WELCOME TO THE FUTURE OF P2P FREE MARKETS!
GNEISS (Global Network Encryption Investment Security Service) White Paperhttps://gneiss.io PrimerBlockchain: A complete record of every smart contract transaction executed, all of which is stored in a public ledger (the Blockchain) created by collaborating online computers. A specific amount of transactions are stored in “blocks” of data sets. The blocks accumulate in a linear, chronological order to compose the “blockchain.”
Bitcoin: Digital currency that was the first algorithm to utilize blockchain technology and encryption techniques to generate units of currency and verify the transfer of funds, independent of any central bank.
Ethereum: A public blockchain platform that powers smart contracts via apps created by developers around the globe. Ethereum’s computing platform is Turing complete, meaning it makes up a decentralized virtual machine that can execute any peer-to-peer smart contracts.
Smart Contracts: Computer protocols that facilitate, verify, or enforce electronic contracts between peers. Every E-Vault, crypto-asset, or electronic contract is considered to be a smart contract. With smart contracts, developers can create truly free, peer-to-peer marketplaces, store registries of debts or promises, and move funds without the cost or risk of third-party (middle man) entities. Rather than relying on trust (of third-parties such as banks or financial institutions), smart contracts rely on algorithims, which take the risk of fraud out of the equation.
Crypto-Asset: A digital representation (or token) of a GNEISS user’s electronic or physical asset in which encryption techniques are used to regulate the generation of units and verify the electronic transfer of assets.
E-Vault: The GNEISS user account, which interfaces with the user’s Ethereum wallet, and shares the same address as their personal Ethereum wallet address. Later versions of GNEISS will give the option for the users to privately handle their own wallet keys at the user's risk and/or swap out ETH address for new one while maintaining the same username and E-Vault rating system.
Abstract. GNEISS is a powerful blockchain platform that operates as a digital marketplace where user’s can trade assets, goods and services using a digitally-encrypted, peer-to-peer exchange system. With its exchange platform, users can create, transact, and destroy any crypto-asset or smart contract in a personal “E-Vault” utilizing the Ethereum blockchain. To achieve the same market trading capabilities as the GNEISS platform provides (with only a few keystrokes), users would have to know advanced code to create, use and destroy their own crypto-assets using blockchain technology. In short, the GNEISS app essentially replaces traditional dependency upon third-party market vendors (such as banks) to make transactions, and also provides a unique capacity for users to easily create crypto-assets of their choosing to trade in a digital marketplace via smart contracts. The value of an asset created by each user is set by the bitcoin market value. The asset itself may be tangible (a gold-backed digital coin), or as intangible as time (volunteer or billable hours). Each user who develops an E-Vault is required by law to uphold any smart contracts made, however, the GNEISS app provides an added security measure. To guarantee no major loss of return to users, all crypto-assets and smart contracts constructed by E-Vaults using the GNEISS app have the option to be collateralized, or not. If collateralizied, the value of smart contracts will be held by the equivalent value of all secured coins or smart contracts in bitcoin, Ethereum, or any other crypto-asset in an Ethereum algorithim-based escrow account. The value is then returned to the user after the smart contract has been fulfilled, or force liquidated. Forced liquidations will unfortunately happen from time to time when the value of the user’s asset exceeds the value of the collateralized coin or asset. In such events, the user has the option to specify back-up E-Vaults to buy assets from in case the current E-Vault is prematurely forced to liquidate. If users properly take advantage of the back-up buying system, once they receive their gains from a force liquidated contract, their E-Vault will reinvest into other selected secured crypto-assets or contracts. In time, this will create a performance-based rating system since the free market will easily show the most trustworthy E-Vaults with which to do business. Such direct and immediate transparency returns market power to the most trustworthy people and online market makers.
1. Introduction Online investing and everyday finance has come to rely solely on the “too big to fail” financial institutions serving as trusted third parties to process electronic payments or contracts. While the current financial model works well enough now, it has many weaknesses. Banks are subject to many risks, from a single point of failure to the potential for massive corruption. GNEISS is not subject to these risks because of its decentralized, peer-to-peer exchange system that operates with lower fees, greater transparency, and accurate history of all transactions using smart contracts recorded by Ethereum’s public blockchain. A decentralized asset exchange system such as GNEISS could potentially host millions, if not billions, of E-Vaults, which would create greater economic growth for all. Instead of the 4,000 and declining number of “too big to fail” banks competing for limited business for the best E-Vault performance rating. Thus, GNEISS could securely automate the entire infrastructure of banks or financial institutions by maintaining the public record of transactions while offering complete anonymity for users. GNEISS allows users or businesses options on what transactions to make public or keep private. Those who want to make public the contents of their E-Vault smart contracts can do so by sharing their E-Vault’s Ethereum wallet address. Other users or businesses who want to make their E-Vault address public, yet trade privately, have the option for every crypto-asset to be confidentially recorded on the Ethereum blockchain.
