As we approach the date of 01001101 01010110 01010000 (MVP) release, it’s important to delineate what exactly MVP means for HAPI and what kind of functionalities it includes. The long-awaited MVP (Minimum Viable Product) release is the biggest step forward for HAPI as a product. It showcases the applicability of the technology and the necessity of HAPI as a cybersecurity layer. When we are referring to the cybersecurity layer, it might seem a bit too general and in some cases confusing terminology. The cybersecurity layer as seen through the lens of HAPI is NOT an invasive or surveillant type of system. Instead, it’s a mechanism of analysis and reporting that notifies on the prospects of threat. HAPI, or any other solution for that matter, is UNABLE to freeze or reverse transactions. This is done on the part of centralized issuers that, with enough evidence, can freeze funds.
HAPI — What Does it Do?
HAPI leverages blockchain’s inherent open ledger as the source for transactional activity and addresses within it. The goal of HAPI is to prevent illicit funds from entering any off-ramp destinations by marking and categorically dividing each address into tiers of potential fraudulence. Therefore one can describe HAPI as being an autonomous, and decentralized standard that assumes the role of ungoverned equivalent of centralized solutions.
The growth of HAPI as a product is continuous development and fleshing out of the core technology as well as consistent layering of new functionalities. Consequently, we also have grand plans that might require long-term development to fully realize such as Machine Learning integration, cross-communication between blockchains, and higher specificity of detection. HAPI Team plans to incorporate a plethora of useful, publicly distributable SaaS solutions that anyone can use.
On top of that, unlike centralized off-chain services, HAPI is built on the mainstays of publicly accessible data that anyone can read and append to. The beauty of decentralization also lies in the facilitation of a collective and cooperative mindset. In our view, uniting the whole crypto community under the aegis of betterment by allowing anyone to report a certain, potentially malicious, address is a great approach toward raising awareness and engaging people in the ideals of cybersecurity.
Main Functions of MVP
What then does MVP mean in terms of enabled functionalities and how can they be immediately useful to the DeFi, DEX, and CEX in question?
- The very first pillar on which the whole protocol is footed is the “Bulwark” system. In essence, it’s a mechanism of data-propagation across all entities connected to the protocol or in simple terms notification about the illicit activity. “Bulwark” allows to shield and prevent the illicitly accessed funds from being laundered by blocking points of entry.
- Binary risk categorization. Simply put, a HAPI smart contract will return if a given address is considered risky — 1; or non-risky — 0. Despite simple Risk Categories, HAPI also employs a Risk Scoring system that is able to identify the corresponding risk factor based on the previous interaction of an address. This will help CEX or DEX to decide whether a given address qualifies as being an illicit one and blacklist or debar it from using an exchange.
Tier 1 — Low risk
- 1 Wallet Service
- 2 Merchant Service
- 3 Mining Pool
- 4 Low Risk Exchange
Tier 2 — Medium risk
- 5 Medium Risk Exchange
- 6 DeFi
- 7 OTC Broker
- 8 ATM
- 9 Gambling
Tier 3 — High risk
- 10 Illicit Organization
- 11 Mixer
- 12 Darknet Service
- 13 Scam
- 14 Ransomware
- 15 Theft
Tier 4 — Severe risk
- 16 Terrorist Financing
- 17 Sanctions
- 18 Counterfeit
- 19 Child abuse
- Reporting System and DAO. The Report Page will allow reporting an address based on the aforementioned Risk Scoring system. Each CEX or DeFi project will be able to report a given address and specify the risk. System governance will include adding new organizations of different kinds (incident reports, fund trackers, possibly government structures that can sanction individual’s assets based on international laws) to network, management of reward structure, and case-by-case courts. The governance structure of HAPI will consist of a committee. The committee is an inner circle of decision-making. HAC (HAPI Authority Committee) is one of the cogs in the governance body that consists of members of the HAPI team and external trusted third parties that are responsible for proposal execution.
Be The First Mover
This is only the very first step for HAPI and we are proud of the goals already achieved. We have already garnered an extensive list of partners that will be of great help in testing and trialing HAPI Protocol. Our objective is to create an overarching system that goes above and beyond the current norms of crypto cybersecurity whilst also respecting the tenets of decentralized and ungoverned milieu of blockchain.
Therefore if you are willing to be one of the first to use and adopt HAPI and be a part of the safer and more secure crypto space, you can do so by sending us an Email: i.am.hapi@hapi.one
