(ANN) ELEMENTH -A BLOCKCHAIN FOR E-COMMERCE

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ELEMENTH -A BLOCKCHAIN FOR E-COMMERCE

Elementh blockchain allows everyone in the global e-commerce market to create various applications for their own needs and business processes. It’s an extremely convenient solution for everyone. But, it can also cause slow blockchain development and hard decision making at higher levels, since opinions may be completely different.
In order to improve this situation, the Elementh combines the decentralized structure of blockchain technology with traditional centralized management practices. This means that serious inconsistencies and imbalance in the blockchain development can be avoided.

Elementh has drawn on the best achievements of recent years in the field of blockchain, with the aim of solving problems in the modern e-commerce world. Since we started to collect data on suppliers’ inventory stock and prices six years ago, we have still not gathered 1% of the total number of goods in the world. It is, though, the biggest database of prices in the global scale. From this database, Elementh develops a blockchain for e-commerce, which is an ownership register for goods, with the ability to write specialized smart contracts and use the nomenclature standard to quickly create various decentralized and centralized applications for e-commerce.

Elementh will achieve this by creating a blockchain with a built-in Turing-complete programming language, allowing everyone to write smart contracts and decentralized applications, enabling the use of unified product cards, e-commerce transactions and the transfer of ownership.

Along with the system of tokens, Elementh has a system of goods, which can also be used in a large number of applications, such as tracking the movement of a particular item from its creation to the current owner, tracking original goods and detecting counterfeit goods. Unlike the system of tokens, the system of goods also provides for the ability to "issue" a particular product at a particular address, indicating all possible item's data (such as name, manufacturer, bar code, etc.). And if identical goods are already present in the blockchain, the issuer will receive a message about it, and he will have the opportunity to indicate how many items of goods he wants to "issue".

If an item has a serial number, it is possible to specify it when the transfer operation is being performed. To provide protection against data forging, only the hash of the serial number is fixed in the system, therefore only the person who knows the initial number has the ability to make a valid transaction. In the absence of a serial number at the moment of "issuing" goods, the system generates it randomly and the holder is able to use it to identify a particular item of goods by printing out the QR code on the package, writing it in an RFID tag or in any other convenient way.

Any action in the Elementh blockchain is called transaction. The most simple transactions is a transfer of EEE value between accounts and a define ownership for goods. Transaction can include structured message for receiver. Accounts may define scripts to handle messages when they are received. The combination of messages and automated scripts is a smart contract subsystem in Elementh.

Transactions in the chain of blocks must be safe, unambiguous and irreversible, and be carried out as quickly as possible to facilitate the reliability and decentralization of the system. In practice, the difficulties arise in two different aspects of this process: selecting a unique node for the production of the block and making the record irreversible.

According to the concept of decentralized autonomous DAC companies, decentralization means that each shareholder has an influence proportional to the number of his shares and that the decision taken by voting of 51% of shareholders is irreversible and mandatory. The challenge is how to achieve 51% of the approving threshold in a timely and efficient manner.

To achieve this goal, each shareholder can delegate his right to vote to a delegate. 100 delegate with the largest number of votes delegated generate blocks according to a certain schedule. Each delegate is allocated a time frame for the production of the block. If he does not produce a block, then their turn is skipped, and the next delegate produces a block according to the list. All delegates receive a payment equal to 10% of the average size of the transaction commission. If the middle block contains a fee of 100 shares, the delegate will receive 1 share as payment.

It is possible that a delay in the network can lead to the fact that some delegates will not be able to generate their block in a timely manner, and this will lead to a split of the chain of blocks. However, in practice this is unlikely to happen, because a delegate can establish direct connections with other delegates preceding and following him in the chain. With this model, new blocks can be generated every 10-30 seconds and under normal network conditions, the splits of the chain of blocks are unlikely or can be corrected within a few minutes

To store goods data, such as specifications, photos, EAN codes, serial numbers, and others, Elementh uses the IPFS protocol. IPFS (the InterPlanetary File System) is a content-addressable, peer-to-peer, hypermedia communication protocol. IPFS allows you to create fully distributed applications. It is aimed at making the World Wide Web faster, safer, and more open.

IPFS is a peer-to-peer distributed file system that connects all computing devices to a single file system. In a sense IPFS is similar to the World Wide Web. IPFS can be represented as a single bittorrent-swarm, which exchanges files of a single Git-repository [10]. IPFS is becoming a new important subsystem of the World Wide Web. Constructed correctly, it is able to complement or completely replace HTTP. It can also supplement or replace other systems.


UNIQUE FEATURES OF ELEMENTH

1.Full transparency of operations;

2.Non-profitability as the Foundation’s business process framework;

3.Constant research and development with use of the best practices;

4.Sharing all results of our work.


AIMS AND VISION OF ELEMENTH.

This is how the Elementh team sees the future of the e-commerce market:

1.Unified product classification standard used worldwide with unique codes for each product item.

2. Completely transparent system of market transactions.

3. Each participant of the system can completely trust other participants. Value contributed by each participant leaps into a new quality. At that, high-level service rendered by the participants is of greater importance than possession of exclusive information.

4. All market participants make their own contribution to the system development and receive rewards for this contribution.

5. Blockchain technology works not only as a database, it also becomes the basis of business processes of companies.

6.The whole market is an open transparent database permanently enlarged by an inflow of new participants, with high speed of any transactions inside the system.


