SOCIAL CHAINS WHITE PAPER

Transcription

1 SOCIAL CHAINS WHITE PAPER 1

2 Purpose of this Document The purpose of this document is to share information about the operations of Social Chains, Inc., a global social network, and to introduce Social Chains Token (SOCT), as the recipient considers participation in the sale of SOCT. There is sensitive information enclosed, and it is expected this packet will be used solely for the purpose above. It is not for public consumption or consideration. Disclaimer The sole purpose of this White Paper is to provide relevant and reasonable information for those qualified readers who may determine to more thoroughly analyze SOCIAL CHAINS and its related tokens. This White Paper is informational only; not a solicitation, nor a contract; neither an offer nor sale of any product or security. It is merely descriptive, binding on none possible basis for any liability of commission or omission. It makes no representations. It merely describes a prospective potential start-up venture in which the reader may become more interested. Necessarily, therefore, the statements herein are speculative, forward-looking, by no means exhaustive, not intended to be relied upon for any reason other than familiarizing the reader with general concepts and perspectives relating to a prospective potential start-up and its proposed business model. Nothing described in this White Paper is security required to be registered under the securities laws of the United States, any State thereof or any other jurisdiction. Accordingly, all liability in whatever form and upon whatever basis is at this moment disclaimed and disavowed. 2

3 Contents SOCIAL CHAINS WHITE PAPER...1 Disclaimer...2 I. Summary:...4 Platform Economy:...4 II. Introduction:...5 Background and Market Problems...5 The critical Market Problems as Social Chains sees it:...7 III. Introducing Social Chains...8 What is Social Chains?...8 What is Social Chains Aiming to Accomplish?...8 Why is Social Chains Using Blockchain? Socialchains.io Product Platform Key Features: IV. Product Roadmap V. Revenue Streams VI. Go to Market Plan VII. Organization VIII. Use of Funds IX. Meet Our Tokens Token Distribution X. ICO Offering Overview Token sale bonuses XI. Contact

4 I. Summary: is a decentralized and user-driven social media ecosystem of verified and trusted users that puts an end to the massive fakeness existed in the current social media platforms. The platform respects and awards users for their time by offering tokens, points and profit share based on the level of user activity. The tokens and points are exchangeable with crypto or fiat currencies. The principal goal of Social Chains is to have a decentralized database of verified and trustful connections. The process includes verification of , phone, physical address, and a government-issued photo ID. Verification is vital as it will enable users to participate in public forums, contribute to posts, add contacts, and add public feeds. The platform of verified users is like a safe neighborhood. The community will own 60 percent of the issued tokens which empowers users in making critical platform decisions through voting. Platform Economy: The Socialchains.io platform offers wide-ranging monetization options for its users. Several offers are provided to share the platform profits among all users. In the beginning, 33% of the platform profits are distributed to the verified users based on the daily and monthly user activity. The share of profits grows from 33 to 50 percent as the platform stabilizes. 4

5 II. Introduction: Background and Market Problems With the growth of social media, we have seen an explosion in the amount of fraud conducted via this form of media. Individuals, organizations and entire nations continue to reel from scam artists hiding behind computer terminals. Setting up fake accounts remains easy, with the primary social media players unable to do much to stymie this problem. Facebook has admitted to having at least 270 million fake or duplicate accounts, while Twitter copped up to have as many as 48 million accounts without actual people behind them. To compound matters, a significant amount of fraud in the consumption of advertising expenses with click fraud at over 20%, and advertising display fraud at over 30%. 5

6 Despite all this fraud and fakeness, the major social media players continue to reap significant revenue and profits. They continue to profit not only off of user data but from fake and fraud data as well. Facebook s financials attain new records every quarter, while Alphabet, which derives most of its revenue from advertising, performs even better. Meanwhile, advertisers/marketers have started to demand that the platforms of media become more accountable for their advertising placement. Key executives are getting tired of not knowing who s behind an or phone number and if they are real at all. 6

