Flairrcoin White Paper


Version 1.1

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Abstract

Flairrcoin (flr) is a feeless, instant, distributed cryptocurrency utilizing the block-lattice architecture based on DAG technologies. 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 Flairrcoins 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.

 

2. What is Flairr Network and Flairrcoin?

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 a network built on Block-lattice technology that includes Flairrcoin, Flairr Business Platform and three different mobile apps, which will be explained later. Flairr has a protocol that can be run on low-power hardware. 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 the 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.

 

3. 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, 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.).

 

4. Flairrcoin Specifications

4.1 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].

 

4.2 Flairrcoin Denominations

Flairrcoin is the main coin on the network. However, there are 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’s(raw).
  • K-Flairrcoin (kflr): 1 kflr = 1000 flr’s, or 1 kflr = (1e3) flr’s
  • Mega-Flairrcoin (FLR): 1FLR = (1e6) flr’s, or 1 FLR = 1(1e3) kflr’s
  • Raw (raw): 1 flr = (1e24) raw

 

4.3 Flairr Accounts & Apps

We offer the following types of accounts and apps for safekeeping Flairrcoins as well as earning them.

 

4.3.1 Flairr Vault

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

 

4.3.2 Flairr Wallet

Flairr Wallet is a secure personal mobile app that allows people to use their Flairrcoins. People can use their coins to buy goods or services, send them to other wallets or simply exchange them for fiat currencies or other types of cryptocurrencies. Creating a Flairr Wallet account only requires a phone number and an email, and the wallet is easy to use. There are also a variety of security measures in place to ensure the safe storage of Flairrcoins in this wallet.

 

4.3.3 Flairr App (game)

Flairr App is a mobile app for both Android and iOS devices that, 1) provides a game hub where users can earn Flairrcoins by playing multiple games individually, cooperatively, or competitively, and 2) Learn about and purchase offerings made by Flairr Partners. The game 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 trade their coins or transfer them to other entities within the Flairr App. Such transactions can only take place within the Flairr Wallet.

 

4.3.4 Flairr Partner App

Flairr Partner is a mobile app for both Android and iOS devices that provides the business version of Flairr Wallet to our partners (merchants, or vendors). It also allows our partners to post offers that will be viewable by members of the Flairr network in their vicinity which may consist of individual users or other businesses.

 

4.4 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 Flairrcoins.

 

4.5 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.

 

4.5.1 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].

 

4.5.2 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].

 

4.5.3 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].

 

4.6 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 Flairrcoins, 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.

 

4.7 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.

 

4.8 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.

 

4.9 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].

 

4.10 Distribution

4.10.1 Pre-registration

The initial distribution of Flairrcoin will be done through pre-registration. The users who pre-register (early adopters who we would like to call Flairr Pioneers) will receive a certain number of Flairrcoins for free as a reward, as well as an option to buy more coins at a discounted rate after our launch.

 

4.10.2 Initial Coin Offering (ICO) Event

A substantial number of Flairrcoins may be offered to the public through an ICO (Initial Coin Offering) event at special rates that vary depending on the date that they participated in the ICO.

 

4.10.3 Distribution in the Flairr App

Flairr App will be the main source of distributing Flairrcoins after the ICO event. The app will distribute the cryptocurrency as rewards (for free) for completing tasks, overcoming challenges, or playing games. Other types of distribution, such as airdrops, may take place through the app.

 

4.10.4 Coin-sale Events

From time to time, there may be specific coin-sale events for the public to buy Flairrcoins at discounted rates. These are not regular events which may or may not happen.

 

4.10.5 Coin-burning Event

We will consider the possibility to have a coin-burning event to raise the value of Flairrcoin at some point in the future. However, the time and the number of coins that we might burn may strictly depend on the adoption rate as well as how the coins are circulating in the market.

 

4.11 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.

 

4.12 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.

 

References

[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/.