Wrappy Whitepaper


An Identity Platform on Blockchain Draft 0.3.1



1. Background

According to the International Labour Organization in 2012, the number of human trafficking victims confirmed worldwide was around 21 million per year*1. In 2016, the United Nations High Commissioner for Refugees shocked the world with the statistics that there were 65.6 million refugees in the world, and more than 10 million of them were stateless*2. In addition, according to data*3 released by the World Bank Group, about 2 billion people in the world had no bank accounts in 2014. In the world today, there are numerous people who do not have official identification; it is a number too high to grasp. This lack of identification leads them to problems that might not have occurred if they had had identification. However, acquiring official identification is not always easy, and having it still does not guarantee safety and legitimacy. What people need is a form of identification (ID) which is proven to be safe and valid, and easy to acquire in a simple process.

2.Target Setting

Wrappy’s motto is “Flattening the World.” Our intention is to create a new economy where people of any social class are equally connected to the world by providing people with their proper identities. This is especially important for those who are “invisible” in the current world due to the lack of a nationality or family register. Wrappy will provide secure and tamper-proof online identities to people who don’t have reliable information. Wrappy IDs are relatively easier to acquire for individuals because there is no need to apply to central authorities. The decentralized nature of Wrappy in management allows users to connect directly to each other, while cutting down the costs and time for the procedure. Wrappy will provide a platform based on a highly secure ID system which enables ideas that have been hard to realize due to factors such as time, costs, language and locality.

3.Core Development Issues and Solutions

Challenges we faced to achieve Wrappy’s goals were how to issue IDs and make them secure, seamless and legitimate. That led us to employ blockchain technology. Bitcoin, a major cryptocurrency based on blockchain technology, has shown no downtime since its birth in 2009 despite massive attacks to the network. Blockchain technology is proven to keep information as accurate at a high level on a consensus-based system. This does not mean blockchain is problem-free, though. There are unexpected issues such as:

-Consensus algorithm
- High computing ability and accompanying high power consumption by mining
- Limitation to the volume of transaction processing
- Handling of a large amount of data
- Incentive to keep the network intact
- Connection to off-chain systems
- Application of blockchain technology in various fields
- Security against unidentified issues

The environment surrounding Bitcoin has changed drastically since its birth, and we believe that blockchain technology will play an important role in essential social infrastructures. For blockchain to achieve its full potential, it is necessary to overcome these issues and design systems with an eye to the future.

3-A.Technical Conditions

We set the following conditions to achieve Wrappy’s goals and to overcome issues regarding blockchain:

- Issuance of seamless, secure and legitimate IDs
- No charge for users
- Minimal administrative back-end storage of sensitive information
- Connecting users with the compatible profiles
- Strong and reliable security

4.Guild

What is Guild?
Guild is the peer-to-peer (P2P) service implemented in Wrappy. By applying blockchain technology, we will provide secure and seamless IDs to those who were not previously able to have IDs.
Some of the most prominent features of the ID system in Guild are that work-based actions are recorded on blockchain, manual operations are minimized by the decentralized management, and smart Contracts is applied, which enables high usability to connect and trade with each other without the interference of third parties in a trustless setting.

Reputation

The reputation system used in Guild is based on both actions by users and peer reviews by other users.
There are two proposals in the base of this reputation system: A.) The higher ability the users have, the higher quality their products have B.) The higher the product's quality, the higher ability the maker has This leads to the equation that if reviewers are credible, then their reviews are, too.
In accordance with this principle, we will calculate a graph with subjective and objective values to define an ideal growth line. Items of subjective and objective values will be further classified. The balance between subjectivity and objectivity will be verified by using a weighted scoring model, and the validity of reviewers and the balance will be proven by using an algorithm to which the concept of HITS is applied for the time axis.
An issue that arises in the process is weighing IDs of the first generation. It will be handled by “mother”, which has administrative authority within the blockchain.
Mother has the absolute authority for each ID, leaving the admin without control over IDs. Mother performs as programmed, closes the account of unauthorized users and generates IDs to facilitate the smooth growth of IDs.

5.Blockchain

Blockchain
Wrappy uses blockchain technology and deploys Ethereum Smart Contracts. In the near future, we will target building a new network that has both Directed Acyclic Graph (DAG) and synapse structures as the background.

Directed Acrylic Graph (DAG)
DAG is a finite directed graph with no closed circuits. It can be regarded as the mesh structure of the internet, if blockchain is regarded as a single stroke line. DAG transaction is designed as one-direction and keeps sending transaction signals to unaccepted nodes. Eventually, the longest chains will be the heaviest and a block is made on the node that has the highest number of transactions within the network. DAG records the entire process, not only the eventual chains and blocks.

