Structure of Nous Ecosystem

The technical specifications of the system and its functionality are to provided in a separate document, which is incorporated here by reference. Core components of the Nousplatform technology are as follows:
System’s Components Interaction Scheme

Nousprotocol

The Nousprotocol has been published as an open source code and licensed under GNU Lesser General Public License v3.0  Anyone can utilize the Nousprotocol to create a new fund. Initially, we propose to work on the JavaScript programming language platform. We anticipate rolling out additional popular programming languages.

Nous Smart Contract 

The Nous Smart Contract protocol is also published as an open source code, and licensed under GNU Lesser General Public License v3.0. The Nous smart contract is anticipated to employ verification functions within the fund’s contract, such as: verification of the asset ownership, records of balances of the investment portfolio, identification of the fund managers, estimating the level of trust, adding third-party escrow services and much more.

Smart Contract of the Fund  

Our Smart Fund Contract was created and published dynamically by Nousprotocol. Its main function will be managing the fund, such as equity participation, equity shares acquisition and redemption, and distribution of tokens among investors.

Nous Wallet

The Nous Wallet is an open source code that is used to store Nous tokens. Any holder of a Nous Wallet will be able to make a payment or invest Nous tokens in any of the funds on the Nousplatform system.

Marketplace 

Nousplatform is the system which allows for collaboration between investment funds and their potential and existing investors. Nousplatform includes a personal back office, statistical reporting, wallet function, and lists of funds and their ratings. For investors, the Nousplatform is a turnkey solution for managing assets invested in Nousplatform-registered funds.

Tokenization of Assets 

Asset tokenization involves issuance of tokens that represent commodities, assets, products or services provided by a company in order to operate in the blockchain domain. Nousplatform seeks to provide the opportunity to any existing company to tokenize its assets in order to raise capital, as well as to help promising startups raise seed and growth capital.

Types of Tokens 

In general, there are two types of tokens: security tokens and utility tokens. Security tokens are used by companies to raise money and are regulated by government oversight. The company issuing security tokens must follow laws, rules and regulations in order to be compliant. Security tokens are most easily compared to equity stakes, similar to a company’s shares of stock.

Utility tokens, on the other hand, are not designed to be used for future developments of the issuer’s products, goods or services. Rather, they can be used as a medium of exchange for the existing products, goods or services.

Compliance for Tokenization System 

For the purpose of assets tokenization for company “ABC, Inc.”, Nousplatform organizes a specialized investment vehicle called Cyprus International Fund (CIF) and hires a trusted, licensed and regulated company to manage CIF.

If ABC, Inc. desires to tokenize 30% of its existing assets, it would take the following actions:

-Step one: CIF’s managing company creates new legal entity, that will issue tokens (Token Issuing Entity, or TIE). 100% of TIE is held by the CIF.

-Step two: ABC, Inc. transfers thirty percent (30%) of its assets to TIE

-Step three: TIE then issues new tokens on Nousplatform. New tokens are sold to investors as part of the sale offering. All new Nousplatform investors thereby become passthrough shareholders of ABC, Inc. by virtue of holding tokens of CIF, which owns 100% of TIE, which owns 30% of ABC, Inc.

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. Description of Nousprotocol

Closed-ended Investment Fund

By contrast, closed-ended funds raise capital only once. After raising the capital, the fund issues a fixed amount of tokens, which are distributed among investors pro rata based on the amount they have invested. After capital formation and collection of investors’ assets, the fund would then be listed on one or more exchanges and its tokens would trade as an exchange traded fund. The fund pays dividends to its token holders based on profitability over a pre-described period. We anticipate that the Nousplatform will enable a closed-ended fund (i) to introduce its concept to investors, who are already utilizing the platform, and potentially (ii) raise initial capital by conducting an ICO. We anticipate that this approach will allow the closed-ended fund to attract new investors, which may increase the chance for successful fundraising. As for investors, they will have the opportunity to diversify their portfolio of close-ended funds.


Venture Capital Fund 2.0

We are also building Nousplatform to enable investors to create venture capital funds, which in turn invest capital into start-ups and growth stage business. These fund structures will be distinct from the open-ended and closed-ended funds because we anticipate that they utilize an open voting system to allow fund investors to decide whether to invest in a particular start-up venture. Each investor who holds equity shares of the fund is anticipated to have a pro-rata vote. These funds have a unique ecosystem, which is why we call them advanced second-generation funds.


