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2019-ver-3.0 Whitepaper Jan C. Liz-Fonts Decracy a Decentralized Global Revolution Stealth Mode Decracy Confidential

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Page 1: Decracy Decracy a Decentralized Global Revolution

2019-ver-3.0Whitepaper

Jan C. Liz-Fonts

Decracy a Decentralized Global Revolution

Stealth Mode

Decracy

Confidential

Page 2: Decracy Decracy a Decentralized Global Revolution

Abstract 6

Legal Disclaimer 4

The Faults In Traditional Encryption 7

The Attempts At Developing Next-Generation Encryption Using Biometrics 9

Decracy ‘X’ ID: The true Solution to Secure Biometric Encryption 11

How Decracy ‘X’ ID is Technologically Structured To Empower Advanced Biometric Security 11

Revolutionizing Privacy In Decracy 14

Decracy Private Smart Contracts 16

Decracy Private Storage 15

Maintaining Unlinkability in DCA transfers 26

Proof of Value Creation Consensus 28

Decracy Ecosystem 30

Decracy P- Multi-Asset Conversion 30

Decracy ‘X’ Citizenship 31

Decracy Freedom Clinic 32

Additional Decracy Features 33

Coin Market Cap 34

Team 35

Roadmap 36

Conclusion

Reference List

36

37

xBio-SaHZK Procedure Overview 22

Decracy Private Transfers 16

D e c r a c y

Page 3: Decracy Decracy a Decentralized Global Revolution

By reading further, you accept our legal disclaimer and terms and conditions.

Legal Disclaimer Terms & Conditions

D e c r a c y

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D e c r a c y

Legal Disclaimer

Please, carefully read the information contained in this document and pay special attention to the “Terms of Use and Risk Factors” section. If you have any doubts as to what actions you should take, we recommend consulting your professional advisor(s).

The Decracy contribution event represents a voluntary contribution towards the execution of this product vison by its current and future team. This document is intended for informational purposes only and does not imply any elements of a contractual or legally binding relation-ship.

The primary purpose of this document is to present our company’s product. Despite the efforts we make to ensure accuracy and relevance of the information provided in this document, this information is not professional advice and cannot be interpreted as provid-ing such advice. We do not guarantee, and do not accept any kind of legal responsibility arising from, or related to the accuracy, reliability, relevance or completeness of any infor-mation contained in this document. Potential contributors of the Decracy project shall contact independent professional advisers before relying on the information provided therein, to make any contributions, enter into obligations or conduct transactions based on the information contained in this document, since all information is published for informa-tional purposes only.

A DCA utility token is not a security, digital currency, commodity or other financial instrument incorporated within any jurisdiction, including a jurisdiction where potential token holders reside. This document is not a prospectus or a quotation, it does not serve as a securities offer or a request for investments in the form of securities within any jurisdiction. We do not provide any opinion or advice regarding the acquisition of any DCA utility tokens, and the fact that we are providing this document shall not be used as the basis or shall not be relied upon in matters related to entering into agreements or making financial decisions. The document does not oblige anyone to enter into any contracts, take legal obligations in regard to the support or contribution of the Dedracy project or DCA tokens, nor accept any cryptocurrency or any other form of payment.

Page 5: Decracy Decracy a Decentralized Global Revolution

D e c r a c y

The DCA utility token does not grant any direct equity stake nor profit sharing. It does not represent an ownership right or claim in the Decracy ecosystem, revenues or intellectual property, either present or future. Despite Decracy team’s best efforts and diligence to bring this project forward, all contributors should be aware that their contributions are not refund-able and accept the inherent risk of project failure at any stage of development.

This implicit risk is associated with any and all uncertainty of backing cutting-edge techno-logically-focused entrepreneurial projects, and can be affected by either internal or external factors that are out of the control scope of the team. Additionally, contributions may be subject to any applicable compliance regulations. The DCA token can be used in the Decracy platform, with a corresponding utility value inside such ecosystem. The DCA token does not qualify as a security and does not provide a contributor equity share in the legal structure of any of the Decracy entities.’

The text of this document in the English language takes precedence as the main official source of information about Decracy services and DCA Utility tokens. Translation of this document into other languages is provided for informational purposes only.

Page 6: Decracy Decracy a Decentralized Global Revolution

D e c r a c y

AbstractPrivacy, freedom, equity, security, and innovation have been essential to life and the overall

globe since creation. For countless centuries, the great absence of such essentials has

directly affected and defiled everyday living beings and the ever-workings of society.

With those in lesser-of areas experiencing such effects at an unimaginably higher rate.

By witnessing the absence and failure that is being experienced within the realms of

freedom, democracy, equity, and privacy, Decracy has committed itself and has taken

the crucial initiative to advance, nurture, and evolve our society through the paramount

development of an eco-system that is inclusive of everyone. An Eco-system which is

designed to focus on unseen levels of Privacy, interoperable private smart contracts,

application development, fast and fee-less transfers, and Global identification,

authentication, and access. Our Decracy eco-system is focused on creating an

immense shift in all matters which are at the direct core of our global society and have

been absent and missing the everyday life of many.

Through this vision, Decracy is bringing forth the truly vital breakthrough which will realize a

future of security, freedom, privacy and democracy. An Eco-system that enables the every

day person, creator, and developer.

Page 7: Decracy Decracy a Decentralized Global Revolution

D e c r a c y

The Problems withTraditional Encryption

All forms of encryption can be divided into two encryption structures; asymmetric or

symmetric cryptography. These two encryption structures can be found in nearly all virtual

environments, though, to the majority, it is a detail that is very much unknown. Below, we

explain the difference between such the two and the downfall that is present within the

technological structures that they are built upon.

