CyberMiles the blockchain for Smart Business Contracts

At CyberMiles, we’re not reinventing the wheel in software engineering. In fact, we believe the best software engineering is done via collaboration between expert teams, much like blockchain consensus itself. That’s why our developers participate in and contribute to other open-source blockchain projects such as Ethereum and Cosmos. The CyberMiles blockchain will be built on existing, proven open source frameworks. Contributing to those open source projects we depend on is not only our responsibility but also critical to the quality and success of our own CyberMiles blockchain.

CyberMiles The next generation blockchain for e-commerce

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1. What Is CyberMiles?

CyberMiles Foundation Limited, is a company limited by guarantee to be incorporated in Hong Kong and governed in a not-for-profit manner. It will work closely with 5miles LLC (“5miles”), with the aim of developing CyberMiles: a next-generation blockchain optimized for e-commerce and designed for mainstream adoption.

By focusing on e-commerce and online marketplaces, CyberMiles will integrate the latest blockchain innovations to power “Smart Business Contracts” on a highly effective chain, and resolve the latency issues associated with existing, general-use blockchains. Its utility token, CyberMiles Token, is planned to be a “master token” to fund & empower new e-commerce applications and projects, similar to how ETH is used for the current generation of ICOs.

Throughout the network development, CyberMiles Foundation will be assisting the governance of the decentralized platform, with strong involvement by members of the ecosystem. Our vision for the future is a public network that provides secure and trusted business services for its members, by its members.

5miles plans to gradually migrate its sellers and buyers, as the first group of users, onto the decentralized network. In other words, 5miles’s marketplace platform will be one of the first environments to utilize the network as a back-end service and jumpstart the ecosystem. Once the network reaches a critical mass, its own network effects, strengthened by incentives provided by the CyberMiles Token (“CMT”), are expected to be applied to other partner platforms and marketplaces, driving CyberMiles’ development as a market-leading blockchain protocol for commercial and marketplace applications.

2. Highlights of CyberMiles

High performance: It is fully compatible with Ethereum and can run all Ethereum smart contracts and Dapps. Yet it is 100 times faster than Ethereum in terms of transaction per second (TPS).

More secure: It is safer than Ethereum. The CyberMiles blockchain proactively stops common smart contract bugs that had caused loss of fund on Ethereum. And if a loss of fund still occurs, CyberMiles supports an on-chain governance process to transparently recover the fund through community consensus.

Low or no cost: It is more user-friendly and cheaper to use than Ethereum. The CyberMiles blockchain waives transaction fees for most common operations. It achieves this without sacrificing security of the network.

3. CyberMiles Background

CyberMiles is the blockchain technology being developed by CyberMiles Foundation, a blockchain research laboratory working closely with 5miles. 5miles was formed in 2014 by a world-class team from China and the US. Since its inception, 5miles has since raised approximately USD 62 million from top-tier investment firms such as SIG, IDG, Morningside, and Blue Lake. Since the launch of its app in 2015, 5miles has already established itself as a Top 10 shopping app, with more than 12 million users and USD 3 billion in annual transaction value. Its founding CEO, Dr. Lucas Lu, was previously a co-founder and CTO of Light In the Box, a company which went public on the NYSE. Before that, Lucas was the first GM of Alibaba’s Taobao Mobile platform.

5miles proposes to be the initial ecosystem to apply real-world applications of the blockchain solutions that the Foundation is developing. CyberMiles is the blockchain protocol that will underpin these solutions, and CMT aims to be the fuel for transactions, and serve to incentivize participants in the ecosystem.

The CyberMiles Blockchain Protocol and CyberMiles Token

CyberMiles is a new blockchain protocol being developed and specifically designed and optimized for business and marketplace applications. The protocol will consist of a blockchain based “virtual machine” and defined modules of middleware software stacks, which operate outside the chain to support decentralized processes governed by smart contracts implemented on the network.

CMT is the native crypto token currency being created to be integrated with and used on the CyberMiles network, and on decentralized applications on the network.

