Ratings BGX ~ Multifunctional Processing Platform

12 min readAug 26, 2018

‘BGX’ is a decentralized financial platform for the mobile gaming industry that works with artificial intelligence. All over the world, decentralization is altering economies. There is no better market for the mobile gaming industry, with 2 billion users technologically advanced and with a high cost that depends on some centralized application markets, which charge exorbitant fees from their developers in exchange for the basics only. BGX allows game developers, players, app markets and all other competitors to have a much larger share in the $ 60 billion market by offering smarter gaming and financial solutions.

In this new reality, the mobile gaming ecosystem must reduce the entry threshold for developers, facilitate the creation of local and specialized application stores, reduce commissions for players, integrate the flexibility of cryptocurrency and introduce a transparent mechanism for income distribution. Today, meeting these needs is impossible due to the rules imposed by large companies.

Aim

BGX’s mission is to use the computing platform with artificial intelligence technology amplified by the game’s ability to democratize the multi-million dollar mobile gaming industry. We believe that in the era of decentralization, the application market cannot remain under the control of a few suppliers. To create solutions, the ecosystem must be united. For this purpose, the entire platform (with the exception of the BIFROST Funding Module) will be available as open source. Any developer can join the platform and develop it as part of the gaming community.

BGX Project Scope

Features of the BGX project are given below:

The solution is proposed for a huge and still intensively growing market of mobile games that bring together a significant audience of participants: players, game manufacturers (studios) and professional intermediaries (advertisers, publishers, content delivery channels). Each of these participants provides for the development of the ecosystem and requires a specific functionality, without which the platform will not be claimed;
The gaming platform must support an extensive range of monetization models including paid access, the sale of virtual goods within games (IAP), advertisement, and tournaments, especially in the developing sector of cybersport. These monetization models are inseparable from the delivery channels and need the support of direct and reverse transactions;
Work of users with the platform is identified by frequent and relatively small transactions — micro-transactions (up to 10 USD), and sometimes even Nano-transactions (less than 1 USD). This feature requires a high speed of processing and low commissions;
Crypto economics, which is in the making, has a great future for the economy of mobile games. The main benefits of using cryptocurrency in the gaming industry include cross-border transfers with low commissions, high reliability, and significant anonymity. However, this economy is still in an obscure legal field, is under pressure of volatility and requires a significant inter-blockchain integration;
Since the virtual economy is gaining weight, computer scammers have been running after money, from which all high-tech companies are suffering, and the Game Industry is one of the first because of the high degree of diversification at the level of producers and players. The modern solution should be based on an independent subsystem of artificial intelligence able in real time to manage large data sets, allot fraud and optimize transaction routes. Decentralization can and should be safe.

Distinctive Features of BGX

BGX has a full-featured model that supports all ecosystem participants:

Implementation on top of the Ethereum Blockchain, as a hybrid solution — with a system of dedicated nodes and the ERC20BGX Token. Supports hot and cold user wallets, currency exchange, virtual player wallet and overdraft function;
The platform focuses primarily on mobile gaming applications and supports all of the necessary functionality that forms a single ecosystem of developers, users-players, advertisers and partners;
Ability to distribute games outside the stores of Google Play and App Store applications: search, rating, feedback, and reliability check and infrastructure functions;
Support for modern gaming capabilities and monetization models, including tournaments in various modes, functions of augmented reality and the market of in-game products;
Built-in AI-system based on neural networks that supports the main processes of the platform: smart registration of users, holding

The BGX Platform

The purpose of the product is to solve payment related issues in mobile games, as well as delivery of content to users. The product functionality can be conditionally divided into two clusters:

*FINANCING AND MONETIZATION OF MOBILE GAMES

Accepting payments from users in phiatic and cryptographic currency, selling and exchanging virtual goods within games;
Providing reverse payments to users (profit sharing, the reverse sale of goods, payment of winnings);
Assistance for user crediting functions;
Support of modern advertising platforms, including loyalty programs and the possibility
of launching smart contracts that provide payments for advertising;
Built-in AI — a system based on neural networks allows you to support the central processes of the platform: smart registration of users, tournaments with the control of honesty (anti-cheating), promotion of games

*DELIVERY AND PROMOTION OF GAMES

Distribution of games outside official app stores with the probability of building a reputation mechanism;
Built-in social functions in the gaming platform with the capability to build profiles and distribute games inside the in-game communities

