What is OpenChain?
Last updated
Last updated
The blockchain industry and the infrastructure of the Internet of Value are being built rapidly around the globe, and to many the atmosphere is eerily similar to the building of the Internet in the late ‘90s, with pioneers and dreamers coming together to build a new future. OpenChain and OPC Coin can be a leading part of this phenomenon through seamlessly merging an ecosystem of social and consumer applications integrated with cryptographic tokens used by millions of mainstream users with a unique blockchain infrastructure architecture, allowing for fast, frictionless payment and a secure, decentralized, and trusted store of value.
The Internet of Value is understood as a phase when values and digital assets exist as a packet of information on Internet via blockchain technology. These packets of information are transparent, secure, programmable, and globally accessible to anyone with Internet. Our mission is to be a leading force in building this era, designing its infrastructures and working toward a reality that will make knowledge, decentralization, financial independence, and opportunities accessible to everyone, everywhere. Our goal is to make OpenChain infrastructure powering a host of multiple successful decentralized applications and supporting thousands of cryptographic tokens from established small and big companies and to make OPC Coin one of the most valuable and important digital assets for millions of people.
OpenChain is an innovative solution to the scalability problem with the Ethereum blockchain in particular and with all current blockchain network in general. OpenChain plans to support horizontal scaling via adding more second layer blockchains with good performance integrated with Ethereum network for backup and atomic cross-chain transfer. OpenChain is envisioned to be a network of chains that supports instant confirmation, near zero transaction fee, and smart contracts which will be an ideal solution for decentralized apps, token issuances and token integrations for small and big businesses alike. OPC Coin will be the protocol token that govern and regulate this infrastructure. OpenChain will be a critical part of the alternative financial system based on Internet and blockchain technology which is more secure, transparent, efficient, inclusive and equitable than the traditional regime.
The OpenChain will be the first consumer application utilizing OpenChain blockchain infrastructure. OpenChain aims to build a new decentralized social network with a built-in cryptocurrency. In this social network, each contributor role is highlighted and rewarded; user privacy is respected and micropayments are easy, cheap and fast. OpenChain approaches this goal by focusing on building a Q&A social site in which a network of contributors are answering questions and creating valuable content. All Q&A contents are publicly available to create a public library of instructional videos and answers. It is planned that OpenChain will have a native token running on OpenChain infrastructure.
We are working on the OpenChain, a blockchain infrastructure framework, which is an open-source, high performance, nearly zero (economically) fee and instant confirmation blockchain that can process billions of financial transactions per day. In the current plan, OpenChain is designed to be a public permissioned chain pegged to the Ethereum network. OpenChain is a technically innovative and significant component that makes OPC Coin and other cryptographic tokens issued on it secure, transparent and trustworthy enough to be a store of value as a digital asset. The current feature plan of OpenChain includes:
Proof of Authority consensus based on Ethereum codebase
Masternode and servicenode system
2 second confirmation and nearly zero transaction fee for transactions
Support all Ethereum, BSC smart contracts
API supports for token issuances and integrations
Zero-fee atomic cross-chain transactions (between Ethereum, BSC and OpenChain back and forth)
Sending transaction within OpenChain with nearly zero fee and fast confirmation
Mining, cashing in and cashing out features based on smart contracts
Node protection against spamming algorithm
Built-in exchange protocol and ICO smart-contract templates
Decentralized governance application
In our opinion, a secure and user-friendly coin wallet that gives financial control back to the end-users is one of the most important parts of the infrastructure of the “Internet of Value”. It will bridge the gap between a cryptocurrency enthusiast and a mainstream user – and possibly increase the adoption rate of cryptocurrency by 10-fold if done right. OpenChain shares the same backend infrastructure of OpenChain application such as ReplyBlock, third party APIs, decentralized identity system, coin exchange smart contract and APIs etc. The planned feature set of OpenChain will be as follows:
Will allow users to safely store OPC Coin, Ethereum, and other coins and tokens on Ethereum or OpenChain.
Users will be able to safely send OPC Coin, messages and other coins and tokens to friends and contacts.
APIs for 3th party bots and applications
Poolswap is a decentralized exchange running on Openchain, with lots of other features that let you earn and win tokens, multiple bridges (BSC, ETH, TRON, POLYGON, SOLANA, etc).
This section discusses some current technical issues behind OpenChain, OpenChain, Applications running on OpenChain and how they connect with the Ethereum blockchain.
Currently, the average confirmation time on the Ethereum blockchain is 17 seconds. The number of transactions in the Ethereum blockchain is increasing day by day, from 38,730 to 102,103 in the first quarter of 2017 – a rise of 163% – and it will continue its steady increase, with new applications and users joining the Ethereum ecosystem by the minute. The Ethereum blockchain can process around 8.5 transactions per second, equivalent to 740,000 transactions per day. There are some significant changes to the Ethereum protocol planned in its roadmap, such as a transition from proof-of-work distributed consensus to proof-of-stake consensus, which will potentially raise the bandwidth further.
