Waltonchain White Paper
(V 1.0)
Value Internet of Things (VIoT) constructs a perfect commercial ecosystem via the integration
of the real world and the block chain
Ushering human beings into the reliable digital life
Waltonchain unfolds the new era of Value Internet of Things (VIoT)
By Walton Team
2017.06.06
Table of Contents
Part 1 Introduction – The concept of the Value Internet of Things.......................................... 1
1.1 The Inevitable Trend of Internet Technology Innovation: The Value Internet of Things 1
1.2 The Block Chain Technology Development Trend: Rapid Expansion of Application Areas
... 3
1.3 The Technical Preparation Has Been Completed to Create An Era of the Value Internet
of Things... 6
Part 2 Journey - The Realization of the Value Internet of Things.............................................. 7
2.1 General Description... 7
2.2 The hardware of the Value Internet of Things................................................................ 7
2.2.1 What is RFID? ... 7
2.2.2 RFID tags... 9
2.2.3 Introduction of UHF RFID ICs...................................................................................... 10
2.2.4 Analysis on the Advantages and Disadvantages of International RFID ICs................ 12
2.2.5 The Overall Design of the RFID ICs of the Value Internet of Things........................... 13
2.3 The Software of the Value Internet of Things............................................................... 17
2.3.1 The Interpretation of Walton..................................................................................... 17
2.3.2 The Overall Structure of Waltonchain........................................................................ 18
Waltonchain Bottom Layer.............................................................................................. 19
Waltonchain Core Layer.................................................................................................. 20
Waltonchain Middle Layer .............................................................................................. 20
Waltonchain Application Layer ....................................................................................... 20
2.3.3 Walton Protocol and Walton Coin.............................................................................. 20
Walton Parent Chain ... 20
Walton Sub Chain ... 23
Block Structure ... 24
Consensus Mechanism... 25
Byte Fee Allocation... 26
Waltoncoin ... 28
Waltoncoin's Main Functions.......................................................................................... 28
2.3.5 Walton ecosystem... 30
Production... 32
Warehousing ... 32
Logistics ... 32
Stores... 33
Main Characteristics of the System................................................................................. 33
Main Advantages of the System...................................................................................... 34
Multi - User Consensus Security Mechanism.................................................................. 34
2.4 Application Scenarios: WALTON Project’s System Solutions for the Apparel Industry 34
2.4.1 Analysis on the Dilemma of the Traditional Apparel Manufacturing..................... 35
2.4.2 Smart Manufacturing Solution for the Apparel Industry ....................................... 36
2.4.3 Smart Logistics & Warehousing Solution for the Apparel Industry........................ 39
2.4.4 Smart Store Solution for the Apparel Industry....................................................... 41
Part 3 Future – The Value Internet of Things Will Change the World..................................... 45
3.1 The Stage Planning of the Walton Project .................................................................... 45
3.2 The Investment Value of the Walton Project................................................................ 49
Part 4 Project Foundation ... 51
Part 5 Team Introduction ... 54
5.1 Sponsors... 54
5.2 Senior Consultants... 54
5.3 Chief Experts... 55
5.4 Team Members ... 56
5.4.1 Permanent Chinese Members................................................................................ 56
5.4.2 Permanent Korean Members................................................................................. 59
5.5 Angel Investors... 60
5.6 Consultant Team ... 62
Part 6 References ... 64

1
Part 1 Introduction – The concept of the
Value Internet of Things
1.1 The Inevitable Trend of Internet Technology Innovation:
The Value Internet of Things
We are in an era where new technologies lead to social changes. In the age of
information and the Internet, human collaboration and communication break
through time and space constraints, and the world becomes an overall interactive
platform.
In recent years, the Internet has entered into a new business format of
“Internet +”. In this stage, a new form of economic and social development of
“Internet + all traditional industries” driven by knowledge and social innovation
2.0 provides a broad network platform for the reform, innovation and
development of various industries.
At present, the information age is entering an unprecedented important stage
of development where the objects can be connected to each other through the
Internet; this stage is called the third wave of the development of the world
information industry following the computer and the Internet: the age of the
Internet of Things (IoT). Internet of Things technology contains two meanings: first,
the core and foundation of the Internet of Things is still the Internet, the Internet
of Things is an extension of the Internet; second, the client side of the Internet of
Things extends to the information exchange and communication between any
objects, which is so called object-to-object interrelation.
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However, from the Internet, to the "Internet +", and then to the Internet of
things, all stages have failed to solve the problem of localization of information
dissemination (e.g. centralization). It is difficult for the Internet of things under the
current central structure to accomplish the real autonomous cooperation and
effective transactions, because the relevant parties of such cooperation and
transactions often belong to different stakeholders with complex and uncertain
trust relationship. Therefore, the collaboration and transactions of the current
Internet of Things devices can only be carried out under the same trust domain,
that is to say, the devices to collaborate and trade must be provided or verified by
the same Internet of Things service provider, which significantly reduces the true
commercial value of the Internet of Things applications.