Symmetric cryptography, or symmetric-key encryption, functions by a single cryptograph-

ically provided key being utilized for the encryption and decryption process of the access-

ing of data or information. As shown below. [1]

While on the other hand, asymmetric cryptography is quite the opposite of symmetric

encryption. It functions by utilizing not only one key but a pair of keys: a private one and a

public one. Being the same encryption structure that is seen in todays blockchain technology.

[2]

A4$h*L@9.

T6=#/>B#1

R06/J2.>1L

1PRL39P20

ncryptionE ecryptionD

Same Key

Symmetric Encryption

SecretKey

SecretKey

Plain text Plain textCipher text

Page 8: Decracy Decracy a Decentralized Global Revolution

D e c r a c y

The problem that is found in both of these models, whether it be asymmetric or symmetric encryption is the blatant level of risk and vulnerability at play due to the open handling of all sensitive and powerful encryption details which is required to access any information, data, or profile. It opens the handlers of such encryption, as well as the information, data, asset, or profile, to a variety of potential misfortunate and disastrous malicious acts.

From clear history, it has been shown that such encryption methods enable the potential for great ruin that, many times, are out of the true proprietor’s control. Things such as the displacement, disappearance, or hijacking of such encryption detail, passphrase, key, or password. Creating the ability for an attacker to obtain another user's private credentials, with minimum to medium effort, and position themselves as sole controllers of whatever theymay find even though such profile, items, asset, valuables, account, data, or information, does not pertain to them. Thereby leaving the true proprietor at an inconceivable loss.

Loveyou,Granny

Loveyou,Granny

AK#4Zov2

+s=T@Y/JH

Public key Private key

EncryptionAlgorithm

EncryptionAlgorithm

Asymmetric Encryption

Plain text Plain textCipher text

“Any valid transaction bearing a valid signature will be accepted by the Bitcoin network. At the same time, any person in possession of a private key can create a valid transaction. These two facts taken together mean that someone knowing only your private key can steal from you.”[3]

In hijacking cases of notable figures in the blockchain space, the community is time-and-time againreminded of just how vulnerable current blockchain users and private keys are, and how cautious one must be when storing these sensitive private key details.

“Many avenues are open to thieves who steal private keys. Two of the most popular are storage media and communications channels. For this reason, extreme caution must be taken whenever storing or transmitting private keys.”[3]

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D e c r a c y

Still, even when a user makes the progressive change towards being more secure with their sensitive information, it does not fully guarantee their safety. With asymmetric or symmetric encryption models being at the direct core of the framework which holds their sensitive data, to guarantee safety when dealing with private keys, passphrases, and passwords, one would need to ever-continuously ensure that they are without mistakes each and every time they come into any contact with the environments of the virtual world.

“Software wallets usually store private keys in a “wallet file” on the main hard drive. Wallets often place this file in a standard, well-known directory, making it an ideal target bitcoin-specific malware.”[3]

The attempts to birth a true military-grade biometric encryption such as fingerprints, iris scans, facial recognition, vein patterns and/or a heartbeat in recent times has increased. The reason for why such a solution is being sought is due to the fact that in such finding, a needed globalbreak-through would be realized. One that would enable the reality of users no longer needing toremember or hold any sensitive details in order to access any encrypted instances (profiles, accounts, wallets, etc). The development of such a technology, once and for all, would extinguish the every-day misplacement of keys, passphrases, credentials, and passwords. The reason for why entities are still continuing to design biometric security solutions is due to the widely known truth that the ‘solutions’ available today are flawed in their structural design, concept and system.

As headlined in the global media, all biometric solutions available today are susceptible to being spoofed, jeopardized, and manipulated, through medium-scale efforts. The most critical fault found in their technological structures being the inexistent possibility to create an ever-updating/changing biometric credential which can allow one to regain security if ever they are ever compromised. Meaning that if your biometric was to ever be compromised, there would be no way for you to re-establish a safe and secure (new) reading of your biometric, which would leave the old (compromised reading) to be nugatory and ineffective.

“But there are problems with using biometric features: first, they can be compromised and once compromised, are unchangeable.”[4]

The Attempts of Finding TheSolution To AdvancedEncryption using Biometrics

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D e c r a c y

Humaniq, a blockchain project that relies on facial and vocal biometrics is known to be vulnerable to spoofing. Even facial recognition solutions adopted by major mobile phone and computer providers have witnessed their systems be bypassed through spoofing. Vocal recognition is also heavily prone to being manipulated through simple morphed recordings that can give any attacker access to an instance that was meant to be secure.

“The team at the Vietnam-based company was able to unlock an iPhone X using a mask made out of a 3D-printed frame, a handmade silicone nose and some 2D pictures layered on top of the mask. The whole experiment used only about $150 worth of materials”[5]

“The potential risks are obvious: If your phone requires your voice to unlock it, an attacker with some audio of your voice could do it.”[6]

ID2020 plans on using biometrics, such as fingerprints, and iris scans as biometrics, a project in which both Microsoft and Accenture have contributed to.

“The tool, developed in part by Microsoft and Accenture, combines biometric data (like a fingerprint or an iris scan)”[7]

With fingerprints effortlessly being able to be forged, and with human fingerprint being left behind on just about anything one touches, it places this form of biometric ‘security’ as one of the most vulnerable of all.

The Key, another blockchain identity project, also aims to use fingerprints as a biometric, even though the vulnerability and security risk is inarguably evident.