7 Also, these negative trends have created significant distrust among consumers of social media. They distrust the news posted on social media, and various forms of interactions (e.g., dating services) and transactions. The critical Market Problems as Social Chains sees it: 1. Fakeness: - The users on currently available social media platforms are not fully verifiable as a majority of users use pseudonyms. The lack of a precise verification system brings about the spread of fake news, rumors, and misinformation, which leads to inefficient use of marketing funds, and more critically, leads to distrust among users. 2. Spread of Social Wealth: a select number of companies continue to control an increasing portion of the social value that exists in the growing social media environment. As a result, the users, whose data these companies are profiting off do not see much. 7

8 III. Introducing Social Chains What is Social Chains? Social Chains is a user-driven social platform with a focus on providing safe digital neighborhoods to the community. We care about our safety and privacy. Businesses can promote their products and services confidently to a pool of verified and trusted users. The platform distributes social wealth to the community. Also, users get full access to the Contact Relationship App (CRA) to send and track touch points ( s and Calendaring) with their contacts on the platform. The App is accessible through web and smartphones with the ability to link the user s account. On the other hand, businesses can now directly promote and approach potential clients on the platform. What is Social Chains Aiming to Accomplish? i. Reduce Fakeness: All the users of the Social Chains platform are required to verify themselves to gain access to the platform. This verification process will gather name, phone number, address, state-issued Photo ID and a selfie for facial recognition. In the process, Social Chains will have a community that can trust each other, thereby leading to trustable interactions among the users whether they are consumers or businesses. ii. Social distribution of wealth related to user data: Socialchains.io is a decentralized platform of verified users with the aim of distributing the social wealth and adding value to time spent on the social platform. Users will be paid to participate. The first 511 million verified users would get a share of 54.4% of the available 1 billion tokens. The first 1 million users will get 10 (ten) tokens each. The next 10 million users get 5 (five) tokens each, the next 100 million get 2.5 (two and a half) tokens each, the following 100 million get (point six two five) tokens and up to (point three one two five) for the future 100 million users. Individuals who verify their identity on the platform using KYC (Know Your Customer) are also awarded points on the platform. The user can exchange the tokens given to fiat or cryptocurrencies. 8

9 A user can monetize connections within the platform by increasing activity and participate in public forums with other verified users. Socialchains.io not only offers monetary value for user time but also rewards them for the value derived from their data and data generated through platform usage. Users get a share of the platforms profits creating a social economy for the platform's users. Socialchains.io also awards users with points for contributing contacts to the contact pool. Depending on the strength of each connection, the user earns between 0.1 and 1.0 points. The algorithm on the platform uses Name, , phone, mailing address and social graph in determining the value. An automated monetization is available to the users to contribute new contacts to the pool automatically. Businesses requiring quality leads to network pay the platform in their fiat or cryptocurrencies. In turn, the business gets points to use in seeking out contacts. On the other hand, platform contributors can convert the points to fiat currency in a First-in- First-Out manner. The protocol works by setting priority for those who contribute contact points to the pool and turn the points to fiat currencies. Socialchains supports PayPal accounts of users for all payments. iii. Increase Marketing Effectiveness for SMBs (Small to Medium Businesses): Online marketing for SMBs is an expensive and iffy proposition. Online platforms such as Google AdWords and Facebook charge exorbitant amounts, with results that produce the unknown quality of results presented as click-through, or impressions but not easily relatable to actual financial performance. Meanwhile, the rates for these services continue to increase and wasting of marketing budgets with an increase in fake accounts and fake clicks. The difference between the best- and worst-performing lists was almost $600 per lead. Brian Carroll Executive Director of Revenue Optimization at MECLABs Social Chains users derive economic value from their data. Our platform deploys permission marketing in which verified users mention the products and services they are looking to buy. Social Chains provides pre-qualified leads. The positioning of the business advertisements is based on the user permissions. Further 9

10 businesses can acquire opt-in leads from the database and get access to verified user s phone and id. SMBs can subscribe to a full suite CRM app and communicate and collaborate with the prospects on the platform. Businesses and Users can reach each other via platform messenger app and reduces the cycle time to close deals. Why is Social Chains Using Blockchain? We are using blockchain to put users in charge of their data and do away with centralized intermediaries that profit from user data. Social Chains as a blockchain app empowers users to derive, drive and monetize their data. Social Chains is a first attempt ever made to provide an opportunity to the mainstream to make internet money. Blockchain offered us the tools to build such a user-driven decentralized social media app. We will use a hybrid of public and private blockchain for privacy and flexibility. Interim Blockchain of Social Chains as of now: Public Ethereum Blockchain for Financial Transactions Money exchange Private SOCIAL CHAINS Blockchain of verified users On Multichain Social Chains will be on the Private Ethereum Blockchain or EOS by the end of Q4 2018: Public Ethereum Blockchain for Financial Transactions Money exchange Ethereum Sidechain or EOS - SOCIAL CHAINS of verified users 10