In this context, we put forward the concept of the “Value Internet of
Things(VIoT)”, focusing on introducing the block chain technology into the Internet
of things, to solve the problem of centralization facing the development process of
the Internet of Things. The block chain is a decentralized transaction record &
storage technology based on cryptographic principles; with a distributed point-topoint
network, it can achieve the permanent storage of orderly transaction record
which is undeletable, tamper-resistant, open and traceable, so it is recognized as
the best choice to meet the above challenges. In the ecology of the block chain,
people can trade safely without trust established in advance, because every
transaction is well recorded in the “public ledger” of the block chain, which is a
perfect solution to the trust and equity issues of the Internet virtual world. The
inevitable trends of the Value Internet of Things are shown in Figure 1.1.
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Figure 1.1 the inevitable trends of the Value Internet of Things
Figure Text: the first stage: people communicate through language the second stage: people
communicate through traditional medias (such as letters)→the third stage: the Internet the
fourth stage: the Internet + (all traditional industries integrated into the Internet)→the fifth
stage: the Internet of things (objects connected through the Internet) →block chain:
decentralization & Value Internet of Things
1.2 The Block Chain Technology Development Trend: Rapid
Expansion of Application Areas
Bitcoin appeared in 2009 and began to circulate. The total market
capitalization of Bitcoin has exceeded $ 30 billion, making Bitcoin a successful
application of the block chain technology in the field of digital money. Ethereum
introduced smart contracts to program the complex contract rules into the block
chain by way of code. Smart contracts can be automatically executed when the
agreed conditions are reached, as a result, the field of application of the block
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chain has been broadened; the representative namecoin and datacoin extended
the object of the block chain from the electronic money trading record in the era of
Bitcoin to the domain name, user data and other fields.
As an organic component of the block chain distributed implementation, the
consensus mechanism has also undergone full development, as a result, several
major consensus mechanisms have appeared:
POW: Proof of Work, e.g. Work to Prove Consensus Mechanism, also known
as the mining mechanism. Bitcoin is first one to use the POW mechanism to
dominate the Block generation. The node continues to try to calculate the Block
Hash value corresponding to each block ledger’s content to satisfy a specific
condition, that is, N zeros are used as the preamble. This will increase the difficulty
of Block generation, significantly reducing the risk of correct sub chains being
replaced by quickly generated longer malicious sub chains, but will also lead to the
waste of a large number of computing resources of the mining machines at the
same time.
POS: Proof of Stake，e.g. Stake to Prove Consensus Mechanism. It is an
upgrade of the POW consensus mechanism to control the length of mining time
based on the number of the tokens and the holding time of the node; it can
effectively reduce the mining time, but still cannot avoid the problem of wasting
the computing resources of the mining machines.
DPOS: Delegated Proof of Stake, e.g. Delegated Stake to Prove Consensus
Mechanism. Its principle is that tokens select a certain number of nodes by voting
to complete the verification and accounting work for them. This consensus
mechanism can greatly reduce the number of nodes involved in accounting and
verification to achieve rapid consensus verification, but it also relies on the
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existence of the tokens, so that some applications that do not require tokens will
be limited.
PBFT: Practical Byzantine Fault Tolerance. It is a consistency algorithm by
message transmission that achieves consistency through three phases to
determine the final block generation. If there are 3f + 1 nodes, this algorithm can
tolerate the existence of f error nodes, so that the consistency results will not be
affected. This mechanism can be divorced from the existence of coins, the
consensus node can be determined by participants and regulators, and 2-5 seconds
of shared delay is basically able to meet the commercial requirements.
Various consensus mechanisms have their own considerations and
significance in terms of their respective business scenarios and technical means.
When compared to each other, they have different improvements and
enhancements in different aspects, as well as different disadvantages, so there
seems to be no optimal consensus mechanism. Achieving the pluggable
applications of various consensus mechanisms, choosing the right consensus
mechanism according to the specific application scenario and optimizing the
application of block chain shall be the best way for further application in more
fields.
Various trends indicate that block-chain technology is expanding its
application to more and more areas such as digital money and smart contracts,
while the earlier relevant technologies failed to break the connection barrier
between the virtual network and the real world. Applying the block chain to the
Internet of Things and smart systems and connecting the item tags and identity
tags in the real world to the virtual network via RFID technology will successfully
build this connection, and ultimately achieve the interconnection of all things and
create an era of Value Internet of Things (VIoT).
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1.3 The Technical Preparation Has Been Completed to Create
An Era of Value Internet of Things (VIoT)
Traditional Internet of Things (IoT) is a network which enables all the common
objects that can perform independent functions to be interconnected. It connects
the sensors, controllers and objective entities through network technology to realize
intelligent management and control. For example, through radio frequency
identification (RFID), infrared sensors, global positioning systems, laser scanners and
other information sensing equipment, it connects any item to the Internet to carry
out information exchange and communication according to the agreement, to
achieve intelligent identification, positioning , tracking, monitoring and
management. As an extension of the Internet, the Internet of Things further
promotes the connections between machine and machine, human and machine and
achieves the full life cycle circulation management of data in the information world.
With the continuous advances of technology, the development and application
of the Internet of Things technology have achieved remarkable results in recent
years. There are already billions of sensors and smart controllers put into use so far,
and the number of the sensors and smart controllers is expected to grow in the next
few years. However, the Internet of Things technology is also facing many problems
and challenges which may become great obstacles in the future development and
application of the Internet of Things. The era of the Value Internet of Things led by
RFID and block chain technologies can provide solutions to these problems.
