FCE Blockchaintechnology used in LEDGER , it was convenient to subdivide ... Formally speaking, any...

FCE Blockchain:Blockchain for food and agriculture

FCE GROUP AGwww.fcegroup.ch | [email protected]

FCE GROUP AG

// FC E B L O C K C H A I N : B lockc hain for food and agr icu l tu re www.fcegroup.ch | [email protected]

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Introduction .......................................

Main Interfaces .................................. Blockchain Technologies ..................... FCE and Ethereum .........................................Smart Contracts .............................................Private and Public Blockchains .................... Accounts ............................................ Guarantor ........................................................Provider ...........................................................Metadata and GDPR Regulation ..................Formal and Non-Formal Data .......................Technical details of metadata structure ....Data Integrity Control Mechanisms. Verifiers ...........................................................

Components of FCE ............................ Interface Applications ...................................WALLOK — Ecosystem Activity Interface ...BLOCKSCAN — Ecosystem Monitoring Service .............................................................BISTRA — Independent Documentation System .............................................................Service Components .....................................LEDGER — Data Storage System .................SMACO — Smart Contract Library ...............PRORID — Product Presentation System ...DOCFLOC — Conducting Contract Documentation ...............................................DIGID (E-Passport) — Metadata Management ..................................................DIPAY — Payment System ............................ Licensing ...........................................

Technological Partners .......................

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FCE GROUP AG

// FC E B L O C K C H A I N : B lockchain for food and agr icu l tu rew w w.fcegroup.ch | [email protected]

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Note: you can find terminology explanation in the “Glossary” section.

Introduction

CE Blockchain is a dynamically developing blockchain ecosystem consisting of a bunch of multi-purpose software applications. The

main goal of FCE Blockchain is simplification of communications among interacting parties of the supply chain from producer to consumer. The technologies provided by FCE make possible minimization of the number of intermediaries in this chain, as well as ensure the security and transparency of relations between business partners.

F FCE is based on a modified Ethereum blockchain platform, which provides modern tools for the implementation of projects based on blockchain technologies using smart contracts. This foundation prevents malicious modifications of data and code objects in the construction of an ecosystem. It is the construction of the ecosystem that allows us to rely on its unique properties and advanced opportunities to fully digitize a modern business.

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Main Interfaceshe user interface of FCE ecosystem is divided in two groups and is currently represented by three applications - WALLOK, BLOCKSCAN and BISTRA.

The first group of applications, which includes

WALLOK and BLOCKSCAN, is directly linked to cryptocurrency operations. The second group, which includes BISTRA, does not directly expose cryptocurrency operations in its interfaces, although it uses the same underlying blockchain services to conduct highly reliable transactions.

WALLOK is considered a key application of the first group. It is the only way to create an account in FCE and generate any activity which changes the state of the ecosystem: create a product record, sign a contract, verify user or a transaction, etc. WALLOK has been implemented as both a web application, and as a mobile or a desktop application available on multiple platforms.

BLOCKSCAN application implements comprehensive

monitoring interfaces, which can track without authentication any non-private activity of the users of FCE ecosystem. BLOCKSCAN interfaces are currently available as a web application.

The second group of applications currently includes

only one user-facing application - BISTRA. BISTRA app

T has its own structure of accounts and is intended only for collaborative work and signing of digital documents of any format and purpose.

Technologically, these three applications work with

one distributed ledger consisting of a FCE Blockchain and a Database Management System (DMBS). This complex distributed resource with multiple internal components and interfaces within FCE is called LEDGER.

Due to specific aspects of implementation of the

technology used in LEDGER, it was convenient to subdivide the work on it into two processors. The first processor is responsible for “computing heavy” operations with the ledger (entries requiring long time and consuming large distributed technical and algorithmic resources), while the second one is optimized for reading from the ledger and controlling possible attempts of malicious data modifications.

In that context, multifunctional applications of the first

group can be divided based on this principle. In can be stated that WALLOK implements interfaces for the first type of processor, and BLOCKSCAN – for the second one. On the other hand, the interfaces presented in BISTRA app are currently much simpler than the interfaces of the first group, so that the similar division is not implemented in this tool.

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3.

Blockchain Technologieslockchain technologies make possible maintaining special ledgers of random operations

with a certainty that it will be impossible to modify any entries that already exist in the ledger (blockchain).

Technical implementation

of such ledgers is complicated enough and requires considerable computing power and sophisticated applications, but the benefits of using these technologies increasingly prompt to apply them.

Formally speaking, any

blockchain, without regard to particular implementation technology, represents a chain of mutually related blocks of data. The blocks may contain different

B types of data and be added to the blockchain by binding to other blocks through determined cryptographic algorithms.

It should be noted though

that blockchain as a term is not synonymous to cryptocurrencies, being only a computational abstraction defined as a distributed data storage system with certain features.

Everything that was added to the

blockchain stays there forever intact, and the more blocks are added to the blockchain after a given entry, the higher is the chance that this entry will not be modified.

Initially, blockchain technology

was developed and applied in the

context of Bitcoin cryptocurrency. Its main purpose was the storage of transactions linked to the value transfers conducted in Bitcoins.

Later, blockchain technologies

developed more and more, and today they are available as universal platforms that can be used to build any data management system without thinking about how complex is the implementation of underlying blockchain.

In today’s context the basic

purpose of the blocks in the blockchain can be considered the transaction storage containing different modification in applied and service data that composes the concept of the project, which uses blockchain.

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FCE and Ethereums was already mentioned, FCE is based on a deeply reworked Ethereum platform, which is

an up-to-date and actively developed platform based on blockchain.

