socially impact driven & economically viable the next ...€¦ · fragmentation, many users of...
TRANSCRIPT
Using DeCo to Create the Ecosystem of the Future An estimated 3.5 billion humans are now online and entrusting their most precious personal information to conventional online platforms that are increasingly showing the limitations and weaknesses of centralized systems. From data security issues, to privacy concerns and a general feeling of fragmentation, many users of online services feel as if they are no longer in control of their online presence. Quanta, the blockchain pioneer, is hereby proposing a new approach to online life. One that puts the user back in control and fundamentally changes the way we think and act when it comes to our digital existence. By creating Quanta Pass™, a Digital ID and comprehensive Life Portal that incorporates a number of ground breaking features and functionalities, we will provide millions of users a better online experience, based on the company’s established technological expertise in the blockchain arena. Quanta Pass will utilize our limited supply, gas free QNTX token and turn it into a highly prized store of value for use with our own and third-party applications, in a setup that we refer to as Decentralized Ecosystem (DeCo). Our vision and mission for this large-scale transformation of the global digital space is described within this white paper.
v2.0
SOCIALLY IMPACT DRIVEN & ECONOMICALLY VIABLE
THE NEXT GENERATION DECO ECOSYSTEM
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LEGAL DISCLAIMER: Please read the following notice carefully as it applies to all persons reading this Whitepaper. This document
was prepared by Quanta PLC (“Quanta”) and its affiliates who may alter and update this notice at their discretion. This document does
not constitute nor imply a prospectus of any sort and it does not establish a relationship between you and Quanta. No wording
contained herein should be construed as a solicitation for investment or participation. Accordingly, this whitepaper does not pertain in
any way to an offering of securities or utility tokens in any jurisdiction. Rather, this whitepaper constitutes a description of the business
purpose, functionality, economic and social value of the Quanta platform, the creation and distribution of QNTX tokens and the
promotion, implementation, and adoption of an identity ecosystem serving as a conduit among humans, objects, and devices. This
Whitepaper is for information purposes only. Users who intend to purchase QNTX tokens are strongly advised to read this Whitepaper
carefully and perform due diligence in their respective jurisdictions. Users that are citizens or residents of any country where purchase
of similar tokens may be prohibited, or the sale itself is deemed not compliant with applicable laws and regulations are not eligible to
purchase QNTX tokens at this stage. Please note that if you are a resident of the United States, Japan or from another restricted
country you will NOT be able to purchase QNTX tokens.
Quanta and its affiliates shall have no liability for damages of any kind arising from the use, reference to, or reliance on this whitepaper
or any of the content contained herein, even if advised of the possibility of such damages. This paper is a description of the current
and planned Quanta ecosystem, the participants designing and developing it, and the project undertaken to bring it to fruition. As
such, this paper may contain predictions, estimates or other information that might be considered forward-looking. While these
forward-looking statements represent Quanta’s current assessment of what the future holds, they are subject to risks and uncertainties
that could cause the actual results to differ substantially. Hence, the reader of this whitepaper is cautioned not to place undue reliance
on these forward-looking statements, which reflect the opinions of the Quanta team only as of the date of issuance of the paper.
Please bear in mind that Quanta is not obligated to revise or publicly release the results of any revisions to these forward-looking
statements in light of new information or future events. Investing or participating in new technology may involve risk and we recommend
that you seek out independent financial advice before purchasing QNTX tokens.
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Table of Contents Executive Summary 3Creating the Digital Ecosystem of the Future with DeCo 4Quanta’s History 4Problem & The Quanta Solution 5Unit 1: Quanta Ecosystem™ 7
Vision & Mission 7Why Africa? 9Quanta Pass™ 11Quanta Pay™ 13Quanta Lottery 18Quanta RANDAO™ 19
Unit 2: The Quanta Token System 22Introduction to the Token System 22The Quanta Utility Token (QNTX) 23
Why QNTX? 23Overview 23Issuance and Token Allocation 26
Unit 3: The Quanta Organization 27Quanta’s Structure: Approaching Decentralization 27Team 28Roadmap 30
Appendix A - RANDAO™ 32Appendix B - Quanta Pay™ Interaction 34Appendix C - QNTX Functions Description 37Appendix D - Terms & Conditions and Other Sources 41
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Executive Summary The establishment of blockchain-based systems for finance and gaming has been
a recognized possibility for nearly a decade already. Few blockchain-based gaming
projects however, have truly taken into account the implications of government
regulations and managed to be part of anyone’s daily life. Quanta has focused its product
development towards creating platforms that will provide utility and in the same time allow
any operator to be regulated, with minimal changes, depending on jurisdiction.
Quanta was founded by experts in both ‘fintech’ and ‘regtech’ and is the first
blockchain-based gaming organization that succeeds at combining technological
advancements - such as smart-contract powered random number generation - with
business practices that are compliant with government regulation.
Quanta successfully launched the first fully licensed blockchain lottery in 2019,
licensed by the Isle of Man Gambling Supervision Commission, which has given us
extremely valuable expertise. Quanta is now significantly scaling up our goals and shifting
focus towards emerging markets, with an initial emphasis on Sub-Saharan Africa. In
addition to this, the company is evolving from a purely lottery focused solution towards a
far wider vision of an entire ecosystem, that will allow the company to utilise all of the
expertise and resources at its disposal. The Quanta DeCo™ will give access to a wide
range of services in a cohesive and value driven environment. This vision of a self-
sustainable ecosystem that can bring real benefits to users and operators is a massive
leap forward for Quanta, made possible by bringing in new management with extensive
experience, and forging exciting partnerships.
Quanta Lottery was the first stage of the Quanta DeCo™ to be developed and is now
being released in these emerging markets. Once the Quanta Lottery has been launched
successfully, development will continue on the rest of the Quanta DeCo™, focused on
social impact and bringing the benefits of blockchain technology to a wider audience.
Quanta’s goal is to provide universal access to an expansive ecosystem, including
fair lottery services, an innovative fintech platform and cutting-edge entertainment
channels. This document is intended to elaborate on this vision, and to make readers
aware of the exciting potential of the Quanta DeCo™.
