Class 3 – Artdotchain White Paper

 BLOCKCHAIN TECHNOLOGY

By: Engineer Guillermo Arturo Arango Jaramillo

 ARTDOT–TECH™© ACADEMY

Medellin, Antioquia

17 April, 2011

 

FT Artdot: A Store of Value of Man/Hours
Guillermo A. Arango J.
guillermo.arango@artdottech.com

 

Abstract. A monetary system achieved by consensus of all the members of the system that can create infinite and inexhaustible wealth where the working hours of the people who work can be stored in a digital token. Then, the value of their works can be transferred from one to another without the intermediation of a third party, not based on the trust or honesty of the users but on the security of cryptographic blocks linked to each other and without the current transactional barriers.

It is ideal that the work that people do has a payment that leads them to financial independence and at the same time contributes to the wealth of their nation without generating conflicts with their leaders who perpetuate the slavery of their peoples through the traditional financial system that creates debt for its inhabitants year after year.

A system of validation of work in Digital Art is then created that requires millions of man-hours that allow the creation of millions of jobs for a long time and that its payment is made with the value of the work done. This valuation of work in man/hours increases in value every day and thus avoids volatility or speculation in its value and also does not require that one user compete with another or that its value enter a supply and demand market to guarantee profit with 100% certainty to all the users.

At the same time, the use of this new technology, new economic format, does not exploit either the natural resources of the earth, or the work of people, but, on the contrary, what is exploited is time. That this work be used in the form of provision of services by users of the network to each other. This new form of economy by consensus minimizes the irresponsible exploitation of natural resources that until now has been the conventional way of creating wealth.

 

1. Introduction

 

The world economy has been based for many years on a system of indebtedness that finally ends up paying the people of each nation with work that is paid at a very low cost and increasingly requires more work with less pay for it.

 

It is essential that this type of slave economy ends and that people receive payment for their work that leads to financial independence worthy of every human being and to eradicate once and for all the poverty that humanity lives. It makes no sense to exploit the planet for its natural resources to turn them into widespread poverty and the exclusive wealth of a few.

 

The universe is full of infinite wealth. The planet has resources for everyone that, exploited in a responsible manner, can continue to transform the course of technological progress that man creates every day, so why do we have to live in precarious scarcity on the part of the majority of its human inhabitants?

 

Increasing this wealth with services implies reducing dependence on the exploitation of natural resources to create wealth and abundance. This is why if we manage to create a service that generates inexhaustible wealth, we can then have so much wealth created that we can distribute it among everyone so that there is no shortage for anyone.

However, it is necessary that this wealth be created with work but that this work does not consist mainly in the exploitation of nature, nor in the exploitation of people, but rather in the exploitation of time and that people spend their time generating this wealth with a service they can provide.

 

This is why here it will be explained in detail the way in which infinite and inexhaustible wealth can be created where every human being on earth has equal access and can generate this wealth using their time and the technology that will be described here to aim the reach of that point.

 

The basic principle to create this infinite and inexhaustible wealth consists of an economy by consensus where we all agree to the rules, that the work of each one becomes man/hours that can be stored in a digital tool where double-spend is avoided so it can be used as a form of payment between each other or as a currency in a safe manner and with the necessary guarantees so that it cannot be counterfeited.

 

This digital tool must operate in a way that does not depend on the trust or honesty of its users, but rather on transactional security that guarantees that a payment is real, that it cannot be modified, altered, deleted or falsified, and that any attacks on the system can be discarded without affecting the system itself. Also, it should be done in real time if possible and that it can be done from person to person without the need for the intermediation of a third party to break institutional or governmental barriers but that comply with the laws of each nation and thus be able to be used globally for everyone.

 

This work will then propose a solution that represents an entire economic system that in itself generates infinite and inexhaustible wealth. Part of this system runs parallel to Blockchain technology, but without the inherent problems of that ledger system, its enormous energy or computational expenditure or that it is based on competition from one another. This solution also does not depend on a supply and demand market and the proof of work carried out by the Blockchain technology nodes is carried out in this new technology in a similar way by people from a network of users, creators and validators of the system that provide these services that ultimately end up creating that infinite and inexhaustible wealth.

 

2. Man/ Hours

Once the images are converted to the new format, the microscopic text that makes up the image is required to be verified, validated, and be correct so that it meets the requirements and conditions set forth and accepted in the ecosystem of this new economic system. Converting one of these standard digital images to this new format requires a job of medium difficulty, but thousands of hours of work. This generates the need to employ millions of people who can carry out this work on their PCs from anywhere in order to convert the images to this new format.

