the aventus solution
TRANSCRIPT
The Aventus SolutionThe Aventus solution to the digital asset
problem
A number of industries and participants have adopted platforms like IBM’s Hyperledger over Ethereum because they cannot sacrifice scale or privacy.
However, at least in the proof-of-concept stage, they are prepared to sacrifice independence and accept lower levels of security than that afforded by Ethereum.
With the Aventus Protocol, there is no trade-off. Organisations are free to benefit from the combination of private and public Blockchains without the drawbacks.
The following chapter will introduce Aventus’ solution to the current problems of Blockchain technology. It will give you a high-level overview of the Aventus Protocol’s system architecture, how it is used, and how it will benefit digital asset issuers, managers, and owners.
The Aventus Protocol The Aventus Protocol is a Blockchain solution that combines the scale and privacy of private Blockchains with the security and independence of public chains.
It solves issues with scalability by taking transaction processing off-chain and uses cutting-edge ‘zero-knowledge proofs’ for privacy. The ultimate goal of the Aventus Protocol is to improve standardisation, trust, and security across value chains. It does this while lowering costs, reducing friction, and generating entirely new asset services. The following section will explain the protocol’s key functions and how they work.
A Layer 2 solution
The Aventus Protocol is what is known as a ‘Layer 2 Solution’.
This means that it is built on top of an existing public Blockchain network, in this case Ethereum. This layer 2 Solution processes transactions ‘off-chain’.
The purpose for this is to solve the scalability problems of Ethereum, while maintaining the benefits of security and independence.
This in itself is not new. To address the shortcomings of public Blockchains, various developer communities have moved to creating ‘Layer 2’ or, more accurately, ‘Execution Layer’ solutions.
In the case of Bitcoin, for example, Lightning has become the de-facto scaling solution. Initial implementations of these solutions tend to either be suboptimal rehashes of the base Blockchain, or are too specific to be commercially viable. Furthermore, a trade-off is evident between preserving the full security of the base Blockchain and transaction finality with high throughput.
The Aventus Protocol, however, is a cutting-edge Layer 2 solution with privacy considerations.
Description Example
A Layer 2 Solution is built on top of an existing Blockchain to improve scalability.
The Aventus Protocol is a secondary Blockchain solution which lets Aventus process transactions more efficiently, independent of the Ethereum Blockchain. This is known as ‘off-chain’ processing. Transactions are processed and verified more efficiently by Aventus Nodes (see section 3.2.2.1 Aventus Nodes).
They are then batched together into Aventus Blocks and sent to the Ethereum Blockchain where they are made public.
In this sense, Aventus is a Blockchain within a Blockchain.
Imagine Sally buys her Ed Sheeran tickets immediately upon launch.
The tickets she buys are transacted across the hypothetical Aventus Protocol in which the Layer 2 Solution does not exist.
Tickets usually sell out in minutes.
But this time, Ed Sheeran’s team are panicking, how can it be that they have only sold 10% of tickets?
Well, without the Layer 2 Solution to process transactions through nodes ‘off-chain’, the entire network could only process 100 tickets per second.
That means fans would have to wait hours for their tickets to be processed.
However, with the Layer 2 Solution, transactions are batched by Aventus Nodes and then sent to the Ethereum Blockchain.
This way, fans can buy tickets at true scale.
This means the Aventus Protocol can process transactions faster than a public Blockchain, while still preserving the properties of Ethereum where transactional information is made public.
This is where zero-knowledge proofs come in.
Zero-knowledge proofs and Sigma protocol for privacy
All transactions on the Aventus network can contain a private piece of information that can be verified, without disclosure, using a Sigma Protocol.
This can be anything the user wants to remain confidential. It can be as simple as their identity information, or a secret piece of information given from the vendor to the owner for the purpose of proving ownership. What’s more, the Sigma Protocol can let customers redeem their assets with a different vendor, e.g. in the case of loyalty cards.
The implementation of zero knowledge also minimises attack vectors concerning Aventus nodes, and asset distributors attempting to manipulate digital asset transactions.
In the case of tickets, we use zero knowledge proofs so that a ticket owner can prove they have the “barcode for entrance the door” data without having to show the barcode. This means you can prove you are the legitimate ticket owner without having to show the ticket. This helps ticket owners prove ownership without having to reveal private information. To achieve this, we use cryptographic primitives to link an owner to an asset in one direction.
Summary
Off-chain processing allows the Aventus Protocol to more quickly verify transactions while still benefiting from the security of the public Ethereum Blockchain. The processing is handled by Aventus Nodes, which batch transactions together before making them public.
More information: https://www.ibm.com/blogs/systems/storage-for-blockchain-and-modern- distributed-database-processing/ https://media.consensys.net/the-state-of-ethereum-layer-2-protocol-development-2- f22b2603abd6
The Aventus Protocol leverages zero- knowledge proofs (ZKPs) to address the problem of privacy on the Ethereum Blockchain.
The goal is to prove a statement without leaking extra information.
ZKP lets you prove you know something to someone without actually revealing the information. The term ‘zero knowledge’ originates from the fact that zero information about the secret is revealed, but the second verifier is rightfully convinced that the first party holds the information.
Why would you need to prove you know a secret without revealing it?
When you do not trust the other party but still need to persuade them that you know it.
On the Aventus Protocol, a user can choose to make certain parts of their transactions private by using a ZKP.
This could include, but is not limited to:
• Identity information • Transaction value • Asset details, etc.
Imagine the Ed Sheeran concert is 18+ due to explicit content. Sally needs to add her identity to the ticket she just bought as well as prove her age.