Initially, CMT is proposed to be issued and implemented on the public Ethereum blockchain as an ERC-20 compliant token. 5miles will integrate its existing “wallet” function to hold CMT balances, and allow users to utilize the tokens on the 5miles platform shortly after the tokens are activated. The CyberMiles protocol is being developed for implementation on its own open source blockchain. In this scenario, the initial CMT based on ERC-20 would be exchanged on a 1:1 basis with native CMT issued on CyberMiles’ blockchain, with any stored value & rights transferred to the native token.

Our aim is for CMT to serve the following purposes:

+ To reward and incentivize community members to contribute computing power and maintain the integrity of the network. Examples of such services could include running network nodes, validating transactions, and executing smart business contracts. When e-commerce market participants, such as sellers, buyers, and marketplace makers, utilize the network services, they would provide CMTs to network maintainers.

+ To incentivize community members to provide value-add services, such as peer-to-peer customer support and conflict resolution services. The service provider could receive CMT from other members in the community after a consensus is reached.

+ To facilitate transactions within the network. Processes and interactions throughout the supply chain, as well as between buyers and sellers, could be recorded and facilitated by CMT. That allows for decentralized settlement and could potentially greatly reduce the cost of transactions and friction on the network. The network would extract a transaction fee to pay validators who execute smart business contracts associated with the transaction.

In order to create the CyberMiles e-commerce ecosystem, substantive research and development into blockchain technology itself is needed. Already, 5miles has developed a novel blockchain protocol to support complex business transactions, known as ”smart business contracts”, in blockchain networks, with CMT to be the native token for this new blockchain protocol. This new blockchain protocol is further detailed in the CyberMiles Technical Whitepaper available at ( https://cm.5miles.com/file/Technical%20White%20Paper.pdf ).
Interested technical readers are encouraged to read further, and join the open source development community for CyberMiles.

4. Economic Of CyberMiles

At CyberMiles, our mission is to build a decentralized ecosystem for e-commerce. Much of this work is to design and implement an economic system. The network must be able to attract a diverse group of participants to share resources in order to truly achieve network effect. Core to the CyberMiles design is economic incentives provided by the CyberMiles Token (CMT).

4.1 The CyberMiles Token (CMT)

Like Bitcoin (BTC) and Ether (ETH), the primary purpose of the CMT is to incentivize people to work together to maintain the CyberMiles network. It is a utility token that pays for participants’ services to the network, like BTC and ETH. In order to earn CMTs, network participants (known as validators) will need to:

+ Maintain an immutable and agreed upon record of every transaction on the network. In the context of e-commerce, this includes all purchases, loans, payments, credit history etc. Of course, all information is anonymous, secure, and encrypted on the blockchain. This allows all e-commerce companies on the CyberMiles network to share access to buyers and sellers, and create a large network effect;

+ Execute Smart Business Contracts on the network. Those contracts are software applications that automatically determines who should pay who at what time. Examples include escrow accounts, loan repayment plans and insurance plans etc.

The CMT is directly comparable to the ETH as the primary functions of the ETH are the same as the above. However, compared with the Ethereum blockchain, the CyberMiles blockchain is optimized specifically for e-commerce applications.

Being optimized for e-commerce, the CMT has a secondary function to settle commerce transactions like the XRP on Ripple network does.

4.2 CMT as a base token

All CMT holders can participate in network governance and maintenance by delegating his or her tokens to “validators” on the network. The validators are professional network operators who compete for the privilege of validating transactions on the CyberMiles network (and hence maintaining its integrity). In return, the validators receive newly “minted” CMTs via our 8% annual inflation and also receive transaction fees for Smart Business Contracts they execute. The validators typically split earnings with his or her delegators. The algorithm to select validators is public and built into the blockchain protocol, and cannot be tempered with by human operators — it ensures the diversity of validators and prevents centralization of power.

