The White Paper
Version 2.1 (12 october 2020)
Commercio.network is “The Documents Blockchain” that ALLOWS companies to create identities, sign and exchange business documents among its participants.
Creating a decentralized network is very complex because there are no obvious initial benefits to building it. It is the classic chicken and egg problem. We thought of a Solution: A Blockchain of decentralized nodes incentivized through a Utility Token, which can grow in value as the network grows.
Commercio.network is a sovereign network that has its own native Utility Token called Commercio Token which will serve for:
- Incentivize members to manage this network
- Incentivize members to grow this network by bringing in other members.
Through this Utility Token, Only active participants can benefit from the growth of the network. This Utility Token aligns the interest of all participants, who can also be competitors, to actively collaborate to create and foster the growth of the network itself and keeps out free-riders and speculators.
Commercio.network in detail
What is Commercio.network
“The Documents Blockchain” refers to the main purpose of Commercio.network which is to act as a network to facilitate the exchange of business documents between companies using the blockchain technology which is decentralized, immutable and distributed.
Commercio.network allows companies to create self sovereign identities, exchange and sign documents between the participants of the network to ensure the:
- Paternity the document was created by a declared sender
- Validity the sender can not deny having electronically signed the document
- Integrity of the document has not been altered during transport
Every company can exchange its documents securely provided that it is invited into the network by another company that is already an active member and adopts the protocol of Commercio.network.
Commercio.network is organized on an open-source software project entirely based on Blockchain technology focused on the needs of companies. The core component, the application component and SDK were developed by Commerc.io srl and published on the public account of GitHub, whilethe consent algorithm of the blockchain was developed by Tendermint inc.
Commercio.network uses a Proof-of-Stake (POS) algorithm, a variant of a new family of consensus algorithms inspired by decades of research in distributed systems. Until the advent of POS, most Blockchain networks relied on the POW (Proof-of-Work) consent protocol, which consumes a great deal of electricity.
The Proof of Stake (POS) algorithm of Commercio.network is an autonomous and impartial system that guarantees network uptime through two opposite mechanisms:
- Positive, rewarding nodes with the rewards mechanism (VBR) of 25,000 tokens per year for nodes that are always active in proportion to the stake and in proportion to the number of active nodes, this regardless of fees.
Negative, burning from 1% to 5% of the tokens with the slashing mechanism if the node should remain unreachable for more than 10,000 blocks, which corresponds to about 15 hours. (which is a minimum uptime for a B2B) or perform the double signature on a transaction.
Commercio.network is a (Public) Blockchain, open to 250 million companies, where each company can manage its own node, and a group of 100 companies (Permissioned) can manage a validator node to reach a consensus to decide which transactions are to include each block of the Blockchain.
Commercio.network significantly reduce the amount of companies’ current investments in IT infrastructure and security for eID, eSignature, and eDelivery
Commercio.network with its own Sovereign network is something halfway between the Public Blockchain and the permissioned Blockchain, an hybrid solution that encompasses the best of both worlds.
On Commercio.network companies keep private transactions, but work together to build shared, secure, and future-proof IT infrastructures, rather than continue to duplicate the infrastructure for their own use cases. The shared infrastructure Commerce. The network will unlock innovation and unlock resources that were previously frozen between non-communicating organizations.
Commercio.network is designed to be a system:
- suitable for cooperation between several companies
Commercio.network works as a distributed ledger, but its architecture has innovative and unique features that strengthen and create new possibilities for companies. For those who want to fully understand the different technical features, on the site docs.Commercio.network there is a detailed guide for developers of all modules.
Commercio.network allocates governance so that network participants do not have to rely on a central entity to manage their transactions.
Private Transactions between companies
Businesses can achieve the highest level of privacy in Commercio.network by forming private links that allow private transactions (pairwise)
Scalability and performance
Thanks to the Proof of Stake (PoS) consent protocol and the block time limit is only few seconds, the Commercio.network can scale up to thousands of transactions per second.
The consent mechanism called Tendermint guarantees the immediate purpose of the transactions.
The crypto-economic component of Commercio.network will allow companies to develop mechanisms that discourage unwelcome activities and create rewards for the activities they like.
Companies will be able to notarize on Commercio.network any credit or debit document that has been exchanged in digital format.
Commercio.network is based on eIDAS standards
Freedom and Interoperability
Companies that will use Commercio.network are not locked into a single vendor’s IT environment. Commercio.network through the IBC protocol of Cosmos.network and can be connected to any other Blockchain present and future.
The technology and sources of Commercio.network are totally open source and can be inspected by anyone who wants it on GitHub.
Designed for developers
Commercio.network is a middle ground between Bitcoin’s Blockchain that does a single thing, (transferring currency) and Ethereum that is a fully programmable Blockchain (it can do everything but at the expense of simplicity and security). We think that the current blockchain technology has a learning curve and a too-high attack surface, so we want to lower the entry barrier by transforming it into a group of 9 hyper-specialized NATIVE Smart contracts that can be invoked through an easy to understand Stack.