The technical realization of the Value Internet of Things means connecting the
items tags, event tags, people and body tags and other entity tags in the real world
with the virtual world of the Internet through the underlying hardware platform
using the RFID tags as the core, combined with the block chain technology delivering
value and constructing trust, to achieve the real interconnection of all things.
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The speed of transition from the Information Internet and traditional Internet
of Things to the Value Internet of Things based on RFID technology and block chain
technology may be far beyond the current expectations. When the Value Internet of
Things achieves the real interconnection of all things, the RFID technology and block
chain technology will play a greater role.
Part 2 Journey - The Realization of Value
Internet of Things
2.1 General Description
The whole system of the Value Internet of Things can be divided into two parts:
hardware and software. The hardware includes the RFID tag chips and the RFID
reader chips. The RFID tag acts as the interface for all assets to be connected to the
chain, and the reader chip is a bridge for all assets to be connected to the chain and
can be used as a node on the chain. The software includesthe Waltonchain software
system, the Walton protocol and the Walton coin. With the combination of software
and hardware, the Value Internet of Things can really achieve the connection of all
things to the chain and the digitalization of all assets.
2.2 The hardware of the Value Internet of Things
2.2.1 What is RFID?
The Radio Frequency Identification (RFID) technology is a communication
technology that can identify specific targets and read and write relevant data
through the radio signals without building a mechanical or optical contact between
the recognition system and specific targets. RFID readers are divided into mobile
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readers and fixed readers. At present, RFID technology is widely used, for example,
used for library access control system, food safety traceability, etc.
The radio frequency tags are the physical carrier of the electronic product code
(EPC) which are attached to traceable items, identifiable, readable and writeable,
and can be circulated all over the world. As a key technology for constructing the
"Internet of Things", the RFID technology has received attention in recent years. The
RFID technology originated from the United Kingdom, was used in the Second World
War to identify friend or foe aircraft, and began its business application in the 1960s.
The RFID technology is an automatic identification technology; the US Department
of Defense states that all military supplies must use RFID tags since January 1, 2005,
and the US Food and Drug Administration (FDA) recommends that the
pharmaceutical companies use RFID to trace drugs easy to be faked since 2006.
Walmart and Metro retailers using RFID technology have further promoted the
application of RFID in the world. In 2000, the price of each RFID tag was $ 1. Many
researchers believed that RFID tags were very expensive, large-scale application
could be realized only when the price went down. In 2005, the price of each RFID tag
was about 12 cents, and now the price of each UHF RFID tag is about 10 cents. To
achieve large-scale application of RFID, on the one hand, it is necessary to reduce
the price of RFID tags, on the other hand, it depends on whether the application of
RFID can bring value-added services. Eurostat statistics show that in 2010, 3% of the
EU companies have used RFID technology for identity documents and access control,
supply chain and inventory tracking, car charges, security, production control and
asset management, etc. Since 2010, due to the improvement of economic situation,
the development of the Internet of Things industry and other positive factors, global
RFID market continues to heat up, RFID technology has been applied to a growing
number of fields, and people have had higher expectations for the development of
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RFID industry. The RFID technology is in a period of rapid maturity, many countries
are actively promoting RFID as an important industry.
Although the prices of passive UHF electronic tags fell rapidly in the past two
years, the prices of UHF RFID systems are still high relative to the overall costs of the
RFID chips including the readers, electronic tags, middleware and system
maintenance, etc. And the cost of UHF RFID system is an important indicator for
clients to weigh the return of investment. The bottleneck caused by high cost has
become an important factor restricting the development of UHF system market.
In short, the passive UHF market is still in its early stage of development.Thus,
the core technology needs breakthroughs, business models need to be innovated
and improved, and the industry value chain needs to be further developed and
extended. Only when the core issues are effectively resolved, can we embrace the
real development of RFID passive UHF market.
2.2.2 RFID tags
The RFID tag contains the stored electronic information. The tag does not need
to be within the sight of the recognizer; and it can be embedded in the tracked object.
RFID tags include passive tags and active tags.
Passive tags: can get energy from the electromagnetic field emitted by the
reader, no battery required.
Active tags: the tag itself has power supply and can automatically send radio
waves.
Figure 2.1 shows the actual application scenario of RFID.
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Figure 2.1 the actual application scenario of RFID
Figure Text: Reader/Antenna/Tag/Computer System
2.2.3 Introduction of UHF RFID ICs
After years of development, the RFID technology of 13.56MHz or less has been
relatively mature. At present, the industry pays most attention to the UHF RFID,
which works between 860MHz ~ 960MHz frequency, with the advantages of fast
reading and writing, multi-target recognition, non-line-of-sight recognition, mobile
positioning and long-term tracking management, long effective range (usually 3m ~
10m) and fast communication speed. UHF RFID technology has become a hot spot in
the development of the industry, and passive UHF RFID tags and systems grow
rapidly.
