WeSend proof-of-authority network

Why build a new blockchain?

Use-cases that were not possible before due to volatility and speculation in the cryptocurrency ecosystem are now possible with the SDT Token. Decentralized cross-border transactions that have already begun to satisfy needs of migrants around the world are a prime example of this, particularly in Venezuela, the country with the most severe inflation, monetary restrictions and parallel markets globally.

WeSend is an efficient way to exchange digital and fiat currencies. As a consequence of the rapid growth of the network, we’re facing scalability limitations with Ethereum’s network earlier than expected. Transaction times and high gas prices are preventing WeSend from scaling to new markets where there is growing demand.

In order to scale around the SDT ecosystem, the WeSend engineering team has decided to issue its own Ethereum network designed to support a heavier load that provides an exchange service that acts as a bridge between Ethereum’s mainnet and the new blockchain. This will allow WeSend users to execute faster transactions at no cost within the platform and return to the mainnet to take advantage ERC-20 token liquidity, moving them between exchanges or platforms using SDT.

Consensus protocol

PoA (Proof-of-authority) is a simplistic consensus algorithm in which there are trusted parties (authorized signers) that can, at their discretion, issue new blocks to the blockchain. This means there is no mining and the result is a computationally more efficient network when compared to the proof-of-work consensus mechanism.

WeSend sidechain is based in Clique PoA protocol, which is an implementation of the PoA consensus mechanism for Ethereum. Clique protocol addresses the biggest challenges of PoA consensus mechanisms: defining block generation frequency, distribution load, managing the list of authorized signers, protecting against malicious signers and managing race conditions.

If you want to read more about Clique protocol, refer to the original implementation of Clique on Rinkeby Network: https://github.com/ethereum/EIPs/issues/225

SDT+

SDT+ is the new token deployed by WeSend on WeSend’s PoA network. It takes all original SDT token features, including its escrow mechanism, while providing faster than ever transactions within the WeSend platform at no cost for final users.

Since the WeSend PoA network is built over the Ethereum protocol, the WeSend wallet is still 100% compatible with and allows users to hold and transfer SDT/SDT+ and ETH. After the SDT+ launch (September 2018), all transactions in the WeSend Marketplace are using SDT+ instead of SDT, making transactions faster and removing Ethereum mainnet transaction cost. Users are able to change SDT for SDT+ and vice versa with just one click in their wallets at any time, giving SDT+ the same value that an SDT holds.

While SDT on the Ethereum mainnet provides liquidity and compatibility with exchanges and peer-to-peer platforms that support ERC20 tokens, the new SDT+ token will provide a better user experience and further reducing costs for token holders.

Exchange mechanism

Although there is no communication with Ethereum’s mainnet, WeSend deployed an exchange service that can be used at anytime to swap SDT for SDT+ or vice versa at a 1:1 rate.

In order to change SDT for SDT+ deposit tokens on a reserve contract at address 0x969F99F3D3cb00D84634EC1ef2b8bA506955B1f7. To do this, call token.approve(0x969F99F3D3cb00D84634EC1ef2b8bA506955B1f7, <amount>) followed by reserve.deposit(<amount>). The first function gives the reserve contract the rights to transfer the specified amount of SDT and the deposit function will execute the transfer and log it in the contract. Every token deposited will trigger a mint event on WeSend’s blockchain and credit the same amount of tokens.

To change SDT+ for SDT, call the function withdraw(<amount>) in the token’s contract at address 0x3e07e76c1af371965a1035df09bc2b8abd7f2f21. This function will burn SDT+ and trigger a release event on Ethereum’s mainnet that will credit the same amount of tokens to the user’s address from the reserve contract.