“It turns out that even fingerprints can be spoofed with just a little bit of kids’ modeling clay.”[8]

And iris scanners. One of the latter ‘security solution’ are prone to being easily spoofed through the simple use of a picture (and contact lens).

“Starbug is able to take an infrared picture of a person’s face using the night mode setting on a regular point and shoot camera. Print it out on an ordinary laser printer and it fools the camera by placing a contact lens over the image to give it the appearance of an actual human eye.”[9]

Even vein recognition can be spoofed with ease through the basic utilization of tools such as a paperclip and pen.

“Swiss researchers have now found a way to spoof a vein recognition device”[10]

Page 11: Decracy Decracy a Decentralized Global Revolution

Decracy ‘X’ ID : The Solution toSecure Biometric Encryption

Decracy ‘X’ ID TechnologicallyEmpowered To ProvideAdvanced Biometric Security

D e c r a c y

And we don’t feel it’s complicated to understand how easy one can spoof heartbeat.

With the clear understanding that each available biometric solution today is unusable, at Decracy we dedicated ourselves to birthing a solution that was true in revolution and second to none.

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D e c r a c y

Decracy X ID: Identification & Authentication Procedure

Fingerprint Minutiae Data Minutiae Map Encrypted Data

1010 1110 11011111 0010 00001010 0101 00110011 0110 1001

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D e c r a c y

Inside a users data template, a user will be able to find all transaction details and all RaH and SaH pertaining to them which will be discussed about more in the upcoming chapters. It is important to note that no decrypted (visible) data pertaining to your biometrics will be stored in any manner that is accessible to any party or parties other than yourself. With the military-gradeDecracy storage platform, all biometric data are specially stored in a distributed fashion whichdoes not offer the structural ability for any node runner to have access or view of the full data file.

Identification Procedure toretrieve Data Template

Data Template isencrypted but theirDecracy ‘X’ ID has publicalong with their Node RaH

User gains accessto their decrypted

wallet/template

Decracy Network

Authentication procedure to decrypt

Data Template

Decracy ‘X’ ID Hashis sent to

User authenticates access to their Data Template

Page 14: Decracy Decracy a Decentralized Global Revolution

Obtaining Privacy in Decracy

D e c r a c y

The Decracy ecosystem has been designed inside and out with the profound mission of true unflawed privacy in mind. Decracy has constructed the Decracy Privacy Force (DPF) which includes critical framework components that ensures the unparalleled workings of privacy, security, and freedom within the Decracy ecosystem.

The unrivaled Decracy Privacy Force incorporates 3 different privacy pillars that, together, create the reality of a military-grade framework which is free of security and privacy flaws.

The first, and most crtitical, component of the Decracy Privacy Force, acknowledged as the foundation of Decracy, is the Decracy Private Storage platform. This is the heart of the Decracy framework, it empowers and enables the functions of all other Privacy forces, making it essential to all Decracy resources. The second component is Private Decracy Smart Contracts. With direct utilization of the Private Decracy storage, the Private Decracy smart contracts enables all creators and developers to build Private applications that are fundamentally flawless in regards to security and privacy. The third DPF component is the unrivaled Decracy Private transfers, which fuses countless cryptographical methods into one to realize un-faulty, un-flawed, and unparalleled, private transfers. Outperforming all other ‘privacy’ digital currencies. In the end, the DPF comes together and establishes a military-grade force which positions Decracy to influentially empower Global equity, securi-ty, and freedom.

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D e c r a c y

6.1 Decracy Private Storage

The revolutionary Decracy Private Storage is designed as the heart of the Decracy ecosys-tem, essenced as the foundation of the privacy decentralized workings of Decracy. The Decracy storage guarantees next-generation privacy through the incorporation of distribut-ed hashtables technology for the storing of secret-sharing schemes. With the core utilization of distributed hashtables for the workings of secret-sharing instances, Decracy is able to ensure a scalable and private-centric storage platform by using such design to organize all incoming files, data, and code, and splitting such data, to be randomly distributed amongst the network-wide storage node runners. This function and framework is what enables all files, smart contracts, decentralized applications, codes, data, regardless of size, to be private, secure, and unrestricted, in a manner which is globally secure and scalable.

With this Decracy Private storage, Decracy advances over all the approaches seen in current Blockchain storage concepts (which requires for all node participants to hold, view, access, and download, the entirety of every data that it hosts), and we instead focus on a solution that places privacy as the main functionality in the core operations.

The Decracy Private Storage would visually look like this:

Decracy Private Distributed Storage Procedure

Other Blockchain Infastructure Storage Procedures

Page 16: Decracy Decracy a Decentralized Global Revolution

6.2 Decracy Private Smart Contracts

6.3 Decracy Private Transfers

To fully grasp how privacy transfers are powered in the Decracy ecosystem you must first understand hashing, zero-knowledge proof, homomorphic encryption and Range Proof.

For the sake of your enligthenment, we break down the fundamental core of each technology.

With transfers in Decracy, we designed a system which champions all other anonymous digital assets. Our system powers flawless privacy token transfers through utilizing Biomet-rics and Zero-Knowledge Proof; which allows users to prove that they are the owner of their accounts, data, and assets (tokens), without having to reveal the secret of their Identity.

This procedure is known as xBio-SaHZK. Through the use of our newly designed SAR Proce-dure, the use of Homomorphic Encryption, salting, hashing and Range Proof, Decracy ensures that all transfers that take place within our ecosystem are indestructibly anony-mous.

Private Decracy Smart contracts are powerfully designed by utilzing a revolutionized cryp-tography methodology called ‘secure computation’. Known otherwise as Secure multi-party computation or ‘MPC’.