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Creating the Digital Ecosystem of the Future with DeCo
Conventional online platforms and app stores are increasingly showing the
limitations and weaknesses of centralized systems. From data security issues, to privacy
concerns and a general feeling of fragmentation, many users of online services and
marketplaces feel as if they are no longer in control of their online presence. Personal
information is used as a commodity and users are treated as products by established
companies that seemingly care little about privacy or social aspects. Users are, however,
starting to wise up and looking for ways to regain control.
Quanta, the blockchain pioneer, is hereby proposing a new approach to online life
with the help of a decentralized ecosystem that incorporates a number of ground breaking
features and functionalities based on the company’s established technological expertise
in the blockchain arena. We will create a next generation marketplace and Life Portal that
hands total control to the user by utilizing a Digital ID and decentralized applications that
go above and beyond anything on the market today. Called Quanta Pass™, this powerful
platform will not only incorporate in-house built applications covering subjects such as
data security, payments and entertainment, but also welcome third-party products and
services for integration that share our vision and mission.
Utilizing our proven QNTX utility token within the ecosystem, we will create an
environment that promotes the generation of real-life value and allows users to pay for
services with our own gas free token or through external means in a setup that we refer
to as Decentralized Ecosystem, or DeCo for short. This next generation decentralized
mobile marketplace is ready to be developed and its vision and mission are laid out within
this white paper.
Quanta’s History
In 2015, a group of software developers, entrepreneurs and innovators came
together to change the world of lotteries. Three years later, Quanta, the world’s first fully
licensed Blockchain lottery, was revealed to the public. While the product itself delivered
all the ground-breaking innovation its pioneering founders envisaged, the global
marketplace it had been designed to conquer was changing and turned out to be less
than welcoming towards it. Regulatory complexities paired with internal challenges set
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the company onto a course for choppy waters, eventually leaving it at a cross road
between surrendering what had been achieved or looking for external salvation.
The helping hand came in 2019, in the form of new leadership who not only brought
with them a wealth of knowledge and experience in the gaming and technology sectors,
but also a plan to direct the company’s visionary focus and leading edge Blockchain
products towards new horizons. The refreshed management quickly realized that the
backbone of what had been achieved by Quanta was solid and could be used for
applications beyond just lottery. Following a period of transition, during which a thorough
review of the business took place and requited internal efficiency measures were
implemented, Quanta is now pleased to present to you its new White Paper.
Problem & The Quanta Solution
Emerging markets are attractive for a growing company, and Africa is a great
example of this. Digital companies in Africa are experiencing rapid growth alongside the
expansion in internet and mobile usage, with a sizable young population open to new
technologies. It is predicted that Sub-Saharan Africa will record over 600 million unique
mobile subscribers by 2025, with a compound annual growth rate of 4.6%.[1] There is a
huge amount of potential in this market, and entering during this period of extreme growth
is optimal. However, in emerging markets there are often significant issues with
companies looking to take advantage of a lack of regulation, education, and competition.
Quanta must not only deliver the right solution for the market, but delivery must
also take place through the right channel, which in the case of Sub-Saharan Africa is
Mobile Only as the majority of users will not be owning desktop PCs or Laptops and
instead rely on low-cost Android devices for all aspects of every-day technology. The right
tone for each market must also be hit to ensure acceptance by local users, and a
considerable amount of educational efforts will have to be put in to ensure users
understand and appreciate the benefits of our technology. This educational aspect will
often have to be extended to regulators and governments in general, where a lack of
crypto currency and blockchain related laws and regulations is still observed. As a general
rule, simplicity always has to be at the forefront of the developer’s mind. The generally
more challenging business environment in developing countries must also not be
underestimated, with everything from local infrastructure issues to grey area customs and
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processes having to be taken into account. Where the user is concerned, challenges
often exist in the areas of trust and transparency, with regulations frequently not as robust
as in other, more developed countries.
Quanta believes that it has the answers for this and can address key issues in the
African market and beyond. The Quanta DeCo™ is designed to provide an environment
that users and regulators can be confident in. By utilising blockchain technology, Quanta
can provide unrivalled transparency, security, and safety. Users can query the system
themselves to examine the strict rules set by smart contracts and track transactions, and
can verify that the system functions as advertised. Smart contracts can provide proof to
users that the system must act in a certain way, with no manipulation or unknown
features. The blockchain architecture can ensure redundancy and continuation of service,
even if some of the services are inoperable due to technical difficulties. These key
competitive advantages provide significant incentive for users to use our platform as a
one-stop solution.
As an agile, decentralized company, Quanta is well equipped to enter some of the
most difficult markets by taking advantage of global expertise combined with local
infrastructure. With an extensive development team already established, being able to
customise products to exactly target these markets exactly, is crucial. This will enable us
to work with many of the larger players in the target industries, having already done the
groundwork and established a local network. Quanta’s efforts and dedicated work in
setting up in these markets will enable partners to flourish and access a significant
audience by utilising our platform. In addition to this, parts of the Quanta DeCo™ can be
sold independently as turnkey B2B solutions, meaning that third parties can utilise the
transparency, safety, and security that Quanta’s Technology can provide. QNTX will be
utilised as a key instrument in B2B agreements, bringing benefits to the Quanta DeCo™
even if B2B deals are outside of it. Integrating Quanta’s products into traditional solutions
allows those companies to leverage the benefits of blockchain technology with ease.
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Unit 1: Quanta Ecosystem™
Vision & Mission
The new Quanta moves on from just being a lottery provider and expand its
proprietary technology into new fields. Our Vision Statement and guiding principle is now
to be Socially Impact Driven & Economically Viable (SIDEV), and our mission is to create
life enhancing products in-house and in cooperation with B2B partners.
The core focus of Quanta is to create a sustainable blockchain-based ecosystem
with a product suite that truly benefits users in many aspects of their lives, accessible
under a single Digital Identity. Quanta’s DeCo™ makes it simple for users to access many
different services. Users and Operators will be able to maintain full control of their actions
within the ecosystem and users of the ecosystem will maintain total control of their
personal information.