Naturally, he does not wish to share her name, address, and date of birth information publicly.
So she uses zero-knowledge proof over the Aventus Protocol.
Using zero-knowledge proof cryptography, she can prove to the verifier who she is and authenticate the transaction using a cryptographic fingerprint without having to reveal her age or identity information.
If Sally decides to sell the ticket, she can do so on a ticket reseller website.
Here, the ticket reseller and new ticket owner will require proof of Sally’s identity.
Using a zkp, Sally can prove her identity without having to reveal her driving licence, passport, or sensitive information directly.
Zero-knowledge proofs are an advanced form of cryptography that allows a ‘prover’ to prove a piece of information is true to a ‘verifier’ without revealing anything about the information.
On the Aventus Protocol, ZKPs are used to protect the privacy of transactions, and add another layer of security. By employing this system, the protocol allows users to transact assets secretly, while still ensuring that all transactions can be validated on the Blockchain. More information on Sigma protocols: http://www.cs.au.dk/~ivan/Sigma.pdf
The implementation of zero-knowledge also minimises possible ways that the network could be attacked, and prevents asset distributors from manipulating digital asset transactions by obscuring key information.
The decision to opt for the Sigma Protocol is because the Aventus use case is narrow enough such that generality is not required. It also allows for faster proof generation, which has allowed us to create a proof on a smartphone in less than one second.
If Sally decides to sell the ticket, she can do so on a ticket reseller website.
Here, the ticket reseller and new ticket owner will require proof of Sally’s identity.
Using a zkp, Sally can prove her identity without having to reveal her driving licence, passport, or sensitive information directly.
Our previous implementation of zk-SNARKs resulted in proof generation that was too slow on mobile devices, and produced expensive verification.
We will continue to explore other zero knowledge proofs as development of the Aventus Protocol advances.
Aventus combines the scale and privacy of permissioned Blockchains without trading off the security and independence benefits of public chains. We achieve this by employing a Layer 2 Solution that solves for scale, and uses cutting-edge zero knowledge proofs to solve for privacy.
Today, the Aventus Protocol can scale to thousands of transactions per second, and is completely GDPR compliant. In its current state, it preserves key components of decentralisation, with certain elements made open source. A future, full-release will be entirely decentralised and wholly open source.
With Aventus, myriad unknown participants can interact with each other without significant compromise on transaction finality and speed. We have done this by restricting our problem domain solely to digital asset exchange (issuance, transfer, and communication), which allows us to take shortcuts in computing and finalising state.
Recap
• The Aventus Protocol is a Layer 2 Solution. • This means it processes transactions via its own nodes, and then adds them to the
Ethereum Blockchain. • The reason it does this is to overcome the problem of scalability on Ethereum, while still
benefiting from its security and independence. • The problem of privacy is addressed by employing a type of cryptography known as zero-
knowledge proofs. • These proofs allow users to add confidential information to transactions without revealing
this information to the public, and while still allowing for the transaction to be publicly validated.
• The Sigma Protocol means users get their proof via their mobile in less than a second. • The ZKPs add another layer of security to the protocol.
The following section will introduce the Aventus Protocol’s network architecture, and explain how each element works to improve digital asset exchange.
Network architecture
The Aventus Protocol is split into three tiers, each of which is responsible for different functions of the network: • Tier 1: where the Aventus Protocol interacts with the Ethereum Blockchain. • Tier 2: where initial verification and transaction processing takes place. • Tier 3: where third parties create mobile and web applications that use the Aventus Protocol.
These three tiers, when combined, deliver fully on scalability, security, privacy and independence.
The following sections explore each tier in more depth.
Tier 1 — Ethereum Blockchain
Within Aventus’ architecture, the base-Blockchain is the ultimate adjudication and audit layer, and is where a participant in the ecosystem can objectively resolve any Tier 2 disputes.
A fully decentralised public Blockchain is a key attribute of Tier 1 as it delivers the highest degree of security and independence. This is crucial in industries such as ticketing, which are plagued by low trust. Tier 1 uses a combination of Merkle roots, adjudication, and governance processes to finalise asset transfers.
Description Example
A fully decentralised public Blockchain is a key attribute of Tier 1 as it delivers the highest degree of security and independence.
For this purpose, the Aventus Protocol uses the Ethereum Blockchain.
The consensus mechanism makes sure that the digital assets transacted aren't susceptible to fraud in the value chain.
This is why, when Ticketmaster and See Tickets are both selling Ed Sheeran tickets for The O2 — even though Ticketmaster has a long standing relationship with The O2 — See Tickets knows that they are getting an equal allocation of tickets with equal priority.
The Aventus Protocol uses Ethereum public Blockchain as its Tier 1 layer. This is because Ethereum offers high levels of security and independence. It creates a ‘trustless’ environment in which participants do not need to know each other nor have agreements in place.
More information: https://ethereum.org/
Merkle roots
Description Example
Asset transfers on the Aventus Protocol are handled in Tier 2, where they are processed into Aventus Blocks.
Merkle trees are a way of structuring data for efficient and secure verification (see section 3.2.2 Tier 2).
Inside these trees are the details of every asset transfer.
In Tier 1, the root of this tree (known as a Merkle root or the Aventus Block hash) is posted to the Ethereum Blockchain where it is made public.
The Merkle root is a hash value for all transactions that take place in its respective Tier 2 tree. This lets anyone verify the validity of a transaction by checking the hash value of the root rather than check each transaction individually.
Imagine Sally buys four Ed Sheeran tickets.