The built-in RFID IC of UHF recognizer (reader and writer) is a core component
that provides readability to the recognizer. On the receiving end the Received
wireless useful signal is amplified by LNA, mixed by I/Q mixer, filterer, converted by
ADC, and finally inputted to the MCU; on the transmitting end the signal outputted
from the MCU is mixed by I/Q mixer, amplified by PA and transmitted to the antenna,
finally transmitted to the tag. Figure 2.2 shows the structure of the RFID IC of UHF
recognizer (reader and writer).
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Figure 2.2 UHF recognizer (reader and writer) RFID IC structure diagram
UHF Tag IC: is a core component that provides memory and performance for
tags. It manages the received wireless signal as energy, transmits the stored memory
data to the antenna after the carrier modulation. Figure 2.3 shows the structure of
the UHF RFID tag IC.
Figure 2.3 UHF RFID tag IC structure diagram
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2.2.4 Analysis on the Advantages and Disadvantages of
International RFID ICs
Reader ICs: due to the huge market attractiveness, many manufacturers have
been involved in the relevant technology research, development and production,
bringing on an upsurge of radio frequency identification technology. On the basis of
increasing investment in research, the RFID technology has made great progress in
core hardware technology, public service platform and testing and standard.
International companies have achieved a large number of technical improvements
of RF front-end, analog front end, digital baseband and storage unit of the multiband
radio frequency identification; the mainstream manufacturing process has
reached 0.13 microns or less and achieved the mass production of low-power
technological chips, such as Impinj's R2000: its reception sensitivity has reached -
80dBM (10dBM self-interference) with a transmission power of 31.5dBM. Although
the performance is excellent, the price is very high.
Tag ICs: as for the tag chip technology, the developed countries already have a
relatively complete product line; with the continuous development and
improvement of technology and market, the electronic tag technology continues to
improve, and the industrialization of technology has entered a stage of vigorous
development. The class 0 design of Alien has laid the foundation for the
implementation of the first generation RFID standards. Compared to the first
generation standards, the second generation EPF tag IC has many advantages: its
center frequency reaches 900MHz band, greatly improving the recognition rate to
500 to 1500 tags sec; its backscatter data rate can be increased from tens of bits
per second to 650kbps; its scan range has increased to 30 feet. Now in the market
and the laboratory, the second generation UHF RFID tag ICs with more excellent
features have appeared, for example, Impinj’s Monza 4 RFID tag IC has reached a
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more advanced level. Its outstanding performance mainly reflects in extensible
memory options, innovative secrecy function, good anti-jamming capability and
industry-leading sensitivity indicators.
But the existing RFID chip industry cannot meet the development of Internet of
Things applications, especially applications for the Value Internet of Things: there
are few options available while the prices are high; the transmission power and
stability need to be improved; the reception sensitivity is low, the anti-interference
ability is poor and the transmission power is low. In addition, the existing RFID ICs
have many problems such as high power consumption, poor matching with antenna
and difficult system integration, etc.
2.2.5 The Overall Design of the RFID ICs of the Value Internet
of Things
The project includes RFID tag IC and reader IC suitable for block chain
technology applications. The ICs are characterized by integrated elliptic curve and
decryption acceleration module based on the existing RFID technology, and a
communication interface protocol suitable for block-chain technology applications.
The implementation of the project will promote the application of block chain
technology in the Internet of Things, to solve the following problems in the current
application of block chain technology:
1） Each tag does not need to store node data, only need to be responsible for
signature verification;
2） Tags automatically generate random public keys and private keys, to ensure
the security of Internet of Things applications, to ensure that the tag is unique,
non-forgery and tamper-proof;
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3） Can reduce the amount of information stored, to solve the problem of large
amount of data of block chain overloaded in the Internet of Things
applications;
4） To solve the problem of slow encryption and decryption in asymmetric
encryption technology;
5） To truly achieve the decentralization of property management and asset
management, etc., so that the data will be tamper-proof.
RFID reader IC is one of the core components of the reader, containing the RF
section and digital signal processing section. On the receiving end the signal is
amplified by LNA, mixed by I/Q mixer, filterer, converted by ADC, and finally
inputted to the digital processing section; on the transmitting end the digital signal
outputted from the digital processing section is converted by ADC, mixed by I/Q
mixer, amplified by PA and transmitted to the antenna, finally transmitted to the
tag.
The RFID tag IC contains the RF section, power management section, digital
signal processing section and storage section. The power management section
contains electromagnetic coupling, energy storage, LDO and other circuits, which
converts the received wireless signal into electrical energy to power the tag; in the
transmitting section, the stored memory data is transmitted to the antenna after
the carrier modulation.
The RFID reader ID market demand continues to increase, the existing
technology still has some problems to be improved, such as the number of tags
identified in parallel, misreading, high power consumption, etc. The project provides
a new design solution for the application problems, and a chip architecture solution
with core competencies, combined with the application of block-chain technology.
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Figure 2.6 and Figure 2.7 show the block diagram of the reader IC and the block
diagram of the tag IC respectively. The RFID tag IC design integrates innovative
encryption capabilities, so it’s suitable for block chain technology applications and
has a good anti-interference ability and sensitivity index; its demanding power
design can meet the current stringent requirements for power consumption, and the
on-chip antenna technology and antenna matching technology have been
significantly enhanced to improve the performance.
