Roxe Chain White Paper

© Roxe Instant Settlement Alliance LLC, 2020

Preface

Since early 2019, the Roxe development team has been developing “Roxe Chain,” and as of June 2020 has deployed nearly 200 code upgrades. We have completed building the infrastructure for the first two of the three stages in the ‘strategic planning’ outlined below. We are developing the core ecosystem, and are currently building the technology for the third phase. 

Our intention in developing the Roxe Chain is not to build a technically superior chain, but rather to apply the strengths of existing chains to better serve the global economy. Roxe is purpose-built to enable instantaneous clearing and settlement for asset transfers. Pragmatism is at our core.

Numerous elite technology organizations are already working on new chains, providing no shortage of sophisticated blockchain options. In order to prove to the world that blockchain can be widely used and disruptively support the economy, a practical application is needed to demonstrate that blockchain is not in an ivory tower but instead is a revolutionary, useful, and world-changing technology. We have chosen to inherit what has been accomplished thus far in the blockchain industry and effectively address a major scarcity in the blockchain industry: Application! Application! Application! 

We strongly believe that blockchain technology should make its mark in the outdated value transfer system of global payments and clearing. It is exactly this type of hybrid chain, focusing on a global payment clearing and settlement network, for which Roxe Chain was created.

 

1. Background Overview

Thanks to the efforts of the World Trade Organization (WTO) and the major economies after World War II, consumer goods have achieved free circulation worldwide, but the global circulation of financial assets has been hindered by centralized organizations. For example, buying Apple’s stock is more complicated than buying an iPhone. The key reason for the poor circulation of financial assets is the fragmentation of the global value network and the obsolescence, inefficiency, and isolation of the international settlement infrastructure. Roxe Chain is a value-exchange chain that focuses on global instant settlement services. The Roxe Instant Settlement Alliance (RISA) has proposed the new concept of Smart Proof of Ownership, or ‘Smart OPTM’ nodes maintain custody of assets on behalf of network members, and instantly settling transactions between network nodes by accounting for inter-exchange transactions and providing instant proof of ownership (Smart OPTM), mapping digital currency, fiat, and eventually securities and other asset classes into a unified model asset network. 

We believe that a completely decentralized and equivalent full-asset clearing and settlement network is essential to cryptocurrencies. Such a network will create value, eliminate centralized intermediaries and barriers, and unlock benefits for society at large. Global mainstream asset tokenization allows any person or institution to circulate their assets on-chain at any time and from any location. We will make historic improvements by establishing an asset circulation network that is as efficient as information networks are today.

Roxe Chain is a consortium chain purpose-built for global instant settlement. Roxe Chain’s core objective is to establish a simple, and efficient value transfer model. Roxe Chain’s Smart OP model applies to crypto assets as well as fiat currencies and traditional financial assets. The design is elegantly simple, ensuring relatively low intrusion to its nodes’ business and accounting systems. At present, there are already tens of thousands of crypto trading platforms, wallets, and industry solutions in the world, and in all likelihood, there will only be more in the future. These platforms generally have independent and exclusive economic and technical systems, inhibiting value from flowing freely. Roxe introduces the Smart Proof of Ownership Concept (Smart OP) to bridge the technology and value divide and achieve a low-cost open docking of existing value systems. 

The Roxe Chain is a blockchain developed by Roxe’s core development team and is the hub of the entire value network. In order to speed up the R & D progress of like-minded world-class developers, Roxe will open the source code of Roxe Chain and is committed to collaborating with external developers. 

 

2. Vision and Mission

Move value freely all over the world! 

The mission of Roxe is to build a global, self-governing community to form an instant settlement network. Online asset circulation via Roxe can extend to all aspects of society and the economy powered by blockchain technology and a Smart OP (smart proof of ownership) model. In Roxe’s instant settlement network, any organization can freely choose its own role to participate in minting, redemption, clearing, settlement, and/or transactions to achieve their business needs. 