She gives one to Dan, and has two spare that she would like to give to another couple with whom they often spend time.
Unfortunately, the other couple is away on holiday, so Sally decides to sell the remaining two tickets.
The Aventus Protocol handles the transfer of the two tickets, where the transactions are processed into Merkle trees.
Inside these trees, you’ll find the details of every asset transfer.
This allows the new ticket holders, as well as the concert management staff, to verify ownership.
Adjudication
Summary Merkle trees are a way of structuring data that lets someone efficiently verify the information in the data set. In Tier 1, the root of this tree (the Merkle root), is posted publicly on the Ethereum Blockchain. In terms of digital assets, this means anyone can check the existence, ownership, and transfer of an asset at any given moment. Within the Aventus Protocol, a Merkle tree is an Aventus Block, and a Merkle root is an Aventus Block hash. More information: https://brilliant.org/wiki/merkle-tree/
Description Example
By posting these roots onto Ethereum, anyone can look up any transaction on the Aventus Protocol. This allows them to prove ownership and transfer an asset at any time.
What’s more, the concert management staff can do this at scale, with all 100,000 tickets, by checking the hash value rather than thousands of transactions one by one.
Description Example
Since asset transfers are processed privately on Tier 2 by Aventus Nodes (see section 3.2.2.1 Aventus Nodes), Tier 1 allows these transactions to be challenged publicly by posting them to the Ethereum Blockchain. If, for instance, a node on the Aventus Protocol tries to commit fraud, anyone can challenge their activity and prevent it being added to the ledger (see section 3.4.4.2 Challenging fraud on the Aventus Protocol).
In this sense, the Tier 1 Ethereum layer acts as the adjudicator before transactions are set in stone on the ledger.
Sally and Dan have been dating for a while when Sally discovers something terrifying about her new boyfriend.
He has been lying about the fact he likes Ed Sheeran. Sally is horrified, but the betrayal does not end there.
Dan has tried to sell the same concert tickets multiple times to make a little extra cash this month.
Dan runs an Aventus Node to manipulate transactions to try and sell the same concert tickets.
Discovering this, Sally challenges Dan’s data by posting them publicly to the Ethereum Blockchain. This proves that Dan was committing fraud, and his data is not added to the ledger.
Summary By posting the details of asset transfers publicly on the Ethereum Blockchain in Tier 1, it is easy to challenge and prevent fraudulent activity regarding asset transfer.
Governance
Description Example
Aventus employs a democratic voting system whereby every token holder has a vote in the rules that govern the system.
It is in Tier 1 where these governance parameters are set and maintained.
This includes defining rules around:
• How much AVT an Aventus node processing Aventus blocks needs to stake, or deposit, in AVT
• How long that deposit is held until it is released back, if no challenges occur
• How long people have to challenge transactions before they are deemed safe
These rules can be voted on and altered (via consensus) by AVT holders on a quarterly basis.
As such, the Aventus Protocol is adaptable and can change dependent user requirements.
Let us say Lucy, our Blockchain lover, wants to reduce the root deposit for a node to process a transaction from 300AVT to 200AVT so she can process more transactions from her node without tying up all her tokens.
Lucy then initiates a vote. The community votes in her favour, and the proposal passes.
Every token holder receives one vote per token they hold.
Those with a greater holding of AVT have a greater voting voice in the governance of the network.
Summary AVT token holders in Tier 2 vote on the governance of the protocol and require consensus to pass new rules that are maintained in the Tier 1 public Blockchain architecture. This ensures that the network is self regulating, fair for all participants, and can evolve as industries change.
Recap
• Tier 1 is what is known as the ‘open Blockchain adjudication layer’. • It is here that the data regarding asset transfers on the Aventus Protocol is posted publicly
to the Ethereum Blockchain. • This allows the existence, ownership, and transfer of an asset to be checked and proven at
any time. • It also allows fraudulent activity to be easily challenged and prevented. • Finally, it is in Tier 1 that network governance is determined. • This determines the ‘business logic’ of the protocol, i.e. how the network operates and
evolves over time.
Changes to the network are only passed if agreed upon by consensus by Aventus Nodes.
Tier 2 — The Aventus Network Layer
The Tier 2 layer deals with the initial verification and processing of transactions. It is where asset management platforms send transactions for processing by Aventus Nodes..
Aventus network nodes will function much like existing Blockchain networks today (e.g. Ethereum, Ripple etc.).
Aventus Nodes
Description Example
As with other Blockchains, the Aventus Protocol relies upon nodes to process transactions.
When a transaction takes place on an asset transfer platform (in Tier 3), it is sent to an Aventus Node for processing. This transaction is then forwarded on to the other nodes in the network, which creates a shared memory pool of unprocessed transactions. These transactions are combined into a Merkle tree for more efficient processing. The Merkle root of this tree is then posted to Tier 1, where the transactions are processed and made public on the Ethereum Blockchain. For creating these Merkle trees, the Aventus Nodes are rewarded financially (see section 3.4 Token economics).
Imagine Sally sells one of her spare Ed Sheeran tickets on a ticket resale website.
The website builds on the Aventus Protocol and is running a Tier 2 Aventus Node so it can forward its ticket resale transactions to the Aventus network.
The ticket sales are sent to other network nodes for verification which create a pool of unprocessed transactions.
They combine into an Aventus Block for quick and efficient processing, which is then posted to the Tier 1 Ethereum Blockchain where they are made public.
Although she might not understand how it happens, the sale of Sally’s ticket on the resale website is safe and secure — and possible at scale — because it passes through all three tiers.