The inclusion of ‘secure Multi-party computation’ cryptography within the workings of the Decracy Smart contract platform is what technologically empowers for Decracy developers to jointly compute functions over their smart contract inputs while such inputs are kept private to the rest of the network, thereby birthing the never-before realized ability for such developers to achieve a fully-functional and computer-intensive decentralized application. One which includes scalable private computation at it’s fundamental core.

Through this state-of-the-art solution, Decracy offers all the necessary to enable developers, organizations, entities, and creators, to achieve optimum privacy within their Decentralized applications, websites, and smart contracts. A possibility that, before, was not available.

D e c r a c y

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D e c r a c y

A hash function is where a computer takes an input of any length and content (e.g. letters, numbers, and symbols) and uses a mathematical formula to chop it, mix it up, and produce an output of a specific length[14].

To allow you to gain a better understanding, we will outline examples of how such hashing function works. The goal is to show how, through hashing, any data size (in this case: message) can be outputted to a specific length of data. For this exercise, we will use SHA-256 hashing.

As you can see, in the case of SHA-256, no matter how big or small your input is, the output will always have a fixed character length of 64. Additionally, any particular input will alwaysprovide the same hash output. Ex: ‘Hi’ will always produce the same SHA-256 Hash. Though,If you make even the slightest change in your input, the change in such output will be huge. As further exampled below.

Even though you only changed the case of the first alphabet in the input, look at how much that has affected the hash output. This is a critical function because this property of hashing leads to one of the greatest qualities of the blockchain, its immutability[15].

How is Hashing currently used?Hashing is used almost everywhere on the web in order to protect sensitive information. When you register onto a website your password is always saved in a hashed form.

Example: If your password is ‘123456’ it’s output return will always be of the same hash value.

What is Hashing?

Input HASH

Hi 3639EFCD08ABB273B1619E82E78C29A7DF02C1051B1820E99FC395DCAA3326B8

Welcome 0E2226B5235F0FF94A276EB4D07A3BFEA74B7E3B8B85E9EFCA6C18430F041BF8

Input HASH

This is a test C7BE1ED902FB8DD4D48997C6452F5D7E509FBCDBE2808B16BCF4EDCE4C07D14E

this is a test 2E99758548972A8E8822AD47FA1017FF72F06F3FF6A016851F45C398732BC50C

Input (Password) Output (Hashed Value)

123456 8D969EEF6ECAD3C29A3A629280E686CF0C3F5D5A86AFF3CA12020C923ADC6C92

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Input Output

Password Hash Value

123456

Salt

985209 A0D256CEDFD9015D262391E1B1E14140A209959DB86D964D623AD3BB96B51C5C

D e c r a c y

Hashing is also the main function in Bitcoin’s PoW consensus algorithm and in mining. It is what ensures Bitcoin’s security. PoW was designed to require tasks that are very difficult to perform, but easy to verify. With PoW and mining, hashing was deemed the most efficient way to accomplish such a goal. Note, that in Bitcoin’s consensus algorithm, finding a successful hash is an entirely arbitrary task that doesn't accomplish anything much in itself. The only purpose of finding a small hash is to make mining difficult, which is fundamental to Bitcoin’s security[16].

A salt is random data that is used as an additional input to a one-way function that "hashes" data, a password, or passphrase[17].

For anyone that may know what ‘123456’ is, they would always be able to identify what its’ hash function and ‘data/output’ is.

But now, let’s say that we decide to salt your password with a random string, we would be provided with a new hash.

Defending against dictionary attacks or against their hashed equivalent, a pre-computed rainbow table attack.[17]

What is Salting?

In cryptography, a zero-knowledge proof or zero-knowledge protocol is a method by which one party (the prover) can prove to another party (the verifier) that they know a specific value(we will use value ‘x’ as an example), without conveying any information apart from the fact that they know the value of ‘x’.

What is Zero-Knowledge Proof?

Input (Password) Output (Hashed Value)

123456 8D969EEF6ECAD3C29A3A629280E686CF0C3F5D5A86AFF3CA12020C923ADC6C92

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Monday 6912akjhsKShdkQ9QOAQLJADJHLhakjhwaLasdQ12014kADW

Tuesday Ajkhdqi981NBA79Ada763Ias7321KAhd8D8Ad824817jhajw72

Wednesday ajsdLDW981KA577AJbdakKA8749AKajksdnMA46ajs76579j

Thursday 98127KJHKAD798adsa87bGJH58abU876avSDGkkakjhs8JA

Friday KAd9a97299aK6834k8924ajf768JABFDkala765798ahAadk

D e c r a c y

For example, say someone approaches you and states that they can predict harm, then claims that 1 random person will be harmed in front of your eyes each day for the next 5 days (Monday – Friday).Then lets say such ‘Prover’ (the one who predicts harm) wishes to prove such thing to you (without revealing the names of the people who will be harmed).

The way ‘The Prover’ could accomplish this would be by providing you with a list of 5 Hashes. Each hash containing the encrypted name of the random person to be harmed on that pertaining day,

Now, as these are totally random people, you can’t attempt to find hashes of random names in expectancy of finding the correct hash and then save such individual. Nor, can you theoretically go around preventing the harm of everyone that crosses your path, over the next 5 days. So in orderfor you (‘the Verifier’) to know who it is that will be harmed over the coming 5 days, you will simply have to wait patiently and verify the identities (names) of each person that, day-by-day, will be harmed in front of you.

