distributed credit chain whitepaperdcc.finance/file/dccwhitepaper.pdfdistributed credit chain...

DISTRIBUTEDCREDITCHAIN

DRAFTFOROPENCOMMUNITYREVIEWANDSUBJECTTOCHANGE.

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CyberShengFoundationLtd. 1



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DistributedCreditChainWhitePaper

CyberShengFoundationLtd.2018



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TableofContents

1. BriefIntroduction ....................................................................................... 4 2. DistributedBankingBeginswithChangesinCreditBusinesses ........................ 6 2.1. TraditionalCreditBusinesses ................................................................. 6 2.2. CentralizedCreditService ..................................................................... 8 2.3. CreditDilemmaBroughtbyCentralizedService ....................................... 8 2.4. TheValueofDecentralizedBlockchaintoCreditBusiness ....................... 10 3. HowDistributedCreditSolvestheCentralizedCreditProblem ...................... 14 3.1. UserAccountIdentificationSystem ...................................................... 14 3.2. DistributedCreditMaintenanceSystem ................................................ 15 3.3. Blockchain-basedLendingBusiness ...................................................... 19 3.4. Non-CooperativeGameBetweenParticipants ....................................... 21 3.5. AdvantagesoftheEcosystem .............................................................. 22 4. ProductScenarios ..................................................................................... 24 4.1. LoanRegistrationService .................................................................... 24 4.2. FacilitatingAssetSecuritization ............................................................ 27 5. EconomicEcosystemModel ....................................................................... 29 5.1. DCC-ValuationCredentialsofEcosystem ............................................... 29 5.2. BenefitsofEcosystemContribution ...................................................... 29 5.3. UseofDCCinDistributedCreditChain ................................................. 30 6. TechnologyRealization .............................................................................. 33 6.1. SystemStructure ................................................................................ 33 6.2. Dapp ................................................................................................. 33 6.3. Account(Wallet)System ..................................................................... 34 6.4. GatewayService ................................................................................. 36 6.5. OpenPlatform ................................................................................... 37 6.6. Opensourceframework ..................................................................... 37 6.6. BlockchainandSmartContract ............................................................ 42 7. DistributionPlan ....................................................................................... 51 8. UsePlanforRaisedFunds .......................................................................... 53 9. DevelopmentTimeline .............................................................................. 55 10. CyberShengFoundationLtd. ..................................................................... 57 11. CoreTeam ............................................................................................... 58 12. Advisors .................................................................................................. 60 13. Partners .................................................................................................. 64 14. EarlyInvestors .......................................................................................... 66 15. Risks ........................................................................................................ 69



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1. BriefIntroduction

Acceleratingdigitalization,fasterInternettransmissionspeeds,continuousaccumulation

of distributed computing resources, the application of mathematic and cryptographic

technologiesinthedigitalera:thesearethefactorsthatleadustoforeseethatinthefuture,

wewillseeanunderlyingpublicchainbasedonthefeaturesofBlockchain(includingbutnot

limitedto:decentralization,openness,autonomy,irreversibility,andprivacyprotection).This

underlying public chain will be utilized for distributed credit reporting, debt registration,

wealthmanagement,andassettransactions. Itwillenablebusinessparticipants indifferent

countries and regions around the world to provide financial services in a much more

convenientway.Anewtypeofvirtualagencybasedonblockchaintechnology—"Distributed

Banking"—willemerge.ADistributedBankisnotatraditionalbank,butratheranintegrated

ecosystemofdistributedfinancialservices.

The concept of Distributed Banking is to break the monopoly of traditional financial

institutions through fair financial servicedand returnearnings from financial services toall

providersandusers involved,sothateachparticipantwhohascontributedthegrowthofthe

ecosystemmaybeincentivised,thustrulyachievinginclusivefinance.

Through decentralized thinking, Distributed Banking will be able to change the

cooperation model in traditional financial services and build a new peer-to-peer and all-

communicationscooperationmodelacrossallregions,sectors,subjectsandaccounts.

As it pertains to business, Distributed Banking will completely transform traditional

banking's debt, asset, and intermediary business structure through replacing liability

business with distributed wealth management, replacing asset business with distributed

creditreporting,debtregistrationandreplacingintermediarybusinesswithdistributedasset

transactionwith.Thetree-likemanagementstructureofthetraditionalbankwillevolveinto

theflatstructureofDistributedBanking,whichwillestablishdistributedstandardsforvarious

businessesandimproveoverallbusinessefficiency.



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Asitpertainstodistribution,decentralizationisdisintermediation,awayofbreakingup

originalexcessivepremiumsthatresultfrominformationasymmetryamongintermediaries,

andreturningsuchpremiumstoecosystemparticipants,thusachievingtheredistributionof

ecosystem value as well as fair distribution among participants through digital consensus

algorithm.

As itpertainstoregulation,thefactthatallrecordsregistered intheblockchaincannot

betamperedwillenableregulatorstopenetrate intotheunderlyingassets inrealtime.Big

data analysis institutions can also help the regulatory bodies understand and respond to

industryrisksmorequicklybasedonblockchaindataanalysis.Itwillbepossibletodevelopa

new"BaselAccord"onthemanagementsystemofblockchain-distributedbanks.

TheFoundationwilllaunchamainblockchain-DistributedCreditChain(DCC)toestablish

business standards, reach consensus on the books, deploy business contracts, implement

liquidationandsettlementservices,andsoon,foravarietyofdistributedfinancialbusiness.

Theestablishmentof adistributedbanking systemwill requirea five-oreven ten-year

process.Wehope thatafteraperiodof construction, thedistributedbankcanbecomean

importantnodeofnewfinance,andtraditionalbusinessescanenterthedistributedbusiness

ecosystemthroughdistributedbanking.

We will begin with conducting credit business on DCC, and reconstruct the business

ecosystemoftraditionalcreditthroughdecentralizedthinkinganddistributedtechnology. In

thefollowingsection,wearegoingtospecificallydescribethereformsofdistributedbanksin

thecreditfield.



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2. DistributedBankingBeginswithChangesinCreditBusinesses

2.1. TraditionalCreditBusinesses

Definition of credit business: a credit activity wherein the holder of certain currency

positions temporarily lends an agreed-upon amount ofmoney at an agreed-upon interest

ratetoaborrower,whorepaystheprincipalandinterestaccordingtothetermsandperiod

as agreed. As one of the most important activities in the financial market, its orderly

mangementhasanhugepositiveimpactonthedevelopmentofsociety.

The fundamental function of the credit market is to adjust temporary or long-term

fundingshortfalls:ineconomics,theplayerswithsurpluseshaveextrafundsanddonotwish

to increase their current expenditures,while thosewithdeficits are in searchof spending,

butfailbecauseoftheirliquiditycrunch.Withinthecreditmarket,assetsandcapitalcanbe

properlyallocated,allowingthesmoothfunctioningofoureconomicsystem.

The history of the credit industry goes back a long way.We can find traces of credit

systemsandtheconceptofinterestattheverybeginningofhumancivilization,witha3,000-

year-old written loan contract fromMesopotamia. Back then, the practical application of

suchpaideconomicactivityhadalreadybeendemonstrated.

Withoutcredit,themassiveexpansionandprogressofhumancivilizationwouldnothave

been possible. The loans supported Spain's exploration into the New World, and made

possiblethecolonizationoftheUnitedStates,thuspropellingtheIndustrialRevolution.The

utility provided by loans to the community is enormous, and has enabled some of the

greatestprojectsknowntomankind.

Untilthe18thCentury,thelendersstillutilizedcollaterals,andthemaintypeofloanwas

thecontractualloan.

The early 19th Century ushered in a new era of loans and amore equitable platform.

Established in December 1816, the Philadelphia Saving Fund Society(later Philadelphia

SavingsFundSociety(PSFS))wasthefirstofmanysavingsandloanassociations.Asahighly



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centralized financial intermediary, itaimed toprovide theaverageAmericanswithsavings

andloansresources.

When assessing mortgages today, nearly 90% of lenders use FICO, which is

recommended by the Federal National Mortgage Association (Fannie Mae) and Federal

HomeLoanMortgageCorporation(FreddieMac).In1959,lendersofficiallybeganusingFICO

scorestomakeinformedcreditdecisions.

WiththedevelopmentofmobileInternet,bigdatahasrapidlyemergedwithakeyrolein

making credit decisions in the United States and other global markets. There are three

primarymethodsforbigdataintakingmarketshare:

First,datamining,datamonitoring,datacomparisonanddifferentiatedcompetition;

Second,analysisanddecisionsbasedonexperimentsanddata;

Third,marketingandadjustmentbasedonbigdata;

Thedata-driven credit business offers usmany inspirations anddramatically improves

creditefficiency.However, thecreditbusiness ineverycountry isrepletewith loopholesat

every stage of the process, such as unclear rights and interests, high operating costs,

inefficientoperations,untrustworthycredentials,andprivacyleaks.

Therootcauseoftheseproblemsliesintheprovisionofservicesbyfragmentedparties

throughvariouskindsofcentralizedsystems.First,thecentralizedsystemscausetoomuch

instabilityandheightentheriskofcounterfeiting.Second,thefragmentationamongsystems

significantly increases mutual verification and trust costs. Finally, data is neither well-

encryptedduringdelivery,noractuallyauthorizedbyusersduringutilization, thusenabling

abusesofprivacy.

Ashumaneconomicactivitiescontinuetodevelop,itisbelievedthatthecreditbusiness

will further flourish, which consequently raises the bar for credit efficiency, privacy

protection,andcostreduction. It isbelievedthattheideaofdecentralizationandtheopen

consensusmechanismsofblockchaintechnologywillofferabettersolution.



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2.2. CentralizedCreditService

Takingtheintermediariesthatprovidecreditservicesasexamples,manycreditagencies

aremired ina terrible crisis.Manyonline credit agencies, takingadvantageof information

asymmetry, have become a centralized profiteering industry.Where do their huge profits

come from?Data tellsus that thehighestproportionof their incomecomes from interest

spread. Froman industry-wide perspective of a particular developing country, the interest

spread provides 80% of a bank’s revenue. The lending-deposit spread stipulated by some

centralbankcanreachas lowas3%-5%;however,theseareonlynominalratesearmarked

for big businesses. For most ordinary small- and medium-sized enterprises, the lending-

depositspreadcanreach7%.