Summary
Tier 2 is the Aventus layer. It is here that the nodes process and verify private transactions before being posted publicly to the Ethereum Blockchain. Tier 2 also connects Tier 1 and Tier 3 allowing for third party integrations.
Proof-of-authority consensus
Currently, the Aventus PoA network boasts tk X transactions per second at its theoretical limit, with a minimum confirmation time of tk X seconds. Confirmation times vary by digital asset type, since some (e.g. Ticketing) have a less stringent requirement on fast confirmation times than others (e.g. Loyalty).
Summary In Tier 2, the Aventus Nodes receive, process and validate transactions from asset transfer platforms. These transactions are batched up into Merkle trees for more efficient processing. Nodes are then selected ‘randomly’ in alignment with the Aventus Node Reputation System to achieve a consensus for validation. Finally, they send the Merkle root of these trees to Tier 1 where they are processed and made public.
Description Example
The Aventus Protocol currently uses a proof-of-authority consensus mechanism to maintain the ledger.
This means that the nodes responsible for updating the ledger are chosen based on their proven identity. In our case, these nodes are owned and operated by the Aventus Protocol Foundation and its partners. The protocol allows for full, public transparency of both incoming and processed transactions.
Nodes follow a deterministic schedule to propose blocks to the network by batching transactions into Merkle roots.
However, it is not truly decentralised and, therefore, independent. This decision was made to promote the protocol commercially, and create a testbed for the configuration of Aventus’ upcoming proof-of-stake network (see section 3.6 Future development). The full release of the Aventus Protocol will be completely decentralised.
Imagine that Lucy, our favourite Blockchain enthusiast, runs an Aventus Node.
To do so, she sold some Bitcoin to afford the stake in AVT tokens.
Lucy’s node has a high reputation score because she keeps the node up and has an excellent challenge history.
When Sally sells her Ed Sheeran ticket, Lucy’s node is one of those chosen to verify the transaction and add the transaction to the ledger.
From there, the nodes post the Merkle tree — containing Sally’s ticket transaction — to Ethereum.
In return, Lucy’s node earns a fraction of the processing fee.
Tier 3 — The SaaS and custom implementation layer
Building on top of the Tier 2 protocol layer is the Tier 3 client application domain, i.e software-as-a- service, web and mobile applications, etc.
Here, third parties can extend upon and monetise the key attributes of Aventus’ Tier 2 solution by developing bespoke solutions for clients operating in digital asset supply chains.
Software development kits (SDKs)
Description Example
A key part of Tier 3 is the Aventus SDKs. These tools allow third-party developers to easily create applications that utilise the Aventus Protocol.
If you’re familiar with coding, you can liken it to web applications. In the same way that HTML and HTTP can be used to build and deliver a variety of web applications, the powerful abstractions offered by Tier 2 can be used to serve a variety of clients’ needs.
To this end, we have started creating a family of SDKs that can support some interesting use cases, such as ticket delivery, a specific implementation of messaging (e.g. ticket communication), and rules-based inventory distribution.
The flexibility of the Aventus network gives clients the opportunity to experiment and discover yet more applications that leverage our Layer 2 Solution.
Lucy’s passion for Blockchain unleashes her entrepreneurial potential.
As well as being a node, she sees potential in the various SDKs she could build. She spends her evenings deciding which of the possibilities she should focus on first. She is not yet sure whether to build: • Dashboards and software tools for
issuing, transferring and redeeming assets.
• Global distribution networks in which allocations and digital asset rules are backed by the Blockchain.
• Powerful communication systems between asset issuers, vendors and current owners, where messages are encrypted and delivered via the Blockchain to the asset itself.
• Data analytics and visualisation tools to view and use the rich digital asset data sets found on the Blockchain.
• New marketing tools where micro- distribution, referrals, and affiliate sales are tracked independently and rewarded with micropayments based on preprogrammed rules.
Summary
Tier 3 is where anyone wishing to build something can interact with the Aventus Protocol. This could include, for example, asset issuer platforms, tech companies, marketing companies, or anyone who sees value. Software developers can use the Aventus development kits to produce all sorts of applications that can benefit from the integration of Blockchain.
Recap
• The Aventus Protocol is structured in 3 tiers. • Tier 1 creates a public record of asset transfers by adding transaction information to the
Ethereum Blockchain. • This allows assets to easily be tracked and traced at any given moment, and for fraud to
be identified and prevented via the auditability and security of Blockchain. • In Tier 2, the Aventus network nodes process transactions sent to them from third-party
platforms. • This increases the speed at which transfers can be normally processed on the public
Ethereum Blockchain. • In Tier 3, asset transfer platforms connect with the protocol via software development kits. • Developers can use these kits to create applications for better asset management by
integrating Blockchain.
Meet the four Aventus heroes
Meet Sally
Meet Dan
Meet Nigel
Meet Lucy
The time for the revolution of digital assets is now
3. Introduction to Blockchain
The value of digital assets
Oversight
Control
Communication
Event ticketing
Private Blockchains
Public Blockchains
The Aventus Protocol
Network architecture
Aventus Nodes
Proof-of-authority consensus
Software development kits (SDKs)
Features and benefits of the Aventus Protocol
Standardisation of digital asset ownership and redemption
Communication with the asset owner throughout the life of the digital asset
Better distribution networks
7. How it works
“ The Aventus Protocol opens digital assets up to more insightful analytics. ”
How the Aventus Protocol works
Asset creation
Asset issuance
Asset transfer
Asset redemption
Voting
Aventus network MVP: a proof-of-authority network
The Aventus proof-of-stake network
Aventus network history
Aventus development update
Aventus adoption update
A number of industries and participants have adopted platforms like IBM’s Hyperledger over Ethereum because they cannot sacrifice scale or privacy.
