Fairbloc Technical Whitepaper

Transcription

1 Fairbloc Technical Whitepaper V 1.0 Žiga Lukša Ninoslav Kutnjak Arne Žabkar

2 Summary Futourist is powered by Fairbloc - a universal value distribution engine which enables the connection of users with companies in a mutually beneficial relationship. It is based on a custom protocol solution built on Ethereum blockchain. It provides seamless transparent distribution of value. Monetisation of any kind of content is enabled with Fairbloc and it drastically simplifies the relationship between the two worlds - businesses and content creators. Fairbloc comes as a separate product from the Futourist platform. It connects content creators with content investors as a service which is applicable to any website, app or social network. When Fairbloc becomes fully functional, businesses looking for advertising, social reach or simply 1 on 1 influencers will be able to register business accounts on Fairbloc. They will be provided with several business templates, applicable for different content or situation. These templates will enable access to sponsored campaigns, user written guides, social reach or other online content based materials. Business templates which are in development are the following: The Social Reach Template The Review Monetisation Template The Influence Monetisation Template The Music Monetisation Template The first business template which Futourist will use is the custom ICO promotion template. This template will be rewarding content creators with tokens for their content about Futourist. Blog posts, forum posts, articles, Youtube vlogs and other video content, social media promotion and reach - all of those will be hooked to our ICO promotion template, reviewed, automatically measured for their real content value and rewarded accordingly. This policy of content rewards will later be applied to all our business templates. Future plans for Fairbloc: Build the first platform in the world which is applicable to any online business that rewards users for generating content. Make rewards for content accessible to everyone that engages with the platform, in an understandable way, tailored for common users. Provide API integration with a plethora of other services that benefit from our content, such as social media, booking platforms, blogs, etc. Fairbloc will be tested on a global level on the Futourist platform. Fairbloc will be ready for implementation for the first customers - other platforms that can take advantage of its unique functionality, at the time of the official Futourist launch in the second half of 2018.

3 Table of contents Fairbloc Technical Whitepaper 1 Summary 2 Table of contents 3 Fairbloc - the engine behind Futourist 4 System technical structure 5 Content Investors 5 Business Templates & Smart Contracts 5 Fairbloc 5 Platform Owners GUI 6 Content Creators and Communities 6 How does Fairbloc work? 7 Pareto distribution 8 Introducing Business Templates 9 Business templates: 10 Social Reach Template 10 Review Monetisation Template 10 Other Templates 10 Fairbloc from the user s perspective 11 Addressing privacy questions 11 Campaigns 11 Rewards 12 Fairbloc from the business perspective 12 The role of tokens in the Futourist system 13 Futourist Economy Engine 13

4 Fairbloc - the engine behind Futourist Fairbloc is a universal value distribution engine, based on a custom protocol solution built on Ethereum blockchain. It is an essential part of the Futourist project, which was developed for content rewarding purposes. The vision behind Fairbloc is to become the first platform that will connect content creators and content investors in a mutually beneficial way. With further development it will be applicable as a universal service to any website, app or platform. Fairbloc will provide transparent distribution of value and will function seamlessly from the background. It will enable monetisation of any kind of content and it will drastically simplify the conversation between two worlds - businesses and content creators. This monetisation will be possible with business templates. The first one, which is already developed, is the Social Reach Template. In the following chapter about Templates we describe it in more detail. Fairbloc s use will be proven and ready to implement to the first big use case - Futourist. Fairbloc will then be ready for implementation to other platforms which can take advantage of its unique functionality at the time of the official Futourist launch in the second half of Fairbloc will help build a world where every platform can use its system to collaborate with users in a mutually beneficial way.

