Stateset Commerce Network
Stateset Network is a distributed peer-to-peer network for computational commerce.
Global State, Global Liquidity
Commerce on the Interchain
The Stateset Commerce Network is designed to facilitate real-time transactions, provide financing, and manage various agreements efficiently. As an open and interoperable platform, it paves the way for next-generation commerce solutions by seamlessly integrating with other networks within the wider Interchain ecosystem. This innovative approach fosters a more connected and dynamic environment for conducting business, ultimately leading to a more vibrant and adaptive global commerce landscape.
Global Computational Commerce
- The Stateset Commerce Network aims to revolutionize global commerce by providing a secure, efficient, and decentralized platform for real-time transactions, asset-based financing, and other financial activities.
Scalability and Interoperability
- Leveraging the Cosmos-SDK, Tendermint BFT, and IBC protocol, Stateset is built to support a highly scalable and interoperable ecosystem, connecting different blockchains within the Cosmos network for seamless cross-chain interactions.
CosmWasm Smart Contracts
- The Stateset Commerce Network supports the development, deployment, and execution of smart contracts through the CosmWasm engine, enabling versatile, secure, and customizable logic for various use cases and applications.
Tokenized Asset-Based Financing
- Through the Stateset Commerce Network, users can collateralize their assets for loans and access Invoice Factoring and Purchase Order Financing to support procurement and business growth.
Real-time Transaction Finality
- Stateset processes transactions quickly with low fees, ensuring efficient execution and instant finality for users.
DID Decentralized Identifiers
- Stateset leverages DID technology for creating legally binding electronic purchase orders and invoices, ensuring security and authenticity in business transactions.
On-chain Governance
- By implementing the Cosmos-SDK gov module, Stateset fosters a transparent, democratic, and decentralized governance system, empowering the community to lead the network evolution and future development.
Cross-Chain Interoperability
- The Stateset token (SST) connects with other sovereign blockchains through the IBC protocol, enabling seamless transfer and exchange of assets, value, and information for a truly global and interconnected economic experience.
Protocol
Stateset: A Peer-to-Peer Network for Computational Commerce
Abstract
A purely peer-to-peer network for computational contracts and real-time transactions with low fees, instant finality and minimal trust between nodes would allow for the creation of a globally distributed open commerce platform. We present the Stateset Commerce Network, a permissionless, sovereign blockchain network, and describe in detail how it achieves the goal of a state-of-the-art, collaborative financial system for global commerce. Stateset is built on a new set of fundamental technological advancements; Bitcoin [1], the Cosmos-SDK [2], Tendermint BFT Consensus Engine [3], CosmWasm [5] smart contract framework and IBC [6] for transport, authorization and ordering of packets with other blockchain networks. This creates an open, global, community structured, backend system for sustainable computational commerce.Introduction
The advent of blockchain technology has ignited a revolutionary shift across various industries, underpinning a new era of transparency, security, and efficiency. In this dynamic landscape, the Stateset Commerce Network emerges with a bold vision of reshaping the global commerce landscape by tapping into the disruptive potential of decentralized financial systems. Our mission is to orchestrate an open, universally accessible, and seamless platform for collaborative computational commerce, empowering individuals, enterprises, and organizations to engage in effective participation within the global economy, unrestrained by the boundaries of traditional financial infrastructure. In this whitepaper, we unveil the Stateset Commerce Network, a permissionless and sovereign blockchain designed to weave together a worldwide, distributed, open commerce ecosystem. Marrying the groundbreaking innovations of Bitcoin, Cosmos-SDK, Tendermint BFT Consensus Engine, CosmWasm smart contract framework, and Inter-Blockchain Communication (IBC) protocol, Stateset aims to redefine the frontier of financial transactions and global trade. By synergizing transformative technology and our steadfast dedication to user accessibility and security, the Stateset Commerce Network seeks to transcend the inadequacies of legacy financial systems. This whitepaper delineates the core principles, technological architecture, and operational roadmap steering the Stateset Commerce Network toward its ambitious objective of joining the ranks of the top 10 global blockchain protocols. We invite you to accompany us on our journey toward revolutionizing the realm of commerce, transcending national borders and cultivating an ecosystem in which economies flourish, and communities across the globe connect and collaborate via a truly distributed, efficient, and equitable platform—the Stateset Commerce Network.
