Core Objectives
Establishment of diversified byte assets and standards
Bytom aims to build a global open platform for registration of byte assets and to facilitate the definition, creation of byte assets. and to makes it easier for users tounderstandi
Interactive tool for building diversified byte assets
Aside from being the most basic tool for asset exchange (change of ownership and swap of various digital assets following certain protocol). Bytom will also support more complicated forms of interaction, for example: (A)Triggering tool: the asset generates a deterministic Y/N Boolean result or numerical result from a protocol-compliant vote to activate participants in the.atomic world to share dataset(B)Forecasting tool: For example, through zero-sum game, bilateral or multi lateral betting forecasts are generated like flight delay or winning candidate. Such forecasts could be used for hedging in financial sectors and insurance purpose inthe real world.
In order to ensure the security of the transaction data of the entire block chain, the block generation needs to follow a certain Consensus Program. The consensus program.of a secure asset blockchain should include the following attributes:(1) Verify the authenticity of the transaction: transaction authenticity verification only involve with the public-private key pair.A single participant can generate and use .multiple key pairs(2) Non-repudiation: participants of a transaction cannot deny the occurrence of the transaction.(3) Integrity: transaction cannot be modified.Transaction is broadcast the peer-to peer network once it has been created.
In accordance with the principle of the minimum viable blockchain. transactions needs to be packed into blocks, making the miner fee relatively low compared to the value of the asset.Valid block requires effective PoW. which is difficult to provide but easy to prove. PoW is achieved through hashcash algorithm, which is built on top of energy cost, thereby increasing the cost of generating valid blocks, making the cost unbearable for malicious attackers.Bytom focuses on providing a blockchain solution particularly for assets. The project requires the majority of nodes to reach a strong consensus so thatthe entire system is not vulnerable to Sybil attack and 51% attack. Therefore performance is sacrificed to meet the demands of decentralization and security (comprehensive integrity) as described in the Impossible Triangle.Built on top of the PoW mechanism of Bitcoin and Ethereum, Bytom proposes a consensus algorithm that is friendly to Al ASIC chips so that the hashing power can be applied to the Al hardware acceleration service, thus solving the hardware consumption problem of PoW miners.
Transactions
A transaction is a basic operation of Bytom Assets. which contains a data structure with values of inputs and outputs. Inputs
Can be one or different types of digital assets, or an output of a certain transaction;
Outputs
Determine the outcome of the asset transaction, which is an asset operation program that specifies the way in which the output will be spent in the future.The following figure (Figure 4) is transaction using USD, EUR as example, which could be replaced with BTC or ETH. The same applies to other examples
The inputs of each transaction must be a set of newly generated asset units, or al result of a set of BUTXO returned by an asset operation program. Both types of inputs must be verified by the above-mentioned Issuance Program.The verification process of the issuer program is to pass parameters to the Witness Field of the transaction and transaction will be executed if verification is approved (Figure 5). This part is somewhat similar to the "Segregated Witness" of BIP141
For example, the Asset Issuer program and the Asset Operation program can initiate a authenticity verification. A certain message is hashed and signed, then the hashing value and the signature of which could be used to verify whether the signature is signed by the private key corresponding to the public key..
Contract layer: Contract layer design
Genesis Contract
The Genesis contract is a special type of contract on Bytom. The genesis contract can issue and audit smart contract and retain some access for developerssuch as private key, application scope etc. The Genesis contract can executestandardization and automated audit to a certain extent to ensure that the assetsreleased will be in line with the corresponding rules and templates. The underlyino implementation of the Genesis contract will call the issuing program in the datatransmission layer: Asset Issuance Program.
General Contract
General contract has two functions: trading of assets and the setup anc verification of dividends distribution. Such authority is open in the general control which is equivalent to a fun in real life. If a new assets needs to be developed or introduced into the general contract, it is necessary to submit a request to the Genesis contract for approval. The underlying implementation of the Genera contract will call the controller program in the data transport layer: AssetManagement Program.
