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CSE w w w. c s e t o ke n . i o
w w w . c s e t o k e n . i o
CSE – Blockchain 3.0 Platform
WHITE PAPER
CSE
BLOCKCHAIN 3.0
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CSE w w w. c s e t o ke n . i o
TABLE OF CONTENTS
1. Blockchain Technology
2. Vision - Opportunities
3. What is CSE?
3.1 CSE Platform 3.0 …………………………………………..
3.2 Supernode …………………………………………..
3.3 Quantum Chip …………………………………………..
3.4 Smart Contract 2.0 …………………………………………..
3.5 Blockchain Speed and Scalability ………….............…………………..
4. Crypto Securities Exchange …………………………………………..
5. CSE Technology …………………………………………..
4.1 ICO …………………………………………..
4.2 STO …………………………………………..
…………………………………………..
7. CSE Ecosystem …………………………………………..
…………………………………………..
…………………………………………..
8. Global Blockchain Alliance …………………………………………..
…………………………………………..
1.1 Blockchain 1.0 …………………………………………..
1.2 Blockchain 2.0 …………………………………………..
1.3 Blockchain 3.0 …………………………………………..
6. Roadmap
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CSE w w w. c s e t o ke n . i o
1. Blockchain Technology
1.2 Blockchain 2.0
Blockchain 2.0 was born when developers realised the technology had applications
beyond currency. The development of the Ethereum platform allowed for the deployment
of decentralised applications by combining data storage and smart contract execution.
These ranged from social media networks to financial applications.
The most significant constraint blockchain 1.0 and 2.0 faces is scalability.
For example:
• The high energy consumption required to support the current Bitcoin network
costs over $1.5 billion a year making it unfeasible for mass adoption.
• With Ethereum, every node on the blockchain must calculate the smart
contracts in real-time, which results in low transaction speeds (~15tx/sec).
However, both of them faced the common problems that decoding costs were so high and
the decoding time was still slower than the expectation of many users. Increasing
difficulty means increasing cost and time also increased. This makes the distance of users
and developers BlockChain more and more distant.
1.1 Blockchain 1.0
The first form of Blockchain technology, now referred to as Blockchain 1.0, was developed
by Satoshi Nakamoto. Blockchain 1.0 is a core component of Bitcoin and serves as a data
store, i.e. public ledger. The most notable success for Blockchain 1.0 was solving the
“double spending” flaw. The flaw which caused previous digital currencies to fail. The
cryptographic proof-of-work (PoW) protocol was the solution. It eliminated the need for a
third party to validate transactions.
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CSE w w w. c s e t o ke n . i o
1.3 Blockchain 3.0
CSE has applied the science to solve this problem:
• Open chain networks;
• Block lattice structures;
• Cloud nodes;
• Micro Node;
• Hyperthreading;
• Stratification;
• Multi-layered Security.
The current technology can not process the volume of micro-transactions necessary for
worldwide mass adoption. To address this, Blockchain 3.0 is under development.
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CSE w w w. c s e t o ke n . i o
Blockchains are a virtual ledger, one can use this technology for all sorts of things other
than money.
Below are common issues that need the potential application of blockchain which will
definitely change the world.
• Decentralised Internet
• Smart Contracts
Programmers are currently working on decentralised internet platforms to
distribute all the functions of the internet over distributed nodes which will
increase the resiliency of the world wide web.
Smart contracts can be built on top of a ledger and operate as decentralised
applications. These programs can run functions which are becoming more
sophisticated and may diminish the need for standard legal contracts.
• Decentralised Markets
One challenge with cryptocurrencies such as Bitcoin is the need to trade on
centralised exchanges which can be shut down or hacked. Decentralised
markets allow trading without having to trust a third party.
• Distributed Cloud Storage
Distributed cloud storage avoids the need to place faith in large centralised
companies where personal data is vulnerable and pricing may escalate to
cover the expanding number of data servers.
• Decentralised Social Networking Sites
Social networking sites are centralised and are prone to censorship of
information. Decentralised social media platforms mitigate this and
financially reward the content creators.
2. Vision - Opportunities
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CSE w w w. c s e t o ke n . i o
• Encrypted Messaging
• Proof of Ownership
Items that are purchased could be tracked on the blockchain to demonstrate
proof of ownership and to prevent the sale of stolen goods which may
eventually help to reduce crime.
• Authenticated Voting
While digital voting can be susceptible to tampering, blockchain voting
technology is verifiable and would allow anybody to audit the blockchain to
confirm votes are time stamped and legitimate.
• Stock exchange
In traditional stockmarket there is typically a delay of 2–3 days for settlement
of stocks and bonds. Trading stocks on a blockchain is more cost effective and
provides instant settlement.
• Real Estate
Property titles, transactions and historic value can be built onto the
blockchain providing transparency and reducing the time and cost associated
with real estate transactions.
• Others
E-commerce, Payment Gateway, Transportation, Healthcare services, ...
Peer to peer messaging can leverage blockchain technology to encrypt
messages and store data bits efficiently on many different computers where
they can only be accessed with a private key.
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CSE w w w. c s e t o ke n . i o
3.1 CSE Platform 3.0
CSE has applied the science to solve the issues: Open chain networks, Block lattice
structures, Cloud nodes, Micro-node, Hyperthreading; Stratification; Multi-layered Security
for super-speed and super-cheap purposes.
Blockchain's era is extremely fast and cheap
3. What is CSE?
3.2 Supernode
• Micro-node;
• Virtualization and Node Dispatching;
• Classification and distribution of treatment streams;
• Masternodes.
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CSE w w w. c s e t o ke n . i o
Masternodes
Masternodes are nodes running the same wallet software on the same blockchain to
provide extra services to the network.