However, at least in the proof-of-concept stage, they are prepared to sacrifice independence and accept lower levels of security than that afforded by Ethereum.
With the Aventus Protocol, there is no trade-off. Organisations are free to benefit from the combination of private and public Blockchains without the drawbacks.
The following chapter will introduce Aventus’ solution to the current problems of Blockchain technology. It will give you a high-level overview of the Aventus Protocol’s system architecture, how it is used, and how it will benefit digital asset issuers, managers, and owners.
The Aventus Protocol The Aventus Protocol is a Blockchain solution that combines the scale and privacy of private Blockchains with the security and independence of public chains.
It solves issues with scalability by taking transaction processing off-chain and uses cutting-edge ‘zero-knowledge proofs’ for privacy. The ultimate goal of the Aventus Protocol is to improve standardisation, trust, and security across value chains. It does this while lowering costs, reducing friction, and generating entirely new asset services. The following section will explain the protocol’s key functions and how they work.
A Layer 2 solution
The Aventus Protocol is what is known as a ‘Layer 2 Solution’.
This means that it is built on top of an existing public Blockchain network, in this case Ethereum. This layer 2 Solution processes transactions ‘off-chain’.
The purpose for this is to solve the scalability problems of Ethereum, while maintaining the benefits of security and independence.
This in itself is not new. To address the shortcomings of public Blockchains, various developer communities have moved to creating ‘Layer 2’ or, more accurately, ‘Execution Layer’ solutions.
In the case of Bitcoin, for example, Lightning has become the de-facto scaling solution. Initial implementations of these solutions tend to either be suboptimal rehashes of the base Blockchain, or are too specific to be commercially viable. Furthermore, a trade-off is evident between preserving the full security of the base Blockchain and transaction finality with high throughput.
The Aventus Protocol, however, is a cutting-edge Layer 2 solution with privacy considerations.
Description Example
A Layer 2 Solution is built on top of an existing Blockchain to improve scalability.
The Aventus Protocol is a secondary Blockchain solution which lets Aventus process transactions more efficiently, independent of the Ethereum Blockchain. This is known as ‘off-chain’ processing. Transactions are processed and verified more efficiently by Aventus Nodes (see section 3.2.2.1 Aventus Nodes).
They are then batched together into Aventus Blocks and sent to the Ethereum Blockchain where they are made public.
In this sense, Aventus is a Blockchain within a Blockchain.
Imagine Sally buys her Ed Sheeran tickets immediately upon launch.
The tickets she buys are transacted across the hypothetical Aventus Protocol in which the Layer 2 Solution does not exist.
Tickets usually sell out in minutes.
But this time, Ed Sheeran’s team are panicking, how can it be that they have only sold 10% of tickets?
Well, without the Layer 2 Solution to process transactions through nodes ‘off-chain’, the entire network could only process 100 tickets per second.
That means fans would have to wait hours for their tickets to be processed.
However, with the Layer 2 Solution, transactions are batched by Aventus Nodes and then sent to the Ethereum Blockchain.
This way, fans can buy tickets at true scale.
This means the Aventus Protocol can process transactions faster than a public Blockchain, while still preserving the properties of Ethereum where transactional information is made public.
This is where zero-knowledge proofs come in.
Zero-knowledge proofs and Sigma protocol for privacy
All transactions on the Aventus network can contain a private piece of information that can be verified, without disclosure, using a Sigma Protocol.
This can be anything the user wants to remain confidential. It can be as simple as their identity information, or a secret piece of information given from the vendor to the owner for the purpose of proving ownership. What’s more, the Sigma Protocol can let customers redeem their assets with a different vendor, e.g. in the case of loyalty cards.
The implementation of zero knowledge also minimises attack vectors concerning Aventus nodes, and asset distributors attempting to manipulate digital asset transactions.
In the case of tickets, we use zero knowledge proofs so that a ticket owner can prove they have the “barcode for entrance the door” data without having to show the barcode. This means you can prove you are the legitimate ticket owner without having to show the ticket. This helps ticket owners prove ownership without having to reveal private information. To achieve this, we use cryptographic primitives to link an owner to an asset in one direction.
Summary
Off-chain processing allows the Aventus Protocol to more quickly verify transactions while still benefiting from the security of the public Ethereum Blockchain. The processing is handled by Aventus Nodes, which batch transactions together before making them public.
More information: https://www.ibm.com/blogs/systems/storage-for-blockchain-and-modern- distributed-database-processing/ https://media.consensys.net/the-state-of-ethereum-layer-2-protocol-development-2- f22b2603abd6
The Aventus Protocol leverages zero- knowledge proofs (ZKPs) to address the problem of privacy on the Ethereum Blockchain.
The goal is to prove a statement without leaking extra information.
ZKP lets you prove you know something to someone without actually revealing the information. The term ‘zero knowledge’ originates from the fact that zero information about the secret is revealed, but the second verifier is rightfully convinced that the first party holds the information.
Why would you need to prove you know a secret without revealing it?
When you do not trust the other party but still need to persuade them that you know it.
On the Aventus Protocol, a user can choose to make certain parts of their transactions private by using a ZKP.
This could include, but is not limited to:
• Identity information • Transaction value • Asset details, etc.
Imagine the Ed Sheeran concert is 18+ due to explicit content. Sally needs to add her identity to the ticket she just bought as well as prove her age.