How has Zero-Knowledge Proof been used in Crypto?zk-SNARKS utilizes it’s own form of Zero-Knowledge Proof in ZCash, it’s goal is to validate and prove transactions to be true without revealing the sender’s address, the receiver’s address, or the transaction amount[18].

Monday John Doe

Tuesday Alan Smithes

Wednesday Richard Roe

Thursday David Agnew

Friday Jane Roe

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D e c r a c y

Homomorphic encryption is a cryptographic system that allows for computational changes to be performed on encrypted data without decrypting such data.[19]

To better allow you to visualize the working of such function, lets create an instance, an example. In this instance, lets say 3 classmates are gathered together and their teacher makes a request for all (3) classmates to write their darkest secret into one single document, or paper. Via traditional encryption methodologies, the way this would go would be that Classmate A would begin by writing down his secret, he would encrypt the document, then pass it along to Classmate B. Classmate B would then receive the document, decrypt the document, add his darkest secret, and then proceed to re-encrypt the document and pass it along to Classmate C. Classmate C would then, again, decrypt the document, add his darkest secret and re-encrypt it, then finallyreturning the document back to the teacher.

Through this traditional-encryption route, the result of using such method would have meantthat Classmate B would have had the opportunity to view classmate A’s darkest secret, In the same scenario, Classmate C would have had the opportunity to view both Classmate A&Bs darkest secret. In the end, no longer making what they’ve written a ‘secret’ and stripping all classmates of their privacy. All due to the structural design of the encryption model utilized.

What is Homomorphic Encryption?

AEncrypted

Data

DecryptRe-

Encrypt

DecryptRe-

Encrypt

B

C

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What is Range Proof?

D e c r a c y

If Homomorphic encryption was utilized, the classmates would have all been able to view and write into the one, single, document, without ever being able to view the secrets of any of their former classmates. Having therefore been able to prevent the result in the first instance.

How has Homomorphic Encryption been used in Crypto?Zcash and Monero both use Homomorphic Encryption in order to hide the sum of funds being transacted by users on the Network.

Range proof is a form of commitment validation that allows anyone to verify that a commitment represents an amount within a specified range, without revealing anything else about its value (known as the secret value). For example, a simple range proof can be used to validate that someone’s age is between 28 and 52 years old without actually revealing the exact age of that person.

EncryptedData

EncryptedData

C

EncryptedData

EncryptedData

A

B

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6.4 xBio-SaHZK Procedure Overview

2 2

D e c r a c y

How has Range Proof been used in Crypto?This has important ramifications for validation of confidential transactions. Within an ‘anony-mous’ cryptocurrency such as Monero, it is used to verify that a payment amount is positive, without actually revealing the amount transferred in the transaction.

Decracy’s Privacy is obtained through Bio-SaHZK, which is short for Biometric Salt Hash Zero-Knowledge Proof; the procedure of Bio-SaH will be explained in detail below.

In Bio-SaHZK, a list of mathematical files are generated, which are constructed from a users biometrics, obtained through the Decracy ‘X’ ID readings. These mathematical files that pertain to a users biometrics are then hashed (as we previously learned, a hash is a function where a computer takes an input of any length and content and uses a mathematical formula to chop it, mix it up, and produce an output of a specific length). This produces H1.

After a user has obtained H1, it will then be salted and hashed again (as we learned a salt is random data that is used as an additional input to a one-way function that "hashes" data, a password or passphrase). This produces H2.

Upon H2 being produced, it will proceed to be salted and hashed again to create H3.

As we know Zero-Knowledge Proof is a method by which one party (the prover) can prove to another party (the verifier) that they know the details of a value (value x), without conveying any information apart from the fact that they know the value x. In Decracy’s case, we use Zero-Knowledge Proof in order for the ‘sender’ to prove to the ‘receiver’ that they are the owner of H3 without ever revealing their identity H1.

Hash (H1 || salt) = H2

Hash (H2 || salt) = H3

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And Zcash, who hides specific transaction information through what they call commitments and nullifiers, still leave gaps and risk of linkability to transactions and their sender. In the end, risking the privacy of all users on the network.

“The nullifier needs to be defined in a slightly more complex way to ensure future privacy of the receiver in relation to the sender.”[21]

AliceBobCarol

SIGN

AliceBobCarol

VERIFY

RING SIGNATURE

6.5 (SAR) Self Anonymized Routing Procedure

D e c r a c y

The removal of third parties when routing transactions between addresses (through the use of the SAR procedure) provides a quick, efficient, secure, and advanced way for Decracy users to obtain untouchable privacy. This is accomplished by Decracy users self-anonymiz-ing their transactions through self-owned addresses.

Unlike Monero, who mixes transactions of its users into a ring of transaction that includes other XMR transactions, in attempt to lessen the ability to track the original sender of a specific(s) transaction, Decracy mixes and routes funds through multiple different address-es that’s in a users possession, thereby removing the need to involve third-parties or others.

“Before a recent change from Monero's developers, that timing analysis correctly identified the real coin more than 90 percent of the time, virtually nullifying Monero's privacy safe-guards. After that change to how Monero chooses its mixins, that trick now can spot the real coin just 45 percent of the time—but still narrows down the real coin to about two possibili-

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What Alice SeesAlice can see that her 110 DCA where diversified and that she sent a total of 5 DCA to Bob

Bob is nowthe owner of thesethese two Tx’s, thus

having received 5DCAin total from alice

Alice

110 DCA

27

13

15

5

30

20

13

7

20

10

3

2

10

5

10

3

27

7310

206432733246327

D e c r a c y

With Decracy SAR, Decracy accomplishes the ability to provide truly unlikable transfers by mixing and routing their funds across multiple anonymous, one-time use addresses. Addi-tionally, since no third parties are involved, it promotes the ability to, for the first time ever, make normal privacy transfers fee-less. Each time someone sends or receive funds, the user will be prompted to complete the SAR procedure by mixing and routing their funds through a series of different addresses. Furthermore, every time a user accesses their wallet, they will then again be prompted to perform the SAR procedure.