These services include:
• Anonymization increased privacy of transactions;
• Instant transactions;
• A decentralized governance;
• A decentralized budgeting system;
• Immutable proposal and voting systems.
For providing such services, masternodes are also paid a certain portion of reward for
each block. This can serve as a passive income to the masternode owners minus their
running cost.
What makes Masternode Unique?
The majority of crypto
currencies that make use of
masternodes, split their
block reward per block
equally between the mining
and masternode distribution
mechanisms. The intended
fairness of this reward
distribution can be subverted
by the growth of
masternodes held by large
investors without limits
leading to potential
centralization of the
budgeting system much like
having a majority
shareholder in a company.
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CSE w w w. c s e t o ke n . i o
When the number of coins locked to masternodes go above 41.5% of the total supply, the
block reward amount will shift with more than 50% of the block reward going to staking
nodes. This has the effect of making it less attractive to provision more masternodes as it
has the potential to significantly lower its profitability compared to staking that has less
upkeep cost.
This threshold was selected as it would allow a strong network of profitable masternodes
while creating incentive for approx. 60% of the total coin supply to be available for
staking to secure the network and to maintain liquidity.
Another intended benefit and goal of the Seesaw Reward Balance System is to ensure
that it is more profitable for users running masternodes than it would be to stake the
equal number of coins, under the normal circumstances of being below the equilibrium
threshold. The reason behind this is due to the extra cost, risk and time associated with
maintaining the masternodes are greater than staking alone.
The logic is simple in its roots. The higher the masternode count, the smaller the reward
portion of each PoS block that will be paid out to the masternodes and the larger the
reward portion for staking nodes. Conversely, when the masternode count falls, the
masternode reward portion is increased and the staking node reward portion decreased.
The PoS block reward starts with a ratio of 9 to 1 towards masternodes when the amount
of coins locked to masternodes is lower than 1% of the total coin supply.
Masternodes provide a valuable service and should be rewarded for that service, but
main aim is not to reward the extra value which they provide. For we believe that doing
so disproportionately benefits masternode owners and beyond other users of the
system and ultimately leads to a greater degree of centralization.
The reward portion is further split dynamically via the Seesaw Reward Balance System
between masternodes and staking nodes.
The additional benefits of masternodes can lead to less number of users conducting
Proof of Stake (PoS) mining activities and thus lowering the security of the PoS network.
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CSE w w w. c s e t o ke n . i o
3.3 Quantum Chip
Intel has announced the delivery of 17 qubit
superconductor chips for quantum
computers to QuTech, Intel's Quantum
Research Partner in the Netherlands. New
chips are made by Intel and have unique
designs to achieve improved productivity
and performance. Quantum computing, in
essence, is paramount in parallel computing,
with the ability to solve problems that
ordinarycomputerscan not handle.
In addition to applications that promote
research in chemistry, materials science,
and molecular modeling, quantum
computers can participate in advanced
algorithms that speed up decoding of
power consumption. This reduces the cost
and makes Blockchain widely available in a
wide range of industries.
Obstacles:
• Very sensitive Qubits: Any noise or unwanted observations of them can cause data
loss;
• This sensitivity requires them to operate at about 20 millikelvin - 250 times colder
than deep space. This extreme operating environment makes the encapsulation of
the qubit key efficient and functional;
• Superconducting is a very rare and very expensive material;
• Possesses Infinite Power, but Quantum Computer fiddles with concentration when
participating in BlockChain decoding. To solve this problem, the developer has to use
the supercomputer virtualization approach to millions of nodes.
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CSE w w w. c s e t o ke n . i o
Technology is changing almost every aspect of our lives. It is therefore no surprise that it
has already had a profound effect on how legal contracts are made (and signed), for
example, we now negotiate via e-mail, VC and Skype and sign electronically without ever
meeting face to face.
Technology is also revolutionising other broader issues of electronic contracting,
including identification of parties, and is forcing us to rethink the very fundamental
ideals of what it means to conclude and perform under a contract.
Smart contracts have been around for some time. Think of the humble vending machine.
The advent of distributed ledger/blockchain technology, such as Ethereum, now brings us
to a new era. "Smart Contract 2.0".
Smart Contracts
Smart contracts will fundamentally change the way in which we contract. It will bring
significant benefits and will transform certain sectors and industries. It will likely bring
with it disintermediation and decentralisation. It will also require a new approach to
lawyering to navigate and address the complex issues. Smart Contract 2.0 will need the
"smart lawyer".
Smart Contract’s logic is: if the technology can automate and self-enforce performance,
we should be able to do away with the need for legal contracts, and law in general.
“Smart contract" will be one which serves the purpose of a valid and binding agreement
coupled with technological auto-performance, without further human intervention.
Some of benefits of smart contracts operated on blockchain technology include:
1. Improved efficiencies;
2. Transparency;
3. Reduced cost;
4. Risk reduction;
5. Guaranteed performance.
3.4 Smart Contract 2.0
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Smart contracts raise multiple legal and commercial issues, including issues of:
• Immutability
Immutability, a fundamental pillar of the blockchain, is often upheld as one of
the key advantages of the smart contract. However, it raises challenges, for
example, in circumstances in which regulators might need to intervene. Many
proponents of the purely technical smart contract will argue this should never
be allowed to happen.
• Multiple permutations:
Smart contracts may need to anticipate every possibility, including factors
extraneous to the contract itself.
Smart Contract 2.0
Not only is the currency, smart contracts are going to be widely adopted in many fields in
the future. The future is the era of Smart contract 2.0
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3.5 Blockchain speed and Scalability
The speed of transactions on the most popular public blockchains does has an impact on
startups. Indeed, transaction speed is at the center of concerns about the scalability of
blockchains like Bitcoin and Ethereum.
