Flairrcoin White Paper


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Abstract

Flairrcoin (flr) is a feeless, superfast, energy-efficient, distributed cryptocurrency (i.e. digital utility token) utilizing the block-lattice architecture based on DAG technology. With a block-lattice structure, each account on the network will have its own blockchain rather than sharing a single chain. This structure allows for instant transactions and the ability to easily update the network. Flairrcoin has inherited these features from Nano, but it builds on it and expands its capabilities to become the medium of exchange in a two-sided marketplace consisting of individual users and businesses.  We have developed the capabilities that allow businesses to seamlessly connect and integrate their IT systems with our network in which Flairrcoin will act as the bloodline that facilitates transactions among all members.

 

1. Introduction

Blockchain is a technology that was described by a group of researchers in 1991 with the intention of time-stamping digital documents to make them tamper-proof. This idea went mostly unused until the surfacing of Bitcoin [1]. Since its implementation, many new cryptocurrencies have been created and released, each with a different take on implementing the blockchain technology, which utilizes cryptography and the internet to allow for fast, secure, and decentralized transactions [2]. Essentially, the concept is to store the records of transactions on blocks that are created by solving a cryptographic puzzle; newer blocks confirm previous ones and the resulting ledger of blocks is distributed and updated by every node or user that participates in the network [3]. This process creates a decentralized ledger of transactions that every network participant can trust and use, hence eliminating the need for a centralized record-keeping entity. However, despite its groundbreaking role, the blockchain structure has inherent limitations and deficiencies [4] that have led to the creation of more advanced alternatives such as the Directed Acyclic Graph (DAG) system and architectures derived from it [5]. The Block-lattice system is one of the major architectures among these newer technologies  [6].

 

As a better alternative to the blockchain structure, the Block-lattice system can achieve near instant transaction times with unlimited scalability, near zero transaction fees, and cost-efficiency due to its low energy consumption protocol [6] . These criteria led us to fork from Nano, a DAG-based Block-lattice system, as the basis for Flairrcoin. We then developed features and capabilities that make Flairrcoin suitable and convenient to use for both individual users and businesses.

 

Individual users would be able to have personal digital wallets (Flairr Wallets) as well as the Flairr App, which is both a marketplace and a game hub with multiple games, that users may play individually or together as multiplayer games. Users can earn Flairrcoin in each game and can also spend them on real goods/services in the app’s marketplace.

 

For businesses, a platform has been developed which comprises of a business digital wallet and a Partner App. The digital wallet enables businesses to manage and store their cryptocurrency, add employees to their account and give them different access levels. It also allows them to connect their IT systems to the Flairr Business Platform for more automated and seamless business transactions. The Flairr Business Platform would also give businesses the capability to post ads or offers of goods/services on the network. Furthermore, businesses can engage in business-to-business transactions (using Flairrcoin as the medium of exchange) with their peers and use the Flairr Business Platform to buy, sell, or promote any goods or services.

 

3. Flairr Ecosystem & Network

The original implementation of Bitcoin introduced the idea of a modern digital currency that is based on cryptography [1], but as the protocol became popular and its network became populated, some inherent flaws came to light. Bitcoin transactions are not quick or instant; they take over an hour which means that the currency is not ideal for certain uses. It is also very expensive in terms of power consumption, as the network consumes high amounts of energy in mining compared to newer protocols. Bitcoin has also matured to a point where scalability has become a problem. On top of slow transaction speeds, there are expensive fees that users must pay— its saturation has made spots on a block valuable enough to charge an average of $10 for a transaction.

 

Flairr [*] is our solution to these problems. It is an ecosystem built on Block-lattice technology [7], consisting of several mobile apps, a set of business-related APIs called Flairr Business Platform, and a new cryptocurrency called Flairrcoin, all connected in Flairr Network. Flairr is developed by Dr. Ray Aria, a computer science faculty at the University of Central Florida, and his team at Flairr Labs. Flair Labs is a technology start-up which is based at the University of Central Florida’s Business Incubator.