Naturally, he does not wish to share her name, address, and date of birth information publicly.
So she uses zero-knowledge proof over the Aventus Protocol.
Using zero-knowledge proof cryptography, she can prove to the verifier who she is and authenticate the transaction using a cryptographic fingerprint without having to reveal her age or identity information.
If Sally decides to sell the ticket, she can do so on a ticket reseller website.
Here, the ticket reseller and new ticket owner will require proof of Sally’s identity.
Using a zkp, Sally can prove her identity without having to reveal her driving licence, passport, or sensitive information directly.
Zero-knowledge proofs are an advanced form of cryptography that allows a ‘prover’ to prove a piece of information is true to a ‘verifier’ without revealing anything about the information.
On the Aventus Protocol, ZKPs are used to protect the privacy of transactions, and add another layer of security. By employing this system, the protocol allows users to transact assets secretly, while still ensuring that all transactions can be validated on the Blockchain. More information on Sigma protocols: http://www.cs.au.dk/~ivan/Sigma.pdf
The implementation of zero-knowledge also minimises possible ways that the network could be attacked, and prevents asset distributors from manipulating digital asset transactions by obscuring key information.
The decision to opt for the Sigma Protocol is because the Aventus use case is narrow enough such that generality is not required. It also allows for faster proof generation, which has allowed us to create a proof on a smartphone in less than one second.
If Sally decides to sell the ticket, she can do so on a ticket reseller website.
Here, the ticket reseller and new ticket owner will require proof of Sally’s identity.
Using a zkp, Sally can prove her identity without having to reveal her driving licence, passport, or sensitive information directly.
Our previous implementation of zk-SNARKs resulted in proof generation that was too slow on mobile devices, and produced expensive verification.
We will continue to explore other zero knowledge proofs as development of the Aventus Protocol advances.
Aventus combines the scale and privacy of permissioned Blockchains without trading off the security and independence benefits of public chains. We achieve this by employing a Layer 2 Solution that solves for scale, and uses cutting-edge zero knowledge proofs to solve for privacy.
Today, the Aventus Protocol can scale to thousands of transactions per second, and is completely GDPR compliant. In its current state, it preserves key components of decentralisation, with certain elements made open source. A future, full-release will be entirely decentralised and wholly open source.
With Aventus, myriad unknown participants can interact with each other without significant compromise on transaction finality and speed. We have done this by restricting our problem domain solely to digital asset exchange (issuance, transfer, and communication), which allows us to take shortcuts in computing and finalising state.
Recap
• The Aventus Protocol is a Layer 2 Solution. • This means it processes transactions via its own nodes, and then adds them to the
Ethereum Blockchain. • The reason it does this is to overcome the problem of scalability on Ethereum, while still
benefiting from its security and independence. • The problem of privacy is addressed by employing a type of cryptography known as zero-
knowledge proofs. • These proofs allow users to add confidential information to transactions without revealing
this information to the public, and while still allowing for the transaction to be publicly validated.
• The Sigma Protocol means users get their proof via their mobile in less than a second. • The ZKPs add another layer of security to the protocol.
The following section will introduce the Aventus Protocol’s network architecture, and explain how each element works to improve digital asset exchange.
Network architecture
The Aventus Protocol is split into three tiers, each of which is responsible for different functions of the network: • Tier 1: where the Aventus Protocol interacts with the Ethereum Blockchain. • Tier 2: where initial verification and transaction processing takes place. • Tier 3: where third parties create mobile and web applications that use the Aventus Protocol.
These three tiers, when combined, deliver fully on scalability, security, privacy and independence.
The following sections explore each tier in more depth.
Tier 1 — Ethereum Blockchain
Within Aventus’ architecture, the base-Blockchain is the ultimate adjudication and audit layer, and is where a participant in the ecosystem can objectively resolve any Tier 2 disputes.
A fully decentralised public Blockchain is a key attribute of Tier 1 as it delivers the highest degree of security and independence. This is crucial in industries such as ticketing, which are plagued by low trust. Tier 1 uses a combination of Merkle roots, adjudication, and governance processes to finalise asset transfers.
Description Example
A fully decentralised public Blockchain is a key attribute of Tier 1 as it delivers the highest degree of security and independence.
For this purpose, the Aventus Protocol uses the Ethereum Blockchain.
The consensus mechanism makes sure that the digital assets transacted aren't susceptible to fraud in the value chain.
This is why, when Ticketmaster and See Tickets are both selling Ed Sheeran tickets for The O2 — even though Ticketmaster has a long standing relationship with The O2 — See Tickets knows that they are getting an equal allocation of tickets with equal priority.
The Aventus Protocol uses Ethereum public Blockchain as its Tier 1 layer. This is because Ethereum offers high levels of security and independence. It creates a ‘trustless’ environment in which participants do not need to know each other nor have agreements in place.
More information: https://ethereum.org/
Merkle roots
Description Example
Asset transfers on the Aventus Protocol are handled in Tier 2, where they are processed into Aventus Blocks.
Merkle trees are a way of structuring data for efficient and secure verification (see section 3.2.2 Tier 2).
Inside these trees are the details of every asset transfer.
In Tier 1, the root of this tree (known as a Merkle root or the Aventus Block hash) is posted to the Ethereum Blockchain where it is made public.
The Merkle root is a hash value for all transactions that take place in its respective Tier 2 tree. This lets anyone verify the validity of a transaction by checking the hash value of the root rather than check each transaction individually.
Imagine Sally buys four Ed Sheeran tickets.
She gives one to Dan, and has two spare that she would like to give to another couple with whom they often spend time.