In Bitcoin, each block is a maximum of 1 MB and will always take about 10 minutes to be
mined, as specified in the Bitcoin white paper. The expected block time in Ethereum is
much quicker, 10-19 seconds. That’s mainly because its block sizes are much smaller –
currently around 20-30kb.
Regardless of their differences, block mining in both Bitcoin and Ethereum is a stable
mechanism and doesn’t typically deviate from the expected times.
Bitcoin transaction speeds
On average Bitcoin processes about 7 transactions per second, which makes it pretty
slow compared to Ethereum and Ripple (the fastest major cryptocurrency, at 1,500 per
second). Visa does 24,000 transactions per second.
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Why the variance? It comes down to two main factors:
1. The amount of network activity;
2. Transaction fees.
Normally you can expect to pay a fee of around $3. But when the network gets very busy,
the fees go up. This happened in December, during the bull run. Media reported an
average transaction fee of $50 during this period.
This volatility in transaction time makes it difficult for Bitcoin to be used as a payment
mechanism.
However, Bitcoin’s developer community has come up with two solutions to this
problem:
• “Lightning Network”
As for Lightning Network, without getting too complicated, it enables
transactions to happen ”off chain” and the end result added to the blockchain
later. This requires trusted nodes, so it’s not as decentralized as confirming
transactions directly on Bitcoin’s blockchain. It’s still an experimental
technology.
• “SegWit”
By separating signature and transactional data, SegWit reduces the “weight” of
transactions, which creates more room in any given block. This does not
increase the network’s block size limit, but it does increase the volume of
possible transactions.
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CSE w w w. c s e t o ke n . i o
Ethereum hopes to handle the problem of transaction queues with different solutions:
• “Lightning Network”
Like Bitcoin’s developers, Ethereum is also exploring off-chain solutions. One is
called Raiden, which is Ethereum’s version of Bitcoin’s Lightning
Network. Another off-chain solution being developed is Plasma, which uses “a
series of smart contracts to create hierarchical trees of sidechains”.
• “Sharding”
‘Sharding’ draws from a traditional scaling technique called ‘database sharding’,
which effectively breaks a database into pieces and puts each part on a different
server.
Ethereum transaction speeds
The Ethereum blockchain can only
do roughly 15 transactions per
second. But while block time is
fairly consistent, when there are a
lot of transactions to process it can
lead to longqueues.
In December of 2017, the
CryptoKities craze reached a peak
and clogged up the Ethereum
network, the queues were 20,000-
25,000 transactions. Even now
Etherscan shows an average
queue of around 15,000-20,000
transactions.
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CSE w w w. c s e t o ke n . i o
Speed solution of CSE
✓ Lighting Network
CSE still inherits the Lighting Network technology, allowing off-chain processing
systems in many cases.
✓ Hyperthreading Technology
Lessons learned from Bitcoin and Ethereum, CSE utilizes hyperthreading
technologies, making the super-fast processing unprecedented.
This planning is like the waiting line and the door system at the airport. If the
number of transactions increases dramatically, the system automatically opens
more channels and opens more doors to ensure the maximum number of
transactions per thread. Maximum queue at CSE is 100 transactions.
✓ Quantum Supernode and Masternode
Quantum Supernode is involved in microprocessors in each transaction.
MasterNode: Professional support services, similar to aviation support services:
• Goods support;
• Support for the elderly and people with disabilities;
• Shuttle service in and out of the airport.
CSE's Masternode also has a special service that handles large contracts such as
the lease of private airplan,…
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CSE w w w. c s e t o ke n . i o
IntheworldoffinancetheICOmightbethemost
polarizing three letters of 2018. In the past three
yearsover$5BillionhasbeenraisedviaICOs.
$5BILLION
3 years ICO
4. Crypto Securities Exchange
4.1-ICO
With the SEC recently stepping up its pressure on
ICOissuers,companiesarescramblingtofindthree
new letters to distance themselves fromwhatwill
probably go down in history as a black eye
momentforcryptocurrencies.
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CSE w w w. c s e t o ke n . i o
4.2 - STO
Proper management of an STO requires an in depth and active mastery of global security
laws and regulations, not to mention a team of programers to create smart contracts,
digital wallets, and a platform for managing the whole process throughout the life-cycle
of the token.
The world’s first turnkey white-label solution for tokenization of securities of real-estate,
funds, companies, and other assets. CSE will manage the processing of the solicited
investors from login to capital received, as well as the issuance and management of
security tokens throughout the lifetime of the asset.
Security Tokens and
STOs are considered
securities from the first
day.
A Security Token
Offering (STO) is a fully
regulated ICO which
proceeds with the SEC’s
blessing.
Security Tokens and STOs are digital assets that are
subject to federal and global security regulations. If
cryptocurrencies like Bitcoin are considered
“programmable money” then you can consider Security
Tokens a version of “programmable ownership”.
Security Tokens and STOs are game changers for
financial and ownership models, allowing any company
to offer equity, debt or dividends. Any fund — be it,
venture capital, hedge or private equity — can offer
liquidity. Any asset can offer full or partial ownership or
revenue shares.
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CSE w w w. c s e t o ke n . i o
5. CSE Technology
API
Blockchain Foundation 3.0
Blockchain Cloud
Blockchain Database
Supernode Network
Smart Contract 2.0
Payment
Wallet
Cold wallet - ledger 3.0
Blockchain App
Artificial Intelligence
Multi-layered Security
POW - POS - POP
API Standard
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CSE w w w. c s e t o ke n . i o
Over the last ten years two of the most important technologies that have seen
widespread adoption have been virtualization and Bitcoin. Virtualization paved the way
for cloud computing and the Bitcoin protocol has the potential to reinvent finance using
cryptographic building blocks called blockchains.
