MetaChain (元链) A Peer-to-Peer Network Security System Whitepaper

in metachainvpn •  last year 

MetaChain (元链)

A Peer-to-Peer Network Security System

Whitepaper

Abstract

MetaChain is a peer-to-peer network security system dedicated to protecting personal data security, enabling the free sharing of information, and providing an integrated network security solution driven by blockchain. It offers true internet freedom, enhanced security, and a barrier-free user experience, building a platform for the global community to share network resources freely and securely.

MetaChainVPN, a special VPN designed for the cryptocurrency community, is MetaChain's first product. It provides high-quality global dedicated lines to protect blockchain enthusiasts from network and regional restrictions, ensuring high-speed and stable access to the blockchain world. Launched in March 2022 and upgraded in August 2023 to version 2.0, MetaChainVPN ensures users are not limited by network restrictions and can enjoy a global internet experience.

To further protect online privacy and innovate traditional network technology, MetaChain proposes MetaChain DVPN, a decentralized VPN that removes centralized servers and uses a peer-to-peer approach. This guarantees anonymity and security in the decentralized world, eliminating technical barriers, and providing a private, secure, and unrestricted internet experience to all users. This solution cleverly utilizes idle bandwidth to meet the internet access needs of global users in different locations.

MC is MetaChain's token. Users can mine while using the VPN. Mined MCs serve as MetaChain's native digital tokens, facilitating free trade scenarios and supporting a vast, promising shared network ecosystem. MC also exists as a proof of work for users sharing idle network and storage resources. Furthermore, MetaChain continuously invests the commercial value of its shared network ecosystem into the MC system, creating a sustainable ecosystem.

Table of Contents

  1. Background
    1.1 Current Network Transmission
    1.2 Network Security
    1.3 Current State of the VPN Industry
  2. Project Overview
    2.1 Project Vision
    2.2 MetaChainVPN
    2.3 Peer-to-Peer Decentralized Network
  3. Technical Architecture
  4. Consensus Mechanism
    4.1 Credit System
    4.2 Invitation System
    4.3 Representative System
  5. Node Selection
  6. Community Governance
  7. Token Economy
  8. Roadmap
  1. Background

1.1 What is Current Network Transmission Like?
When we access the network, we actually find the server of a website through the network and obtain the above data from the server. We can simply understand the process of accessing the network as three steps: addressing, requesting, and receiving. The process of accessing the network is a bit like our express delivery today. First, we have an address ourselves, and then the goal is to find the merchant's address, and then send a shopping request to the other party, and the merchant then sends the goods based on our address.

Similarly, when we go online, we first connect a device (can be a computer) to the router (the router connects multiple devices at home to form a local area network, which is like our own home), and then we use The router can connect to external public networks. On the Internet, we have our own address, which is the IP (such as the specific address at home), and then we need to find the server address of a website we want to view. For example, we want to view Baidu content, but our computer is Baidu's website www.baidu.com cannot be directly identified, so we need a DNS server (Domain Name System) to let us know what the address behind www.baidu.com is.
When we find the Baidu address, we need to send a request to obtain Baidu data to Baidu's server. However, in the actual process, our request is sent from the router and cannot be directly transferred to Baidu's server. Instead, it must be forwarded to the relay first. The center, also known as the Internet service provider (ISP for short), is equivalent to the warehousing center of a certain province for express delivery. After that, the ISP passes through multiple ISPs and passes it layer by layer to the ISP that finally arrives in Beijing, and then transmits it to the server where Baidu is located, completing the request to the Baidu server. The whole process is equivalent to express delivery passing through multiple warehousing centers (ISP can be regarded as Warehousing center in logistics) and finally reach the destination. When our request reaches the Baidu server, the Baidu server will return the data we need along the original path, and will eventually be received by our device. At this point, the entire addressing, requesting, and receiving process is complete (note that the entire process has been simplified, and the actual situation will be more complicated).

1.2 Network Security
Network security includes network software security, network equipment security and network information security. It refers to protecting the hardware, software and data in the network system from accidental or malicious changes, damage or leakage so that the system can operate reliably, continuously and normally. Network service is uninterrupted.