 

Once the images are converted to the new format, the microscopic text that makes up the image is required to be verified, validated, correct and that meets the requirements and conditions set forth accepted in the ecosystem of this new economic system. In this way, guarantees are given that the digital image (Digital Art) is unique and unrepeatable and guarantees the rights of its creator and that their work is classified as Digital Art that cannot be plagiarized or falsified. This verification and validation work is carried out by the certified validators of the network of users of this system.

 

The conversion of a standard digital image to the new format is called an Artdot digital image (NFTA- Non-Fungible Token Artdot). The conversion is done by fractions where the basic unit of the system has 13 columns and 80 rows of characters with 1,040 fractions with 10 characters each. This basic unit has a size of 1-3 pixels and its characters have an average size of 0.005 pt. The font with which this work is written has a size of 12 pt as a reference, that is, 2,400 times larger than a character of this new digital image (NFTA).

 

The average time for the creation, verification and validation of each fraction of 10 characters is 3 minutes and therefore 3,120 minutes or 52 man/hours are required on average to carry out this basic fractional unit.

 

This new image of the basic fractional unit can be made by any user of the system's network, thus giving the opportunity to all network users to be creators of this type of Digital Art and have the copyright on it.

 

The size of this fractional unit has a limited resolution and if you want to obtain an image with a higher resolution, then thousands of basic units must be created and that is where millions of man/hours are required and thus the generation of massive and perpetual work.

 

A standard image to be converted to this new format of a similar resolution requires 1,000 million fractions of the size of the basic unit and a time of 5,707.8 years in man/hours. These hours of work carried out by the creators of this Digital Art and certified validators are stored in a digital token (FT Artdot) that represents its value and that can be transferred from one network user to another through their wallet.

  

3. Consensus economy

 

This economy by consensus consists of an agreement between all users of the network to validate the digital images in the new format with a standard value of man/hours for each fraction that comprise them and that this value is stored in a digital token (FT Artdot ). Likewise, all users agree that the value of the man/hours increases in value every day, guaranteeing that there is no volatility in the value of the token and that it is always on the rise. All users of the network also accept that the increase value of the man/hours is not established in a market of supply and demand but in a central platform where, by means of a random algorithm, the increase is set each day at a value equivalent in grams of gold or in percentage.

 

The users of the network also agree that the reward for their work is made with a payment in the digital token (FT Artdot) of the ecosystem and that this works as a form of payment or currency. Additionally, by the network's consensus rules, all fractions (NFTA- Non-Fungible Token Artdot) of 10 characters start with a value equivalent to no less than the equivalent value of 16 grams of gold and can never be sold or auctioned for less than its initial retail value posted on FT Artdots. This guarantees that all the fractions of NFTA will always have a higher value in FT Artdot for each sale made and it is also guaranteed that the owner of it always has a profit.

 

4. The network

 

Unlike the Blockchain network, the network of this system is made up of people instead of nodes that will do the proof of work and will visually verify and validate the conversion of both digital images to the new format and transfers of value in man/hours stored in the digital token (FT Artdot) of the ecosystem.

 

Each user of the network has the right and possibility to convert standard digital images to digital images converted to microscopic characters that will be published on the central platform or with third parties that have the license to do so. These creator users are called “Artdot Miners” (AM) of the network. These new digital images will be validated by network users who have been certified with their training as network miners called "Artdot Certified Miners" (ACM) and who are in charge of visually verifying and validating that the fractions of each image comply with conversion protocol requirements. Once a fraction has been verified and validated, the system assigns it a hash for identification, authenticity and uniqueness to be published on the network´s servers for the verification availability of all network users. The value of each fraction of man/hours is converted and stored in the global balance of the system in the digital token (FT Artdot) that represents it and the creator obtains the copyright on the fraction of the converted image.

 

The creator of the image (the Artdot Miner) has the options to sell their Digital Art on the central sales platform publicly or privately or they can hold a public or private auction of it on the central auction platform and receive payment in the digital token (FT Artdot).

 

Regarding the validation of the transactions or transfers of the value of the digital token (FT Artdot) of the ecosystem, the certified network users (Artdot Certified Miners) carry out the verification and validation work. The verification and validation protocol consists of a timestamp signature with the respective transaction information in hash format that prevents double spending. Each hash is linked one after the other in the form of a block similar to those of the Blockchain network called Artdotchain here but without the energy or computational expenditure that the Blockchain system requires.

 

5. Proof of work

 

It is the consensus algorithm and physical work of users in the Artdotchain network that convert standard digital images (Digital Art) to Artdot digital images (NFTA- Non-Fungible Token Artdot) to store man/hours in FT Artdot (Fungible Token Artdot) that must be verified and validated by users of the Artdotchain network approved as “Artdot Certified Miners” (ACM) in exchange for a payment in FT Artdot (the FT Artdots mining payment).

 

The work of Artdot Certified Miners (MCA) consists of:

 

1.      Converting standard digital images to Artdot Digital Images called NFTA (Non-Fungible Token Artdot), the Digital Art of the Artdotchain network ecosystem.