Roxe is building a value circulation system and financial infrastructure that connects more than 200 countries around the world and covers billions of people in a legally compliant manner. In doing so:

  1. Roxe respects the source of value l for each asset, each country, and region.
  2. Roxe serves as a value circulation channel for each asset without replacing any asset.
  3. Roxe provides instant global clearing and settlement across a wide range of digital assets and fiat currencies.

3. Opportunity

We believe that the market needs the Roxe Chain now, and we are partnering with individuals and entities who share these same ideals: 

  • Globally distributed, fragmented value silos can create more opportunities only if they are connected as a whole;
  • Value itself needs to flow with the same ease as information;
  • More efficient financial infrastructure is necessary for business globalization;
  • A functioning value circulation system should not incur high costs due to friction;
  • Time is money. Liquidity creates improves fill rates and saves time;
  • Everyone should be able to enjoy the benefits of globalization; and
  • Every participant can express a value proposition in the Roxe ecosystem.

 

4. Strategic Planning

Roxe firmly believes that every asset and currency should enjoy instant value transfer, clearing, and settlement. In Roxe’s model, any authorized node can quickly generate a Smart OP for every cryptocurrency and then trade and circulate in the global market 24/7. To build a financial network with Smart OP as the proof of ownership, we are ultimately tasked with the integration of tens of thousands of heterogeneous networks and user scenarios. Therefore, abiding design principles and feasibility, the Roxe Chain will grow and develop in three stages:

A. First stage – Digital Asset Clearing and settlement network 

Today, there are more than 10,000 cryptocurrencies, with thousands of value silos, such as exchanges, investment institutions, market makers, and financial service providers. Roxe Instant Settlement Alliance will partner with credible and compliant countries, banks, and trusts through the RoxeSwap Protocol to implement the mapping of cryptocurrencies, the cross-chain value exchange of crypto assets, and the registration and distribution of Smart OP on the chain. Roxe is designed to rapidly register changes of cryptocurrency ownership via Smart OP, which is seamlessly communicated throughout the instant settlement network via Roxe Chain. At the same time, Roxe uses the XMoney protocol to connect access to liquidity, and distribute liquidity according to market demand. Roxe will provide maximum transparency and help nodes to liquidate assets, in order to improve the liquidity and utilization of digital assets.

B. Second stage – Payment clearing and settlement network

Traditional financial institutions such as banks may join the network as settlement nodes so that Roxe Chain can quickly expand the instant settlement model to fiat currency settlement. Smart OP is designed to settle fiat currency transfers the same way it does for digital assets. At any trading and settlement node with appropriate licenses, different currencies can be traded through price negotiation: RoxeSwap, a Roxe Chain network component, deploys the corresponding Smart OP to record the transfer of ownership within the global value network. Inter-bank settlement and settlement between banks and crypto platforms become efficient and smooth. With the help of the Smart OP mechanism digital currency exchanges can list trading pairs based on fiat currency (subject to local law and regulations). Cross-border remittances that use Smart OP as a medium of accounting for transferring proof of ownership will also start large-scale commercial use.

C. Third stage – Multi-asset clearing and settlement network

The currency mapping, rapid circulation, value conversion, and the fiat currency cross-border settlement function on the instant settlement network will support the implementation of multi-asset value circulation and payment networks. Roxe Chain’s network payment component will be designed to transfer proof of ownership for numerous types of assets in the value network. Payment companies will be able to integrate thousands of digital currencies and fiat currency payment methods by accessing Roxe Chain. At this stage, RoxeSwap will be able to transfer proof of ownership Smart OP for valuable securities. 

 

5. Network node

Supernode

21 “Supernodes” that join the network will provide computing power and bandwidth support to ensure efficient operations for the entire Roxe Chain network. The supernode model is extremely valuable to global clearing and settlement, as it has short block generation time, high efficiency, and anti-fork attributes. Any organization can apply to the Roxe Instant Settlement Alliance (RISA) to be a supernode. Subsequently, each supernode will benefit from continued Roxe Chain ecosystem development.

Candidate node

In addition to the supernodes, Roxe Chain anticipates having hundreds of candidate nodes. If a supernode triggers a downgrade condition (is unable to perform its obligations as a supernode in a timely manner), the top-ranked candidate node, determined by community voting, will step in. The upgraded candidate nodes will take over all the rights and interests of the downgraded supernodes.

