractual agreements that are currently created and enforced by centralized organizations like insurance companies and banks which are supported by the ultimate centralized authority, the nation-state system. Our societies and economies are almost completely dependent upon centralized third-party organizations to maintain and enforce these contractual agreements. Smart contracts feature the same kind of agreement to act or not act, but they remove the need for the trusted third party between members of the contract. This is because a smart contract is both defined by the computer code and executed or enforced by the code itself, automatically without discretion.
As such blockchains and smart contract technology can remove the reliance on centralized systems and enable people to create their own contractual agreements that can be automatically enforced and executed by code.
A combination of smart contract with blockchain-encoded property gives us the idea of smart property. Smart property is simply property whose ownership is controlled via blockchain encoded contractual agreements. For example, a pre- established smart contract could automatically transfer the ownership of a vehicle title from the holding company to the individual owner when all the loan installments have been cleared. The key idea of smart property is controlling ownership and access to an asset by having it registered as a digital asset on the ledger and connecting it to a smart contract. In some cases, physical-world hard assets could quite literally be controlled with the blockchain.
Know’s Smart Constracts have some advantages:
Firstly, they are automatic which could remove time and costs associated with managing and enforcing them; making them more efficient as they can be cheaper and faster to run. Through this form of automation, a much greater amount of exchange could take place that otherwise would never have happened. In such a way we can see how distributed ledger and smart contracts are a key part of enabling a service economy where ownership is displaced by temporary usage through the on-demand provisioning of services.
Second, they could reduce corruption, as the code is both transparent in its workings and automatically executed this leaves little room for a centralized organization to alter it to their advantage.
Thirdly, they can reduce dependency upon centralized organizations as people may be able to set up there own contractual agreements peer-to-peer, thus limiting the arbitrary power of centralized organizations.
Lastly, they can also deliver certainty as smart contracts guarantee a very specific set of outcomes that are predetermined beforehand, enabling all parties to know exactly what will happen when.
V. Know Token and ICO
At the heart of this system is the distributed ledger which records the exchanges of value. These distributed ledgers can account for and validate the exchange of any form of value; it may be a currency, it may be property, it may be a kilowatt-hour of energy, the usage of a parking spot, the number of followers a person has on social media.
These distributed ledgers provide the infrastructure for building token economies. A token is simply a quantified unit of value. Tokens are both generic and fungible. It is generic in that it can be used to define any form of value and it is fungible meaning it is exchangeable between different specific forms of value.
The token system enables networks to overcome the chicken and egg problem. If you are the first user of a network like eBay, then the value would be very low, thus it is difficult to get the network started because it has to reach a critical mass before it will be of value to the users; this means that it may require a large investment to create a network.
The token system extends the benefits of being an early adopter of a new network to all the users and thus helps to solve this issue. It does this by issuing tokens for anyone to purchase at the beginning of the project, as the project grows the tokens come to have greater value for all of the holders.
With blockchain and smart constract technology companies no longer have to go to traditional capital markets through an initial public offering of shares in the company in exchange for money, but instead they simply sell tokens directly on the internet to raise initial capital for the project in what is called an initial coin offering or ICO.
Know token is the crypto unit on top of Knowchain to use as fuel for the network. Know token is used for payment from users to Delegates (voters, stakers), Utranodes to execute transactions, attach information, deploy Smart Contracts, decentralized Applications. Know is also used in reward system where contributors are paid. They are Delegates, Ultranodes and Services Ultranodes.
Know’s ICO:
Start: July 1, 2018 (9AM — GMT)
End: September 20, 2018 (11AM — GMT)
Acceptable Currency: ETH
Know Token for public sale: 5,067,063,501 KNOW (70%) Tokens Exchange rate: 1ETH = 50000 KNOW
Minimal transaction amount: 0.01 ETH
VI. Know Operation.
Smilar to Etherscan of Etherium, you can check your transactions on Know network via website:
https://dev.explorer.knownetwork.io
You can also create a new account and make some types of transactions such as sending, receiving Know, voting for delegate, registering Full nodes, etc via our web wallet.
https://dev .wallet.knownetwork.io/
You can make your transaction by registering account and login to Know’s Wallet.
Transactions on Ano Layer is uploading file to Knowchain from your wallet account.
This will be done in your wallet, this is likely attach documents on google drive or facebook. Some functions related to Ano layer will be updated in the Know wallet soon.
TPS — Transaction per second shows how fast your transactions can be done, with Etherium this number is 15, with Bitcoin this is 7, with some third generation platform this could be 100,000 and Know network also aim to this number or higher 100,000.
Know’s transaction fee will really low due to the high in TPS, just 0.1 Knowfor the normal transaction. With transaction including attach your file, it mays be fixed after Ano layer is successfully built.
VII. Know Use-case.
Know network can be applied to solve a lot of problem from Society, Environment, Economic and Finance, etc.
For example, in Economic and Finance field, it can solve some master like context globalization, property rights, supply chain, etc.
You can find the detail of some Know Use case, we have implied in our Whitepaper page 39 to 4.
References
[1] Satoshi Nakamoto, “ Bitcoin: A Peer-to-Peer Electronic Cash System”, https://bitcoin.org/bitcoin.pdf, 1998.
[2] Vitalik Buterin, “A Next-Generation Smart Contract and Decentralized Application Platform”, https://bitcoin.org/bitcoin.phttps://github.com/ethereum/wiki/wiki/White- Paper, 2014.
[3] KNOW Foundation, “Know network White Paper”, https://knownetwork.io/. [4] Complexity Labs, “An introduction to the Blockchain”,
http://complexitylabs.io/blockchain-circle/blockchain-book/.
Original article: https://medium.com/knownetwork/know-network-frequently-asked-questions-e6682634ccdc
