A brief overview and description of the ARY Token
Token Contract Address 0xa5F8fC0921880Cb7342368BD128eb8050442B1a1
Sections How it works and what ARY is used for Masternodes & Why do we need them? ARY as a digital software license asset
How it works and what ARY is used for
First and foremost Block Array operates a business-facing blockchain network. It is a private and permission-based network, which means you need to have been given access in order to read, write, and execute any operations on the network. While we could institute a token for payments on the network, it makes more sense to have a tokenless network for conducting transactions and instead create a different dynamic in which network participants must abide by the rules.
ARY is not used to pay for services. ARY is not used to pay for or settle for services or transactions on the network. ARY is used to anchor network participants (businesses) so that they will have an economic incentive to abide by the rules along with their reputation at stake.
ARY acts as a access token. You need “X” amount of ARY in order to become a network participant. Network resources are defined algorithmically by the mathematical formula
Where A is network resources daily, X is amount of tokens held, and square root of upsilon is the amount of tokens held by all network participants. Note that this is an approximation.
This is similar to Proof of Stake for public blockchains. Instead of a block reward being the payout, network participants are given a daily allocation of bandwidth and API access calls.
Companies are given a baseline of storage space and CPU resources, but must pay in dollars (USD) for additional capacity.
Network Distribution, Masternodes, and Keeping the network honest
Since the network is comprised of businesses, malicious behavior and collusion is possible, and some might argue even more likely. As a result, we distribute our network amongst ourselves, network participants, and integral non-participatory members (INPM). INPMs are individuals who have gone through our KYC process and have been approved to run “masternodes” or another tier of service.
INPMs exist to distribute the network across people who have an interest other than the interests of network participants or ourselves (block array). This helps prevent malicious behavior and keeps the blockchain independent while still remaining private and scalable.
Masternodes (INPMs) must stake an amount of ARY in order to be eligible to become apart of the network. They receive a reward for providing services. There will be at least 2 levels (tiers) in which individuals can participate. Hosting these services requires that the server be hosted on an approved cloud provider, such as Azure or Digital Ocean. Payout in reward will be a mix of ETH and ARY during the bootstrap phase. Block Reward scheme will be voted on starting March 30th.
Distributing the network ensures that the network can not be simply be changed by us nor hijacked by businesses collaborating with each other. This ensures fairness and network integrity. If we did not have a token system like this, the network would be split 50/50, drastically increasing the chances of a malicious attack on the network.
As the distribution of the network decreases (becomes more centralized), the ease of an attack increases (becomes more likely). This also increases the chance of an attack being executed as it is more likely to succeed. Without having a masternode system to distribute the network, the network would have a major security risk and would solely rely on the promise of “good behavior”.
In the image above we see how the network interacts with Ethereum/POA and the traditional internet. The Membership Service Authority (MSA) is our on-chain governance for network participants that ensures participants are meeting the guidelines and criteria for the network (e.g. having the requisite amount of ARY on Ethereum).
ARY is also a software license. Not every business on the network will need the same applications, and additional applications will require X amount of ARY.
Once a business buys the required amount of ARY, that is it. They do not have to purchase more ARY. They do not need ARY to pay for services or transactions that occur afterwards. They pay any additional fees/costs in fiat or an approved virtual currency. We don’t want businesses worrying about wallet management, exchange rates, etc.
Token Contract Address: 0xa5F8fC0921880Cb7342368BD128eb8050442B1a1
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