Synapse Network
Blockchain has proven its usefulness in the market over the years. Still, with new types of unauthorized operations such as the DAO incident and NEM incident, we must be cautious of applications by third parties. The need for such caution is expected to increase. To prevent the recurrence of past mistakes, one-way communication is necessary for important contracts issued by parties such as Mother. Wrappy will design a network by modeling it after how chemical substances are transferred between synapses. Each node has a black-boxed acceptance node judging if the information the receptors received is correct. Accepted information will be sent with a digital signature to the next receptor, but the transaction relay will be interrupted if the received information has no digital signature made by the previous acceptance node. This will prevent increasing application-based operations that are unauthorized.

Encryption Technologies
Wrappy will enable end-to-end communication using Signal Protocol on Open Whisper System. This means transactions between users do not leave any traces on the server. Signal Protocol is a very powerful protocol, combining the encryption technologies of Curve25519, AES-256 and HMAC-SHA256. Also, we utilize information-theoretic security that prevents tapping by altering data via observation based on quantum key distribution.

Smart Contracts
Smart Contracts is a protocol for the transaction process on blockchain, recording the terms of execution and content of an agreement on blockchain which, in turn, can eliminate the need for issuing contract documents . Smart Contracts helps to shorten the processing time until the payment and save costs by allowing users to communicate directly without third parties. It also provides users with security to prevent unlawful transactions. Blockchain adopts P2P technology for communication, which allows multiple terminals to communicate in a decentralized network. When data in a terminal is altered by unauthorized access, other terminals connected to it have data back-up, which enables identification of the tampering. Wrappy deploys Smart Contracts, which automatically executes a contract once the conditions are agreed upon (programmed in advance). Issues regarding payment, such as default and insolvency, have been inevitable in modern day transactions; however, Smart Contracts gives us the ability to solve problems not just with payment but also negotiations and logistics.

6.Wrappy and Its Possibilities

Communication with Trust and Transparency
What make Wrappy IDs different from other SNS IDs is that the past activities within the community will be recorded and a reputation system based on peer reviews will be introduced. Online profiles have been largely based on what users claim themselves to be without much supporting evidence to verify the claims. Therefore, rating systems and reviews found online often lack transparency and credibility. This is why Wrappy is trying to build a reliable reputation system for the same ID carried out by users via innovative blockchain technology. etc. Each user is only issued one Wrappy ID. Each user’s reputation will be determined by using an algorithm to quantize information registered by users as well as the P2P evaluation. The information that is registered by users for their profile is not much different from that of usual SNSs. However, P2P reviews are added to the picture. They have relative objectivity, which differentiates Wrappy ID from other SNS IDs. Users will evaluate each other based on the information they post and the interactions with each other. For example, when peer users find postings made by ‘user A’ to be reliable and good, then ‘user A’ will be evaluated highly. On the other hand, if peers find the postings offensive and or “false news,” the reputation of ‘user A’ will decrease. The responses will be recorded and ‘user A’ or third parties will not be able to tamper with this information. This system guarantees the trustworthiness and transparency of information shared within the community.

Smooth Payment
The importance of micropayment is increasing, especially in the fast-developing IoT (Internet of Things) industry. However, one of the challenges with micropayment is third party fees, such as transaction fees and service fees, which sometimes surpass the amount of remittance. It is inadvisable to pay such fees. For blockchain, since the incentive to keep the network directly affects the security of the platform, it is difficult to abolish the commission fee system. Taking all the issues from the past project into consideration, Wrappy aims to develop a new network that can overcome the limitations of the existing projects. We believe this will lead to a new payment method with higher usability.

Comfortable Operability Based on Ergonomics
There are four major components when analyzing human behaviors: actions, thoughts, emotions and physiological responses. They are all linked to each other, and it is necessary to develop stress-free specifications for the applications. However, even the basic functions of various existing applications often lack usability. Therefore, it is essential to pursue usability from the point of ergonomics to improve the level of satisfaction of application users.

7.Potential Market for Wrappy

There are many possibilities for the use of Wrappy, once you acquire Wrappy ID. Some examples are shown below:

Crowdfunding
Frauds are unfortunately not rare in crowdfunding. Many people have probably heard of a fraud-like project that one took part in purchase-type crowdfunding and selected “return”, but never heard anything from the fundraiser. There are more than a few investment-type crowdfunding cases where the projects one has invested in keep postponing the refund, hampering the recovery of principals. The crowdfunding in Guild will be open not only to participants but also to other people, which makes the progress of a project transparent. In addition, the definition of a project is defined by Smart Contracts to reduce the demerits seen in the past crowdfunding.

Market Research
There are many methods for market research, such as online surveys and street surveys. However, a response to the same question from the same person may change, depending on the situation s/he is in. The parameters can be the responder's willingness to answer, the correctness of demographic attributes and the laziness of responders. Survey features of Guild will solve such issues; since users answer questionnaires voluntarily in this system, they are more inclined to disclose their demographic attributes correctly, not to mention the incentive of micropayment as a reward. Allowing the use of smartphones to complete surveys will reduce the time for both parties, making it possible for companies to conduct a quality market research.

