The Commercio.network Project
Commercio.network is “The Documents Blockchain” that GIVES THE FREDOM to all companies in the world to exchange and sign encrypted and anonymous 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 incentivised through a cryptocurrency, which can grow in value as the network grows.
Commercio.network is a sovereign network that has its own native crypto currency called Commercio Token which will serve for:
- Encourage members to manage this network
- Encourage members to grow this network by bringing in other members.
Through this cryptocurrency all active participants can benefit from the growth of the network. This cryptocurrency aligns the interest of all participants, who can also be competitors, to actively collaborate to create and foster the growth of the network itself.
Commercio.network in detail
What is Commercio.network
The Tagline “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 technology of the blockchain which is decentralized, immutable and distributed.
Commercio.network will allow all companies in the world to encrypt, exchange and sign business documents between the participants of the network to ensure the:
- paternity the document was created by a declared sender
- non-repudiation the sender can not deny having sent the document
- integrity of the document has not been altered during transport
Every company in the world will be able to 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 application component and API were developed by Commerc.io srl and published on the public account of GitHub, while the core component that manages the consent algorithm of the blockchain was developed by Tendermint inc.
Commercio.network is characterized by using a Proof-of-Stake algorithm, relying on Tendermint, a variant of a new family of consensus algorithms inspired by decades of research in distributed systems. Until the advent of Tendermint, most Blockchain networks relied on the Nakamoto (Proof-of-Work) consent protocol, which consumes a great deal of electricity.
Commercio.network will be a federated Blockchain, open to 250 million companies, where each company can manage its own node, and a group of companies can manage a validator node to reach a consensus to decide which transactions are to include each block of the Blockchain.
Commercio.network will significantly reduce the amount of companies’ current investments in IT infrastructure and security
Commercio.network with its own Sovereign network will be halfway between the Public Blockchain and the Private Blockchain, with a hybrid solution that takes the best of both worlds.
On Commercio.network companies will keep private transactions, but will 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. 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
In terms of data coordination, Commercio.network will function 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 Commercio.network there is a detailed guide for developers of all modules available at the launch of version 2.0 planned no earlier than 1–1–2020 and a list of those that will be developed in the future.
Commercio.network will allocate governance so that network participants do not have to rely on a central entity to manage their transactions.
Companies will be able to leverage the Blockchain right away instead of developing a Blockchain implementation from scratch.
Commercio.network will allow companies to form sub-networks through private connections where only members of these networks can access the shared information.
Private Transactions between companies
Businesses can achieve the highest level of privacy in Commercio.network by forming private links that allow private transactions.
Scalability and performance
thanks to the Proof of Stake (PoS) consent protocol and the block time limit is 5 seconds, the federated network 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 will be based on ISO standards and is planning to achieve European compliance with eIDAS.
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 API.
The crypto-economic incentives system
A new type of Token
We have developed a new type of 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 staging.
The two Problems to be solved
1. Managing the network
How to encourage companies to manage and maintain network nodes?
On Commercio.network the network security will be 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 will be 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 will be three types of nodes:
there will be 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 not a “public network”, but rather a network open to all companies that already have established business relationships with the current participants of the network.
No one can join Commercio.network unless invited and accredited by another accredited member!
The accreditation mechanism is what will allow Blockchain to control network entry and limit fake profiles as much as possible. Because if some malicious person enters the network, we know who invited him.
This control does not take place in a centralized way but totally decentralized.
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 membership.
On Commercio.network there are 4 levels of Paid Membership that give proportional right to token awards and 1 level of Free Membership that gives no right of accreditation.
All accredited members can bring other companies into the network.
- The protocol proportionally rewards those who make a greater investment of money by purchasing a 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.
When the Blockchain Commercio.network version 2.0 is launched, it will have three types of native tokens issued by the protocol:
- Commercio Token (Available in version 1.0) is a Fungible Currency Token that can be used on Commercio.network and will be the Blockchain’s crypto currency with a value that will be determined by the market in the Exchanges (CEXs) that will join and in all DEXs.
- Commercio Credits (Available from version 2.1) will be a fungible StableCoin usable on Commercio.network will be a token with a stable value of 1 € and will be used by companies to purchase services on the network and will be generated using Commercio Tokens as collateral.
- Commercio MembershipToken (Available from version 2.1) will be a NON-FUNGIBLE Token that can only be used on Commercio.network related to the identity of a company or a person who gives members access to bonuses in Token for crediting other members.
A native function (CommercioMintAPI) is foreseen in the future protocol development plan which will allow each company in the network to generate Fungible and Non-Fungible Tokens to allow all members to exploit the cryptoeconomic mechanisms.
We describe in detail the three native tokens:
Commercio Token (COM)
Commercio.network has its own native crypto currency called Commercio Token with an issue limited to 60 million units.
- Commercio Token is a Crypto Currency (exactly like BTC or ETH) of a sovereign Blockchain, has as Symbol CT, has a value determined by the market.
- The currency is divisible in millionths (6 decimals) and this fraction of currency is called uCommercio (pronounced miu Commercio) This crypto currency may be freely exchanged for fiat currency or other crypto currency on any Digital Exchange 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.
- A second Purpose may be to purchase any service that accepts it as an alternative currency to the fiat currency.