Through the above mechanism, the CMT holders are incentivized to delegate and stake the tokens to earn more CMTs from validator operations. This consensus mechanism, known as Delegated Proof of Stake (DPoS) aligns the interests of all participants to ensure the integrity of the network.

While the CMT is a fundamental utility token to the CyberMiles network, the blockchain’s ability to execute Smart Business Contracts allows e-commerce businesses on the CyberMiles network to issue new tokens on the basis of CMT — similar to ERC20 tokens can be issued by Ethereum smart contracts on ETH. Those new CMT-based tokens no longer need to shoulder the responsibility of network integrity. They can be tailored to address e-commerce application needs. Examples include loyalty points programs, in-app tokens for purchasing services, supply chain settlement tokens or product tracking tokens etc.

5. CyberMiles Token

5.1 CMT Token Issuance

The CyberMiles Foundation proposes to initially generate and issue 1 billion CMT, however over time, this may expand and be capped at 10 billion CMT. Further information about when and to whom CMT are proposed to be allocated can be found below.

Upon the completion of the proposed CyberMiles token contribution (“Token Contribution”)
for 700 million CMT, there will be a total of 1 billion CMT in circulation.

Token Contribution is proposed to launch soon after incorporation of the CyberMiles Foundation. For further information and updates regarding the Token Contribution, prospective participants are invited to provide their email address at http://cm.5miles.com. Further updates and announcements regarding the timing and the details of the Token Contribution will be communicated through the website.

5.2 Use of Token Contribution proceeds

The proceeds raised from the initial Token Contribution are intended be used for the following purposes:
+ Fund the development and establishment of the CyberMiles blockchain protocol;
+ Marketing and operating expenses related to the expansion and migration of 5miles’s platform to the CyberMiles’ blockchain network. Arrangements with 5miles and the CyberMiles Foundation will be at arms length; and
+ Research and development costs incurred by the CyberMiles Foundation in developing the CyberMiles platform.

5.3 Allocation of CMT

In addition to the hard cap of 700 million tokens to be issued for the Token Contribution, it is proposed that another 100 million tokens will be pre-allocated to 5miles, in consideration for its role in establishing the CyberMiles platform and developing the initial ecosystem for CMT. This will be a key component of a strategic partnership in which 5miles contributes its brand, technology, and integration of its 10+ million registered users with CyberMiles and CMT. A further 100 million tokens will be pre-allocated to the CyberMiles team & partners, for developing the technology & operating the Foundation. The token allocation for both 5miles and for the CyberMiles team and partners will be subject to a long-term (2.5-year) vesting period.

A further 100 million CMT are proposed to be held in reserve for future release by the Foundation to end-users, to jumpstart the use of the CyberMiles applications and to encourage participation in the ecosystem. The CMT to be distributed is intended spur adoption of various CyberMiles processes and applications (such as voting on dispute resolution, setting up CyberMiles wallets, etc.), and completion of Smart Contracts on the CyberMiles chain.

5.4 Token Supply Schedule

As transactions occur on the CyberMiles chain and Smart Business Contracts are executed, the transactions will be processed and validated through a delegated-PoS (“D-PoS”) consensus engine system, and will result in newly minted tokens to incentivize & compensate the network participants. The mechanisms for the D-PoS engine are in-development, but the CyberMiles Foundation will target an eight-percent (8%) compounded annual increase in the total number of tokens, from the close of the Token Contribution Event, until the 10th year anniversary. Upon the 10th anniversary of the Token Contribution Event, the Foundation will decide, based on the development of the CyberMiles ecosystem and with input from the community, on the targeted growth in the token supply for subsequent years. Regardless, the Foundation is proposing a long-term cap of 10 billion tokens as the maximum number of CMT tokens that can be issued and circulated.

5.5 Inflation Schedule

As discussed above, the delegated-PoS (Proof of Stake) mechanisms will be developed to effect the targeted outcome of 8% annual increase in total number of tokens, until the 10th anniversary of the close of the Token Contribution Event. Below is the targeted inflation schedule for the active supply of tokens: