Adel ▲ White Paper ▲ Creating Value with Cryptocurrency

adel-white-paper-icons-v2-3_4

▲ Identity Series

By: Gabriel Dusil, Co-founder & Board Member, Adel
By: Michal Vavrek, Founder & Board Member, Adel
By: Travin Keith, Marketing & Blockchain Advisor, Adel

Abstract

This white paper outlines Adel’s advantages from three vantage points: a) Blockchain technology, b) the Nxt (and soon, Ardor) platforms on which Adel is built, and c) additional business processes Adel has introduced into its ecosystem to provide effective, community-based development and funding.

Ecosystem

Since the inception of Bitcoin in 2009 by Satoshi Nakamoto, there have been numerous developments into blockchain technology. Adel will further these developments by creating an ecosystem to promote the use of blockchain technology and create solutions in various industries. The ecosystem will leverage the expertise of the Adel Board, the R&D team, the Project Review Committee, and members of the community, while at the same time creating a supportive environment for innovative projects. Adel’s token, known as Adelphoi, will be used as a basis for distributing rewards from these projects. The success of these projects will thus directly influence the intrinsic value of Adelphoi.

Legitimizing Cryptocurrency

All members of the Adel community will work for the benefit of the ecosystem. Projects have the potential to span profitable industries such as IT, banking (Financial Technology, FinTech), insurance and healthcare as well as supporting humanitarian initiatives. Participation in these projects will be possible by holding the Adelphoi token. Each project will thus create unique opportunities for community members through the creation of new business and employment opportunities.

Advantages ▲ Blockchain & Cryptocurrency

Bitcoin is a decentralized, distributed application that uses a public ledger – the blockchain – to store and transmit cryptographically secured tokens. Representation of wealth is recognized when both the sending and receiving parties mutually agree on this premise. The blockchain paradigm requires mandatory publication of the source code under established open source licenses. This has resulted in a vibrant community of developers who have created many variations of the original protocol, ranging from simple copies of the code to truly evolutionary improvements.

Blockchain v2.0: Utility Beyond Money

The widely-known blockchain evangelist, Andreas Antonopoulos, has likened Bitcoin to ‘money being the email of the blockchain’. He was comparing the invention of blockchain to the introduction of the internet in the early 1990s, when people could not differentiate the internet from its first application: email. Once a second application of the internet was introduced – the World Wide Web or WWW – it became clear that email and the HTTP protocol were applications that ran on top of the internet. Likewise, this explains the confusion of Bitcoin and cryptocurrencies in general to the blockchain, where currency is the first use case of blockchain technology. With this realization, there has been an emergence of innovative applications that plan on taking advantage of decentralized open ledgers, i.e. the blockchain.

There are several well-documented advantages related to using blockchain technologies for financial and administrative purposes. These advantages are listed below in order to demonstrate the unique suitability of emerging blockchain technologies for the administration of economic systems:

  • Resilience ▲ Blockchain technology has a high level of redundancy and high availability which is unrivaled in the corporate world. The computers that manage the Bitcoin blockchain are collectively over 43,000 times more powerful than the top 500 supercomputers on the planet combined[i]. One cannot feasibly compromise these networks without acquiring a large amount of computing power to compete with the rest of the network.
  • Mobility ▲ Cryptocurrency users do not need to carry credit or debit cards. All they need is access to their online wallet to initiate a transaction. However, cryptocurrency credit or debit cards are slowly becoming mainstream.
  • Privacy ▲ Any participant of the ICO will have to identify themselves to meet minimum Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF) and Know your Customer (KYC) requirements. Aside from regulatory requirements, Adel will maintain privacy of client data where feasible. In fiat transfers, the sender’s and the recipient’s personal details are captured by all transfer intermediaries. These details can be used for invasive marketing purposes or more dangerous purposes such as ever more prolific identity theft.
  • Cryptographic Proof ▲ With blockchain technology, one does not rely on the trust of a third party. Thus, blockchain networks are usually called “trustless” systems. Preventing duplicate transactions or improperly generating coins is achieved through the use of an electronic payment system based on cryptographic proof and an open ledger which is auditable to anyone.
  • A Better Financial System ▲ Two and a half billion people on the planet do not have a bank account. Cryptocurrencies are perfect for extending financial services to remote locations and for helping to modernize developing countries by bringing them further into the global economy.
  • Serving Digital Society ▲ Blockchain has the potential for much more than just cryptocurrencies. New functionalities are being explored that utilize an open and auditable public ledger with the use of smart contracts, such as the Russian Central Securities Depository voting feature on the Nxt blockchain.
  • No Permissions ▲ No permission is needed to send or receive cryptocurrencies, whether this be from banks, intermediaries, governments, or other trusted third parties. The transfer of coins is agreed upon only between the sender and the recipient, and the owner has full control of his/her funds at all times. No authority can freeze a cryptocurrency account and seize its funds.
  • Lower Transaction Fees ▲ Credit card companies charge up to 3% per transaction, and in some cases even more. With some remittance systems, fees can be as high as 10% – 30% of the transferred amount. Cryptocurrency fees, if any, are several orders magnitude smaller.
  • Account Security ▲ Account control lies with the user via their private key. This private key can be kept offline (i.e. cold storage) for security purposes. Cold storage ensures that funds are not easily accessible to hackers.

