Service Platform based on Block Chain & New Cryptocurrency

1. Service Platform based on Block Chain & New Cryptocurrency POPCoin https://www.popbc.io/ White Paper Ver. 2.0 POPBC Foundation POPCoin White Paper

2. 1. Introduction POPCoin, a cryptocurrency platform, is created with an aim to let many companies and organizations easily use block chain technology. To make it possible, the block chain platform is adopted with a data communication function within private block chains and with a service plug-in function. Via POPCoin, network users can run various applications that they want to utilize based on block chain. Service plug-in architecture will support this to be performed easily. It also enables the block chain technology to be adopted to the killer applications that companies need the most such as E-commerce, document security, certification, electronic banking, IoT, AI and BIGDATA. Bitcoin, making its appearance in 2009, is a new electronic currency system, solved a double payment problem by using P2P network. It also broke away from a centralized system, and suggested a method in which multiple computers simultaneously record and verify. POPCoin adopts this concept as a basic architecture concept. POPCoin is a core protocol that utilizes the strengths of Ethereum and fixes its weakness, allowing software developers to create user-friendly applications. Also, POPCoin is designed to effectively reflect Ethereum’s architecture concept of Turing Completeness which supports various types of services including smart contract, currency transaction system, registration of stakeholders’ list, voting right system, DAPPs, and DAOs.API will be given for areas difficult to develop and to utilize. And its sources will be disclosed as an open platform where all kinds of contract and distributed applications are installed. POPCoin plans to improve crypto currency along with the dreams and plans of the people pursuing better future after the appearance of Bitcoin in 2009. Even if there is not enough credibility of future that the cryptocurrency offers, with a belief that the cryptocurrency will show the new value to people, POPCoin distinguishes itself from other altcoins by including diversity and generality. Various applied technologies being used easily, it will POPCoin White Paper

3. hand over the power exclusively possessed by those monopolizing information to general public from elites. After Bit Coin, mega corporations have used private block chains, avoiding the real innovation that the block chain would bring. In order to achieve real participation and sharing economy, the block chain technology is necessary to companies and participants that are isolated and lack of capitals. Many cryptocurrencies have made new trials, but there is no way for small scale companies and organizations to become the main agents to utilize this innovative and destructive technology. POPCoin will make innovative trials in order to let them become leaders in the era of new sharing and participating through crypto currency platform, block chain technology. With a strong belief that block-chain-technology-based cryptocurrency would bring genuine participations and realize sharing economy, POPCoin will provide an innovative cryptocurrency platform to companies and organizations in order to boost the innovation and growth of industries. In March 2014, there was a signal of restrictions toward Bit Coin in Singapore. Recently, many industrialized countries including Korea proposed different restrictions, making the future of the cryptocurrency seem more confusing. These kinds of restrictions have always existed among privileged groups whenever the new changes and innovative technologies appeared. Nations based on bank will constantly empathize on many regulations on the cryptocurrency. However, eventually, due to the cryptocurrency, the cost will decrease, economic activities will transcend nations’ borders to grow in digital connections, and the world will become closer and grow together. The cryptocurrency, passing the nations’ borders, will realize the utopian dream where the third party is not needed. POPCoin White Paper

4. 2. POPCoin: Revolution in Cryptocurrency POPCoin is designed to produce a block chain platform that improves the limits of current cryptocurrencies. POPCoin’s platform adopting new architecture which are interworking among private networks and service plug-in fixes the structural problem of the current block chain so that various applications are easily adopted. POPCoin focuses on maximizing its features of sharing and distributed ledger that the cryptocurrency should have. However, it minimizes energy consumption. Adding new ideas that improve the weakness of the current cryptocurrencies, POPCoin is a cryptocurrency platform with the aim to be a public free open software that companies and organizations can use easily and for free. Private-On-Public Blockchain Network The distributed transaction ledger of block chain can be used as a storage that memorizes the transaction history of cryptocurrency. It also can save any kind of data like company documents, school graduation certificates, and personal medical information. However, there must be a security problem when private secret data is saved with the coin transaction history in one block chain because block contents are opened. The problem could happen that evil users abuse in the security, the strength of block chain. The coin transaction history should be open to all users while private data should be accessible to the persons concerned. For this reason, major companies try to develop their own block chain technology, and ICT companies provide private block chain solutions as open sources. However, in this situation, the transaction information between block chains that form different blocks cannot be written in the same block. So, the interworking between private block chain and public block chain POPCoin White Paper