By using reworked and original

tools of Ethereum platform, FCE supports the operation of its own blockchain intended only for project ecosystem application. As a token asset, FCE implements within its blockchain its own cryptocurrency named FOOD, which will have to be used to spend for any activity related to data change within the ecosystem.

A significant role of FCE

application consists in the use of smart contracts supported by

A Ethereum platform for its blockchain. Within the implementation of the ecosystem, a set of smart contracts was developed, divided broadly into two groups by the number of used instances: single instance and multiple instances. The multiple instance smart contract group was combined into an entity named SMACO (smart contracts library).

A considerable part of the app

functionality WALLOK and BISTRA is based on implementation of user-friendly formalized interfaces to work with smart contracts from this library.

The FCE blockchain uses a modified Proof of Authority (PoA) consensus algorithm that provides

3. 1.

an appropriate practical and effective solution for blockchains. FCE blockchain validation nodes have their own reputation and receive commission and emission for the blocks created, and the blockchain itself is protected by these nodes.

The model is based on a limited

number of block validators and it makes the system scalable. Blocks and transactions are validated by pre-approved participants, who are selected by the system moderators.

The consensus algorithm can

be applied in a variety of scenarios, and is a highly valuable option for logistics applications.

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Smart Contractsthereum platform provides tools to create and work with specialized apps that can be placed in blockchains and used with confidence that the app

code will not be modified since it was placed in one of the blockchain blocks.

Such apps, within the context of Ethereum platform,

are called smart contracts. When a smart contract app instance is launched,

or a public function that modifies the smart contract data is called, a transaction is generated, containing the information required for execution of the smart contract initialization function or for calling of the specified smart contract interface function.

The generated transaction is then transferred to the

new blockchain transactions pool and awaits until a miner processes this transaction to add it into the block collected. As soon as the block transferred from the miner is verified by the means of blockchain whether it complies with the cryptographic requirements, the blockchain starts joining this block to the blockchain. At this moment, Ethereum virtual machine will execute smart contract functions for all transactions of added block and transfer all the data specified in the corresponding transactions.

Smart contract apps have direct access to the blockchain to read or write data to it and can be used to perform arbitrary applied and service operations with this data in the blockchain. For example, a smart contract app can be used to control the flow of funds, verify some data, or organize all types of transactions.

The same smart contract can be deployed (placed on the blockchain) many times. Each deployed instance of a smart contract will have its own entry point (address) and its own set of data describing the way it is used.

Thus, FCE users, by using a convenient interface for working with smart contracts, can prepare and deploy any of the applications that meet the interests of the generated communication scheme in the blockchain with other ecosystem participants.

Let us give an example of using a smart contract application for voting.

To organize a voting using smart contract app, the user has to write an application that will save votes in the blockchain, then deploy this application in the blockchain

E and after that each of the voting participants will have to refer to the desired function of this application to record their vote.

The advantage of this form of voting will be the availability of blockchain, which guarantees that neither the application nor the votes recorded in the blockchain will change. If the application will be further enhanced to include reliable authorization and authentication, there will be no reason to question the results of such vote.

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Private and Public Blockchains

Private FCE system Public FCE system

y the principle of ownership, blockchains are divided into private and public blockchains.

Private blockchains are supported by one person or a limited group of people. On the contrary, public blockchains are supported by the participation of an unlimited number of people.

The advantage of private blockchains includes the confidentiality of data. At the same time, credibility of the blockchain owners must be strong enough so that the use of such a blockchain would make sense. As mentioned above, the blockchain is a log of cryptographically linked blocks in which the data cannot be changed in the way that it goes unnoticed by those blockchain participants who are involved in its formation and verification. This is possible if the blockchain exists in multiple copies and any attempt to change one of the copies will not go unnoticed when synchronizing with other copies.

Public blockchains easily guarantee the immutability of the data stored in them, but at the same time, they cannot guarantee the confidentiality of the stored data.

FCE Blockchain works in conjunction with a DBMS.

Such tandem is called LEDGER. LEDGER is designed in such a way that the FCE blockchain does not contain confidential data and, therefore, it can easily be kept public while the sensitive properties are stored within DBMS running on one of the FCE Blockchain servers, which can guarantee confidentiality.

FCE Blockchain considers LEDGER and, separately,

the FCE blockchain as independent business products that can be used separately from all other FCE products.

Thus, any interested party can become a client of FCE

Blockchain Company as a consumer of public or private blockchain services alone or in LEDGER tandem.

In this case, FCE Blockchain can offer customers the

deployment of a separate blockchain of private or public type, as well as offer a connection to the already deployed general purpose blockchains.

Also, FCE Blockchain Company specialists will be able

to offer customers the development of specialized smart contracts and general support on all technical, legal and economic issues related to the use of blockchain-based data systems.

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Accounts

Joint account

Direct account

o become a member of FCE, you have to register a new account and go through the verification procedure. Only verified participants are able to

make transactions with blockchain.

There are two types of accounts.1. Personal accounts.2. Shared accounts (joint-accounts).3. Provider managed accounts.

Personal accounts are further distinguished by their rights as follows:

• Direct accounts;• Garant managed accounts.

The difference between these types of accounts consists in different sign-in mechanisms to access the resources of the ecosystem. An integral part of these

T mechanisms is a special code named private key. Technically, these options differ by place of storage and method of access to the key.

1. Direct accounts — only the account owner has the private key.

2. Garant managed accounts — the garant stores the key in encrypted form, so only the owner can decrypt it, after the garant gives the encrypted key access to the owner. The garant itself cannot decrypt the stored keys.

3. Joint-accounts are essentially smart contracts and access to their assets is provided through direct accounts added to them by its creator.