Unfortunately, the other couple is away on holiday, so Sally decides to sell the remaining two tickets.
The Aventus Protocol handles the transfer of the two tickets, where the transactions are processed into Merkle trees.
Inside these trees, you’ll find the details of every asset transfer.
This allows the new ticket holders, as well as the concert management staff, to verify ownership.
Adjudication
Summary Merkle trees are a way of structuring data that lets someone efficiently verify the information in the data set. In Tier 1, the root of this tree (the Merkle root), is posted publicly on the Ethereum Blockchain. In terms of digital assets, this means anyone can check the existence, ownership, and transfer of an asset at any given moment. Within the Aventus Protocol, a Merkle tree is an Aventus Block, and a Merkle root is an Aventus Block hash. More information: https://brilliant.org/wiki/merkle-tree/
Description Example
By posting these roots onto Ethereum, anyone can look up any transaction on the Aventus Protocol. This allows them to prove ownership and transfer an asset at any time.
What’s more, the concert management staff can do this at scale, with all 100,000 tickets, by checking the hash value rather than thousands of transactions one by one.
Description Example
Since asset transfers are processed privately on Tier 2 by Aventus Nodes (see section 3.2.2.1 Aventus Nodes), Tier 1 allows these transactions to be challenged publicly by posting them to the Ethereum Blockchain. If, for instance, a node on the Aventus Protocol tries to commit fraud, anyone can challenge their activity and prevent it being added to the ledger (see section 3.4.4.2 Challenging fraud on the Aventus Protocol).
In this sense, the Tier 1 Ethereum layer acts as the adjudicator before transactions are set in stone on the ledger.
Sally and Dan have been dating for a while when Sally discovers something terrifying about her new boyfriend.
He has been lying about the fact he likes Ed Sheeran. Sally is horrified, but the betrayal does not end there.
Dan has tried to sell the same concert tickets multiple times to make a little extra cash this month.
Dan runs an Aventus Node to manipulate transactions to try and sell the same concert tickets.
Discovering this, Sally challenges Dan’s data by posting them publicly to the Ethereum Blockchain. This proves that Dan was committing fraud, and his data is not added to the ledger.
Summary By posting the details of asset transfers publicly on the Ethereum Blockchain in Tier 1, it is easy to challenge and prevent fraudulent activity regarding asset transfer.
Governance
Description Example
Aventus employs a democratic voting system whereby every token holder has a vote in the rules that govern the system.
It is in Tier 1 where these governance parameters are set and maintained.
This includes defining rules around:
• How much AVT an Aventus node processing Aventus blocks needs to stake, or deposit, in AVT
• How long that deposit is held until it is released back, if no challenges occur
• How long people have to challenge transactions before they are deemed safe
These rules can be voted on and altered (via consensus) by AVT holders on a quarterly basis.
As such, the Aventus Protocol is adaptable and can change dependent user requirements.
Let us say Lucy, our Blockchain lover, wants to reduce the root deposit for a node to process a transaction from 300AVT to 200AVT so she can process more transactions from her node without tying up all her tokens.
Lucy then initiates a vote. The community votes in her favour, and the proposal passes.
Every token holder receives one vote per token they hold.
Those with a greater holding of AVT have a greater voting voice in the governance of the network.
Summary AVT token holders in Tier 2 vote on the governance of the protocol and require consensus to pass new rules that are maintained in the Tier 1 public Blockchain architecture. This ensures that the network is self regulating, fair for all participants, and can evolve as industries change.
Recap
• Tier 1 is what is known as the ‘open Blockchain adjudication layer’. • It is here that the data regarding asset transfers on the Aventus Protocol is posted publicly
to the Ethereum Blockchain. • This allows the existence, ownership, and transfer of an asset to be checked and proven at
any time. • It also allows fraudulent activity to be easily challenged and prevented. • Finally, it is in Tier 1 that network governance is determined. • This determines the ‘business logic’ of the protocol, i.e. how the network operates and
evolves over time.
Changes to the network are only passed if agreed upon by consensus by Aventus Nodes.
Tier 2 — The Aventus Network Layer
The Tier 2 layer deals with the initial verification and processing of transactions. It is where asset management platforms send transactions for processing by Aventus Nodes..
Aventus network nodes will function much like existing Blockchain networks today (e.g. Ethereum, Ripple etc.).
Aventus Nodes
Description Example
As with other Blockchains, the Aventus Protocol relies upon nodes to process transactions.
When a transaction takes place on an asset transfer platform (in Tier 3), it is sent to an Aventus Node for processing. This transaction is then forwarded on to the other nodes in the network, which creates a shared memory pool of unprocessed transactions. These transactions are combined into a Merkle tree for more efficient processing. The Merkle root of this tree is then posted to Tier 1, where the transactions are processed and made public on the Ethereum Blockchain. For creating these Merkle trees, the Aventus Nodes are rewarded financially (see section 3.4 Token economics).
Imagine Sally sells one of her spare Ed Sheeran tickets on a ticket resale website.
The website builds on the Aventus Protocol and is running a Tier 2 Aventus Node so it can forward its ticket resale transactions to the Aventus network.
The ticket sales are sent to other network nodes for verification which create a pool of unprocessed transactions.
They combine into an Aventus Block for quick and efficient processing, which is then posted to the Tier 1 Ethereum Blockchain where they are made public.
Although she might not understand how it happens, the sale of Sally’s ticket on the resale website is safe and secure — and possible at scale — because it passes through all three tiers.