2. Peer-to-Peer Smart Contract Transactions Each E-Vault crypto-asset or smart contract has a chain of digital signatures stemming back from its origin, recording and enabling each step of the peer-to-peer smart contract transactions in the entire GNEISS system. Each E-Vault user transfers ownership of any crypto-asset or smart contract to the next E-Vault by digitally signing that coin’s record with a hash of the previous transaction and the Ethereum public wallet key of the next E-Vault. In order to verify authentic ownership of the chain, a user can search the signatures and recorded history back to the crypto-asset or smart contract’s inception. This way the entire system is instantly auditable by either public or private parties. Every transaction is stored in the Ethereum blockchain, which is composed of around 6,000 nodes at the time of this writing. Anonymity is insured with the GNEISS app because only the activity of the E-Vault’s wallet address can be seen by the public. One of the unique features of the GNEISS app is that it offers the option to privately match a E-Vault wallet address with the proper information for verification, Know Your Customer (KYC) and Anti-Money Laundering (AML) legislation.
All smart contracts have the option to be public or private while being self-enforceable through the Ethereum blockchain, which automatically controls the funds and payments of any contract deal. This is accomplished by isolating every possible event into a “function.” These functions are default (or independently programmed operations) that all interact with the Ethereum network separately in order to verify each function or transaction. Additional information can be stored in Ethereum smart contracts in the form of integers, strings, or data.
3. Secure Crypto-Assets and ContractsEach crypto-asset and smart contract has the option to be collateralized with Bitcoin, Ethereum, or any other owned crypto-asset along with what percent of the asset or contract is fully covered. For example, if an E-Vault created a 50% collateralized gold coin asset then the issuer of that gold coin has 50% of the value represented by the gold coin in GNEISS’s escrow collateralized smart contract holding system. If the issuer of the gold coin at any point does not have 50% in their account balance to cover their collateralized contract, then the platform automatically starts liquidating the amount of gold coins needed in order to fulfill the 50% collateralized contract obligation. Every liquidation default negatively impacts that E-Vault’s credit score. Thus, the most professional E-Vaults will reveal themselves through time and will create a strong free market, as opposed to today’s house-of-cards banking system. Any smart contract can also set a predetermined amount of collateralized obligations to insure any loan, derivative, or insurance smart contract.
4. Ethereum Smart Contract Fields & FunctionsThe Ethereum smart contract fields and functions all make up the backbone of each peer-to-peer transaction in both Ethereum and GNEISS. Each one is defined as follows:
Smart Contract Fields: The fields of any smart contract store integers, strings, and data. Utilizing all three of these, any smart contract can be given specific properties to accomplish functions that any normal computer can do, and more. All smart contract data is stored on the Ethereum blockchain for security, auditing, and optional transparency.
Smart Contract Functions: When a GNEISS smart contract is created, functions are linked to the created contract. Only the users can call functions on smart contracts with the allowed permission.
5. Ethereum Blockchain & HashingIn order to implement a record-keeping system that gives every user the option to publicly display crypto-assets or contracts, GNEISS needs a public blockchain that is Turing Complete and has the ability to store data privately or publicly. Since Ethereum is the most popular Turing Complete public blockchain with over 6,000+ nodes, it is undeniably the most powerful and technologically superior blockchain. Utilizing Ethereum’s blockchain requires an online connection and programming knowledge in Solidity (Ethereum’s programming language). However, GNEISS makes any Ethereum contract incredibly easy to manage through the GNEISS platform (
www.GNEISS.io) by automatically: 1) organizing files, 2) enacting Ethereum contract transactions through the Function Manager, and 3) providing a Graphical User Interface (GUI) that any non-techie can understand. Each financial transaction stores the GNEISSAddress, functionName, data, and date. The GNEISS interface neatly recalls this data and presents it in the easiest way possible.
6. GNEISS Network The steps to run any transaction through the GNEISS network are as follows:
User interfaces with the GNEISS portal or Ethereum’s network
New transactions are broadcasted to all Ethereum nodes
Each Ethereum node collects new transactions into a block
Nodes accept the block only if all transactions in it are valid and not already spent
Nodes show their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash.