PROBLEMS FACED BY E-ECOMERCE

1. One of the most important obstacles is the non-transparency of information and the complexity in obtaining it. The sheer number of e-commerce participants (brand, manufacturer, distributed retailer, delivery, consumer and regulator) creates the necessity for constant data exchange. In addition, different participants of this market commonly require different parts of the data. That is why, in processing this information, it is always necessary to do the same work many times, which leads to high processing costs, data duplication and loss or partial change of this data. It allows harmful participants of the market to carry out fraudulent schemes, such as fakes, counterfeit, evasion of taxes, illegal import/export, etc.

2. Lack of a unified standard. E-commerce market was formed arbitrarily. The more it grew, the more traditional companies were engaged in online trade. Unfortunately, lack of unified regulations and standards led to chaos in offering products on the market. The same goods in Internet shops, even within one country, have different names and categories. It causes difficulties not only for the final customers, who need to spend considerable time comparing offers from various Internet shops, but for B2B sector as well. Retailers examine offers from various suppliers with a fine-toothed comb in order to find the best deal. It is so due to different formats of data on stock and goods. Marketplaces invent high priced solutions to match goods from the supplier whose data they collect. In such cases, these solutions are a serious restraint for connection to the marketplace.

 SOLUTIONS ELEMENTH AIM TO PROVIDE.

One of Elementh’s main objectives is to implement the blockchain technology into e-commerce. In setting this kind of objective, Elementh aims to fully utilize the advantages of the technology and make e-commerce as efficient as possible. Step-by-step introduction of the blockchain technology into trade will promote global expansion of Elementh. This combination does not require a drastic change of business processes of the market participants.

We have been actively participating in the e-commerce market since 2007, creating the project Miiix [1] in 2012. Its main goal is to standardize nomenclature in the e-commerce market. For six years, we have been helping online retailers to compare millions of goods from thousands of suppliers. Owing to our algorithms based on the use of machine learning, we can automate hundreds of processes to update real-time supplier stock data. Indeed, we have changed immensely since 2012 as a result of both cooperation and feedback from several thousands of retailers, marketplaces, distributors and manufacturers from different countries.

Elementh is the next level in Miiix [1]development. Elementh allows everyone to access real-time stock inventory and price data of the vendors inside the blockchain.

Trust and decentralized nature of the Elementh blockchain gives consumers the opportunity to find the best deal and sellers to conduct business more quickly.

TOKEN SPECIFICATION:

Elementh Token (EEE). Since the Elementh Token is a utility token, it is constantly moving around in the system. More than 70% of tokens (71.78% will be sold via ICO) will belong to the system participants and will continuously move around within the Elementh.

Initial token distribution among companies and end users will be carried out through ICO. The Elementh Foundation will exchange these tokens for ETH or BTC which, in turn, are used for blockchain extension, development, attracting new investors and maintaining the entire system.

The Elementh Foundation receives EEE tokens as a fee from each transaction in the system. From 75% to 99% of the received fee will be paid by the Elementh Foundation to the masternodes for system maintenance. Up to 25% of the fee will be retained by the Elementh Foundation for daily operations, business promotion and technical development.

Service providers pay the fee in the system and receive tokens in turn from companies requiring their service. Any interaction, such as access to the company’s necessary data, will be paid with EEE tokens in the system.

End users can fully or partially pay for products or services from the companies in the system with EEE tokens. Users can be rewarded in tokens for maintaining and developing the system, such as matching algorithm learning or product card creation, as well as detecting fake goods in the system.

ICO DETAILS.


private pre-sale/pre-ICO round: closed. Collected 910 ETH.

ICO prefund stage start date: 15 February 2018 00:00 UTC
ICO prefund stage end date: 31 March 2018 22:00 UTC

ICO start date: 1 April 2018 00:00 UTC
ICO end date: 30 April 2018 23:59 UTC
ICO soft cap: 10 000 ETH
ICO hard cap: 30 000 ETH
ICO price: 1 EEE = 0.0002 ETH
ICO bonus scheme: 1st day: 30% Tokens, 2nd day: 15% Tokens
There is no minimum or maximum amount to participate in the ICO stage.
Tokens will be distributed at the moment of purchase in the ICO stage.

All unsold tokens from ICO stage will be burned.


DISTRIBUTION:

217 500 000 (71,78%) EEE - investors

45 000 000 (14,85%) EEE - team

40 500 000 (13,37%) EEE - partners and advisors



ELEMENTHS TEAM MEMBERS.

Sergey Ryabov - CEO

Dmitriy Bereznitskiy - CTO

Vitaliy Mengeshev - CCO

Aleksandr Vasilev - Data Scientist

Sergey Morozov - Backend Developer

Eugene Prigornitskiy - Backend Developer

Roman Travnikov - Frontend Developer

Sergey Miheev - System Administrator

Peter Gashitsky - UX/UI Designer

Alexander Kholodnykh - Backend Developer

Michael Averbach - ADVISORS

Sergey Fradkov - ADVISORS

 

OFFICIAL LINKS:


WEBSITE: https://elementh.io/

WHITEPAPER: https://github.com/ElementhFoundation/Documentation/blob/master/ElementhWhitepaperEN.md

TWITTER: https://twitter.com/Ahooleeman

TELEGRAM: https://t.me/elementh_community

BITCOINTALK: https://bitcointalk.org/index.php?topic=2590603.0