Thecentralizedcreditmodelgivessuchcentersmonopolisticadvantagesmonopoly.Due

to information asymmetry, the lenders and borrowers lose direct trading opportunities.

Therefore,peoplearethinkingaboutapossibilityforcreditservicewithoutaspreadmadeby

intermediaries,whichwouldallowlenders,borrowers,riskcontrolmodels,collectionoffices,

and insurance institutions to participate together. In such service, lenders and borrowers

wouldbeable toachievedebit -creditbalancebasedonconsensusand for thepurposeof

service.

2.3. CreditDilemmaBroughtbyCentralizedService

• Cost

Thecorecostmodelofa creditagency is to share thecosts incurredby non interest-

earningelements(client-gaining,data,creditreview,etc.)andnon-repaymentofloans(bad

debt)bychargingthe"goodguys"whocanpaybackthemoney.

Obviously, thiscost-sharingapproach isextremely irrational.Forborrowers, itbringsan

additional cost. For credit agencies, their profit margins are always limited, and cost

managementbecomesevermoredifficult.Efficiencyisdraggeddown,andtheprofitmargin

cannotbeimproved.



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Fromanindustryperspective,theengineeringcostsofinvestingsignificanttechnological

power in algorithmic and computation are redundant: nearly every financial institution

repeatedly invests in science and technology building systems simply to determine the

borrowingneedsofroughlyidenticalgroupsofpeople.

• Efficiency

Most borrowers in the consumer financial markets of most countries have little

knowledgeonapplicationrequirements,theirowncreditworthiness,andaccessibleservices.

Thishasspawnedalargenumberofserviceagenciesandloanintermediaries.CreditKarma,

for instance, helps borrowers check their own credit scores and recommends consumer

finance and credit card products to borrowers, which undoubtedly prolongs the loan

applicationchainandreducestheefficiencyofservicedelivery.

Fromthecreditagency'sperspective,significantamountsoftimeandenergyarewasted

in verifying the credit of borrowers who do not suit their risk appetites, which leads to

resourceswasteanddrasticdecreaseinefficiency.

• Borrower’sInterest

Borrowers lack the ability to self-certify their credit,whichmakes intermediariesmore

“important” in consumer credit underwriting. Setting aside false information and looking

merelyatnormaloperations, inconsumercreditunderwritingofbothdevelopedorunder-

developed countries, there are professional loan intermediaries/brokers or customer

managers thathelpborrowersprove their “creditworthiness.”Especially in thosecountries

wherethecredit informationsystemisunderdeveloped,thesizeoftheloansavailabletoa

borrowerissignificantlyaffectedbythematerialprepared.

Thiscausestheborrowertobeunabletoknowtheirrightsand interests,andalsobars

borrowers from effectively accumulating their credit. For example, in China, the primary

purposeformorethanhalfofyoungcreditcardapplicantsisto“createacreditprofile.”



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• JointDebt

The level of credit reporting in different countries in the world is imbalanced.

Constructionof credit reporting in somecountriesand regions is relativelybackward,and

thenumberofcustomerswithcredit records is insufficient,whichalsospawnedtheglobal

entrepreneurialwaveofInternetfinancetoservecustomerswhohavenocreditrecords.

Beneath thiswaveofprogress,however, the issueof jointdebtshas largelyhampered

the industry development and triggered major social concerns. From a borrower’s

perspective,debtinformationis“hashed”byvariouscreditagencies,butnooneshouldknow

moreaboutthehistoryoftheirloansandrepaymentsthanborrowersthemselves.Thecost

ofestablishingacentralizedinstitutiontocarryoutindividualcreditreportingishigh.

• Profiteering

A centralized credit model confers monopolistic advantages to more centers, enticing

many financial institutions to deviate from their primary purpose— serving customers.

Aiming for profitability, they deduct lenders while squeezing borrowers, and expand their

profitsbyextendingtheircustomerbase.Iftheseprofitswerenotconsolidated,webelieveit

would promote the sound development of more industries through improving talent

recruitment,makingbetterinvestmentintechnology,andincreasingbenefitstousers.

2.4. TheValueofDecentralizedBlockchaintoCreditBusiness

2.4.1. EliminatingMonopolyandProfiteering

Everyone will be able to choose their debtors, and in a decentralized market with

numerouscompetitors,pricingpowerwill restwith themarket rather than intermediaries.

Instead, market participants will get returns and reallocate the data value by providing

algorithmsandcomputationontheblockchain.



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2.4.2. ProtectingPrivacyReasonably

Originalpersonalinformationandnon-desensitizationdatashouldnotbestoredatthird-

party institutions fora longterm.Retainingpersonaldatawiththeuser is themostsecure

storagemethod.Suchstoragecanbelocal,orcanbeencryptedandstoredinthecloud,with

convenientretrievalvialocaladdressing.

Personaldatacanbetransmittedtotherecipientinanencrypted,point-to-pointmanner.

Only thedata recipientmayprocess thedata, and theoretically, afterprocessing, thedata

recipientcanchoosenottoretainthedata.Alternatively,datacanbeprovidedtothedata

demander in the form of zero-knowledge proof, which allows for verifying the data

authenticityandownershipwithoutrevealingtheoriginaltextoftheinformation,inorderto

fulfillthebusinessrequirement.

2.4.3. EliminatingDataMonopolies

Blockchain technologyallows individuals toownanduse theirdata, andeliminates the

valuepremiumcausedbythecentralizedstorageandverificationofdatafromthirdparties.

It also prevents data from being misused or leaked by third parties: traditionally, the

authenticityofdataheldby individuals is verifiableand individualshaveonlyownershipof

dataratherthantherighttousedata(whichcanonlybegainedviaauthorizationtoagencies

asameansofprovidingproof).

2.4.4. ImprovingDataValidationEfficiencyandReducingDataUseCost

Personal data can be automatically validated and used formultiple times according to

data categories, significantly reducing the cost of institutions who use the data. The

institutionsarefreefromrepeatedlyobtainingauthorizationfromuserseachtimetheyuse

oraccessthedata.

2.4.5. Creating“DataMarketplace”

Establishing a standardized data marketplace helps data certification bodies better

promote thedatastandards theyprocessed,construct thebrandsandhigh-valueniches in

termsofbigdataprocessing, andhelps fix theprice according todatause frequencyand

throughfeedbackingdatatodataplatforms.Financialinstitutionscanalsoseethenumberof



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availabledatamoduleswithinthedatamarketplacemoreconveniently,andthusdrivetheir

ownITsystemstoconnectmorevaluabledata.

2.4.6. AIRiskControl

Anti-fraud and modeling algorithms are provided on the blockchain through deep

learningandAI riskcontrol systems, inorder tohelp financial institutionsprocesspersonal

datawithoutstoringdata.Thismethodhelpsfinancialinstitutionsimprovetheirriskcontrol

capabilitiesinaccordancewithcompliancerequirements.

Blockchain discloses risk strategies by providing an encrypted algorithm, and allows

borrowerstoapplyforverificationbasedonthealgorithmspublishedbyalgorithmproviders

and credit institutions and proactively screen lenders through the risk strategy service.

Borrowerswhocannotaccessinstitutionalborrowingcanchoosenottoapplyforloansfrom

those institutions, thus preventing submissions of personal information by multiple

institutions.

This would lead to drastic increase in transaction efficiency and further drop in

transaction costs for credit institutions, eliminates the need to allocate computational

resourcesandpaymentcoststoborrowerswhocannotreceivelendingservices.

2.4.7. DisclosingLendingBehaviors

Duringtheborrowingprocess,bycreatingacredithistoryreportontheblockchain,data

approved by both parties is accessible to other institutions that need to obtain the data,

effectivelypreventingproblemssuchaslong-termborrowingandrepeatedtestborrowing.

2.4.8. PositiveDataFeedback

Beyondusebythelender,lendingdatacanbeusedtohelpmultipleinstitutionsprovide

comprehensive analysis of the lender’s behavior and lending results, and help non-

participants of single-time loans establish a more comprehensive personal credit rating

system.

Partialdatadisclosedalsoallowsmoreauditorsandregulatorstoevaluatesystemicrisks

moreeffectively.



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DistributedCredit Chain applies the above solutionswithBlockchain technology in real

businessscenarios,anddevelopanewsupercreditecosystemthatbenefitstheworld.



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3. HowDistributedCreditSolvestheCentralizedCreditProblem

3.1. UserAccountIdentificationSystem

InDCC,eachindividualorinstitutionhasoneDCCIDgeneratedthroughPublic-PrivateKey

Pair to form an address. This address acts just like amember ID in a traditional Internet

system, identifying and associating various real-world attributes (such as real-name

authentication,bankcardsheld,numberofpropertiesowned)andinformationonthecredit

chain—aloanrequest,loan,repayment,etc.

DCCID is a decentralized account system, and its generation does not depend on any

individualDCCnode.Anyperson,organization,orcompanycangeneratethisDCCIDoffline.

Onlywhenthereis informationneedingtobeassociatedtoDCCcaninformationbestored

ontheDCCecosystem.

DCCusesdigitalsignaturetechnologyateverystepofdataexchangetofullyguarantee

thenon-repudiationofindividual-chainorinstitution-chaininteractionofdata.



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DCCwill provide anopen sourcepersonal credit datamanagement framework-DCDMF

(Distributed Credit Data Management Framework) which is supported by a specific cloud

storageprovider,anddevelopers,areabletoquicklyrebuildusers'personalcreditreporting

data using DCDMF based on their APP development needs. Users having a DCCID can

exchangedatainseveralAPPswhichuseDCDMFbyexportingtheirwalletaddresses.

DCDMFusesAESsymmetricencryptiontoencryptdatawiththeprivatekeyofDCCIDand

itsinputpassword(salt),andformsadataindexwiththecloudserverthroughDCCID'swallet

address. Users are able to obtain the data index at any moment conveniently through

address of the DCCID, or quickly get the plain text data from the cloud using their own

passwords.

3.2. DistributedCreditMaintenanceSystem

TheDistributedCreditChainentirelyredefinestheexchangeprocessofpersonalcredit.

Individuals have ownership of the data throughDIV (Distributed Identity Verification), and



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candeterminethestorage,presentation,anduseofpersonaldata.Dataserviceinstitutions

makeprofitsbyprovidingindividualswithqualitydataservicesinsteadofstorageandabuse

ofdata.