Logistics Industry
Online transaction is advantageous in terms of cutting down costs on information, ads, sales, payment, production and inventory, making it possible to develop consumer-friendly business models. It can be said that online transaction reduces sales costs, but the current concern is how to reduce the logistic cost (physical distribution cost). The need for more efficient logistics, such as transportation, storing, loading and unloading is increasing. Wrappy will contribute to the efficiency of logistics, connecting sellers and buyers through Wrappy IDs with P2P technology by realizing start-to-end contract management until the purchase is safely delivered.

8.Proteusion

Proteusion is the currency used in Wrappy community; it is abbreviated as “PRoT” and pronounced “pro.” We will issue 21,000,000,000 Proteusion coins. Please note that the number of initial tokens issued during the crowdsale is not 21,000,000,000 coins.
PRoT issued during the crowdsale will be used as gas for contracts within the Wrappy community. Proteusion functions as a kind of share in the Wrappy platform, and we are trying to make it compatible with native coins (PRoT) issued in our original network.
Once certain conditions are met, PRoT coins are designed to be excluded from the network. Theoretically, as time passes and more tokens that satisfy the conditions are excluded, the value of the remaining tokens will increase, and users who want to execute Smart Contracts are expected to keep more tokens.

9.Future Challenges

Countermeasure against Quantum Computing
The rise of quantum computing is threatening major encrypting technologies that largely depend on computing such as elliptic curve and RAS, and is said to increase the danger of hacking. Experts are hopeful that it will not be a real threat until 2020. However, considering the alarming speed of the development of quantum computing, the crisis and tough challenges it poses in the near future are unavoidable. We are ready to face these challenges head on. Wrappy adopts lattice-based cryptography, which is a standard method in the industry to cope with the danger posed by quantum computing. Moreover, we are aware of possibilities of social hacking using AI and big data. Turing-type individual quantum is a real threat in our recognition, and how to protect user IDs against the “dark side” of quantum computing, with its self-learning abilities, is our future challenge.

Connections with off-chain systems
Blockchain technology is being transferred into other fields beyond the frame of fintech. Now it is being used to process not only coins and transactions, but also various records concerning transactions; this requires data, including secondary and tertiary information. A tailor-made blockchain is desired for each service. For that purpose, it is imperative that the central chain system and off-chain systems be integrated. To enhance the usability in the future, connection to other blockchains that have different origins need to be considered. It will also help avoid the risk of hacking, working in the network like a watertight compartment of a ship.

Data Compression
It is a tremendous challenge for the communication industry to compress data while keeping it reversible. The blockchain we are deploying needs to prove that it offers unprecedented expansion capabilities for bigger market data. Now that blockchain is deployed not only in fintech industry but businesses in general, we are tackling the issue of how to store and retrieve data efficiently. Data compression based on a gene model will be one of the solutions. There are a quarter of a million pieces of genetic information in one mitochondria in a human cell. Even if one mitochondrion dies, other mitochondria have back-up data. This gives us a circular model for data compression with a linear repetitive structure, like a model of mtDNA where the hybrid basic unit is endlessly repeated and information is consecutively duplicated.

10.Marketing

Growing Market in Southeast Asia
The world population has reached 7,000,000,000, and the number keeps growing. More than half of these people live in Asia. Among the Asian regions, rapid development can be observed in current Southeast Asia, which is Wrappy’s main target area. Blockchain, IoT and AI are the current frontier of the technological era. Despite such technological progress, there are still 2 billion people with no bank accounts. The development of technology produced more populations who use smartphones than the populations with bank accounts. The use of smartphones will further increase in coming years and achieve a tremendously high possession ratio, and together with crypto currencies, they will be the main tools to bring about changes to the world. As the usage rates of internet and SNS by age show, it’s the youth who play a center role in distributing information to the world and starting trends. In addition, it’s Southeast Asia where the average age is the lowest and the youth population is the largest in the world. Southeast Asia is rapidly growing now, so Wrappy is going to target that area to acquire users. We are hoping that the youth in Southeast Asia will welcome Wrappy and its service.

Accomplishments
Wrappy has contributed to blockchain conferences and events, as well as giving away donations in Asian regions such as Japan, South Korea, Vietnam and Cambodia in order to realize its motto: “Flattening the World."

11.Conclusion

The need for identity and identification (ID) is growing every day. This is not just about people; it can be applied to materials, too. True and legitimate identity is an essential issue shared by all of humanity, and the need will continue to increase, both at individual and national levels. Wrappy has the power to solve such issues surrounding identification. We aim to build a system where one can get job offers from all around the world regardless of where s/he lives. Wrappy will create a more comfortable economic market, one where people can connect with each other equally and freely beyond borders.

CONTACT ME

info@wrapious.hk

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