 

Flairr has a protocol that can be run on low-power hardware (e.g., mobile devices). The network achieves this by having a different approach to consensus than what other regular Blockchain-based currencies like Bitcoin or Ethereum do; it uses a Proof of Stake (PoS) protocol where the participants vote on the current state of the ledger, and their voting weight is equivalent to the amount of cryptocurrency they own.

 

There are numerous specific APIs that have been designed and developed to facilitate the business and personal use of Flairr Network. As a result, Flairr improves upon and is substantially different from Nano in terms of capabilities, purpose, and technology, even though the base of its technology has been forked from it. We have also developed specific capabilities that enable Flairr to accept other types of Blockchain-based cryptocurrencies (e.g., Bitcoin, Ethereum, etc.).

 

Our ecosystem consists of Flairr app, Flair Partner app, Flairr wallet app, Flairr Business Wallet app, and a web app called Flairr Vault. This ecosystem has already been developed after two years of hard work and will be the infrastructure on which Flairr network is being built. Flairr network is the collection of individual users who can earn Flairrcoin in Flairr app and use them to partially pay for attractive offers that our business partners will make available in the Flairr Network. With the infrastructure in place, we are now starting to launch Flairr app and Flairr Wallet app and acquiring new users. After reaching a certain mass, we will also launch Flairr Partner and Flairr Business Wallet apps which will connect businesses to our ecosystem.

 

With our entire ecosystem operational, we will have a two-sided market in which users can earn Flairrcoin by completing tasks, overcoming challenges, or playing games in Flairr app and use those coins to buy and partially pay for attractive offers, which nearby businesses may post in the app.

 

Flairr’s main goal is to enable individual users and businesses to connect and use cryptocurrencies for everyday transactions in a way that both sides will benefit from a direct and localized relationship. However, the success of Flairr Network will strictly depend on our collective efforts (i.e., Flairr, Flairr users, and Flairr business partners):

 

  • Flairr will play its role by providing an infrastructure based on a superior new technology, as well as the benefits it provides for the business partners and users.
  • Businesses will post attractive and usable offers in the network and add value to the users’ lives.
  • Users will play games, complete tasks, or overcome challenges, and earn Flairrcoin in the process. Later, they may use the earned Flairrcoin to purchase posted offers.

 

3. Flairrcoin

Flairrcoin is an advanced new cryptocurrency (i.e. digital utility token) based on the Block-Lattice technology that is feeless, superfast, reliable, energy-efficient and quantum-proof, unlike its older predecessor (i.e. Blockchain) on which Bitcoin has been built. Flairrcoin is pre-mined, with a fixed supply of 384 x 1015 and will be mainly distributed through Flair app.

Flairrcoin is NOT real money, NOR anything equivalent to real money. It is also NOT a get-rich-quick scheme, NOR any type of securities, to be used for investment purposes. Instead, Flairrcoin is an advanced digital utility token, built on a reliable technology as well as a viable business model that will facilitate business transactions, and provide consumers (users) with saving(s), when they shop on Flairr network.

 

3.1 Flairrcoin Denominations

Flairrcoin has other denominations in the network as following:

 

  • Flairrcoin (flr): It is the base and the most used denomination in the network which is made up of (1e24) smaller denominations called Raw (raw).
  • K-Flairrcoin (kflr): 1 kflr = 1000 flr, or 1 kflr = (1e3) flr
  • Mega-Flairrcoin (FLR): 1FLR = (1e6) flr, or 1 FLR = (1e3) kflr
  • Raw (raw): 1 flr = (1e24) raw

 

3.2 Flairrcoin Distribution Channels

3.2.1 Pre-registration and Invitation Rewards

The initial distribution of Flairrcoin will be done through pre-registration. The users who pre-register for our Flairr App launch will receive a certain number of Flairrcoin for free as a reward. Any individual who invites other people to download and register Flairr app, as well as their invitees, will receive a certain number of Flairrcoin, as a reward.