Cross-chain asset transactions and dividends distribution through side-chain
In order to operate assets on other blockchains. developers can create a tiny version of the X chain (other blockchains) or Xrelay. Dapp developers could perform API calls via..1smart contract to verify network activities on X blockchain, thus achieving cross-chain.communication. asset transaction and dividend distribution in the contract.
Bytom provides various PC, WEB, mobile applications to facilitate the asset management by calling contracts.
Scenario A: Management of Income Assets
Bytom can be used for management of income assets. Blockchain can eliminate the information asymmetry in the fund-raising campaign. operation and follow-up funds of a crowdfunding project, reducing the trust costs. Built-in smart contract is available when issuing crowdfunding assets through the programmable interface provided by Bytom so that funds are spent as it is designed for. Smart contracts also guarantee that if a scheduled goal is not reached. funds can be automatically returned to the investor's account. All of these operations do not require third party endorsements or commissions paid to third parties.The advantages of managing crowdfunding projects via Bytom are: (1) Transparent rules and audits: When investors participate in Bytom-based projects, a permanent and immutable record is kept. The subsequent spending of these funds is also kept in an open and transparent ledger that anyone can access. These features offer the level of trust and security that traditional payment processors and auditors cannot provide. (2) Better liquidity: crowdfundingbackers can trade their assets quickly and simply with others via Bytom. The transaction can be done on the p2pl exchange through the custody feature of Bytom..
Scenario B: Management of Non-listed Company Equity
Non-listed companies are usually weak in handling equities, options. funds and process due to the restriction on spending. For example. a medium-sized financial institutions need to hire professional lawyers and accountants to manage company assets due to the complexity of company structures. Startup company, which receives investment from investment institutions. could expand their network through business investors at lower cost.The asset management feature of Bytom targets three types of users: first.companies can reduce their cost on managing equities and options and extend their funding raising source: second, private equity fund managers can issue contract-type fund through Bytom: third, the lawyers can sign off their work after completion of legal services to enterprises via Bytom. Bytom offers enterprise with convenient asset registration, management and.exchange system, and to build an efficient and credible platform for investment and financing. A blockchain asset registration and exchange platform usually offers the.following services: design of share structure, design of shareoptions andthe management, online creation, distribution, authorization planning of option maturity. online creation.granting, approval and signoff of agreements. The platform should also provide.enterprises and incubators with customized legal consultation both online and offine so.that executives can monitor the status of assets in real-time understanding of equity status and management, so as to create a substantive endorsement of the asset network.Changes in corporate governance can be done through an online smart contract + electronic sign, eliminating the need for complex paperwork.Bytom is also applicable to the contract-type fund management. Private equity fund managers use Bytom to issue the contractual fund. Asset audit, investor feedback rules.repurchase rules and transaction rules are defined in the smart contract which will make.the whole management process transparent and legally compliant It' s easier to transfer and trade fund shares. Investors can be assured to purchase long-term equity investment.fundswithout worrying emergent needs. Through the transfer system of Bytom, investors.can trade their shares any time.
Scenario C: Securitized Asset Management
Asset Backed Securities (ABS) refers to the assets that lacks liquidity but have future cash income. These assets are transformed into securities that are tradable in financial market through structural reorganization.There are 3 steps to securitize assets. First, the issuer is to set the asset to a SPV (Special Purpose Vehicle). the second step is to separate the SPV into shares and the last.step is trading. The traditional process is complicated and inefficient A company that wants to issue shares must first sign contract with a broker. The approval process is.lengthy and complicated before investors can apply for investment In addition, even when the shares are traded in the market there are a few days between the securities.trading day and the settlement day. With blockchain technology. ABS can be simplified.into three steps: one is the right reaistration: second is the tokenization of the asset: third.is the transactions of smart contract.Management of securitized assets via Bytom can greatly improve the efficiency.safety and traceability of ABS operation. The system can also store transaction data safely.ensure that information cannot be forged and modified. and automatically execute smart contract. All the market participants in the ABS trading could be kept informed of the asset registration and transaction information simultaneously through distributed ledger and consensus mechanism, which effectively solve the settlement issue between agencies.