5 System technical structure Key Components and their roles in the Fairbloc technical structure Content Investors Content investors are businesses, companies or services that are looking for online advertising, marketing, awareness/reach or ultimately quality content. They enter Fairbloc by buying FTR tokens and choosing the Business Template. Business Templates & Smart Contracts Each Business Template is directly correlated with campaign goals that businesses choose. In order to reach those goals business templates consist of a web part (API integration) and a smart contract (transparency, token distribution, trust). After the business template is chosen and FTR tokens are put into it, Fairbloc connects the business with partner platforms. Fairbloc Middle man or bridge between Content Investors and Content Creators. Fairbloc consists of 3 parts: A web GUI (graphic user interface) for Businesses with several Business Templates A collection of Smart Contracts that manifest Business Templates on Ethereum A database of different websites, platforms, social networks and their communities - Content Creators

6 Platform Owners GUI This represents the entry point for each website owner that wants to connect his platform to Fairbloc and receive tokens for his community. By applying websites or platforms to Fairbloc business owners create a win win situation, where they can grow their community and the quality of their content by rewarding them with a large portion of advertising income coming in from Content Investors (left side of the diagram). Content Creators and Communities Fairbloc is all about content and content creators. Beside its technical characteristics, each business template holds special rules that always bring value to content creators and communities in a transparent and trustworthy way.

7 How does Fairbloc work? Fairbloc is a platform which provides a custom blockchain protocol for reward distribution. Once developed and tested on Futourist, it will be applicable to all websites, social media platforms and other channels which mainly focus on user generated content. When Fairbloc will be ready for public use, businesses looking for social campaigns, brand awareness or influence marketing will be able to register a business account. They will use tokens in order to sponsor campaigns, social reach or other online content based materials. Fairbloc will provide several business templates applicable for different content. One of the first business templates we developed as a proof of concept is a rewarding campaign. It was developed in order to reward people who will help us create a social reach on social platforms. It consists of the following elements: 1. Contest Creation 2. User engagement statistics 3. Spam, both prevention and other security measurements 4. Contest completion 5. Reward distribution based on the Pareto principle, enabled with smart contract

8 Pareto distribution The Italian economist Vilfredo Pareto originally used this distribution to describe the allocation of wealth among individuals, since it seemed to show rather well the way in which a larger portion of the wealth of any society is owned by a smaller percentage of the people that are part of that society. He also used it to describe income distribution. This idea is sometimes called simply the Pareto principle or the "80-20 rule" which states that 20% of the population controls 80% of the wealth. Inspired by the Pareto wealth distribution, Fairbloc uses the same formula to reward content creators based on their rating. Speaking in the same terms as above, this means that the best portion of reviews will be rewarded with the biggest amount of tokens. The Pareto distribution is characterized by the following probability density function: where xm and alpha are parameters, determining the scale and slope of the distribution. Figure 2 shows the illustration of such distribution. Graph 2: Pareto distribution Example of a Pareto distribution (α = 5) where $20,000 are distributed among 5000 reviews: reviews between places will receive from $95 (first place) to $11 (100th place) reviews between places will receive from $11 to $5.56 reviews between places will receive from $5.56 to $3.45 reviews between places will receive from $3.45 to $3.20 The Pareto chart curve and the example of the Pareto distribution clearly point out the Long tail (most of the users) rewards for all users involved in a contest. Not only does the Pareto distribution solve fairness in wealth distribution, but by nature it allows for a Long tail reward distribution - since the curve slowly drops towards the x-axis, but never touches it.

9 Introducing Business Templates Online content creation and advertising are always evolving. This is why our goal is to create a universal value distribution engine that will be able to evolve as well as link content creators with content investors in a mutually beneficial way. This will lead to the creation of a simplified monetisation for businesses, which before was a very complex process. In an attempt to enable a simple and beneficial link between creators and investors, we are developing business templates which are suitable for different cases. Three of four templates are already in full development. The Social Reach Template will be used for our Reward Campaign when ICO will open. The Review Monetisation Template is more complex and it will be applied in Q2 of 2018 in the beta Futourist mode. The third one, the Influence Monetisation Template is also in development and will be available for businesses in The fourth template is the Music Monetisation Template. But what actually is a business template? It is a description of online service which connects and enables monetisation between the content creator and the content investor. Each business template leads to an online campaign which comes with the following variables: Campaign Goal (social reach, reviews, written articles, etc.) Campaign engagement (the campaign is automatically promoted to all users within Fairbloc) Campaign measurements Campaign results Campaign rewards