Charity Funds

Nousplatform enables users to create not only investment funds, but also Charity Funds. The main advantage of a charitable organization based on blockchain is its transparency and accountability to its donors. Nousprotocol is anticipated to enable the monitoring of the activities of the charitable foundation. There is open access of the information on how and what type of charitable assistance is being provided, and how much is spent on operational expenses. A charity fund is able to accept donations from all over the world without restrictions. Any token holder can donate to any fund anywhere in the world.


Family Trust Fund
Family trusts are a very popular form of capital preservation and investment. Trusts are established when the asset holder (grantor) contributes assets (res) to a legal holding entity (trust) and appoints a manager (trustee). This family trust is an entirely private entity and the public does not have any access to any details of this structure or its holdings. Via the Nousplatform, family trusts would have the ability to allow voting by beneficiaries of the trust to approve investments of the res or to release assets from the trust. The trust fund may even consist of a structure with a single beneficiary, who nonetheless can manage the assets and enjoy all the advantages of the Nousplatform, or a more complex structure with multiple generations of beneficiaries of a larger estate.

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Nousplatform Solution for Fund Manage

Fund managers operating on our platform will receive a complete set of technology tools for managing their funds and interacting with investors. The main aspects of fund operations are controlled through open source smart contracts, which fosters improved transparency and makes the fund more trustworthy and attractive to the investor. Investment transactions are carried out according to smart contracts that regulate and control the acquisition or sale of equity shares utilizing our utility tokens, the “NSU”. Every time a new fund is established on our platform, a new smart contract will be instituted and published by the Nousprotocol on the blockchain. We anticipate that this smart contract will contain the specific terms, conditions and features of the fund. Each smart contract will have two types of parameters: constant (unchangeable, permanent) and variable (can be changed or modified). Constant parameters, such as creation date of the fund, the initial capitalization, the founders, etc., are final and cannot be altered after the publication of the smart contract. By contrast, variable parameters, such as the investment maturity timeframe and the assignment of the manager, can be modified by utilizing a private key. In this latter case, the new rules will only apply to new investors, since it will be physically impossible to make any changes retroactively.

 Advantages of Nousplatform for Investors 

By using the Nousplatform, an investor will be able to invest in any resident fund at any time by purchasing equity shares with NSU utility tokens (based on the ERC20 standard and, after listing, available for purchase at one or more cryptocurrency exchanges). As of this writing, the ERC20 token standard has the advantages associated with leading cryptocurrency Ethereum, such as using a single wallet for all ERC20 tokens. If an investor wants to liquidate all or some of the equity shares of funds he or she holds, the investor would receive NSU at the then current exchange rate at the time of the transaction. We propose that an investor on the Nousplatform will be able to choose from multiple funds with differentiated portfolios to diversify risks. He/she will be able to decide whether to participate in a given fund based on research of the fund's statistics recorded on the blockchain, which offers transparent, unaltered real data. The Nousprotocol creates snapshots of the investment portfolio of each fund with a specified period, and logs them in the blockchain. Statistics available for review and analysis at any time in a personal back office and the smart contract open source code is available for the public to review. 

An investor can analyze the activity of any fund in his/her back office. The statistical data of a fund based on snapshots shows the fund's economic profile at any given period. In addition, it reveals the redemption and acquisition of assets, and any other modification of the portfolio, as well as the liquidity index, the number of tokens in reserve, the fund's own capital in relation to the total portfolio, and so on.  

The Nousplatform will provide tools for analyzing and evaluating funds based on various statistical data. These reports will be available for any user to review. The main advantages for investors are simplicity, transparency, the ability to diversify, quick deposit or withdrawal of funds, no bureaucracy, set rules of participation for all the parties involved, no minimum amount entry requirements, and unaltered and accurate data. In the near future, we plan to create a merchant portal for the Nousplatform, which will allow investors to pay for goods and services using their equity shares, assuming those assets are always under management of the same entity and utilized only when necessary. This approach, in our opinion, should lead to a new kind of relationship between the buyer and the seller, where money, as we know it, will no longer be needed; we anticipate that the economy will shift toward tokenized barter.