 

3.2.2 Ambassadorship Program

Flairr Ambassadors are tech-savvy individuals who are interested in cryptocurrencies and are eager to play a role in shaping its future and be rewarded by Flairrcoin in the process. Flairr Ambassadors will be rewarded for their help in promoting Flairr app, Flairr Wallet and Flairrcoin before, during, and after its launch, and raising public awareness about us and our products and services.

 

3.2.3 Distribution in the Flairr App

Flairr App will be the main source of distributing Flairrcoin, after the other two mentioned above. The app will distribute Flairrcoin as rewards, for completing a variety of tasks, overcoming challenges, or playing games.

 

4. A Cryptocurrency for Business

We have especially designed Flairrcoin with business users in mind; we have developed a business digital wallet to be specifically used by our business partners (merchants & vendors). While a personal wallet is accessible by the owner alone, the business wallet provides access to multiple people with different access levels and permissions.

 

It also provides approval procedures for the managers, so no one can use the wallet or the coins without proper permission or approval. In addition, the Flairr Network is designed to accept other types of cryptocurrencies such as Bitcoin, and Ethereum, which will be added over time, and eventually contribute to our success. We have built an API Interface that allows our business partners to seamlessly connect their IT systems (Accounting, ERP, e-commerce, etc.) to the Flairr network and enjoy faster, safer, more secure, and more reliable transactions than any blockchain-based cryptocurrency (e.g., Bitcoin, etc.).

 

5. Network Specifications

5.1 Block-lattice

Block-lattice is a version of a Directed Acyclic Graph (DAG) network that aims to fix the problem of slow transactions which results from the heavy processing needed for regular blockchain mining. In this block-lattice structure, the nodes hold a single transaction and for that transaction to be submitted to the ledger for verification, that node must have verified the two previous transactions. This process allows the network to be infinitely scalable and achieve instant transactions once the network reaches a certain size. Each node also has its own blockchain. Each block in a node’s blockchain will hold a single transaction from that node. Thus, each node will have a blockchain that contains its full transaction history [7].

 

5.2 Flairr Accounts & Apps

We offer the following types of accounts and apps for earning and spending Flairrcoin as well as safekeeping it.

 

5.2.1 Flairr App

Flairr App is a mobile app that individual users can download on both Android and iOS devices. The app contains a game hub that currently contains two games, with a third game being developed, and more games (including third party games) are planned to be added in the future.

 

Users may earn Flairrcoin when they play and win in any of these games in either single or multi-player modes. Users may also earn coins by completing specific assignments, tasks, or overcoming challenges. The app also gives users access to their Flairr Wallet account. This integration allows earned cryptocurrencies to be automatically deposited into a user’s Flairr Wallet while enabling users to spend them on goods or services. However, users cannot transfer their coins to other individuals within the Flairr App. Such transactions can only take place within the Flairr Wallet.

 

In addition, the app also contains a marketplace in which users can find attractive offers from nearby businesses. Offers from businesses will be made available in the app during Phase 2 of our Deployment plan, and users will be able to partially pay for their purchases using the Flairrcoin they have earned.

 

5.2.2 Flairr Wallet

Flairr Wallet is a secure personal mobile app that allows people to keep and use their Flairrcoin. Individuals can use their coins to buy goods or services, send them to other wallets. Creating a Flairr Wallet account requires a valid phone number and a valid email, and the wallet is easy to use. There are also a variety of security measures in place to ensure the safe storage of Flairrcoin in this wallet.

 

5.2.3 Flairr Partner

Flairr Partner is a mobile app for both Android and iOS devices that only our business partners will use to post offers on the network. The posted offers will be viewable by individual users or businesses. Flairr Partner app also provides the business version of Flairr Wallet to our partners. Flairr Business Wallet is the business version of the Flairr wallet that allows our business partners to do transactions in Flairrcoin. The Business Wallet has special features such as multiple access levels (for employees in different roles) that is necessary for businesses to be able to accept cryptocurrencies in their transactions.