With a conservative estimate of 100k active users after the first year of operation, the OpenChain application’s goal is to become a first-class, mainstream application using cryptocurrency. This requires, firstly, instantaneous financial transactions within the app; secondly, minimal or no-cost financial transactions within the app. With that goal in mind, Ethereum mainnet would not be the ideal choice for directly hosting all of financial transactions given that a single app such as the Crypto Kitty app can quickly slow down the whole network after achieving popularity. We are designing our OpenChain solution to better satisfy the given objectives but also maintain the cryptocurrency characteristics of OPC Coin.
OpenChain is a blockchain infrastructure solution to the scalability problems with building mainstream applications on Ethereum or other blockchain technologies in general. OpenChain is a public permissioned blockchain with integrated smartcontract functionalities (currently based on the Ethereum code-base) which allows for nearly zero fee & instant transaction speed with public auditability of financial transaction records. OpenChain opts to use Proof of Authority and build nodes in multiple locations to make sure the database in a highly secure, immutable state. APIs for third parties will also be standardized and published in the next phase of development.
Below is the integrated architecture of Openchain & OpenChain utilizing OpenChain infrastructure and connect with Ethereum blockchain.
Openchain Reward Engine will emit coins to users based on the contribution of users to the network. Financial transaction will be hashed and stored in blockchain to ensure the security and transparency of the data and to maintain a high level of trust. Openchain integrates with some chains: the first one is the Ethereum, BSC blockchain which will be used to issue ERC-20 & BEP-20 tokens and allow users to sell and buy tokens via our DEX and third party exchanges. The second is a side chain (OpenChain) that will host all financial transaction within our system. Both the sidechain and the Reward engine will interact via our Smart Contracts.
OpenChain will share an identity database so that users can use the same account to login to applications. There will be published APIs for third parties to use the same service. OpenChain development will create a secure and decentralized identity service for OpenChain network.
The OpenChain allows users to control and use multiple addresses. The addresses could be from different blockchains such as OpenChain, Bitcoin, Ethereum. Private key will be encrypted with a passphrase and saved in both client and server. The process of encrypting and de-encrypting will stay only at the client side. Therefore, no one has an access to the private key without the passphrase. If users change devices, users will need to use the passphrase to synchronize the data and access to their accounts. The security of digital assets from users is very important to us. We are using BIP32 and BIP39 to generate random passphrase and ask users to save the passphrase securely.
OpenChain has a separate backend following microservice architecture. This backend collects data from blockchain for analysis and serves features such as Notification, Message, Feed etc. Financial transactions will not go through this backend but will go through OpenChain to maintain security and transparency at the highest level.
The OpenChain allows third parties to use its infrastructure and user’s graph. Third parties can use the open source SDK provided by OpenChain or to use the standard APIs using Restful. OpenChain also provides WebHooks at multiple levels to the third parties.
Messaging is an important communication function in OpenChain. We use client encryption and peer to peer communication protocol allowing messages to pass between users not through OpenChainWallet’s servers. QR codes is the chosen interface for OpenChain transactions and micropayments.
Users can use OPC coin for many services within OpenChain. Users can use OPC Coin or other Tokens in Ethereum and transfer it to Openchain. The process is done via smart contract.
In Proof of Authority (PoA), all node validators are chosen based on collaboration between parties. PoA consensus is suitable for an organization who want to build a transparent blockchain supporting external auditability but control who can join the node network (permissioned public blockchain). OpenChain opts to use PoA and build nodes in multiple locations to make sure the database in a highly secure, immutable state. In the future, other organizations want to utilize this architecture can join to be a partner and and operator of OpenChain.
Kovan is an open-source based on Ethereum codebase and developed by Parity. Kovan is using PoA, however Parity only allows selective partners to join the network. Consequently, Ethereum foundation created Rinkerby Testnet, also using PoA and allowing a wider range of partners to join. OpenChain plans to use Ethereum-based, POA consensus to build a customized OpenChain. This is a good choice given the level of maturity in documents, code bases, smart contracts within the Ethereum ecosystem.
In the paper “A vision of the Internet of Value”, Long Vuong points out there are seven dimensions of a new money technology: transparency / anonymity; efficiency; security
/ counterfeiting risk; accessibility; decentralization / trust independence; programmability; and acceptability. OPC Coin can become the cryptocurrency of choice for a certain class of end-user if OPC Coin can be the best in its class in a certain dimension, or if OPC Coin can accrue a unique combination of characteristics that appeals to a subset of end-users. Being the native cryptocurrency to OpenChain, OPC Coin will be the reserve cryptocurrency with all the third-party apps running on OpenChain. Being the protocol token for the OpenChain infrastructure, OPC Coin will be needed by all the parties utilising OpenChain to build applications or issue and integrate cryptographic tokens into their applications. Research and development is at work on the security and UX of the OpenChain; and the efficiency, programmability, and security of OpenChain will further improve the value of OPC Coin in the future. OpenChain is a public blockchain protocol comparable to other public blockchain such as: ICON, POA network, EOS etc…
“...Tokens are a breakthrough in open network design that enable: 1) the creation of open, decentralized networks that combine the best architectural properties of open and proprietary networks, and 2) new ways to incentivize open network participants, including users, developers, investors, and service providers. By enabling the development of new open networks, tokens could help reverse the centralization of the internet, thereby keeping it accessible, vibrant and fair, and resulting in greater innovation...”
Chris Dixon - investor and researcher at A16Z venture - 6/1/2017.
OPC Coin is a cryptocurrency of fixed supply, consequently it is long-term and non-inflationary. Like other cryptocurrencies such as Bitcoin and Ether, units of OPC Coin are fractionally divisible, fungible and transferable to other OPC Coin holder. OPC Coin will be implemented on the public Ethereum, BSC blockchain as an ERC20/BEP20 token. The ERC20/BEP20 token interface allows for the deployment of a standard token that is compatible with the existing infrastructure of the Ethereum ecosystem, such as development tools, multi-signature wallets, ICO contract scripts and exchanges. The Ethereum blockchain is currently the industry standard for issuing custom digital assets such as cryptocurrencies and smart contracts because of its Turing-complete language allowing for the writing and deployment of complex trustless smart contracts such as the issuance contracts of Golem or TenX digital tokens etc. These features and active ecosystem make Ethereum the chosen settlement layer for OPC Coin.
OPC Coin’s price will be determined by the force of market supply and demand. On the fundamental level, demand for OPC Coin will be closely related with the popularity and usage of OpenChain infrastructure and D-apps ecosystem on top of it. Later on, this demand will also increase with the capability of using OPC Coin for transactions in physical locations. On the supply side, OPC Coin has a fixed supply pre-determined on the issuance day, but only a percentage of the total coin will be released initially to the crowdsale participants. The company and advisor’s allocation will only be released gradually based on a vesting schedule over several years. The rest of the coins will be released over a 8 years period to the network contributors via the Reward Engine to masternode/ Ecosystem Building program and other developer’s partnership program.
The planned allocation of coin is as follows: 50% of coins going to the crowdsale participants; 15% of coins going to the company and advisors, 35% of coins going to the Reward Engine to masternode/ Ecosystem Building program and the emission will last 8 years at around 4,5% per year. After 8 years, the initial coin reserve will run out but the Reward Engine/ Ecosystem Building program could continue from the network’s revenues such as fees from other services and applications. The collective of coin holders could give guidance on the options for the network to move forward at this point. The following chart illustrates the OPC Coin yearly inflation rate toward a fixed supply after 10 years.
OPC Coin supply is fixed at 1 billion coins. The allocation is as follows: 500 million is going to the token sale event; 350 million is going to Reward Engine/
Ecosystem Building program and will be distributed to users and developers based on relative contributions to the network over an 8 year period; 150 million is going to the software company which allocates the coin to team members and advisors over a vesting schedule in a 4 years-period. OPC Coin is important in several dimensions to the OpenChain infrastructure, firstly, OPC Coin will be used as a source of funding to complete the development of OpenChain, secondly, OPC Coin being used in the Reward Engine to masternode/ Ecosystem Building program as an incentive mechanism to build OpenChain ecosystem and community; thirdly, OPC Coin being used as a long term decentralized governance instrument of OpenChain infrastructure , that means we will build tools to gather opinions from coin holders to decide the future direction including OpenChain infrastructure, and other critical services and applications; fourthly, OPC Coin can be used as the native payment method within other third-party services and applications.
We have a long-term commitment to complete the product, engineering and marketing roadmap for the OpenChain ecosystem including OpenChain, dApps running on top of OpenChain and OpenChain Wallet. Consequently, figuring out the resources needed to get the works done effectively, we estimate to spend at least one and half million $ per year over 4 year period before the network can start to have other stream of revenues. To be on the safe side, the company ideally needs eight million $ to plan for 4 years ahead. The maximum hard cap is 8.5 million $. The token sale structure is following:
A maximum of 7.5 million USD worth of token will be sold to qualified private - presale contributors
A minimum of 1 million USD worth of token will be sold to public contributors in a later date
The actual conversion price to OPC Coin from other cryptocurrency contributions will be calculated based on the market prices of other cryptocurrency at the end of the whitelisting period. The coins not sold out after the public sale will be kept by the company and locked for a one-year period. The coins reserved for the team members will go through a 4-year vesting schedule.
The estimate allocation of the proceeds from the token sale is in the following diagram:
The testnet for OpenChain is available at