BGX Components

NODES — components that are hosted on one or more servers, servicing transactions, and storing installation images of games. They carry the basic functional in their selves. Software nodes are accessible; any developer can get the code from GitHub, deploy and test it, and also modify the code. At the same time, for a functioning in a real network (in order to be able to carry out transactions) the node must have a certain BGX fund. The nodes interact with each other and between external systems (public blockchain and payment gateways);
GAME CLIENTS — built-in modules in games that are responsible for interacting with nodes through the API or SDK. Game developers register on the platform and then get the opportunity to use the platform’s capabilities in terms of payment and delivery of content;
USER WALLET — user’s wallet that monitors user’s account and allows to perform basic operations — replenishment of wallet, transfer of tokens, exchange of game tokens;
APP LIFT — is a client application that allows you to add content to a user’s smartphone, as well as interactions with a reputable developer system.

Platform Architecture

The basic requirements for architecture are formed through the following attributes: scalability, performance, security, reliability, and so on. The ideal architecture of the processing system should be the following:

Highly scalable (support up to 9000 nodes, at least 2 million applications);
Productive (up to 100,000 transactions per second);
Secure (corresponding to security standards in the field of payments, trained with AI);
Reliable (no less than 99.999% availability);
Flexible in use (expandable in connection with new models of monetization);
Interoperable (interacting with various payment gateways and blockchain eco-systems).

BGX Platform Transactions

The BGX PLATFORM takes a 10% commission on all transactions except ads, 20% on internal ads and 40% on external ads. These earnings are split among: NODES, BGX TOKEN HOLDERS and BGX DEVELOPERS.

BGX Infrastructure

BGX Users

Fraud Prevention

The technology of artificial intelligence is one of the currently trending topics and is at the forefront of development. The total economic profits from the introduction of AI are estimated to be $36.8 billion by 202518. Technological giants such as Google, Amazon, and Microsoft spend up to $40 billion per year on AI-related technology, especially in five main areas: robotics, autonomous transport, computer vision, virtual agents and machine learning. The technologies listed above have various practical use adjustments already.

The most adapted use scenarios19 are the following:

Trading & Investments;
Card-linked Marketing;
Consumer Behavior Analytics;
Fraud & Risk Management.

IBM Fraud Detection Architecture

Artificial Intelligence

Artificial Intelligence is a BGX subsystem that implements three functions:

Blocking suspicious transactions (fighting fraud);
Controlling the tournaments held in competitive games;
Clustering applications and development of recommendations to the user, taking into account the developer rating (generally determined by the number of transactions and the time of work with the platform).

The implementation of the AI subsystem in BGX is based on a neural-fuzzy Adeline- type network (Adaptive Linear Neuron). Neural-fuzzy or hybrid solutions include fuzzy logic algorithms and neural networks, taking advantage of the hybrid approaches. Fuzzy logic systems are successfully used to describe their decisions, but they cannot automatically replace the system of rules necessary for making decisions.

Blockchain Impact

The Blockchain is one of the most innovative technologies in IT. The essence of this technology consists of the decentralized storehouse of information in an environment without trust. Blockchain consists of nodes maintained by the miners; each node contains a chain of blocks, which are a set of transactions signed by cryptographic functions. The benefit of a decentralized approach is in the democratization of the decision- making profit distribution and an identical decrease in the share of business spending operations.

Blockchain Cooperation

BGX is implemented on top of the Ethereum blockchain system, and despite the mechanisms of off-chain transactions need to interact with the large blockchain.

To do this, each BGX node has a special BLOCKCHAIN LAYER. This layer controls the written and extracted data. In addition to Ethereum, the project needs a connection with partner networks. A Listener is implemented for each of them:

Wanchain — implements cross-chain smart contracts;
Dash — digital Internet currency for immediate transfers;
Ripple — cryptocurrency platform for payment systems, concentrated on transactions with the exchange of currencies without the return of payments.