 

5.2.4 Flairr Vault

Flairr Vault is a secure web-based wallet that uses long-string public and private keys to safely store users’ Flairrcoin. It employs a variety of security measures to keep funds safe and is one of the most secure ways of storing Flairrcoin online. However, Flairrcoin cannot be spent/used on the offers (on the network) while they are stored in Flairr Vault. To use them, users must transfer their Flairrcoin to a Flairr Wallet first.

 

5.3 Business API Interface

The Business API Interface is a set of APIs developed specifically for our business partners. It enables our partners to connect their own IT systems (accounting, advertising, etc.) to the Flairr network and enables them to interact with the network by posting offers, accepting, sending, and/or trading Flairrcoin.

 

5.4 FlairrNodes

A FlairrNode (i.e., Flairrcoin node) is software that is running on machines that participate in the Flairrcoin network. The node keeps either the entire ledger of the network (P-FlairrRep or FlairrRep) or a pruned history of the accounts (NV-FlairrRep). It also holds the accounts that it has control over. Any person or entity can set up a node and participate in the network. The following are types of nodes in the Flairr Network.

 

5.4.1 Flairr Representative Node (FlairrRep)

FlairrRep is a FlairrNode that is setup to vote on the network. If a FlairrRep has less than 0.1% of online voting weight delegated to it (read Proof of Stake), it would be a Flairr Representative node. These nodes will validate and vote on transactions on the network; however, other nodes on the network will not rebroadcast their votes [8].

 

5.4.2 Flairr Principal Representative Node (P-FlairrRep)

Any FlairrRep holding at least 0.1% (or more) of voting weight, is called P-FlairrRep. A P-FlairrRep participates more broadly in shaping network consensus because they send votes to their peers which are subsequently rebroadcast. These nodes have the most impact to the security and availability of the network [8].

 

5.4.3 Flairr Non-voting Representative Node (NV-FlairrRep)

A FlairrNode may be configured as a non-voting node; such nodes would not have the capability to participate in voting on transactions. This type of node is common and is mostly used for integration and security purposes of the network [8].

 

5.5 Proof-of-Stake (PoS)

The network uses the Proof of Stake (PoS) protocol. This means that the more cryptocurrency an account has, the more voting weight it will have. As a result, individuals with a higher financial investment in the Flairr Network and Flairrcoin, will have more power and influence, and thus they will want to keep the network honest. Using the PoS protocol also means that no active mining is required; instead, all the cryptocurrency is set at its genesis and then distributed through different faucets, including the Flairr App, Coin-Sale Events, etc. Using Flairr App will be the alternative to active mining which will allow users to earn more coins.

5.6 Proof-Of-Work (PoW)

We use a small version of the PoW algorithm that is used in Bitcoin. It requires substantially less computation and is only utilized as an anti-spam measure. It also contributes to the verification of transactions.

 

5.7 Voting

To reach consensus, the network has accounts that are representatives with voting rights to confirm transactions. Users can choose which representatives (P-FlairrRep or Flairr-Rep) they want to vote on their behalf, and representatives vote on conflicts to keep the network honest.

 

5.8 Transaction Verification

Since the network is DAG-based, transactions will be verified by the nodes themselves; however, a transaction is only valid if it is verified by two voting nodes. With this methodology, transaction speeds in the network will remain high regardless of how large it gets. This architecture eliminates the need for expensive machines to verify transactions [9].

 

5.9 A Decentralized Crypto Network

At the very beginning when there are not many FlairrNodes on the network, Flairrcoin is going to be launched as a centralized cryptocurrency to maintain the security of its users and the integrity of the network.  Any business partner joining Flairrcoin must contribute at least one and up to 100 FlairrNodes to the network. The FlairrNodes that are run by partner businesses will be designated as Safe FlairrNodes. When the number of Safe FlairrNodes on the network reaches 1000, the network will be opened to the public and it will be fully decentralized. At that point, anyone can have a FlairrNode on the network from anywhere in the world.