Advantages ▲ Nxt & Ardor

Satoshi Nakamoto set out to create a decentralized digital currency that does not rely on centralized trust. He set out to programmatically remove the need for centralized trust by creating a decentralized and distributed ledger solution for monetary applications that prevents duplicate transactions and uses an open ledger that could be audited by anyone. Blockchain technologies are widely perceived as providing fiduciary integrity in the present macro-economic climate that is fraught with moral hazard, corruption, and systemic risks.

Since the launch of Bitcoin in 2009, several observations can be made with the benefit of hindsight: the blockchain is revolutionary in its design and has successfully proven its resilience in the goals it set out to achieve. However, weaknesses have surfaced in the services that complement Bitcoin. These services are mainly those that allow secure storage and trading of Bitcoin. These services have become susceptible to attacks from criminal individuals and organizations across the world who seek out flaws in the systems associated with the cryptocurrency with the goal of exploiting these weaknesses for their own benefit.

Since the launch of Bitcoin in 2009, significant developments have been made to the code. As of today, only around 15% of the code initially created by Satoshi remains in the core software. As is the nature of open source software, some developments have soon started outside Bitcoin, such as Litecoin and Namecoin. Eventually, as more attention was drawn to Bitcoin, especially due to the price spike to over $1000 in 2013, more clones were made. These new systems either proposed significant changes to the technology or just had minor adjustments as a clone of Bitcoin or another system. Nxt was also being created during this time. Unlike most of the platforms, Nxt was developed from scratch in Java, though it contained some of the same principles that Bitcoin introduced and built on them. The platform introduced a wide range of features to the wider community such as colored coins, later known as Assets, which can be created and transacted on top of the Nxt blockchain. This feature, along with many others, has made Nxt the pioneering platform of what is now called Blockchain 2.0. In 2017, Nxt’s core developers will be releasing Ardor, a blockchain platform that utilizes Nxt technology and allows users to create their own blockchains known as child chains, which are secured by the Ardor main chain.

Here we present the most salient features of the Nxt and, soon, Ardor platforms. This second-generation blockchain is utilized to implement different modules in the Adel ecosystem. A community that wishes to establish a viable economic ecosystem needs to address these issues and implement measures to mitigate risk. The following cutting-edge monetary and administrative features illustrate why the founders of Adel have chosen these platforms:

  • Proof of Stake ▲ This is a method used by Nxt (and subsequently by Ardor) to gain network consensus and prevent double spending. In this system, the active node (a device running the Nxt client and actively contributing to the network by forging the next block, thereby processing the pending transactions and acquiring the transaction fees), is determined by assessing the NXT balances of all nodes actively forging and gives a higher chance to forge to those that own a larger amount of NXT (i.e. their stake in the network). In this manner, each unit of NXT is akin to that of a mining rig for the purposes of determining who mines the next block in a Proof of Work system, where a higher level of hashing power gives a greater chance of mining the next block and claim its rewards. Since the determining factor is the balance of NXT and not computing power, the amount of energy used by all forgers is much less than that of a Proof of Work system. This makes it possible to forge NXT even with a Raspberry Pi.
  • Phased Transactions ▲ With Nxt, a set of conditions can be set in order for transactions to execute. For example, one party can set up future transactions on the platform (i.e. set to execute at a particular time) which is perfect for enterprise workflow scenarios and scheduling future payments. Users can also choose to have transactions processed only when another transaction has occurred, or when approved by other accounts. This latter implementation is otherwise known as a multi-signature, or multisig as multiple signatures.
  • Monetary System ▲ With Nxt, users can create their own currencies for their specific needs. This could be used for special events that give out event tokens to be used for redeeming certain products or services, or for online shops that give out special credits to be used within their store.
  • Decentralized Voting ▲ Decentralized polling for secure voting is possible with Nxt and will be used for various Adel projects, as well as for voting on the community itself.
  • Decentralized Marketplace ▲ While not directly implemented into the Adel ecosystem, the ability of the Nxt platform to have a decentralized marketplace could be utilized for future projects.
  • Assets ▲ Nxt allows for the easy creation of assets on the platform which are representations of certain products, be they digital or physical. An asset will be used to represent the contribution of a user in Adel projects to allow users to exchange these tokens with other users, as well as a determining factor of the amount of rewards they receive.
  • Asset Exchange ▲ Traditional cryptocurrency exchanges require the use of a centralized platform, as is the case with BitFinex, Kraken Poloniex and others. However, such centralized exchanges are always exposed to an inherent risk of failure, as was the case with Cryptsy[ii] and Mt. Gox[iii]. Nxt has developed a peer-to-peer internal exchange that offers decentralized trading, thus eliminating a single point of failure, as well as intermediary trading fees beyond the transaction fees.
  • Speed ▲ The average transaction time of Nxt is approximately 60 seconds per block. However, for Ardor, the transaction time can be delayed per child chain in cases where a slower transaction time is desired.