The DIV system protects data from falsification and deception by means of digital

signaturesanddatadigestinthecirculationprocess.TheDIVmechanismhastheadvantage

that the data institution directly provides userswith data authentication services, and the

datawouldnotbeheldby thirdparties.Suchmechanismprovidesdatasharingsupport to

theinstitutionswhichwereoriginallyintendedtoprovidedataonlytotheirowncustomers.



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This all stems from decentralization, which transfers the center mastering data from

original data oligarchs to individuals, stores decentralized data in decentralized hands.

Distributed Credit Chain stores the nonrepudiable evidence proving the data’s generation

andaccuracy,asshownbelow:

Personal data will be sent to the data institution for processing. The standard data

processedbytheinstitutionwillbereturnedtotheindividualasadatareport.Theindividual

willsavethedatareportasapersonaldataassetlocallyorinthecloud,appliestothedata



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verificationsmartcontractofDCCsystemforverificationafterhashsummaryofthereport,

while initiating chain vertificationwith theoriginal verifying institution.After the verifying

institution confirms the hash as consistent after verifying the original report, the data is

labeledasauthenticatedandrecordedwithinalimitedperiodoftimeonthechain.

The risk of data leakage during the verification process is controlled to the minimum

extentbecause thedatabeingverified ispassedonly to individualsanddataagencies.The

digest algorithm used on the chain is irreversible, and therefore there is no risk of data

decodingonthechain.

Through DIV interaction architecture, a decentralized peer-to-peer verification system

can bewidely established among individuals, between individuals and data institutions, as

wellasamongdata institutions.Themoreverificationsanentityrecieves fromentitiesand

themoredataassetsitobtains,themorecomprehensivethecreditportraitofanindividual

will be. This provides more abundant and multi-dimensional data support for financial

institutionstoidentifycreditrisks.

Datareportsobtainedbyindividualscanbeusedagainasnewdataassetstoenrichtheir

owndataaccumulationandcanbeusedagainby thedata institution, inwhichcasemore

datavalidationisgenerated.TheDIVmechanismreducesthebarriersforbigdatacompanies

andAIdataprocessingcompaniestoengageinuserdataservices,andprovidesfundamental

supporttoenablemorescenariostouseusers’datarapidly.

When financial institutions use personal data assets, they only need individuals to

autonomously submit personal data reports required. The DIV framework ensures rapid

recognitionoftheauthenticityandeffectivenessofthereport.

This is a credit reporting system that breaks the boundaries of countries and limits of

scenarios. The individual with DCCID can provide the data as required by the lending

institutiontocompletethecreditreportingunderanyscenario.

Summary:TheDIVframeworkofDCCenablesthechangefromcentralizedmanagement

bycreditreportingagenciestodecentralizedindividualownership,whichwillfundamentally

alter theoriginal landscape inwhich thepersonal credit reporting system ismaintainedby



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centralizedcreditinformationsystemsineachcountryandregion.Themechanismintegrates

thecreditrecordsofdifferentcountries,regions,andindifferentlanguagesunderaDCCID,

and creates a platform that does not interfere with sensitive data interactions through

countless decentralized individuals and participating institutions, making it a truly

decentralized and independent credit reporting system. This system is able to serve any

individualor institution in theworldandprovideanybusinessscenario that requirescredit

data.

3.3. Blockchain-basedLendingBusiness

3.3.1. Dataentry

With the help of the open source framework SDV (Submitting Data Validation), the

lendinginstitutionscaneasilyinputtheuser'sdatatotheirexistingriskcontrolsystem.SDV

continuously updates the data parsing and verification template libraries according to the

data provider in DCCmarket, and after entry of the user’s data into the framework, SDV

generates entry data that can be used by the risk control system based on the digital

signatureand submitteddatadigestof theDCCID (thevaliddata thathasbeenverifiedas

beingsubmittedbytheownerandnotbeingaltered).

3.3.2. Lendingprocess

DCCsuggeststhatthelendinginstitutionsshouldusechaindatatomaintainthelending

process. Theuser's loanapplication canbe submitted to the chaindirectlyby theuser via

signature, and the lending institutionobtains theentrydata through the SDVandupdates

theapprovalresulttothecorrespondingorder.



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3.3.3. Creditreport

Through contracts on DCR (Distributed Credit Report), there will generate a list of

credithistory index in theDCCsystemthat records the individual’swhole lifecyclestatus

fromapplicationforloans,reviewofloans,repayment,overdueloans,collection,andbad

debt.Thelistofindexesalongsidetheplaintextdataoftheactualloancontractheldbythe

individual constitutes a user’s credit history report in DCC system, which is also the

embodimentofreturningdatatotheindividualbyDCCsystem.

ForeachrecordintheDCR,onlytheborrowerandlenderholdtheplaintextdata,and

DCRhasonlytheindexlist.Therefore,althoughtherecordindexissharedintheblockchain,



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suchrecordisoflittlevaluetothirdparties.Themechanismalsoensuresthatthesharingof

data between the lending institutions happens on the premise of protecting their own

privacy.

DCRmechanismisrelativelyinexpensive,andforcreditinstitutions,applyingablockchain

with“riskcontroldata”isoftremendousvalue,whichcanaddressjointdebtinthecurrent

creditecosystemmoreeffectivelyandatalowercost.

The data on DCC are retained in a tamper-proof format, providing data basis for

confirmation of claims and the rating of claims via algorithms and compution in the

subsequentassetsecuritizationprocess.

Forecosystemdata thatneeds tobe integratedand calculated,DCCwill build amulti-

partycomputation(MPC)platformwith leadinguniversitiesandcolleges inChina.Thusthe

datafrommultipleparticipantscanbeanalyzedwithoutcollection,andbesavedlocallyfor

collaborative computing;allparticipants can share thedataunder identical computingand

analysisscenarioswithoutworryingaboutdataabusebythirdparties,andtruecooperation

withdataprivacyprotectionwillbeachieved.

Decentralized transmission model of DCR will greatly reduce the profits of lending

information intermediaries, and truly allow profits to flow to parties needing credit and

fundingparties.Itwillalsomakeecosystemcompetitionsmoremarket-oriented,reducethe

threshold for participants to enter the market, improve the influence of risk control

capabilitiesonbusiness,andtrulyfacilitatetheinterestrateliberalization.

3.4. Non-CooperativeGameBetweenParticipants

DCCusestheblockchaintoexpandtheoriginalinterlinkedcreditecosystemrelationship

consistingofmany centralized systems into a flat credit ecosystem inwhich theblockchain

smartcontractsserveasthesharedmediumandallparticipantsarebetreatedequitably.



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The openness of the DCC ecosystem enables each participant to cooperate on an

independentandequalbasisFurthercooperationbetweenprevious lendersandborrowers

willnotdependontheoriginalrelationship,anddecisionsmadebyanyparticipantwithinthe

ecosystemwillbeentirelyindependentofotherones,thuscreatingatrulynon-cooperative

gamingenvironment.

Such independent bilateral cooperative model will greatly reduce the complexity of

system interconnection. It is easier for credit system technology service providers to

standardizethemodulesofcreditservicesandprovidethecreditstandardsystemthatcan

bedeployedrapidly.

Basedonopenness,DCCsetsnoaccessbarriersforparticipantsintheecosystem,andhas

reached cooperation intentions regarding various basic service fields with some

outstandingserviceprovidersintheworld.

3.5. AdvantagesoftheEcosystem

• Theuniqueandtamper-proofidentitysystemThecreditreportingsystemwithout

dataislandordatamonopoly

• Efficient,low-costcreditbusinesssystem

• Cross-entity,permanentdatastorageandsharedcreditor’srightsrecord



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• Assetsecuritizationwithexcellentassetliquidity

• Liberalizedinterestrateformationmechanism



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4. ProductScenarios

4.1. LoanRegistrationService

Loan registration service is intended for C2C loans among individuals and is generally

dividedintotwotypes:directionalloansandnon-directionalloans.

Directional loansbetweena lenderandborroweroccurwhen the twoparties reachan

agreementontheloanoffline,thenrespectivelydownloadtheloanreceiptsoftwareandadd

eachother'scertification,andfinallycompletethesigningofanelectronic loancontracton

Distributed Credit Chain, where payment partners complete the capital transfer

simultaneously. Users may choose to complete the deduction of principal and interest

throughDistributedCreditservices,ortotransferthemoneyseparatelyoffline.

In the case of nonn-directional loans, the borrowers initiate a loan application

(anonymouslyifpreferred)throughDAPPonDistributedCreditChain,whenthelenderisnot

desingated. The application will include the amount, duration, interest rates, repayment

methodsoftheloanandthetamper-proofpersonaldataintegratedandstoredonthechain

by data service providers for the borrower. With the credit rating information generated

through the algorithm and compution of algorithm service providers on the chain, the

borrower’s first-degree friends (friends can be automatically added through DAPP

authorizationorbothpartiesactivelyapprovethefriendrelationshiponthechain)canaccess

theborrower'sapplicationanddecidewhethertolend.Iftheyconfirmtolend,bothparties

signanelectronicloancontractandthecreditcontractonthechain,duringwhichfundsare

generally transferred through payment partners on the chain (third-party payment

institutions). If the borrower's personal credit is insufficient, he or she can realize credit

enhancementandobtaintheloanthroughsponsorshipprovidedbyothersonthechain.

4.1.1. ConsumptionLoans

Consumption loans, also called as Consumer Loans, refer to individual loans used for

furtherstudyatabroad,housingdecoration,purchasingdurablegoodsorcars,etc.



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C-end applicants will send their personal application information to B-end financial

institutionsthroughthechain,ortesttheirowndataagainstvariousscreeningalgorithmsof

financial institutions.Qualified applicantsmay signelectronic contractswith corresponding

financial institutions online, and borrow from them. The fundmust be exclusively used to

repaythedebtondesignatedcreditcards.

Because of the cross-regional nature of blockchain, a C-end applicant could be an

ordinaryAfricanlaborerinurgentneedofhomerenovation.Thishypotheticallaborerhasa

goodcredit record locally, but theannualized interest ratesofborrowing from localbanks

are up to 8% due to unbalanced credit development in his own country. Through DCC

decentralizedcreditdatasharing,aCanadianbankcanassesshisborrowingriskandusage

scenario.Throughthecreditenhancementoftheconsumptionscenario,thebankiswillingto

lend to him at an annualized interest rate of 4% through the blockchain network. Such

scenarioisinconceivableinthetraditionalbankingnetwork,butwilloccurfrequentlyinthe

blockchain'sdistributedarchitecture.