With the rise of emerging technologies such as big data, 5G, cloud computing and the Internet of Things, the boundaries of network information security are weakening, and the content of security protection is increasing, posing great challenges to data security and information security, and also creating new challenges for network information security. The market has opened up new development space. Coupled with the fact that issues such as data security, privacy protection and economic globalization have received further attention, the market size of network security has also shown a growth trend.
According to data, the potential market space of China's information security market is as high as 100 billion yuan. As the awareness of active defense of network security increases, the domestic network service market share will be further released. Compared with the global security services market share of 64.4%, my country's security services market share is only 19.8%. At present, the domestic information security industry is still dominated by hardware, with a high market gap and huge development potential.

1.3 VPN Industry Status
In its early days, VPN technology focused on establishing secure tunnels between an organization's servers and its members to ensure encrypted data transmission. Over the past decade, modern consumers have begun to associate VPNs not only with traditional enterprise-focused narratives, but also with entirely new narratives surrounding their concerns about privacy, internet security, and global data accessibility. . As a result of these concerns, we've seen the VPN industry boom, growing at 15% annually, with the industry expected to have a global market cap of $75B by 2030.
For decades, the basic task of IPsec VPNs has been to drop packets from authenticated endpoints. All communications between endpoints are encrypted at the highest level, which forms the basis of VPNs on the Internet. VPNs can be said to be simple and cost-effective, but they may have problems in ensuring network performance. The most basic VPNs can prioritize applications and communications before encrypting them. However, the value of this is limited because once the communication is transmitted in the encrypted channel, it cannot be prioritized from the network provider's perspective because the message header is encrypted and cannot be viewed. The second is to establish an optimal network to support communications at a reasonable level of performance. A typical VPN runs some operations on a single IP backbone and is suitable for small businesses. However, for large enterprises with multiple locations, IPsec VPNs can often cause problems with voice and video applications due to high latency or congestion on the network.
The current VPN applications available to consumers in the VPN field cannot prove the authenticity of their claims, cannot guarantee users' "privacy" and "reliability", and cannot fulfill their promises to users, thus creating a major contradiction. This contradiction has been exposed on an almost quarterly basis in recent years, as leading VPN networks have been exposed for deliberately storing and collecting user data while allowing significant security vulnerabilities to exist. The VPN industry currently operates as a cartel, with the vast majority of leading brands having the same owners. These similar products share the same level of obscurity coupled with a lack of consumer trust in their back-end functionality.

  1. Project Overview
    2.1 Project Vision
    In its early days, VPN technology focused on establishing secure tunnels between an organization's servers and its members to ensure encrypted data transmission. Over the past decade, modern consumers have begun to associate VPNs not only with traditional enterprise-focused narratives, but also with entirely new narratives surrounding their concerns about privacy, internet security, and global data accessibility. . As a result of these concerns, we've seen the VPN industry boom, growing at 15% annually, with the industry expected to have a global market cap of $75B by 2030.

For decades, the basic task of IPsec VPNs has been to drop packets from authenticated endpoints. All communications between endpoints are encrypted at the highest level, which forms the basis of VPNs on the Internet. VPNs can be said to be simple and cost-effective, but they may have problems in ensuring network performance. The most basic VPNs can prioritize applications and communications before encrypting them. However, the value of this is limited because once the communication is transmitted in the encrypted channel, it cannot be prioritized from the network provider's perspective because the message header is encrypted and cannot be viewed. The second is to establish an optimal network to support communications at a reasonable level of performance. A typical VPN runs some operations on a single IP backbone and is suitable for small businesses. However, for large enterprises with multiple locations, IPsec VPNs can often cause problems with voice and video applications due to high latency or congestion on the network.

The current VPN applications available to consumers in the VPN field cannot prove the authenticity of their claims, cannot guarantee users' "privacy" and "reliability", and cannot fulfill their promises to users, thus creating a major contradiction. This contradiction has been exposed on an almost quarterly basis in recent years, as leading VPN networks have been exposed for deliberately storing and collecting user data while allowing significant security vulnerabilities to exist. The VPN industry currently operates as a cartel, with the vast majority of leading brands having the same owners. These similar products share the same level of obscurity coupled with a lack of consumer trust in their back-end functionality.

  1. Project Overview
    2.1 Project Vision
    The vision of the MetaChain project is to: protect personal data security, achieve free sharing of information, provide blockchain-driven integrated network security solutions, provide true Internet freedom, enhance security and barrier-free user experience, and build a free world for all mankind. A secure network resource sharing platform.

