DGT DOCS
  • 1. INTRODUCTION
    • 1.1 Executive Summary
    • 1.2 Why DGT
    • 1.3 Distributed Ledgers Technology
      • 1.3.1 Decentralization approach
      • 1.3.2 Consensus Mechanism
      • 1.3.3 Transactions
      • 1.3.4 Layered Blockchain Architecture
      • 1.3.5 Tokenomics
      • 1.3.6 Web 3 Paradigm
      • 1.3.7 Common Myths about Blockchain
    • 1.4 The DGT Overview
      • 1.4.1 Platform Approach
      • 1.4.2 DGT Functional Architecture
      • 1.4.3 Technology Roadmap
    • 1.5 How to create a Solution with DGT Networks
    • 1.6 Acknowledgments
  • 2. REAL WORLD APPLICATIONS
    • 2.1 Case-Based Approach
      • 2.1.1 DGT Mission
      • 2.1.2 The Methodology
      • 2.1.3 Case Selection
    • 2.2 Supply Chain and Vertical Integration
      • 2.2.1 Logistics Solution for Spare Parts Delivery
      • 2.2.2 DGT Based Solution for Coffee Chain Products
    • 2.3 Innovative Financial Services
      • 2.3.1 Crowdfunding Platform
      • 2.3.2 Real World Assets Tokenization
      • 2.3.3 Virtual Neobank over DGT Network
      • 2.3.4 DGT based NFT Marketplace
    • 2.4 Decentralized Green Energy Market
      • 2.4.1 Peer To Peer Energy Trading
      • 2.4.2 DGT based Carbon Offset Trading
    • 2.5 B2B2C Ecosystems and Horizontal Integration
      • 2.5.1 KYC and User Scoring
      • 2.5.2 Decentralized Marketing Attribution
      • 2.5.3 Case Decentralized Publishing Platform
      • 2.5.4 Value Ecosystem
    • 2.6 More Cases
  • 3. DGT ARCHITECTURE
    • 3.1 Scalable Architecture Design
      • 3.1.1 High Level Architecture
      • 3.1.2 DGT Approach
      • 3.1.3 Unique contribution
      • 3.1.4 Component Based Architecture
    • 3.2 Performance Metrics
    • 3.3 Network Architecture
      • 3.3.1 Nework Architecture in General
      • 3.3.2 Network Identification
      • 3.3.3 H-Net Architecture
      • 3.3.4 Transport Level
      • 3.3.5 Segments
      • 3.3.6 Static and Dynamic Topologies
      • 3.3.7 Cluster Formation
      • 3.3.8 Node Networking
      • 3.3.9 Permalinks Control Protocol
    • 3.4 Fault-Tolerant Architecture
      • 3.4.1 Introduction to Fault Tolerance
      • 3.4.2 F-BFT: The Hierarchical Consensus Mechanism
      • 3.4.3 Cluster Based Algorithms
      • 3.4.4 Arbitrator Security Scheme
      • 3.4.5 Heartbeat Protocol
      • 3.4.6 Oracles and Notaries
      • 3.4.7 DID & KYC
    • 3.5 Transactions and Performance
      • 3.5.1 Transaction Basics
      • 3.5.2 Transaction Processing
      • 3.5.3 Transaction and block signing
      • 3.5.4 Transaction Families
      • 3.5.5 Transaction Receipts
      • 3.5.6 Smart Transactions
      • 3.5.7 Private Transactions
      • 3.5.8 Multi signature
    • 3.6 Data-Centric Model
      • 3.6.1 Data layer overview
      • 3.6.2 Global State
      • 3.6.3 Genesis Record
      • 3.6.4 Sharding
      • 3.6.5 DAG Synchronization
    • 3.7 Cryptography and Security
      • 3.7.1 Security Architecture Approach
      • 3.7.2 Base Cryptography
      • 3.7.3 Permission Design
      • 3.7.4 Key Management
      • 3.7.5 Encryption and Decryption
      • 3.7.6 Secure Multi Party Computation
      • 3.7.7 Cryptographic Agility
      • DGTTECH_3.8.4 Gateway Nodes
    • 3.8 Interoperability
      • 3.8.1 Interoperability Approach
      • 3.8.2 Relay Chain Pattern
      • 3.8.3 Virtual Machine Compatibility
      • 3.8.4 Gateway Nodes
      • 3.8.5 Token Bridge
    • 3.9 DGT API and Consumer Apps
      • 3.9.1 Presentation Layer
      • 3.9.2 Application Architecture
    • 3.10 Technology Stack
    • REFERENCES
  • 4. TOKENIZATION AND PROCESSING
    • 4.1 Introduction to Tokenization
      • 4.1.1 DGT Universe
      • 4.1.2 Driving Digital Transformation with Tokens
      • 4.1.3 Real-World Tokenization
      • 4.1.4 Key Concepts and Definitions
    • 4.2 Foundations of Tokenization
      • 4.2.1 Definition and Evolution of Tokenization
      • 4.2.2 Tokenization in the Blockchain/DLT Space
      • 4.2.3 The Tokenization Process
      • 4.2.4 Tokenization on the DGT Platform
      • 4.2.5 Regulatory and Legal Aspects of Tokenization
      • 4.2.6 Typical Blockchain-Based Business Models
    • 4.3 The DEC Transaction Family
      • 4.3.1 DEC Transaction Family Overview
      • 4.3.2 DEC Token Features
      • 4.3.3 DEC Token Protocol
      • 4.3.4 DEC Account Design
      • 4.3.5 DEC Transaction Family Flow
      • 4.3.6 DEC Commands
      • 4.3.7 DEC Processing
      • 4.3.8 Payment Gateways
    • 4.4 Understanding Secondary Tokens
      • 4.4.1 The different types of tokens supported by DGT
      • 4.4.2 How secondary tokens are produced
  • 5. EXPLORING TOKENOMICS
    • 5.1 Introduction
      • 5.1.1 What does tokenomics mean?
      • 5.1.2 Goals of Building the Model for DGT Network
      • 5.1.3 Tokens vs Digital Money
      • 5.1.4 The Phenomenon of Cryptocurrency
      • 5.1.5 Basic Principles of Tokenomics
      • 5.1.6 AB2023 Model
    • 5.2 Node & User Growth
      • 5.2.1 Node Ecosystem
      • 5.2.2 User Growth and Retention Modeling
    • 5.3 Transactions
      • 5.3.1 Transaction Amount Components
      • 5.3.2 Shaping the Transaction Profile: A Three-pronged Approach
      • 5.3.3 Calculation of Transaction Number
    • 5.4 Network Performance Simulation
      • 5.4.1 Endogenous Model
      • 5.4.2 Network Entropy
      • 5.4.3 Network Utility
    • 5.5 Token Supply Model
      • 5.5.1 Introduction to Supply and Demand Dynamics
      • 5.5.2 Token distribution
      • 5.5.3 Supply Protocol
      • 5.5.4 Token Balance and Cumulative Supply
    • 5.6 Token Demand Model
      • 5.6.1 Node-Base Demand
      • 5.6.2 Transaction-Based Token Demand
      • 5.6.3 Staking Part Modeling
      • 5.6.4 Total Demand
    • 5.7 Token Price Simulation
      • 5.7.1 Nelson-Siegel-Svensson model
      • 5.7.2 The Price Model
    • 5.8 Decentralization Measurement
      • 5.8.1 Active Node Index
      • 5.8.2 Node Diversity in Hybrid Networks
      • 5.8.3 Token distribution
      • 5.8.4 Integral Calculation of Decentralization Metric
    • 5.9 Aggregated Metrics
      • 5.9.1 Transaction Throughput: Evaluating Network Performance and Scalability
      • 5.9.2 Market Capitalization: A Dimension of Valuation in Cryptocurrency
      • 5.9.3 Total Value Locked (TVL): A Spotlight on Network Engagement and Trust
  • 6. ADMINISTRATOR GUIDE
    • 6.1 Introduction
      • 6.1.1 Administrator Role
      • 6.1.2 Platform sourcing
      • 6.1.3 DGT Virtualization
      • 6.1.4 Using Pre-Built Virtual Machine Images
      • 6.1.5 Server Preparation
      • 6.1.6 OS Setup and initialization
    • 6.2 DGT CORE: Single Node Setup
      • 6.2.1 Launch the First DGT Node
      • 6.2.2 Dashboard setup
      • 6.2.3 Nodes Port Configuration
      • 6.2.4 Single Node Check
    • 6.3 DGT CORE: Setup Private/Public Network
      • 6.3.1 Network launch preparation
      • 6.3.2 A Virtual Cluster
      • 6.3.3 A Physical Network
      • 6.3.4 Attach node to Existing Network
    • 6.4 DGT Dashboard
    • 6.5 DGT CLI and base transaction families
    • 6.6 GARANASKA: Financial Processing
      • 6.6.1 Overview of DGT’s financial subsystem
      • 6.6.2 DEC emission
      • 6.6.3 Consortium account
      • 6.6.4 User accounts
      • 6.6.5 Payments
    • 6.7 Adjust DGT settings
      • 6.7.1 DGT Topology
      • 6.7.2 Manage local settings
    • 6.8 DGT Maintenance
      • 6.8.1 Stopping and Restarting the Platform
      • 6.8.2 Backing up Databases
      • 6.8.3 Network Performance
      • 6.8.4 Log & Monitoring
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  1. 4. TOKENIZATION AND PROCESSING
  2. 4.2 Foundations of Tokenization

4.2.3 The Tokenization Process

The tokenization process is a transformative journey that converts real-world assets into digital tokens, enabling increased liquidity, efficiency, and accessibility. This process is applicable to a wide range of assets, including real estate, artwork, financial instruments, and more. By representing these assets as tokens on a blockchain, tokenization revolutionizes the way we perceive and interact with value. In this section, we will explore the step-by-step process involved in tokenization, covering the essential stages from asset selection to token distribution and management. Steps Involved in the Tokenization Process:

Step

Title

Description

Output

1

Asset Selection

Identify and select the asset to be tokenized

Chosen asset for tokenization

2

Value Assessment

Evaluate the value and determine the tokenization parameters (or tokenomics model)

Asset valuation and token parameters

3

Legal Compliance

Ensure compliance with relevant regulations and legal requirements

Compliance framework for tokenization

4

Token Specification

Define the technical specifications and features of the token

Token specifications and functionality

5

Token Development

Create the token through smart contract or token creation process

Deployed smart contract or created token

6

Token Audit (Optional)

Conduct an independent audit of the token and smart contract

Audit report on token and smart contract

7

Token Distribution

Distribute the tokens to stakeholders and interested parties

Token distribution to respective owners

8

Token Trading and Management

Facilitate trading and provide management capabilities

Trading platform and token management

9

Asset Management (if applicable)

Manage the underlying asset, if required

Framework for asset management

10

Redeeming and Burning (if applicable)

Enable redemption and burning of tokens, if necessary

Redemption and burning mechanisms

Creating tokens requires a solid understanding of the technical aspects involved to ensure the successful implementation of the tokenization process. This section will delve into the key technical requirements necessary for token creation, covering essential considerations such as blockchain platform selection, smart contract development, and interoperability.

Step

Title

Description

Result / Output

1

Blockchain Platform Selection

Choose the appropriate blockchain platform based on factors like scalability, security, consensus mechanism, ecosystem compatibility, and development tools. Evaluate platforms such as Ethereum, Binance Smart Chain, or DGT, considering their features and community support.

Selection of a suitable blockchain platform for token creation.

2

Token Fabric Selection

Determine whether to use smart contracts or leverage the token fabric of the DGT transaction family. Token fabric provides an alternative approach to token creation, allowing for the specification of parameters such as total supply, decimal places, name, symbol, and additional functionality directly through the DEC banking family.

Selection of the token creation method: smart contract or token fabric in the DGT transaction family.

3

Token Standards and Specifications

Choose the appropriate token standard, such as ERC-20, BEP-20, or DGT Token Standard, to ensure compatibility and interoperability within the blockchain ecosystem. Define the token's specifications, including parameters like total supply, decimal places, token name, symbol, and any additional functionality required.

Adoption of a token standard and specification, defining the parameters and characteristics of the token.

4

Security and Auditing

Conduct thorough security testing and auditing of smart contracts or token fabric to identify and address vulnerabilities, code errors, or potential exploits. Perform independent security audits, code reviews, and penetration testing to ensure the integrity and security of the token.

Security-tested and audited smart contracts or token fabric to mitigate vulnerabilities and enhance the token's security.

5

Interoperability and Integration

Consider the interoperability of the token with other tokens, platforms, and decentralized exchanges (DEXs). Ensure compatibility with existing protocols, wallets, and exchanges to facilitate seamless integration and enhance the token's marketability and accessibility.

Interoperable token that can interact with other tokens, platforms, and DEXs, promoting wider adoption and usability.

6

User Experience and Wallet Integration

Focus on creating a user-friendly experience by integrating the token with popular wallets and providing clear instructions for users to store, manage, and interact with the token. Utilize standard protocols like ERC-20, BEP-20, or DGT Wallet API for wallet integration.

Token integrated with popular wallets, offering a user-friendly experience for users to store, manage, and interact with the token.

By following these technical requirements, token creators can establish a solid foundation for their tokens, ensuring compatibility, security, and functionality within the blockchain ecosystem. Additionally, adhering to these requirements helps promote trust, transparency, and wider adoption of the token within the digital economy.

Tokenization brings numerous benefits to various industries, but it also introduces important security and privacy considerations that must be addressed to ensure the integrity and confidentiality of token transactions. This section outlines key considerations to enhance the security and privacy of tokenization initiatives:

#

Title

Description

1

Smart Contract Security

Perform thorough audits and testing of smart contracts to identify and mitigate vulnerabilities and potential exploits. Implement best practices for secure coding.

2

Token Custody

Employ robust security measures to protect token custody, including multi-factor authentication, encryption, and secure key management practices.

3

Immutable Transaction History

Implement privacy-enhancing techniques, such as zero-knowledge proofs or off-chain transaction protocols, to maintain confidentiality while preserving transaction integrity in public blockchains.

4

Regulatory Compliance

Ensure compliance with applicable regulations, such as KYC and AML requirements, to mitigate the risk of illicit activities associated with token transactions.

5

Secure Wallet Integration

Verify the security practices of wallet providers, including encryption, secure communication protocols, and regular security audits. Integrate with trusted and reputable wallet providers.

6

Smart Contract Upgradability

Implement upgrade mechanisms that follow best practices to ensure secure contract modifications without introducing vulnerabilities or compromising transaction integrity.

7

Regulatory Compliance and Legal Frameworks

Understand and comply with legal and regulatory requirements applicable to tokenization initiatives, such as securities laws, consumer protection regulations, and tax obligations.

Addressing these security and privacy considerations is crucial to safeguarding token transactions, protecting the integrity of the system, and maintaining user trust. By implementing robust security measures, complying with regulations, and adopting best practices, organizations can enhance the overall security and privacy of tokenization initiatives.

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Last updated 1 year ago