Cross-chain gateway

Banks, exchanges, and other platforms with cross-chain settlement capabilities can apply to become settlement gateways or settlement nodes The settlement gateway supports Roxe cross-chain settlement services, and users of cross-chain gateways can perform cross-currency settlement of digital currencies and fiat currencies through the cross-chain gateway. At the same time, cross-chain nodes provide Roxe Chain with accessibility to a full type of asset. Accessing cross-chain gateways effectively increases capital utilization, reduces FX conversion costs, and grows more customers.

 

6. Technical Goals

  1. Faster transfer speed
  2. Support transfer of more types of assets
  3. More transparency via an implicit audit trail
  4. Higher security
  5. More stable operation

 

7. High Concurrency

Roxe Chain is a blockchain system architecture based on Graphene technology, which is an open-source blockchain technology mainly written in C++. It meets the needs of vertical decentralized applications and horizontal expansion through a plug-in structure. Based on a BFT-DPoS (Byzantine Fault Tolerance-Delegated Proof of Stake) consensus plugin and sharding, 

Roxe Chain solves the problems of low performance, poor security, difficult development, and difficult cross-chain communication in existing blockchain applications, and realizes the performance expansion of distributed applications.

At the same time, Roxe Network focuses on clearing and settlement services. It uses closed-loop smart contracts and provides corresponding clearing and settlement agreements and middleware components so that various types of nodes can easily and quickly access Roxe Chain.

 

8. Consensus Algorithm 

 aBFT-DPoS consensus

Using the aBFT-DPoS (asynchronous Byzantine Fault Tolerance-Delegated Proof of Stake) consensus to achieve faster irreversibility, Roxe Chain is designed to achieve confirmation of irreversibility within one second.

By adding a Byzantine Fault Tolerance algorithm to the traditional DPoS algorithm, all block producers must sign all blocks to ensure no block producer is at the same timestamp or sign two blocks on the same block height at the same time. A block, signed by two-thirds of the block producers, is considered irreversible. Any Byzantine block producer who wants to sign two blocks at the same timestamp or on the same block height will leave cryptographic evidence. In this mode, an irreversible consensus can be reached within one second. 

The asynchronous assumption-based aBFT algorithm weakens the assumptions, compared with the practical Byzantine Fault-Tolerant algorithm PBFT which is synchronization-based, which greatly improves performance, making it more practical.

Transaction as Proof of Stake (TaPoS)

Unlike the underlying data structure of other blockchains, in which the latter block contains the hash of the previous block to form the blockchain, TaPos (Transaction as Proof of Stake) requires that all transactions must contain the hash of the most recent block header. This hash has two purposes:

  1. Prevent replay of transactions on the blockchain fork, and these transactions do not include reference blocks;
  2. Notify the blockchain network that a user and its stake are on a specific fork.

Over time, all users can directly confirm the blockchain, which makes it difficult for counterfeit chains to forge because counterfeit chains cannot transfer transactions from legitimate chains, thus preventing the verifier from maliciously operating on other chains.

 

9. High Throughput

Graphene technology

The bottom layer of Roxe Chain is based on Graphene technology. It is a blockchain tool kit. At present, the Graphene blockchain library has been adopted by many well-known blockchain projects.

Graphene has the characteristics of fast transfer speed and high throughput. It is stable, powerful, complete, and easy to operate.

Region technology

Region technology is the same as sharding technology, which is a parallel computing technology. Region technology does not run in parallel within the application. Instead, it extends the network through the cross-chain concurrency technology of the sharding chain, and through the asynchronous communication to separate the authentication and execution processes.

All transactions are separated by region numbers to form a partition chain. Each partition chain is single-threaded, but multiple partition chains can be run concurrently on a node to fully utilize all the performance of each node. The performance upper limit of a single node can be expanded through clustering to achieve a high-throughput and high-scalability underlying architecture.