11 Socialchains.io Product Platform The Social Chains platform is operational. The company has self-funded the development of the platform and continued to do so. Additional funding will accelerate the Product development rapidly. Key Features: Socialchains.io already has several powerful features built into the platform that will be available to users from launch. a. Decentralized contact database management: Instead of just depending on the user to keep their information current, Social Chains will be able to utilize decentralized user resources to ensure that the contact database is kept up to date. b. Contact Relationship Application (CRA) built into the system: CRA helps the users to use SOCIAL CHAINS as a platform to communicate with their contacts for both personal and business uses. Users bring their id (Gmail, Microsoft Office 365, Outlook, and third-party ids) to the platform. Users send and receive s, able to set up both private and public events, appointments using their platform contacts. Further users can save the call history as a touch point when SOCIAL CHAINS mobile app is used to making calls to contacts. 11

12 The user can set up a meeting or conference call with their contacts or connections. 12

13 Users have an option to send s from the Social Chains platform to any connection or contact. c. Powerful Social Media features: Socialchains.io provides integration with Twitter feeds, allowing users to import and display their Twitter feeds within their accounts, and even filter them by keywords. Over time, should the need arise, we can incorporate and integrate other, complimentary social media feeds into user accounts. 13

14 d. Full suite Customer Relationship Management (CRM): The Social Chains platform has a robust CRM system built into it. In fact, when users update their contact databases, they are efficiently interacting with the CRM system that provides tools for product info, campaigning, lead generation, opportunity evaluation, quotes, and orders. Business users will have access to the sophisticated tools of the Socialchains.io CRM. 14

15 IV. Product Roadmap The Socialchains.io product platform is ready and onboarding the users. Over the coming months, we will continue to invest in the platform and roll out enhanced capabilities in line with our revenue stream demands. We focus on completing the permission-based Ad Platform and P2P E-Commerce. We strive to become the App store for personal services Apps that serves the verified and the trusted users. We will not be building the Dating and Matrimonial Apps. We partner with the established platforms to serve the verified and trusted users. We share the revenue with the App platforms connected to the SOCIAL CHAINS. 15

16 V. Revenue Streams 1. Advertising: Current online advertising spends projected to cross $260 billion in 2018, with a significant portion of this budget captured by Alphabet s Google and Facebook. With better and more reliable customer data, advertisers will be more inclined to use Social Chains. The launch of smart Ad Platform is in the 2nd quarter of Targeted marketing for SMBs: With an inbuilt CRM system, and a decentralized managed customer base, SMBs will pay-to-play to reach out to their target customers within the user base. 3. P2P E-commerce: 2 Billion adults in the world have no bank accounts. For example, India is a 95% cash society, while 75% of the adults own a mobile phone there has been a massive growth spurt in electronic forms of payment since the Indian government attempted to change the currency notes in circulation, with PAYTM grabbing a sizable portion of market share. SOCT tokens are tradable tokens. We expect that more than 500 million people will have Ethereum wallets at the end of the distribution of 544 million SOCT tokens which brings the cryptocurrency into the mainstream and opens up all sorts of P2P E-commerce opportunities between verified users. These coins are transferred globally on the Ethereum public network with low transaction fees compared to bank transfer fees. E-Commerce transactions between trusted users increase the confidence among the participants. We introduce no code smart contracts to write service contracts between two or more verified users and removes the requirement of third-party guarantees when a transaction involves cross borders. 4. Dating and Matrimonial Services: With a market that has grown to over $2 billion in revenue, online dating remains an area of concern with trust remains an ongoing issue. With verified users, and with the decentralized management of the customer base, not only will users be more careful about how they portray themselves online, but also more inclined to use these services. 16