4.1.2. ConsumptionInstallment

Consumption installments usually refer to the commodity installment purchase

agreement entered into between a consumer and a merchant, where the consumer

promisestopayin installmentswithinagivenperiodasagreedafterthemerchantdelivers

theproduct.

InDistributedCreditChain,consumerscanuploadtheirpersonaldata to thechainand

generateacreditratingreport.Intheeventofapurchase,themerchantmaybeauthorized

tochecktheconsumer’spersonaldataandcreditreporttounderstandandevaluatehisor

hercreditstatus,anddecidewhethertoofferinstallmentcredit.

In some consumption business scenarios, traditional banks cannot provide installment

servicesforadequateconsumptionscenariosduetothelimitsoftheirownloanfunds,while

usingaDistributedCreditcontractset,themerchantcanorganizetheusertosetupvirtual

fundpools corresponding to consumption scenarios. These funds in the fundpool are still

stored by individual users through the DCCID account. When consumption occurs,

corresponding funds are quicklymatched based on the big data risk-controlmodel of the



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blockchainandtheriskappetiteofdifferentvirtualpools.Diversifiedinvestmentbymultiple

individuals can satisfy the funding needs of the consumer in the process, and reasonably

reducetheriskbornebyeveryone.

Forexample,numerous fooddelivery courierson the streetmayneed to replace their

vehicles’batteriesfor3to4timesaday.Iftheyweretopurchasethesebatteriesthemselves,

thecostwouldbeextremelyhigh. Ifbatteryswapstationsweretoprovidethesebatteries,

theywouldhaveneededgreat investment inbatteriesduringtheearlybusinessstagesand

would face high business risks. A distributed banking system could provide a customized

installment planwhich allows couriers to pool the funds needed for investing in targeted

battery procurement. It could even introduce tokenization. Business income arising out of

subsequentuseofthebattery,couldbesharedamongcourierswhomadethe investment.

Such self-sufficient financial system is inconceivable under a traditional financial system,

whileinDCCecosystem,thisplanwillbecarriedoutquitesmoothlyandnaturally.

4.1.3. BlockchainCreditCard

Based on the DCC contract set, various individuals and financial institutions can grant

credittospecificusersonDCC.Thecreditamountismaintainedonthechain.Throughzero-

knowledgeauthenticationandhomomorphicencryption,manycreditproviderscan,without

disclosing the credit amount information to each other, determine whether specific

consumptionallowsforoverdraft.Theoverdraftconsumptionrecordswillalsobestoredon

thechainastheuser'screditinformationandusedbytheecosystem.

DCC-basedcreditcardscanalsoeasilyintegratetheamountlimitgivenbyvariouscredit

providers for portfolio consumption. Becauseof the combined credit cardoverdraft plans,

the institutions that provide credit card reimbursement services can also offer services to

customersata lowercost through thedistributedcredit reporting systemprovidedby the

DCCsystem.Thiscostreductionisnotonlyreflectedintheacquisitionnumberofcustomers

and the single-time acquisition costs, but also in the reduction of the default rate and

overdue duration.With blockchain technologies, DCC is expected to grow into the largest

globalcreditcardorganizationthatdoesnotissuecreditcards.



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4.1.4. DigitalAssetLending

At present, in digital asset lending, the lack of effective personal credit information

association between the world of data assets and the traditional world, results in no

accumulationofhistoricalcredit.Andtherealso lackseffectivemeans toavoid riskbefore,

during and after loan processing. DCC distributed credit reporting system can help the

blockchain-basedcredit lendingplatformopenupcredit reporting links, conductpre-credit

riskcontrol,manageperformanceduring loan,andfostertheexpansionofthedigitalasset

lendingmarket.

Imaginethatpeoplewithdifferentdigitalassetscouldpledgetheirdigitalassetsthrough

theloanchainandobtainmainstreamdigitalassets(ETH,BTC,etc.)fromdifferentindividuals

forreinvestmentthroughcreditreportingdataandcreditrecords.Such loanmarketwould

create more liquidity for digital asset transaction markets and provide more financial

derivatives.

4.2. FacilitatingAssetSecuritization

4.2.1. MortgageClaimsRegistration

In the process of asset securitization, since the fund provider is not the owner of the

asset, it will have a natural distrust in the authenticity of assets’ historical performance,

whichresultsinitsexcessivecostsinhiringexternalagenciesforverification.Inmanycases,

thehistoricaldataofanassetisnottrustedevenafterduediligencebyexternalagencies.If

the project initiator has only existed for a short duration or is not rated sufficiently, then

issuanceisdifficulttomakesuccessfully.

ThroughtheDCCcontractset,theownershipoftheunderlyingassets(realestate,cars,

sales contracts, bank notes, etc.) can be explicitly registered on the chain by law firms,

certificationbodies,notaryoffices,andthelike.Whentheseassetsarere-used,thelifecycle

of the entire asset can be checked on the chain in a cheap and efficient manner, which

effectivelyavoidsrepeatedmortgagefinancing.



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Intheassetsecuritizationbusiness,theoriginalequityowner,astheinitiator, isonlyan

investorinaninferiorproductaftertransferringownershipoftheassetstoSPV.Inprinciple,

the follow-up services for such assets should be completed by a third party—including

recoveryofrepayment,collectionofoverdueassets,anddisposalofnon-performingassets.

In a centralizedworld, these tasks are often still borne by the original equity owner,who

might establish a team to finish such tasks or subcontract these tasks. Since the original

equity owner is usually theholder of inferior products, thewhole data closed-loop is not

opentoanyone,thuscreatingmoralhazardrisks.

Maintaining the distribution of the entire ABS through DCC effectively eradicates such

problems, creates real-time shared data between the original equity owner and SPV, and

makestheassetdisposalprocesstotallytransparent.

4.2.2. ABSAssetDistribution

As the loan contracts formed through DCC ecosystem have decentralized, non-

repudiatable and tamper-proof features and the decentralized credit reporting system is

established,theassetsareendowedwithhighdivisibilityandliquidity.Assetsecuritization

nolongerstrictlyrequiresthetransferofassetsbyasingleequityholder.Instead,anew-type

technologyinvestmentinstitutionthatemergeswillpackageandselllendingassetsstoredin

DCCthroughidentification,screening,combinationandstructuring.

ABSproductspackagedthroughDCCassetshavegoodpenetrability,thedisposalresultsof

repayment recovery, overdue asset collection and non-performing assets are clear, and

the cost of authentication is little. All these will bring new products to the asset

securitizationmarket,whichwill providedistributed assetmanagement abilities through

DistributedAssetManage services on DCC, greatly improving the technical content and

liquidityoftheentireassetmanagementecosystem.



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5. EconomicEcosystemModel

5.1. DCC-ValuationCredentialsofEcosystem

DCCisthecredentialusedtopayforjobsintheDistributedCreditChain.Anyworkinthe

DCCneedstobepaidforwithDCC.DCCbalanceismanagedthroughDCCtokencontractto

maintainafixedtotalamountofDCC.AsthefinancialservicesystemintheDCCgrows,more

andmore distributed business scenarios are embedded and usedmore frequently, which

greatlyincreasestheliquidity.

DCC'spayment ishandledbasedon theDCCpaymentcontract,which is responsible for

theDCCpaymentrulesformulti-payerparticipation.

5.2. BenefitsofEcosystemContribution

As an important indicator of the value of contribution to the ecosystem,when aDCC-

basedfinancialsystemcomesacrossacrisis,theamountofDCC(asthecontributionvalue)

held can be used as credentials for preferential enjoyment of financial liquidity support

among ecosystem participants. Such liquidity support will help DCC-based financial

institutions combat liquidity risk and create a contribution-based financial eco-protection

mechanism.



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5.3. UseofDCCinDistributedCreditChain

5.3.1. ReconstructingCreditCostwithDCC

InDCCsystem,theindividualsthatrequiredataorreportsfromdatainstitutionsneedto

payDCCs.Suchmodewilltransformtheorginalwaythatdatainstitutionsgeneraterevenue,

that’s, frommaking profit through collecting and reselling user data to through providing

betterservicestocustomers.

Credit institutions also need to pay DCCs to the certification body when verifying the

validityof thedata.However, thechanges in therevenue structureof thedata institution

willgreatlyreduceverificationcosts,whichwillfurtherreduceoverallcostoftheborrower.

DCC’slabormarketismaintainedbasedontheDCCmarketcontract,whichisresponsible

forregistering,altering,anddeletingDCC-pricedremunerationfromserviceprovidersinthe

Distributed Credit Chain. It recommends the most appropriate partner to individuals or

institutions through AI analysis in the chain, effectively maintaining market equity and

transparency.DCCpricing for servicesalsoavoidsdetrimental impacton theproductionof

borrowers caused by DCC price fluctuations in the secondary market. In the process of



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conducting business, various participants do not need to pay attention to the price

performanceofDCC inthesecondarymarket; instead,theycandecidewhethertousethe

servicethroughsimplyjudgingthecorrespondinglegaltendervalueofotheservice.

5.3.2. UsingDCCtoRedistributeEcosystemBenefits

IntheDCCsystem,individualsapplyingforcreditshallpayDCCsforapplicationcontract.

Someportion(forexample,50%)isallocatedtodatainstitutionaccordingtotheuseweight

ofdataverificationservicebycreditinstitutionsasverificationfees;acertainproportion(say,

2.5%)willenterthecreditrewardpoolforthatdayascredit incentiveloss;anothercertain

portion(forexample,7.5%)isrecycledandusedforcontinuedreleaseofDCC;theremaining

portion (for example, 40%) is distributed as a credit result reward. If the loan is granted

successfullyafterverificationandtheborrowerproactivelyconfirmstheloancontract,then

therewardisreturnedtotheborrower.Iftheloancontractisnotconfirmedwithin1dayor

theloanapplicationisrejected,thentherewardisassignedtolendinginstitutions.

DCCamountpaidforloanapplictaionisdecidedbytheborroweratowndiscretion,and

credit institutions can set the minimum threshold of DCC and handle the priority of

borrowers’applications.Inprinciple,thecreditinstitutionwillgiveprioritytoborrowerswho

paymoreDCCs.