The crypto-economic incentives system
A new type of Token
We have developed a new type of utility token that encourages network growth and discourages low participation, called Commercio Token.
The Token will allow access to the Blockchain Commercio.network subject to the active use of the token itself and discourages its hoarding for speculative purposes.
Token trading if left unused will have an opportunity cost. because users renounce the economic opportunities arising from staking.
The two problems to be solved
1. Keeping the network Alive
How to encourage companies to manage and maintain network nodes?
On Commercio.network the network security is entrusted to a special type of node called Validator Node. A Validator Node stakes the token to have the right to perform the validation work of the Blockchain.
The Commercio Token, compared to a classic token utility, aims to improve the creation of value of distributed networks, as it disincentives the presence of speculators looking for a free income and encourages active participation.
2. Growing the network
How to encourage the use of the network by companies and increase the membership of the network by bringing in other participants?
The fact that to exchange documents, a company must necessarily invite another company, already has a strong level of inherent virality, but the speed of growth is organic.
Adding an additional level of incentives that can motivate all network members to bring in new participants will have even stronger growth effects.
If the act of inviting someone to join the network generates an economic opportunity, it is possible that the network will grow faster.
The consensus mechanism
The consensus mechanism is what allows Blockchain to obtain a Purpose, i.e. a definitive and irreversible writing of a transaction on the network, which obtains the Consent of the majority of the participants.
The network Commercio.network is a third-generation Blockchain that will use a consensus system called Proof of Stake (POS).
In a POS Blockchain, Validator Nodes are nodes that include all the transactions written on it and certify that they have not been tampered with with with a double signature. They are the guarantors of honesty. Validators receive transaction commissions shared between the active validator nodes that validate them.
On Commercio.network these Validator Nodes are not anonymous entities as in the public Blockchain but must be known and authorized companies.
To be sure that these honesty guarantors are themselves honest, we use the POS mechanism, so each Validator Node must stake 50,000 tokens that are automatically burned by the protocol if the Validator does not adhere to the rules established by the protocol of the network of Commercio.network.
POS networks are secure in proportion to the value of all collateral items (Total Stakes).
There are three types of nodes:
there are a minimum of 4 nodes that will carry out the work of Validator Node using a software developed by Commerc.io srl based on Cosmos SDK and Tendermint that runs on a public server with HSM devices, connected to the Internet and protected by firewalls added
a maximum number of 250 million companies are expected to interact with Full Nodes placed on their own server or managed by others to exchange commercial documents.
a maximum number of 3.4 billion people can be employees, managers or owners of these companies that interact with Light Nodes placed on a mobile or desktop client app to digitally sign these business documents.
The accreditation mechanism
Commercio.network is a “public network”, open to all companies
To reduce the fake profile problem we have created a paid KYC/AML membership mechanism open only to companies that already have established business relationships with the current members of the network.
The KYC/AML accreditation mechanism will control network entry and hopefully limit fake profiles and criminal actors
An accredited member is a person or company that has been invited by another company who is a member of Commercio.network and has purchased a paid KYC/AML membership.
On Commercio.network there are 4 levels of Paid KYC Membership (metal) that give a proportional right to token awards and 1 level of basic Membership (green) that gives only identity features
All accredited KYC members can invite other companies into the network.
- The protocol proportionally rewards those who make a greater investment of money by purchasing a KYC Membership on Commercio.network to be certified.
- The protocol also rewards proportionally those who make a greater investment of time by inviting and accrediting other members
In order to obtain token awards, both of the above conditions must be met.
Commercio.network has two types of native tokens issued by the protocol:
- Commercio Token (COM) is a Fungible Utility Token that can be used on Commercio.network and is Blockchain’s fuel with a value that will be determined by the market.
- Commercio Cash Credits (CCC) is a fungible Fee Coin usable on Commercio.network. It is a token sold at 1 €+vat and can be used by companies to purchase services on the network
We describe in detail the two native tokens:
Commercio.network has its own native crypto currency called Commercio Token with an issue limited to 60 million units.
- Commercio Token is a Utility Token of a sovereign Blockchain, has as Symbol COM, with value determined by the market.
- The currency is divisible in millionths (6 decimals) and this fraction of token is called uCommercio (pronounced miu Commercio) This utility token may be freely exchanged for fiat currency or any CEX or DEX that lists it.
- The main purpose of the Token will be to be a unit of value that can be placed on stake to secure the network of Commercio.network.
- The Token, with a minimum quantity of 50,000 units and for a minimum period of 21 days, if put in Stake by a validator node allows accumulating other Tokens through two mechanisms of Reward: Validation fees(FEE) and Validation Block rewards (VBR).
- Validation Fee (FEE) are commissions that are issued by the system to those who perform the work of validating transactions during the consent process. The commissions collected during each block are distributed EQUALLY among the Validator Nodes that have validators for these transactions.
- Validation Block rewards (VBR) is a mechanism that distributes a reserve of 12.5 million tokens that are distributed to all validator nodes for each Validated Block, regardless of the number of transactions contained in it. These rewards are PROPORTIONALLY distributed among the Validator Nodes according to the number of tokens they have staked.