5. solutions becomes impossible. That’s because generally, private block chain is accessible in private network whereas public block chain are in public network. Private-On-Public Network POPCoin differentiates the public blockchain where all users of POPCoin are included from the private blockchain that enterprises or groups exclusively use for their purposes. This differentiation succeeds in creating a structure that increases overall effectiveness and enables various applications within groups.This is the very first attempt that the private block chain is operated by being interlocked with the public block chain, which is suitable as a model for the improved sharing economy of companies and organizations. In other words, even though POPCoin transaction history is recorded in the public blockchain and the data generated by each group is written in the private blockchain, these two networks are organically connected, making POPCoin trades possible between different groups. So, the network users can not only use various services based on group or private block chains but also response to every transaction of the cryptocurrency including the transactions between groups, or between a group and an individual. This POP Coin technology has another great benefit. Since transactions and data are distributed to public network and many other private networks, the high stability of system can be maintained without traffic congestion, and also various group-based application services become available. Group Service Infrastructure An innovation architecture that www.popbc.io offers is service infrastructure by group with powerful functions. Ethereum’s DApp is a professional area in which only experienced developers could work on and one DApp has a limit of providing complicated services. For the more, as DApps are distributed to all users’ nodes without using or being related with them, which causes excessive traffic and overloaded system problems. If services like SNS or blog that are easy to use but have a wide range of users are combined with the block chain technology, new values that have never been before could be created. POPCoin White Paper

6. Also, a comparatively more complicated service like e-commerce could evolve more when combined with the block chain technology. POPBC foundation provides a service platform based on POP architecture where individuals or enterprises could make block-chain-based services more easily. This platform provides every function to handle block chain directly such as data storage, searching, and processing, so the developer only needs to develop the original function of the service. Also POP Coin provides a related interface so that already existing systems could be easily interworked with block chain functionality. The POPCoin platform is open to anyone as an open source. Each function of platform is developed and offered in plugin formats, so anyone can create plugins and upload them on the POP Coin platform. The usage fee for the plugin will be given to the developer of the plugin. Of course, every trade is made in POPCoin. ◀POPCoin Group Node Architecture▶ POPCoin White Paper

7. 3. How It Works POPCoin POP(Private On Public) Architecture Group Group is a private network that binds a part of nodes connected to public network of POP Coin. Each group is identified by a character string like the Internet domain address. A POPCoin account that creates the group will be a group manager. A POP client processed by the group manager’s name will be the group primary node. POPCoin White Paper

8. While the public network has to distribute transactions and blocks to every node, the private network needs to send transactions and blocks to only nodes included in a group, which decreases traffic and improves the transaction speed. There are 3 types of group: open, closed, half open. Open group is shown to every user, and signing up and leaving the group is easy. Closed group is not publically displayed and a group manager approves members’ signing up. Half open is shown to public, yet signing up is controlled by the group manager. Group Primary Node A group manager manages the request of registration for a new member. The history of POPCoin White Paper

9. registration request, approval, and denial will be all written in a group block chain. Therefore, the entire group member list can be found in the group block chain. The most important task served by the group primary node is to produce a new block that stores every transaction happening in that group. In the private network, the group primary node takes all charge of producing the block without any specific consensus algorithm. As there is no competition of producing the block and all the transactions are directly sent to the group server node, the group can quickly process the large amount of transactions. Group Coin Every group can issue and use group coins. Unlike POPCoins generally used in the public network, the group coin can be circulated only within the group. The group coin can be used as a reward like air mileage point or as a quantity counting measure for company’s asset management or logistic management. Application can utilizethe group coin in a creative way. In order to issue the group coin, POPCoin is required. The group coin can be produced as much as POPCoin deposited in the group manager’s account. When the group coin is created, the corresponding amount of POPCoin is locked in the group manager’s account. The exchange ratio between the group coin and the POPCoin can be discretionally set and the commission fee for the exchange should be paid when the group coin is changed into the POPCoin. The fee will be belonged to POP foundation. POPToken Unlike the POPCoin which can be traded in decimal points, POPToken is issued in whole number and a kind of mark which cannot be divided. Due to its characteristic, block chain is very suitable to save various certificates or contracts. Generally, these documents need serial or specific numbers. Each group can generate various types of POPToken and must pay a certain amount of issuing fee to POP foundation when the POPToken is issued. This specific number is made of hex value with the size of 44 bits, which is written in the format below for the convenience. First 8 digits show the issuing group and rest of it will be randomly selected. GGGGGGGG-XXXXXX-XXXXXX-XXXXXX-XXXXXX-XXXXXX-XXXXXX POPCoin White Paper

10. The POP token is a data chunk that includes this specificl number. It includes the name of the token and the time of issuance. Moreover, the additional data can be recorded in a data area. For instance, the contents of certificates or agreements can be saved here, and the transaction history of change of ownership can be written. Service Plug-in & Plug-in Store The group server node functions like an application server to group members. The group server node performs a designated service by interacting with clients who access through web or mobile applications. Of course, these clients should log in via group member accounts. In order for the group server node to provide a certain service, the plugin module for the service should be installed in advance. POP foundation manages all the plugins through a plugin server (PS), and the group server node downloads the necessary plugins from the plugin server. The POP foundation will disclose the plugin SDK so that anyone can make service plugins. The POP foundation will run a plugin store which enables individuals or companies to easily register plugins and users to easily search and download them. Professional developers could make profits by making plugins. Users have to pay for paid plugins as much as they use, and the fee will be handed to the developers. The plugin server will monitor the usage and calculate the fee. POPCoin White Paper

11. 4. POPCoin Feature POPCoin White Paper

12. 5. POPCoin Algorithm The www.popbc.io suggests a consensus algorithm that lessons the biases from POW (Proof of Work) and POS (Proof Of Stake). The POPCoin applies “Improved Proof of Stake” that shares the benefits based on the size of capital proportionately. Instead of a few nodes monopolizing the ownership of the right to produce blocks, this method distributes the benefits fairly to many of market participants. The improved proof of stake method called Coinage method is adopted in the POPCoin public platform. The value that the quantity of the possessed coin is multiplied with the period of possession becomes the coinage. The node with the biggest coinage value is entitled to the right of producing a block. After the block is created and the node receives benefits, the user’s coinage goes back to 0, which makes the node with the next biggest coinage get the chance to produce a block. As all node have the coin transaction history and are able to calculate the coinage, they can figure out which node to be the next block producer. A produced block goes under the verification by being sent to nodes ranked under the block producing node. The number of nodes for the verification will be decided based on certain ratio. The reason for this verification process is to prevent a case of evil nodes or systemic errors. In addition, with the validation of the block, the verifying nodes go through this process by comparing the transactions included in the block with theirs. The results (Votes) are sent to the verifying nodes again, and they can check the result of the suggested block. The block verified more than 51% is spread to every node, and the verifying nodes finish the producing and allocating process. POPCoin White Paper

13. The pause period of making new block after producing the block is from 1 day to 30 days as maximum, set by the ratio of the total number of POPCoin users. It means that there are comparatively more opportunities to produce a block in the early stage when there are not many nodes, but as the number of nodes rises, it becomes harder to get a chance to produce a block. This will prevent the monopoly phenomenon of producing a block by nodes with many coins and bring an improving effect on the polarization of wealth. Block Producing Period and Block Size A block is created every ten seconds, and its size varies. Bit Coin where a block is produced almost every 10 minutes takes approximately 1 hour to finalize a transaction, which is not suitable to a field that needs fast transactions. POPCoin’s short period shortens the transaction delaying, and the various sizes of blocks prevent the traffic congestion. Another advantage of a short producing period is that the more nodes will be given chances to produce blocks, because the amount of coin issued during block producing is small and the frequency of issuing increases. In terms of owning coins, this feature fits the POP Coin’s mission of lessoning the polarization. POPCoin Private Platform Consensus Algorithm The www.popbc.io/ private platform adopts an improved PBFT (Practical Byzantine Fault Tolerance) method. PBFT is a consensus algorithm that leads every node participated in the distribution system to successfully make an agreement in a non-interworking system where a byzantine node that does not fulfill the promise could exist. The group primary node collects transactions within a group, arranges them, produces a block, and sends it to other nodes in the group. Nodes receiving the leader’s block carry a test on the block and send the result to other nodes. Along with the test on the block, it is possible to figure out whether the primary node is evil or not. Blocks passing the test are distributed to other nodes so that every node can process the same block that passes the verification. POPCoin White Paper

14. In other words, through two broadcast procedures, even though a byzantine leader or a byzantine verified node sends a strange or arbitrary block, every node in the network can process the same block. When the primary node is judged to be evil via the verification, the node with the second biggest coinage becomes the primary node. The new primary node produces the transaction of the primary node change, so that it can be reflected on the POPCoin public platform. POPCoin Public Fund When the new block is generated, the profits which are new coins and commission fee are usually given to the block producer, but some are belonged to the foundation for managing and improving the POPCoin network. 90 % of the profits will be allocated to the producer and 10 % to the foundation All of the distribution history is recorded in a block. In the first item of the transaction list, first coinbase transaction records the reward given to the corresponding block producer, and second coinbase transaction contains the fact that POP foundation will be given 10 % of the profits. Amount of Coin Issued by Mining When the node creates a block, new coins are issued. The amount of issued coins is decreased in half every certain period, which is called a half-life period. POPCoin’s half-life period is about POPCoin White Paper