SST Token
SST acts as the native digital currency and utility token for the Stateset Commerce Network. An integral component of the ecosystem, the SST token enables a myriad of functions and promotes a healthy network operation. Primary utilities of the Stateset token include: - Transaction Fee Settlement: SST tokens cover transaction and network fees, ensuring efficient and low-cost execution of transactions, contracts, and exchanges on the Stateset Commerce Network. - Staking and Delegation: Stateset utilizes a proof-of-stake (PoS) consensus mechanism where users can stake or delegate their SST tokens to validators, allowing token holders to participate in the network's consensus process and receive staking rewards. - Governance: SST token holders hold the power to vote on governance proposals and play an active role in shaping the future development and evolution of the Stateset Commerce Network. - Incentive Mechanism: Validators and delegators receive SST tokens as a reward for their contribution to the network, promoting fair distribution and encouraging active participation in securing the network's infrastructure. - Cross-Chain Interoperability: By leveraging the power of IBC, the Stateset token can interact with other sovereign blockchain networks in the Cosmos ecosystem, facilitating seamless transfer and exchange of value and assets on a global scale. The Stateset token, as the lifeblood of the Stateset Commerce Network, embodies a future where instant, low-fee transactions and trustless exchanges become the norm, enabling secure and efficient interactions in a truly global, interconnected economy.
Tendermint
Tendermint represents a cutting-edge consensus engine that increases the efficiency, scalability, and flexibility of decentralized networks. It enables the seamless integration of new nodes into the network, as well as facilitating their departure without disrupting the system's functionality. Tendermint's design allows for this innovative flexibility and adaptability by implementing an advanced form of Byzantine fault-tolerance, focused on super-majority (>⅔) voting combined with a robust locking mechanism. Central to Tendermint's security is the notion that a minimum of ⅓ of the overall voting power must act in a Byzantine manner for any violation of network safety to occur, such as having more than two values committed within the network. This built-in system prevents malicious or corrupt actors from disrupting the consensus process without being detected, as Tendermint's underlying protocol can readily identify any attempts to violate safety or the presence of conflicting block votes. Additionally, Tendermint efficiently prevents double-spending of SST, a critical concern in decentralized networks, by utilizing a cluster of nodes operating under Tendermint BFT (Byzantine Fault Tolerance). Communication between these nodes and Stateset modules is facilitated using ABCI (Application Blockchain Interface), which allows for seamless information exchange through the use of handlers, messages, and keepers. Furthermore, to ensure efficient message structuring, Tendermint employs Protocol Buffers (Protobufs), thereby increasing the overall effectiveness, speed, and security of network communication. Another key feature of Tendermint is its support for deploying computational contracts using CosmWasm Smart Contracts. This advanced functionality allows users to interact with the Stateset Commerce Network, further expanding the horizons of decentralized networks to accommodate diverse use cases and applications. In summary, Tendermint represents a leap forward in consensus engine technology, offering unmatched scalability and security for today's ever-evolving decentralized networks.
CosmWasm
Stateset leverages CosmWasm for Smart Contracts. CosmWasm is a smart contract engine built for the Cosmos ecosystem that enables the development, deployment, and execution of smart contracts on Cosmos SDK-based blockchains like the Stateset Commerce Network. It is designed to be secure, easy-to-use, and flexible, allowing developers to write their smart contracts in Rust before compiling them into WebAssembly (Wasm) binaries. In the context of Stateset Commerce Network, CosmWasm plays a critical role in facilitating various business processes and transactions through its suite of smart contracts. Below is a brief explanation of the mentioned Stateset contracts: - stateset-cw721-base: This contract provides a basic implementation of the CW-721 non-fungible token (NFT) standard. It supports the creation, management, and optional metadata for NFTs. It serves as a foundation for more specialized contracts that build upon the core CW-721 functionality. - stateset-cw721-fixed-price: This contract extends upon the stateset-cw721-base contract by implementing fixed-price sales for NFTs. This enables the listing, selling, and purchasing of NFTs directly on the platform at a predetermined price. - stateset-escrow: The stateset-escrow contract provides a secure and trustless escrow system that holds funds or assets on behalf of transacting parties until certain conditions are met. This ensures smooth transactions with minimized counterparty risk for parties exchanging assets or services. - stateset-loan: This contract enables borrowing and lending of assets within the Stateset Commerce Network. Borrowers can request loans by putting up collateral, while lenders can provide liquidity and earn interest on their lent assets. - stateset-option: The stateset-option contract facilitates the creation and trading of financial options on the Stateset Commerce Network. Users can trade call and put options on various assets, allowing them to hedge investment risks or speculate on future asset price movements. - stateset-proof: This contract provides a framework for users to upload and store proofs for a variety of purposes such as intellectual property, proof of existence, or immutability records. The contract secures these records on-chain, enabling verifiable, tamper-proof evidence for various use cases. - stateset-workgroup: The stateset-workgroup contract enables the creation and management of collaborative workgroups consisting of multiple participants. The contract can handle permission management, access control, task assignment, and tracking of workgroup-related activities. By leveraging CosmWasm, Stateset Commerce Network provides an extensive array of smart contracts tailored to simplifying and securing financial transactions within its ecosystem. CosmWasm smart contracts present a largely untapped opportunity to build more robust applications; specifically with the launch of the inter-blockchain communication protocol, the catalyst for the polycentric interchain.