Summary
Tier 2 is the Aventus layer. It is here that the nodes process and verify private transactions before being posted publicly to the Ethereum Blockchain. Tier 2 also connects Tier 1 and Tier 3 allowing for third party integrations.
Proof-of-authority consensus
Currently, the Aventus PoA network boasts tk X transactions per second at its theoretical limit, with a minimum confirmation time of tk X seconds. Confirmation times vary by digital asset type, since some (e.g. Ticketing) have a less stringent requirement on fast confirmation times than others (e.g. Loyalty).
Summary In Tier 2, the Aventus Nodes receive, process and validate transactions from asset transfer platforms. These transactions are batched up into Merkle trees for more efficient processing. Nodes are then selected ‘randomly’ in alignment with the Aventus Node Reputation System to achieve a consensus for validation. Finally, they send the Merkle root of these trees to Tier 1 where they are processed and made public.
Description Example
The Aventus Protocol currently uses a proof-of-authority consensus mechanism to maintain the ledger.
This means that the nodes responsible for updating the ledger are chosen based on their proven identity. In our case, these nodes are owned and operated by the Aventus Protocol Foundation and its partners. The protocol allows for full, public transparency of both incoming and processed transactions.
Nodes follow a deterministic schedule to propose blocks to the network by batching transactions into Merkle roots.
However, it is not truly decentralised and, therefore, independent. This decision was made to promote the protocol commercially, and create a testbed for the configuration of Aventus’ upcoming proof-of-stake network (see section 3.6 Future development). The full release of the Aventus Protocol will be completely decentralised.
Imagine that Lucy, our favourite Blockchain enthusiast, runs an Aventus Node.
To do so, she sold some Bitcoin to afford the stake in AVT tokens.
Lucy’s node has a high reputation score because she keeps the node up and has an excellent challenge history.
When Sally sells her Ed Sheeran ticket, Lucy’s node is one of those chosen to verify the transaction and add the transaction to the ledger.
From there, the nodes post the Merkle tree — containing Sally’s ticket transaction — to Ethereum.
In return, Lucy’s node earns a fraction of the processing fee.
Tier 3 — The SaaS and custom implementation layer
Building on top of the Tier 2 protocol layer is the Tier 3 client application domain, i.e software-as-a- service, web and mobile applications, etc.
Here, third parties can extend upon and monetise the key attributes of Aventus’ Tier 2 solution by developing bespoke solutions for clients operating in digital asset supply chains.
Software development kits (SDKs)
Description Example
A key part of Tier 3 is the Aventus SDKs. These tools allow third-party developers to easily create applications that utilise the Aventus Protocol.
If you’re familiar with coding, you can liken it to web applications. In the same way that HTML and HTTP can be used to build and deliver a variety of web applications, the powerful abstractions offered by Tier 2 can be used to serve a variety of clients’ needs.
To this end, we have started creating a family of SDKs that can support some interesting use cases, such as ticket delivery, a specific implementation of messaging (e.g. ticket communication), and rules-based inventory distribution.
The flexibility of the Aventus network gives clients the opportunity to experiment and discover yet more applications that leverage our Layer 2 Solution.
Lucy’s passion for Blockchain unleashes her entrepreneurial potential.
As well as being a node, she sees potential in the various SDKs she could build. She spends her evenings deciding which of the possibilities she should focus on first. She is not yet sure whether to build: • Dashboards and software tools for
issuing, transferring and redeeming assets.
• Global distribution networks in which allocations and digital asset rules are backed by the Blockchain.
• Powerful communication systems between asset issuers, vendors and current owners, where messages are encrypted and delivered via the Blockchain to the asset itself.
• Data analytics and visualisation tools to view and use the rich digital asset data sets found on the Blockchain.
• New marketing tools where micro- distribution, referrals, and affiliate sales are tracked independently and rewarded with micropayments based on preprogrammed rules.
Summary
Tier 3 is where anyone wishing to build something can interact with the Aventus Protocol. This could include, for example, asset issuer platforms, tech companies, marketing companies, or anyone who sees value. Software developers can use the Aventus development kits to produce all sorts of applications that can benefit from the integration of Blockchain.
Recap
• The Aventus Protocol is structured in 3 tiers. • Tier 1 creates a public record of asset transfers by adding transaction information to the
Ethereum Blockchain. • This allows assets to easily be tracked and traced at any given moment, and for fraud to
be identified and prevented via the auditability and security of Blockchain. • In Tier 2, the Aventus network nodes process transactions sent to them from third-party
platforms. • This increases the speed at which transfers can be normally processed on the public
Ethereum Blockchain. • In Tier 3, asset transfer platforms connect with the protocol via software development kits. • Developers can use these kits to create applications for better asset management by
integrating Blockchain.
Meet the four Aventus heroes
Meet Sally
Meet Dan
Meet Nigel
Meet Lucy
The time for the revolution of digital assets is now
3. Introduction to Blockchain
The value of digital assets
Oversight
Control
Communication
Event ticketing
Private Blockchains
Public Blockchains
The Aventus Protocol
Network architecture
Aventus Nodes
Proof-of-authority consensus
Software development kits (SDKs)
Features and benefits of the Aventus Protocol
Standardisation of digital asset ownership and redemption
Communication with the asset owner throughout the life of the digital asset
Better distribution networks
7. How it works
“ The Aventus Protocol opens digital assets up to more insightful analytics. ”
How the Aventus Protocol works
Asset creation
Asset issuance
Asset transfer
Asset redemption
Voting
Aventus network MVP: a proof-of-authority network
The Aventus proof-of-stake network
Aventus network history
Aventus development update
Aventus adoption update