17 In many 2 nd and 3 rd world countries, Matrimonial services are big business. In India, the world s 2 nd most populous nation, matrimonial is big business. However, the area is wrought with a significant amount of fraud. Social Chains partners with reputable and established country-specific dating and matrimonial platforms to provide services to the verified and trusted users. VI. Go to Market Plan 1. Target Market: While Social Chains will be headquartered in the US, and will undoubtedly target the local market, our priority markets include India, US, UK, Canada, Australia and New Zealand. The reason for this focus is because consumers in these countries have demonstrated a willingness to upload their state IDs when signing up for services. Also, users in these communities tie closely with SMBs in their locality. Demographically, India, United States, Canada, United Kingdom, Australia and New Zealand together have a population of over 1.5 billion, a relatively well-educated consumer base, and high cell phone penetration. 17

18 2. Building the User Base: A network of Moderators help us in creating the user base. Each Moderator will be responsible for signing up at least 500 verified users. Moderators are compensated with tokens. Since we intend to pay users to join Socialchains.io, we anticipate a rapid growth of the user base. To enable growth, we will be compensating users with Tokens and Points. Users will be paid to participate. The first 511 million verified users would get a share of 54.4% of the available 1 billion tokens. The first 1 million users will get 10 (ten) tokens each. The next 10 million users get 5 (five) tokens each, and the next 100 million get 2.5 (two and a half) tokens each. The following 100 million get (point six two five) tokens and up to (point three one two five) for the future 100 million users. A final round of 15,250,000 community tokens goes to the next 100 million users. The tokens given can be changed to fiat currency of your choice or converted to cryptocurrencies such as Bitcoin, Ethereum, and Litecoin among others. A user can monetize connections within the platform by increasing activity and participate in public forums with other verified users. TOKEN DISTRIBUTION TOKENS First 1 million users get 10 tokens 10,000,000 Next 10 million users get five tokens Next 100million users get 2.5 tokens Next 100 million users get 1.25 tokens Next 100 million users get tokens Next 100 million users get tokens 50,000, ,000, ,000,000 62,500,000 31,250,000 Next 100million users get tokens 15,250,000 TOTAL DISTRIBUTED TOKENS 544,000,000 18

19 VII. Organization We recognize that a successful Token offering will require a rapid rampup of personnel not just in the US, but in India, UK, Canada, Australia and New Zealand as well. With our management team headquartered in the US and part of our development team in India, we expect that hiring needs to speed up across both regions. For this reason that we sourced a leading Human Resource executive with a strong record for establishing and leading the HR functions not only in the US, India and other countries as well, as part of our executive team. The US is the base of the Social Chains management team. We expect to hire a management team in India as well which will include a Country Head, an HR Head, Marketing Head, and Finance Head. We have already identified an HR Head, who held a similar role with leading global companies such as 3M and PricewaterhouseCoopers. Social Chains currently has 18 developers and quality assurance personnel in place and located in San Francisco, CA, Houston, TX, and Hyderabad, India. 19

20 VIII. Use of Funds Research & Development 1. Ad Platform Development 2. Additional Revenue Channels Infrastructure User Outreach (Marketing) IX. Meet Our Tokens Social Chains is a Texas Corporation and is releasing ERC20 token called SOCT using Ethereum smart contracts. The crowd sale has Pre-ICO and ICO rounds. Public Ethereum is used to publish the tokens after the close of the first round. We are releasing a total of 1,000 MM tokens. Using comparison, Facebook raised more than $2 Bn before going public to raise another $10 Bn. We are compensating the founders, employees, community through tokens. As a result, 90% of the tokens go to the community of users, developers, professionals, and services. The founders and employees have a cliff and vesting over a period of 4 years. The community has one year cliff and vesting. Token allotted for loan payments has one-year lock-in. That will leave only 10% of the tokens for sale through the ICO. We are offering half (i.e., 5%) of these tokens for sale in this first round starting June 1 st, The remaining 5% of tokens are in reserve for future fundraising rounds. 20

21 Token Distribution User Community 54% X. ICO Offering Overview We have given dollar denomination of the token to encourage the first time crypto investors. Deposits in cryptocurrencies converted by the rate at the time of deposit according to the Coinbase and GDAX exchanges 21

22 Token sale bonuses XI. Contact CONTACT FOR ADDITIONAL INFORMATION OR INVESTMENT HUBERT VAZ-NAYAK Chief Operating Officer 22