Type of Funds Supported

At our first stage of development, the Nousplatform will support five types of funds:

1. Open-ended Investment Funds

2. Closed-ended Investment Funds

3. Venture Capital Funds

4. Charitable Funds

5. Family Trust Funds

Open-ended Investment Fund

Open-ended investment funds enable Investors to acquire or sell equity shares directly from the fund. Within our platform, Investors will initially transfer their assets in the form of Nous Tokens directly to the fund. The fund in return will assign tokenized equity shares to the investor. The investor can sell these shares back to the Fund at any time for the market value of the shares, based on the fund’s performance. This approach allows the fund constantly to increase liquidity, and allows the investor to liquidate the shares at any time. The fund typically charges Investors trading fees for the acquisition and disposition of the equity shares and may charge performance fees.

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Fragmenting the Identification Process

Building on the previous identification process, the same mapping functions can be achieved without the party disclosing any non-relevant data to a counterparty - by delegating the mapping functions to unrelated third-party Validators. The statement, supporting evidence and functions, would first have to be fragmented in such a way that third-party validators would be confirming fragments of data that, on their own, cannot be used by any malicious third party. However, together, the sum of confirmations would constitute a complete identification process.

 The IAME Identification Network

The proposed IAME Identification Network would have a core that consists of 

1) a client, 

2) an allocation server, 

3) a validation server, 

4) a writeable blockchain, and 

5) an identity server. Each component would carry out specific functions that can be demonstrated in 2 processes - a validation process, and an identification process.

The validation process would be the operation through which the client would have her/his information validated by third-party validators. The process is as shown below: 

-Upon request, statements and their corresponding supporting information would be fragmented at the client level and encrypted into validation packets to be sent to the allocation server.

-The allocation server would control the random allocation of validation packets to third-party validators, who would return the result of their validations to the validation server.

-Once the above is completed, the validation server would evaluate the validations from the third-party validators, and hash numeric or boolean confirmations paired to specific statements on a designated writeable blockchain.

Identification Process

For a counterparty to transact with a client, an identification process has to be completed. This process is based on the counterparty’s own specific requirements.

-Assuming that the counterparty requires Data 1,2,.. n to be validated for a specific transaction with a party, the counterparty sends a request to the Identity Server for the validation status of Data 1,2,.. n.

-The Identity Server reads the blockchain for validation status of Data 1,2,..n for the party, and returns the validation data to the counterparty, and from thereon the counterparty can complete the transaction.

Third Party Validation

Pursuant to the concept of the IAME fragmented identification system, there is a requirement for a system of decentralised third-party validators under the rational that an identification validation conducted by a multitude of third-party validators is more dependable and less susceptible to the risk of fraud than an identification validation conducted by a single institution or party. However, having a system that runs on a for-profit basis, where the third party is “paid” to validate information, creates a natural tendency for participants to game the system and collectively approve a validation process to receive a payout. The solution we propose is a symmetric game model that will encourage truthful validation that is analogous to the Byzantine Fault Tolerance - the Trial Algorithm.

Aspects of the Trial Algorithm:

1. Each statement and their corresponding supporting information are processed as fragments ( “Evidence” ).

2. Evidence is validated not by single third-party validators ( “Jury” ), but by a Jury (a “Tribunal” ).

3. Each jury validates in a designated method on whether the Evidence matches the statements.

4. The Tribunal validations are counted and a majority rule consensus is reached.

5. If there is a non-majority consensus on an evidence, the evidence is sent through a second tribunal ( “Appeal” ).

6. . If the appeal jury votes to a majority consensus identical to the initial tribunal,the decision is upheld, or else the initial tribunal decision is rejected.

The purpose of the trial algorithm is to support truthful validation and, most importantly, genuine dissent in the event a significant portion of the third-party validators are corrupted in their validation mechanism. In the proposed technical implementation, it is intended that the third-party validators are blindly assigned tribunals, appeals, and control tribunals( “Control Tribunal” ). Control tribunals are an allocation of non-matching statements to evidence, and to third-party validators, such that the third-party validators are randomly subjected to double blind procedures.