By removing middlemen, minimising operational costs, and reducing business
needs, Quanta’s blockchain ecosystem will be able to offer extremely competitive pricing
and affordable services. The ecosystem aims to generate revenue by the services offered
and not from controlling and distributing user’s personal data.
The digital world is ever expanding, but the Quanta DeCo™ will bring all of the
essentials under one accessible portal with the benefits that blockchain technology can
provide.
The Quanta DeCo™ will span both personal and financial services, as well as
making significant advancements on providing positive social impact in the markets we
operate in. Quanta is building a cohesive environment that will impact many different
areas of society, allowing users to easily access bespoke applications created by Quanta
as well as exciting third-party products and services. The Quanta team already has strong
connections with third parties that have licensed products that would fit well within the
ecosystem. This means that once development of the Quanta DeCo™ structure is
complete, we will be able to progress quickly and efficiently with integrating and offering
new and exciting opportunities.
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With an initial focus on emerging markets, Quanta’s mission is to provide easy
access to a transparent, secure, global ecosystem of applications including healthcare,
education, social impact activities and much more. As a market that would heavily benefit
from unparalleled transparency and safety, Quanta has identified the potential of the
Quanta DeCo™ and has the local presence and expertise ready to maximise market
presence and to provide technical support and services to local partners. To achieve
these goals, the company has developed an Africa-focused network of connections and
infrastructure.
Quanta has identified Africa as the optimal market to launch the Quanta DeCo™,
due to a number of key advantages; Africa is familiar with mobile money, as an early
adopter of both mobile technology and digital wallets. In 2018, Sub-Saharan Africa
accounted for nearly half of global mobile money accounts (396/866 million) [1], far more
than any other area. In Kenya, the value of such transactions amounts to almost half of
gross domestic product, according to the World Bank. There is now a firm foundation of
familiarity with digital/mobile payments throughout the continent that is continuing to grow
rapidly. Quanta believes that we can provide real benefits to users in this market, making
positive impacts on their way of life. Development will focus on Africa-centric services that
provide real value and address real needs within Africa.
Areas of focus for the Quanta DeCo™ will include partnerships with
regulated/licensed companies in finance, gaming, healthcare, education, social impact,
and more. Quanta is actively building a global community of experts, dedicated to making
Quanta a viable - and legally compliant - business everywhere in the world. The finance
and gaming industry are an area where blockchain can make significant progress, and
also an area that Quanta has identified as being a fantastic opportunity to leverage the
technology to create positive social impact.
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Why Africa?
There are numerous reasons why Quanta has chosen Sub-Saharan Africa to launch
the Quanta DeCo™, and in particular Nigeria, as its initial target market, namely:
1. A crypto-enthusiastic population. Our initial target market, Nigeria, is the crypto
capital of Africa, consistently ranked within the top 10 countries world-wide for
Bitcoin trading volume, and has topped Google search rankings on the subject
for some time. Other African countries are not far behind, with Kenya, Ghana,
South Africa and even Zimbabwe representing hotspots of crypto activity and
interests. The reasons for this often lie in the economic situations in these
countries, where growth might be taking place but inflation and political instability
are often still an issue. Zimbabwe is probably the best example for this, with
many people turning to Bitcoin last year after the government banned the USD
from being used. As a result of all of this, many Africans already have a good
understanding of cryptocurrencies and blockchain technology.
2. A young and tech savvy population. Nigeria is not only one of the most populous
nations on earth, ranking 7th with a population of 206 million, but also one of the
youngest with a median age of 18.1 years. With education levels also improving,
the country is currently the home to a large number of individuals eager to
embrace technological advancements and keen to better the circumstances of
their lives. A product such as the one proposed by Quanta therefore falls on
extremely fertile ground.
3. A rapidly improving technological playing field. The times when Africa was
synonymous with low-cost GSM feature phones and transactions carried out via
text message or USSD are slowly coming to an end. Nigeria has seen significant
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investments by its telecom providers in recent years and now boasts a modern
3G/4G network that serves its Mobile First population well. The majority of
internet users do not access the web via laptop or desktop computer but through
Android smartphones, creating the perfect target market for a product such as
the one proposed by Quanta.
4. Existing structures and partnerships. Through its ownership of ILGL, a lottery
and gaming firm based in Lagos, Quanta already has boots on the ground in
Nigeria and valuable market knowledge that can be leveraged. In addition,
through its involvement with Ecobba and Afya Rekod, two promising blockchain
technology startups in Africa that are scheduled for inclusion in Quanta Pass
from launch, the company already has access to a potentially significant user
pool measuring in the millions.
Once the concept has been proven in the Sub-Saharan region, Quanta fully intends
to expand Quanta Pass globally, with many other territories presenting potential target
markets. The beauty of the Quanta DeCo™ is the fact that it perfectly aligns with the
requirements of users in developing and developed countries.
Quanta is targeting a strong start to growth of the Ecosystem, mostly by building a
community of both blockchain and new users. Motivation for users to take the initiative
and get started in the Quanta Ecosystem will be ensured by utilising airdrops alongside
other marketing strategies in order to create significant momentum in our target markets.
This will be accelerated as products are integrated and partners are onboarded.
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Quanta Pass™
Quanta Pass™ is an all-encompassing solution for a Digital Identity which is the
centre of the Quanta DeCo™. Quanta Pass™ allows the user to provide KYC information
with a service called QSeal™, which is a single, fully encrypted application. QSeal™ then
provides access to different applications inside the Quanta DeCo™ that require KYC, as
well as third party services, based on the level of information you have provided. This will
also integrate a service called Quanta Vault™, allowing users to securely store their
ID/Photos, etc. which can help solve issues of trust in emerging markets. This means that
users do not have to provide all of their data to disparate service they use, which would
open them up to potential data breaches and identity theft.
A one-time registration on Quanta Pass™ will enable the user to access many
applications on an online marketplace without having to re-register for each application,
bringing convenience to a normally complicated digital world as well as saving time and
money. It effectively functions as a “Life Portal”. The core of Quanta Pass™ will always
be free-to-use, meaning that in all aspects it is better than the traditional competition.
