The Blocknet: the Internet of Blockchains

What th e Bloc kn et is, how to buy shares in it, and why it will chang e th e face of crypto forever.

The Blocknet is a revolutionary advancement in cryptographic technology: a true peer-to-peer protocol between
nodes on different blockchains. It is the internet of blockchains, enabling open-ended communication and delivery
of services between users of different cryptocurrencies, and vastly increasing the user base (and profit potential)
of any given coin. Its ITO (initial token offering) will take place on 29 October 2014.
The Blocknet is an initiative by XCurrency developer Dan Metcalf, who, when considering how best to build
XCurrencys user base and to improve the state of crypto in general, hit upon an idea to accomplish both in one fell
swoop. What if one coins features could function as services accessible to users of every other cryptocurrency?
What if the foundation fostering this technology could ratify new coins and thereby exclude the scamcoins that
crypto is rife with? What if it could incubate further development and enable collaboration between talented
developers? The idea of a Blocknet was born.

A TRULY DEMOCRATIC, NON-CENTERED PROJECT

The Blocknet is not, of course, the only project creating an internet of blockchains. However it has at least three
fundamental differences from competing projects. Firstly, it has no central or core currency (unlike BTCD for
SuperNET), and thus will create a truly open, democratic inter-blockchain framework that can be extended as widely
as the internet was. While the idea was initiated by XCurrency, XC is no more a core coin than any other, and its
team does not control the Blocknet Foundation. Every participating coin is eligible for a seat on the Foundations
board. This is necessary for the Blocknet to freely and directly link any cryptocurrency network to another one, and
thus truly be an internet of blockchains.
Secondly, joining the Blocknet does not involve 10% of a coin's money supply being bought and centrally controlled.
Centralisation of a coins money supply carries risk and demands that one trust the central entity. No such scenario
applies to the Blocknet, because its core technology, the XBridge, will be open source and can therefore be

integrated into a wallets code for free. Instead of an asset-backed approach, the Blocknets value derives directly
from its incredible utility.
Thirdly, the Blocknet is founded on the XBridge, which is not an RPC call protocol but a true P2P protocol. It is one
thing for nodes to connect to each other directly (and thus P2P), but it is another for the protocol by which they
connect to be true P2P rather than simply JSON-RPC or some other method.

HOW IT WORKS
If some cryptocurrencies are creating blockchain 2.0 features, the Blocknet is an inter-blockchain 2.0
technology. It is distributed, its technology coded into every Blocknet-compatible node. It is trustless. It is not a
coin, but a way of enabling nodes from different coins to render services to each other. Its core technologies are the
XBridge protocol, by which nodes communicate, and a decentralised exchange, by which nodes are remunerated
for their services. All of its technologies are accessible via an API.
The Blocknet has its own token of value. However it is not a coin but a share that earns dividends on every payment
for every service on the Blocknet. Every time a service is rendered, the node(s) rendering the service receive payment
directly from the node(s) that request it, and the Blocknet charges a micro-fee for supporting the service.
Shareholders are eligible for payouts in proportion to the number of shares they own the accounting for which is
of course done trustlessly and in the public domain.
A brief (and incomplete) list of services available to all users of any coin on the Blocknet is:
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Private payments

Distributed file storage

Node-based VPN provision

Decentralised exchange of currencies

The use of any ATM supporting any coin on the Blocknet (i.e. automatically convert to the requisite
currency in order to deposit/withdraw)

Private messaging

Distributed web content server

Asset creation, distribution, and management

T H E B L O C K N E T ITO
The Blocknets ITO will begin on 29 October 2014. These are its rules:
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Ten million shares will be created and no more will ever be made available.

The price per share will be 0.00025 BTC.

Shares purchased using a participating coin will be sold at a 10% discount.

Any unsold shares will be destroyed.

The ITO will be held at Bittrex, Poloniex, and CoinGateway.

REASONS TO BUY BLOCKNET SHARES

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The Blocknets initial value during the ITO equates to the following: 10 000 000 shares multiplied by an
initial share price of 0.00025 BTC = 2500 BTC.

However the Blocknets real-world value should equate to the total combined use-value of every coin in
the Blocknet. Therefore, at a bare minimum, the Blocknets value would be equal to the sum of the market

cap of all participating coins. This is currently $4,288,591.00 or 11,285 BTC. Therefore a gain in price of
450% can be expected after the ITO.
-

But in addition to all its coins features, the Blocknet has the further features of (a) making all the coins
services accessible to all users, and (b) bringing all coins users to every coin. Taking this massive increase
in utility into consideration results in the following calculation: multiply the combined market cap of all
participating coins by the number of coins. The resulting value is 22,500 BTC or a 900% profit on the
share price at the ITO.