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The IAM Token

To operate the IAME Identification Network, a functional token will be issued, known as the IAM Token, which would operate as a validation token to initiate confirmation requests for validation packets on the IAME Identification Network. Parties would spend the token through the IAME Identification Network client and after deduction of equivalent blockchain hashing costs, the balance of IAM token would be paid out as reward to third-party validators who operate the validation processes on a for-profit basis.

This would attribute not a store of value to the token but a market value based on natural demand and supply for identification processes. The value of the IAM Token would be, in essence, determined by 2 factors:
1. The cost of validation, which would be proportional to the financial cost of hashing the requested amount of data on the designated blockchain, setting a price floor for the token.
2. Market demand, which would be proportional to the demand for blockchain identification based on the IAME Identification Network.

Because of the the ephemeral aspect of data validation in the field of identification, market demand would remain recurring and would only increase with an increased adoption of the IAME Identification Network.

Reward and Ranking Mechanism

As a continuation to the Trial Algorithm, there is a need for a reward and a ranking mechanism in such a way that good third-party validators are rewarded and bad third-party validators penalized.

For this mechanism, two reward systems are proposed: a token reward system and a node ranking system.

-The token reward system allocates a pool of IAM Tokens to the third-party validators for completing the fragmented validation process akin to mining.

-The ranking system attributes an internal ranking system to third-party validators within the IAME Identification Network, such that higher ranked validators receive a higher proportion of the tokens, which is indicative of their ranks.

In principle, the determination of the allocation of any IAM token pool would be a function of the outcome of the Tribunal, while the ranking system would be a function of the outcomes of the Appeal and the Control Tribunal. Due to the application of a double blind procedure, the third-party validators would not be at any time aware of whether they are in a Tribunal, an Appeal, or a Control Tribunal - further reducing any risk of gaming the system. Third-party validation would be open to the public and, in the long-run, poorly ranked third-party validators would be banned from acting as nodes.

An Identification System for Blockchain P2P Transaction

-With a functional IAME Identification Network, the primary application would be the facilitation of blockchain P2P transaction, such as online merchant transactions. Taking into consideration a simple online purchase where a customer purchases a physical good from an online merchant with Cryptocurrencies, the amount of personal data that is communicated from the customer to the merchant can be segregated into two categories: essential to the transaction and non-essential to the transaction.

1.Essential information would be a name and an address without which the transaction and the delivery of the good cannot occur

2.Non-essential information would include, for example, an identity document to prove the name of the customer, a utility bill to prove that the address belongs to the customer, and the specific date of birth of the customer.

The logic behind the conveyance of non-essential information is based out of regulatory need. But with an alternative identification system, the same goal can be achieved without disseminating the non-essential information, decreasing security risks for the customer and decreasing the burden of security breaches for the merchant. In the P2P scenario, the merchant would consult the public repository of the IAME Identification network to verify whether non-essential information associated with the customer’s blockchain address has been undertaken on the identification network. This could be either out of a regulatory basis or for her/his own comfort level.

 A Platform for Financial Institutions

As the regulatory classification of Cryptocurrencies converges towards currencies, securities, and/or software, there will be a need for some form of anti-money laundering procedures to be applied, which can trace the source of the Cryptocurrencies - up to a level that can ascertain that they are not from the proceeds of criminal activities. The use of public ledgers, though being able to create an electronic trail up to the mining/creation of Cryptocurrencies, does not identify the transitory wallets through which the Cryptocurrencies have been. As an extension of the IAME Network and its public repository, the identification system would be used in the construction of identified topological spaces that would provide financial institutions with the tools to identify, to the nth degree, the origin of the Cryptocurrencies they are handling.

The creation of a partially meshed system would provide financial institutions handling Cryptocurrencies a level of comfort, to the nth level, on the source of Cryptocurrencies, which would still constitute a more efficient anti-money laundering tool than current procedures for Cryptocurrencies.

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SwitchX(SprintX)

SwitchX will be the first Exchange oriented to adapt the blockchain functionalities. It will be able to unite the virtual and real world bringing the blockchain technology closer to the business needs and the new demands of cryptocurrency users. It’s about an advanced, safe, and democratic environment.

Some of the SwitchX characteristics are:
-Exchange.
-Debit Card Service.
-Assimilation to Airdrop.
-Adaptability to Forks.
-Hot and Cold Wallets.