Quanta aims to ensure that Quanta Pass™ makes life easier with a far better user
experience than traditional solutions. It is in this respect that, until now, other blockchain
companies have struggled.
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Quanta will look to integrate applications from third party developers in order to
expand the functionality offered to users while ensuring compliance with all local
regulatory requirements.
It is Quanta’s firm belief that blockchain technology can help to safeguard user’s
information and enable new, secure, encrypted ways of providing identity verification.
Quanta Pass™ will leverage the benefits of blockchain technology in order to function as
a gateway to the Quanta DeCo™, as well as enabling interactions with public and private
blockchains.
The concept of Quanta Pass™, when observed in its entirety, is reasonably novel
and complex. It is therefore not a straight forward exercise to identify competitors and
compare it to any.
In the field of decentralized marketplaces, two projects deserve to be mentioned here.
One is a now defunct ICO project named Spheris. On the face of it, this project was very
similar to the concept of Quanta Pass but the unrealistic token model (2 Trillion Tokens)
and other unknown factors have likely led to the project being unsuccessful. The other is
called Origin and promises to deliver blockchain powered commerce. It is backed by
some notable Silicon Valley VC firms and gives thorough credibility to the idea of Quanta
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Pass. Due to it being more US centric, it is not seen as direct competition for Quanta, but
ore as validation of our basic idea.
Quanta Pay™
Overview Payments are perhaps the ‘killer app’ of blockchain and cryptocurrency. Banks and
money transfer companies have been charging high fees to transfer essential, basic data
as there have been no challenges to their business model. With the advent of blockchain
technology, it is possible to transfer both small and large amounts of money at a fraction
of the cost of traditional providers. Quanta has developed an e-wallet that will be centric
for the Quanta DeCo™. Quanta Pay™ acts as your own mobile bank account that you
have full control over, that allows you to save, deposit, and spend cryptocurrencies
through third-party service providers or applications. Being able to hold and transact using
cryptocurrencies whilst having access to a service ecosystem is an attractive prospect for
emerging markets. This could be used as a way to mitigate the risk of hyperinflation or
extremely volatile currency valuations, and provide access to bank-like services to the
unbanked population.
Quanta Pay™ will be one of the main applications available through Quanta
Pass™. Having a centralized balance that can be used for many different products and
services greatly reduces the barrier to entry for these services. The first iteration of
Quanta Pay™ has already been released to the public in the first half of 2020, and will
now be further developed to fulfil the vision of the ecosystem. Regulatory compliance is
at the forefront of any future development plans.
Payment Solution
Blockchain enabled payments simplify the payment process, making intermediate
third parties redundant. The goal is to produce frictionless and nearly instant payment
solutions. Unlike traditional services, a blockchain network doesn’t depend on a slow
process of approving transactions, which usually goes through several levels of approval,
and requires significant manual work. Instead, a blockchain system can perform rapid
worldwide financial transactions supported by a distributed network of computers. In
comparison to the industry standard, blockchain technology can provide faster and more
reliable payment solutions at a far lower cost. In other words, blockchain technology may
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solve a number of the main problems faced by the payment industry, like high fees and
long transaction times. In addition to significantly reducing operational costs for operators.
At Quanta we aim to offer users the benefits of these blockchain payment services
all within the seamless environment of the Quanta Ecosystem™. Users will be able to
load fiat currencies onto their wallet through our extensive network of Quanta onboarding
merchants and service providers. In addition, premium features will include additional
currencies which can be accessed via the utility of the QNTX token.
Merchants
Quanta Pay™ will be developed as a means to pay for goods and services with
merchants worldwide. Systems like Apple Pay or Samsung Pay have become very
prevalent in recent years, but the underlying assumption of these technologies is that
traditional banks still provide the financial backbone of the technology. With Quanta
Pay™ we aim to do things differently. Both the front end and back end will be entirely
powered by Quanta and funded by users through the Quanta DeCo™. QNTX will play a
pivotal anti-spam and network access mechanism in this trustless environment, due to
the fact that each wallet is owned by one user, agent, or business and no other source
can trigger transactions or alter data in the system.
Financial Ecosystem
As per our roadmap, Quanta Pay™ will evolve into a service that provides mobile
applications powered by the Quanta DeCo™, allowing users to access financial products
conveniently. This includes products from licensed third parties. The utility of QNTX will
be paramount to the build-out of this ecosystem. For example, QNTX will be utilised in
the Quanta Escrow™ solution that acts as a decentralized middle-man and which can
provide protection against scams and fraud. This will ensure that buyers and sellers can
transact without the risk of one party not fulfilling its obligations. The Escrow Smart
Contract solution will be integral to Quanta Pay™.
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Quanta Labs is leading the development of this financial ecosystem, creating
financial products custom-tailored to the individual needs of the end user. Quanta Pay™
will provide access to decentralized applications (DApps) that can provide unique benefits
to users, meaning they can use their ecosystem balance to access these easily, with no
additional requirements. As of early 2020, Quanta Pay™ is already available for Android devices and being used
for:
● Cryptocurrency storage and payments - Multi-currency support
● Lottery participation - Ticket purchase and prize distribution (via smart contract)
● Quanta RANDAO™ participation (Provably Random Number Generation)
We aim to make Quanta Pay™ available across all major platforms soon.
Quanta Escrow™ The Quanta Escrow™ solution will give the option to the QNTX token holders to
send funds either with a time delay or with the co-approval of a third wallet holder. This
functionality will be part of the Quanta Pay™ application.
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The user will be able to select between the two available smart contract options,
timed or third-party escrow, and will receive notification once the transaction is completed
and confirmed on the Blockchain.
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In the case of Timed Escrow option, the user will be requested to add both a
recipient address as well as the third party public Ethereum address that will be required
to approve or decline the transaction – also mentioned as the “Third Party Address” or
“Escrow Address”. In the case that the “Third Party Address” owner chooses to decline
the transaction, then the funds are returned to the sender.
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The sender of QNTX, the recipient and the “Third Party Address” owner will be able to review the transactions within the application. The transaction information will also be available in public Ethereum block explorers, such as etherscan.io.
Quanta Lottery In 2019, Quanta successfully launched the first fully licensed blockchain lottery,
regulated in the Isle of Man. Being compliant with a reputable regulator is an important
phase in the development of the blockchain gambling industry. The next stage of the
evolution of the Quanta Lottery is to release it to emerging markets, starting with Nigeria.
The Quanta Lottery will be integrated into Quanta Pass™ for KYC, and will utilise Quanta
Pay™ as the players wallet. The user’s lottery balance will be stored on Quanta Pay™,
and ticket purchase/prize pay-outs are direct transactions with a user's Quanta Pay™
account. Having Quanta Pass™ and Quanta Pay™ as the core of the lottery provides
seamless interoperability among other applications in the Quanta DeCo™.
With blockchain integration, many business processes can be automated, thereby
reducing costs for operators, allowing funds to be directed towards social impact and
greater incentivization for players.
As a business, the lottery is composed of a number of key processes:
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Random Number Generation (RNG): In the vast majority of cases, lottery winners
are selected by matching the number on their ticket with another number,
randomly generated by the lottery organization using some kind of software
Ticket Sales: The means by which lottery tickets are advertised and sold
Budgeting: The determination of the size of the prize pool and the
amount of funds directed back to the lottery organization
Prize Delivery: The determination of the size of the prizes and the means by which
they are delivered to winners
Compliance with regulation as well as local cultural practices in the region of the
lottery’s operation Ticket Sales
In 2018, according to the World Lottery Association, the sales of their registered
members grew 8.4% to over $306.5 billion.[2] As the lottery revenues grow, the number
of scams grow as well - and this is a big problem. Usually carried out as “advance-fee
fraud,” notable examples of lottery scams include the El Gordo Sweepstake, The UK
National Lottery scam, and the Australian Lotto Inc scam.[3]
By integrating blockchain technology into the lottery, two key things can be
accomplished in terms of the sale of tickets: First, potential players will be able to
determine if lottery tickets are genuine by looking up the smart contract code and
examining the transactions. Second, players will be able to verify that the prizes are
indeed being paid out, proving the legitimacy of the platform.
Quanta RANDAO™
The core process of any lottery is the means by which winners are selected. The
RANDAO™ random number generation protocol has been developed to decentralize this
process. RANDAO™ is a type of decentralized autonomous organization (DAO) that
makes use of community participation to generate random numbers. RANDAO™ is
governed by a smart contract that outlines participation rules.
While RNG is on its own an effective means by which to ensure fair winner selection,
its implementation by centralized organizations has not proven itself invulnerable to
manipulation. In 2010, for example, a former employee of the US Multi-State Lottery
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Association managed to install software that manipulated the random number generator.
The perpetrator managed to win a $14.3 million jackpot.
By carrying out RNG protocols on a distributed ledger, the entire process can be
made visible to network participants. With integration of blockchain technology, inherent
transparency can eliminate manipulation. RANDAO™ combines random seeds generated by operators with random seeds
generated by public participants. It is initialised by operators committing their seeds, then
players commit and reveal their numbers in 2 separate phases, and then operators reveal
their numbers and send the RANDAO™ bounty. RANDAO™ participants will have had
to make a small pledge in order to participate in the process, which they will receive back
(plus the Bounty) if they successfully participate.
For a technical description of the RANDAO™ protocol, see Appendix A. Social Impact
The lottery as an institution has been well-recognized as a potential means by
which to direct money to a good cause while providing an exciting form of entertainment
for the common man. The unique setup of Quanta’s lottery system provides additional
opportunities for social impact. For example, RANDAO™ can be used as a way of
efficiently distributing funds directly to people in need by getting them to participate in the
RANDAO™ process to be a part of the RNG process and to claim the bounty. This way,
middle-men are cut out of the process and funds intended for social impact do not need
to be spent on operational costs.
Furthermore, when transactions intended for social impact are recorded on the
blockchain, the community can keep track of the funds and ensure that they are going to
their intended recipients. The transparency that Quanta can provide here is unrivalled.
Social impact efforts will be directed towards the markets that the company is operating
in, meaning that all initial efforts will be Sub-Saharan Africa-focused.
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Commercial aspect
Due to the wide-ranging number of products and services that will form part of the
Quanta DeCo™, the options for revenue generation are also varied and in favour of fast
return on investment. Some ways in which the platform will generate revenue include:
- Income from our Quanta Pay™ Wallet through advertising, referral fees and
transaction fees (retail)
- Profits from our Blockchain lottery product, operated through Naija Lottery
in Lagos, Nigeria
- Fees from our QSeal™ KYC service and other services offered within the
Quanta Ecosystem
- Integration fees and revenue share agreements for B2B partners wishing to
add their applications to our marketplace
- Profits from referrals, profit shares and utility token stakes in third party
services such as eCOBbA and Afya Rekod
- Income from Premium games and educational content created in
partnership with NGOs and governments
- Income from an increased value of our QNTX utility token, achieved by
injecting it into the ecosystem and making it a trusted part of the Life Portal.
Users can pay and be paid in QNTX
- Income from health passport applications (CoviPass) in cooperation with
NGOs and governments
- Income from advisory and consultancy work in the blockchain sector
- Income from custom development work for B2B partners who wish to have
specially designed services on our platform
- Income from the standalone use of RANDAO™, our crowd powered
random number generator
- Profits from advertising deals covering all aspects and application within the
Life Portal.
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Unit 2: The Quanta Token System
Introduction to the Token System
The Quanta DeCo™ is supported by a token economy and is designed to power
the network, provide utility and incentives, and enhance network reach.