In order to build a completely free and secure network resource sharing platform, so that every netizen can move freely on the network, enjoy the convenience brought by the network, and avoid privacy and security violations, MetaChain, as a network security infrastructure, needs to have the following characteristics :

Protect privacy and security
The first and foremost issue is safety. When users use the network, any link may cause information leakage and be exploited by hackers, such as connecting to unsecured WiFi outside or having information intercepted by fake base stations, posing security risks. And for some large enterprises, if they want to transfer data between corporate branches in different regions, security problems may arise easily if they use external public networks. Speed and performance are also issues if they use the company's internal intranet. Or, how can employees who are traveling or working in other places safely browse the company's intranet through the public network.

In addition, with the development of the Internet of Things in recent years, hackers can not only hijack personal computers, but also hijack cameras, smart home appliances, smart door locks, routers and other Internet-connected devices. All kinds of situations remind us that how to prevent being hijacked while using the Internet is an important issue in current network security.

Break through regional restrictions
When we use the Internet, we are also controlled by some centralized entities for various reasons.
Such as being blocked. Some network operators (ISPs) perform certain operations on DNS for certain purposes, making it impossible for us to obtain the correct IP address of the target server through DNS when using the ISP. It's like a logistics company has modified its address book. We can't know the specific address of the manufacturer we want to contact, so we can't shop normally. It also means we can't surf the Internet normally.

Or be restricted. There are also some products that impose corresponding restrictions on users' use according to regions. Each user's network IP represents a region to which it belongs. Therefore, differentiated management can be carried out for users in certain regions, such as certain Video websites only support viewing by users in the United States. When users from other regions enter the page, the video content will not be displayed; or the opposite is true, only users in a certain region are not supported.
For these reasons, we cannot travel freely on the Internet.

Based on the above, MetaChain proposes the following solutions:
•  MetaChainVPN
•  Peer-to-peer decentralized network
•  Shared network mining

2.2 The First Step of MetaChain – MetaChainVPN
MetaChain has released a VPN software, MetaChainVPN, which has received numerous positive reviews from blockchain enthusiasts. It plays a crucial role in attracting early traffic for MetaChain and has already gathered over 500 million VPN users. These users will potentially become seed users for MetaChainDVPN. To increase MetaChain's exposure in its early stages, MetaChainVPN introduced early-benefit mining, with a promotional pool representing 5% of the total.

2.3 Peer-to-Peer Decentralized Network
2.3.1 Decentralizing the Network
However, due to policy and technical reasons, when we use VPN, we will also be controlled by some centralized entities for various reasons, such as being blocked, unable to log in to certain URLs, and facing the risk of network hacker attacks. Therefore, MetaChain further Proposed: peer-to-peer decentralized network.
How to achieve decentralization of the network? The key is how to achieve no centralized server. Blockchain achieves decentralization by turning centralized accounting into distributed accounting that everyone can keep; the title of Bitcoin's white paper is exactly "a peer-to-peer electronic cash transaction system." Each node in the peer-to-peer network has an equal status. No node has a central control position, and no node plays the role of a transaction intermediary. Each node in the network is both a server and a client. Nodes can choose to join or exit at any time. ; Nodes can choose to run all functions or some functions; the more nodes there are, the stronger the computing power of the entire system, the higher the data security, and the stronger the anti-destruction capability. Bitcoin adopted this P2P network protocol, and many subsequent cryptocurrencies, such as ETH and EOS, continue to adopt it.
MetaChain draws on the thinking of blockchain. In the same way, MetaChain can also use point-to-point technology to turn centralized servers into servers for everyone, establishing an Internet system without centralized servers and relying on user groups (peers) to exchange information. The function is to reduce the number of nodes in previous network transmissions to reduce the risk of data loss. Different from a central network system with a central server, each client in the peer-to-peer network is both a node and a server. No node cannot directly find other nodes and must rely on its user group for information exchange.