Ethereum nodes will always recognize the longest chain to be the correct one, and work on extending it over any other smaller chain. If two nodes broadcast different versions of the next block at the same time, then some nodes may receive one or the other first. When that happens, they work on the first one they received, but save the other blockchain branch, in case it becomes the longest chain. The tie is broken when the next block is found and one branch becomes longer and therefore dominate. The nodes that were working on the shorter blockchain will then switch to the longer one. New initiated transactions do not necessarily need to reach all nodes. As long as they reach many nodes, they will get into the blockchain. If a node does not receive a block, it will request that block when it receives the next block and realizes one is missing.
7. E-Vault IncentivesAny financial system that seeks mass adoption from consumers needs to offer incentives, whether it be ease of use, or monetary return of investment. Most users will be incentivized to use the GNEISS network because it is the easiest and safest way to securely invest your money. Users’ E-Vaults are developed to have the option to tax any crypto-asset or smart contracts either through transactions, or a predetermined timely interest rate. By giving E-Vault users the ability to tax what they create, the GNEISS network generates healthy competition by creating a massive free market. As long as there are plentiful E-Vaults, competition alone will generate the lowest and most competitive fees of any current investment system or marketplace across the globe.
8. Privacy Traditional banking used to be somewhat anonymous in the Gold Standard days. Paper currencies and precious metals secured customers’ privacy because no data was recorded after trading, unless it was documented by the involved parties or banks. However, the advent of the technical revolution allowed banks to integrate their practices with computers, and eventually, the Internet. With Internet banking, third parties could offer convenient systems that made personal online banking effortless, but at the cost of customers’ privacy. Every debit and credit card transaction is now recorded along with the exact details of that transaction. Some third parties even resell this information for marketing purposes, which is obviously unethical.
The GNEISS platform fixes all of this by offering the same convenience consumers have grown accustomed to, while maintaining users’ privacy and anonymity. This is accomplished the same way as bitcoin transactions since both use roughly the same blockchain technology. Each E-Vault has a unique randomized address (GNEISS Address) which is its identity. E-Vaults that wish to be public can identify themselves with their unique GNEISS Address. E-Vaults that wish to stay anonymous need only identify themselves with their given GNEISS Address. For extra anonymity, when E-Vaults transact coins or contract with each other, they have the option to
make that transaction public or private. Thus, GNEISS provides multiple layers of privacy and anonymity for every E-Vault user.
9. KYC & AMLAuthorization to use the system is governed by permissions. Each GNEISS user in the system has to have access granted to them by the GNEISS contract which is controlled by its owner. This allows for validating, adding or removing any GNEISS users. Each functional smart contract can create and manage contracts that make up the system. In order to become functional, a smart contract must satisfy the requirements set by GNEISS, (i.e., the KYC/AML and completed Agreement). Once these are satisfied the permissions are updated and the GNEISS user’s smart contract becomes active.
10. Conclusion The GNEISS platform is the first digitally-encrypted, fully automatic peer-to-peer exchange system which allows users to accomplish the creation, transaction, and destruction of any crypto-asset or smart contract in a simple website interaction. Anyone with an Internet connection can start their own E-Vault, trade any crypto-asset on GNEISS’s platform, or the Ethereum network, and feel safe knowing their investment can be fully collateralized. GNEISS is powered by the Ethereum blockchain which means it's smart contracts are enforced by complex algorithms, rather than having to rely on trust of third parties. GNEISS users also can take full advantage of Ethereum’s Turing complete architecture by using GNEISS’s template smart contracts or coding in their own. This app provides a secure and easy-to-use platform for all consumers as an alternative to the traditional banking sector, bringing financial freedom and marketplace equality to all.
Public Service AnnouncementAny Crypto-Asset creation or transaction on GNEISS costs either a very tiny amount in Bitcoin or Ethereum. If Transactions are not working please make sure you have a minimum amount of Bitcoin and Ethereum in your E-Vault. Notifications will be built in the website later but as this is the Alpha we do not have every feature programmed yet.
******** To Create your own crypto-asset in gneiss.io: Deposit a little ETH (at least .1), click the "+" button,********
******** Fill in ONLY "Crypto-Asset", "Can Mint/Burn", and "Total Amount" at Crypto-Asset Creation page then hit submit ********
************************ Should see the Txt Hash pop up on the screen if done correctly ************************