Blockchain Cloud
Blockchain
Bitcoin relies heavily on the blockchain, a public “ledger” of every transaction that has
ever taken place that is distributed to the edge of the network. The key idea is that
there is no centralized authority that is responsible for saying what is true or what is
false, rather multiple distributed parties come to consensus, that consensus is entered
into the ledger which thereafter can be accessed by anyone in the future. It is
computationally infeasible for a single actor (or anything less that majority consensus)
to go back and modify history.
The Cloud as a Data Logistics Platform
What do consumers of cloud computing care about?
What do they want to know is true?
What would be the equivalent of a blockchain transaction in the cloud?
If we position the cloud as a giant logistics platform for data, then we can think of a
transaction as the transport or processing of data. Data enters in to the cloud (network),
it is processed (compute) and then is either returned to a consumer or kept for re-use at
a later date (storage).
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CSE w w w. c s e t o ke n . i o
Chief Information Officer (CIO) wants a Verifiable data supply chain
Everything, that happens to data, whether transport, processing or storage of data is
entered into the blockchain.
In essence the blockchain freezes the compute platform in time and users of the
platform can verify that the platform is in the correct state in real-time.
Such a system would give complete traceability for the cloud, entities who are either
using or administrating the cloud can be held responsible for their actions, regulators
get to audit all processes and everyone involved can verify what happened when.
What happened to data, who
accessed the data, where it
went and how that data was
governed can be verified by
anyone who has access to the
blockchain.
If you ask CIOs what they need to move their
mission critical processes to the cloud then
you will hear terms like “accountability,
reliability, compliance, security, verifiability,
auditability, acceptance of liability” etc. In
other words they demand that there is a
secure supply chain and that every step in
that supply chain can be verified in real-time
and when things go wrong it is possible to
figure out what went wrong and that
there is someone who can be held
accountable.”
Today not a single cloud vendor can say
this. It also shows the opportunity; if
such a platform could be built and the
concerns of Enterprise CIOs could be
satisfied then the entire global
enterprise IT budget would be up for
grabs.
Building a Blockcloud
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CSE w w w. c s e t o ke n . i o
A database running on the World Wide Web is most often using a client-server network
architecture.
A user (client) with permissions associated with their account can change entries that are
stored on a centralized server. By changing the 'master copy', whenever a user accesses a
database using their computer, they will get the updated version of the database entry.
Control of the database remains with administrators, allowing for access and permissions
to be maintained be a central authority.
For a blockchain database, each participant maintains, calculates and updates new
entries into the database. All nodes work together to ensure they are all coming to the
same conclusions, providing in-built security for the network.
The consequences of this difference is that blockchains are well-suited as a system of
record for certain functions, while a centralized database is entirely appropriate for other
functions.
Decentralized control
Blockchainsallowdifferentpartiesthat
do not trust each other to share
information without requiring a
centraladministrator.
Transactions are processed by a
network of users acting as a
consensus mechanism so that
everyoneiscreatingthesameshared
systemofrecordsimultaneously.
The value of decentralized control is that it
eliminates the risks of centralized control. With a
centralized database, anybody with sufficient
access to that system can destroy or corrupt the
data within. This makes users dependent on the
administrators.
Banks need to spend billions of dollars keeping
these centrally held databases from being altered
by hackers or anyone else who might wish to
profit from another's loss.
Blockchain Database
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CSE w w w. c s e t o ke n . i o
Blockchain technology can create databases that have histories of themselves. They grow
like ever-expanding archives of their own history while also providing a real-time
portrait.
It is the expense required to compromise or change these databases that has led people
to call a blockchain database immutable. It is also where we can start to see of the
evolution of the database into a system of record.
Performance
Centralized databases have been around for decades, and have seen their performance
increase in lock-step with a formula that has come to define innovation in the digital era:
Moore's Law.
Confidentiality
Bitcoin is a write-uncontrolled, read-uncontrolled database. That means anyone can
write a new block into the chain, and anyone can read a block in the chain.
A permissioned blockchain, like a centralized database, can be write-controlled and read-
controlled. That means the network or the protocol can be set up so only permissioned
participants can write into the database or read the database.
But, if confidentiality is the only goal, and trust is not an issue, blockchain databases
pose no advantage over a centralized database.
Hiding information on a blockchain requires lots of cryptography and a related
computational burden for the nodes in the network. There is no way to do this that is
more effective than simply hiding the data completely in a private database that does
not even require network connectivity.