10 Business templates: Social Reach Template This is the first template that will introduce Fairbloc even before the ICO. It was developed as a Minimum viable product (MVP) in order to show that Fairbloc is already functional. This system will first enable Futourist ICO to raise awareness with the help of anyone through social media and different channels. It will be used for any ICO with the intention of spreading its awareness by anyone. In return, the team behind the ICO will offer the projects tokens as a reward. The process of this template will be as follows: The ICO page will enable registration where users will register and link their social media and other accounts to the template. Fairbloc will calculate the user s social power and show his/her level. The user will then spread awareness of the ICO project by posting, sharing and liking the content connected to the project. When the ICO will be finished, Fairbloc will distribute tokens based on the user s activity. Users will login in their account, claim their tokens and receive them. Review Monetisation Template This template is a Fairbloc implementation to review platforms, rewarding all content creators with tokens generated by businesses which advertise on that same platform. It will be first applied in 2018 in the beta version of Futourist... Other Templates The other two templates, the Influencers monetisation template and the Music Monetisation template are in development and will be revealed in due time. With business templates we want to address different situations and make Fairbloc as widely applicable as possible. We are considering many other business templates in the future and are open to our community s suggestions.

11 Fairbloc from the user s perspective Fairbloc has two separate user profile registrations. The first one is for users (content creators) and the second one is for business accounts (content investors). Upon registration users have the option to connect their existing social media accounts to Fairbloc. Social media attachment to Fairbloc brings several advantages for the user. The main advantage is the opportunity to apply to contests that fit the specific user (age, gender, location, interests, etc.). Once the user links his/her social accounts to the Fairbloc profile, Fairbloc measures his/her engagement power. Engagement power is an important variable which is available for content investors in order to filter users with a higher or a lower level of engagement. Addressing privacy questions Connecting content creators with content investors can be hard if content investors do not know their users. Direct marketing has changed the way advertisers think, that is why it is impossible to expect online advertising without collecting user data. So how are we addressing this important question? First of all, we are offering users several tiers of external accounts linking. If a user wants to be able to compete in the highest rewarding campaigns, he/she will have to achieve a higher tier of account linking, which allows businesses to filter users that are within their marketing target. Lower tiers are reserved for users who don t want to share any data because they will also have a chance to participate in other campaigns. All users who achieve the highest tier of verification and put their user data into the marketing pool are still highly protected because Fairbloc makes all data anonymous before content investors can look into it. And since Fairbloc does not work with displaying ads to users who join Fairbloc, this means all users can participate in any campaigns they like while their user data remains anonymous and intact. Campaigns Once a content creator joins Fairbloc, he/she may fill out a short questionnaire and link his/her social media accounts. This makes the user targetable for different campaigns. When a new campaign is started, all users that are applicable to participate are notified via the Fairbloc platform, or any social media with a direct messaging bot. Users can then review the campaign requirements and campaign rewards, and decide whether to participate or not. Once the user completes all campaign goals, he is automatically placed into the campaign reward pool and remains there until the end of the campaign. Once the campaign ends, there is a final stage of the campaign and that is reward distribution. Users are sorted by their success in that specific campaign and they receive tokens accordingly.