4. Provider managed accounts - for all operations in the blockchain special smart-contract and the provider’s account are used. The user account ID is added to the blockchain entry through the smart contract feature.

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Guarantor

Guarantor

uarantor of FCE is a user with special rights to control and perform transactions. To

obtain these rights, the user must go through a verification procedure and get a license from FCE GROUP AG.

FCE Guarantor must also have FCE GROUP AG certified software.

Special privileges of Guarantor also include the ability to carry out transactions individually at the expense of its own fund — Guarantor Fund (GF).

The accounts which work through the Guarantor use a private key that a Guarantor stores in an encrypted form. The password for decryption and application of the key is known only by the owner.

The account user, which works through a Guarantor, can view the information about it by using FCE’s BLOCKSCAN service.

Number of accounts working through a Guarantor is unlimited.

Guarantor is a software with an assigned verified account in FCE, acting as a provider of user transactions sent from the official FCE wallets, or even being a transaction guarantor on a fee basis, able to guarantee instantly that the transaction will be carried out successfully. If there is a problem in performing a transaction, a Guarantor does it individually at the expense of its Guarantor Fund (GF).

Guarantor Fund (GF) is generated through a smart contract. Guarantor Fund (GF) can either be deposited by user itself as a potential Guarantor, or by other users of the network. A potential Guarantor becomes full-featured Guarantor as long as the Guarantor Fund (GF) is filled to a minimum amount and FCE GARANT SYSTEM software is implemented in the network with a public IP. If

G the Guarantor Fund (GF) is empty, the Guarantor’s node can act as a transaction provider. The Guarantor can only guarantee transactions with the amount of the Guarantor Fund (GF) - 10%.

If the Guarantor fails to comply its obligations, or if the Guarantor loses control on its server and/or database, user data protection system is performed in a following way:

• DB replication (The Guarantors database server data are constantly being copied (replicated) to one or several others (called replica) on FCE side);

• Regular distributed backup creation by the Guarantor;

• Guarantors’ transition to the SaaS model with separation of access rights.

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Provider

Provider

CE Provider is a user, which has special rights to control of information submitted to blockchain on behalf of other user’s account under its control. To

obtain these rights, the user must go through a verification procedure and get a license from FCE GROUP AG.

FCE Provider must also have licensed software from FCE GROUP AG.

Account, which works through a Provider use an authorization system based on SHA512 encryption for every command sent to the provider; the provider for its part submits the information to the blockchain using its verified FCE blockchain account and a smart contract developed by FCE GROUP AG.

User which has an account that works through a Provider can view the information about it via FCE’s service BLOCKSCAN.

Number of accounts which work through a Provider is unlimited.

F Provider is software and an associated FCE verified account that serve as a transaction provider of the users that submit the information to the blockchain, sent from official FCE services and that can also be rewarded for its services.

The data is stored through a FCE smart contract.

If a Provider fails to comply its obligations, or if the Provider loses control on its server and/or database, user data protection system performs in a following way:

• DB replication (The Providers database server data are constantly being copied (replicated) to one or several others (called replica) on FCE side);

• Regular distributed backup creation by the Provider;

• Providers’ transition to the SaaS model with separation of access rights.

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Metadata and GDPR Regulation

ny account has a set of data associated with it. Some of that data is formalized and required according to certain rules established and supported by the

ecosystem. Additionally, the information about every account can be optionally extended with any data, which is important according to the account owners.

Within FCE terminology, such data is called metadata. The method for storing the metadata supports the General Data Protection Regulation, GDPR established by the European Union in April 27, 2016, and in force since May, 25, 2018.

According to this Regulation, any user must be able to eliminate any of his or her personal data stored online. To implement this feature within blockchain, which does not allow data modification,

A there is a special technology built on data hashing.

This technology is based on a rule that all data that could be required to be eliminated are stored in a DBMS, while the blockchain stores only hashes calculated based on this data.

Thus, by comparing the hash data stored in the blockchain and hash data calculated by the data stored in a DBMS table, you can assure that the data checked is intact. On the other hand, storing the data in DBMS tables makes it possible to delete it, for example, at owner’s request. At the same time, any data modification in the database made beyond the system will affect the hash change, which will make this data not valid for the blockchain and the system will detect it.

Metadata and GDPR Regulation

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Formal and Non-Formal Dataata to be verified can be divided into two categories: formal and non-formal

Formal data comprises the majority of expected data, that is supposed to make it possible to execute the most convenient way to present it. Such data can be a person’s name, his or her photo, address, etc. For example, FCE accepts any data that can be formal, which is regulated by KYC (Know Your Customer) rule.

D On the other hand, non-formal data consists of variety of all data, whose representation is not ready, though can be stored in the system and guarantee that this data is stored there.

Total data size for storage of the values into the formalized and non-formalized fields is 16 kilobytes. Such restriction is fair for any data, if nothing else is stipulated.

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Technical details of metadata structure

s it was mentioned before, data processing is on a duty of metadata smart contract. This smart contract has service purpose, and any element in it

is described by three parameters:

• metadata variable address (unique identifier of data access);• metadata variable name;• metadata variable value.

The hash based on this data is formed by this data set through SHA512 algorithm. At the same time, to make it

A harder to brute force the hash with hash libraries used for system hacking, the data chain generation algorithm for hash calculation uses additional data, guaranteeing the uniqueness of hash obtained within the ecosystem and that there will not be same hashes in other hash sets.

In theory, any volume of metadata can be attached to any account. However, to prevent malicious activity with the accounts, implementation of restrictions of data size and/or volume permitted for every account is considered.

