What Does AO Blockchain Do
Assets on the AO Blockchain System are designed to track ownership of multiple asset classes. Assets can be used on the AO Blockchain Exchange, in Smart Contracts, and by Channels. All of the features and functionality of Assets are available in basic form in the AO Wallet, and in advanced form with the REST / RPC API, GraphQL API, and Streaming APIs.
For every asset on the AO Blockchain System, you can track either Inventory or Ownership in order to differentiate between the various types of asset.
Ownership Assets have shares attached to them. These shares can be traded on the exchange, used in smart contracts, or sent to other accounts directly. Ownership assets support splitting.
Inventory Assets have a unit count attached to them. This allows the system to track individual accounts' / organizations' purchase and sale of Inventory assets. Supports adding new inventory amounts to the system to account for production.
AO Blockchain System supports all of the standard asset classes. New classes can be added by registering an asset class while registering a new asset.
- Real Estate
- Tradable Collectables
Assets can be utilized by smart contracts to issue a unit of an asset, either ownership or inventory. Assets can be used in any type of smart contract and against any type of smart contract trigger.
AO Blockchain System supports any fiat and crypto-currency available today. Through the use of Gateways, AO Blockchain System can interact with any other currency, making every other currency available for use in Smart Contracts, on the Exchange, and to track the value of Assets.
Initially, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin will be available to use on the AO Blockchain, with Gateway's provided by AO Cyber Systems.
US Dollar, Euro, British Pound, and other Fiat currencies will be released within the year following AO Blockchain System's public network launch.
A currency gateway is used to provide access to fiat and crypto-currencies. This specially designed node provides an API to interact with other systems. The standardized API will be detailed in documentation for Gateway builders to work with.
Cryptocurrencies will be supported by installing the particular cryptocurrency node onto a server and attaching the Gateway API to it. Instructions for Bitcoin-like systems will be available to follow for any Gateway Builder.
Fiat currency gateways must be provided by a validated bank in good standing with their country of origin.
All accounts can accept all cryptocurrencies by default. Fiat currency will require a validated identity attached to the account in order to comply with "Know Your Customer" and "Anti-Money Laundering" laws in the US and EU.
All accounts can use any currency in their possession to transact with Smart Contracts, on the Exchange, or send currency directly to another account.
AO Blockchain's built-in Cryptocurrency Exchange focuses on providing an easy-to-use experience to Cryptocurrency Investors. The AO Exchange has full support for all AO Blockchain Currency Gateways and can handle trades for any currency pairing.
Trading cryptocurrency to fiat currency and back again is also supported. Accounts with verified identities are required to trade fiat currencies.
Support for connecting debit and credit cards to your account, as well as directly connecting bank accounts, will also be available.
Fiat currency, debit / credit card, and bank account connectivity will be supported shortly after the AO Blockchain System's public release.
All assets and shares of assets, except inventory, can be traded on the AO Exchange. Asset pricing can be set through the use of Smart Contracts, and automatically traded against, or they can be entered into the Asset exchange and be traded as a stock or comodity among other types.
This can be used for selling that priceless painting you want to offload, or selling shares of your company on the public market.
* Note: Selling shares of companies and other types of trading may be regulated in your country. AO Blockchain will do its best to make it easy to follow regulations, however you should still seek legal counsel in your country before you issue any asset / security on the exchange.
Issue trades above your account value by allowing other investors to increase your total currency available for trading. Margin Trading on the AO Exchange does not have a pre-defined setting. Find a Margin Funding partner that aligns with your goals and work together for the benefit of both of you.
Enable others to help you increase your portfolio value by enabling Margin Traders to use your funds in their trading. Control rate, duration, and equity ratio to control the amount of risk you are willing to accept.
Margin Funding is backed by Smart Contracts and Channels, minimizing the risk in providing the funds beyond the fluctuation of the currency itself being traded.
Provide loans to other AO Blockchain users at rates and terms you decide. With Smart Contracts you can offer liquidity to those with assets, allowing them to take a loan from you against their own assets with minimal risk to yourself.