The Quanta token system includes these tokens:
o QNTX - The ERC-20 utility token of the Quanta Ecosystem, forms the basis
of an internal economy that ensures the security of the network and powers
many of the functionalities provided in the ecosystem. This token will be listed
on exchanges and forms the backbone of the new ecosystem that unites
service providers with users For a technical description of the QNTX token functions, see Appendix C.
o QNTU - The legacy utility token for gaming. This token was de-listed in May
2020 and has now been replaced with the revamped QNTX token for multiple
utilities in the much larger ecosystem
o QNTR - The legacy token that gave initial token holders the right to royalties
from the Quanta Lottery. This token is not listed, given its status as a security
token
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The Quanta Utility Token (QNTX)
QNTX is a facilitator of honest community participation, and is the core of the Quanta DeCo™
QNTX (ERC-20 token) is an intrinsic part of the Quanta Network and will be required
for transactions throughout the ecosystem. With Quanta’s vision significantly expanding,
the company noted that a token with updated functionality will enable a whole host of new
opportunities for exciting products and integrations. By utilising QNTX where integrated
in the Quanta DeCo™, participants will be able to benefit from discounts/promotions and
access specific applications that require QNTX in order to function. As the Quanta
DeCo™ expands, QNTX use cases will naturally evolve alongside it in order to provide
utility to the new products. The aim of Quanta is for QNTX to be used effortlessly on a
daily basis throughout a suite of products that truly benefit users' lives.
Examples of QNTX use cases in Quanta DeCo™ may include (but not limited to)
services in:
● Advertisements
● Affiliate marketing
● Bonuses/discounts on services
● Coin/token integration fees
● Game Tournaments
● Participation in RANDAO™
● Integration with merchants/ecommerce
● Escrow services
● Payments
Why QNTX?
Overview
The native digital asset of the Quanta DeCo™ was originally intended to be a token
called QNTU. However, as we began to build the lottery system it became clear that we
were embarking on something much bigger than just lottery gaming - something which
encompasses everyday commerce and financial transactions. QNTU was not designed
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or built for these expanded purposes as it was developed with only the Quanta Lottery in
mind. A utility token being used only in a single product created limited use cases and
poor demand. The newly constituted management team of Quanta made the decision to
institute a new native digital asset to power the new expanded Quanta DeCo™ with
multiple utilities, thus QNTX was born.
QNTX is designed to be futureproof, support greater functionality, and have more
sustainable tokenomics, all of which mean that the Quanta DeCo™ will be better
supported by the utility that QNTX can provide. QNTX’s greater versatility will enable
integration with a wide variety of API’s and services to suit the needs of the enlarged
Quanta DeCo™. QNTX will support gas-free transactions for users, meaning that
operators can choose where to provide lower barriers to entry for specific services, as
users will not be required to hold Ethereum or other digital currencies to pay for gas for
each transaction. Quanta aims to make the Quanta DeCo™ as easy to access as
possible, and QNTX will help to enable this.
Ambassador Program
Technology is nothing without people and at Quanta we realize that in order to
create a wide vibrant ecosystem, the right people are critical. Platforms that enable Key
Opinion Leader (KOL) marketing will become a big part of a company’s digital marketing
strategy. We recognize that in the modern age having an online presence that engages
with your target audience is vital to the health of an ecosystem. As such we plan to use
QNTX to engage with KOLs to make them Quanta Ambassadors who will showcase the
full utility and benefits of the Quanta ecosystem. QNTX holders can interact and
communicate with Quanta Ambassadors, as well as incentivize them to further increase
their involvement.
Furthermore, we plan not just to focus on the online KOLs but also to bring them
offline and into ‘real-life’ through organizing meet-ups and events in key locations to
develop local Quanta communities.
In the beginning, the Ambassador program will be offered in a number of key Quanta
geographies and gradually expanded globally. In fact, the Ambassador Program will be
designed to grow organically where aspiring ambassadors can organize meetups
independently in their own city and build momentum.
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Hackathons At Quanta we recognize that we don’t have all the answers and we will engage with
our community to spur innovation for the advancement of everyone. The most practical
example of this is the setup and organization of Quanta Hackathons.
Quanta Hackathons will be high-intensity events organized in conjunction with our
Quanta Ambassadors where the tech development community will be invited to come
together and create functioning software or hardware which expands the Quanta
Ecosystem® and the use cases of QNTX. QNTX will be utilised as an incentive for this
and to provide protections against voting manipulation for the winner. The winning
projects will, in turn, receive ongoing support from Quanta to ensure their vision is acted
upon and incorporated into the Quanta DeCo™.
Advertisements Some areas of the Quanta DeCo™ may contain space for advertisements. Quanta
aims to provide mutual benefit for both the advertiser and the user through these
advertisements by utilising QNTX. This will be strictly controlled by Quanta to ensure that
user experience is minimally impacted. Advertisers must utilize QNTX to enter the Quanta
Advertising Network and engagement with advertisements will be incentivized with
QNTX. This means that the power of advertising is put back in the viewer’s hands where
they are rewarded for their time and attention by the companies vying for it.
Partnerships Drawing on the strength of its open platform and network, Quanta will continually
deepen its partner collaboration to bring to the world more innovative and equal
opportunities. Our goal is to improve the way in which individuals and businesses buy,
sell, and receive payments, and strong partnerships will greatly enhance this. That is why
we are rapidly expanding our partner network to capture the merchants used frequently
by Quanta users.
Leveraging our deep on the ground network in Africa, we have identified a number
of industry verticals to target during our initial rollout. These include financial institutions,
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insurance companies, hospitality sectors, utility companies, and retailers. These verticals
represent the bedrock of commerce and the economy and will enable Quanta to quickly
and effectively bind to the local economy.
Issuance and Token Allocation QNTX is issued by Quanta as an ERC-20 token. It was distributed as a 20,000:1
token swap with the QNTU token, as the token evolved from single to multi-utility. QNTU
was previously airdropped to QNT holders.
The distribution and proceeds use of QNTX will be as follows:
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Unit 3: The Quanta Organization
Quanta’s Structure: Approaching Decentralization
The organizational structure of the Quanta DeCo™ aims for decentralization. The
Quanta Team operates from multiple offices around the world. Currently, the distribution
of personnel is as follows:
A decentralized organizational structure can truly enable success for a modern
fintech/gaming company. With decentralized management, experts in legal compliance
from regions all over the world can be installed as consultants to help products gain
acceptance by local governments.
Additionally, local consultants can help adjust Quanta’s products to local cultural
norms, and even to the language. Decentralized management provides a means by which
to recruit and reward these locals as members of the community, and incentivize them to
expand the ecosystem.
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Team
Harmen Brenninkmeijer Chief Executive Officer Harmen Brenninkmeijer (Advisor) founded Dynamic Partners together with
several international gaming industry veterans in 2015. He was VP Strategic
Markets for Inspired Gaming Group (INGG); founder and CEO of Octavian Global
Technologies, a USD $90MM casino technology supplier with over 35k networked
Electronic Gaming Machines and operations in 10+ countries. Before founding
Octavian, Harmen partnered with the Gauselman Group to establish Avalon
Casino Management, which developed, owned and operated the Grand Casino
in Hungary, Magic Casino in Northern Cyprus and the Playboy Casino on the
island of Rhodes.
Jason Yee Chief Financial Officer CFO Jason Yee graduated with BCom and MBA degrees from the University of
Toronto and is a qualified CPA in Canada, USA and Hong Kong. Jason is a
seasoned banker with over 25 years of working experience from large FIs
including BNP Paribas, JP Morgan and Morgan Stanley. Roles included
controllership, regulatory reporting, taxation, cost management, financial
reporting, performance and sales reporting, business transformation and as
finance head across the Asian region.
Ian Sherrington Chief Product Officer CPO Ian Sherrington is perhaps best known in the gaming industry for writing the
code that ran the very first internet Sportsbook – Intertops.com – which came
online in January 1996. After its successful launch, Ian expanded the website to
incorporate a Microgaming online casino, payment providers PayPal and Neteller and the industry’s best-known affiliate program. Ian was granted the very first UK
online bookmaker’s license in 1998. More recently, Ian has been involved with
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new blockchain technologies by developing the first Ethereum P2P Sportsbook for
Betr.Bet and is now busy as Product Owner for the cutting-edge Quanta
Blockchain Lottery.
John Kamara SVP, Managing Director of Quanta Africa John is an experienced marketing, business growth, and market acquisition
executive, who has successfully delivered multi-million dollar global initiatives and
projects on & offline for over 15 years, in the UK, Europe, Middle East and Africa.
Stelios P Michaelides
Director and Chief Compliance Officer A strategic thinking, internationally-minded and versatile Chief Financial Officer
with over forty years’ managerial experience of ensuring optimal financial and
business operations across extremely diverse geographies and sectors.
Ioannis Papachristou SVP, Managing Director of Isle of Man Experienced in managing Operations and Projects, Ioannis is a dynamic and motivated professional, with a proven record of managing projects from concept
to completion.
Deji Enwezor CEO of Quanta Nigeria Mr. Deji Enwezor is an Executive leader and strategist within the Gaming industry;
Online Lottery and Sports Betting with success developing, implementing, and
managing game strategies designed to meet important and or challenging
business needs.
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Roadmap
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Appendix A - RANDAO™
Technical Description of the RANDAO™ Protocol
Part 1 of this appendix discusses what a RANDAO™ is and how it functions in general
terms.
Part 2 gives a brief overview of the particularities of Quanta’s RANDAO™.
Part 1: The Basic RANDAO™ A RANDAO™ is a type of DAO, or ‘decentralized autonomous organization.’ The
participation in a RANDAO™ is dependent on the creation of a smart contract, in which
the rules of the ‘game’ are encoded. The purpose of the RANDAO™ is to generate a
random number in such a way that excludes internal and external manipulation.
Step 1
To begin the process of generating a random number, the user needs to send a
transaction to contract K with a pledge of X within a limited timeframe. This is sent with
the result of sha3(s), s being the secret number generated by the wallet.
Step 2
When this is complete, and provided the sha3(s) has been submitted and accepted,
then the next step is to send the number ‘s’ to contract K. Contract K will verify that s is
in fact a valid number be running it with sha3 and contrasting the new result with the
already sent data. Step 3
Provided it is accepted, s will be used as a seed in the random number generation
process.
Once all secret numbers have been submitted, collected, and verified, contract K
will generate a random number using the function f(s1,s2,…,sn). The output of the
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function will be written to contract K and all other contracts that had requested the random
number will receive this output as well.
Following this, contract K will send back the pledge to the participant, dividing any
profit equally as a bonus for each participant.
Anti-Manipulation Rules
The random number generator incorporates several rules that are designed to make
sure it operates efficiently and avoids potential manipulation. These rules are:
• If multiple sha3(s)s are submitted at once, the first one received is the only one
accepted
• There is a minimum number of participants, if this number is not reached within
the limited period of time, the random number will not be generated
• If a sha3(s) is sent and accepted by the contract, s must be revealed in step 2. It
cannot remain hidden
Should the user fail to reveal s during step 2 of the process, his pledge sent in step
1 will be surrendered and no recompensating will be provided.
Part 2: The Quanta RANDAO™
RANDAOs, as with other smart contract protocols, are not impervious to manipulation
and other security concerns. It is for this reason that the Quanta RANDAO™ has
implemented the following requirements and procedures:
• KYC verification as a condition of RANDAO™ participation
• Participants pledge as a condition of RANDAO™ participation
• A two-sided structure: Inclusion of the lottery administration as a participant
reduces the chance that an external group can collaborate to drive a particular
number through the RANDAO™ system
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Appendix B - Quanta Pay™ Interaction
How Quanta Pay™ Works
Quanta Pay app interacts with the user’s web browser or PWA over HTTP protocol and also provides Web Server within the app. This allows the app to feed with the following information:
• Ping - Responds on current status of the application (Is the service available, user logged in / not logged in, user has a wallet, user’s public address, etc.)