2.      Carry out the mining of FT Artdots through the verification and validation of the proof of work of the creation of NFTAs and thus store the man/hours in FT Artdots.

3.      Validate the NFTAs of all the users of the Artdotchain network to obtain their digital signature and hash and enter the Artdotchain network with their respective validations in man/hours stored in the FT Artdots.

4.      Validate the time stamp and the respective information of the transactions that are converted into the hash that can be verified on the public servers of Artdotchain network.

 

In order for a 10-character NFTA fraction or FT Artdot transaction to be verified and validated, it requires physical review by 10 randomly selected Artdot Certified Miners (ACMs) from across the Artdotchain network linked in real time to the Artdotchain network servers reaching a consensus approval of at least 6 of them.

 

The verification and validation will be published and the creator of the NFTA image or the user who makes a transfer of FT Artdot may approve the verification and validation of the 10 Artdot Certified Miners (ACM) or demand a maximum of 1 time for the process to be carried out by 10 new Artdot Certified Miners (ACM) in a period of time not exceeding 2 minutes from the publication of the operation in the Artdotchain network.

 

6. The incentive

 

Users of the Artdotchain network spend time converting standard digital images (Digital Art) to Artdot digital images called NFTA (Non-Fungible Token Artdot), the Digital Art of the Artdotchain network ecosystem.

 

This work is called “FT Artdot Mining” (FTAM), the reward in which the value of the man/hours of each conversion is deposited into the digital token of the ecosystem called FT Artdot (Fungible Token Artdot). The value of these Artdot NFTA (Non-Fungible Token Artdot) images is represented in value deposited into FT Artdot (Fungible Token Artdot). Artdot Miners (AM) can sell their creations to the general public or hold a public or private auction with them and receive the payment equivalent to its value in FT Artdot (Fungible Token Artdot). Artdot Certified Miners (ACM) who work for the Artdotchain network receive fixed monthly payments of no less than the equivalent value of 200 fractions of NFTAs. Also, a payment of a fixed commission for each image they create for the system equivalent to 2 fractions of NFTAs. Finally, a commission payment for each verification and validation of NFTA fractions of 10 characters or FT Artdots transfers equivalent to 0.05% of the value of these in FT Artdot (what in the Blockchain network is called the fee of the nodes).

 

The fee for each FT Artdot transaction is equivalent to 1% of the transaction´s value which is distributed as follows:

 

0.5% for the central platform or platform of wallets with a license to operate.

0.5% for the 10 Artdot Certified Miners (ACM) randomly selected from the entire Artdotchain network in charge of verifying and validating the transfer of FT Artdot from one owner to another.

 

The conversion rate of 1 man/hour is equivalent to:

 

20 fractions of an NFTA plus the equivalent percentage of the daily increase in the value of the man/hours in FT Artdot of the central platform accepted by consensus throughout the network, where the initial value of 1 fraction of NFTA of 10 characters will never be lower of the value equivalent to 16 grams of gold.

 

Note that the initial value of a 10-character NFTA fraction (the base unit of an NFTA fraction), will never go below the equivalent value of 16 grams of gold, ensuring that its initial value is set at the equivalent exchange in FT Artdot. Therefore, with the consensus policy of daily increase of the man/hour in the system, it is guaranteed that the creators of the NFTA images will always make a profit since 1 fraction of NFTA cannot be sold or auctioned for less than the value assigned in FT Artdot. This means that all the fractions of NFTA (Non-Fungible Digital Art) will always be quoted higher each day at the exchange rate and that its value in FT Artdot will always go up for each sale it has since the sales or auctions are carried out with its value in FT Artdot.

 

7. Transactions and transfer validations

 

We define the FT Artdot as the digital token that stores the man/hours value of the work done by the creators of the Artdot images (NFTA). The owner of this stored value represented by the FT Artdot digital token must have a way of being able to transfer any amount of it to another user of the Artdotchain network so that the entire ecosystem makes sense and the accumulated wealth can be shared among all. However, carrying out the transfer of said value requires an effort to guarantee that the transferred value reaches the correct network user on the one hand and on the other hand that the network user making the transfer cannot send again the same value two or more times.

 

To achieve this goal and thus avoid double-spend, the system randomly assigns 10 Artdot Certified Miners (ACM) that are connected in the Artdotchain network that physically verify and validate the transaction in real time with the transaction data and the allocation of a timestamp from the timestamp server. Each of the 10 Artdot Certified Miners (ACM) has a different timestamp and these timestamps and the transaction data (owner 1 public key and owner 2 private key, plus transaction information) have a hash that it is chained in the order of verification and validation of each one of them, creating a block that generates a hash that is published in the Artdotchain network, in this way the transaction is validated avoiding double-spend.