- A third purpose may also be to act as a collateral for the creation of a second token called Commercio Credits (CC) a stable coin created specifically to allow companies to make a transaction on the Blockchain.
- 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 to accumulate 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 variator 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.
Commercio Cash Credits (Available from version 2.1)
The Blockchain Commercio.network will have a second native cryptocurrency called Commercio Cash Credits (CCC) which will be used to make Euro transactions on the Blockchain. The cost of a transaction is defined in EURO and initially is quantified in € 0.01 which makes it perhaps the first StableChain in history.
- Commercio Cash Credits (CCC) will be generated on Commercio.network by providing Commercio Tokens as collateral.
- The Commercio Cash Credits (CCC) has an exchange ratio always 1 : 1 with the Euro 1 Commercio Cash Credits = 1€
- 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 load the document and 0.01 CCC to transfer the document and therefore only spend €0.02 in total.
- If a company sends the same document to 5 of its customers, it will spend 0.01 CCC to upload the document and 0.05 CCC to transfer the document and therefore will spend only €0.06 in total.
- Every single transaction on the Blockchain costs € 0.01, for example: creating an identity, creating a secure connection between two companies, uploading a document, sharing a document, signing a document, etc.
- There may be functions performed by entities outside the Blockchain, such as archiving and deleting a document. In this case the cost of the transaction may vary depending on the cost of the service offered.
- Since the value of 1 CCC is automatically maintained at 1 €, it may be possible to buy a coffee with 1 Commercio Credits or any service that accepts it as an alternative currency to the fiat currency.
- Commercio Credits can be generated ONLY through a Native Smart Contract (CommercioMINT) by invoking a specific function that will place as collateral a quantity of Token defined on the basis of the market value of the Token.
- When a company uses a Commercio Cash Credits (CCC) the Validating Nodes will accept them as an alternative payment to the Tokens.
So a company may be able to use the Blockchain Commercio.network without ever having to buy Tokens but only Commercio Cash Credits (CCC) by exchanging them at a ratio of 1:1 for a € in Fiat currency.
- A company can initially buy Commercio Cash Credits (CCC) by paying them in Fiat Currency from the website and from the free app of commerc.io srl.
Commercio MembershipToken (Available from version 2.1)
The Blockchain Commercio.network will have a third type of NON Fungible Token that can only be used on the Commercio.network and is nominally linked to the identity of a company or person that gives members access to bonuses in Token for crediting other members and access to future commerc.io srl software.
- Commercio MembershipToken MT will be generated on Commercio.network
- Commercio MembershipToken is a digital version of a club membership card. They have 5 levels of value with a cost in euros that varies according to value: Black, Gold, Silver, Bronze, Green.
- They were created to clearly distinguish the degree of participation on the network and give rights to obtain exclusive token bonuses called Accreditation Block Rewards (ABR) based on the time spent to invite and accredit other companies on the network.
- A company or a person who buys a membership (except Green ) becomes an Accrediter and in the first 5 years can participate in the 25 million Token prize pool made available as Accreditation Block Rewards (ABR) to accredit other members and participate in the growth of the network.
- Commissions collected during each period are distributed among all Accreditors who own a Commerce MembershipToken for a fee.
- For example, if a company buys a Gold MembershipToken Trade and accredits another company that buys a Gold CommercioMembershipToken, it will receive a Token Bonus equal to 70% of the ABR Accreditation Block Rewards made available during the period.
- If a company with a Gold Membership invites and accredits another company that does not purchase any membership and therefore stays with Green, the inviting company does not earn anything.
- If a company with a Green Membership (free) invites another company that buys a Gold membership instead, it earns nothing.
- Each invitation and accreditation action entitles you to a percentage in tokens of ABR Accreditation Block Rewards made available at a given time.
- Commercio MembershipToken can be produced by changing the equivalent value at the time of the Commercio Token exchange except for MembershipToken Green Trade which is Free of charge.
- Commercio MembershipToken can never be converted by companies into Commercio Token
- Commercio MembershipToken can never be transferred to other companies because they are nominal and inextricably linked to the corporate identity.
- A company can buy Commercio MembershipToken by paying them in Fiat Currency from the website and from the free app of commerc.io srl.
- In the future, it is expected that it will be possible to purchase Commercio MembershipToken from any active member of the network (i.e. excluding Green members) who purchases Tokens on an exchange and exchanges them into Commercio MembershipToken and transfers them to the buyer.
TOKEN GENERATION EVENT
During the launch of Commercio.network version 1.0, a Token called Commercio Token was created.
The Blockchain Commercio.network unlike a fiat currency type € or $ that has no emission limits instead 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.
100%TOTAL (maxCoin) 60 Millions divided in thi way:
- 10 Million tokens reserved for the Community. These tokens will be Locked to encourage all the people to contribute to the project.
- 10 Million tokens reserved for Validating Nodes members of the consortium Commercio.network can be purchased at special conditions and can not be sold for a period of 36 months.
- The 12.5 million tokens reserved as Validation Block Rewards locked on a smart contract
- The 12.5 million tokens reserved as Acreditation Block Rewards locked on a smart contract
- The 15 Million public tokens will be eventually distributed on Liquidity pools (LP) directly from active network partecipants.