Hermes Chain White Paper 1.0

1

Hermes Chain White Paper 1.0

Hermes Chain

a one-stop sports platform based on blockchain

White Paper 1.0

2018/01

Table of contents

Abstract... 3

1. Analysis of athletic sports industry... 6

2. Market pain points and blockchain solutions... 8

2.1 Pain points solution of global sports audiences... 8

2.2 Pain points solution of global sports lottery... 10

2.3 Pain points solutions of sports stars' cross-regional broadcast... 10

2.4 Pain points solutions for investment in athletes and teams... 10

2.5 Pain points of the global sports merchandise payment... 11

2.6 Pain points sports charity...... 12

2.7 Pain points of commercial sponsorship... 12

3. Irreversible block chain technology... 13

4. The technical implementation of Hermes Chain... 14

4.1 Hermes Chain system structure design... 14

4.2 Private chain design... 14

4.3 Hermes Chain consensus mechanism...... 15

4.4 EXP standard. 17

4.5 Hermes Chain anti-counterfeiting determine design... 17

4.6 Hermes Chain data layer design... 18

4.7 Hermes Chain network layer design... 18

4.8 Hermes Chain application layer design... 19

5. Investment value of Hermes Chain... 20

6. Business development... 20

7. The economic system of Hermes Chain... 22

7.1 Exchange plan... 22

7.2 Targeted fundraising... 22

7.3Herm distribution scheme... 23

7.4 Fundraising allocation... 25

7.5 Hermes usage... 26

8. Introduction to the core team... 26

9. Project schedule...... 26

Abstract

Competitive sports industry is a global industry full of opportunity and vitality. But the traditional centralization of development patterns and the differences in political and economic systems in the region has led to the value of the various branches of the sports industry and not to keep up with the globalization of sports information.

Hermes Chain (Chinese name: 赫尔墨斯链), a one-stop competitive sports platform based on blockchain technology, designed to overturn the traditional rules of sports industry and construct an open and transparent focus on the new ecology of the competitive sports industry.

Hermes Chain is named after the Greek ancient god of competition, Hermes. The original intention was to redefine competitive sports ecology and lead the transformation of global competitive sports industry through blockchain.

To solve the problems of sports industry, the Hermes Chain team put forward a series of solutions based on the blockchain technology, and through the continuous innovation of technology and the implementation of the iterative guarantee scheme.

Hermes Chain designed the underlying protocol and foundation framework of the tunnel and implemented a multi-party phase change communication protocol. Intelligent innovative products can easily realize value recognition, exchange, transfer and transaction through this design. Execute Turing smart contracts in channels to realize complex business logic of the real world.

The Hermes Chain employs multi-dimensional component architecture, including data components, network components, consensus components, contract components, application components. The data components use the chain format data structure and distributed ledger technology to realize the business logic of value recognition, transfer and exchange.

Hermes Chain will launch multi-language versions and multi-platform support for global markets.

1. Analysis of Competitive Sports Industry

In today's world, competitive sports, as an important cultural carrier and window, focus on the pursuit of civilization and healthy life of human society. Since the modern Olympic movement was born in 1894 till today, with the progress of human civilization and the development of social economy and culture, science and technology, and as a result of changes in human life concepts, competitive sports have become increasingly become an indispensable important content in human life. And because of the great appreciation and entertainment, more and more new groups are paying attention to it, and there is a rising personalized demand in the global market.

For instance, the football industry is the world's 17th largest economy, and its annual output is worth $500 billion. Quadrennial World Cup is the jewel of the greatest crown in the football economy. The football World Cup is the third in the most valuable brand published by Forbes, with a brand value of 160 million. With the rise of China, the world’s second largest economy, the Chinese football industry chain is expanding. According to the Chinese sports industry, it is estimated that the football industry has more than $800 billion potential market growing space.

In the 2010, in the World Cup final in South Africa, FIFA announced that 700 million people around the world watched the match. There are 3.2 billion people who have been tuned to the World Cup for at least a minute, and in 2014 FIFA announced that the World Cup in Germany was about 3 billion. The number of football fans around the world can be estimated from the two figures released by FIFA. But as the world's largest sport, there is no doubt that the number of football professionals and fans involved are over one billion. Due to the large number of players involved in football are from more than 200 countries all over the world, and the fans are unable to truly realize the global integration development due to many factors such as time, region, politics and currency exchange rate. The profitable modes of competitive sports are multipoint and fully flowering, ranging from athlete training education, ticket sales, broadcasting right sales, commercial sponsorship, derivative development, sports lottery tickets, gambling and monetizing of customer data.

2. Market pain points and blockchain solutions

2.1 Pain points solution of global sports audiences

The traditional centralized purchasing mechanism has the problem of the difficulty of buying tickets, the difficulty of getting into the venue and the overflowing fake tickets. The centralized opaque ticketing system has the inevitable problem of trust in the rules of ticket pricing, statistics and the feedback of progress. Moreover, due to time, region, politics, currency exchange rate and other factors, the users of various countries cannot complete the tickets booking conveniently. After buying tickets, it is necessary to keep paper tickets that are easily lost and damaged. Some venues need to perform rigorous authentication to enter, which is extremely inconvenient.

Hermes Chain can solve this pain point through blockchain technology. The whole process of a sports event from the scheduling to confirmation of the venue to the start of the ticketing system can be carried out on the Hermes Chain. The blockchain electronic tickets can be matched with the seats and the purchasers by their self-evident.

After each phase is confirmed, it cannot be tampered with. Each ticket transaction generated in the system is valid and open to the public for inspection so as to facilitate the global sports fans to know the information on the ticket at any time. In addition, the HermesChain live-time synchronizes ticket information with all nodes. All around the world, the exclusive currency in the system is used for ticket transactions, which breaks down the inconveniences of the sports fans in the world in terms of time, space and currency exchange rates. The unique identity function of the blockchain technology will revolutionize traditional paper tickets and validate the entry with a paper ticket, saying goodbye to the age of the counterfeit tickets.

Traditional ticketing process

Blockchain ticketing process

2.2 pain points solution of global sports lottery

There is always the trust problem of the centralization operation in the lottery betting, and the existing betting mechanism still hasn't got rid of the doubt of "operation of the dark box" in the market.

Hermes Chain will use the blockchain technology to build the first decentralized sports lottery sales platform in the world. With the technology of blockchainuntampering, lottery investors are safe, fair, and transparent.

Hermes Chain applies security key authentication, blockchain browser and other advantage technologies, so that each bet can query the bonus pool amount at any time, and automatically pay out bonus by triggering the machine algorithm.

2.3 Pain points solutions of sports stars' cross-regional broadcast

Influenced by different regional policies, currency exchange rate and other factors, sports star broadcast still cannot keep up with the demand of globalization.

The business model of Hermes Chain can properly solve this problem. The data synchronization and live broadcast of the blockchain across regional nodes can also fit well and break through the restriction of the broadcast platform as the intermediary, and sports fans can make a reward to the sports stars on the block chain.

2.4 Pain points solutions for investment in athletes and teams

At present, the investment of athletes is controlled by the central club and the organization, is restricted by various aspects, the personal investment channel is severely lacking trust, as well as the right of personal investment cannot be guaranteed.

Hermes Chain is going to build a centralized investment platform for individual investment in athletes. To convert part of the time and earnings of an athlete or team into digital assets, sports fans can be their investors by purchasing the corresponding digital assets, and the blockchain can guarantee the rights and interests of every investment.

2.5 Pain point solutions of the global sports merchandise payment

Due to the large number of intermediate costs to be consumed for cross border payment, a significant price difference is caused when a sports product is sold across regions.

Hermes Chain will launch a point-to-point global sales platform for sports products. The platform will provide users with automatic price comparison. On the one hand, the product passes through the blockchain certification to guarantee the authentic products. On the other hand, the payment of the points through the blockchain point can save a large amount of intermediate costs, and the cost savings will be converted into discounts and concessions, which can be later provided to the buyers.

2.6 Pain point of sports charity

Sports charity is operated by centralized institutions, which not only consumes a large amount of labor costs, but also because of the opacity of information, the development of sports charity is greatly hindered.

Hermes Chain provides a distributed sports center, trust charity system, participants provided every charity, pools of each money flows are authentic record in blockchain, every participant can be view at any time.

2.7 Pain points of commercial sponsorship

The advertisers have been concerned about the market in the hands of the agents, and the amount of advertising is often not ideal for the false data. Hermes Chain can provide an open and transparent advertising platform, data sharing can make it possible for advertisers to trust environment for commercial advertising sponsorship.

3. Irreversible blockchain technology

At present, we are in the midst of a silent change, blockchain has brought the information from the Internet to the value of the Internet revolution.

If the existing Internet has solved the problem of information dissemination and sharing, is money to solve, then blockchain contracts on the Internet and digital assets value exchange, transaction and transfer problem. Individuals and institutions in any one of the nodes of the network, the transfer and exchange of value in a set of decentralized, trusting mechanisms built by the blockchain technology.