Through establishment of such decentralized trading models, the entire ecosystem

distribution pattern of interests can be dynamically adjusted so that the credit processing

resourcescanbetiltedtowards individualswithmoreDCCs(thosewhocontributemoreto

theecosystem),thusmaintainingthesustainedvitalityoftheecosystem.

5.3.3. UsingDCCtoIncentivizeCreditAccumulation

IntheDCCsystem,aportion(forexample,2.5%)oftheloanintheapplicationprocessis

converted into thecreditpoolof thedayand forms the total rewardpoolwithecosystem

fixed incentives. According to DCCreward Agreement, on Day T+1, the money in credit

rewardpoolwillbedistributedevenlytoincentiviseborrowerswhorepayloansbeforeDayT.

IntheDCCecosystem,differenttypesofrewardpoolswillbeformedindifferentbusinesses



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in the future, and ecosystem participantsmay receive incentives for different poolswhen

usingandcontributingtodifferentecosystems.

The daily fixed incentive is dynamically adjusted by the foundation according to

ecosystem development needs, and daily fixed accumulation will not exceed the total

amountofDCC.WhenthereisnoDCCthatcanbeexcavated,theincentiveswillbenolonger

given.

DCCincentivesensurethatgoodcreditbehaviorcanobtainmoreconvenienceinlending,

whichencourageseveryonetoestablishtheirowngoodcredit.

5.3.4. Cross-borderCreditCredentials

Because the DCC system provides a cross-border, cross-scenario, and cross-currency

creditserviceofdigitalassets,DCCcancorrespondtovaluesofdifferentlegaltenderofloans

in various countries, which greatly facilitates themultinational business of lending service

agencies.

Being more frequently used, DCC is expected to become the anchor currency of the

multinational lending service ecosystem on Distributed Credit Chain, and open the value

exchange of ecosystem service providers in various countries. Through DCC, users in one

countryorscenariowillbeabletopurchasedatareportsprovidedbythedataprovidersof

anothercountryorscenario,orapplyforloansfromvariouslendinginstitutionsindifferent

countries.DCCtransactionsindifferentexchangescorrespondingtodifferentcurrenciescan

providecross-bordersettlementservices.



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6. TechnologyRealization

6.1. SystemStructure

6.2. Dapp

DCC isadecentralizedopencreditplatform.Anyplatformwithtrafficandscenarios

cansubmititsownDappapplicationstoDCC,providedthatthesesubmissionsarebased

on Distributed Credit Chain standards. In the early stages, to ensure the health and

stabilityof theecosystem,theFoundationwouldreviewDappreleaseapplications.The

Cyber Sheng Foundation encourages different scenario platforms to enter the DCC

ecosystem to provide consumption scenarios of Internet finance through Distributed

CreditChainecoystem.

DCC’s R & D teamwill cooperate with the App R & D team to provide Dappwith

customizeddevelopmentservicesintheearlystages,inordertohelplendinginstitutions

packageandreleasethelendingclientbasedontheunderlyingtechnologyofDistributed

Credit Chain. Such lending institutions can use this client application to develop

customers and complete customer registration, maintenance, data acquisition, risk

control,andmanagementduringandaftertheloan.



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CustomeraddressescreatedthroughacustomAppcanbeexportedandimportedby

customersintoeitheruniversalDappprovidedbyDCCor intoDappdevelopedbyother

developers.TheseuniversalDappscanuseallservicestructuresofDCCmarkettoprovide

lending services to customers, thus providing customers with better lending rates

throughmakinguseofpricecompetitionbetweenlendinginstitutionsanddataservices

providingcustomerswithbetterlendingrates.

6.3. Account(Wallet)System

DCCIDusesthewalletgenerationmechanismidenticaltoEthereum.TheWalletconsists

oftheprivatekey,publickey,andaddress.

DCCwalletusesthe“ellipticcurvealgorithm”togeneratepublic-privatekeys.Theelliptic

curvealgorithmisanasymmetricencryptionalgorithmandhashighersecurity,fasterspeed,

andoccupieslessspacethancommonRSAalgorithms.

Eachwalletaccountcontainsakeypair, i.e.,aprivatekeyandapublickey.Theprivate

key (k) isarandomly-chosennumber,afterwhichtheunidirectionalcryptographic function

ismultipliedusingtheellipticcurvealgorithmtogeneratepublickey(K).Thenthepublickey

(K)generatestheaccountaddress(A)usingunidirectionalcryptographichashfunction.



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DCCwalletusesPrivateKeyandKeystore&Passwordtosavetheprivatekey.Theprivate

keycanbesavedinDapp,andcanalsoexportedtobestoredelsewhereafterbackup.



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DuringtheiterationoftheDCCwalletversion,thecollaborativedistributedkeyrecovery

servicewillbelaunchedwiththeMPCplatform,underthepreconditionofsafetyverification.

Privatekeyclientsare separately stored inmultiple independentorganizations that cannot

independently recover the password. When the key needs to be recovered, multiple

institutionswillcoordinateinkeyrecoverytohelpusersstoretheirkeysmoresafely.

6.4. GatewayService

Gateway Service is a centralized system,which primarily serves ecosystemparticipants

that donot have the ability to directly accessDCC throughRPC. Theymay accessDCC via

openAPI through thegatewayprovidedbyDCC,whichgreatly reducesbusiness interfacing

time.



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The DCC system also provides SDK and other accessmethods, based on the Gateway

Service, so as to facilitate ecosystemexpansion andprovide easyways to enjoy the credit

servicesonDCC.

6.5. OpenPlatform

TheOpenPlatformonDistributedCreditChainisacentralizedsystemwhichservesasa

dataproviderandmarket.Thetranscationmarketservesdatacollaborators,AI riskcontrol

algorithm providers, credit structuring institutions, and other institution partners. Through

this platform, institutional partners can check, screen, contact and reach cooperationwith

otherpartnersbasedontheirneedsthroughDCC,whileusingtheservicesonDCC.

TheOpenPlatforminterfaceswithDCCmarketcontracts.Allcooperatinginstitutionscan

publishtheirlaborcoststhroughthisplatform.Afteranalysisandprocessing,thesedatawill

besenttousersandinstitutionsastheirpricebasisforchoosingtheservicestheyneed.The

real-timequoteswillsmoothentheexchangeof informationacrossthe institutionalservice

market.

TheOpenPlatformwillprovideablockchainbrowsertoviewallnodeoperations,block

loanrequest,transactionflowandotherblockchainbasicinformationonDCC.

6.6. Opensourceframework

Frameworks such as DCDMF, DIV, and SDVwill be open sourced at github given with

open source on github. Partners are welcomed to modify these frameworks for more

customizedservices.

DIVframeworkflowdiagram

Object:



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Domainmodeldesign:



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SDVFramework:



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Domainmodeldesign:

Visithttps://github.com/DistributedBanking/DCCformoreopensourceinformation.

6.6. BlockchainandSmartContract

6.6.1. ConsortiumChainGovernanceArchitecture

DCC is a blockchain system that will be opened gradually. As the ecosystem slowly

becomesstable,DCCwillevolve fromaconsortiumchain toapublicchain. (After theDCC



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mainchainisonline,alltokenswillbeconvertedintothewalletsofDCCmainchainina1:1

translationfromtheEthereumERC20contract.)

Inthefirststageoftheecosystem,DCCwillexistasaconsortiumchain.Billingnodesthat

accessthechainwillbeallocatedas“billingnodes”or“non-billingnodes.”Abillinginstitution

mayapplyforoneormorenodesandcanalsoapplyforeithertypeofnodes.

Theapplicationinstitutioncanqualifyasabillingnodebypledgingcertainpercentageof

DCCandapplytotheCyberShengFoundation.AftertheCyberShengFoundationreviewsthe

availability and stability of the node, and institutional qualifications, the application

institutionwillbecomeanbillingnode.Inthiscase,DCCpledgedforthebillingnodewillnot

increase,andtheecosystemwillnotprovidethebillingnodewithbillingincentivesbecause

billing is considereda formofpublic serviceprovided to theecosystem.DCCwill notbea

consensus token in theconsortiumchainandwillnotbeconsumedduring the transaction

consensusprocess.Allbillingintheconsortiumchainstagewillbeapublicservice.

DCC will work with software vendors that provide credible computing to authenticate

computenodesbydeployingpersistent immunity plug-ins in billingnodes. The billingwill

only be allowed after the billing node has satisfied credible authentication. If the credible

authentication node is found to have any abnormal operation, its billing rights will be

canceled.Afterthesystemisdeployedandlaunchedonline,theCyberShengFoundationwill

cancelthestrategyofobtainingbillingrightsthroughpledgingDCCs,andgraduallyopenthe

entryofpublicbillingnode

Any applicant institution can apply tobecomeanon-billingnode, and therewill beno

limit to the amount of such nodes. The Cyber Sheng Foundation promises to complete the

access approval for non- billing nodeswithin oneweek at themaximum, gradually open

codesofnon-billingnodesandprovideself-servicedeploymentguidanceprocedures.

In the second stage of the ecosystem, DCC will customize the most appropriate

consensusalgorithmbasedoncommonfeaturesofthedistributedbankbusinessandevolve

from the consortium chain governance architecture to the public chain architecture. Any

individual may apply to join in the billing node for billing. At present, existing consensus

algorithmsintheworldlackthecapabilitytosupportthecreditchain.Therefore,theCyber



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Sheng Foundationwill release updated plans in time based on developments in algorithm

technology.

Inthepublicchainstage,DCCwillreconstructtheaccountsystem,useSchnorrSignature

(whichissaferthanECSDA)togenerate,expandonthedefaultdatastructureoftheaccount,

and maintain thebasicdatastructureonthechainbymeansofzeroknowledgeproof, so

thattheuserscandirectlyaccessitandtheimplementationofsubsequentfinancialbusiness

willbefacilitated.

Intermsofdatapreservation,contractdeploymentandconsensusnodeopenness,with

referencetotheexperienceofDistributedLedger,DFINITY,Zilliqa,Stellarandotherprojects,

DCCalsoconductsbusinessthroughdifferentbusinesschannelsbasedontheneedsofthe

differentbusinessesofdistributedbanks

DCC settlement serviceswill be anchored to blockchain’s underlying logic and inserted

intothebusinessecosystemsofeachchannel inasmoothermanner,soastomoreclosely

linkthefinancialservicesandconsensustogether.