Technical details of metadata structure

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User Address Variable Owner Address Variable Name Variable Value

Mike’s address Mike’s address FirstName Mike

Mike’s address Mike’s address LastName Wazowski

Mike’s address Mike’s address email [email protected]

Mike’s address Verificator Pete FirstName Mike

Mike’s address Verificator Pete email [email protected]

Verificator Pete Verificator Pete occupation KYC

John Doe’s address John Doe’s address name John Doe

John Doe’s address John Doe’s address occupation musician

John Doe’s address John Doe’s address info The boy who lived

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Data Integrity Control Mechanisms. VerifiersCE implements flexible data integrity control mechanisms. It was mentioned before

that the blockchain technology guarantees permanence of data, but it is not related with the integrity of this data. However, need for control the integrity is one of the key objectives of FCE Blockchain, because the efficiency of solution of this task determines the potential of applied interest to the ecosystem.

The implementation of the data integrity control mechanism assumes the presence in the FCE ecosystem of special authorized entities entitled to confirm optional data using the licensed ecosystem software.

As we go forward, the data integrity ensuring process will be called verification, and the subjects with the right to confirm the data verifiers.

F To obtain the status of verifiers, users must undergo certain procedures regulated by special documents and controlled by the FCE administration. In addition, such licensing satisfies the international rules of KYC (Know Your Customer).

Thus, FCE provides the required level of trust to its verifiers, and the verifiers are responsible for the actions they perform.

Users who have received the status of verifiers, have the authority to verify arbitrary metadata of other users of the system.

Technically, the data verification procedure consists in association to a verified metadata entry with a special hash generated by the system on behalf of the verifier. The verification hash is placed on the blockchain, which guarantees that it cannot be modified.

Data integrity control mechanisms

To ensure the uniqueness of the hash itself, the unique service identification data of both the metadata owner and the verifier interfere with the initial row of its formation. Thus, if the same verifier performs verification of the same metadata for different individuals (for example, the same name or year of birth), then different hashes will be obtained.

Metadata with verified status is checked by the system every time this data is read. The system recalculates the verification hash and if it does not coincide with the verification hash that is stored in the blockchain, the system reports the problem. Thus, modify the data to bypass the system will not give the desired results - deception will not go unnoticed.

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Components of FCECE includes a number of software products that can be divided into two groups based on if the user interface is present or not.

The user interface is provided in three FCE software products. These applications are WALLOK, BLOCKSCAN and BISTRA. The other ecosystem software products (applications and programming components) do not have a user interface. However, some of UI-less FCE software projects are the network software which provides the various services in form of network API (Application Programming Interface).

These UI-less applications include DIPAY - a payment system that implements the trading core to create the trading platforms that use cryptocurrency payments.

In the context of high-level concepts representing the components of FCE, we can talk about the SMACO concept - a library or a smart contract factory that includes the projects for the others concepts - for example, DOCFLOC (document signing management) and PRORID (product registration management). SMACO unites only

F those smart contracts that are used in many instances - a separate instance for each case of use.

So, not all smart contract projects of FCE are included in the SMACO factory. DIGID is an example of that. DIGID is an e-passport concept based on a smart contract that implements the storage of metadata for user accounts of the ecosystem and the storage of information on FCE verifiers. Based on this smart contract, a functionality is implemented with the interface represented in WALLOK and BLOCKSCAN.

The plans for the further development of FCE include the implementation of a separate service based on the DIGID subsystem. The service will have to support an open authentication interface based on the OAuth2 specification, in order to be able to use FCE accounts on other systems (like Facebook, Twitter, etc.).

Users who have verified a specific set of metadata (For example: real_name and email, real_name and passport and so on) are verified users.

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Interface Applications

WALLOK — Ecosystem Activity InterfaceALLOK app is the central interface for any changes in the ecosystem data structure.

WALLOK provides a list of the following principal activities.

1. Wallet management. Wallet management. Using the software interface, you can:

• Create a wallet• View cryptocurrency balance;• Transfer and receive funds using transactions

with private and public comments if you have passed the verification procedure;

• Invoice for payment;• Exchange Ethereum ERC20 FOOD tokens for

FOOD coins.2. Ecosystem Account Management. The system

offers a wide range of options for creating accounts of several types and their further support, which includes the addition of various types of private and public information and their possible verification (control of the authenticity). This functionality is based on the DIGID

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WALLOK

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concept, which provides mechanisms for secure storage of metadata and verification information.

3. Product Information Management. The functionality is implemented within the framework of the PRORID concept. Features include registration of products and their transportation routes.

4. Management of contractual documentation. The functionality is implemented within the framework of the DOCFLOC concept. Available functions to create private and public documents.

Everything that has been produced based on the presented set of activities can be viewed using the interfaces of the WALLOK and BLOCKSCAN applications. The BLOCKSCAN application gives you full access to all public data and their interconnections, and the WALLOK application is mainly limited to information that is relevant to the account you are using.

To simplify the search, the application offers an interface for scanning QR codes, which are used for marking products, invoices and other FCE artifacts.

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BLOCKSCAN — Ecosystem Monitoring ServiceLOCKSCAN (BS) tracks every action within internal FCE blockchain. BLOCKSCAN application scans the blockchain and gives opportunity to the users

to watch all public data, stored at LEDGER FCE system.

On a more specific note, FCE users have access to the following data using BLOCKSCAN:

1. Data on all accounts of FCE:a. list of all active system accounts who carried out

transactions or have licenses;b. personal account information (metadata);c. Verifier account information;d. smart contract data;e. Miner account information;f. Garant account information;g. Provider account information.