Blockchain technology is the use of blockchain to verify the data structure and data storage and use of distributed node consensus algorithm to generate and update the data, the use of cryptography way to ensure the security of data transmission and access, the use of automated script code intelligent contracts to programming and operating data of a new kind of distributed infrastructure and computing paradigm.

The blockchain is a super-complex distributed accounting technology that can keep records in thousands, or even millions, of stand-alone computers that work together without a single entity controlling them. With the development of the block chain technology, we will use a set of trust and verify the basic automation system to store or to exchange information and assets, block all the stuff on the chain is to trust, capitalization, and people all over the world to recognise the worth of it.The world is entering an irreversible block chain era.

4. The Technical Implementation of Hermes Chain

4.1 Hermes Chain system structure design

HermesChain to adopt dual chain design scheme of dual chain are deployed on the Ethereum network.The Hermes Chain is responsible for handling the earnings of the associated token (Herm) associated with Hermes Chain. The Herm can be used to move up and down on the major exchanges. All tokens and smart contracts are run on the mother Chain, and the tokens are in accordance with the ERC20 token of Ethereum, which is compatible with the global exchanges. The Hermes Chain sub-chain is responsible for dealing with the accounts management, payment, project progress and benefits of users' investment in sports industry.

Herm is a virtual currency in the form of a constant value transaction.

HermesChain adopts the self-designed Participation degree proof of stake consensus mechanism. Herm is freely convertible through Exchange Protocol and ETH, and Exchange Protocol is a two-way flow channel. We call the Exchange Protocol the EXP standard.

4.2 Private Chain Design

In order to make the characteristics of blockchain more convenient for sports industry, private chains (such as football chains, tennis chains, etc.) in different fields are designed according to the characteristics of sports industry structure. We chose the go-ethereum and Solc as the base platform for building the private chain. The base layer adopts the open source technology and code of Ethereum Block chain. Establish an Account system with commonality and uniqueness to save the transaction data and Herm asset data of users. All the data in the Account is saved in the block. The data will not be tampered with, so as to ensure the security of the asset. The Account will be transferred to the wallet Account by the trigger condition through the Smart Contract. Each Account is defined by a pair of keys with a private key and a public key. The account is indexed by address and the address is 32 bits. The address is derived from the public key and takes the last N/2 bytes of the public key. Each pair of private key addresses is encoded in a key file.

The key file is a JSON text file that can be opened and viewed with any text editor. The key part of the key file and the account private key can be encrypted using the password set when the account is created, and can be set to a number that is easy to remember.

4.3 The Hermes Chain Consensus Mechanism

Delegated Proof of Stake is the consensus mechanism selected and improved according to the characteristics of the HermesChain project, hereinafter referred to as DPOS.

DPOS is based on the user's behavior portrait to get a comprehensive score and use comprehensive evaluation as a reward. For example, user A has registered the account on the system of HermesChain, and conducted A series of activities such as browsing project, duration, thumb up, collecting project, forwarding, commenting, voting and participating activities in the system on the system for a period of time. The whole process of structured Data is recorded in block. Data of HermesChain. Through a series of modeling algorithms, user A is tagged with the behavior label that conforms to its characteristics. The weighted value of the comprehensive evaluation is what we call participation activity.

The relationship between the behavior tag and the user will reflect the relationship between the behavior label to a certain extent. Here we use w (P, T) to denote the number of times a behavior tag T is used to mark the user P. TF (P, T) represents the proportion of the number of marks in the user P's all behavior tags. The user 1 has labeled five for the behavioral label A, two of the behavior label B, one for the behavior label C, therefore, thetotal tag on user 1 is TF = 5 / (5 + 2 + 1).

The corresponding IDF (P, T) denotes the scarcity of the behavior tag T in all tags, that is, the occurrence probability of this behavior label. If a behavior label T has a small probability and is used to tag a user, this makes the user more closely related to the tag T. Then the system can obtain the user's comprehensive weight value according to TF*IDF*F(x).

DPOS will be a new understanding of the convergence of interactive indexes and mining, which will be more of a boost to the user's energy and participation, and to the development of the project.

4.4 EXP Standards

We refer to Exchange Protocol as EXP standard, and EXP is a conversion algorithm for the current mechanism of the anchor mechanism of currency and constant currency.

If the history of Herm is X1, X2, X3... Xn, let's take the data of 24H time, X1 plus X2 plus X3... Xn) /n =Xt.