15. 5 years, and the number of the newly issued coins per block during the first period is 20. According to this condition, about 0.31 billion coins will be issued during first 5 years and 0.59 billion coins will be issued accumulatively for the next 20 years. POPCoin White Paper

16. 6. ICO Schedule & Coin Allocation ICO Schedule POPCoin White Paper

17. POPCoin Allocation Coin Allocation Fund Distribution POPCoin White Paper

18. 7. Road Map POPCoin White Paper

19. 8. Potential Risks Technical Risks - Blockchain technology is at the early stage. Even though numerous researchers have made progresses, the application of them is at an experimental stage. This could cause unexpected problems due to important operation, technology, and regulation. Regulation Risks - Current laws or new regulations on block chain technology could cause conflicts between the development direction. Investors are obligated to check whether participating in POPCoin ICO follows the laws and rules of corresponding regions. We also possess the right to modify and sell the POPCoin and guarantee that we will follow new policies implemented in the future. So far, we believe that POPBC project follows every necessary law and example for ICO. The personal information received from POPCoin users could be provided to national enforcement agencies or public servants due to the court orders. The POPBC foundation is not responsible for this disclosure. Aside from regulation issues, ICO coin users are legally obligated to pay tax according to the law of corresponding regions for the purchase of coins. Financial Risks Like every investment, the success of ICO and the company will be affected by financial situation. The participation of investors in ICOis considered that they are willing to accept this risk. As the cryptocurrency is very new, Bitcoin (and early Ethereum) market volatility serves a significant role in POPCoin evaluation. Along with these major risks, POPCoin’s ICO could be influenced by uncontrolled conditions and unexpected situation including warfare, natural disaster and emergency. As the POPCoin project is in the early developing stage, its mission, architecture, consensus mechanism, algorithm, technical specification could be frequently updated by parameters. This white paper is not absolute and not finalized. Without special notice, it will be updated to improve. POPCoin White Paper

20. 9. Potential Business IoT Device Certification While ICBM (IoT, Cloud, Big Data, Mobile) is highlighted as the new engine for growth, IoT will be applied to daily life. It is expected that aspects such as bringing various economic values, increasing productivity, and increasing more convenience would be realized. The number of IoT device connected to network was less than one million in 2009, but it is expected to skyrocket to 25 billion in 2020, causing more attentions to necessity toward the related security. Unlike the high demand for device certifications essential for IoT device security, current organizations that issue certificates are dominated by a few associations. Also the certification issuance needs the astronomical figures of cost to apply to IoT devices. The serial number of token that is issued exclusively and the information of token recorded in POP Coin block chain are qualified enough to be used as certificates or device certificates. The device will be given an individual key that distinguishes itself from others, and a public key with the information of the device will be recorded in block chain, which is qualified to be applied as a device certificate. With much less cost, companies can ensure the security of IoT devices, which increases the POP Coin platform’s functions and POP token functions. POPCoin White Paper

21. Messenger Service Messenger service is the most used one among many social media services. Every message is stored in a main center server, being exposed to the danger of hacking. Sometimes, for political purposes, private messages are submitted to governmental organizations. A POPCoin messenger service plugin programs every message to be saved only in nodes in a group, preventing the interference of others. Also, unlike a traditional service structure where thousands of devices are connected to a main center server, a group server node is only connected to the nodes involved in the group, which makes operation process faster with less obstacles to provide stable services. Through encoding the content of messages, hacking and inspection from outer organizations will be perfectly blocked. In the traditional service, to deduct the operational cost, users’ messages are deleted after a certain period, and message restoration is limited when people change their smartphones. However, POP messenger is capable of unlimited storing of message as every data is owned by the corresponding group. Just like regular messengers, multi media contents such as picture, video, audio, URL can be delivered. It is exclusive social media free from the interruption of governmental organizations or any enterprises. Also every message is stored only in the node of the group forever, while the operation speed is high and reliable due to the small network among group accounts. E-Commerce Service Using an online shopping mall service in POP platform, small retailers can run e-commerce business with very little cost and preparation time. Every step like opening mall, registering products, and selling can be done via web or mobile web. It is possible to manage customers as every sale is recorded with the block chain technology, which makes sales and profits increase through the customers’ reliability improvement. The payment will be made in POP Coin, and it is finalized when the payment is done. The fast process speed of POPCoin prevents the delaying process time in a case of Bit Coin. On spot payment using POPCoin and safe transactions through escrow service is available. For more details visit our website: https://www.popbc.io/ POPCoin White Paper