2. Data on products registered through PRORID concept:

. list of all products registered in the system;a. details of the product, including information

about its delivery and the conditions of its production. For complex products, user can track the connection for the production and delivery of any number of raw materials;

b. product supply chains, including during their processing;

c. data about the manufacturer of the product and the companies delivering the product;

d. history of product records.

3. Data on blocks and transactions: . list of all transactions to the system;a. list of all blocks in the system;

B b. separate information about each transaction;c. separate information about each block, including

the Miner who created the block, the list of transactions included in the block, the algorithmic complexity of the block, the estimated cost of the block and the commission received by FCE for the block.

4. Data on contractual documentation held under the DOCFLOC concept:

. a list of all public contractual documentation;a. a list of all private contractual documentation

with only data about hash;b. voting results for each of the documents.

BLOCKSCAN users also have access to search among accounts, transactions, products - everything that has a unique identification address in FCE.

It should be considered that some of this information can be obtained through the interfaces of WALLOK application, and the difference is that WALLOK allows to view the artifacts associated with the account which is currently logged in to WALLOK application, while BLOCKSCAN interfaces give access to the all FCE resources.

Another important feature of BLOCKSCAN application is continuous scanning of FCE blockchain, in order to track new entries, as well as to monitor unauthorized changes in LEDGER system.

In the current implementation, BLOCKSCAN exists in a single implementation, providing a web interface.

BLOCKSCAN

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BISTRA — Independent Documentation SystemISTRA is a relatively new service implemented

within FCE on a base of tools created in the ecosystem. It is aimed to provide modern

technological capabilities for shared work with various documents for that part of the business sphere that does not use cryptocurrency on a daily basis.

In simple terms, BISTRA service interface provides confidential options for remote document signature of any format and purpose.

Despite the fact that BISTRA uses common technologies implemented in FCE, there are noticeable differences in the interfaces of these technologies, which allow BISTRA to fit perfectly to the needs of the distributed business without involving it in cryptocurrency operations and ensuring the required confidentiality. For example, in contrast to the WALLOK service, BISTRA does not associate work on documents with the management of cryptocurrency funds, and the BLOCKSCAN service does not present in its review the artifacts created when working with the BISTRA service.

BISTRA service allows to associate a group of persons to participate in the document signature with

B any document compiled earlier, which has an electronic form. Moreover, the system will guarantee confidentiality, if necessary. Also, the system prevents modifying the voting results, providing verification for each of the voting participants, if necessary. All these factors should ensure a high level of confidence both in the organization of the voting process and in its results.

The guarantees of the BISTRA service, as in the case of other ecosystem services, are based on the special structure of the data storage subsystem, whose concept of implementation is described under the name LEDGER. Looking ahead, we can say that the reliability of data storage and the possibility of their verification are provided by means of the blockchain and the use of various concepts implemented on the basis of smart contracts. This fact determines the high level of complexity of modern technologies that lie in the provision of this service.

In the recent implementation, BISTRA service is presented so far only in the form of a web interface.

BISTRA

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Another reason for the separation of data storage between the blockchain and the DBMS tables was the need to comply with GDPR (General Data Protection Regulation). Data deletion requirements cannot be met if this data is stored in the blockchain.

DBMS technologies are in some way the opposite of blockchain technologies, and they support high speed operations such as adding, changing, deleting, reading and searching.

Based on these capabilities of blockchain and DBMS technologies, the technology used in the LEDGER system allows it to simultaneously meet the requirements of GDPR and have a reliable and fast data storage system.

Service Components

LEDGER — Data Storage SystemEDGER is one of the high-level concepts of the FCE ecosystem, meaning the entire

distributed system for storing data of the ecosystem.

Technically, LEDGER is composed by two basic data storage components — blockchain and DBMS (Database Management System).

Blockchain performs the functions of reliable data storage. Blockchain building technology guarantee the data persistence. However, the process of searching and extracting data from a chain of blocks is slow. This was one of the reasons why it was decided to use database tables in parallel with blockchain.

L The following rule is used to separate data between the blockchain and DBMS. Blockchain contains only data that do not fall under the jurisdiction of the GDPR. To save in blockchain something that falls under this jurisdiction, the real data should be stored in DBMS and only hash calculated from this data is stored in blockchain. At the same time, the update scanning system in the blockchain transfers the new data to the DBMS tables, while the blockchain control scan system is responsible for maintaining uniqueness between the data in the blockchain and in the tables. This prevents unauthorized modification to the data in the tables, since the DBMS technologies do not guarantee such unauthorized changes.

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SMACO — Smart Contract Library

SMACO

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MACO is another virtual FCE concept that combines the management of multiple smart contracts (i.e., such smart contracts, whose instances may be

present in the FCE ecosystem in any number). Another, a brief way to describe SMACO concept is “library or factory of smart contracts”.

Currently, SMACO manages smart contracts on which the DOCFLOC and PRORID concepts are based.

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PRORID — Product Presentation SystemRORID is a product presentation concept based on the corresponding smart contract and on the code of WALLOK and BLOCKSCAN applications.

The purpose of this concept is presentation of any product information. It can be information about the characteristics of the product, its composition, how it was produced, the manufacturer, transportation routes and any other information that may affect the interest in the product being presented.

All information in the PRORID system is stored in the distributed storage LEDGER. At the same time, the original data entirely fall into the blockchain, and their copy is periodically transferred to the DBMS tables.

Data transfer to the blockchain is controlled by the smart contract FoodcoinProrid. According to the terminology adopted by the FCE, each completed block of information about the product is made up of a separate

P copy of the FoodcoinProrid smart contract and is called a prorid.

At the smart contract level, any outdated information can be updated. In this case, the entire history of changes will be stored in the smart contract. When reading, always use the latest data element of the source.