Give startups, family, and friends loans on flexible terms with flexible payment schedules.
Give your money to who you want, how you want.
The AO Exchange supports many types of orders, including:
- Buy / Sell
- Trailing Stop
- Fill or Kill
- One Cancels Other
- Hidden Order
- Private Orders (Dark Pools)
The above examples are the types that will be supported initially. Additional order types will be developed and built as needed.
All order types are facilitated through the smart contract system.
Take out loans against a percentage of your total account value by using Smart Contracts. The AO Exchange provides the ability to take out a "loan" against your own account value, while locking the account value into a smart contract to ensure repayment. This allows you to invest in riskier enterprises while still retaining the potential gains from your current investments.
Asset requirements for the loan and full functionality of this feature is still in the research phase.
Identity is a special feature of the AO Blockchain. It supports the ability for anyone and everyone using the AO Blockchain System to validate their identity through trusted third parties and provide a level of assurance to clientele that you are who you say you are.
Identities have many features but most importantly they allow you to share a validated, blockchain-secured identity with anyone you are doing business with, with the sharing done on your terms. All data on an identity is private unless you share that identity with someone else.
Validation can be done through third party services, or at the request of someone you are doing business with. Payment for the validation is done through the third party or the verification provider. AO Blockchain System supports verification providers similarly to currency gateways.
Validation functionality can be as simple as verifying a Public key, or as complex as full AML / KYC compliance.
AML / KYC Compliance checks are built into the AO Blockchain System and paid for by delegates who opt-in for the service. There is a compliance check fee associated with the request for a compliance check, the information can be updated on a consistent basis with payment being deducted directly from the account owner's, or payer's, AOC balance.
This fee is paid directly to the delegate who processed the validation.
Multiple validation services are being investigated for support by the AO Blockchain System in order to automate the process as much as possible
Delegates are the core of the system; they process transactions across all blockchains, and enable the high levels of security for the system as a whole.
There are 101 active delegates at minimum on the system. Delegates count will always be a prime number, and while the delegate count can go up, current delegates must vote on that change and will only be done on the basis of needing to further decentralize the network.
There can be an unlimited number of stand-by delegates, ready to take the place of an active-delegate no longer contributing to the network.
The top 96 delegates will be selected by the vote of all AOCoin holders on the AO Blockchain System. AOCoin is required across the network for everything from conducting transactions, to registering assets, delegates, and contracts.
Active delegates can be removed from delegation by the network for various reasons, described in another section, to be replaced by the highest voted for standby delegate.
Active delegates are required to pass system, network, and security performance checks on their delegate cluster every round. If they fail a check, they get a strike against them. Fail three checks and they are removed from active delegation. Once they resolve the issues that created a failing mark, they are put back into delegation if they are one of the 96 highest voted delegates.
There are a total of five permanent delegates, all controlled by AO Cyber Systems. This provides AO Cyber Systems with revenue in order to continue supporting the network over time. The owners of the five permanent delegates can be altered by a super-majority vote of the delegates. More details on this under the 'Voting' section.
Standby delegates are delegates who do not have enough votes to be in the 101 active delegates. These delegates must still pass daily system, network, and security performance checks, and be ready to go at any time.
Any account with a verified identity can become a standby delegate, and therefore an active delegate, by paying to register an account as a delegate and by passing an initial performance assessment.
AO Blockchain is built on a Delegated Proof of Stake system, giving control of who the delegates are to AOCoin holders but the power to process transactions and blocks to the delegates to increase efficiency and provide more consistent decentralization.
The system scales due to the ability of the delegates to 'cluster'. This enables a single delegate to consist of multiple machines on the same network, working in harmony to process more transactions per block. A single delegate could consist of one very powerful computer,100 weak computers working in tandem, or 10,000 containers spread across 100s of systems on the same network. Even a single vm / container using 'cloud functions', like AWS Lambda, is supported.
This enables cost effective scaling across a wide range of computing environments, giving nearly anyone the ability to become a delegate.
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