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CSE w w w. c s e t o ke n . i o
Quantity: 180 million tokens
Private Sale
Quantity: 180 million tokens
ICO
Release as request
Market Price
Quantity: 360 million tokens
Exchange
$
$
$
Total Supply: 900.000.000 CSE
• Input Coins BTC, ETH, BCH, LTC,…
• Project Protocol CSE30
• Total Circulation 360.000.000 CSE
• Maximum Cap $99 Million
• Total Supply 900.000.000 CSE
6. Roadmap
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CSE w w w. c s e t o ke n . i o
7. CSE Ecosystem
Blockchain Academy
Payment
Gateway
Masternode Network
Crypto Securities
Exchange
Blockchain
E-commerce
STO Exchange
Digital Asset
Trading Platform
1 0 1
0 1 1
0 0 0
Multidisciplinary Smart
Contract 2.0
8. Global Blockchain Alliance
Founded and operated by Blockchain Alliance. Some typical countries:
Blockchain
Singapore
Founder
Blockchain
Russia
Founder
Blockchain
America
Founder
Blockchain Dubai
Founder
26
CSE w w w. c s e t o ke n . i o
BLOCKCHAIN 3.0
w w w. c s e t o ke n . i o
THANK YOU
CSE

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CSE30 White Paper

  • 1. 1 CSE w w w. c s e t o ke n . i o w w w . c s e t o k e n . i o CSE – Blockchain 3.0 Platform WHITE PAPER CSE BLOCKCHAIN 3.0
  • 2. 2 CSE w w w. c s e t o ke n . i o TABLE OF CONTENTS 1. Blockchain Technology 2. Vision - Opportunities 3. What is CSE? 3.1 CSE Platform 3.0 ………………………………………….. 3.2 Supernode ………………………………………….. 3.3 Quantum Chip ………………………………………….. 3.4 Smart Contract 2.0 ………………………………………….. 3.5 Blockchain Speed and Scalability ………….............………………….. 4. Crypto Securities Exchange ………………………………………….. 5. CSE Technology ………………………………………….. 4.1 ICO ………………………………………….. 4.2 STO ………………………………………….. ………………………………………….. 7. CSE Ecosystem ………………………………………….. ………………………………………….. ………………………………………….. 8. Global Blockchain Alliance ………………………………………….. ………………………………………….. 1.1 Blockchain 1.0 ………………………………………….. 1.2 Blockchain 2.0 ………………………………………….. 1.3 Blockchain 3.0 ………………………………………….. 6. Roadmap 3 5 7 7 7 10 11 13 17 19 17 18 25 25 3 3 4 24
  • 3. 3 CSE w w w. c s e t o ke n . i o 1. Blockchain Technology 1.2 Blockchain 2.0 Blockchain 2.0 was born when developers realised the technology had applications beyond currency. The development of the Ethereum platform allowed for the deployment of decentralised applications by combining data storage and smart contract execution. These ranged from social media networks to financial applications. The most significant constraint blockchain 1.0 and 2.0 faces is scalability. For example: • The high energy consumption required to support the current Bitcoin network costs over $1.5 billion a year making it unfeasible for mass adoption. • With Ethereum, every node on the blockchain must calculate the smart contracts in real-time, which results in low transaction speeds (~15tx/sec). However, both of them faced the common problems that decoding costs were so high and the decoding time was still slower than the expectation of many users. Increasing difficulty means increasing cost and time also increased. This makes the distance of users and developers BlockChain more and more distant. 1.1 Blockchain 1.0 The first form of Blockchain technology, now referred to as Blockchain 1.0, was developed by Satoshi Nakamoto. Blockchain 1.0 is a core component of Bitcoin and serves as a data store, i.e. public ledger. The most notable success for Blockchain 1.0 was solving the “double spending” flaw. The flaw which caused previous digital currencies to fail. The cryptographic proof-of-work (PoW) protocol was the solution. It eliminated the need for a third party to validate transactions.
  • 4. 4 CSE w w w. c s e t o ke n . i o 1.3 Blockchain 3.0 CSE has applied the science to solve this problem: • Open chain networks; • Block lattice structures; • Cloud nodes; • Micro Node; • Hyperthreading; • Stratification; • Multi-layered Security. The current technology can not process the volume of micro-transactions necessary for worldwide mass adoption. To address this, Blockchain 3.0 is under development.
  • 5. 5 CSE w w w. c s e t o ke n . i o Blockchains are a virtual ledger, one can use this technology for all sorts of things other than money. Below are common issues that need the potential application of blockchain which will definitely change the world. • Decentralised Internet • Smart Contracts Programmers are currently working on decentralised internet platforms to distribute all the functions of the internet over distributed nodes which will increase the resiliency of the world wide web. Smart contracts can be built on top of a ledger and operate as decentralised applications. These programs can run functions which are becoming more sophisticated and may diminish the need for standard legal contracts. • Decentralised Markets One challenge with cryptocurrencies such as Bitcoin is the need to trade on centralised exchanges which can be shut down or hacked. Decentralised markets allow trading without having to trust a third party. • Distributed Cloud Storage Distributed cloud storage avoids the need to place faith in large centralised companies where personal data is vulnerable and pricing may escalate to cover the expanding number of data servers. • Decentralised Social Networking Sites Social networking sites are centralised and are prone to censorship of information. Decentralised social media platforms mitigate this and financially reward the content creators. 2. Vision - Opportunities
  • 6. 6 CSE w w w. c s e t o ke n . i o • Encrypted Messaging • Proof of Ownership Items that are purchased could be tracked on the blockchain to demonstrate proof of ownership and to prevent the sale of stolen goods which may eventually help to reduce crime. • Authenticated Voting While digital voting can be susceptible to tampering, blockchain voting technology is verifiable and would allow anybody to audit the blockchain to confirm votes are time stamped and legitimate. • Stock exchange In traditional stockmarket there is typically a delay of 2–3 days for settlement of stocks and bonds. Trading stocks on a blockchain is more cost effective and provides instant settlement. • Real Estate Property titles, transactions and historic value can be built onto the blockchain providing transparency and reducing the time and cost associated with real estate transactions. • Others E-commerce, Payment Gateway, Transportation, Healthcare services, ... Peer to peer messaging can leverage blockchain technology to encrypt messages and store data bits efficiently on many different computers where they can only be accessed with a private key.
  • 7. 7 CSE w w w. c s e t o ke n . i o 3.1 CSE Platform 3.0 CSE has applied the science to solve the issues: Open chain networks, Block lattice structures, Cloud nodes, Micro-node, Hyperthreading; Stratification; Multi-layered Security for super-speed and super-cheap purposes. Blockchain's era is extremely fast and cheap 3. What is CSE? 3.2 Supernode • Micro-node; • Virtualization and Node Dispatching; • Classification and distribution of treatment streams; • Masternodes.