- If the validator node is not active, does not participate in the voting or does not behave honestly validating two transactions, it will suffer progressive losses of its stake assets according to the rules (Slashing Conditions) established by the consent protocol.
The Blockchain Commercio.network has a second native token called Commercio Cash Credits (CCC) which can be used to make transactions on the Blockchain. The cost of a transaction is defined in CCC and initially is quantified in 0.01 .
- CCC Commercio Cash Credits are unlimited and are generated on Commercio.network by providing Commercio Tokens in exchange.
- The Commercio Cash Credits is a Fee Coin because it has the objective of be used only for transactions
- 1 Commercio Cash Credits is currently sold a 1€+vat
- CCCs were created to make life easier for companies that do not want to face exchange rate risk or do not want to hold floating value cryptocurrencies for business reasons.
- If a company, for example, sends a document to one of its customers, it will spend 0.01 CCC to transfer a document
- Commercio Cash Credits can be used ONLY on Commercio.network and are considered a Value unit for on -chain transactions. No Other CCC Use is Permitted.
- When a company uses a Commercio Cash Credits the Validating Nodes will accept them as an alternative payment to the Tokens
- A company may be able to use the Blockchain Commercio.network without ever having to buy Tokens but only Commercio Cash Credits by purchasing them at 1€ + vat.
- A company can initially buy Commercio Cash Credits by paying them in Fiat Currency from anyone who has them.
TOKEN GENERATION EVENT
During the launch of Commercio.network a Token called Commercio Token (COM) was created.
The Blockchain Commercio.network has a fixed supply of 60 million tokens and then will be minted exclusively 60 million tokens on the Blockchain Commercio.network. This number is written in the genesis Block and can never be changed, just like BITCOIN.
|%||receivers||Purpose||# Token (type)|
|4,17%||Commerc.io srl||Founders||2,5 Millions (locked)|
|4,17%||Commerc.io srl||Development projects||2,5 Millions (locked)|
|5,83%||Commerc.io srl||Technical and Marketing Advisors||3,5 Millions (locked)|
|2,5%||Commerc.io srl||External Security Team||1,5 Millions (locked)|
|16,66%||Private pre-sale for Nodes Validators members of the commercioconsortium.org||Secure transactions||10 Millions (Unlocked)|
|25%||Public||Use of Services||15 Millions (Unlocked)|
|20,83%||Accreditation Block Reward to be released in the first 5 years (after 2.0 launch)||Invite new members||12,5 Millions (ABR)|
|20,83%||Validation Block Reward to be released in the first 5 years (after 2.0 launch)||Block validation||12,5 Millions (VBR)|
|100%||TOTAL (maxCoin)||60 Millions|
- During the Token Generation Event (TGE) 60 million tokens have been minted by commerc.io srl and distributed as follows:
- 10 Million tokens reserved for commerc.io srl. These tokens will be Locked to encourage all the people in the team to contribute to the realization of the project.
- 10 million tokens reserved for Validating Nodes members of the consortium Commercio.network can be purchased at special conditions.
- The 25 million tokens reserved as Validation Block Rewards and for Accreditors are kept in two smart contracts
- The 15 Million public tokens will be eventually distributed and will not have any lock or minimum staking period.
1) This project is intended exclusively for companies interested in the technology of the Blockchain Commercio.network, which have access to it by virtue of an NDA with Commerc.io srl. This document is not intended for the general public or others not specifically identified.
2) This material may not be reproduced or distributed without the prior written consent of Commerc.io srl. The method of circulation and distribution may be limited by laws or regulations in some countries.
3)Companies should consult their consultants, and analyze the presentation and other technical material with their independent specialist.
4) This page is for informational purposes only. Nothing here constitutes an offer to sell, nor a solicitation of an offer to buy, cryptocurrency, nor does it constitute an endorsement with respect to any area or investment vehicle.
5) Past performance of the cryptocurrency market (actual or hypothetical) is no guarantee of future performance and future performance may not meet expectations due to various economic, market, and other risk factors.
6) This document has been prepared by Commerc.io srl on the basis of information available to the public, data processed within it and other third party sources deemed reliable. The information obtained from public sources or from third parties has not been verified by Commerc.io srl which, therefore, does not guarantee its accuracy, completeness, and reliability.
7) All the information contained herein is updated to the current date at the latest and to the date on which the document is delivered by Commerc.io srl to the recipient, or to another date indicated with reference to specific information; Commerc.io srl does not assume any obligation or responsibility regarding the accuracy of the information after that date. Commerc.io srl has no obligation or responsibility to update or supplement any of the information contained in this document.
8) Any projection, estimate or market outlook of cryptocurrencies contained in this document is purely a forecast, based on certain assumptions, and cannot predict all possible relevant factors. There can be no assurance that such projections, prospects, or estimates will materialize.
9) The opinions expressed on the industrial project and on the crypto valuation markets, as well as the analyses contained in this document, may not reflect the general vision of Commerc.io srl. Different opinions may be formulated on the basis of different approaches, objectives, visions, or business philosophies.