Each time the SAR procedure takes place, the relationship between the sender and receiver is vastly shrouded (or further anonymized).

SAR routes a transaction randomly through 6-24 RaH held by the user, while at the same time, privately diversifying the sum of funds through the use of Homomorphic Encryption and Range Proofs. This will cause a web-like pattern to show on the Decracy network. Each time SAR takes place, new strings of web is weaved, and since all transactions that take place in the Decracy Network will have to apply SAR on their transactions, it will successfully make sure that no transactions are vulnerable. Ensuring that no prying eyes are able to link transactions together.

Visual Example of this System:

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What the Network seesThe network or anyone looking into the Decracy Blockchain will only see a great number of hashes, (H2 || salt) = H3. No one will be able to tell who is transacting with who, nor keep track of where coins are going. For example, say Alice decided to use Coinbase in order to purchase DCA and the Government notices her purchase of 110 DCA. At the very moment that she uses the Decracy SAR procedure, her future transactions, exchanges, and trades will no longer be track-able as outside parties would no longer know who is receiving the coins that she sent out. Not even knowing if they were sent to herself or someone else.

What Bob SeesBob sees that he has received a total of 5 DCA which Alice said she will be sending. Bob can’t see where Alices funds came from, nor what other coins she may hold.

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H3

H3H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3

H3H3H3

H3H3H3H3H3H3H3H3H3H3H3H3H3

Bob is nowthe owner of thesethese two Tx’s, thus

having received 5DCAin total from alice110 SCR

27

13

15

5

30

20

13

7

20

10

3

2

10

5

10

3

27

7310

206432733246327

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The removal of third parties when routing transactions between addresses, the use of one- time use addresses and mixing pools all together are what fully construct the unflawed, true, private and unlinkable transaction network within the Decracy ecosystem. It would be such network that would surpass the current barriers in today’s blockchain technology.

Decracy utilizes the mechanism in the way colored coins works, categorizing addresses into different tier levels based on the value stored in each one-time use address. Providing tier levels with time lock mechanisms in order to prevent abuse of the Decracy network.

A. Limitation on One Time Use Address in Blockchains

Through the pursuits of privacy, the truth and reality regarding the profound implications and risks that ‘multi-use addresses’ have on obtaining privacy, has come to light. Through the use of ‘multi-use addresses’, anyone who conducts regular, every-day transactions via a ‘multi-use address’ is inherently exposing themselves to being identified and linked to all previous transactions executed with either themselves or other recipients. Thereby preventing the reality of a network that upholds privacy.

A Blockchain that uses one-time use address, with only one input but multiple outputs, will always end up breaking down value when sending out transactions, instead of adding values together when using multi-use addresses

It is to say that imagine if Bitcoin users could only trade in Satoshi, 1 BTC being equal to 100 million Satoshi‘s, and 1 BTC being valued currently at ~$10,000. If a Bitcoin user were only trading in Satoshi (due to each address only having 1 Satoshi for one-time use addresses) and wanted to send ~$10,000 to 1 person, to accomplish such transaction, they would have to perform over 100 Million transactions. Now, imagine having to pay fees on each of those transactions, every 100 million of them. It would be pretty costly right? Even if the Blockchain was to be inclusive of fee’s, the likelihood of the network being able to handle such load would be extremely slim, to none. Defeating the ability for such a system to function in this manner.

6.6 Maintaining Unlinkability in DCA transfers

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B. Mixing Pools

Many people have found themselves hoping to be unlinked from previous transactions but have found no legitimate and successful way to do so. Decracy offers a solution to this problem by using the Decracy mixing pools. Decracy’s mixing pool feature is designed to function by rounding up user’s DCA funds together and then mixing and redistributing them among all mixing pool participants. After the Decracy mixing is complete, the partici-pants are provided with the system notes that are equivalent to the DCA amount that they initially sent into the pool and with those notes are provided with the ability to exchange them for the retrieval of the funds amount that they sent into the mixing pool without linking them to the specific coins/tokens that they sent into the pool.

Alice

5 DCA

Alice

25 notes

C. Preventing Network Abuse through the use of Tier Levels

With the limitations found in one-time-use addresses, as stated earlier, it is important to categorize DCA transactions by tier levels in order to prevent network abuse or mal. This level of network security will be realized by categorizing addresses depending on the range amount of DCA they hold. With each tier level being pre-restricted to a specified time frame it ensures that the network remains spam free. This mechanism is designed to begin such time lock only after a transaction has been received and confirmed within the Decracy Blockchain.

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Address ValueAmount (USD) Tier Level Time Lock on Funds

0-5 1 8 minutes

5-99 2 7 minutes

100-500 3 6 minutes

501-1,000 4 5 minutes

1,001-5,000 5 4 minutes

5,001-10,000 6 3 minutes

10,001+ 7 2 minutes

in case of a network attack. Time lock on funds will be adjusted accordingly per tier level. Such security feature of ‘Decracy time lock’ will allow for Decracy, and the Decracy network, to focus on providing faster block confirmations. and more network resources to the tasks needed, which will allow for speedy transfers within the entire Decracy eco-system.