  • 8. 8 CSE w w w. c s e t o ke n . i o Masternodes Masternodes are nodes running the same wallet software on the same blockchain to provide extra services to the network. These services include: • Anonymization increased privacy of transactions; • Instant transactions; • A decentralized governance; • A decentralized budgeting system; • Immutable proposal and voting systems. For providing such services, masternodes are also paid a certain portion of reward for each block. This can serve as a passive income to the masternode owners minus their running cost. What makes Masternode Unique? The majority of crypto currencies that make use of masternodes, split their block reward per block equally between the mining and masternode distribution mechanisms. The intended fairness of this reward distribution can be subverted by the growth of masternodes held by large investors without limits leading to potential centralization of the budgeting system much like having a majority shareholder in a company.
  • 9. 9 CSE w w w. c s e t o ke n . i o When the number of coins locked to masternodes go above 41.5% of the total supply, the block reward amount will shift with more than 50% of the block reward going to staking nodes. This has the effect of making it less attractive to provision more masternodes as it has the potential to significantly lower its profitability compared to staking that has less upkeep cost. This threshold was selected as it would allow a strong network of profitable masternodes while creating incentive for approx. 60% of the total coin supply to be available for staking to secure the network and to maintain liquidity. Another intended benefit and goal of the Seesaw Reward Balance System is to ensure that it is more profitable for users running masternodes than it would be to stake the equal number of coins, under the normal circumstances of being below the equilibrium threshold. The reason behind this is due to the extra cost, risk and time associated with maintaining the masternodes are greater than staking alone. The logic is simple in its roots. The higher the masternode count, the smaller the reward portion of each PoS block that will be paid out to the masternodes and the larger the reward portion for staking nodes. Conversely, when the masternode count falls, the masternode reward portion is increased and the staking node reward portion decreased. The PoS block reward starts with a ratio of 9 to 1 towards masternodes when the amount of coins locked to masternodes is lower than 1% of the total coin supply. Masternodes provide a valuable service and should be rewarded for that service, but main aim is not to reward the extra value which they provide. For we believe that doing so disproportionately benefits masternode owners and beyond other users of the system and ultimately leads to a greater degree of centralization. The reward portion is further split dynamically via the Seesaw Reward Balance System between masternodes and staking nodes. The additional benefits of masternodes can lead to less number of users conducting Proof of Stake (PoS) mining activities and thus lowering the security of the PoS network.
  • 10. 10 CSE w w w. c s e t o ke n . i o 3.3 Quantum Chip Intel has announced the delivery of 17 qubit superconductor chips for quantum computers to QuTech, Intel's Quantum Research Partner in the Netherlands. New chips are made by Intel and have unique designs to achieve improved productivity and performance. Quantum computing, in essence, is paramount in parallel computing, with the ability to solve problems that ordinarycomputerscan not handle. In addition to applications that promote research in chemistry, materials science, and molecular modeling, quantum computers can participate in advanced algorithms that speed up decoding of power consumption. This reduces the cost and makes Blockchain widely available in a wide range of industries. Obstacles: • Very sensitive Qubits: Any noise or unwanted observations of them can cause data loss; • This sensitivity requires them to operate at about 20 millikelvin - 250 times colder than deep space. This extreme operating environment makes the encapsulation of the qubit key efficient and functional; • Superconducting is a very rare and very expensive material; • Possesses Infinite Power, but Quantum Computer fiddles with concentration when participating in BlockChain decoding. To solve this problem, the developer has to use the supercomputer virtualization approach to millions of nodes.
  • 11. 11 CSE w w w. c s e t o ke n . i o Technology is changing almost every aspect of our lives. It is therefore no surprise that it has already had a profound effect on how legal contracts are made (and signed), for example, we now negotiate via e-mail, VC and Skype and sign electronically without ever meeting face to face. Technology is also revolutionising other broader issues of electronic contracting, including identification of parties, and is forcing us to rethink the very fundamental ideals of what it means to conclude and perform under a contract. Smart contracts have been around for some time. Think of the humble vending machine. The advent of distributed ledger/blockchain technology, such as Ethereum, now brings us to a new era. "Smart Contract 2.0". Smart Contracts Smart contracts will fundamentally change the way in which we contract. It will bring significant benefits and will transform certain sectors and industries. It will likely bring with it disintermediation and decentralisation. It will also require a new approach to lawyering to navigate and address the complex issues. Smart Contract 2.0 will need the "smart lawyer". Smart Contract’s logic is: if the technology can automate and self-enforce performance, we should be able to do away with the need for legal contracts, and law in general. “Smart contract" will be one which serves the purpose of a valid and binding agreement coupled with technological auto-performance, without further human intervention. Some of benefits of smart contracts operated on blockchain technology include: 1. Improved efficiencies; 2. Transparency; 3. Reduced cost; 4. Risk reduction; 5. Guaranteed performance. 3.4 Smart Contract 2.0
  • 12. 12 CSE w w w. c s e t o ke n . i o Smart contracts raise multiple legal and commercial issues, including issues of: • Immutability Immutability, a fundamental pillar of the blockchain, is often upheld as one of the key advantages of the smart contract. However, it raises challenges, for example, in circumstances in which regulators might need to intervene. Many proponents of the purely technical smart contract will argue this should never be allowed to happen. • Multiple permutations: Smart contracts may need to anticipate every possibility, including factors extraneous to the contract itself. Smart Contract 2.0 Not only is the currency, smart contracts are going to be widely adopted in many fields in the future. The future is the era of Smart contract 2.0
  • 13. 13 CSE w w w. c s e t o ke n . i o 3.5 Blockchain speed and Scalability The speed of transactions on the most popular public blockchains does has an impact on startups. Indeed, transaction speed is at the center of concerns about the scalability of blockchains like Bitcoin and Ethereum. In Bitcoin, each block is a maximum of 1 MB and will always take about 10 minutes to be mined, as specified in the Bitcoin white paper. The expected block time in Ethereum is much quicker, 10-19 seconds. That’s mainly because its block sizes are much smaller – currently around 20-30kb. Regardless of their differences, block mining in both Bitcoin and Ethereum is a stable mechanism and doesn’t typically deviate from the expected times. Bitcoin transaction speeds On average Bitcoin processes about 7 transactions per second, which makes it pretty slow compared to Ethereum and Ripple (the fastest major cryptocurrency, at 1,500 per second). Visa does 24,000 transactions per second.