Figure 2.6 The project’s reader IC solution block diagram
Oscillator
Baseband
Modulator/
Demodulator
Power Manage
Controller
Encrypt and Decrypt
RF Front-End/
Analog Front End
Nonvolatile Memory
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Figure 2.7 The project’s tag IC solution block diagram
The project’s IC design has the following significant advantages:
1 ） High security: The chip integrates asymmetric random password pair
generation logic, uses a core asymmetric encryption algorithm with independent
intellectual property rights and an optimized design without increasing the cost and
power consumption of the chip, enabling higher communication security;
2） Optimized anti - collision design: The chip uses a binary tree anti - collision
algorithm with independent intellectual property rights and a time division multiple
access design, significantly improving the tag recognition success rate and the
number of identifiable labels at the same time;
Filter
Baseband/Bus
Modulator/
Demodulator
Power Manage
CPU
Encrypt and Decrypt
RF Front-End/
Analog Front End
Memory
LNA/P A
GPIO/Uart/SPI/IIC
Encrypt and Decrypt
USB/Ethernet
PLL
POR
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3）High sensitivity: The chip uses an optimized noise suppression technology to
improve the noise figure at the receiving end and the overall receiver sensitivity,
which plays an important role in increasing the recognition success rate; these
advantages enable the chip to have a greater advantage in the application in
Internet of Things.
4) Good compatibility: The chip can achieve high-frequency and ultra-high
frequency functions at the same time, the end customer can read the information
through the smart phone and inquire about reliable product information.
2.3 The Software of the Value Internet of Things
2.3.1 The Interpretation of Walton
Walton is derived from Charlie Walton, who was born in California, died on
November 30, 2011. As the inventor of RFID technology, he devoted his life to the
development of RFID technology. He obtained the first patent related to RFID
technology in 1973 and eventually obtained more than 50 invention patents. He
created a new era of RFID and made outstanding contributions to the development
of RFID. At present, RFID technology is widely used in various applications all over
the world, from identification to freeway billing, mobile payment, credit card
payment, we can see RFID everywhere. The project was founded on November 30,
2016, the fifth anniversary of the death of Charlie Walton. To commemorate the
great inventor of RFID technology, the project was named "Waltonchain" to carry
forward his invention and blaze a trail to the future.
The interpretation of Walton is as follows:
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Walton = Wisdom Alters Label, Trade, Organization and Network.
 W—Wisdom
A--Alter
L—Label: RFID Label
T--Trade: trade mode based on the accounting mode of block chain
O--Organization: 0rganizational management model - decentralized
autonomous organization (DAO)
N--Network: the Internet of Things - P2P network mode
2.3.2 The Overall Structure of Waltonchain
The Walton ecosystem uses an overall structure including the parent chain and
the sub chains (or child chains) where the parent chain is waltonchain and the token
used for circulation and payment is called Waltoncoin. During the 1.0 stage of the
project, the parent chain – waltonchain is used to open up the complete supply chain
system of the apparel industry including production, logistics, warehousing and
stores. Theoretically, there can be infinite number of sub chains, for example, the
recognizers of the production workshop used to monitor the quality of the product
can be used as nodes of production sub chains, and the production workshops of a
variety of brands together constitute the production sub chain; for another example,
the stores of a variety of apparel brands can constitute the sales sub chain.
The Waltonchain platform uses a hierarchical structure, including the bottom
layer, core layer, middle layer and application layer; the platform architecture is
shown in Figure 2.8.
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Figure 2.8 Waltonchain platform structure
Figure Text: From top down:
WALTON chain application layer/ smart clothing store management,smart logistics
management platform, etc. →WALTON chain middle layer/the middle layer encapsulates the
core layer modules into various application interfaces →WALTON chain core layer/core
business application logic based on Walton Chain →WALTON chain bottom layer/ the
underlying smart contracts based on the blockchain
Waltonchain Bottom Layer
The bottom layer is developed based on the Waltonchain. The Waltonchain has
many advantages, please see the introduction of Waltonchain for details.
WALTON链底层
底层基于区块链的智能合约
WALTON链核心层
基于WALTON链的商业应用核心逻辑
WALTON链中间层
中间层将核心层模块封装成各种应用接口
WALTON链应用层
智能服装门店管理、智能物流管理平台等
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Waltonchain Core Layer
The Waltonchain is developed based on the universal blockchain technology.
For the common and individual requirements of different applications, the core
layer will package the common and personalized features to form the core modules
of different applications.
Waltonchain Middle Layer
For different applications, Waltonchain has dedicated and common interfaces
to call for the application layer. The middle layer is used to achieve the package of
these interfaces, thus simplifying the work of the application layer and reducing the
application difficulty.
Waltonchain Application Layer
The top-layer content, users or the Walton team can develop appropriate
platform or environment based on different application scenarios to meet the
individual, team or business needs of the application.
2.3.3 Walton Protocol and Walton Coin
Walton Parent Chain
The Walton Parent Chain is the main chain of the Walton block chain, starting
from the Walton Genesis Block, which provides a wealth of functions including but
not limited to Walton Coin (WTC) transaction management, sub chain management,
smart contract, alias and account control, etc.