2.3.2 Continued Efforts with MetaChainDVPN
The peer-to-peer decentralized VPN network is a hybrid P2P distributed network sharing network used to bypass regional censorship and ensure privacy. The network is serverless and distributed. User data can never be logged, leaked, or hacked. Each node operator has the right to act as both a client and a server. Node operators are rewarded for their contribution to the network. prosperous profits. Compared with the traditional P2P network model, the incentive mechanism ensures the stability of the network (we will explain the detailed incentive mechanism in the node selection section).
The specific embodiment is MetaChain's DVPN, which can be used to participate in shared network mining and provide decentralized VPN functions. All users of DVPN will contribute to the entire network. An increase in the number of users means an increase in the number of nodes providing network sharing. The more nodes there are, the more secure the entire network will be. With the mining mechanism, MetaChain can quickly build a powerful and robust decentralized private network. Since there is no centralized server, user data will never be recorded or leaked during the DVPN transmission process, so it will not be hacked, which becomes an important step for Web 1.0 and Web 2.0 to move towards Web3.0. port.
Meta Chain DVPN uses a point-to-point network sharing mechanism to build an end-to-end encrypted private network, allowing each node operator to act as a client and server. Node sharers earn mining rewards by providing untraceable and unstoppable access to the network to other nodes. DVPN is the first killer sharing network application in the MetaChain blockchain ecosystem, which removes technical barriers and provides a private, secure, unrestricted Internet experience to all users. MetaChain DVPN truly democratizes blockchain technology and raises the general public's awareness of the upcoming Web3.0 era. It is also a pioneering work that implements the decentralized sharing economy and the safe ownership of personal data.
Just like other sharing economic systems, point-to-point DVPN has users who provide the network and users who consume the network. In theory, there may be a situation of excess bandwidth (although in practice, the possibility of this event happening is very small), that is, The network provided by the sharer is too much and cannot be consumed. When this happens, we will call the MetaChainVPN mentioned above to package the excess broadband part and provide it to MetaChainVPN users, so as to consume and ensure the income of the sharer.

2.4 MetaChain's Web3.0 Ecosystem and Applications
2.4.1 Transitioning from Web 1.0 and Web 2.0 to Web 3.0
Web 1.0 was about information consumption, Web 2.0 about interaction and content creation, and Web 3.0 will coexist with them but is based on blockchain and other decentralized infrastructures. Through products like MetaChain's DVPN, users can seamlessly switch between centralized and decentralized networks, playing a vital role in connecting Web 1.0, Web 2.0, and Web 3.0.

2.4.2 Decentralized Edge Computing Platform (MetaChain)
MetaChain is a decentralized infrastructure built on nodes. It utilizes blockchain to deploy decentralized tasks, listening for specific events and triggering task workflows. Each node may host different web2/web3 applications, becoming a provider or co-provider of these services.

2.4.3 Decentralized Creator Platform
Traditional web2.0 content platforms see creators as essential for attracting users but lack control over content, copyright, and advertising. Web3.0, based on decentralized networks and DEP's security and network technology, offers a fully decentralized creation platform for creators. It combines off-chain web3 operations with on-chain NFT value certificates, developing a producer economy and a new web3 interaction mode for creators.

2.4.4 Decentralized Chat and Social Software
Leveraging DEP's decentralized application deployment capabilities and DVPN's private encryption network technology, this software enables cross-domain private message transmission. It uses off-chain decentralized encryption tunnel nodes combined with on-chain blockchain identity verification and peer-to-peer transaction methods, ensuring that the digital content, ownership, and control created by users belong to them.

  1. MetaChain Technical Architecture
    MetaChain's network architecture is divided into two layers: the top layer and the bottom layer. The top layer consists of hundreds of validation nodes, functioning like other blockchains. The bottom layer, also known as the MetaChain layer, comprises millions of MetaChainDVPN clients and MetaChain smart home gateways. These DVPN and smart home gateways earn credit tokens (MC) by providing services such as network sharing and VPN services.
    Unlike the standard Nakamoto consensus protocol, our Proof of Credit (PoC) does not use Proof of Work (PoW), thus consuming less energy. Our consensus mechanism is similar to Proof of Stake (PoS), but voting rights of the validation nodes depend on both deposits and credit scores. On one hand, the security of the top layer is protected by the credit scores of DVPN and smart home gateways in the bottom layer. The more DVPN clients and smart home gateways join the bottom layer, the more secure the network becomes. On the other hand, rewards (MC tokens) received by the DVPN clients and smart home gateways in the bottom layer incentivize more people to participate in MetaChain's distributed hybrid network. This closed-loop formation expands and protects the entire network.