10. High Security

Supernode and transparent forging

The tradeoff between transaction speed and data security on the blockchain has always been a problem. If block confirmation speed is too fast, this will easily cause double payment (double-spending problem), resulting in insecure blockchain transaction data. Through the transparent forging mechanism, the nodes of the entire network confirm the bookkeeper (supernode) in advance, saving the time of searching for miners, thereby increasing the speed of block transactions and ensuring the security of transactions.

Roxe Chain plans to utilize 21 supernodes. Supernodes that cannot fulfill their duties will be delisted (e.g., the node does not generate blocks in time). The block generation order for supernodes and the auditing order for all network transactions are all automatically calculated by the system and irregularly changed, so that they can be efficiently upgraded while preventing cheating and avoiding hard forks.

Ownership model to defeat DoS attacks

DoS attacks (Denial-of-service attack) occurs when malicious attackers send a large volume of spam traffic to the network, which causes the network to be paralyzed and unable to process legitimate requests. At present, some networks have been vulnerable to DoS attacks. In comparison, Roxe Chain is less vulnerable to DoS attacks due to the ownership model. 

Network bandwidth, storage space, and computing power will be allocated in proportion to the number of platform tokens held by users. Therefore, malicious attackers have to consume the corresponding proportion of network resources held by platform tokens without disrupting the entire network. Even if many malicious agents try to create junk congestion for several large-scale network applications, this approach will ensure the bandwidth reliability and computing power of small-scale startup investment projects on the network.

Node acceptance mechanism

Roxe Chain will use a hybrid network, and will not adopt a fully open approach for now. Acceptance mechanisms will be implemented for supernodes, candidate nodes, and cross-chain gateways. Nodes must comply with the mandatory security control standards of the RoxeSwap protocol. Only those who pass the screening can access and enable the node. At the same time, the node also needs to set an IP whitelist and visit policy to limit the direction and path of communication within the network to ensure maximum security within the chain.

 

11. High Scalability

Plug-in

Roxe Chain uses the Graphene code base as the basic  architecture and implements a flexible modular plug-in mechanism. A layer of template classes is inserted between the abstract plug-in class and the specific function class to decouple the inter-plugin dependent calls from the specific function class. This is conducive to the cohesion of plug-in functions and the expansion of new plug-ins.

The plug-in-designed Roxe Chain is highly decoupled, and the function modules can be independently developed and combined freely as needed. At the same time, a variety of functional middleware plug-ins and components based on Roxe Chain will be launched in succession.

Smart Contract

Roxe Chain smart contract uses Web Assembly (WASM). Web Assembly is an emerging and high-performance virtual machine. It has an LLVM compilation backend and is compatible with all programs written in high-level languages ​​such as C, C ++, and Java. The learning cost for developers is low. 

At the same time, WASM byte code is flexible, which can be compiled into machine code for execution or can be directly executed using an interpreter, with both compatibility and performance. The advantage of compilation execution is that it has fast execution speed. However, the disadvantage is that every time the smart contract is updated, the witness’ server must recompile to generate binary machine code, which is generally used for deterministic smart contracts that are executed multiple times. The interpretation and execution are just the opposite in that no pre-compilation is required, but the execution speed is much lower than that of compilation and execution. It is generally used for debugging or temporary smart contracts.

Independent architecture of virtual machine

Roxe Chain adopts a virtual machine independent architecture and supports multiple virtual machine sandbox operations. Any virtual machine that meets the conditions of performance, certainty, correctness, and sandboxing can be connected. In addition to Web Assembly, it currently also supports the Ethereum Virtual Machine (EVM) that runs on existing Ethereum contracts.

Based on the EVM, any smart contracts on Ethereum can run on the Roxe Chain, with minor modifications. In addition, projects on Ethereum can be smoothly migrated to the Roxe Chain.

 

12. Account System

Easy-to-use account system

With Accounts, a readable account system, 2-32 human-readable characters can be used to create an account. The name is chosen by the account creator. The account creator must set aside RAM space for storing new accounts until the newly created account pledges the token to obtain RAM space.

Permission management based on roles

Roxe Chain provides an Assertion permission management system that allows accounts to exercise fine-grained and high-level control. Identity authentication and permission management are standardized and separated from the application business logic so that permission can be managed in a general way and provide the possibility for performance optimization.