1) transaction management
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A total of 100 million of WTCs are issued, created in the genesis block and
assigned to each account in accordance with established program; the total amount
of WTCs in the subsequent transactions remains the same. Through the
decentralized network, more accounts will be created through the nodes, and a lot
of WTC transactions will also be carried out between the accounts. Every 60 seconds,
the transaction during the current period will be recorded to the block, linked to the
previous block, forming the Walton parent chain as the public ledger of WTC
transactions stored dispersedly in nodes in the network to ensure the safety and
reliability of transaction data.
2) sub chain management
Another major function of Walton parent chain is the management of sub-chain
which can be created by any account at any time after the parent chain runs. The
creator can customize the detail functions of the sub-chain and specific information
of the sub-chain tokens. These custom information form the data structure
describing the sub-chain, which is recorded in the block of the current period by the
accounting nodes in a way similar to the WTC transaction record. So far this sub
chain will be used as a separate block chain, recording the transactions of the subchain
tokens.
Since the WTC transactions are only recorded in the parent chain, the parent
chain runs independently of the sub chain. The nodes running on the parent chain
only need to save the parent chain data to conduct consensus and validation of WTC
transaction blocks. This flexible creation mechanism of WTC sub chain makes the
sub chain scalable, the state of the sub-chain has no effect on the completeness and
safety of the parent chain; except for the description information recording the sub
chain, the number of sub-chains will not increase the size of the parent chain.
3) smart contract
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In the system architecture of the Walton block chain, the smart contract
based on its programmable features is responsible for building the underlying logic
platform and supporting the upper architecture running of core layer, middle layer,
and application layer, which is the cornerstone of the Walton chain to develop a
wider range of custom applications.
Smart contract technology is developed by Ethereum and has been applied in
the electronic token release, electronic crowd-funding, electronic contracts,
electronic equity distribution and other fields. The Walton block chain technology
defines two types of account concepts: one is the general account storing the
tokens; the other is the smart contract account storing smart contract procedures.
When a transaction is sent to the smart contract account address, the
corresponding smart contract procedure will be triggered and implemented. The
procedure will use the data of the transaction received, the data stored in this
account and the current block status data as input data, perform the customized
operations, make a transaction request, modify the account status data and
execute other result behaviors.
4) other functions
Decentralized asset transactions: supporting the decentralized asset
transactions of the parent chain WTCs and sub chain coins;
Decentralized grading system: grading according to the performance of the
account nodes’ trading behaviors such as mortgage;
Decentralized alias system: facilitating the realization of the transactions by
alias;
Account control;
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Voting system;
Cross currency transactions;
Walton Sub Chain
1) Sub-chain functional features
When creating the sub chain, the sub chain can be customized to support all
the functional features of the parent chain, or can be limited to certain functional
features to achieve the customization of the appropriate features. Support custom
features mainly include sub chain token transactions, sub-chain token and parent
chain token transactions, cross sub chain token transactions, smart contracts,
aliases, voting system, account control, instant messaging, and data storage.
2) Sub-chain token transactions
By customization, the sub chain can support sub-chain native token
transactions, sub-chain token and parent chain token transactions and cross sub
chain token transactions. When a cross token transaction is made, the holder of
the token makes a transaction request, the transaction request information
contains the transaction type (buy or sell), the local token type, the target token
type, transaction price and the number of transaction tokens; then the Walton
protocol will match the buy and sell transactions in a decentralized way, which is
open, fair, reliable, and traceable compared to the traditional trading centers.
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Block Structure
The trading ledgers of WTCs are stored in the Walton blocks that are series
connected, forming the Walton parent chain and sub-chains; and those of the block
chain are stored in a large number of nodes on the Walton network, making the WTC
transaction records open, safe, decentralized, traceable and tamper-resistant. The
core component of this ambitious, secure, and decentralized data structure is the
Walton block data structure designed by the Walton team which provides safe,
stable and fast response features for the parent chain and provides a flexible
combination of features for the sub chains, to adapt to a variety of Internet of things
applications and to match the customized business models.
The Walton Block can contain up to 255 transaction records. Each transaction
record contains a header carrying the identification information. The general
information contained in the block is as follows:
Block depth and timestamp
Block identity
Block account ID and public key
The identity of the previous block and the hash value
The total number of tokens of the transactions contained in the block and
byte fee
The transaction information contained in the block
Block payload length and payload hash value
The generated signature of the block
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Accumulated coinage difficulty of the block
Consensus Mechanism
1) PoST Consensus mechanism
The Walton parent chain conducts block consensus and validation based on
the Proof of Stake & Trust (PoST) consensus mechanism. PoST is an innovative
updated version based on the Proof of Stake (PoS) consensus mechanism.