3.1 Trident Protocol
The core of MetaChain's tunnel technology, Trident Protocol, is designed to achieve unrestricted internet access. Internet access surveillance involves comprehensive monitoring and filtering of user traffic, typically achieved through deploying numerous network firewalls and offline analysis equipment at core networks and key exits. To discuss the penetration capability of the Trident Protocol, let's first review how network firewalls work. Currently, firewalls have evolved from basic port-based access control to intelligent content recognition. This includes several specific implementation methods, with the first four being passive identification methods and the fifth an active identification method. Some firewalls use several of these methods simultaneously to identify application types in user data streams, even combining AI algorithms like Bayesian theory or decision trees for intelligent identification.

3.1.1 Coarse Port Filtering
This is based on the method of judging the possible type of application according to the destination port. The Internet Assigned Numbers Authority (IANA) is the institution that establishes network ports and their corresponding network applications. As of now, ports 0 to 1024 have been almost fully allocated. Firewalls can generally determine the protocol likely running based on the network port.

3.1.2 Content Recognition
This method identifies the type of network application based on the content of the user data stream. Since network applications are completed according to pre-established network protocols, user data streams often exhibit certain content characteristics.

3.1.3 Packet Length Identification
This method uses the sequence and distribution of lengths of interactive data packets for application identification. It's particularly useful when user data streams lack clear content characteristics.

3.1.4 Data Packet Interval Identification
This method identifies applications based on periodic "keep-alive" data packets stipulated in network protocols. In tunnel protocols, servers and clients send periodic keep-alive packets to monitor the tunnel's availability.

3.1.5 Active Detection Identification
This method involves the firewall altering the content of data packets sent from the client to the server and identifying applications based on the server's response to these modified packets.
To counter all these detections, the Trident Protocol combines two tunnel modes to prevent firewall detection: Protocol Obfuscation Mode and Protocol Camouflage Mode. Since the Protocol Obfuscation Mode cannot be detected by firewalls for any features, it achieves the function of breaking through network interference. However, in some whitelist systems, any data stream that cannot be identified is also discarded or blocked. In such cases, the Trident Protocol automatically switches to Protocol Camouflage Mode to continue achieving network interference breakthrough.

3.1.6 Protocol Obfuscation Mode
This mode counters various detection methods used by firewalls, preventing them from identifying any features. Its working method includes:
a) Random ports: Negotiating random ports for data stream ports.
b) Encrypted content: All data packet contents are fully encrypted to prevent content feature extraction.
c) Confused packet length: All data packet lengths are randomized.
d) No periodic keep-alive packets: Data packets carry their keep-alive data, with no obvious independent keep-alive packets.
e) Prevention of active detection: The server discards any non-protocol standard data packets and refuses to respond.

3.1.7 Protocol Camouflage Mode
This mode involves disguising traffic characteristics to resemble other common protocol traffic features, such as:
a) HTTP Protocol: The tunnel protocol is completely encapsulated within an "HTTP GET" and an "HTTP POST" message body.
b) TLS Protocol: Utilizing the TLS 1.2 session ticket feature, the tunnel traffic resembles a standard HTTPS connection using an already negotiated session ticket.

3.1.8 NAT Traversal
Another common issue in P2P networks is NAT traversal. NAT is a common feature in network devices within IPv4 networks. To solve the contradiction between using private IP addresses within local networks and needing public IP addresses for internet data packet transmission, network devices at the exit of local networks use NAT to convert private IPv4 addresses into the gateway's public IP addresses.

3.2 Smart Routing Technology
Smart Routing Technology automatically decides network routes based on user data stream characteristics and determines whether to transmit through tunnels. It offers two modes: Privacy Protection Mode and Network Interference Breakthrough Mode.
In Privacy Protection Mode, user data streams involving internet traces are routed through network tunnels based on user-defined anonymity service levels. In Network Interference Breakthrough Mode, user data streams accessing the internet are routed based on the visited website's address and corresponding access and blocking areas database.