  • 14. 14 CSE w w w. c s e t o ke n . i o Why the variance? It comes down to two main factors: 1. The amount of network activity; 2. Transaction fees. Normally you can expect to pay a fee of around $3. But when the network gets very busy, the fees go up. This happened in December, during the bull run. Media reported an average transaction fee of $50 during this period. This volatility in transaction time makes it difficult for Bitcoin to be used as a payment mechanism. However, Bitcoin’s developer community has come up with two solutions to this problem: • “Lightning Network” As for Lightning Network, without getting too complicated, it enables transactions to happen ”off chain” and the end result added to the blockchain later. This requires trusted nodes, so it’s not as decentralized as confirming transactions directly on Bitcoin’s blockchain. It’s still an experimental technology. • “SegWit” By separating signature and transactional data, SegWit reduces the “weight” of transactions, which creates more room in any given block. This does not increase the network’s block size limit, but it does increase the volume of possible transactions.
  • 15. 15 CSE w w w. c s e t o ke n . i o Ethereum hopes to handle the problem of transaction queues with different solutions: • “Lightning Network” Like Bitcoin’s developers, Ethereum is also exploring off-chain solutions. One is called Raiden, which is Ethereum’s version of Bitcoin’s Lightning Network. Another off-chain solution being developed is Plasma, which uses “a series of smart contracts to create hierarchical trees of sidechains”. • “Sharding” ‘Sharding’ draws from a traditional scaling technique called ‘database sharding’, which effectively breaks a database into pieces and puts each part on a different server. Ethereum transaction speeds The Ethereum blockchain can only do roughly 15 transactions per second. But while block time is fairly consistent, when there are a lot of transactions to process it can lead to longqueues. In December of 2017, the CryptoKities craze reached a peak and clogged up the Ethereum network, the queues were 20,000- 25,000 transactions. Even now Etherscan shows an average queue of around 15,000-20,000 transactions.
  • 16. 16 CSE w w w. c s e t o ke n . i o Speed solution of CSE ✓ Lighting Network CSE still inherits the Lighting Network technology, allowing off-chain processing systems in many cases. ✓ Hyperthreading Technology Lessons learned from Bitcoin and Ethereum, CSE utilizes hyperthreading technologies, making the super-fast processing unprecedented. This planning is like the waiting line and the door system at the airport. If the number of transactions increases dramatically, the system automatically opens more channels and opens more doors to ensure the maximum number of transactions per thread. Maximum queue at CSE is 100 transactions. ✓ Quantum Supernode and Masternode Quantum Supernode is involved in microprocessors in each transaction. MasterNode: Professional support services, similar to aviation support services: • Goods support; • Support for the elderly and people with disabilities; • Shuttle service in and out of the airport. CSE's Masternode also has a special service that handles large contracts such as the lease of private airplan,…
  • 17. 17 CSE w w w. c s e t o ke n . i o IntheworldoffinancetheICOmightbethemost polarizing three letters of 2018. In the past three yearsover$5BillionhasbeenraisedviaICOs. $5BILLION 3 years ICO 4. Crypto Securities Exchange 4.1-ICO With the SEC recently stepping up its pressure on ICOissuers,companiesarescramblingtofindthree new letters to distance themselves fromwhatwill probably go down in history as a black eye momentforcryptocurrencies.
  • 18. 18 CSE w w w. c s e t o ke n . i o 4.2 - STO Proper management of an STO requires an in depth and active mastery of global security laws and regulations, not to mention a team of programers to create smart contracts, digital wallets, and a platform for managing the whole process throughout the life-cycle of the token. The world’s first turnkey white-label solution for tokenization of securities of real-estate, funds, companies, and other assets. CSE will manage the processing of the solicited investors from login to capital received, as well as the issuance and management of security tokens throughout the lifetime of the asset. Security Tokens and STOs are considered securities from the first day. A Security Token Offering (STO) is a fully regulated ICO which proceeds with the SEC’s blessing. Security Tokens and STOs are digital assets that are subject to federal and global security regulations. If cryptocurrencies like Bitcoin are considered “programmable money” then you can consider Security Tokens a version of “programmable ownership”. Security Tokens and STOs are game changers for financial and ownership models, allowing any company to offer equity, debt or dividends. Any fund — be it, venture capital, hedge or private equity — can offer liquidity. Any asset can offer full or partial ownership or revenue shares.