Intheprocessoftransformationandreconstruction,theexpertshiredbytheDCCteam

and the Foundation will provide technical services for constructing the main chain and

opening the billing, resetting the incentive mechanism of the public chain billing, and

migrating the original consortium chain data to the public chain, so as to ensure smooth

remotecontroloftheproject.

6.6.2. ConsensusAlgorithm

The consensus mechanism is an important mechanism used by DCC to maintain the

correctness, consistency and continuity of data.Given current ecosystemneeds,DCCuses

thePBFTalgorithmasitsconsensusalgorithm.

ThepropertiesofPBFTalgorithminclude:

• Consensusnodesgenerateblockinturnandhavethesamebillingright,

reflecting peer equivalence and preventing any individual accountant

fromdoingevil.



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• Blockgenerationcanhappenwithinseconds,whichcansatisfytheneeds

oftransactionswithinashortperiod.

• Supports1/3node fault tolerance: the failureordoingevil of less than

1/3ofthetotalnumberofnodeswillnotaffecttheconsensus;

• In the block synchronization process, signatures are strictly verified to

ensuredatasecurity.

PBFT consensus algorithm, with its high consistency, high availability, and strong anti-

fraudability,iswidelyusedinotherconsortiumchainprojects.Itismatureandfairlystable.

6.6.3. SmartContract

AsmartcontractisachaincodedeployedonDCC,astringofcodesthatcontainbusiness

logic.

InthefirststageofDCC'secosystem,anEVMcontainercompatiblewithEthereumwillbe

deployedasacontainerforimplementingsmartcontracts,andDistributedCreditChainwill

supportdevelopmentusingSoliditylanguage.

SinceDCC adopts a consortium chain architecture in its first stage, participants donot

needtopayforcoststoreachconsensusinblockgeneration.Therefore,themartcontracts

of partners must be submitted to the Foundation for review on the open platform and

verifiedinthetestenvironmentbeforetheyaredeployedonthechain.

Smartcontractcodeisshownasfollows:



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Flowchartofsmartcontract：



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6.6.4Publicchainstructure

6.6.4.1Systemstructure

6.6.4.2Networklayer



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WeuseSWIMasthenetworklayerprotocol.SWIMisanacronymforScalable,Weakly-

Consistent,Infection-Style,andProcessesGroupMembershipProtocol.Itsfeaturesareas

follows:

1.Scalable.Itcanbeusedtobuildtensofthousandsoflarge-scaleP2Pnetworks.

2.Weakly-consistent.Itdoesnotemphasizestrongconsistencyforthememberrelation

viewofthenodes.Theultimateconsistencyisachievedbymeansofinformationexchange.

Compromisingconsistencyimprovesavailabilityoftheentirenetworkandensuresthe

feasibilityoflarge-scalenetworking.

3.Infection-style.Disseminateinformationfastthroughthegossip-stylemessage

exchangeprotocol.

4.Separatefaultdetectionfromupdatingofmemberrelationshipdissemination,avoid

flawthattraditionalGossipheartbeatdetectionisnotavailabletolarge-scalenetworks

throughspecificdefaultdetectionalgorithms.

OnthebasisofmaintainingthemembershiprelationshipbySWIMagreement,we

provideHTTPJsonRPCtoprovideexchangeprotocoldatafornodes.

6.6.4.3Corelayer

• Bookstorage

Weprovideaplug-inbookstorageinterfacetoadapttodifferentbookstorage

implementations,andprovideabookstorageimplementationwhichisbasedonan

embeddedK-Vdatabase,anembeddedrelationaldatabaseandseparateSql/NoSql

databases.

• Worldstatuscache

Thetransactionontheblockchainessentiallyreferstotheprocessofobtainingthenext

newblockchainstatusthroughcalculationofthecurrentblockchainstatus.Thebookstorage

retainscompleteandimmutablechangesinallstatuses,andisthereforeundeniable.

Toincreasetheefficiencytoobtainthecurrentworldstatus,wesaveasnapshotof

currentstatusinthecacheforquickreading.Atthesametime,thecachecanbe

reconstructedbasedonthebookstorage,sotheworldstatuscachedoesnotaffectthe

availabilityoftheentirenetwork.



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• Functionalsmartcontractengineandvirtualmachine

Differentfromothersmartcontractengines,webelievethatthesmartcontractoffinance

isapurefunctionF.AssumingthecurrentworldstatusisS,thereare:S’=F(S)andS’isthe

statusafterthecontracthasbeenexecuted.

Viewingsmartcontractsfromapurefunctionperspectivehavethefollowingbenefits:

1. Easytotest.Becauseitisapurefunction,therearenosideeffects.Thecontractcan

betestedwithoutrelyingontheblockchainenvironment.

2. Contractsarealgorithms,andcontractualregressionrulesareonlyusedtodescribe

businessruleswithoutcausingsideeffectsontheblockchain,thusimprovingthe

stabilityoftheblockchain.

3. Easycostmeasure.Becauseitonlydescribesthebusinessrules,thecomplexityof

themeasurementofsmartcontractcostsisgreatlyreduced,withouthavingto

considerthecostofsideeffectssuchasstorage,IOandsoon.

4. Reliableplayback.Sinceitisapurefunction,implementationofthesameS'is

repeatedandtheresultisthesameS,i.e.itsupportsidempotence.

WewilluseJAVAasdevelopmentlanguagesofcoresmartcontracts.Atpresent,JAVAisa

relativelycommondevelopmentlanguageforfinancialback-endsystems.WeusetheJVMas

acontainerforrunningsmartcontracts.

• Account

Built-inaccountsystem,includingsupportformultiplenativetokens.

Encryptionanddecryption

TheDCCpublicchainusesECDSAfordigitalsignaturesandverificationandusesECDH

exchangekeyforencryptedcommunication.

• Consensusalgorithm

TheDCCpublicchainisanopenchainavailabletothepublic.AnyonecanjointheDCC

publicchainasthebillingnode.WeproposeaREBFTalgorithmtorandomlygenerateN

communicationnodestoparticipateintheconsensusfromthewholenetworknodes.The

othernodessynchronizefortheFollownode.Aftercompletingaroundofconsensus,the

nextroundofLeadernodesisre-selected.



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6.6.4.4Interactivelayer

• OpenAPI

TheDCCpublicchainwillprovidealargenumberofopensourceAPIinterfacesforthe

participants,andSDK,sothatsomemobileAPPsandWEBcanbeengagedinchaininteractive

development.

• Cross-chainadaptation

Throughthedevelopmentofacross-chainadaptationmechanism,DCC'spublicchainis

compatiblewiththecurrentmainstreammainchains,suchasbitcoinandethereum,tocarry

outcross-chainassetexchangeandfinancialservicessupportingdigitalassets.

DCC'spublic-linkedR&Dwillalsobeopensourcedatgithub.Developersarewelcomedto

participateintheresearchanddevelopmentofDCC'spublicchain.CyberShengFoundation

willprovidedeveloperswithDCCrewards.



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7. DistributionPlan

The Cyber Sheng Foundation plans to issue a total of 10,000,000,000 tokens of the

encrypteddigitalcurrencyDCC.

Intheprivateround,famousqualifiedinvestorsinthefieldsofcreditandbankingwillbe

invited for the investment, with the fundraising percentage no more than 18%, and the

investmentamountofsingleinvestornolessthan100ETH.Atthisstage,DCCswillbelocked,

with25%ofthetotaltobeunlockedbeforetheopeningofexchange,andanother25%tobe

unlockedeverytwomonths,withthefullamounttobeunlockedin6months.

InICOround,200,000,000DCCswillbeissuedtoNon-ChineseandAmericaninvestors.All

thesewillbedirectlycirculated.DCCtokenwillbeexchangedbyETH.

ThecontributionsinthetokensalewillbeheldbytheDistributor(oritsaffiliate)afterthe

tokensale,andcontributorswillhavenoeconomicorlegalrightoverorbeneficialinterestin

thesecontributionsortheassetsofthatentityafterthetokensale.Totheextentasecondary

market or exchange for trading DCC does develop, it would be run and operated wholly

independently of the Foundation, the Distributor, the sale of DCC and Distributed Credit

Chain.NeithertheFoundationnortheDistributorwillcreatesuchsecondarymarketsnorwill

eitherentityactasanunlockedin6months.

OtherallocationdetailsofDCCsareasfollows:



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Item Amount Allocation Explanations

PrivateRound 1,800,000,000 18%

l Usedforfollow-upprojectdevelopment,

recruitmentandmarketingetc.

l Tokensarelockedbyprivatekeysforatotal

periodof6months,with25%ofthetotalto

beunlocked3workingdayspriortoany

exchangelisting,andanother25%tobe

unlockedeverytwomonthsthereafter,with

thefullamounttobeunlockedin6months.

ICO 200,000,000 2%

l Qualifiedindividualinvertorsaccepted(ExceptAmericanChinese)

l Nolock-up

Foundation 2,800,000,000 28%

l ServiceforfurtherDCCresearch,eg.Projectdevelopment,businesscooperation,etc.

l Lock-upfor1year,secondyearlock-up

willbeannouncedbythefoundation

Market&CooperationAgency&Consultants

1,500,000,000 15%

l UsingasbonusrewardforearlyprojectpartnerslikepromoteandpublicizeDCC,startupsystemteamandconsultants

l Lock-upfor3years,consistentlyrelease

yearbyyear



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EcoReward 1,800,000,000 17%

l 100,000,000DCCtokensforthefirstyearreward

l 90,000,000to50,000,000DCCtokenswillberewardforeachnextyearinnext5years

l After6yearsrewarding,theannulrewardwouldbefixedat50,000,000level

l 17years+consistentlyrewarding

ManagementTeam

2,000,000,000 20%

l Usedtoincentiviseandmotivatethefoundingteamfortheirhugeeffortsinprogramdesign,resourceorganization,commercialenvironmentincubation,andtoencouragefollow-upinvestmentofmanpowerandintellectualresourcesinecosystemformation.

l Tokensarelockedbyprivatekeysforatotalperiodof3years,with25%ofthetotaltobeunlocked6monthsafteranyexchangelisting,25%tobeunlockedoneyearafteranyexchangelisting,andanother25%tobeunlockedeveryyearthereafter,withthefullamounttobeunlockedin3years

Total 10,000,000,000 100%

8. UsePlanforRaisedFunds

Item Proportion Explanation

LaborCosts 30% TheprojecttodevelopDistributedCreditChainrequiresa

largenumberofeliteresearchersanddeveloperswhocan

integratethemobileinternet,distributednetworks,

blockchain,financialpayment,financialriskcontroland

marketingpromotion..Theestablishementofsuch

ecoystemrequiresadequatefundingforhumancapital.