Also, through the interface of the smart contract, you can forbid further changes in the profile or declare them irrelevant.

The main data structures and functions of this smart contract are described below.

1. Data structure.a. Prorid type. Current implementation of external

interface applications supports three types of prorids: product description — general data type, transportation information, and information about the conditions of

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PRORID

production of goods. The smart contract code simply saves the transferred value of the type without analyzing it.

b. Prorid applied data. Central data field. It is specified when creating a prorid instance. From a smart contract perspective, it is a regular data text field. It provides maximum flexibility in the use of smart contracts and allows external applications to store data of any structure in it. According to the accepted agreements, in the technical part of the FCE Blockchain, external applications use the JSON format to structure the data stored in the arias. The format of the structure stored in JSON is determined by the type of the source.

c. Prorid creation date.d. Prorid creator’s and owner’s account

addresses. The creator of the prorid can assign another person as the owner of the prorid. These fields, are also used to control data submission to the portal.

e. Prorid relevance. It is supported by the relevance flag and the redirect address. If the flag indicates that the proride is irrelevant, then it is possible that the prorid provides the address of the redirect to the corresponding relevant prorid.

f. Prorid applied data update list. If the application data of the prorid has to be updated, the smart contract does not replace the old data with new one, but accumulates updates in a separate list. Each element of

the list, except for the service fields, contains the text of the updated data, the date of the change, and the address of the recorder. The most recent entry is used in the final view interfaces.

2. Functions. Calling all functions that change the state of the prorid is allowed only to the system administrator, as well as to the creator and owner of the prorid.

. Disabling the prorid editing.a. Cancellation of prorid relevance.b. Setting the redirect address to the current

prorid.c. Update record. The function works only if prorid

is allowed to be edited.

The data recorded via the smart contract is saved in the blockchain through the transaction system. This data cannot be changed.

When the system scans the blockchain, the data of the archives is copied into the DBMS tables and the interface work with the user is based on the copies stored in the tables. In order to ensure resistance to possible unauthorized changes in the data in the tables, they are re-checked at regular intervals by check scans of the blockchain.

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DOCFLOC — Conducting Contract DocumentationOCFLOC is another concept that provides funds for distributed work with contracts, contracts and other materials that require the signature of several

parties. Using the verification of accounts, users can achieve a high level of confidence in the signatures made by verified agents.

Data within DOCFLOC concept comes from and controlled by LEDGER data storage system. The part of the data that enters the blockchain is controlled by a smart contract FoodcoinDoc. Data entered in the blockchain can not be changed.

User interface for creating and signing materials with DOCFLOC implemented in the WALLOK application. Also, WALLOK offers an interface to monitor user’s activity lists in DOCFLOC. BLOCKSCAN application interface shows full public data on DOCFLOC activity within the framework of FCE.

For each individual file artifact (document with contract, photo, book, etc.), which should be signed by several parties, a separate copy of FoodcoinDoc smart contract is used. To create and manage instances of the

D FoodcoinDoc smart contract, the system uses another smart contract, FoodcoinDocFactory. Thus, the WALLOK application each time refers to this factory for the release of a new smart contract on FCE Blockchain. After the smart contract appears on the blockchain, it will be able to accept signatures from the persons specified in the recipients list of the file associated with the given smart contract instance.

Below are the main data structures and functions of the FoodcoinDoc smart contract application.

1. Data structure.a. Availability of the document. The document to

be signed may be private or public.b. Document name.c. Additional information about the document. It

includes all that may be required for a better understanding of the document itself and agreement on this document.

d. Document hash.e. List of the recipients. It contains a list of accounts

of all participants who must leave their signatures on the document.

DOCFLOCK

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f. List of the voting results. This list corresponds to the list of subscribers and contains information about whether this account holder has voted or not. In case a vote was counted, the result is defined as agreement or disagreement with the document (agree/disagree).

2. Functions.3. Editing name of documents.4. Document signature transfer. The function

controls and prohibits attempts to change the voice. When transferring a signature, the party also transfers the hash of the document being signed, which ensures that the signature refers specifically to the document associated with this smart contract.

5. Access to any information on the document, recipients and results.

A smart contract application does not allow the contents of the document itself ito be transferred to the smart contract and to be stored in the blockchain. Service algorithms work only with the value of the hash calculated by external applications on the document being signed. Such an approach makes it possible to delete signed documents from DBMS tables

without the ability to recover a deleted document from the data in the blockchain. In this context, you should not write too much in the section of additional information on the document, which cannot be removed from the blockchain.

WALLOK application provides two similar interfaces for creating and executing two types of agreements - based on private and public documents. The visibility of the documents and the results of the private documents agreement is restricted.

Further development of FCE is intended to determine the role of a notary to attract agreements signed through the DOCFLOC concept. This will give the agreements a special legal status.

DOCFLOC by itself does not guarantee the legal value of the signatures. However, the FCE itself can guarantee the authenticity of the individuals who have signed any agreement, and DOCFLOC, based on the blockchain technology, ensures that the individuals match the signatures, and the signatures match the documents.

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DIGID (E-Passport) — Metadata Management • Metadata group. They store

metadata objects identified by a variable name from a metadata object. All metadata of one group was registered by the owner of one account. Also, identification by adding an object to a group is implemented. Thus, each metadata object is identified by the address of the owner of the metadata registry, by the address of the recorder of this metadata and by the name of the variable from the metadata object, and, instead of the name of the variable, you can use the object’s index.

For example, if an M (metadata) metadata object containing a variable named N (name) is registered by the account holder F (from) and belongs to the account holder U (user), then we can say that the metadata M is identified by three parameters (U, F, N): M = M (U, F, N). Or, also, identification is available in the form M = M (U, F, Mx), where Mx is the index of the metadata object.