Benefits of Smart Routing include:
a) Cost-saving: Tunnels are established between two or more DVPN and smart home gateways, so both ends are DVPN or MetaChain smart home gateways. If a MetaChainDVPN or smart home gateway seeks to establish a tunnel connection with another, it must find a server through the network sharing platform and pay in cryptocurrency based on traffic or speed. Users are not using network tunnels for free. Smart Routing Technology automatically determines whether to transmit data streams through tunnels based on their attributes, reducing tunnel usage, avoiding network latency, and preventing extra expenses.
b) Anonymous service: Anonymous service refers to hiding the user’s IP address to make it difficult to trace online traces. Since the network tunnel is end-to-end encrypted, user data flow transmitted through the network tunnel will not leave any traces on the Internet. We will set the level according to the publicity of the user's access object, and decide whether to encapsulate the corresponding data flow through network tunnels based on the user's settings. Highly public user data flows such as web page visits belong to the highest level of anonymous services. For this level of user traffic, network tunnel encapsulation is a mandatory setting. User data flows that are less public, such as P2P downloads, belong to the second-highest level of anonymous services. For this level of user data flow, network tunnel encapsulation processing is an optional setting to reduce user costs. Not only that, users can also choose multi-hop routing mode to achieve stricter anonymity service. In a multi-hop routing environment, the network tunnel will be established by more than two MetaChainDVPN or smart home gateways, instead of the usual two. The advantage of this is that MetaChainDVPN or smart home gateway, which acts as an intermediate node, cannot peek at the content because it cannot decrypt the user data stream. As the last node, MetaChainDVPN or smart home gateway can decrypt the user data flow, but it cannot know the source of the data flow. It can be seen that if there are more MetaChainDVPN and smart home gateways forming a network tunnel, the user data flow will be more difficult to track and the corresponding cost will be higher.

3.3 Link Layer Tunnel Technology
Link layer tunnel technology is the world's first device that does not require any configuration and can implement intelligent routing and tunnel encapsulation in virtual network cable mode. All network devices currently on the market that implement tunnel functions work in routing mode. In other words, users need to have certain network technical capabilities and learn IP address planning and tunnel protocol configuration to correctly establish tunnels. A certain amount of routing knowledge is also required to forward the required traffic to the tunnel for correct encapsulation and decapsulation. Link layer tunnel technology has completely changed the need for professional knowledge from end users. MetaChain’s smart home gateway does not require any professional knowledge. After the user connects the link layer tunnel technology device to the uplink of the home router, the link layer tunnel The technology will first enter the learning stage. At this time, it monitors traffic without affecting the forwarding of traffic, and automatically determines the direction of the connection based on the statistical rules of the IP addresses appearing on the two ports. We know that there are hundreds of millions of nodes on the Internet, and the number of export IPs for individual users is very small and fixed. Therefore, after analyzing the traffic for a short period of time, we can know which end is the uplink port and which end It's the lower link. Then the link layer tunnel technology will further learn a series of information such as the IP/MAC address of the Internet connection, DNS server, etc. for possible future tunnel negotiation and encapsulation.

We believe that the smart home gateway itself is a product that users operate very rarely. The less users are required to be aware of its existence at any time and only do the minimum configuration when functions need to be changed, the more it can meet the real needs of the largest number of users. . In particular, combined with the above intelligent routing technology, users' privacy protection and network traversal needs can be completed at the lowest cost with zero usage threshold.

  1. Consensus Mechanism
    MetaChain uses an advanced trust consensus mechanism, including three crucial mechanisms (modules): Credit System, Invitation System, and Representative System. These three mechanisms form the core of MetaChain's network consensus mechanism.

4.1 Credit System
Proof of Credit is the most important mechanism among the three core mechanisms. It reflects the contribution of each participant based on the computing power of each node and allocates rewards (MC) accordingly. There are two main ways to gain computing power: by registering as a user and consistently connecting and mining daily, and by participating in MetaChain network sharing and consensus activities. The former relies on MC as an incentive, while the latter is supported by MetaChain's public chain. This method builds a credit system where each node accumulates its computing power by using, promoting, or participating in the construction of peer-to-peer decentralized network applications, thus collectively resisting Sybil attacks.

4.2 Invitation System
New nodes must be invited by old nodes to receive computing power contributions and join the network. Moreover, each invited node will automatically obtain ordinary basic computing power after joining the network, and then can start to obtain reward MC for connecting and mining. The inviter will also receive a bonus to the corresponding computing power value, thereby obtaining more Mining rewards are a good incentive for nodes to actively contribute value to the platform.

In order to quickly expand the number of nodes, MetaChain used 60% of the total issued tokens as incentives to support the implementation of the recommendation system. Any participant who successfully invites a new node can obtain this part of the system reward. Therefore, the invitation system is one of the key mechanisms for MetaChain to quickly expand the network. On the other hand, you must become a participant to qualify for recommendation, and participants themselves need to contribute to MetaChain and pay time and money costs. Therefore, the old node definitely does not want the new node he recommends to be a perpetrator who damages the network. Or people who do nothing. Therefore, the invitation system also encourages old nodes to carefully select qualified and outstanding new nodes to join when recommending new nodes. It is a transmission of trust and consensus.