The traditional PoS is a distributed consensus algorithm, which is an upgraded
version of the Bitcoin Proof of Work Proof (PoW) consensus algorithm. In the PoW
consensus algorithm, the nodes involved in the consensus need to continue to try
to solve the problem of cryptography, to confirm the transaction, then write into
the block and get the tokens as a reward. In most cases, this reward comes from
the unallocated tokens, so the process is vividly called mining. Because the mining
is more and more difficult as the “mineral resources” reduce, a lot of computing
resources tend to be wasted. In the block chain network based on the PoS
consensus algorithm, in most cases, all the tokens are issued from very beginning,
then the block is successfully created and written into the accounting nodes of the
block chain; the accounting reward is the byte fee paid by the transaction initiation
node, so the consensus mechanism is vividly called coinage. The more the tokens
held by nodes involved in the consensus and the longer the time to hold the
tokens, the bigger the opportunity to successfully complete the block creation and
writing. This mechanism greatly reduces the operation difficulty of accounting,
saves valuable computing resources, at the same time provides a mechanism of
selecting “good” accounting nodes to strengthen the security of the block chain.
Walton constructed an innovative node reputation evaluation system which
added a node reputation mechanism to adjust the difficulty of coinage based on PoS,
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to highlight the importance of reputation in business ecology, and creatively
designed the PoST consensus mechanism. This consensus mechanism brings two
positive effects: first, based on the commercial credit link of a combination of
Walton block chain and RFID, it can further promote and train the integrity
behaviors of the involved nodes through the information evaluation mechanism, for
example, keeping good credit record in credit mortgage and other transactions, to
cultivate a healthy business ecology; second, it provides an upgraded selection
mechanism to choose more honest “high quality” nodes as coinage nodes,
improving the security of the block chain.
2) Other consensus mechanisms
The flexible structure of Walton block chain determines that the sub chains
can choose PoS, PoST or other consensus mechanisms to achieve the optimal
application effect in different application scenarios.
By issuing different sub chains, Walton connects different types of Internet of
Things nodes to apply to various scenarios in the business ecology. Due to the
diversity of the Internet of Things, sometimes the Internet of Things needs a large
number of nodes online at the same time, which is quite different from the
Internet, so we propose an innovative solution which sets the consensus
mechanism flexibly based on the different application scenarios, to meet different
application requirements.
Byte Fee Allocation
The byte fee is the cost paid by the transaction initiation node to the
accounting node, which is used to pay for the occupancy of network bandwidth
and block chain bytes in the process of paying the transaction. The accounting
node can set the minimum cost that can be accepted and the transaction initiation
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node can set the maximum cost to be paid; when both conditions are met, the
transaction will be successfully written to the block chain.
The byte fee is the source power driving the block chain to account, as the
accounting node performs block calculation and consensus verification to obtain
the byte fee; the node needs to pay the transaction surcharge to initiate the token
transaction and the sub chain creation.
1) The allocation of byte fee of token trading
The Walton chain supports the parent chain token transactions, sub chain
token transactions and cross chain token transactions; when dealing with various
types of token transactions, the transaction initiation nodes need to pay the byte
fee with the parent chain tokens. This can make the parent chain token become
the single token used as the reward token of the parent chain accounting node and
the sub chain accounting node, finally achieving the following two positive effects.
First, the parent chain and each sub-chain can share the accounting nodes in
the network to the maximum, so that the accounting nodes will freely choose
different parent chain and sub-chain based on the profit efficiency, without fear of
inconvenient exchange of multiple tokens byte fees, which is beneficial to the
reasonable allocation of the node resources; and for some of the sub chains in the
early stages of the establishment, there is no need to worry about the problem of
insufficient accounting nodes, because they can share the accounting nodes of the
parent chain and other sub chains.
Second, when more sub chains are created and the sub chain transactions
become more and more frequent, the demand for the parent chain tokens which
are used as the currency to pay for byte fees will rise; since the number of the
parent chain tokens remains the same, the value of each parent chain token will
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increase. As a result, the nodes holding the parent chain tokens will gain dividends
from sub-chain development as the number of the sub chains and transactions
increases.
2) The allocation of byte fee of sub chain creation
The Walton parent chain supports the creation of sub chains. When creating a
sub chain, the account that creates the nodes needs to pay the byte fee with
parent chain tokens, to prevent the malicious creation of a large number of sub
chains. Writing the block containing the description of this sub chain into the
accounting node of the block chain will obtain the parent chain tokens as a reward.
Waltoncoin
As mentioned above, in the Walton ecosystem, the most core parent chain is
called waltonchain in which the token used for circulation and payment is called
waltoncoin (hereinafter referred to as WTC). WTC is the most important digital
token in the Walton ecosystem, the total number of WTCs is 100 million,
abbreviated as 10-8
, created and set in the Genesis Block. This number is constant,
no more tokens will be issued.
Waltoncoin's Main Functions
1) Issuing sub chains
Issuing sub chains such as the production sub chain, storage sub chain,
logistics sub chain and sales sub chain needs to consume WTCs. Of course, issuing
sub chains is not the privilege of the Walton team, as any Walton ecosystem user
can consume WTCs to issue its own sub chains in the Walton ecosystem.
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The consumed WTCs are used to allocate the accounting node wallet to
support the parent chain –PoST mechanism.
2) Dividend interest
Walton team officially issues important sub chains, such as the sales sub chain
used in stores (assuming the token is A coin), and the transaction sub chain used in
the retail industry (assuming the token is B coin). In the above high-frequency
circulation sections, even if the transaction fee for each transaction is very small,
many small fees can add up to a substantial number. Therefore, in order to ensure
the robustness of the sub-chains and the parent chain at the same time, the
allocation mechanism regarding the consumed fees needs some innovative
adjustments. The majority (e.g. 90%) is assigned to the accounting node wallet of
the sub chains, and the minority (e.g. 10%) is assigned to the accounting node
wallet of the parent chain.
