Using Merkel Proof For Off-Chain Referral Networks

2key Network is a blockchain-based referral network intended to reward referrers through smart contracts. Referrals progress through the network thanks to people sharing them through regular means and opening them in their regular browsers to interact with underlying the smart contracts.

Therefore, 2key generates off-chain cryptographically signed links, which propagate among users without reaching the blockchain. Upon conversion, a user submits the signed link to the smart contract. The smart contract rewards the chain of referrers as represented in the signed link. The smart contract is deployed per referral campaign by the campaign initiator, depositing a referral reward, as an amount of cryptocurrency, from which the smart contract will later pay the referrers.

On Trees and Root Hashing

The Influence Graph

A campaign conducted over the 2key network starts with a source seeding, and proceeds through referrals. The graph of referrals from the source seeding is called the influence graph. Each node in the graph is called a referrer. The node which makes an actual conversion, such as purchasing a product, is called a converter. A referrer leading to conversion is to be rewarded either from the campaign budget or from the conversion amount, in case the conversion event entails a purchase where the converter inputs funds…