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Proof Of Value Creation ConsensusIn Decracy we introduce a new consensus mechanism, Proof of Value Creation (PoVC), which employs a deterministic (pseudo-random) solution to define the creator of the Decracy’s next block. Through Decracy’s ‘PoVC’, the ability for someone to become a Decracy block creator depends entirely on a user’s pre-historic level of participation on tasks that are considered important by the network (i.e. uptime as a node, participation level in democracy, # of successful running sidechains, etc). Subsequently, such block creators are rewarded based on their efforts by receiving freshly minted DCA coins from the blocks that they create. As Decracy moves further towards becoming self-governed by its users, more fundamental tasks will be required of block creators in order to ever-uphold the quality, safety, and power of the Decracy Network and ecosystem.

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To ensure that the Decracy network remains as the most advanced and secure Blockchain network for our users, our consensus algorithm, PoVC, will include safe-checks for endless scenarios that will guarantee the untouchable state of the Decracy network.

For the unexpected scenario where validators are found in disagreement of proposed blocks, a fail-safe trigger becomes enabled which conducts a Decracy system-wide vote that provides the Decracy network users with the opportunity to decide whether the leading validator (original block creator) is malicious, and if that validator is attempting to cause the Decracy network harm. In such vote, if the consensus is met and the majority agrees that the leading validator is a bad actor, that particular validator, as well as all voters in favor of his stay, will be strictly and harshly penalized. Creating a system-net failsafe which continuously protects the Decracy network by penalizing voters or validators who side to secure or keep any ‘malicious’ blocks or any malicious block creators.

Over time, this vital and ctricital system-feature will strengthen the overall security of the Decracy network against malicious behaviors and acts. Decracy ‘X’ ID will also be of key assistance in such effort as it will be designed to continuously measure and record all actors and accurately rid those who are malicious from ever having the opportunity to participate in the network validation or voting process in the future.

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Malicious Block

Malicious BlockMalicious Block

Malicious Block

Legitimate Block Penalized

Legitimate Block Penalized

Legitimate Block Penalized

Each Decracy ‘X’ ID has one unique nSaH made public, nSaH is the only type of receiving address that can receive funds from multiple addresses as well as send out funds to multiple addresses. Thus not making it a one-time use address.

Malicious Block Creator

NetworkVotes

Penalized

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Example of Depositing, Exchanging,Transacting, and Withdrawing in theDecracy Network

DepositingAlice Sends 1 BTC (worth ~$10,000), accompanied with a note of her RaH (which is registered on the Mainchain). After the 1 BTC is received, it is placed in a frozen state and she is then provided with a Decracy balance (value ~$10,000) that equals her initial deposit value of 1BTC.

ExchangingAlice, now having a total of 1 bDCA tied to her Decracy ‘X’ ID balance, wishes to exchange 0.5 of her 1bDCA for 50 lDCA of someone named Bob (lDCA being the amount of Litecoins bob holds). After the successful exchange, Alice is now left with a balance of .5 bDCA and 50lDCA while Bob has a new balance of 0.5bDCA (no longer having Litecoins). All exchange transactions will utilize Decracy’s Bio-SaHZK and SAR procedure in order to acquire the privacy provided.

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Decracy’s Decentralized Exchange lives on a Decracy sidechain (that is connected to Decra-cy´s mainchain) which allows for users to deposit different cryptocurrency funds that could be automatically converted to DCA. The automatic Decracy conversion function allows for all cryptocurrencies outside of the Decracy eco-system to benefit from the features Decracy provides, no matter what coin they deposit within the Decracy environment.

Original cryptocurrencies deposited in the Decracy Decentralized Exchange will be held in a frozen state until a user decides to unfreeze them in order to exchange, withdraw, or officially convert them to DCA. After a coin has been successfully converted to DCA, the cryptocurren-cy which was initially deposited into Decracy’s ‘SDE’ are then burnt.

Decracy Eco-System

8.1 Decracy Multi-Asset Converter

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8.2 Decracy ‘X’ Citizenship

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In today's society, we have experienced how corrupt many agencies and government elec-tions have come to be due to the long-failing design of democracy and the system that was created to protect the power of the people. Because of such reality, the demand for new policies and newly evolved election structures has rapidly increased, more and more through time and more and more across nations. The goal shared by the majority is to create change that will enable all human life to be valued. This desire is understood by Decracy. By creating new democratic infrastructures, new election frameworks, and making votes immutable, trusted, unconflicted and instant, it will enable citizens to regain faith and trust in their voice and influence, acknowledging the value, integrity, power, privacy, and security that is attached to their vote. Decracy is bringing change to the democratic process globally and by ensuring that the Decracy Platform abides by the laws in each country, changes in the democratic system can be made more rapidly than ever before.

TransactingAlice now having 0.5 bDCA and 50lDCA in her Decracy ‘X’ ID balance, wishes to transact 0.25 bDCA with Caitlyn who only has native DCA coins. in order for her to arrive to the point where she may transact with Caitlyn, she first must convert her 0.25 bDCA into native DCA coins (converting 0.25 bDCA to DCA would provide her with 12.5 native DCA). At the time that she accepts and confirms the conversion, she would be unfreezing and burning 0.25 Bitcoins that pertained to her, then leaving her with a new balance of 12.5 DCA which can be transacted with Caitlyn or anyone on the Decracy Mainchain (in addition to the 0.25bDCA, and 50lDCA that remained on the ‘DDE’ Decracy Sidechain).

WithdrawingAlice now wishes to withdraw the remaining 0.25 bDCA and 50 lDCA balance which she still holds. She would accomplish this by first sending 0.25 bDCA to her Bitcoin Address (by revealing the SaH and including a note of her desiredBitcoin receiving address) and repeats the same process for her 50 lDCA (revealing the SaH and including a note of her desired Litecoin receiving address).