IBC
IBC [6] stands for the inter-blockchain communication protocol and is like TCP/IP for Blockchain Networks. Inter-Blockchain Communication (IBC) Protocol: Enabling Cross-Chain Connectivity One of the core features that sets the Stateset Commerce Network apart is its seamless integration with the Inter-Blockchain Communication (IBC) protocol. IBC is a revolutionary protocol designed specifically for the Cosmos ecosystem, aiming to establish secure, efficient, and trustless communication between heterogeneous sovereign blockchains within the ecosystem. By implementing IBC, Stateset gains the ability to interact with a diverse range of other blockchains in the Cosmos network, fostering cross-chain exchange of assets, messages, and other relevant state information. This powerful implementation unlocks numerous opportunities and benefits for Stateset users: - Enhanced liquidity and asset interoperability: With IBC, Stateset users can seamlessly transfer and exchange their tokens and assets between different blockchains, greatly expanding the range of assets and financial instruments available for trading, lending, borrowing, and other financial activities. - Cross-chain smart contract execution: IBC enables communication between smart contracts deployed on various blockchains in the Cosmos ecosystem. This empowers developers to build more versatile and sophisticated contract logic that can be executed across multiple chains, unlocking new avenues for decentralized applications and interchain services. - Decentralized, multi-chain applications: By leveraging IBC, developers can create and deploy decentralized applications (dApps) that operate across multiple blockchains, granting users access to a broader range of services and improving the overall user experience. - Greater security and risk mitigation: With the ability to interact with multiple chains, Stateset users can diversify their investments and holdings across different blockchains, reducing their exposure to single-chain risks and potential vulnerabilities. - Collaboration and network effects: Stateset's integration with IBC promotes collaboration and growth within the broader Cosmos ecosystem, as projects can more easily interact, share resources, and work together to drive the mass adoption of blockchain technology. In conclusion, the adoption of IBC within the Stateset Commerce Network establishes an interconnected, borderless, and versatile financial ecosystem that embraces a wide range of assets, services, and opportunities across the Cosmos network. The seamless cross-chain interoperability afforded by IBC is instrumental in actualizing Stateset's vision of becoming a global platform for secure and efficient computational commerce. IBC enables multi-chain account synchronization and continuous innovation across multiple state machines. Stateset specializes in computational commerce with a focus being interoperable with other state machines and smart contracts via IBC.