3) Credit and mortgage system
The account on the parent chain can form a credit mechanism. As the
circulation and consumption amount of sub chains increases, the credit value of
the corresponding account of the parent chain increases. Here is an application
scenario: a customer needs to pay for his consumption at A store, A store supports
A coin, but the customer does not have any A coin, then the customer can pay by
mortgaging parent chain WTCs (in a frozen state), A store and the customer sign an
smart contract on the chain automatically to set an agreed time to return A coins,
when such WTC coins will be unfrozen. Correspondingly, the creditability of this
account increases, and the number of WTCs needed for mortgage decreases.
However, if the A coins failed to be paid back, the number of WTCs frozen for
mortgage will increase correspondingly.
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4) Distributed asset exchange
If we exchange assets on the parent chain, the parent chain will be able to
exchange the assets of any sub chain tokens on any sub chain. This allows the sub
chains to interact with each other and opens up many collaboration opportunities
to allow cross-chain asset transactions, which is also a required function in the
Walton ecosystem in the long term.
5) Distributed voting and governance system
This system will be the core of decentralization in the future. Safe and
anonymous voting will be available for all sub chains on the parent chain.
6) Decentralized exchange
All the coins on the sub chains can be traded in the decentralized exchange on
the parent chain, where the digital currency used to act as an intermediary is WTC.
Of course, only some of the core functions of WTC are mentioned above. WTC
has more functions and as the project progresses, the Walton team will give WTC
more advanced features.
2.3.5 Walton ecosystem
An example of Walton ecosystem application for the apparel industry is shown
in Figure 2.9 below.
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Figure 2.9 Walton ecosystem 1.0 stage
Figure Text: Production (master node 1) - tag generation (child node 1) → process 1 (child node
2) → process 2 (child node 3) →product inspection (child node 4)
Warehousing (master node 2) – stock in inspection (child node 1) → storage location (child
node 2) → stock out inspection (child node 3)
Logistics (master node 3) – order confirmation (child node 1) → transportation (child node 2) →
delivery confirmation (child node 3)
Store (master node 4) – receipt confirmation (child node 1) → stock in (child node 2) → racking
(child node 3) → sales (child node 4)
The whole ecosystem is composed of several master nodes and child nodes, so
the ecosystem is not limited to the applications in the apparel industry, but also
生产
仓储 物流
门店
入库
存储
位置
入库
检查
出库
确认
收货
确认
上架
销售
接件
确认
运输
送货
确认
标签
生成
工序1 工序2
成品
检验
子节点1
子节点2
子节点3
主节点1
主节点2 主节点3
主节点4
子节点1
子节点2
子节点3
子节点4
子节点1
子节点2
子节点3
子节点1
子节点2
子节点3
子节点4
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applicable to the fields of warehousing, logistics, electronic license plate and asset
management. Here we only take a simple example to explain the application in the
apparel industry.
Production
In the early stage of production, the production target is made according to the
production plan and related needs. In the first phase of production, a unique RFID
will be generated for each product. The status and related information of this ID will
be recorded at each child node in the production, also at each subsequent master
node and corresponding child node. The contents of the status and information are
negotiated by the master nodes. Each node is rewarded according to the
contribution in the form of WALTON coin. The number of awards can be determined
based on the workload or the work quality of the corresponding node or the specific
situation of the application.
Warehousing
This node mainly refers to the storage after production, containing three
sections: warehouse-in inspection, storage location and warehouse-out inspection.
Each section has a corresponding reader to record the corresponding information
and form a corresponding block in this master node of warehousing to connect with
the block generated in the production.
Logistics
This node is similar to the previous node, which mainly records the status and
information in the process of transportation and forms the corresponding block data.
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Stores
This node can be a store, or a number of stores. Each store is regarded as a
master node to record the status and information of the product as well as customer
information and preferences. This node can give a customer the corresponding
reward according to the customer’s consumption situation in the form of WALTON
coin, and include the customer into the master node according to the WALTON coins
held by the customer and give the customer the appropriate permissions. The
customer can check all product information and all billing data, but needs to pay a
certain WALTON coins. The customer can also use WALTON coins to purchase the
corresponding products.
Main Characteristics of the System
1) Each child node is equipped with a reader and connected to the master
node;
2) The master node is connected to the Internet in a real-time online manner;
3) Each master node manages the bills. the data between the master nodes
are transparent;
4) After the nodes reach a consensus, the number of various master nodes
can continue to increase;
5) According to the WALTON coins held by the purchaser, the purchaser can
be included in the node after the nodes reach a consensus and vote for the
rights of accounting and checking to be authorized to the purchaser;
6) Checking bill and accounting will consume WALTON coins (as handling fees);
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7) The purchaser can also directly pay WALTON coins to purchase clothing.
Main Advantages of the System
1) Can really achieve tracing the source;
2) Can really achieve the purpose of unforgeablity;
3) Can achieve decentralization without the concern of trust;
4) Can reduce labor costs.