 

5.10 Attacks to Decentralized Networks

After becoming a decentralized cryptocurrency network, Flairrcoin is potentially vulnerable to two specific types of attacks. Transaction flooding is a type of attack where a party sends a large number of transactions with the intent of saturating the network and causing it to crash. Another type of attack is the > 50% attack. In this type of attack, a malicious party gets hold of more than 50% of the cryptocurrency supply which would give them complete voting control over the network because of Flairrcoin’s Proof of Stake protocol.

 

There are also other types of attacks to which Flairrcoin may be susceptible. However, various types of measures have been implemented on FlairrNodes to deal with such threats, including a mandatory Firewall, IDS, Obfuscation, and more.

 

6. Flairr Deployment Plan

Our ecosystem of apps and their native cryptocurrency has been fully developed. The following are the phases of deployment for Flairr.

 

6.1 Phase 1

In phase 1 of deployment, we will make Flairr app and Flairr Wallet available on both Apple Appstore and Google Play in the summer of 2021. Users will receive Flairrcoin immediately after performing any tasks, or playing and winning any game in Flairr app.

 

6.2 Phase 2

In the second phase of deployment, Flairr will sign contracts with different business partners to join the network. Over time, more and more businesses will join and make the network stronger. Businesses can post offers through the Flairr Partner app or the Flairr Business API Interface. The offers will be visible to the users in the marketplace section of Flairr app as well as Flairr Wallet app.

 

However, users will only see offers from businesses that are reachable (either geographically or otherwise) for them. Users may choose to use these offers and will be able to pay a percentage of the price in Flairrcoin. We intend to increase the portion payable with Flairrcoin over time as the circulation of Flairrcoin in this two-sided market increases. The ultimate goal is for users to be able to pay for their purchases 100% with cryptocurrency.

 

6.3 Phase 3

In phase 3 of deployment, businesses can also advertise to users in their geographical vicinity. We aim to avoid any intrusive advertising on our platform and ensure that ads remain relevant and create value for our users.

 

 

References

[*] Flairr is a homonym of the English word “Flair”, which means “talent, style, and unique attractiveness.” It represents the advanced features of our cryptocurrency that differentiate it from all Blockchain-based cryptos.

[1]          S. Nakamoto, “Bitcoin: A Peer-to-peer Electronic Cash System,” Bitcoin.org, 2008. [Online]. Available: http://bitcoin.org/bitcoin.pdf.

[2]          M. Saad and A. Mohaisen, “Towards characterizing blockchain-based cryptocurrencies for highly-accurate predictions,” INFOCOM 2018 – IEEE Conf. Comput. Commun. Work., pp. 704–709, 2018.

[3]          R. Beck, J. Stenum Czepluch, N. Lollike, and S. Malone, “Blockchain – The gateway to trust-free cryptographic transactions,” 24th Eur. Conf. Inf. Syst. ECIS 2016, pp. 1–14, 2016.

[4]          A. Ghosh, S. Gupta, A. Dua, and N. Kumar, “Security of Cryptocurrencies in blockchain technology: State-of-art, challenges and future prospects,” J. Netw. Comput. Appl., vol. 163, p. 102635, 2020.

[5]          F. M. Benčić and I. P. Žarko, “Distributed Ledger Technology: Blockchain Compared to Directed Acyclic Graph,” Proc. – Int. Conf. Distrib. Comput. Syst., vol. 2018-July, pp. 1569–1570, 2018.

[6]          C. LeMahieu, “Nano: A Feeless Distributed Cryptocurrency Network,” White Pap., p. 8, 2018.

[7]          “Nanoo Tools.” [Online]. Available: https://nanoo.tools/state-blocks-guide.

[8]          “Running a Node Overview.” [Online]. Available: https://docs.nano.org/running-a-node/overview/.

[9]          “Nano Block Lattice Explained,” 2018. [Online]. Available: https://www.mycryptopedia.com/nano-block-lattice-explained/.

[1] Flairr is a homonym of the English word “Flair”, which means “talent, style, and unique attractiveness.” It represents the advanced features of our cryptocurrency that differentiate it from all Blockchain-based cryptos.