  • 19. 19 CSE w w w. c s e t o ke n . i o 5. CSE Technology API Blockchain Foundation 3.0 Blockchain Cloud Blockchain Database Supernode Network Smart Contract 2.0 Payment Wallet Cold wallet - ledger 3.0 Blockchain App Artificial Intelligence Multi-layered Security POW - POS - POP API Standard
  • 20. 20 CSE w w w. c s e t o ke n . i o Over the last ten years two of the most important technologies that have seen widespread adoption have been virtualization and Bitcoin. Virtualization paved the way for cloud computing and the Bitcoin protocol has the potential to reinvent finance using cryptographic building blocks called blockchains. Blockchain Cloud Blockchain Bitcoin relies heavily on the blockchain, a public “ledger” of every transaction that has ever taken place that is distributed to the edge of the network. The key idea is that there is no centralized authority that is responsible for saying what is true or what is false, rather multiple distributed parties come to consensus, that consensus is entered into the ledger which thereafter can be accessed by anyone in the future. It is computationally infeasible for a single actor (or anything less that majority consensus) to go back and modify history. The Cloud as a Data Logistics Platform What do consumers of cloud computing care about? What do they want to know is true? What would be the equivalent of a blockchain transaction in the cloud? If we position the cloud as a giant logistics platform for data, then we can think of a transaction as the transport or processing of data. Data enters in to the cloud (network), it is processed (compute) and then is either returned to a consumer or kept for re-use at a later date (storage).
  • 21. 21 CSE w w w. c s e t o ke n . i o Chief Information Officer (CIO) wants a Verifiable data supply chain Everything, that happens to data, whether transport, processing or storage of data is entered into the blockchain. In essence the blockchain freezes the compute platform in time and users of the platform can verify that the platform is in the correct state in real-time. Such a system would give complete traceability for the cloud, entities who are either using or administrating the cloud can be held responsible for their actions, regulators get to audit all processes and everyone involved can verify what happened when. What happened to data, who accessed the data, where it went and how that data was governed can be verified by anyone who has access to the blockchain. If you ask CIOs what they need to move their mission critical processes to the cloud then you will hear terms like “accountability, reliability, compliance, security, verifiability, auditability, acceptance of liability” etc. In other words they demand that there is a secure supply chain and that every step in that supply chain can be verified in real-time and when things go wrong it is possible to figure out what went wrong and that there is someone who can be held accountable.” Today not a single cloud vendor can say this. It also shows the opportunity; if such a platform could be built and the concerns of Enterprise CIOs could be satisfied then the entire global enterprise IT budget would be up for grabs. Building a Blockcloud
  • 22. 22 CSE w w w. c s e t o ke n . i o A database running on the World Wide Web is most often using a client-server network architecture. A user (client) with permissions associated with their account can change entries that are stored on a centralized server. By changing the 'master copy', whenever a user accesses a database using their computer, they will get the updated version of the database entry. Control of the database remains with administrators, allowing for access and permissions to be maintained be a central authority. For a blockchain database, each participant maintains, calculates and updates new entries into the database. All nodes work together to ensure they are all coming to the same conclusions, providing in-built security for the network. The consequences of this difference is that blockchains are well-suited as a system of record for certain functions, while a centralized database is entirely appropriate for other functions. Decentralized control Blockchainsallowdifferentpartiesthat do not trust each other to share information without requiring a centraladministrator. Transactions are processed by a network of users acting as a consensus mechanism so that everyoneiscreatingthesameshared systemofrecordsimultaneously. The value of decentralized control is that it eliminates the risks of centralized control. With a centralized database, anybody with sufficient access to that system can destroy or corrupt the data within. This makes users dependent on the administrators. Banks need to spend billions of dollars keeping these centrally held databases from being altered by hackers or anyone else who might wish to profit from another's loss. Blockchain Database
  • 23. 23 CSE w w w. c s e t o ke n . i o Blockchain technology can create databases that have histories of themselves. They grow like ever-expanding archives of their own history while also providing a real-time portrait. It is the expense required to compromise or change these databases that has led people to call a blockchain database immutable. It is also where we can start to see of the evolution of the database into a system of record. Performance Centralized databases have been around for decades, and have seen their performance increase in lock-step with a formula that has come to define innovation in the digital era: Moore's Law. Confidentiality Bitcoin is a write-uncontrolled, read-uncontrolled database. That means anyone can write a new block into the chain, and anyone can read a block in the chain. A permissioned blockchain, like a centralized database, can be write-controlled and read- controlled. That means the network or the protocol can be set up so only permissioned participants can write into the database or read the database. But, if confidentiality is the only goal, and trust is not an issue, blockchain databases pose no advantage over a centralized database. Hiding information on a blockchain requires lots of cryptography and a related computational burden for the nodes in the network. There is no way to do this that is more effective than simply hiding the data completely in a private database that does not even require network connectivity.
  • 24. 24 CSE w w w. c s e t o ke n . i o Quantity: 180 million tokens Private Sale Quantity: 180 million tokens ICO Release as request Market Price Quantity: 360 million tokens Exchange $ $ $ Total Supply: 900.000.000 CSE • Input Coins BTC, ETH, BCH, LTC,… • Project Protocol CSE30 • Total Circulation 360.000.000 CSE • Maximum Cap $99 Million • Total Supply 900.000.000 CSE 6. Roadmap
  • 25. 25 CSE w w w. c s e t o ke n . i o 7. CSE Ecosystem Blockchain Academy Payment Gateway Masternode Network Crypto Securities Exchange Blockchain E-commerce STO Exchange Digital Asset Trading Platform 1 0 1 0 1 1 0 0 0 Multidisciplinary Smart Contract 2.0 8. Global Blockchain Alliance Founded and operated by Blockchain Alliance. Some typical countries: Blockchain Singapore Founder Blockchain Russia Founder Blockchain America Founder Blockchain Dubai Founder
  • 26. 26 CSE w w w. c s e t o ke n . i o BLOCKCHAIN 3.0 w w w. c s e t o ke n . i o THANK YOU CSE