Roxe Chain also supports multi-account control, which provides security for the account and reduces the risk of capital loss from hacker attacks. Through named message processing groups, it is even allowed to define what types of secret keys or accounts can send a specific message type to another account. Named message processing groups can be referenced when other accounts configure permission levels. Mapping can be completed between permission levels and message processing groups: Assign a message processing group to a certain permission level, or conversely, define various message processing groups at certain permission levels.

The default permission groups are Owner and Active. Owner can do anything and is generally used for cold backup. If Active permission is lost, Owner permission can be used to restore that permission. Active permissions can do everything except modifying Owner. Regular business could be handled with Active permission. All other permission groups are also derived from Active permissions.

Secret Key Recovery

Roxe Chain provides a secret key recovery mechanism, if an account balance becomes zero after the private key is stolen or the password is forgotten.

On other chains, when the secret key is lost, the entire account is also lost. However, the secret key recovery mechanism based on Roxe Chain can recover the key using any Owner permission key and a designated partner within 30 days. In this case, the partner cannot recover the key without the assistance of the owner, and the partner will not participate in any daily transaction.

Roxe Chain protects account assets through a safe combination of accounts, key-pairs, wallets, and authorities & permissions.

 

13. Cross-chain

Cross-chain communication

In order to promote cross-chain interaction on blockchains, Roxe Chain simplifies the generation of Proof of Action existence and Proof of Action sequence. These proofs are combined with the application architecture designed around message passing, which hides the details of cross-chain communication and verification proofs from the application developers. What presents to developers are high-level abstractions. 

Merkel proof

Roxe Chain uses the “Merkle proof” as Proof of Action existence to achieve blockchain interaction. The Merkel tree is also called a hash tree, whose characteristic is that any changes in the underlying data will be passed to its parent node, till the root of the tree. The use of Merkel Proof for Light Client Verification (LCV) is to produce a relatively lightweight proof of transaction existence, and others can verify the proof by tracking a lightweight data set, that is to prove a specific transaction is included in a specific block, and this block is included in the history of the specific blockchain that has been verified.

 

SegWit

SegWit (Segregated Witness) means that, after the irreversible inclusion of a transaction in the blockchain, the signature of the transaction is no longer relevant. Once the transaction is tamper-proof, the signature data can be cut off, and everyone else can reach the current state. Since signature data occupies a large part of most transactions, SegWit can significantly reduce disk usage and synchronization time.

The same concept can be used in Merkle Proof in cross-chain communication. Once a proof is accepted and irreversibly recorded on the blockchain, the 2kb file of the sha256 hash, used as a proof is no longer needed to reach the correct blockchain status. 

 

Cross-chain asset mapping

Roxe Chain uses both sub-chain and side-chain technologies to achieve cross-chain interaction, transactions, and asset mapping. It lifts the technical limitations of isolation between main chains and gradually realizes truly decentralized mapping technology.

Sub-chains are formed by the main chain in a logical manner. These sub-chains share supernode computing resources and interact through a cross-chain mechanism. Each adaptor sub-chain is connected by a cross-chain main chain, and there is no trust relationship between each sub-chain, but the trust is transmitted through the main chain. The adaptor chain and main chain interact according to the protocol to achieve trust transfer and transaction transfer.

Like a hard fork, the sidechain is an independent chain directly initiated by Roxe Chain source code. The sidechain has its own committee, computing resources, and tokens. The sidechain anchors a token on a certain original chain, verifying data from other blockchains. It enables proof of ownership to be moved between different blockchains, building a new and open platform, such as creating micropayment channels under the main chain, etc.

Roxe Chain will continue to improve the application of cross-chain technology on different platforms, use decentralized methods to provide custody mapping for more assets and provide a more secure, reliable, and trusted infrastructure for asset custody.

 

14. Special Network

Closed smart contract

To maintain the business efficiency and speed, and at the same time to ensure the purity and security of the instant settlement network, Roxe Chain does not support open smart contracts for now, and all basic services are supported by the accepted nodes and chain modules.