4.3 Representative System
MetaChain consists of two layers: the top layer of validation nodes and the lower layer of MetaChain nodes. The top layer, comprising hundreds of validation nodes, is responsible for block production, while the lower layer, made up of millions of MetaChainDVPN and smart home gateways, oversees and selects the top layer validation nodes. The DVPN and smart home gateways in the lower layer earn new MC tokens by completing economically valuable tasks. Each node is associated with an account, and the more tasks a node completes, the higher its associated account's credit score. Each client or gateway can delegate its credit score to a validation node.

This design is inspired by the representative system used in some countries, where citizens elect representatives to form a parliament that formally exercises state power on behalf of the public. In MetaChain, DVPN clients or smart home gateway nodes provide credit votes to validation nodes, who then represent all DVPN and smart home gateway nodes in building MetaChain's network consensus.

MetaChain's representative system mechanism, with its dual-layer architecture, allows any number of participants to join in consensus building without affecting efficiency, demonstrating network fairness. The scalability of the system is inherent in MetaChain's Layer1+Layer2 architecture. Each MetaChainDVPN and smart home gateway has certain computational capabilities, capable of micro-payment and other transfer functions. Tasks computed and packaged on DVPN or smart home gateways are then uploaded to the chain, greatly improving the overall system efficiency and inherently solving scalability issues.

  1. Node Selection
    The MetaChain network consists of two layers. The top layer includes hundreds of validation nodes continuously generating new blocks, while the MetaChain layer comprises millions of MetaChainDVPN and smart home gateways. The NPoW proof allows MetaChain's DVPN and smart home gateways to earn new tokens by completing various economically valuable tasks. Each gateway is associated with an account, and the more tasks a gateway completes, the higher the credit score for the corresponding account.
    5.1 Token Staking
    All DVPN clients and smart home gateways must deposit a certain number of tokens as collateral when registering to join the network. Thus, if a malicious party wants to control many nodes, it must first deposit a significant amount of tokens, essentially following a proof of stake mechanism.

5.2 Credit Rewards and Penalties
5.2.1 Minimum Credit Requirements
Upon joining the network, a node must reach a minimum credit threshold before it can receive rewards. When a MetaChainDVPN or smart home gateway ceases to complete tasks on the MetaChain network, its credit is gradually reduced until it reaches a predefined threshold.

5.2.2 Credit Purchase
If a user's credit score falls below the predefined threshold, they can purchase credits using MC to reach the standard threshold. A portion of the MC used for buying credits is distributed as rewards to miners, including validation nodes, token stakers, and credit delegates.

5.3 Mining Revenue Distribution
5.3.1 Block Generation Rewards
Validation nodes require sufficient staking and credit scores to reach the nomination threshold and qualify for block generation. DVPN and gateways vote, delegating their staking and credit scores to a validator. Upon successful block generation, the validator receives block rewards, which are distributed by the system based on the credit score contributions of the DVPN and gateways.

5.3.2 Workload Earnings
Nodes are incentivized to earn profits through positive, sustainable work tasks. DVPN or gateway nodes complete web3 tasks to earn MUSD workload certificates. The system automatically settles MUSD workload certificates from the previous day, calculating rewards based on the daily contribution ratio of the node to the total contributions.

5.3.3 Staking Earnings
Earning high credit through staking promotes a significant increase in network nodes early on. The system gives different staking rewards to DVPN or gateways based on their credit level. As the number of network nodes gradually increases, the usability between nodes and the on-chain application ecosystem become new focuses, and workload rewards will gradually replace staking rewards.

5.4 Burning Mechanism
5.4.1 Treasury Burning: The treasury, the primary funding source for on-chain governance by MetaChain users, typically derives funds from transaction fees and fines on all on-chain transactions. 1% of the funds are burned every natural month.

5.4.2 Credit Replenishment Burning: DVPN or gateway offline leads to a decline in credit, affecting user staking or validator revenue distribution. Burning MC can replenish credit to its historical highest level, typically at a rate of 1 credit point = 50 MC.