Current Exchange status

Currently obtaining cryptocurrency, mainly Bitcoin or Ethereum, is done using an existing Exchange. An Exchange of cryptocurrencies is a web site dedicated to the exchange of cryptocurrencies directly or indirectly using a FIAT currency. The user who wants to obtain the cryptocurrencies enters in any Exchange using a real-world paid system that normally is a debit/credit card or a bank transfer. This transfer arrives to the Exchange parent account and once the amount received is verified, it is converted manually to the requested cryptocurrencies.

The Benefits of the operation is based on the use of commissions associated with each transaction. These commissions, as can be seen in other Exchanges, usually go from 0.10% to 0.25%. There are differents Exchange that base their business model on cryptocurrency trading, based on the rotation of the values using Bitcoin. The majority of Exchange have the politic based on the use of fictitious accounts and the reflections of the balances of the user from the calculation of the operation carried out with cryptocurrency. Also, the price of the cryptocurrencies generally it is usually adjusted and always has a margin used by the Exchange to obtain small profits on the sale of cryptocurrency. Although, the sale is fictitious. 

SwitchX’s future for the Exchange

At present, the type of cryptocurrency exchange systems has worked well and has marked the beginning of this service; However, its current characteristics and form of operation will be insufficient for 2018. Above all, because they have started from mechanisms of the real banking world to try to support the world of cryptocurrency. The new generation of Exchange will be supported by a new set of products/ services linked to blockchain with Smart Contracts, so they are accessible to any company or service provider, such as lawyers, service companies, supply chain, etc. This functionality is not currently available in any Exchange and will become required in the future due to how frequent this type of operations will become.

SwitchX will be the first product of a new generation of Exchange, which will integrate naturally and inclusively the real world and the virtual world. It will offer services adapted to the world of cryptocurrency and will seek maximum profitability for all its owners.

Switchx will be differentiated from the other Exchange in the following aspects:

⠂ Provide any user with a virtual debit card associated with the funds in their accounts, which will allow payments to be made directly using the funds of the Exchange immediately.

⠂Users will be provided with the necessary cryptocurrency accounts they need, and the possibility of providing them with cold and hot wallets.

⠂SwitchX will provide users with a virtual card that will allow payments to be made at any trade or website using Exchange funds. It will not be necessary to use other intermediaries to be able to use the money managed in the Exchange.

⠂A set of simple, powerful and accessible tools will be provided to companies or individuals without programming knowledge that allows to deploy Smart Contracts instantaneously on various types of blockchain (particularly Ethereum).

⠂Active support to all airdrops, be they Bitcoin or other cryptocurrencies that use the Bitcoin blockchain. The user will not have to request it, SwitchX will provide it when they occur.

SwitchX as an SRO

SwitchX will become a Self Regulated Organization (SRO) and will achieve a License with the following features:
1. Manage assets on behalf of customers (discretionary or nondiscretionary basis).
2. Accept or hold on deposit assets belonging to others and assist in the investment or transfer of such assets
3. Trade in securities (stocks and shares and value rights) as well as their derivatives, banknotes and coins, money market instruments, precious metals, commodities.
4. Open FX, CFD and commodity trading accounts for customers.
5. ICO allocations, Crypto Currencies trading and changing.
6. Carry out credit transactions (in particular about consumer loans or mortgages, factoring, commercial financing or financial leasing).
7. Provide services related to payment transactions, in particular by carrying out electronic transfers on behalf of other persons, or who issues or manage means of payment such as credit cards and travellers’ cheques (to use the firm for this will require significant additional costs, time and investment).
8. Make investments as investment advisers
9. Hold securities on deposit or manage securities.
10. Provides bank account signatory services for clients world wide.
11. Open bank/investment accounts for clients at banks without the need for a bank reference letter.
12. Open numbered bank & investment accounts for clients at select Swiss and Liechtenstein banks.

SwitchX APP

The SwitchX application makes it safe to store and use your digital coins and use them at any time with our debit card. You will be able to use the blockchain functionalities from the comfort of your mobile phone. It allows you to convert and spend your assets at ease, either locally or when you are abroad.