Advantages ▲ Adel

The Adel ecosystem is relatively independent of governments, international or domestic politics, as well as fiat economies. Its value is in leveraging Nxt and Ardor’s state-of-the-art blockchain technology, as well as the Adel ecosystem, and combining these technologies with best-in-class business practices. The Adel ecosystem is designed to implement the latest security features while also adopting best practices in business services. In creating a legitimate business on top of blockchain technology, Adel will demonstrate innovation and leadership with an organizational structure that is both sustainable and profitable. Here are some of the advantages of the Adel ecosystem.

  • Collaborative ▲ The establishment of a Project Review Committee which not only ensures that Adel will launch profitable businesses, but also represents legitimate, legal, and ethical projects. This is fundamental to the integrity of Adel and is vital to further legitimizing cryptocurrencies. Successful projects launched on Adel will help prove sustainable, long-term growth, as well as global monetization potential for blockchain technologies. After a project has been launched on Adel, whether it be from a proposal by the R&D team or an innovator from the community, the project manager will be adequately supported by the Adel staff, as well as community members participating throughout the lifetime of the project. This can either be in the form of expert advisory services, finding employees, or even assistance with securing additional external funding, such as with venture capitalists. Adel believes in utilizing expert decision makers to guide decisions made by the community. Once options have been authorized by the leadership, they are then submitted to the community for consensus, enhancement, and further decisions. This way, Adel establishes efficiency in the decision processes that guide the ecosystem, while also utilizing the experience and expertise of the community.
  • Resilient ▲ By leveraging the emergence of blockchain-as-a-service, Adel’s ecosystem was created so that participants have a collaborative platform to initiate, develop, showcase, and fund their innovations. Auditable financial transactions for all projects provides the foundation for a collaborative community capable of making important economic decisions. Adel provides a dynamic platform of entrepreneurship, freedom, management, communication, and technology. As a community-based ecosystem, Adel will create an open architecture for joint entrepreneurship while challenging contemporary business principles.
  • Prospective ▲ Community members will enjoy benefits such as access to the community portal which consists of a wide range of modules to collaborate, vote, and view the status of their account and projects. Members are also eligible for employment in any of these businesses and will receive first right of refusal before the general public.
  • Flexible ▲ Adel will have four types of projects that will be possible in its ecosystem:
    • If a project is introduced by Adel’s R&D team and it receives a majority of the votes, then it becomes a Community Project.
    • If a majority vote is not achieved, then it can become a minority or Group Project, if funded by members who support the project.
    • If a project is introduced by a community member or group of members (designated as the Innovator) and it receives a majority of the votes, it will become a Community Innovator Project.
    • If a majority vote is not achieved, then it can become a minority or Group Innovator Project, if funded by community members who support the project.
  • Exclusive ▲ Becoming a member to Adel’s community during the ICO requires a minimum investment of 1 bitcoin. After the 1st ICO this minimum will be increased to 2 BTC in equivalent Adelphoi (ADL). The voting system establishes the opinion of the majority (according to the amount of Adelphoi held by the respective community member). Social forums allow for open and constructive communications between community members who can ask questions, make comments and offer suggestions.
  • Principled ▲ As outlined in our white paper entitled “Maintaining Integrity in Equity Funding”, Adel’s integrity is the foundation of our success and for the sustainability of a profitable ecosystem. This integrity applies to all of Adel’s staff, as well as its community members.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained, and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing, and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Projects are chosen by the community and successful ventures are either re-invested in for further growth or issued as rewards to Adel’s stakeholders.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Michal Vavrek

Michal is an entrepreneur with international experience specializing in global business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business and worked in various capacities in New York, Zurich and Prague. Michal is an active cryptocurrency entrepreneur with an extensive background in Forex algorithmic trading strategies and is always seeking new opportunities that maximize blockchain technologies.

Travin Keith

Travin is a seasoned marketer who specializes in web and international marketing. He has worked with over a hundred businesses around the world spanning a wide range of industries. Since 2013, Travin has been involved with cryptocurrencies as a trader, investor, marketer, and community member. He joined the Nxt Foundation as a board member in 2016, serving as its Marketing Director and a Blockchain Consultant, as well as the representative to Hyperledger, a Linux Foundation Project.

References

[i] “World Bank: 75% of poor don’t have bank accounts”, By Anne Renzenbrink, 19th April 2012, cnn.com, http://www.cnn.com/2012/04/19/business/poor-bank-accounts/index.html

[ii] “Court Takes Control of Digital Currency Exchange Cryptsy”, By Stan Higgins, coindesk.comApril 4, 2016. http://www.coindesk.com/cryptsy-assets-frozen-as-florida-court-appoints-receiver/

[iii] “The Inside Story Of Mt. Gox, Bitcoin’s $460 Million Disaster”, By Robert McMillan, Wired.comMarch 3, 2014. http://www.wired.com/2014/03/bitcoin-exchange/

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

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