PALLETONE

Protocol for Abstract-Level Ledger Ecosystem

Distributed Interchain Protocol

---IP Protocol of Blockchains

V 2.0Beta 2018 Mar.

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Contents
Abstract .................................................................................................................................... 4
Introduction ............................................................................................................................. 6
Challenges ......................................................................................................................... 6
Scalability ................................................................................................................. 6
Interoperability ........................................................................................................ 6
Not User Friendly .................................................................................................... 7
Platform Lock-in ..................................................................................................... 7
The Birth of PalletOne....................................................................................................... 7
Introduction to PalletOne ....................................................................................................... 7
SDK ................................................................................................................................... 9
PalletOne VM .................................................................................................................... 9
Token Abstract Layer ........................................................................................................ 9
Mediator .......................................................................................................................... 10
Jury .................................................................................................................................. 11
Distributed Storage .......................................................................................................... 11
Adaptor Layer.................................................................................................................. 13
PalletOne Protocol ................................................................................................................. 13
Template Deployment ..................................................................................................... 13
Contract Deployment....................................................................................................... 13
Contract Invocation ......................................................................................................... 14
Contract Query ................................................................................................................ 15
Contract Termination....................................................................................................... 16
Token Economy ..................................................................................................................... 18
Tokens’ use as payment of Deposit ................................................................................. 18
Tokens’ use as payment of Transaction Fee .................................................................... 18
Token as Juror Incentive ................................................................................................. 19
Tokens’ use as payment of Contract Deposit .................................................................. 19
Recap ............................................................................................................................... 19
PalletOne Attributes.............................................................................................................. 20
Multi-chain ...................................................................................................................... 20
Multi-task ........................................................................................................................ 20
Multi-language ................................................................................................................ 20
Multi-platform ................................................................................................................. 20
Security............................................................................................................................ 21
PalletOne Advantages ........................................................................................................... 21
High Capacity .................................................................................................................. 21
High Universality ............................................................................................................ 22
Safe and Smart Token Model .......................................................................................... 22
Healthy Ecosystem .......................................................................................................... 23
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Application Scenarios............................................................................................................ 23
Cross-chain Payment ....................................................................................................... 24
Financial Instrument ........................................................................................................ 24
Mutual Funds ......................................................................................................... 24
Exchange Trade Fund ........................................................................................... 24
Financial Derivatives Instrument......................................................................... 25
Support for Multiple Payment Types on Dapps .............................................................. 25
Core Team .............................................................................................................................. 26
Advisors .................................................................................................................................. 30
Time Line ............................................................................................................................... 31
Conclusion .............................................................................................................................. 33
STATEMENT ........................................................................................................................ 34
RISKS AND UNCERTAINTIES ......................................................................................... 35
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS ........................... 41
Appendix ................................................................................................................................ 44
Token issuance demo code .............................................................................................. 44
Glossary .................................................................................................................................. 46
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Abstract
Today’s blockchain encounters the following challenges: scalability and

interoperability etc. To address these challenges, we propose PalletOne, Protocol for

Abstract-Level Ledger Ecosystem.

PalletOne adopts Jury consensus mechanism which combines the whole network
consensus and part consensus to ensure the efficiency and safety of cross-chain smart
contract execution. Besides, Contract Template and Token Abstract Layer are
introduced to decrease the difficulty and complexity of contract development.
PalletOne makes inter-chain transactions possible by decoupling the state of contracts
from the blockchains. Developers can choose the language they are familiar with and
the platform they need. PalletOne interacts with mainstream underlying blockchains
and accomplishes interchain interaction.

In PalletOne, we only need a group of verifiers to execute one contract. This group of
verifiers is called Jury, which consists of individual verifiers called Jurors. Similar to
the IP protocol that separates the physical layer, data link layer from transport layer
and application layer, the PalletOne fully decouples the Dapp, contract status, and
underlying blockchain three-tier architecture.

PalletOne contract supports multiple blockchains. Through Jury Consensus and

Adaptor Layer, it is possible to build a contract that can interact with different
blockchains simultaneously, so users can trade tokens from different blockchains in
one PalletOne contract invocation to make the inter-chain token exchange distributed,
atomic, and immutable. The PalletOne contracts of inter-chain token exchange can be
executed in a multi-tasking way by different groups of selected Jury, which can
effectively reduce the congestion of the whole network compared with consensus
throughout the whole network. We plan to use PalletOne VM as the core technology
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to build the contract executable and execute the contracts, which makes the contract
execution more secure and developers can choose the language they are familiar with
and the platform they need. Token Abstract Layer and Contract Template ensure the
convenience and security of Dapp development further.
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Introduction
Blockchain technology is considered to be the core technology that has the most
potential to trigger the fifth round of disruptive revolution after steam engine,
electricity, information and Internet technology. Although blockchain technology is
likely to subvert many industries in the next 5-10 years, there are still some technical
challenges that restrict its large-scale deployment and application.

Challenges
Scalability

In order to build a distributed trustless network in which the tokens (values) flow, the
consensus that bitcoin and Ethereum adopt is reached by every node throughout the
network to guarantee the correctness, that is all the nodes execute the same procedure
in order to reach the consensus on the state. Based on this kind of consensus of entire

network, TPS（Transactions Per Second）of Bitcoin reaches only 7, In December

2017, Crypto Kitties severely slowed down the Ethereum transactions. These
phenomena reveal the problem of resorting to the consensus of the entire network.

Interoperability

Blockchains today such as Bitcoin or Ethereum are using full nodes as brute-forces
trust-machines. These full nodes verify transactions on their respective chain without
knowing anything outside their chains.

As a result, such a blockchain becomes a silo to itself, making the blockchain look
more like intranet today.
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Not User Friendly

In the current popular blockchains, there is not yet a blockchain platform, which can
meet different needs of developers and users in terms of ease of use, security and high
performance.

Platform Lock-in

Similar to the early stage of any computing technology, blockchains have critical

“platform lock-in”problems. Developers have to choose which blockchain to support

and implement platform-specific code, which makes it difficult to switch an

application to another blockchain later on. Developers don’t want to be locked into

working with a certain underlying blockchain . They need be free to evaluate, use, and
switch between options. Some applications may even need to run on multiple
platforms in order to provide the best user experience.

The Birth of PalletOne

Considering the challenges above, interchain interaction has become an important
issue in the development of blockchain technology. So we have put forward a
distributed interchain protocol -- PalletOne (Protocol for Abstract-Level Ledger
Ecosystem).

Introduction to PalletOne
PalletOne propose an effective way to address these challenges that include
scalability, interoperability, lacking of the user friendliness as well as platform lock-
in.
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PalletOne adopts Jury consensus, in which we only need a group of verifiers to
execute one contract. This group of verifiers is called Jury, which consists of
individual verifiers called Jurors. PalletOne decouples smart contracts from the
blockchains to accomplish interchain interaction. Mediator ensures PalletOne security
and it is the core component of PalletOne. As the core technology to build the contract
executable and execute the contracts. PalletOne make developers can choose the
language they are familiar with and the platform they need. Token Abstract Layer
defines the definition set and operation set of token, which improves security of token
definition in smart contract. The architecture and components of PalletOne is
illustrated as figure 1.

figure 1 PalletOne architecture

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SDK
PalletOne provides SDK (Software Development Kit) for each supported
programming language. Smart contract developers can quickly complete the
development of cross chain smart contracts based on SDK.

PalletOne VM
As the core technology to build the contract executable and execute the contracts,
PalletOne VM compile the contracts written in several programming languages into
bytecode that allows efficient execution on multiple platforms，which makes
PalletOne contract not only decoupled from the underlying blockchains, but also
decoupled from contract languages and execution platforms.

When the smart contract is deployed to PalletOne, it will run in the PalletOne VM.
PalletOne VM provides a sandbox environment for host safety and eliminates the
possibility of host or network attacks from malicious contracts.

Token Abstract Layer

The Token Abstract Layer defines the definition set and operation set of token which
may be issued by users on the Platform (although PalletOne will not be responsible
for issuing any such tokens), which decreases the difficulty and complexity of smart
contract development and increases the security of such smart contracts, while
expanding the range of possible digital assets or tokens which can be devleoped or
issued by users on the Platform.

PalletOne will initially include the following pass-through abstract models, which, for
the avoidance of doubt, will not be the PalletOne tokens (PTN) that are the native
tokens of the PalletOne platform:

(1) Full pre-excavation Token

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Similar to the token issued by Ethereum ERC20, users only need to specify the total
amount, accuracy, token name, and abbreviation at the time of issuing the token.
PalletOne generates and distributes the token at one time.

(2) Mining Token

Similar to Bitcoin's economic model, the user does not pre-excavate or not full pre-
excavate the token at the issue time, and the token will be generate by time or Unit
height.

(3) Fixed Deeds Token

Similar to the cash, the user can define 1, 2, 5, 10, 20, 50, 100 and other
denominations of the deeds, and once released, it is inseparable when the token is
used.

(4) Non-homogeneity Token

The above-mentioned tokens are homogenous, which means that there is no

difference between the 1 Token you have and the 1 token I have. In the real world,
there are also a large number of non-homogenized tokens. For example, after
tokenization of works of art (such as paintings and calligraphy), each token represents
a unique piece of art. This non-homogeneous certification was defined in Ethereum
ERC721. PalletOne natively supports non-homogeneous token.

Mediator
Mediator is responsible for the security of PalletOne. The character of Mediator looks
like a traditional blockchain, which is a trustworthy machine. So Mediator should
guarantee to make all decisions correctly. Mediator uses a Delegated Proof of
Stake(DPoS) mechanism to reach a consensus. To prevent Mediator from being the
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bottleneck of PalletOne, most of the work is only done by the Jury without invoking
Mediator.

Mediator takes the responsibility of the safety of PalletOne network. The following is
what Mediator does:

⚫ Maintaining PalletOne tokens, the native token of PalletOne, which is used for
transaction fee and maintenance fee.

⚫ Maintaining the deposit of Jurors.

⚫ Randomly selecting the Jurors in a Jury.

⚫ Arbitrating when Jurors cannot reach consensus.

Jury
Jury is the fundamental unit to maintain the security and integrity of PalletOne. More
specifically, it will be assigned to run contracts and manage multi-signature accounts.
To achieve a secure and decentralized design, Jury is designed to compose of many
participants, called Jurors. Every Juror pays a deposit to guarantee the security. Jurors
use BFT (Byzantine Fault Tolerance) algorithm to reach consensus.

Distributed Storage
Distributed storage infrastructure will be used to store contract ID, contract code and
selected jurors list involved in the execution of Mediator, as well as the contracts
states during contract execution of Jury.

In PalletOne, we use Directed Acyclic Graph (DAG) as our distributed database.

DAG has many advantages over traditional chained storage.
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First of all, there is no concept of a block in a DAG. All transactions are individually
encapsulated in a single structure called Unit, and the connections between the units
are established by reference.

Secondly, using DAG as distributed storage, transactions can be written in parallel. In

traditional blockchains, block is generated by miners, and miners need to select
transactions in the transaction pool based on priority and block size, and then
transactions are associated by the Merkle tree. Therefore, under the chained storage
structure, transactions that are not packaged into the block are all blocked, and
transactions packaged into the block are all in an unconfirmed state before the block is
broadcasted to the entire network. Compared with the chain storage structure, DAG
transactions can be written in real time in parallel to the entire ledger, thus ensuring
the speed of transaction confirmation.

Thirdly,in the DAG, by choosing the main chain, each transaction is in an orderly
state, which effectively solves the double spend problem.

Finally, with the traditional chained storage architecture, when the volume of
transactions continues to increase, there will be network congestion and long-term
transactions that cannot be confirmed. But in the DAG, the more nodes that
participate, the greater the volume of transactions, and the faster the confirmation of
the transaction, because the transactions are confirmed by the relationships that they
refer to each other.

In PalletOne distributed storage, the specific information that needs to be stored

mainly includes transaction information, contract ID, contract bytecode, contract
state, list of jurors corresponding to the contract, and status information processed by
the jury during execution of the contract.
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Adaptor Layer
PalletOne provides API and library in the adapter layer that not only allows for the
interaction with popular underlying blockchains, but also facilitate emerging
blockchains interact with PalletOne.

PalletOne Protocol
Template Deployment
In PalletOne, all types of services are created by smart contracts. The creation of
contracts is based on contract templates. PalletOne provides some contract templates
for common scenarios for users. Users can also create a new contract template by
themselves and deploy it to PalletOne. The deployment of the contract template needs
to be designated by Mediator. Mediator is responsible for checking the syntax,
specification, etc. of the contract template and only the contract template that meets
the requirements can be successfully deployed. A successful deployment contract
template will be saved in the Distributed Storage of PalletOne for contract
deployment in the future.

Contract Deployment
In PalletOne, all contract instances are based on templates. If you cannot find correct
contract template that you needed in PalletOne, you need deploy template first. Once
a contract issuer attempts to deploy the contract, PalletOne will do below steps:
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Step 1: Contract issuer send template hash and contract initial parameters to Mediator.

Step 2: Mediator will create a jury and random select jurors from "juror pool" based
on contract parameters.

Step 3: Juror list of this jury will communicate each other and receive initial
parameters from Mediator. Jury will retrieve template code from distributed storage.

Step 4: Jury will create contract instance based on initial parameters and template
code, validate and execution. After validation and execution, jury will write the state
data, contract ID and juror list into distributed storage.

Contract execution has two kinds of jury mode to bind: Lock juror mode and Unlock
juror mode. User can select different kind of jury when create contract template.

Contract Invocation
After the contract has been deployed, other participants are able to invoke it.
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Step 1: To invoke the contract, the contract invoker queries the distributed storage by
the contract ID first. Then, the storage will return the contract program and the list of
Jurors who are responsible for the execution of the contract on lock juror mode. If in
unlock juror mode, Mediator will select a new Jury. After gathering necessary data,
the contract will be packed with parameters into request object and sent to Jury.

Step 2: When the Jurors receive the request, they execute the contract independently
along with the latest contract state and invocation parameters. If everything runs as
expected, the results of those Jurors will be the same, and the contract state will be
shifted to the next one.

Step 3: If an interchain transaction is triggered, they will sign a multi-signature

transaction on that blockchain as well.

Contract Query
After the contract is deployed, the user can use the query interface in the contract to
query the contract state data. The query of the contract will not change the Distributed
Storage, so it does not need the participation of the Jury.
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Contract Termination
After the accomplishment of the contract execution or the contract meets the
terminate conditions, the contract issuer may apply for the contract termination.

Step 1: the contract issuer send message to Mediator to apply for the contract
termination.

Step 2: On lock juror mode, Mediator select the associated jurors from distributed
storage by contract ID. On unlock juror mode, Mediator select a new Jury.

Step 3: Mediator send terminate message to Jury.

Step 4: Jury retrieve contract program and state data from distributed storage by
contract ID.

Step 5: Jury check the terminate conditions, if it matched, execute the terminate
function.
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Step 6: Jury write the state data of terminated contract into distributed storage and
send terminated message to Mediator.

Step 7: Mediator validates the terminated status, and then dissolves the corresponding
Jury.
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Token Economy

Tokens’ use as payment of Deposit

To ensure the safety of PalletOne system, Jurors must pay a deposit to prevent them from
conducting fraud. To become a Juror to earn transaction fee, participants need to follow this
process: First, pay a deposit in the form of the PalletOne tokens (“PTN”) to become a
candidate Juror. The Juror can earn transaction fee when executing contracts. The deposit can
be withdrawn when the smart contract ends. The Juror can also withdraw its deposit after
invoking the Mediator to select a new Juror for replacement.

The proper amount of deposit can be evaluated through a model that contains different
properties, including the value of the contract, the size of Jury, the credibility of Juror and the
design of contract. The Juror must ensure a good host environment and network environment,
because poor host environment may cause smart contracts not to complete within the
specified time and the poor network environment may cause the communication between the
jurors in the Jury to timeout or even offline. As a result, smart contracts could not reach a
consensus among the jurors. After multiple consensus failures, deposit will be forfeited and
the Juror will be removed from the list of candidate jurors.

Tokens’ use as payment of Transaction Fee

To provide an incentive for Jury’s execution, Jurors gain fees from contract participants by
executing contracts. Contract participants need to pay some PalletOne tokens as the
transaction fees to those Jurors. The transaction fee would be much lower than the transaction
fee of other blockchains because only the Jurors in the corresponding Jury will run it. The
Jury will only execute the contract after they verify that the PalletOne tokens have been
successfully transferred.

In PalletOne, to provide an incentive for Jury executing contracts, Jurors gain fees from
contract participants by executing contracts. Contract participants need to pay some
PalletOne tokens as the transaction fees to those Jurors. The transaction fee would be much
lower than the transaction fee of other blockchains because only the Jurors in the
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corresponding Jury will run it. The Jury will only execute the contract after they verify that
the PalletOne tokens have been successfully transferred into Mediator.

Token as Juror Incentive

For the efficient operation of the PalletOne whole network and to encourage as many as
possible nodes to participate in the consensus, in addition to transaction fees, the Mediator
will use the PalletOne tokens as incentives for the Jury's participation consensus based on
smart contracts. Every juror who participates in the validation and execution of the contract
will receive transaction fees and incentives in the form of PalletOne tokens as remuneration
for their services. Because the Jury was randomly selected, everyone has the opportunity to
become a member of the Jury and participate in the token economy.

Tokens’ use as payment of Contract Deposit

Some contracts (such as currency exchange contracts) require both participants to pay a
certain contract deposit in the form of PalletOne tokens to the contract to avoid the
occurrence of a breach of contract by a single party. If the contract is completed normally, the
contract deposit will be refunded to both sides of the contract, and if one party breaches the
contract, the other party can apply for a penalty of the defaulting party's contract deposit to
compensate for loss.

Recap
Based on the aforementioned PalletOne architecture, the Jury can execute the contracts and
interact with the underlying blockchains. Jurors in a Jury reach the consensus to perform the
reliable contract execution. Such design makes the execution efficient and scalable, since the
consensus is generated by the Jury of this individual contract instead of all Jurors on the
network. To reduce the cost of transaction fees and settlement latency, only contract states are
stored in the underlying blockchains at the request of contract participants.
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PalletOne Attributes

Multi-chain
PalletOne smart contracts support multi-chain. Through the Jury consensus and adaptation
layer, PalletOne smart contracts can run on different blockchains at the same time. PalletOne
smart contract can interact with different blockchains at the same time, so users can trade
tokens from different blockchains in one PalletOne contract invocation to make the inter-
chain token exchange distributed, atomic, and immutable.

At the same time, smart contracts (such as Bitcoin) developed for a blockchain can be reused
on other blockchains (such as Litecoin), significantly reducing the development costs of
smart contracts.

Multi-task
The verification, execution, etc. of the PalletOne smart contract can be done by the Jury
specifically created for it. The Jury is composed of a group of jurors that randomly selected
from the candidate jurors randomly. Smart contracts in PalletOne can be implemented by
selecting different juries in a multi-tasking manner. Compared with the whole-network
consensus, PalletOne network congestion will be effectively reduced.

Multi-language
Dapp developers of PalletOne can develop smart contracts using mainstream development
languages (such as Java, C++, JS, etc.) without having to learn a new contract development
language, such as Solidity for Ethereum. The attibute of PalletOne supporting multiple
languages will contribute to prosperous of PalletOne ecosystem.

Multi-platform
As the key tool of smart contract compiling and execution, PalletOne VM is completely
decoupled from the underlying operation system, which allow PalletOne smart contract adapt
to windows, Linux, Mac as well as other types of platform.
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Security
PalletOne's security is reflected in two aspects, one is the security of development, and the
other is the security of contract execution.

Development security is reflected in two aspects：

(1) In PalletOne, we will provide sorts of standard contracts for common or specific
scenarios. When a user develops a corresponding scene contract, he/she only needs to call a
standard contract and complete Dapp development in a few steps. This design reduces the
difficulty of user development while also reducing the risk due to incomplete development
considerations.

(2) PalletOne provides a comprehensive set of token definitions and operations, making the
user's token release process simple and easy to operate. Meanwhile, because of PalletOne has
a comprehensive set of license definitions and operations, each license is traceable and safe.

Regarding to smart contract execution, PalletOne VM provides a sandbox environment for

host safety and eliminates the possibility of host or network attacks from malicious contracts,
which allows PalletOne smart contracts execution more secure.

PalletOne Advantages

High Capacity
In computer architecture, “data + algorithm (calculation)”is the program. While specific to
the blockchain world, data is stored in blocks, and calculations are performed at the mining
nodes. The block generation speed and block size determine the processing speed of the
chain. In Bitcoin and Ethereum's transaction processing using the “serial storage + serial
computing” mode, Bitcoin is about 7 TPS and Ethereum is about 15TPS.

DAG is different from the traditional "block + chain" structure, changing the serial nature of
single-chain, through the parallel write to solve the data storage bottlenecks. As a blockchain
platform for smart contracts, the serialization of computing nodes has become a new
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bottleneck in the blockchain. The independent innovation jury consensus mechanism of
PalletOne broke the seriality of the traditional consensus mechanism. Multiple juries
conducted consensus calculations in a multi-task parallel manner, thereby improving
computational performance.

Combining the DAG distributed storage with the jury consensus algorithm, both the storage
and the computation break through the technical limitations of the traditional blockchain, and
PalletOne thus forms a high-performance distributed ledger.

High Universality
PalletOne aims to establish an "IP protocol" for the blockchain industry, allowing value to
flow freely between different blockchains. In the Internet technology, the physical layer may
be a cable or an optical fiber; the data link layer includes both ATM, SDH, and Ethernet; but
due to the existence of the IP protocol, the upper layer Internet application can not only
ignore the physical layer and data link layer technologies. The evolution of physical facilities
has changed, and historical accumulation of data has been retained, and the existence and
development of sustainability have been maintained. PalletOne also plays this role. Dapp
(Decentralized Application) can be deployed on various chains at the same time and is not
limited by the underlying chain.

PalletOne provides interfaces and library functions for each chain in the adapter layer through
an abstract digital currency chain (Bitcoin as an example) and a smart contract chain (using
Ethereum as an example). The smart contract directly addresses the abstract interface without
for the specific chain, the smart contract is decoupled from the bottom of the blockchain; the
underlying chain can obtain the same information or value of other blockchains through
PalletOne's adaptation layer without any requirement, restriction or restricted exchange.

Safe and Smart Token Model

PalletOne has a built-in general-purpose pass-through abstraction model for market and
economics. Users can create their own token simply, safely and quickly based on the existing
token templates. PalletOne provides support for the token model on the underlying data
structure, which isolates the pass-through data from the contract data.
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PalletOne uses the UTXO model and provides similar payment methods such as Bitcoin
P2PH, P2SH, etc., making users experience as simple as Bitcoin in the payment experience.

In PalletOne token abstract model, integral token methods are provided. Therefore, the users
do not need to write any code when issuing a token, but only need to configure the relevant
parameters, thus avoiding the smart contract flaw in the issuance of the token.

Healthy Ecosystem
PalletOne aims to establish a complete smart contract ecosystem that allows developers,
users, and "miners" to each and every one of PalletOne's platforms to create a healthy
ecosystem.

For developers, on the one hand, support for smart contracts provides support for popular
development languages. Developers do not need to learn a new contract development
language, but only need to use their used development language to develop smart contracts.
Reduced the difficulty of contract development. On the other hand, the contract store
provides developers with a platform for smart contract sales. Similar to Apple’s AppStore,
developers can freely price smart contracts, and users benefit from using paid contracts to
further improve developers’ enthusiasm and smart contract quality.

For end users, user can choose smart contracts that meet their needs through the smart
contract store provided by PalletOne. They only need to pay developers a contract fee to
realize their own needs, instead of development and debugging by themselves. In addition,
PalletOne will also provide a powerful set of contract templates for users to use for free.

For "Miners", they can apply for a juror, provide a good hardware environment for the
execution of smart contracts, and collect an execution fee. Due to use of the DPoS consensus
and the jury consensus, the “miners” do not need to use a large number of mining
machines to compete for mining, avoiding extreme waste of energy and increasing the use of
hardware.

Application Scenarios
PalletOne is an promising cross-chain project that will focus on achieving interaction between
different blockchains. PalletOne's ultimate vision is to connect all of the blockchains so that
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the originally closed and isolated information, values, and applications can be used freely
across chains to build a globally interconnected network with no boundaries.

For the avoidance of doubt, PalletOne is not responsible for the offer of the following
application scenarios including cross-chain payment, financial instruments, and payment types
on dApps – these may be offered by developers of dApps or other participants on the platform.
Because these applications may be subject to licensing requirements or other regulations in
various jurisdictions, they may not be available in every jurisdiction.

Cross-chain Payment
We can imagine the following scenario: users in the Bitcoin network want to enjoy the fun of
playing Crypto Kitties in Ethereum. The most feasible solution is to convert certain BTC to
ETH through complex operations on Cryptocurrency exchange with high fees. PalletOne
make the payment more convenient, that the user can use PalletOne to pay for the cost
directly using BTC, thus avoiding complex currency exchange operations.

Financial Instrument
Mutual Funds
Mutual fund is a professionally managed investment fund that pools assets from many
investors to purchase securities. PalletOne is the best platform to share their investment
strategies. In other words, they can create their mutual funds, and define the reward in
contracts. Everyone will have the right to use the PalletOne as they wish, so everyone has the
opportunity to create their own mutual fund. They can distribute the funds into different
cryptocurrencies as they want. With PalletOne, human creation has no boundaries.

Exchange Trade Fund

Financial instruments are monetary contracts between parties. They can be created, traded,
modified and settled. At present, there are very few cryptocurrency ETF over the world, and
they are all controlled by large financial institutions. Users can use PalletOne to create their
own ETFs and hold assets such as cryptocurrencies, commodities, or bonds. Create more
opportunities for investors all over the world.
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Financial Derivatives Instrument
For financial applications, PalletOne also provides convenient services. The token in
PalletOne is highly flexible. Any user can use the forensic tool to design a Bitcoin, Ethereum,
Litecoin or even stocks and bonds. In the case of a combination of various assets, the value of
this certificate will be determined by the real-time market for all the assets that make up the
permit, so as to avoid the risk of a large increase or decrease in individual currencies or
securities.

In addition, based on the Token Abstraction Layer, the user can also issue different functions
for the assets he holds. For example, a house can issue the ownership token and the use right
pass, and the user who purchased the ownership pass will have this. A home, and the user
who purchased the pass will be able to use the house during the life cycle of the permit.
PalletOne provides a comprehensive set of at-risk definitions and warrants that can
accomplish this and ensure security.

Support for Multiple Payment Types on Dapps

Based on PalletOne, developers can deploy various types of Dapps, unlike the case where
Dapp on Ethereum only supports ETH payments. When users use Dapps built on PalletOne,
the payment method is more flexible and free: both through PalletOne Token and You can
choose BTC, ETH, or even random combination of several ways. The flexibility of payment
methods will stimulate the diversity of users to a certain extent, which will further promote
the development of the PalletOne ecosystem.
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Core Team
Peijiang Zhu
PalletOne Global Community Leading Official
Secretary General of Z-Park Blockchain Industry Alliance Engaged in network, video as

well as blockchain technology research for years. Expert at underlying blockchain

technology, consensus algorithm, token economy ecosystem.

Matthew Jones
PalletOne North American Business Official
Business Planner,MICROSOFT Acquired master degree from the University of Texas at

Austin.

Yi Zeng
PalletOne Technical Director
Database expert, author of "SQL Server database technical handbook", work and research

in database application, data warehouse, big data and blockchain technology. Expert at

development on Fabric.

Cuicui Wang
PalletOne Architect & Researcher
M.A. of Beijing University of Posts and Telecommunications, worked in Baidu and

subordinate research institution of certain state management department. Expert at research

of network security, network traffic analysis as well as blockchain technology.

Kenneth Chen
Specialist of PalletOne
Co-Founder & CTO of GenieNRM，Chief Strategy officer of TelTel，Co-Founder &

CTO of Datamite Technology，20 years experience in products design and management.

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Dr. Jian Liu
Specialist of PalletOne
The doctor of National University of Defense Technology,

Engaged in the development and research of operating system, distributed computing,

supercomputer and so on for years.

Dr. Yu Chen
Specialist of PalletOne
Received the doctorate degree in mathematics from the University of South Carolina

Served as a research scientist in the US Summus Inc, mainly developing algorithms and

software for image processing and pattern recognition in the US Defense Research

Department, such as ONR and Sandia National Labs.

Ningning Shi
Specialist of PalletOne
Specialist of PalletOne.

Xiaojun Mao
PalletOne CMO
As Senior Market Consultant for Blockchain Industrial Alliance of Zhongguancun , as

CEO of STARTHALO (Beijing) Media Technology Co., Ltd. as master of management of

MSC, ESC Rennes School of Business, France. Having worked in the Economic

Management College for DBA Office of Beijing University of Posts and

Telecommunications.

Donghai Liu
PalletOne director of operation
As Senior Market Director for Blockchain Industrial Alliance of Zhonggancun, as

executive director of STARTHALO (Beijing) Media Technology Co., Ltd., and general

manager of Harmony Totem (Beijing) Commercial Management Co.,Ltd.

Zheng Zhang
PalletOne manager of operation
COO for STARTHALO (Beijing) Media Technology Co., Ltd.
 28

Yu Yang
PalletOne Distributed Storage DAG Module Leader
Master of Science in Electronics and Communication Engineering, Beijing Jiaotong

University. Has many years of development experience, early researcher of Bitcoin,

Ethereum and DAG technology.

Lihua Guo
PalletOne senior engineer
leader of virtual machine and contract management module
Engaged in software development, architecture design and multi-year technical

management of the Internet and broadcasting industry. Has in-depth research and practical

development experience on blockchains such as fabric and bitcoin.

Jiyou Wang
Leader of the PalletOne code framework
and p2p network module
Master of Bohai University. Proficient in C, C++, Go languages, rich experience in

DHCPv6, ND, RUI protocols, and high-performance server design and development;

Familiar with block chain P2P network design and development.

Jie Yang
PalletOne development engineer
storage DAG and memory management
Graduated from Beijing university of chemical technology, majoring in computer science, I

have been engaged in the development of the back-end of go language for a long time, and

have a deep understanding of the basic elements and design of block chain.

Albert·Gou
PalletOne development engineer
leader of consensus algorithm module
Familiar with a variety of front-end and back-end technology, many years of C++ language

research and development experience, participate in application software development in

multiple industries, and have in-depth research on BitShares and DPoS consensus.

Xiangli Zhang
PalletOne Senior Core R&D Engineer
 29
manager of the underlying chain transaction adapter model
With years of experience in C / CPP development, familiar with encryption and decryption

algorithms, bitcoin, data structure and algorithms have a deeper understanding, block chain

lover.

Ligang Wang
PalletOne Senior Development Engineer
leader of chain data API and wallet service module
Master degree from China University of Petroleum (Beijing), with experience in data

communications, big data, block chains, micro-services related development, and engaged

in economic research.

Zhiyuan Wu
PalletOne Senior Development Engineer
head of system contract module
Graduated from Beijing University of Posts and Telecommunications, MBA. Engaged in

block chain investment and Practice for many years. Focus on technology and study the

sociological and economic significance of blockchain.

 30
Advisors
Yan Meng
Vice president of the well-known open source
community-CSDN
one of the promoters of “Tong Zheng”（Token）conception

Dr. Li Gong
PalletOne Chief Scientist
President of Mozilla company，Former vice president of Microsoft China R &

D group，president of China Engineering Research Institute of Sun. Got a

bacherlor’s degree and a master’s degree in computer science of Tsinghua

University, Ph. D. of computer science of University of Cambridge.

Akiyoshi Fukumitsu
Founder & CEO of Hivelocity Inc.
Mr. Fukumitsu is based in Tokyo, has over 20 years of web development, online

marketing and business solutions extensive experience. Founder & CEO of

Hivelocity Inc.

Mr. Fukumitsu received a Bachelor’s degree in Civil Engineering and M.A. in

Urban Planning from Waseda University in Tokyo, Japan.

 31

Time Line
We are a group of passionate people who are fond of technology and believe in the
future vision of blockchain: the Internet of Value. We have developed vChain (internal
project) since Oct 2015. In the meantime, we have developed explorer, VM etc. for
vChain and tried to promote blockchain technology for practical usage.

Starting in 2016, we tried to decouple Ethereum's smart contract system to make it

adaptable to Bitcoin, and even other existing chains.

Meanwhile, we noticed the real potential of decoupling. It can do more than we think
before, which is capable of overcoming the challenges nowadays and reaching the
Internet of value. From then on, we start to research and design a protocol based on
this concept. Thanks to the effort so far, we now introduce PalletOne to start a new
generation of the Internet of Value.
 32
2015 Oct
vChain (internal project) Concept born
2016 Apr
Release illustration about vChain
2016 Nov
Update vChain-compat-openssl.spec
2017 Feb
Develop vChain explorer
2017 May
Modify vChain EVM from Ethereum EVM
2017 June
Decouple oracle module from vChain

2017 Sep
Release vChain v1.2

2017 Sep
Concept of PalletOne born

2018.3
Release PalletOne White Paper
2018.5
Release PalletOne Tech Yellow Paper
2018.Q2
Start PalletOne Development and Open Source
2018.Q3
Publish Bitcoin-supported PalletOne Protocol
2018.Q3
Publish Ethereum-supported PalletOne Protocol
2018.Q4
PalletOne Test Network online
2019.Q2
PalletOne Network online
2019.Q3
PalletOne Will Support More Blockchains

Road Map
 33

Conclusion
PalletOne is an abstract-level smart contract protocol which decouples execution from
underlying blockchains. As a result, execution of contracts can be more scalable and able to
interact with different blockchain. Benefiting from leveraging PalletOne VM, contract in
PalletOne can not only be programmed in multiple languages but also be reused by existing
tools to provide a secure and high performance execution.

PalletOne allows users to trade on-chain and off-chain properties. To drive PalletOne
protocol, users can buy PalletOne tokens and use them as transaction fees to Jury, or users
can become Jurors to earn PalletOne tokens.
 34
STATEMENT
This document or any other document prepared in connection with the sale of PalletOne
tokens has not been and will not be lodged or registered as a prospectus with the Monetary
Authority of Singapore (the “MAS”) under the Securities and Futures Act, Chapter 289 of
Singapore, as may be amended from time to time (the “SFA”). The MAS assumes no
responsibility for the contents of this document or any such document. Accordingly, statutory
liability under the SFA in relation to the content of prospectuses would not apply.

Notwithstanding anything in this document, the Palletone tokens’ sole purpose and function
will be their potential use by users who wish to participate as Mediators, Jurors, DApp or
smart contract template developers, or common users on the Palletone platform or otherwise
access services on the Platform as contemplated in this document (which potential use remain
subject to change in PalletOne Foundation’s sole and absolute discretion). Ownership of the
PalletOne tokens carries no rights, express or implied, other than the right to use the
PalletOne tokens as a means to enable usage of and interaction with the Platform, if
successfully completed and deployed. The PalletOne tokens therefore do not represent or
confer any ownership right or stake, share, equity or security or equivalent rights, or any right
to receive any future profit or revenue shares, intellectual property rights or any other asset in
or relating to the Platform or any Group Entity. The PalletOne tokens will be sold to any
purchaser solely on the understanding that any interest the purchaser may have in the
PalletOne tokens is solely limited to potentially using the PalletOne tokens as contemplated
in this document, and not for any other purposes, including, but not limited to, any
investment, speculative, or financial purpose or with a view towards making a profit from the
secondary sale of the PalletOne tokens. No promises of future performance or value are or
will be made with respect to Tokens, including no promise of inherent value, and no
guarantee that the PalletOne Tokens will hold any particular value. The PalletOne Tokens
should not be acquired for speculative or investment purposes with the expectation of making
a profit on resale.

For the avoidance of doubt, the consideration paid for the PalletOne Tokens, as well as the
PalletOne platform and any other assets of the platform, will belong to the PalletOne
Foundation both legally and beneficially and may be used by PalletOne Foundation in its sole
and absolute discretion as it deems fit, and none of the consideration nor any property, asset,
 35
revenue, profit, shares, interest, or any other rights are managed or collectively managed for
or for the benefit of any holder or holders of the PalletOne tokens whatsoever.

The Tokens (a) are not a loan to any Group Entity; (b) do not provide any ownership or other
interest or rights whether actual or notional in any Group Entity or any other company,
enterprise, or undertaking or any kind of venture; (c) are not intended to be a representation
of currency or money (whether fiat or virtual or any form of electronic money), security, unit
in a collective investment scheme, commodity, bond, debt instrument, stored value facility, or
any other kind of financial instrument or investment; (d) are not a commodity or asset that
any person is obliged to redeem or purchase; (e) are not any note, debenture, warrant, or other
certificate that entitles the holders of the Tokens to interest, dividend, or any kind of return
from any person; (f) are not intended to be a security, unit in a collective investment scheme,
commodity, financial derivative, commercial paper or negotiable instrument, or any other
kind of financial instrument or investment between the holders of Tokens and any other
person, nor is there any expectation of profit or returns; and the purchasers of the Tokens will
not have any right to a refund in any circumstances including if the Platform is not developed
or successfully developed.

The purchasers of the Tokens from the Company that the purpose of the Tokens is to enable
Users to access, use, and enjoy the Platform whether as a Mediator, Juror, developer of DApp
or smart contract template, or any other common User. It will be made clear to the purchasers
of the Tokens that the Tokens are not sold as an investment and no person should purchase
the Tokens from the Company with any expectation that the Company will take any action
for the purposes of or in any way increasing or creating an increase in the value or
maintaining the value of the Tokens. The Company’s sole focus will be on developing and
operating the Platform to ensure that the Platform will be attractive for use by its Users.

RISKS AND UNCERTAINTIES

Prospective purchasers or holders of PalletOne Tokens (“PTN”) (“Purchasers”, “Holders”, or
“You”) should carefully consider and evaluate all risks and uncertainties associated with
PTN, the PalletOne Platform (“Platform”), PalletOne Foundation Ltd and any of its related
corporations (“Group Entities”) and their respective businesses and operations, any sale and
purchase of PTN including the terms and conditions governing such sale (“T&Cs”), and all
information set out in this white paper (“White Paper”) prior to any purchase of PTN. You
should not purchase PTN unless you have understood and accepted all risks involved in the
 36
purchasing, holding and using of the PTN including the risks set out in this document. If any
of such risks and uncertainties develops into actual events, the business, financial condition,
results of operations and prospects of PTN and/or any or all of the Group Entities could be
materially and adversely affected. No person owes you any returns in respect of the PTN or
can guarantee that the Platform, any PTN and any and all the activities and businesses
contemplated and discussed in this White Paper will definitely be established, materialise and
be carried out, or result in any returns now or in the future. In such cases, you may lose all or
part of the value of the PTN which you and you alone will have to solely bear.

For the avoidance of doubt, the risks involved with purchasing PTN include (but are not
limited to) the following:

1. Risk of Uninsured Losses

Unlike bank accounts or accounts at some other financial institutions, PTN is uninsured
unless you specifically obtain private insurance to insure them. Thus, in the event of loss or
loss of utility value, there is no public insurer or private insurance arranged by any person to
provide recourse (and in any event, no person is obliged to compensate or insure you for any
event of loss or loss of utility value).

2. Risks Associated with Uncertain Regulations and Enforcement Actions

The regulatory status of PTN and distributed ledger technology is unclear or unsettled in
many jurisdictions, but numerous regulatory authorities across jurisdictions have been
outspoken about considering the implementation of regulatory regimes which govern
cryptocurrency or cryptocurrency markets. It is difficult to predict how or whether regulatory
agencies may apply existing regulation with respect to such technology and its applications,
including the Platform and PTN. It is likewise difficult to predict how or whether legislatures
or regulatory agencies may implement changes to law and regulation affecting distributed
ledger technology and its applications, including the Platform and PTN. Regulatory actions
could negatively impact the Platform and PTN in various ways, including, for purposes of
illustration only, through a determination that PTN is a regulated financial instrument that
require registration or licensing, which may force the Platform to be made unavailable in
certain areas. Any Group Entity may cease operations in a jurisdiction in the event that
regulatory actions, or changes to law or regulation, make it illegal or difficult to operate in
such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s)
to operate in such jurisdiction.
 37
3. Risks Arising from Taxation
The tax characterisation of PTN is uncertain. You must seek your own tax advice in
connection with purchasing, holding and utilising PTN, which may result in adverse tax
consequences to you, including, without limitation, withholding taxes, transfer taxes, value
added taxes, income taxes and similar taxes, levies, duties or other charges and tax reporting
requirements.

4. Risk of alternative competing platforms

It is possible that alternative platforms could be established in an attempt to facilitate services
similar to those provided by the Platform. The Platform may compete with these alternative
platforms, which could negatively impact the Platform and PTN.

5. Risk of Insufficient Interest in the Platform or Distributed Applications

It is possible that the Platform will not be used by a large number of individuals, companies
and other entities or that there will be limited or no public interest in the creation and
development of distributed platforms (such as the Platform) more generally. Such lack of use
or interest could negatively impact the development of the Platform and therefore the
potential utility of PTN.

6. Risks Associated with the Development and Maintenance of the Platform

The Platform is still under development and may undergo significant changes over time.
Although it is intended for PTN and the Platform to have the features described in this White
Paper, and the relevant Group Entity will endeavour to work towards those ends (subject to
internal business considerations), changes may be required to be made to the specifications of
PTN or the Platform for any number of reasons. This could create the risk that PTN or the
Platform, as further developed and maintained, may not meet your expectations or
requirements at the time of purchase. Furthermore, despite the relevant Group Entity’s good
faith efforts to develop and maintain the Platform, it is still possible that the Platform will
experience malfunctions or otherwise fail to be adequately developed or maintained, which
may negatively impact the Platform and PTN.

7. Inadequate disclosure of information.

As at the date hereof, the Platform is still under development and its design concepts,
consensus mechanisms, algorithms, codes, and other technical details and parameters may be
 38
constantly and frequently updated and changed. Any statement in the White Paper is subject
to change and may be adjusted and updated from time to time.

8. Risk of an Unfavourable Fluctuation of Currency Value

The proceeds from selling PTN are intended to fund the development and maintenance of the
Platform. If the value of digital assets in which the PTN sale proceeds are denominated
fluctuates unfavourably during or after the sale of PTN, the relevant Group Entity which will
undertake development of the Platform may not be able to fund development, or may not be
able to develop and/or maintain the Platform in the manner that it intended.

9. Risk of Dissolution of any Group Entity or Platform

Start-up companies such as any of the Group Entities involve a high degree of risk. Financial
and operating risks confronting start-up companies are significant, and the Group Entities are
not immune to these. Start-up companies often experience unexpected problems in the areas
of product development, marketing, financing, and general management, among others,
which frequently cannot be solved.

It is possible that, due to any number of reasons, including, but not limited to, an
unfavourable fluctuation in the value of cryptographic and fiat currencies, decrease in the
utility of PTN due to negative adoption of the Platform, the failure of commercial
relationships, or intellectual property ownership challenges, the Platform may no longer be
viable to be developed or even if developed, maintained and operated, and the Group Entities
may be dissolved.

10. Risks Arising from Lack of Governance Rights

Because PTN confers no governance rights of any kind with respect to the Platform or any
Group Entity, all decisions involving the Platform or any Group Entity will be made by the
relevant Group Entity at its sole and absolute discretion, including, but not limited to,
decisions to discontinue the Platform, or to sell or liquidate any Group Entity. These
decisions could adversely affect the Platform and PTN you hold.

11. Risks associated with markets for PTN

There is no prior market for PTN and the PTN token sale may not result in an active or liquid
market for PTN. PTN is designed to be used solely within the Platform, hence there may be
illiquidity risk with respect to the PTN you hold. PTN is not a currency issued by any central
bank or national, supra-national or quasi-national organisation, nor is it backed by any hard
 39
assets or other credit nor is it a "commodity" in the usual and traditional sense of that word.
No Group Entity is responsible for, or obliged to pursue, the circulation and trading of PTN
on any market. Trading of PTN will merely depend on the consensus on its value between the
relevant market participants. No one is obliged to purchase any PTN from any holder of PTN,
nor does anyone guarantee the liquidity or market price of PTN to any extent at any time.
Furthermore, PTN may not be resold to a purchaser who faces restrictions in the purchase of
cryptographic tokens or with respect to whom the purchase of PTN may be in violation of
applicable laws. Accordingly, no Group Entity or any person makes any representation,
warranty or guarantee that there will be any demand or market for PTN, or that the price you
pay for PTN is indicative of any market valuation or market price for PTN.

Even if secondary trading of PTN is facilitated by third party exchanges, such exchanges may
be relatively new and subject to little or no regulatory oversight, making them more
susceptible to fraud or manipulation. Furthermore, to the extent that third parties do ascribe
an external exchange value to PTN (e.g., as denominated in a digital or fiat currency), such
value may be extremely volatile, decline below the price which you have paid for PTN,
and/or diminish to zero.

12. Loss of Talent

The development of the Platform depends on the continued co-operation of the existing
technical and commercial team and expert consultants, who are highly knowledgeable and
experienced in their respective sectors. The loss of any member may adversely affect the
Platform or its future development. Further, stability and cohesion within the team is critical
to the overall development of the Platform. There is the possibility that conflict within the
team and/or departure of core personnel may occur, resulting in negative influence on the
project in the future.

13. Failure to develop

The Platform is still in the developmental stage, hence there may be large changes to the final
design before the official version is released. There is the risk that the development of the
Platform will not be executed or implemented as planned, or may not meet any expectation of
purchasers of PTN, for a variety of reasons, including without limitation the event of a
decline in the prices of any digital asset, virtual currency or PTN, unforeseen technical
difficulties, and shortage of development funds for activities.
 40
14. Risks Associated with the related Blockchain
Because PTN and the Platform are based on blockchain technology, any malfunction,
breakdown or abandonment of the relevant blockchain may have a material adverse effect on
the Platform or PTN. Moreover, advances in cryptography, or technical advances such as the
development of quantum computing, could present risks to PTN and the Platform by
rendering ineffective the cryptographic consensus mechanism that underpins the relevant
Blockchain. The future of cryptography and security innovations are highly unpredictable.

15. Risk of Losing Access to PTN Due to Loss of Private Key(s)

A private key, or a combination of private keys, is necessary to control and dispose of PTN
stored in your digital wallet, vault or other storage mechanism. Accordingly, loss of requisite
private key(s) associated with your digital wallet, vault or other storage mechanism storing
PTN may result in loss of such PTN. Moreover, any third party that gains access to such
private key(s), including by gaining access to login credentials of a hosted wallet service you
use, may be able to misappropriate your PTN. No Group Entity can or will be responsible for
any such losses.

16. Risk of Mining Attacks

As with other decentralised cryptographic tokens based on blockchain technology, PTN is
susceptible to attacks by miners in the course of validating PTN transactions on the relevant
blockchain, including, but not limited, to double-spend attacks, majority mining power
attacks, and selfish-mining attacks. Any successful attacks present a risk to the Platform and
PTN, including, but not limited to, accurate execution and recording of transactions involving
PTN.

17. Risk of Hacking and Security Weaknesses

Hackers or other malicious groups or organisations may attempt to interfere with the Platform
or PTN in a variety of ways, including, but not limited to, malware attacks, denial of service
attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, because
the Platform is based on open-source software, there is a risk that a third party or a member
of any Group Entity may intentionally or unintentionally introduce weaknesses into the core
infrastructure of the Platform, which could negatively affect the Platform and PTN.

18. Forking
 41
The Platform is a community project and certain elements are open-sourced. The Group
Entities do not and cannot monopolise the development, marketing, operation or otherwise of
the Platform’s blockchain. Any entity may independently develop a patch or upgrade of the
source code of the Platform’s blockchain without prior authorisation of any other party. The
acceptance of these patches or upgrades by a sufficient (not necessarily overwhelming)
percentage of PTN holders could result in a “fork” in the blockchain, and consequently two
diverging networks may emerge and remain. Each branch of the blockchain arising from the
fork will have its own native cryptographic tokens – accordingly there will be two different
versions of PTN respectively residing in the two divergent branches with almost identical
technical features and functions. The community in the Platform may split into two groups in
support of the two branches respectively.

Further, it is theoretically possible for each branch of the forked blockchain to be further
forked an unlimited number of times. The temporary or permanent existence of forked
blockchains could adversely affect the operation of blockchain and the PTN which you hold,
and may ruin the sustainability of the Platform.

19. Unanticipated Risks

The PTN, being cryptographic tokens, are a new and untested technology. In addition to the
aforementioned risks, there may be other risks associated with your purchase, holding and
use of PTN, including those may not be anticipated by the Group Entities. Such risks may
further materialise as unanticipated variations or combinations of the risks discussed above or
otherwise howsoever arise.

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

All statements contained in this White Paper, statements made in press releases or in any
place accessible by the public and oral statements that may be made by any of the Group
Entities or their respective directors, executive officers or employees or agents or contractors
acting on their respective behalves, that are not statements of historical fact, constitute
“forward-looking statements”, whether or not identified by forward-looking terms such as
“aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”,
“plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or other similar terms.
However, these terms are not the exclusive means of identifying forward-looking statements.
 42
All statements regarding any of the Group Entities’ financial position, business strategies,
plans and prospects and the future prospects of the industry which the Group Entities is or
will be in are forward-looking statements. These forward-looking statements, including but
not limited to statements as to any of the Group Entities’ revenue and profitability, prospects,
future plans, other expected industry trends and other matters discussed in this White Paper
regarding the Platform and/or any of the Group Entities are matters that are not historic facts,
but only statements of intention or predictions which cannot in any way be guaranteed.

These forward-looking statements involve known and unknown risks, uncertainties and other
factors that may cause the actual future results, performance or achievements of the Platform
and/or any of the Group Entities to be materially different from any future results,
performance or achievements expected, expressed or implied by such forward-looking
statements. These factors include, amongst others:

(1) changes in political, social, economic and stock or cryptocurrency market

conditions, and the legal and regulatory environment in the countries in which any
of the Group Entities conduct their respective businesses and operations;
(2) the risk that the Platform may require regulatory licences or other similar regulatory
approvals or clearances to be used by persons in your jurisdiction, and that you may
not be able to use the Platform or PTN or any tokens offered under the platform if
the operator of the Platform or the relevant issuer of the token is unable to obtain
the necessary regulatory licence or other similar regulatory approval or clearance;
(3) the risk that any of the Group Entities may be unable to execute or implement their
respective business strategies and future plans;
(4) changes in the anticipated growth strategies and expected internal growth of any of
the Group Entities;
(5) changes in the availability and fees payable to any of the Group Entities in
connection with their respective businesses and operations;
(6) changes in the availability and salaries of employees who are required by any of
the Group Entities to operate their respective businesses and operations;
(7) changes in preferences of customers or targeted users and participants of any of the
Group Entities or the Platform;
(8) changes in competitive conditions under which any of the Group Entities operate,
and the ability of any of the Group Entities to compete under such conditions;
(9) changes in the future capital needs of any of the Group Entities and the availability
of financing and capital to fund such needs;
(10) war or acts of international or domestic terrorism;
(11) occurrences of catastrophic events and natural disasters that affect the businesses
and/or operations of any of the Group Entities;
(12) other factors beyond the control of any of the Group Entities; and
 43
(13) any risk and uncertainties associated with any of the Group Entities and their
businesses and operations, the PTN and any sale of PTN.
All forward-looking statements made by or attributable to any of the Group Entities or
persons acting on behalf of any of the Group Entities are expressly qualified in their entirety
by such factors. Given the risks and uncertainties that may cause the actual future results,
performance or achievements of any of the Group Entities to be materially different from that
expected, expressed or implied by the forward-looking statements in this White Paper, no
reliance must be placed on these statements. These forward-looking statements are applicable
only as of the date of this White Paper. None of the Group Entities nor any other person
represents, warrants and/or undertakes that the actual future results, performance or
achievements of any of the Group Entities will be as discussed in those forward-looking
statements. The actual results, performance or achievements of any of the Group Entities may
differ materially from those anticipated in these forward-looking statements.

Nothing contained in this White Paper is or may be relied upon as a promise, representation
or undertaking as to the future performance or policies of any of the Group Entities including
the Platform. Further, none of the Group Entities shall have any responsibility to update any
of the above-mentioned forward-looking statements or publicly announce any revisions to the
forward-looking statements to reflect future developments, events or circumstances, even if
new information becomes available or other events occur in the future.
 44

Appendix

Token issuance demo code

Code 1: Pseudo code of token issuance
/* This is a pseudo code of a contract running on PalletOne.
This contract will demonstrate how to issue a token in a
contract.
Some methods are defned in this contract, mint(), transfer()
and get_balance().
There are some predefned variables and methods provided by
PalletOne contract APIs. */

init(args):
// init(args) will be called only once when deploying.
state = new_contract_state()
state.set_issuer(current_user)
state.set_empty_user_balance()
set_contract_state(state)
run(args):
// All invocations will start here.
current_user = get_current_user()
state = get_contract_state()
param = get_parameters()
if (args == “Mint N”) {
return mint(N)
} else if (args == “transfer N tokens to user U”){
return transfer(N, U)
} else if (args == “get_balance of user U”) {
return get_balance(U)
} else {
return invalid_invocation(“Wrong arguments”)
}
mint(n):
issuer = state.get_isser()
user_balance = state.get_user_balance()
if (current_user == issuer) {
 45
user_balance[issuer] += n
state.set_user_balance(user_balance)
set_contract_state(state)
return OK
} else {
return invalid_invocation(“Permission denied.”)
}
transfer(n, receiver):
user_balance = state.get_user_balance()
if (user_balance[current_user] >= N) {
user_balance[current_user] -= N
user_balance[receiver] += N
state.set_user_balance(user_balance)
set_contract_state(state)
return OK
} else {
return invalid_invocation(“Insufficient token.”)
}
get_balacne(user):
// Assume all balance infos are public.
user_balance = state.get_user_balance()
return user_balacne[user]
 46

Glossary
Abstract level: PalletOne is a light-weight protocol running on a higher level on the
blockchain, which we call abstract level.

Jury: A group of chosen workers who are responsible for executing and verifying contract
running on PalletOne.

Juror: Contract verifer who is responsible for contract execution in the Jury group.

PalletOne Token: PalletOne token is used as the transaction fees of contract executions
for Jury and is the native token of PalletOne.

Mediator: A smart contract on PalletOne which maintains PalletOne token.