20 Nov Metaverse – Securing Creative Properties in the Blockchain
Metaverse advertises itself to be a decentralized platform of digital identities and smart properties. Based on public blockchain technology, the project aims to define digital identities and assets and verify ownership digitally. Users are able to digitize assets through smart agreements and digital ID, and Metaverse can then connect separate store of value to form a digital representative. Metaverse is built by ViewFin, one of China’s first and largest Blockchain companies which boasts nearly 100 employees. ViewFin has been featured on EconoTimes, Forbes, and MaxKaiser as being a leading blockchain platform.
Metaverse is based upon BTC and its blockchain technology, with the added functions of Digital Identity and Digital Assets.
Initially, due to CEO Eric Gu’s ties to Vitalik Buterin, Metaverse was to be on the Ethereum network. But with the many flaws of Ethereum exposed during the DAO hack and subsequent hard fork, Metaverse was then built as a standalone blockchain moving forward with inspirations from BTC, ETH, and BTS.
Properties are registered digitally by utilizing blockchain ledger system, similar to asset-backed securities. Ledger data can be used publicly stored and verified to uniquely identify assets, aside from recording transactions. Avatars are also created on the Metaverse platform to create digital identities assume ownership of Smart Assets.
Any valuables, including artwork, antiques, intellectual properties, and earnings rights, are capable of being registered on Metaverse. Asset registration will incur a fee in ETP. This fee will be based on a weighted algorithm model.
The process of asset registration involves identifying the property with a set of data that will define it. A data format is provided to identify the key characteristic of a property. Metaverse will then rely on data feed, provided by its Value Intermediaries (Oracles), to prove an asset’s value when it is committed in a transaction.
Property attribute description for registration.
Once registered, the asset must be recognized through the Proof-of-Asset protocol before gaining the attributes of a digital asset. Smart Assets carry two types of attributes, value and editable attributes. Editable attributes will be reflected by trading and changes in market value, which means smart assets will share the same market constraints experienced by normal circulation.
Avatars are the symbol of the user’s online identity. It is used to represent your ID and ownership to the user’s digital asset. Valuable information will be attached to each avatar’s unique index and encrypted to ensure data privacy. Unless authorized by the usage of private key signature, special transaction and smart contracts, no individual will have access to an avatar’s encrypted and unencrypted information. Zero-knowledge proofs and homomorphic encryption will also allow for the retrieval of data such as credit scores and validation results without revealing identity or content.
The platform will provide a personalized resume for each avatar. In exchange for an information storage fee, users can access a customized tamper-proof record. Timestamps and public/private key encryption will contribute to protect ownership information. Oracles will authenticate avatar identity.
An individual, AI, company or organization can be represented by an avatar. A single avatar may hold multiple types of smart assets, and a single asset can be owned by multiple avatars. The complex many-to-many asset relationship will more accurately reflect ownership in the market. A diversity of uses can be applied onto smart assets, including transactions, borrowing, leasing and mortgages, etc.
Oracle nodes are intermediaries in the Metaverse network and are used for inputting data, group arbitration, and a guarantor function. Acting as middlemen, Oracles can store physical assets and issue smart assets on the blockchain. Authentication nodes can provide proof of personal information and correlation with avatar. Supervision nodes can regulate special transaction and provide proof such as transaction authenticity and compliance proof.
Metaverse transaction process will follow as such. User A registers asset P and sends the property information to user B. The Oracle nodes verifies the asset, and user B then receives the asset transaction and user A their payment.
Transaction process visualized above.
With Bitcoin’s framework at its foundation, Metaverse has inherited the Unspent Transaction Output (UTXO) methodology with a denomination and address/digital ID. Transactions will contain inputs from UTXOs and are processed similar to BTC.
Native tokens on the Metaverse platform are called Entropy, or ETP. The total supply in existence is 100 million and is secured by ECDSA, or elliptic curve digital signature algorithm. ETP tokens are not meant to be a form of digital currency, but they are the equity of Metaverse and are not tied to any fiat or cryptocurrencies. Entropy is properly used to measure the value of digital properties in Metaverse or as collateral in financial transactions. ETP is also used wherever system fees apply, such as the creation of a new Smart Property, Avatar registration, or Oracle application.
It should be noted that there is a micro-inflation mechanism installed within Metaverse. In order to accommodate lost tokens, provide liquidity, and adjust for more future smart properties, a micro-inflationary linear issuance scheme is planned. At the end of the PoW phase, 4 million ETPs will be added to the circulation annually. The 4% inflation rate will trend down gradually towards 1%.
As mentioned above, zero-knowledge proofs (the same zk-SNARKs utilized by Zcash) will not only allow for the retrieval of sensitive data without revealing content, but also to secure users’ identity and privacy.
Metaverse development will progress in two phases. A PoW consensus will be applied first and will provide digital identity, asset registration and transfer, built in scripts, datafeed, etc. The blockchain will be able to support any consortium blockchain, creating an open system. In the second phase, Metaverse will move over to a modified DPoS-based consensus algorithm, where voting power is weighted through ETP holding periods and user activity. For the time being, ETP uses PoW instead of DPoS because PoW is proven as relatively safe, meaning that the digital assets are safer on a PoW chain for now. Once DPoS has proven to be just as secure (if not more so), the staff have mentioned plans to switch to it. But at this time, it doesn’t appear that that will happen soon, as DPoS has a long way to go before it’s ready.
As the platform was based upon BTC, it is also susceptible to the problems of blockchain.
As adoption grows, it will also eventually face the scalability problem of block size limitation. The planned solution is full node operations by miners.
Metaverse is also susceptible to 51% attacks and mining centralization. The team hopes that by optimizing the mining algorithm to a HBTH-DPoS consensus algorithm, the problem could be avoided or mitigated.
CEO – Eric Gu One of the most respected blockchain veterans in China. Co-Founded Antshares (NEO) and has worked closely with Vitalik over the years, even being responsible for touring Mr. Buterin across China on his the first time. Having strong connections with Vitalik and DaHong Fei will allow for the projects to assist each other and grow together. Eric founded ViewFin in 2014, and within 6 months there were more than 20 ICOs already interested in using their platform.
CTO – Hao Chen, co-founder of ViewFin with Eric Gu, is the mastermind behind the HFT Digital Asset platform. Hao has many years of experience in the development of payment and settlement systems and is a known contributor of many open-source projects.
The technical and global development team of Metaverse can be found at https://mvs.org. The team is proficient in C++ and Python, among others. The ETP project is built with C++ and Python primarily as well.
ViewFin itself has nearly 100 employees per their LinkedIn, which is impressive given that they had only 17 employees in 2016 according to an interview with Eric Gu by Smith & Crown. Metaverse is the main project of focus for ViewFin, but the team is also working on BAAS, Blockchain as a service (similar to OnChain’s DNA and NEO, but with a focus on Digitizing assets with Oracle middlemen and flexibility of listing any asset that exists. The latter is similar to the way Bitshares is designed).