  1. Community Governance
    In the world of blockchain, not only is there a need for primary productive technology and corresponding value measures, but also a management system that allows for self-evolution. In MetaChain's autonomous system, the project side responsible for mainnet construction, technical upgrades, and community incentives will exist as a foundation or association in the future. DAPP developers driving technological development and validators ensuring MetaChain's operation will play a special role, significantly contributing to blockchain development. Meanwhile, the broad MetaChain user base can also become members of the community, even part of the community management organization, contributing to the governance and building of the MetaChain ecosystem.
    Community management organizations will each have their duties and work together to ensure the development of the ecosystem and the smooth operation of the community, maintaining the healthy development of the production relationship and productive forces within the system. Token incentives compatible with the MetaChain consensus mechanism will act as a glue promoting the mutual advancement of productivity and production relationships.

6.1 Duties and Division of Management Organizations
To promote the prosperity of ecosystem construction, maintain community order, ensure the normal operation of the self-regulatory system, and ensure fair and transparent asset disposal, the system has established the following organizational structure:

Foundation (Association): As the project side, it undertakes long-term planning and major event arbitration; providing rewards to nodes, developers, and other contributors to the MetaChain ecosystem.
Technical Committee: Mainly assists in promoting the technological optimization, construction, and progress of MetaChain and various DAPPs.
Community Committee: Responsible for daily management and operational work of the community, ensuring the community's activity and orderly operation.
Ecosystem Construction Committee: Responsible for proposals and implementation related to ecosystem construction, guiding healthy ecosystem development.

  1. Token Economy
    MC, as the secondary market trading token, can circulate in multiple ecosystems or systems, such as Polkadot, Ethereum, and BSC ecosystems, with its market price determined by numerous participants in the secondary market. MUSD, as an internal stable medium, has a fixed value and circulates only within the MetaChain internal ecosystem. It has non-transferable, non-tradable characteristics, and the purchase and use of MUSD are not investment actions. It allows for the promotion of ecosystem applications and development at stable, predictable prices.
    7.1 MUSD
    For Web3.0 applications, most project parties adopt direct native token transactions, but this presents a high entry barrier for ordinary users. MUSD is developed as a stable point anchored to the US dollar (1 MUSD = 1$), used for paying application and service fees, promoting the development and use of on-chain applications at stable prices. When users burn MUSD to use on-chain application services, corresponding workload certificates are generated. Nodes select and execute different tasks based on their configuration rules, completing tasks to earn corresponding proofs of work. MUSD is issued as an application point within the system, with no trading or speculative properties, meeting the needs of users unfamiliar with blockchain technology. Typically, users can obtain MUSD by burning MC, with the exchange rate of MC being variable.

7.2 MC
The incentive token used in MetaChain is MC, mainly for node economic incentives. It is the primary value currency of MetaChain. The total supply of MC is capped at 10 billion, with 6 billion allocated for incentive mechanism rewards, primarily through NPoW, Proof of Credit, and validator block production. Apart from the native MC token, MetaChain uses MUSD as a point for payment in various applications and services.

Project Planning
8.1 Roadmap
Q3 2023: Reach 5 million users, third MC mining reduction expected between 2023.4.25-2023.4.30. Complete MetaChainVPN functionality iteration, expected by the end of May 2023.
Q4 2023: Development of MetaChain public chain, design of on-chain governance model.
Q1 2024: Establish credit endorsement, increase brand exposure.
Q2 2024: Launch first public offering.
Q3 2024: Connect with private institutions, complete financing.
Q4 2024: Launch public testnet with consensus algorithm, target nodes for the upper layer: several dozen; target nodes for the lower layer: tens of thousands. Build DVPN network and client.
Q1 2025: MetaChain reaches 10 million critical users, stops MC mining, begins mapping to mainnet.
Q2 2025: Launch DVPN product (first shared economy DAPP on the chain), enter the shared economy track.
Q3 2025: Promote DVPN extensively, enrich MetaChain public chain ecosystem.
Q4 2025: Recruit developers, jointly govern the public chain.
2026: Explosive user growth due to the shared network. Estimated scale: Node providers: 10,000+; Node users: 100,000+; Daily transaction volume: $50,000.

8.2 Token Distribution Plan
Our token, known as MC (MetaChain Token), is issued through Ethereum deposits, with a legal value. The total number of tokens issued by the MetaChain project is 10 billion (10,000,000,000). Unsold MC tokens will be reallocated to "mining" and reward projects for community participants.

Incentive Pool: 60%
Private Sale: 20%
MetaChain Foundation: 10%
Promotion Pool: 5%
Market Promotion and Operations: 4%
IDO: 1%

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