Based on the ecosystem development plan and the Roxe Chain business requirements, corresponding smart contracts will be released to the chain only after they have been approved by the management committee, and all contracts on the chain should undergo security audits.

Trust mechanism

In the Roxe Chain, settlement nodes follow the RoxeSwap Protocol to audit the asset mapping request. Meanwhile, Roxe not only provides technical capabilities, but it also contains a series of authorization and auditing mechanisms to ensure all business of authorized nodes will be periodically audited. If nodes fail the audit, Roxe Chain would initiate a credit adjustment as an incentive mechanism for nodes.

Distributed Depository Mechanism

The distributed depository mechanism is the basic service of Roxe Chain. All mapped currencies will be escrowed into the distributed escrowed-asset pool and managed by the corresponding settlement node. It accepts triple layers of supervision from other nodes, the Roxe Instant Settlement Alliance, and audit institutions. When the user converts the Smart OP back to the original currency, the nearest (shortest time, lowest price) settlement node will execute and transfer currency from the corresponding custody node.

Unified KYC and Fast Verification

Each node will have KYC (Know Your Customer) requirements, with requirements varying in different regions of the world. At the same time, Roxe Chain will also recognize the behavior of the same user in different nodes, share security information among nodes, and maintain blacklists. Roxe Chain will also build a self-learning trading mode detection based on user behaviors, which can identify and prevent suspicious fraudulent activities.

 

15. RoxeSwap

Smart OP

Roxe Chain provides proof of ownership for various asset types that are authorized transactions that are passed on-chain through cross-chain asset mapping so that assets are free from geographical restriction and delayed flow. In this way, Roxe Chain achieves rapid clearing and settlement of various assets. This type of mapped asset is called Smart OP.

In addition to common digital assets and fiat currency assets, Roxe Chain’s namespace can also be used to create specific-use areas for assets, and even divide the same assets into namespaces to achieve the isolation of asset transaction, clearing and settlement under certain scenarios.

RoxeSwap Protocol

Roxe uses the RoxeSwap protocol to manage complex asset networks and value transfer relationships. Any approved currency can be transferred via Smart OP through RoxeSwap. All transactions, transfers, and other business operations that occur in the value network are with Smart OP. 

RoxeSwap Middleware

In addition to the RoxeSwap protocol, Roxe Chain also provides nodes with secure RoxeSwap middleware components in order to quickly access settlement nodes. RoxeSwap middleware is a set of infrastructure components based on the RoxeSwap protocol, including asset registration component, rapid mapping component, hot and cold wallet component, smart contract component, security authorization component, node verification component, credit fast settlement component, asset access components, audit components, etc. The nodes can be used in combination according to the access form, method, and service content.

RoxeSwap can also be used as a storage infrastructure. The fast open ledger can realize such functions as low commission, high concurrent throughput, and fast transaction confirmation.

 

16. Clearing Protocol

XMoney Fast Clearing Agreement

The XMoney protocol is a fast-clearing protocol on Roxe Chain.

Since nodes often provide clearing for the same user (i.e. user transfers between exchanges), in order to improve the efficiency of clearing between nodes and the speed of funds transfer between different nodes of the same customer, nodes with XMoney clearing agreement can accelerate the instant clearing of assets.

The XMoney agreement has formulated various execution scenarios and specifications under fast clearing. At the same time, authorized nodes have priority clearing rights and fast pre-settlement privileges.

Executing the same settlement protocol helps regulate the settlement agreement between nodes, reducing the difficulty of communication between the new node and other nodes, and making the settlement between nodes faster, clearer, and more standardized.

 

17. Utility Token

RISA intends to create a native digital cryptographically-secured utility token for use on the Roxe Chain. This token would be used solely as the primary utility token on the network.

This would provide a convenient and secure mode of payment and settlement between participants who interact within the ecosystem on the ROXE Chain. It would also function as virtual crypto “fuel” for using certain designed functions on the Roxe Chain, providing the economic incentives which will be consumed to encourage participants to contribute and maintain the ecosystem on the Roxe Chain. The token would also provide an economic incentive to promote work contribution from nodes and allow holders to vote on features of the platform (such as approval of new node applications and resolution of disputes).