12 Rewards When the user finishes a campaign, he/she is rewarded in FTR tokens. In order to achieve real blockchain commercialization we know that we need to implement a simple cash out system. This is why Fairbloc is offering several cash out channels for content creators: FTR Credit/Debit Card FTR Marketplace (spending tokens on services or products) Simple exchange between tokens Rewards are not only financial though. When creating Fairbloc and FTR we wanted to achieve more than just rewarding users. We want to create new online superstars, that is why we are also implementing rich achievement systems which measure the user's success in previous campaigns, awarding them with higher achievements, exposing them to 1 on 1 influencer advertising deals or campaigns run by content investors. Fairbloc from the business perspective Any online or offline business may join Fairbloc and start a campaign on it. Business registration is completed by business verification and campaigns may be started by purchasing FTR tokens. So, if all users are rewarded with FTR tokens, all campaigns should be started with an FTR token pool. After registering, verifying and buying enough tokens, business owners can start creating their campaigns in Fairbloc. Each campaign starts with a different goal. For example, a business owner starts an ICO promotion campaign. When running an ICO social reach is priceless and several successful ICO s run their crowdfunding on a social media bounty system, rewarding all participants with tokens. On Fairbloc an ICO promoter would therefore start a new ICO promotion campaign, leading him to the next step of defining token rewards. Once the amount of tokens intended for rewards is configured, the content part of the campaign has to be defined. At this point the campaign creator chooses different social media bounties, posts or sharing elements and sets the share of tokens intended for a specific reach. After that everything is handled automatically: All existing Fairbloc users receive a notification about a new sharing campaign. Existing Fairbloc users help sharing ICO social media posts and therefore ICO awareness. All other users are engaged with bounty from the social media site and are invited to join Fairbloc in order to claim their token rewards. All measurements of the campaign can be monitored live. The content part of the campaign can be changed anytime. Once the campaign is finished, tokens are automatically distributed to all Fairbloc users via smart contract.

13 The role of tokens in the Futourist system The FTR token is an irreplaceable part of the Futourist platform as a method of value exchange inside the platform. Its ownership grants holders the right to receive the value based on their activity. When users interact with the content by entering a competition and use the other features on the platform, they receive tokens. Those cannot only be traded on the exchanges where they become a formulation between buyer and seller, but can also be used for other purposes in the future. The tokens will therefore be used also as an incentive (by monetization) to create something meaningful for other users and will therefore generate added value to the ecosystem of the Futourist platform. The token will provide numerous effortless transactions within the platform and will provide a simple monetization and value interaction between the platform, customers and users. There will also be other opportunities for using FTR tokens outside the platform. One of those will be the ability to purchase a product or service from Futourist s partners and customers with FTR tokens. The other use will be the process of transporting FTR tokens from the Futourist platform to external wallets or exchanges. The purpose for that will be the storage of FTR tokens or exchange fiat or other cryptocurrencies. Futourist Economy Engine In order to get Futourist s economy in run, the demand and supply side of the token economy must be properly stimulated. Initially the Futourist team defines contests that will attract users who generate content and compete for rewards distributed from the reserve pool. However, in the medium to longer term Futourist wants to position itself as a platforms maintenance provider and will leave the demand for content generation to the market. We believe that the key users on the other side of the market are businesses or investors that will mostly drive demand for campaigns. These businesses will have to buy FTR tokens either on the open market or on the platform. Once they buy a campaign and the contest is set, the distribution of tokens to the winners will be performed on protocol level without any third party interfering with it.

14 We believe that every token economy needs a push in the beginning to start the wheel spinning and before network effects come into life. Therefore, a reserve of tokens is set aside and will be issued to the economy (not the open market!) by targeting key users that bring the most added value to the network. These are not just content generators, but more importantly also companies that will drive demand for such content. The most content generation seeking businesses that we foresee as long term engaged users on the platform should be attracted to the platform by giving them a limited amount of free tokens. We believe that even if a limited amount of tokens are distributed to users for free, they may carry larger utilization value if these users are properly selected. Therefore, one of our main goals is to find the most active and long term engaged users on the demand side of the market (businesses), who will ask for content being generated. Initially they will be given tokens to play with (set contests) and as the token economy will come into effect, they may recognize how this type of business model performed through incentives delivers better results in terms of content generation and brand awareness.

15 The reserve pool for the community and further projects amounts to 48% of the total token issuance and by distributing it through time it will lead to inflation. As we would not want to flood the market with unutilized tokens, a yearly distribution of tokens from the reserve pool will be limited to 20% of the remaining reserve pool, starting in the second year after the platform is developed.