Finally, dividends will be paid to Blocknet shareholders.

C O N V E R S I O N F R O M ITO P H A S E T O N O R M A L O P E R A T I O N S
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The Blocknets decentralised exchange will not exist until after the ITO funds its development, and so third
parties (Bittrex and CoinGateway) will be used for the ITO.

Furthermore to increase trust, these third parties will hold the Blocknets development funds in escrow.
Spending of these funds will be made public by the Blocknet Foundation.

Once the Blocknet is ready to start issuing dividends to shareholders, Blocknet tokens may be redeemed
for Blocknet shares on the NHZ asset exchange.

Following this, dividends can reliably be paid to shareholders for profits on Blocknet services.

FAQ
Wh e n a c o i n j o i n s t h e B l o c k n e t , h o l d e r s o f e v e r y ot h e r c o i n w i l l b e a b l e t o u s e it s
f e at u r e s . D o e s n t th i s w a t e r d o w n t h e v al u e of a c o i n s t e c h n o l o g y ?
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No. This is like thinking that Googles value is watered down because its on the internet.

The internet enables a companys products and services to gain a potentially enormous user base, it gives a company
global reach, and it significantly lowers a companys operating costs. The Blocknet does exactly the same thing for
cryptocurrencies.

The Blocknet significantly expands a coins user base.

It facilitates the discovery of a coins features.

It enables a coins community to earn revenue. Owners of a node get paid whenever their node renders a service for a
Blocknet user.

T h e Bl o c k n e t i s, e s s e nt i al l y , a ll th e f e at u r e s o f a ll p a rt i c i p a t i n g c o i n s r o l l e d i nt o o n e.
D o e s th i s m e a n t h at b y j o in i n g th e B l o c k n et , a c o i n g i v e s u p i t s t e c h n o l o g y t o t h e
B l o c k n et ?
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No, coins retain every single one of their features and do not give up any of them.

Coins features are offered as services to other coins for a fee on the Blocknet.

Nodes that render these services are remunerated for their role.

The Blocknet also receives micropayments as fees for supporting the rendering of these services the profits for which
go to shareholders.

So instead of stealing coins features, the Blocknet does two things:

o

The Blocknet increases a coins userbase for its services. No longer are coins only used by their (generally
tiny) communities.

By extending the reach of a coins service, the Blocknet serves as the most effective form of advertising
possible for a coin: actual usage. Nothing will attract users more than trying a coins service and enjoying it.

Furthermore, the Blocknet removes multiple barriers to entry for would-be users of a coin, like
a)

Making it trivially easy to discover a coin amidst the thousands in e xistence.

b)

Not requiring a user to research a coin and understand it before adopting it.

c)

Not requiring a user to download new software and learn how to use it.

d)

Not having to do market analysis to calculate the risks of buying a coin before one can use it . For the first time the
Blocknet makes it possible for coins services to be used without one first having to buy coins, and coins can be
traded without having to use their services.

Ho w d o c r y p t o c u r r e n c i e s b e n e fi t b y j o i ni n g t h e Bl o c k n e t ?
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The Blocknet massively expands a coins user base. It is analogous to a products reach once it has a retail website,
versus before it has one.

The Blocknet is a revenue-generating platform for cryptocurrencies to offer their services.

The above two factors significantly increase the use-value of a coin, and thus implicitly will significantly increase its
price.

Wh y d o e s t h e B l o c k n e t b e n e fi t C r y p t o :
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At present there are thousands of isolated cryptocurrencies, each with discrete networks, separate developer resources,
and isolated (and often small) communities. Their utility is small and their benefit to society often negligible. The
Blocknet integrates coins technologies via the XBridge, unites communities through collaboration, fosters quality
development through its incubator, and streamlines development through its dev platform. The Blocknet is poised to
transform the face of crypto permanently.

At present, pump-and-dump scams are effectively the norm in crypto. It is all too easy to clone existing technology, give
P&D teams a large portion of the money supply, and convince hundreds of people to lose their money. But henceforth,
coins that are not part of the Blocknet will simply be unable to compete with Blocknet-compatible coins, since their
user base and usability will be significantly reduced. Only coins with genuine innovation and real, useable services will
be able to join the Blocknet. This will significantly hinder the ability of malicious actors to successfully pump and dump
a coin.