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Marketing 25% DCCiscommittedtobuildingadecentralizedfinancial

systeminthefuture,duringwhichcommercialpromotion

anddisseminationwillincursignificantcost.

Business

Cooperation

10% Inthefuture,morecooperationinecosystemswill

graduallysupportvariousdistributedbusinessscenarios.

Consultancy 5% Withfurtherdevelopmentofblockchaintechnology,we

needtoengageenoughtechnicalconsultantstoprovide

technicalsupport.

Ecosystem-

Operations

5% Maintaininglowecosystemoperationcosts.

ReserveFund 25% Ariskreservefundforoveralloperating,torespondto

operationalriskandforcemajeurefactors.



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9. DevelopmentTimeline

August2017 EstablishProjecttodevelopDistributedCreditChain

September2017 ConstructunifiedidentitysystembasedontheEthereumtest

network

October2017 BuildunderlyingDistributedCreditChaintestnet

December2017 Deployonlinecreditdeclarationcontractsbasedonunderlying

testnet

February2018 Tokenexchange

March2018 LaunchthefirstloanproductDappbasedonDistributedCredit

Chain

April2018 LaunchDistributedCreditChainopenplatformonline

May2018 Interface with more than five institutions of loan, data

providingandriskcontrol

Q3-4of2018 Openself-creationAPIofDistributedCreditChain

Q3-4of2018 EstablishunifedMPCofDCC

Q4of2018 EnterIndonesialendingmarket

Q1-2of2019 Enter lending markets of Vietnam & other countries in

SoutheastAsia

2020 Migratetheplatformtopublicblockchainsystem



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2020 Develop Distributed Asset Manage system based on publc

chain

DevelopDistributedSettlementsystem



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10. CyberShengFoundationLtd.

Cyber Sheng Foundation Ltd. is a non-profit organization established in Singapore. The

Foundation iscommittedtomaintainingthehealthygrowthof theentireecosystem in the

first phase of building of Distributed Credit Chain. As the ecosystem evolves to a public

blockchainsystem,theFoundationwillgraduallywithdrawfromecosystemprotection,and

handovermaintenancerightstothepublicblockchaingovernancestructure.TheFoundation

doesnotreceiveanyeco-benefits frommaintenanceanddoesnotderiveanybenefit from

DCC.

TheCyberShengFoundation is composedof theDCCstartup team,corepartners, and

earlysupporters(ifsuchpartiesareinstitutions,themembersofsaidinstitutions)responsible

for the daily operations of Distributed Credit Chain of the Foundation is the Board of

Directors. Each year, the top 30 holders of DCC may apply to be on the Community

SupervisoryBoardoftheFoundation,andmayjointheCommunitySupervisoryBoardifmore

than 50% of the original Community Supervisory Board members approve of their

applications.CommunitySupervisoryBoardmemberswhodropoutofthetop30holdersof

DCC must withdraw from the Community Supervisory Board. The role of the Community

SupervisoryBoardistoprovidebalancedviewsontheoveralldirectionoftheproject.Forthe

avoidance of doubt, while the views of the Community Supervisory Board would be

acknowledged, ultimately the assets and funds of the Foundation remain under the sole

controloftheBoardofDirectors.

DCCheldbytheFoundationduringtheinitialstagesofdevelopmentofDistributedCredit

Chain may be used for purposes beneficial to the ecosystem such as technical team

incentives, eco-rewards and expanding the service institution relationship. Such purposes

requireauditreportsissuedbyauditauthority.



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11. CoreTeam

StewieZhu

• SerialentrepreneurintheinternetandFintechindustry

• LedaleadingSaaSfinancialtechnologycompanyinChinatodevelopinternet-based

credit systems for over a dozenof trustswithmultibillionUSDannual loan facilitation

amount,whichwassuccessfullysoldtoapublicly-listedcompanyinthreeyears.

• BachelorinEE,NanjingUniversity;MAinstatistics,

• YaleUniversityM.sStatistics,

• OxfordUniversityM.sinFinancialEconomics

• Ph.D.(Candidate)inFinance,LondonSchoolOfEconomics

• Researchfocusingonfinanceandgametheory.

DanielLu

• PhD in Mathematics, Yale University, USA; Postdoctoral Research in Financial

Engineering,focusingontheRepresentationTheory,UniversityofLeipzig,Germany

• Head of investment banking and assetmanagement, generalmanager of financial

departmentofalargecommercialbank

• Years of experience in financial institutions at home and abroad, working

successivelyatDeutscheBankheadquartersandFinanceDepartmentatajoint-stock

bankheadquarters.

• Possessessolidprofessionalknowledgeandresearchabilities,andhasbeen invited

to give keynote speeches at academic conferences and financial conferences in

China and abroad. Specializes in capital & capital market business, asset

management,bankassetsandliabilitiesmanagement,internalfundtransferpricing,



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productpricing,marketriskmanagementandmodeling,financialderivativespricing,

andtheBaselNewCapitalAccordininvestmentbank/commercialbank

StoneShi

• J.P.Morgan, Vice President, Quantitative Research, Focused on Derivative Pricing,

QuantitativeModelRisk

• HSBC,Internship,Rates,Education

• TELECOM,Ingenieur,MajoredinComputerScienceandAppliedMaths

• NanjingUniversity,MajoredinElectronicScienceandEngineering



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12. Advisors

ChenYu

• Netnameis“JiangnanYoungCynic(JiangnanFenQing)”

• Partner of JX Capital; famous angel investor; Invests in nearly 200 internet

companies

• AuthorofPaymentRevolution& Windof Jiangnan: Internet Finance bestsellers in

financialfieldinChina

• VotedTop50FiguresofInternetFinanceinChinaforfiveyearsinarow

• SelectedinthelistofManoftheYearbyHurunReportin2016and2017

GuoYuhang

• ChairmanofXingheCapital,founderandco-chairmanofDianrong

• Previously,managingpartnerofafamousShanghailawfirmwithmorethan10years

of practice. Founded Dianrong in 2012, andmade it a unicorn company within 3

years

• FoundedXingheCapitalin2016,focusingonearlyinvestmentinfinancialtechnology

• Awarded "2015 Shanghai Financial Industry Leader" and "2015 Shanghai Top Ten

InternetEntrepreneurs"byXinhuaNewsAgencyandShanghaiauthoritativefinancial

regulationinstitutions

• StarwinDigitalPte.Ltd.,aleadingSingaporeinstitution,hasbeeninvolvedinvarious

blockchainprojectinvestmentssince2017,includingprojectssuchasLoopring,Gifto,

Scry,andMeasurableDataToken

YaoMing

• ManagingdirectorandCTOofChinaChengxinCredit(CCXCredit)



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• SpenthisearlyyearsatBellLabs, thenworked inthemobile Internetandfinancial

industries with extensive experience in big data technology, and has long been

committed to exploring the innovation and application of financial big data

technology

• Joined CCX Credit in 2014 to help the company complete preparatory work for

personalcreditcardissuance,andestablishedtheWanxiangCreditInternetBigData

CreditReportingPlatform.Heledateamtoindependentlydevelopandsuccessfully

applymanycoretechnologiessuchasbigdataanti-fraudandcreditassessmentto

becomeoneofChina’s firstpractitioners in thebigdatacredit rating industry,and

washiredbyanumberoflargebanksasanexternaltechnicalexpert

• Since2016,hehasfocusedontheapplicationandinnovationoftechnologiessuchas

blockchain,machine learning, andartificial intelligence in the financial field, and is

dedicatedtopromotingintelligentcreditassessment

ChenZhiwu

• Former Professor of Financial Economics at Yale University (1999-2017), currently

servesasresearchdirectorofAsiaGlobalInstituteofHongKongUniversity,andFeng

Foundation Professor (economics) at School of Economics and Business

Administration. Also serves as Distinguished Professor at School of Economics,

PekingUniversity.

• InternationalConsultant,ChinaSecuritiesRegulatoryCommission,memberofGlobal

Advisory Committee of China Minsheng Investment Company, and independent

director of IDG Energy Investment Group, Bank of Communications and Noah

Fortune.ProfessorChenservedasamemberof theYale-ChinaAssociationofYale

University, amember of Advisory Committee of Beijing's 12th Five-Year and 13th

Five-year Planning Experts and general academic director for CCTV documentary

"Wall Street" and "Monetary Affairs." Professor Chen was a member of the

preparatoryexpertgroupwhenChinaInvestmentCorporation(CIC)wasfoundedin



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2007; an independent director of PetroChina Company from 2011 to 2017, an

independentdirectorofNordiskFundManagementCo.,Ltd.from2007to2015,an

independentdirectorofShijiJiayuanNetworkfrom2011to2012,andadirectorof

ChinaEagleSecuritiesfrom2002to2005.

• FounderofZebraCapitalManagementfundmanagementcompany

• In2012,Burson-Marsteller,aglobalconsultingfirm,listedProfessorChenasoneof

"China's TenMost Influential People" in its "G20 Influencer Report" (G20 Nations

MostInfluentialPeopleReport).

• ResearchawardsincludetheGrahamTrophyAward(2013),thePacesetterResearch

Award (1999), the MertonMiller Research Award (1994), and the Chicago Board

OptionsAward(1994).ProfessorChen'sLogicofFinancewon23BestAnnualBook

awards

• BachelorofComputerSciencefromCentralSouthUniversityofTechnologyin1983,

Master of Management Science from National Defense University of Science and

Technologyin1986,thenPh.D.inFinancialEconomicsfromYaleUniversityin1990

HenryCao

• Renownedfinancialeconomist,nowaProfessorofFinanceatCheungKongGraduate

SchoolofBusiness,academicdirectorofFinancialMBA

• MemberofFinancialClub,formerprofessorattheUniversityofCalifornia,Berkeley,

UniversityofNorthCarolinaatChapelHill.

• Published a number of papers and is widely cited in internationally renowned

journals including Journal of Finance, Review of Financial Studies, and Journal of

FinancialEconomics;

• NominatedforBestPaperforJournalofFinancetwicein1998and2000;BestPaper

AwardinEmergingMarketsfieldselectedbytheNorthernFinanceAssociation;Best



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PaperAwardfortheMostInvestedValuebytheWesternFinanceAssociation;won

thebestpaperthirdprizeatthe2004ChinaInternationalFinancialConference;

• EditorialboardmemberofAnnalsofEconomicsandFinanceandeditor-in-chiefof

InternationalFinancialReviewandChinaFinancialReview.

MatthewChang

• MatthewChangisaManagingDirectoronKKR'sChinaPrivateEquityteamandwas

previously the Head of KKR Capstone China. Mr. Chang has over 20 years of

experience in a wide range of companies such as start-ups, multi-national

corporations, and professional service firms inMainland China, Europe and North

America.

• Priorto joiningKKRCapstone,Mr.ChangservedasglobalseniorpartneratRoland

BergerStrategyConsultants,leadingitsAsianoperationsandrestructuringpractices.

• Earlierinhiscareer,Mr.ChangwastheChinamanagingdirectoratAlixPartners,an

associateprincipal atMcKinseyCompany, and theAsia strategydirector atDiageo

PLC.

• Mr.ChanghasanM.B.A.degreefromIMDInternationalandundergraduatedegrees

inmathematicsandphysicsfromCoeCollegeandtheStateUniversityofNewYork.



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13. Partners

TONGNIUTech

TN Tech is the leading SaaS financial technology company in China. It is committed to

providing consumer finance SaaS system services to licensed financial institutions such as

trusts,banks,andsmallloancompanies.TNTechranksfirstinChinaintrustindustrymarket

share.IntheprocessofbuildingtheDistributedCreditChain,TNTechwillprovidehistorical

creditdataapplicationsupportforhistoricallyaccumulateddata.

JUZIX

JUZIXisthegloballeaderindistributedledgertechnologyandiscommittedtoproviding

distributeddataexchangeandcollaborativecomputingservicesinthedigitalage.Providinga

full range of governance services for the flow of data, it makes data exchange and

collaborationeasier,saferandmoreefficient.

Basedonacompletelyself-developeddataexchangeinfrastructuretechnologyplatform,

JUZIX integrates distributed ledgers, securemulti-party computing, pluggable cryptography

frameworks, future-proof cryptography algorithms and protocols, and software and

hardware-in-onesolutions. Itprovidesbasictechnicalplatform-levelservices inthefieldsof

finance, transportation, logistics, aviation services, intelligent manufacturing, internet of

things, HealthCare and other fields. It also fully cooperateswith theworld's leading cloud

platformstoprovideacompletesolutionfordistributedindustrialapplications.

AsanimportanttechnicalserviceproviderintheDCCconsortiumchainstage,JUZIXwill

providecomprehensivetechnicalsupportintheconstructionphaseoftheconsortiumchain.

Deepfin

Deepfin is a decentralized blockchain-based asset securitization platform. In Deepfin,

holdersofdigitalassets(e.g.,copyrights,articles,traffic,etc.)ondifferentstrandscaneasily



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completeassetcollateralizationandfundraisingandusedifferentquantitativeanalysistools

and services to price different assets on different strands, opening up digital assets in

differentchainssothatuserswithfinancingneedsindisparatecommunitiescaneasilyobtain

financingthroughthedigitalassetstheyown.Usingtheblockchaintechnologytotransform

traditionalABSbusinesscanaccomplishwith lowcostandhighefficiencyassetownership,

datavalidation,andotherauthenticityvalidationwork.

WXY

Aone-stopglobalmarketingandbusinessconsultingservicesplatformforhighlyvaluable

digital projects,WXY is headquartered in Singapore and its business covers brand names,

media promotion, global traffic access, business consulting, capital interfacing, and more.

WXY is comprised of former Ogilvy & Mather executives, former vice presidents of the

Kryptonmarket,formerCitigroupmarketingandfinanceinvestmentbankingexecutives,core

resources such as media and funds, and is the most formal and professional marketing

platformintoday'scurrencymarket.



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14. EarlyInvestors

JRRCapital

Professional Investors and Entrepreneurs driving innovation based on Blockchain

technology.

Based inSwitzerland, JRR is committed tomake investments in thebestentrepreneurs

whoarefosteringinnovationintheBlockchaintechnologyandrelatedfields.Inaddition,JRR

isanangelinvestmentinstitution,whichalsohasfundedinbinance.com.

With years invest experience, JRR has successfully invested on binance.com, wax,

hooah.comandDCCuptonow.

TheBlockchain,anovelfinancialtechnology,holdsthepromisetodisruptlegacypartsof

financialservicesandcreatenewmarkets.

BTXCapital

BTX Capital is a global crypto fund focused on the blockchain industry. BTX keeps

boosting the valuable internet organizations to adopt blockchain technology through

technical consultation, investment and resource connection, as well as promoting the

awarenessandrealizationofthevalueofblockchain.UnliketraditionalVCequityinvestments

or other purely digital currency funds, BTX Capital specializes in sophisticated Internet

platforms in different scenarios. By assisting them in applying blockchain to business, BTX

seekstoreshapethebusinessecosystem,improvetheeco-cooperativeenvironment,scale-

up the real economy, advance technologies and rejuvenate the internet industry with

blockchaintechnology.

ThecoreteamincludesseniorinvestorsfromSequoia,executivesoflistedChinaandUSA

companies,Ph.D.sfromtopuniversities.Ithassupportfrommanytop-levelseniorexecutives

of investment institutions and project sources behind the top-tier financial institutions, as



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well as in-depth technical cooperation with universities in Silicon Valley and Europe to

providethesupportofprofessionaltalentstotheprojectpartners.

HuSen

• Repeatedentrepreneur,ex-Googler

• Bachelor of Computer Science, China University of Science and Technology, Guo

Moruo Scholarship; Master of Computer Science, Yale University; PhD student

entrepreneur, foundedandoperatedFengyunBroadcastandZhangyuTV; in2015,

ZhangyuTVwasacquiredbyLeTV.

• Awarded 30 Under-30s by Forbes China in 2014 and by Forbes Asia in 2016 for

outstandingachievementsoffoundingCLOUNDACC.

MaiZizhao

• Telegram-TonCornerstoneInvestor

• Co-founderofBlockchainLaboratoryMathTrust

MathTrust isa laboratory jointlyestablishedbymanyworld-renowneduniversities,

focusingon research, experiments from theory, logics, andpracticesof blockchain

consensusmechanism. The latest theoretical model brought byMathTrust is that

blockchain is a chain of smart contract series. The main topics covered by its

consensusmechanismresearch includebutarenot limited toguaranteesof smart

contract,nodeecosystem-relatedloopholerecognitionandsolutionsfornode-based

security.

• Co-founderofAbilityChain

AbilityChain is a blockchain-based platform for global education underlying

application. Being a public chain collectively built based on global developer

community,AbilityChainisinitiatedbyMathTrust,who,togetherwithAbilityChain's

shareholder,arenon-profitorganizations.



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• FounderofFeiyueEducation

Feiyue Education is China's first bilingual educational institution targeting at K12

students.Itscomprehension-basedpedagogyandcorecurriculumsareentirelyself-

developed.



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15. Risks

You acknowledge and agree that there are numerous risks associated with purchasing DCC,holdingDCC,andusingDCCforparticipationinDistributedCreditChain.

• UncertainRegulationsandEnforcementActions

TheregulatorystatusofDCCanddistributed ledgertechnology isunclearorunsettled inmanyjurisdictions.Itisimpossibletopredicthow,whenorwhetherregulatoryagenciesmayapplyexistingregulationsorcreatenewregulationswithrespecttosuchtechnologyanditsapplications,includingDCC and/or Distributed Credit Chain. Regulatory actions could negatively impact DCC and/orDistributedCreditChaininvariousways.TheFoundation(oritsaffiliates)mayceaseoperationsinajurisdiction in the event that regulatory actions, or changes to law or regulation,make it illegal tooperate in such jurisdiction, or commercially undesirable to obtain the necessary regulatoryapproval(s)tooperateinsuchjurisdiction.

Afterconsultingwithawiderangeoflegaladvisorsandcontinuousanalysisofthedevelopmentand legalstructureofvirtualcurrencies, theFoundationwillapplyacautiousapproachtowardsthesaleofDCC.Therefore,forthecrowdsale,theFoundationmayconstantlyadjustthesalestrategyinordertoavoidrelevantlegalrisksasmuchaspossible.

• Competitors

ItispossiblethatalternativenetworkscouldbeestablishedthatutilisethesameorsimilarcodeandprotocolunderlyingDCCand/orDistributedCreditChainandattempttore-createsimilarfacilities.DistributedCreditChainmaybe required tocompetewith thesealternativenetworks,whichcouldnegativelyimpactDCCand/orDistributedCreditChain.

• Failuretodevelop

There is the risk that the development of Distributed Credit Chain will not be executed orimplementedasplanned,foravarietyofreasons,includingwithoutlimitationtheeventofadeclinein the prices of any digital asset, virtual currency or DCC, unforeseen technical difficulties, andshortageofdevelopmentfundsforactivities.

• Securityweaknesses

Hackers or othermalicious groupsor organisationsmay attempt to interferewithDCCand/orDistributedCreditChaininavarietyofways,including,butnotlimitedto,malwareattacks,denialofserviceattacks,consensus-basedattacks,Sybilattacks,smurfingandspoofing.Furthermore,thereisarisk that a third party or a member of the Foundation or its affiliates may intentionally orunintentionally introduceweaknesses into the core infrastructure ofDCC and/orDistributedCreditChain,whichcouldnegativelyaffectDCCand/orDistributedCreditChain.



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• Otherrisks

Inadditiontotheaforementionedrisks,thereareotherrisks(asmoreparticularlysetoutinthe

TermsandConditions)associatedwithyourpurchase,holdinganduseofDCC, including thosethat

the Foundation cannot anticipate. Such risksmay furthermaterialise as unanticipated variationsor

combinationsoftheaforementionedrisks.YoushouldconductfullduediligenceontheFoundation,

itsaffiliatesandtheDCCteam,aswellasunderstandtheoverallframeworkandvisionforDistributed

CreditChainpriortopurchasingDCC.

distributed credit chain whitepaperdcc.finance/file/dccwhitepaper.pdfdistributed credit chain...

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