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8.3 Decracy Freedom Clinic

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Decracy’s Freedom Clinic is a fully responsive pillar in the Decracy Eco-System which provides the essential services for an ever-lasting soverign and equitible reality of the glove. It includes Legal Services, Medical Services, Education Services which is rewarded by the ever-working Decracy eco-system and funded through dedicated transaction fees. Decracy ‘X’ Citizen accesses the Decracy Freedom Clinic.

Decracy ‘X’ Citizen finds the demanded aid he seeks wether it be health aid, legal aid, educational aid. Decracy ‘X’ citizen then submits request for such resource needed. Freedom Clinic Contributor accepts the incoming ‘X’ citizen request. Provides service, verifiable by the Decracy network, and as a result is rewarded from portions of the allocated funds meant for all Freedom Clinic contributors.

Rewarding Node ParticipantsNode participants will be rewarded for their contributions and for upholding the integrity and security of the Decracy eco-system. Rewards will be fairly distributed in the form of DCA coinsto active online node participants, ensuring that everyone gets a fair share of the rewards.

GovernanceAfter Decracy has fully launched, users of Decracy will be able to decide the future direction of Decracy’s eco-system through Governance. With Decracy ‘X’ ID ensuring that each network user has one, and only one, true account, it will give birth to an un-seen decentralized voting environment that will rid Decracy and future infrastructures of corruption and malice. 65% of users that participate in the governance voting will have to agree on a proposal and code change in order for the Decracy network to accept and implement any visions proposed. Through the use of Decracy ‘X’ ID Governance, it will always be ensured that Decracy is never dull, forever evolving, and forever adapting as a breakthrough platform that will continue to revolutionize the globe.

1

2

3

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Global Chain Amendment

Goods and Services TaxBookkeepingThe Decracy blockchain will allow, and provide options, for business operators to have separate addresses that will pertain to their individual business. The Decracy blockchain will also include the optional feature of enabling your business account to conduct automatic and hassle-free bookkeeping of the taxes incurred on the goods and/or services paid for through your business. Such feature accomplishes the book-keeping for both the business owners and customers.

One Account Per UserAll users on Decracy are tied to one, and only one, true account. Via their Decracy ‘X’ ID. Though, a user will still have the ability to create unlimited addresses that can be used to further request or send transfers.

SOSDecracy ‘X’ ID-compatible devices will be required to have the ability to connect to GPS, in order to function properly with the implemented safeguard features (Decracy SOS function) which is designed to prevent the attempted kidnapping, theft, or attack of any Decracy ‘X’ ID user.

WillsBy having everyone in our system identified, we aim to allow users to place wills in the Decracy blockchain and network, where any user will have the option of electing someone, which they desire, as executor or a beneficiary, registered on the Decracy network.

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Through the idea of the U.S. Fourth Amendment, our blockchain will ensure that each user has the resource and right to fight any government from unreasonable/illegal tracking of you or your transfers, through the power of our Decracy framework.

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Coin Market CapAt the time of writing there is currently $266 Billion circulating cap in Cryptocurrency.

$266 Billion in Cryptography Currency$314 Billion in Data Protection + Costs Related to Identity Theft and the loss tied to un-authorized access.

Equaling a minimum of $580 Billion in Market Cap that we aim to cater to and compete against. This would just be through the introduction of Phase 1.

* Numbers are estimates and do not include market calculations for Phase 2 nor Phase 3.

Phase 2Phase 2 will be Introduced at a later stage and will include the implementation of a Decen-tralized data storage which will further improve the Decracy ‘X’ ID technology and its use.

Decracy Global ‘X’ Citizenship & Identification

Decracy Freedom Clinic

Further Global Equity Empowering Resources

Phase 3Phase 3 consist of allowing

And more to be stored/hosted on our platform whether it is for PC,Mobile, VR/AR, or Console use

Private Smart Contracts

Private Interoperable Sidechains

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Decracy Team ForceThe Decracy Team consists of world-class members. Truly focused on delivering and creating the most future, one that is made available to all human life.

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We are collectively from

Jan Liz-FontsFounder

9 Yrs Experience

AlanMcSherryDeveloper

25 Yrs Experience

5 Yrs Experience

PratyushTiwariDeveloper

3 Yrs Experience

GeorgeUgulavaScientist

LeonardEdwinGrowth

20 Yrs Experience

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ConclusionThrough the use of Decracy’s revolutionary features, Decracy is set to become the most freedom enhancing and innovative ecosystem currently present in the blockchain space. With the Global concerns revolving around equality, economy, politics, freedom, and fairness, Decracy is is placing itself as the leader in such mission to successfully execute the true realization of global revolution and break-through. We boldly stand to create an eco-system that places all users first by ensuring a network of ‘military-grade’ security. Through our unmatched persistence, we provide everyone with the confidence that Decracy can survive the test of time. Making Decracy the only candidate to lead in Blockchain innovation and evolution.

Road Map

Q3Team Development

Conntual Anonimity Scientific ResearchQ4

Headquarter EstablishedPrivate Contributor Phase

Comprehensive Democracy Scientific Research

2019 2020

Q1Device Prototype Designed

Phase 1 Alpha LaunchPhase 1 Beta Commenced

Q2Phase 1 Beta + Phase 2 Alpha Release

Decentralized File Storage + Side Chain IntroductionQ3-Q4

Phase 2 Beta + Phase 3 AlphaSide Chain for Interoperable Anonymous Applications

Official Decracy Launch

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Reference List

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