• Operator - Check if operator exists or not • Token - Get user’s token or Login • Balance - Get user’s balance • Send Transaction - Sign and send transaction into private network • Estimate Gas - Estimate gas fees for transaction • Sign - Sign a transaction object • Notification Subscribe - Request App to listen a notification topic
Common Process to Interact with Quanta Pay™
• Step 1 - Ping to check if Quanta Pay is running or not • Step 2 - Webpage handles response from Quanta Pay (Requires valid wallet, input
PIN, etc.) • Step 3 - Webpage requests access token from Quanta Pay
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New User Registration Diagram
New User Registration Process Step 1 - Webpage verifies to ensure Quanta Pay is running Step 2 - Webpage attempts to get token from Quanta Pay. Step 3 - Webpage renders Register UI Step 4 - Webpage requests to Authentication service to get “seed” Step 5 - Webpage requests to Quanta Pay to sign “seed” with user's private key Step 6 - Webpage submits user’s input as well as signed “seed” to Account Service Step 7 - Account service validates the signed seed (*) Step 8 - Account service stores users data in database, then send activation email to user.
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Login Diagram
Login Process Step 1 - PWA verifies to ensure Quanta Pay is opened Step 2 - PWA requests get token to Quanta Pay Step 3 - Quanta Pay checks if token exists on its local database
If token is available on Quanta Pay and not expired => respond to PWA If token is available on Quanta Pay, but expired =>request a refresh token => respond to PWA a new token
Step 4 - If token doesn’t exist => Quanta Pay requests to Authentication Service to get “seed” (param: “ETH address”) Step 5 - Quanta Pay signs transaction with the user’s private key and the “seed” Step 6 - Quanta Pay sends the signed “seed” to Authentication Service Step 7 - Authentication Service validates the signed “seed” Step 8 - Authentication Service responds the token to Quanta Pay
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Appendix C - QNTX Functions Description transferOwnership(address _newOwner)
• Description - Allows the current owner to transfer control of the smart contract to a new owner.
• Flow
- Change to new owner. - Emit event OwnershipTransferred(address indexed previousOwner, address indexed newOwner).
• Check #1: Sender is not owner - Throw exception.
transfer(address _to, uint _value)
• Description - Holder transfer their own tokens to another address. - This function can be called by GSN
• Flow
- Add to balance of receiver. - Subtract from balance of sender. - Emit event Transfer(address indexed from, address indexed to, uint value).
• Check #1: Address of receiver is 0x0 - Throw exception.
• Check #2: Balance of sender is not enough - Throw exception.
transferFrom(address _from, address _to, uint _value)
• Description - The person who are authorised can transfer tokens from the authorised address to another address. - This function can be called by GSN
• Flow
- Add to balance of receiver. - Subtract from balance of the authorised person. - Decrease the amount of tokens that the person who are authorised can transfer. - Emit event Transfer(address indexed from, address indexed to, uint value).
• Check #1: Address of receiver is 0x0
- Throw exception.
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• Check #2: Balance of _from is not enough - Throw exception.
• Check #3: Token amount which want to use is greater than authorised amount
- Throw exception. approve(address _spender, uint _value)
• Description - Token holder authorise another address to own a specific amount of their tokens. - This function can be called by GSN
• Flow
- Authorise another address to own a specific amount of tokens. - Emit event Approval(address indexed owner, address indexed spender, uint value).
• Check #1: _spender is 0x - Throw exception.
increaseAllowance(address _spender, uint _addedValue)
• Description - Token holder increase the amount of tokens that the person who are authorised can transfer.
• Flow
- Increase the amount of tokens that the person who are authorised can transfer. - Emit event Approval(address indexed owner, address indexed spender, uint value).
• Check #1: _spender is 0x - Throw exception.
decreaseAllowance(address _spender, uint _subtractedValue)
• Description - Token holder decrease the amount of tokens that the person who are authorised can transfer.
• Flow
- Decrease the amount of tokens that the person who are authorised can transfer. - Emit event Approval(address indexed owner, address indexed spender, uint value).
• Check #1: _spender is 0x - Throw exception.
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allowance(address _owner, address _spender)
• Description - Get the remaining amount of tokens that the person who are authorised can transfer.
balanceOf(address _account)
• Description - Get current balance of an account.
totalSupply()
• Description - Get total tokens that is issued.
approveAndCall(address _spender, uint256 _value, bytes memory _extraData)
• Description - Token holder authorise other smart contract to own a specific amount of their tokens. Then call that smart contract to performs some logic - This function can be called by GSN
• Flow
- Authorise other smart contract to own a specific amount of tokens. - Emit event Approval(address indexed owner, address indexed spender, uint value). - Call that smart contract to performs some logic
• Check #1: The target contract is not in list that allowed - Throw exception.
manageTargetContracts(address[] memory _targets, bool _remove)
• Description - Add or remove the target contracts in list that only contracts in that list the approveAndCall function is allowed to call
• Flow
- _remove = true: remove the specified target contracts out of list - Emit event TargetRemoved(address target) - _remove = false: add the specified target contracts to list - Emit event TargetAdded(address target)
• Check #1: caller is not owner - Throw exception.
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updateGsnFee(bytes4 _feeType, uint256 _newGsnFee)
• Description - Update QNTX fee that user has to pay when use GSN
• Flow
- Update fee by each transaction type - Emit event GSNFeeUpdated(bytes4 feeType, uint256 oldFee, uint256 newFee)
• Check #1: caller is not owner - Throw exception.
withdrawDeposits(address payable _payee, uint256 _amount)
• Description - Withraw ETH amount that QNTX agent staked in RelayHub when join GSN
• Flow
- Withdraw staked amount - Emit event DepositWithdrawed(address indexed receiver, uint256 amount)
• Check #1: caller is not owner - Throw exception.
withdrawGSNFee(address _payee, uint256 _amount)
• Description - Withraw QNTX amount that user paid when use GSN
• Flow
- Withdraw paid amount out of QNTX smart contract - Emit event GSNFeeWithdrawed(address indexed receiver, uint256 amount)
• Check #1: caller is not owner - Throw exception.
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Appendix D - Terms & Conditions and Other Sources Terms and conditions can be found at https://www.quanta.im/ Sources:
[1] GSM Association State of the Industry Report on Mobile Money 2018
[2] https://www.world-lotteries.org/media-news/publications/annual-reports
[3] www.scamwatch.gov.au/types-of-scams/unexpected-winnings/unexpected-prize-
lottery-scams