Governance
Governance in the Stateset Blockchain Network: On-Chain Governance with Cosmos-SDK Gov Module In order to ensure that the Stateset Commerce Network remains democratic, decentralized, and responsive to the needs of its users, on-chain governance plays a critical role in its ongoing development and growth. Governance for the Stateset Blockchain Network is facilitated through the utilization of the gov module provided by the Cosmos-SDK. The gov module enables a comprehensive on-chain governance system that allows network participants to engage in the decision-making process, empowering the community to collaboratively guide the direction of the network. Key features of the gov module include: - Proposals: SST token holders can submit on-chain proposals for the network's modification or improvement, such as parameter changes, software upgrades, and network enhancements. Any token holder can submit a proposal, provided they pay the required deposit in SST. - Deposits: To prevent spam or malicious proposals, a minimum deposit in SST tokens is required for a proposal to enter the voting period. If the deposit requirements are not met within a specified time, the proposal gets rejected automatically. - Voting: Once the required deposit amount is gathered, the proposal enters the voting period during which token holders can vote on the proposal by delegating their tokens to their preferred option. Votes are weighted by the amount of staked or delegated SST tokens. - Voting Period: The voting period is a predetermined duration, during which token holders can cast their votes or modify their votes for ongoing proposals. - Tallying: At the end of the voting period, votes are tallied, and if the proposal secures the required majority and quorum, it gets adopted and the proposed changes take effect. - Community-driven development: The on-chain governance system enables the community to actively influence the development of new features, improvements, and the overall direction of the Stateset Commerce Network. This fosters a strong sense of ownership and responsibility among the network's stakeholders and promotes a collective mindset geared towards continual growth and improvement. - Accountability and transparency: Decisions are made through on-chain voting mechanisms, ensuring that the governance process is transparent and verifiable while promoting a fair and merit-based environment. Token holders have the power to hold validators, developers, and other network participants accountable for their actions and decisions. - Agile decision-making: By empowering SST token holders to participate in the governance process, the Stateset Commerce Network benefits from diversified perspectives, knowledge, and expertise. This contributes to more effective and timely decisions, ensuring that the network remains agile and adaptive in the face of new challenges and opportunities. The integration of the Cosmos-SDK gov module within the Stateset Commerce Network articulated a robust, democratic, and decentralized governance model, vital for the network's development, growth, and alignment with the best interests of its users. By allowing its participants to actively contribute to the decision-making process, Stateset fosters a vibrant and collaborative ecosystem that can adapt and thrive in a rapidly evolving blockchain landscape.
Virtual, Mixed & Augmented Reality Interface
VR and AR will be used as one of the primary graphical user interfaces of the Stateset Commerce Network. Stateset will leverage virtual and augmented reality headsets as well as Augmented Reality from mobile devices to interact with the Stateset Commerce Network. The primary input mechanism is voice leveraging Natural Language Processing powered by GPT-3 to interact with computational contracts on the network. Different devices such as Oculus and the Hololens will be used as an interface into the specific applications built on Stateset and also to visualize the current state of the network. This allows for visualizations of the current status of the network and also the interaction with other users and the network from within a virtual reality. Stateset Commerce Network will be the open state backend for applications that need settlement with low fees and instant finality within VR and AR.
Bitcoin Lightning
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments [1]. Bitcoin has changed the world of money and over the past decade has accrued most of the value in the new era of the internet. Bitcoin Lightning Network is used as a Payment and Protocol on Stateset. Lightning is a true advancement in leveraging the shared security of the Bitcoin Network in order to create a privacy preserving and instant payment settlement network for the internet. The Lightning Network [5] protocol is a 2-of-2 multi-signature program that allows for these transactions to be settled off of the main bitcoin network by the fulfillment of payment invoices. The program is designed to allow users to fund a channel for future payments and commitment transactions between channel participants are kept. The Lightning Network is capable of running above multiple blockchains. Stateset will leverage the lightning network for global payments and security as a base protocol for internet native money that is anchored to Stateset.
Conclusion
We have presented a state-of-the-art platform and distributed network for global computational commerce, built upon the power of Tendermint BFT, CosmWasm smart contracts, and IBC. The Stateset Commerce Network is a peer-to-peer network of nodes designed for real-time, low-fee transactions with instant finality, creating an open, decentralized backend system for scalable and interoperable commerce across the globe. This groundbreaking innovation represents the next stage in the evolution of computing, transitioning from on-premise databases to distributed cloud multi-tenant instances, and finally to a fully decentralized, blockchain-based state machine for commerce and finance. Stateset is poised to redefine commerce infrastructure, paving the way for a future rooted in more efficient, transparent, and equitable computing paradigms. As we move forward, the Stateset Commerce Network will continually strive to enhance, expand, and refine its technology and features, leveraging the collective wisdom and energies of its users, stakeholders, and developers. Together, we can create a global commerce network that enriches lives, fosters collaboration, and empowers every individual and organization to participate in and benefit from an accessible, secure, and thriving global economy. This marks the beginning of a new era for computational commerce: Stateset, the commerce infrastructure for the future.