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NOVA’s partnership with Sprintx

NOVA’s partnership with Sprintx

The idea of Startup incubators as such has inspired us to search for partnerships with organizations that help Entrepreneurs and coach Startups so we can also bring the many benefits that the Blockchain and Smart Contracts technology allow for business ideas to them. A place where the virtual world of crypto can meet the real world of business and join efforts in creating products and services that benefit people and businesses alike. Our team has loyally carried this vision to find such place and this is how a partnership with Fundación NOVA was born as a key pillar for our project.

We understand that partnering with an organization that aims to support innovation and ideas and help Startups grow is the best strategy to achieve profitability and commercial success for the company and all of its future ICOs to be launched via the SprintX platform. Fundación NOVA is a pioneer in the LATAM region looking to expand the reach of technology and its benefits to people. Families that benefit from economic growth made possible by innovation and talent is the main target for NOVA and we share their same values and ideals.They have identified the tremendous potential for entrepreneurial-driven development of the region focusing on countries such as El Salvador, Peru and Mexico while possessing the necessary infrastructure to provide a much-needed helping hand to an oftentimes overlooked market.

 About Fundación NOVA.

Helping Startups succeed in developing countries and regions where economic growth and technological lifestyle improvements have not reached their full potential yet, is the main purpose of Fundación NOVA. Each Startup incubated with the Fundación NOVA process has allowed to develop their product or service with two principal objectives:
-Benefit people and families alike
-Maintain a profitable and innovative business model for the continuation of their company.

They have infrastructure in place for a highly effective process starting from the selection of the Startups to the assistance with the testing and deployment of their product or service inside an actual Smart City that will work as a Sandbox.

 NOVA Academy

Nova Academy will be an educational program oriented to technology and innovation in the categories of FinTech, Internet of Things (IoT), Apps, 3D Printing, Robotics and Ed tech. Its purpose will be to educate all the people of the community regarding the use of technology and its applications. Because El Salvador is a developing country, many people have not yet adopted the technological resources available worldwide nor their uses and applications. Nova Academy will cultivate a great desire in people to learn more about technology (especially blockchain technology) and that each person can obtain a world-class education regarding the advances that are being developed. Through the academy, people will be inspired to be responsible for solving social problems.

Break The Seven

As described by their creators: BT7 (Break The Seven) is a Digital Festival that intends to ¨break¨ seven elements:

-Process.

-Content.

-Metrics.

-Code.

-Algorithm.

-System, and the Web.

This is a unique tool with which NOVA begins the Startup Selection process from the teams that participate in the Start It Up challenge and is selected by a panel of expert entrepreneurial minds that seek for projects with the potential to become solutions for multiple aspects of people’s lives via the use of technology.

NOVA Incubator

Through Nova Incubator, projects that are in early stages will be searched. They will have a period of 16 weeks to move to a new stage of development in their product. They are given the financing and through phases their performance is measured. At the end of the 16 weeks, they have to have a marketing plan and future customers who can invest in their product. Nova Incubator is responsible for bringing together investors who hear the idea of the startup and thus obtain funds to cover operating expenses in the coming months in which their product can be sold to the public.

NOVA Campus

The future plans of SprintX to become a platform to launch ICOs to open the cryptocurrency market to new ideas and Entrepreneurs integrate very well with the purpose of NOVA to expand their support for Startups and enable positive Entrepreneurial-driven change that benefits communities and families in places where economic growth is needed. For this reason, our combined efforts will lay the foundation for building the First Ever Smart City in the LATAM region, specifically in Central America, El Salvador. In the heart of a small town called Ahuachapán. This location has access to low cost electricity generated from geothermal power. The community grows and consumes its own organic fruits and vegetables. It is a place filled with commerce and economic growth but that still holds its original arts and culture and has tremendous potential to be tapped. Our Smart City will bring select Startup initiatives and their teams to one place. Where they can create products and services while testing them out and measure their success at all times.

People that will have access to technology like never before. Startups launched through our platform SprintX will have the chance to test and deploy their ideas there with the help of Fundación NOVA. Our Smart City will be managed by its own decision board to constantly look for new ideas that inspire and elevate the community for Startups. We introduce a new stage of support for Startups. We invite Entrepreneurs and Investors to join our vision and become key players in shaping the future for business and Startups.

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