Cyber Security & Data Protection

An information security policy — BGX has established, reviews and regularly updates its information security policies. These policies provide the basis for all management decisions that could, in any way, influence the BGX value chain which includes, but is not limited to BGX itself, its employees, consultants, contractors, investors, and suppliers.
Organization of information security — BGX clearly explains all security-related roles and responsibilities and, where relevant, mandates strict segregation of duties.
Human resource security — BGX applies appropriate levels of scrutiny to personnel prior to and, where necessary, during engagement/association with BGX.
Asset management — Due to its distributed nature, BGX has necessarily adopted a three-layer ‘Responsibility’ model for assets that operate as part of the BGX network.
Access control — BGX’s Identity and Access Management (IDAM) model operates a layered series of interoperable ingress and egress access controls to and from its network and network-based services.
Cryptography — BGX follows NIST’s best practice ‘Cryptographic Directives, Mandates & Policies’ as outlined in Special Publication 800–175A; ‘Cryptographic Standards’ from SP 800–175B, and follows Key Management processes according to NIST 800–57.
Physical and environmental security — Secure areas, equipment, physical equipment security, physical access controls. Due to the classified nature of BGX’s systems, however, the physical and environmental elements are secure by design.
Operations security — BGX documents its security-related operational procedures and attributes responsibilities, where appropriate, inappropriately controlled RACI (Responsible, Accountable, Communicated, Informed) matrices.

BGX Advantages

Advantages for the investors:

The ability to participate in the growing project; access to participation in the economy of the platform with the use of exchanges and other financial Instruments;
Share in 60% of the profits generated by the rapidly growing mobile games market;
The ability to exchange BGX Tokens for low volatility BGT Coins (platform internal currency) and pay for compatible game services.

Advantages for Developers and Partners:

Ability to connect their games to the core features of the crypto economy, including payment by cryptocurrency;
Low commission when purchasing through BGX payment mechanisms (no more than 10%);
Platform-wide currency-based methods of increasing user engagement (compensation for the behavior of downloading a game, playing it, or completing certain tasks);

Advantages for Players:

The ability to buy game tokens for both fiat and for cryptocurrency;
Support for the overdraft function;
Ability to use low-volatile BGT Coins to pay for game functionality;
Ability to output BGT Coins into fiat tools;
A virtual wallet representing a player’s account and a loyalty platform.

Business Model

BGX Solution

BGX is a complete solution that supports mobile game features and combines the abilities of blockchain technology with advanced AI neural networks. Game developers and app markets get built-in support for their games, access to different monetization models, and distribution to millions of players, and fees of less than 10%. Players get an opportunity to earn on the platform and exchange their tokens both between games and into real money. The platform is open-sourced, protected from crypto-volatility, has the speed and potential far superior to the Ethereum blockchain, and enables all to share in its revenues.

Decentralized App Market: Implementation of an additional distribution channel for games with the ability to verify and promote applications.
Native: User hints and matching, verification of tournament results using a distributed neural network.
Cryptocurrency Exchange: Assistance for the exchange of game tokens and withdrawal in fiat money.
Virtual Wallet: Users receive a universal wallet that allows them to work with both their current user accounts and a variety of loyalty programs.
Overdraft Module: Embedded overdraft mechanism and user scoring, the ability to receive overdraft approval in exchange for loyalty.

BGX Platform Currency and ICO Token Sale

The BGX Platform will have a dual token system. This system avoids the negative impact of token volatility on the platform’s everyday economy and aligns the motives of those holding the coin waiting for it to recognize in value with those of the users, preparing to associate with the platform.

The first token — the BGX Token — will be launched during the Token Generation Event and represent the right to participate on the platform.

The second coin — the BGT Coin — is a utility coin exchanged on the platform as a method of payment.

Tokenomics

BGX TOKEN Details

Token Distribution

Crowdsale and Discounts

Crowdsale Expenditures

Market Status and Current Trends

The full potential of the proposed solution cannot be estimated without an understanding of the global shifts in the economy. According to the FROST & SUVILLIAN report1, and no less thorough research of EY2, there are several mega-trends that form the agenda for today and tomorrow. The most important ones directly influence the solution that is being developed:

Technological Divergence (complete inter-connection: Big Data, gamification, virtual currency);
Mobilization (the rise of e-commerce, m-commerce, micro-mobility, integrated mobility, third world smartphone adoption);
New Social Trends (Generation Y, life expectancy growth — Gray Aging, geo-socialization);
New Reality Of Trade (virtual shops, OMNI-CHANNELS, new business model of sales);
URBANIZATION (urban population growth and suburbs, megacities, slum growth).

The growth of ICO in the gaming sector

Overdraft Feature

The most important principles in the implementation of BGX overdrafts are these:

Establishment of a maximum relationship between BGX overdrafts and installment mechanisms;
Availability of reliable mechanisms for defending against the withdrawal and cashing out of overdraft credit funds;
Determination of the overdraft limit for each player;
Dynamic determination of a player’s individual overdraft ability based on his behavior using AI;
Convenient overdraft parameter settings for game developers;
The possibility of implementing both paid and free overdrafts for players at the discretion of game developers.