• Metadata object. It stores a pair (name, value), which constitutes the arbitrary essence of metadata. Both the name and the value can be completely arbitrary. The implementation of a smart contract itself does not impose any restrictions on the size or content of these values.

• Verifier object. An object that describes the address of the verifier’s account and the data about validity license (time of issue and time of expiration).

• Verifiers list. It stores the objects of verifiers identified by the address of the verifier. Also, identification by the addition of a validator to the list is implemented.

Based on the presented data structure, a smart contract defining the operation of the system DIGID implements the following

he metadata management system DIGID is a new concept of FCE developed on the basis

of an individual smartcontract FoodcoinRegistry, which is not part of the SMACO smartcontract library concept. FCE Blockchain uses only one instance of this smart contract.

The purpose of the DIGID concept is to manage metadata, including verification support. At the same time, FoodcoinRegistry smart contract itself does not contain direct information for verification, but it manages both metadata lists and verifier lists, which allows external applications to calculate verification links.

Metadata management in smart contract relies on the following data structures and attributes.

• General metadata registry. It stores individual metadata registries identified by account holders. Each account holder has its own individual registry. Also, additional identification has been implemented by adding individual registries to the general registry.

• Individual metadata registries. They store sets of metadata objects identified by the recorder of the metadata object. Thus, each individual metadata registry is divided into groups identified by the recorder of these data. Also, additional identification by the index of adding a group to an individual registry is implemented.

For example, if the metadata group G (group) is registered with the account holder F (from) and belongs to the account holder U (user), then we can say that the group G is identified by a pair (U, F): G = G(U, F). Or, identification is also available in the form G = G (U, Gx), where Gx is the item index in user group.

T main interfaces.

1. Adding a verifier. You must specify the address of the account verifier, the time of release of the license and the time of expiration.

2. Getting verifiers.3. Adding metadata. In

addition to the metadata itself, you must specify the owner of the metadata and the metadata recorder.

4. Getting metadata.

A distinction should be made between metadata recorders and verifiers..

The recorder can be any member of the ecosystem. In this context, its function is to enter data into the registry. The recorder may also be the owner of the metadata registry.

The verifier is a special participant in the ecosystem, which has a special license to verify the data. Accordingly, as a participant in the ecosystem, the verifier can be a data logger. Moreover, if the metadata is in the group associated with the address of the current verifier (that is, a verifier whose license has not expired), then all this metadata can be considered verified after a corresponding verification of the hashes. If the validator’s license expires, the metadata in his group will no longer be considered verified.

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DIPAY — Payment SystemIPAY is a payment system presented as a service that provides a set of APIs for network applications that use TCP/IP. The communication is based

on the REST architectural principles over the HTTP. The main purpose of DIPAY is to offer a payment core for a cryptocurrency trading platform that supports an arbitrary number of sellers.

As payment assets, DIPAY supports operations with ETH (Ether), FOOD (FoodCoin), BTC (Bitcoin), as well as the Ether and the FoodCoin tokens.

The set of DIPAY APIs can be divided into several groups.

1. SHOP API - the functions for management of the shops, the shop means (cryptocurrency tools), and the shop agents roles (roles of authorization).

2. ORDER API - the order management system. Two types of orders are supported - commodity and money. The first ones are used to pay for goods, and the second - to distribute funds in cryptocurrency.

D 3. RATE API - the functions to access the exchange rates information for a supported fiat currency and a cryptocurrency.

4. MOCK API - the functions to management the cryptocurrency mock. It is useful to test trading platforms created on the basis of DIPAY without using real cryptocurrency assets.

5. ADMIN API - the special functions. These functions are used only for technical monitoring and for execution some specific tests.

6. SYSTEM API - these functions are intended for a technical monitoring of the runtime parameters.

DIPAY supports an authorization on base the roles. Three roles are supported now - a system administrator, a shop administrator and a shop operator.

To create a shop, the client should request this to the DIPAY system administrator. Only a system administrator can create a shop and get a first pair of the shop access keys.

DIPAY

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The initial pair of keys, which are passed to the client, can be used to authorize in DIPAY as an administrator of the shop. Next, the shop administrator can create an any number of pairs of keys to access his shop both as the shop administrator or as the shop operator. Later, the created key pairs can be deleted. Only one key pair cannot be deleted - the last pair for authorization in the role of the shop administrator.

The user accounts for each of the shops are independent. Thus, the user accounts of one shop cannot be used to work with another shop. It allows to use DIPAY as a marketplace for multiple independent shops.

You can create and manage orders as a shop administrator or as a shop operator. Orders can be invoiced to pay for goods (commodity orders) or to transfer tokens (money orders). Funds on the paid order can be automatically transferred to the set of the recipients.

Execution of commodity order starts just after the order will be paid. By contrast, the execution of money orders starts immediately after the order is published to DIPAY engine.

As soon as the order processing is completed (both in case of successful and unsuccessful completion), the corresponding notification message is sent to the shop notification point which is described in the shop account. DIPAY stores the details about whether or not this notification message was sent successfully - there is an agreement that the shop should send acknowledge about receiving such message.

The DIPAY is largely independent of the other FCE tools and may be considered in point of view of a separate commercial interest as part of the business plans of the ecosystem. There is only one detail that associate DIPAY and other projects of the FCE - it is the supporting of the FCE cryptocurrency assets by DIPAY.

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LicensingCE grants the licenses:

1. to perform the Provider’s functions;2. to perform the functions of the Guarantor;3. to perform the Miner functions;4. to perform the Verifier functions.

Licensing is provided with the special notes in the accounts of licensed persons and, in some cases, gaining access to specialized software.

Below are the details for each type of licensing.

Provider:The person who has gained the license of the Provider

gets a special access to the BISTRA system. A list of system providers can be obtained via BISTRA. Any of the providers can perform their functions on the basis of their own contracts with clients.

Guarantor:The person who has gained the guarantor’s license

has access to the Guarantor application. Through this application, the licensed person works with clients and manages his guarantee fund.

Miner:A person who has gained a mining license has access

to the mining application. In FCE, the mining application is a cloud-based application implemented as a SaaS. The mining principles of FCE are based on a special selection of miners (an off the street person cannot become a participant in FCE mining). Also, the implementation of mining software in the form of a cloud service gives the additional advantages in the mining control and becomes a serious obstacle to the external abuses in blockchain.

Verifier:A person who has gained a Verifier’s license gets

a special access to the WALLOK application.

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developing system and, respectively, have an impact on its development.

Technological Partnerselow are the partners that are not just included in FCE Blockchain as users, but which, to some extent, are integrated into the framework of the

B

11000 EcoFarms

7.

7. 1.

000 EcoFarms (https://www.1000ecofarms.com) — is a web-based global marketplace for producers and consumers of natural food and related products.

FCE tools will be integrated into the online marketplace to provide additional unique value-added functions for its

participants. These include access to automated escrow services, low-cost payment processing alternatives, product provenance services, and other advanced capabilities.

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Use Caseshe manufacturer of any product can connect to any available FCE activity interface (which are currently versions of the WALLOK application for different

platforms), register on it and announce their products there.

On the other hand, through the ecosystem monitoring interfaces (now this is only the BLOCKSCAN web application), the consumer can view the products presented in FCE and, in the event of interest in some products, can agree on the supply of this product to him already to some ecosystem activity interfaces.

If it is necessary to draw up legal contracts, the ecosystem allows signing contractual documents of any

T

8.

kind between an arbitrary group of parties, for example, between a producer and a consumer of any product. At the same time, the system, based on modern technologies, can guarantee the immutability of the documents to be signed and the validation of the signatories of these documents.

Such a form of communication, on the one hand, will reduce many possible intermediaries in this chain, and, on the other hand, provides technological security of transactions (regarding malicious manipulation of data), as well as provide means to increase the level of trust in the ecosystem and transaction participants.

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GlossaryISTRA - separate interface with documentation system based on DOCFLOC and DIGID,

without associating service users with cryptocurrency assets, which are the base of alternative services on interfaces provided by WALLOK.

DIGID - (Digital Identification) metadata management concept implemented within FCE. Another name of the concept - E-Passport.

DIPAY - (Digital Payment) payment system implemented as a separate service within FCE.

DOCFLOC - (Document Flow Control) contractual documentation management concept implemented within FCE.

E-Passport - concept of a digital passport used in context of description of FCE functionality. Another name of the concept is DIGID.

FCE - (FC ECOSYSTEM/FOODCOIN ECOSYSTEM) an ecosystem designed to create and strengthen trust relationships between various business agents: buyer and seller, service provider and his clients, etc. The text also uses the combination of FC ecosystem. The initial development of the FC ecosystem was associated with the food products distribution, therefore, the name of the ecosystem contains the word FOOD. In the future, the ecosystem was abstracted from the type of supported products, which affected the support of the abbreviations FCE / FC ECOSYSTEM, without any additional decoding.

PRORID — (Product Origin ID) product presentation concept implemented within FCE. Allows you to build a goods distribution chain

B starting with information about the conditions of their production and manufacturer.

SMACO - a library or factory of smart contracts of a multiple type. To describe the functionality of FCE, it is convenient to classify the used smart contracts by the number of copies used. Multiple type includes smart contracts, the number of instances of which is unlimited. In contrast to this, some smart contracts are used in a single instance.

Blockchain - data storage system presented as a chain of related blocks. Each next block is added to the blockchain and is associated with existing blocks using cryptographic algorithms that provide control over unauthorized data changes in the blockchain. In other words, any entry made in the blockchain is considered unchanged, i.e. cannot be changed or deleted.

Miner - third party supporting the blockchain operation. The miner receives a reward in the form of cryptocurrency assets of this blockchain for the participation. The miner’s main official task is to fetch transactions from the transaction pool and package them into blocks that should be added to the blockchain. The strategic function of miners is to participate in the monetization and development of the blockchain.

FCE Node - A computer included in the worldwide network as a server with specialized FCE software that participates in the formation of blocks for the FCE blockchain. In the context of computer networks, a node is a network node, i.e. digital electronic device having an address in a computer network.

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Transaction pool - the repository to which the created transactions are sent pending their processing.

Smart Contract - A special type of application that runs inside the blockchain and allows you to store data in blocks of the blockchain. The execution of smartcontract functions always occurs when a block containing a smartcontract transaction is added to the blockchain. Each smart contract instance has its own copy of the data. At the same time, the functions that change the smart contract data, in fact, simply write a new version of the data to another blockchain block, which allows you to have the entire data change history for each smart contract instance.

Transactions - Objects that contain information about arbitrary blockchain attributes changes (financial assets and data constituting smart contracts). Transactions comprise the filling of blocks in the blockchain. A block can have zero to hundreds of transactions.

Hash - a cryptographic code calculated on an arbitrary data set. Identical data should produce the same hashes, differing data should produce different hashes. Data recovery from the existing hash is impossible, even if the hash calculation algorithm is known. Thus, comparing hashes it can be concluded that data is different for which they are calculated.

FC ecosystem - ref. FCE.

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