Artfinity Introduction
Artfinity is an industry chain of industry traceability and trading based on blockchain technology. Through putting the whole process of art creation and trading on blockchain, the current art industry's identification and circulation problems are solved. Specifically, Artfinity uses the Internet of Things technology to record the entire process of artwork creation and generates a unique identification (AID) for each artwork based on the cryptographic hashing, extracting the “digital fingerprint55 and uploading it to the blockchain. As a result, the traceability is true, transparent, and cannot be tampered with.
Artfinity adopts the decentralized method to select the node and generates the tokens while the art object is stored in the warehouse of the node. The tokens storing the AID and the acceptance agreement can exchange for the designated artwork at any time via the node. Furthermore, the token has rich smart contracts that support financial services such as circulation and mortgage, it also creates the new model of IAO (Initial Assets Offering), the circulation of trading on the blockchain greatly reduces the trust and communication costs of both parties to the art transaction, and improves asset liquidity.
As an industry vertical public chain, Artfinity uses the DPOS (Delegated Proof of Stake) consensus mechanism to ensure the transparency and fairness of each block. The DPOS mechanism was invented by Dan Larimer and successfully applied in mainstream public chains such as Bitshares, Steem and EOS, and can achieve much higher computing speeds than other consensus mechanisms.

Below we introduce the details of the mechanism. The consensus mechanism mainly answers three questions:

a.Who will produce the block

b.When to generate a block

c.How to verify the validity of the block
For question a, DPOS is determined by the current top list of principals (ie, supernodes) and the current time; for question b, it is generated periodically at regular intervals.

For problem c, in order to prevent the instability caused by the exorbitant right of the principal and the drift of the timestamp, at the implementation level, the PBFT (Practical Byzantine Fault Tolerance) algorithm is used to verify the validity of the block, considering the block validation and persistence. For the verification of the block, the method of all-node voting is adopted. When the new block is created, the de I eg a te node of the DPOS needstowaitforthevoting of other nodes, instead of having the right to write into the blockchain immediately. In the case where the number of nodes is 3f+1 and the number of nodes with a Byzantine fault does not exceed f, the blockchain data can guarantee consistency, namely:

i. If a correct node accepts and executes a block, all correct nodes submit the same block

li. All correct nodes are either behind the longest chain or consistent with the longest chain, and the block hashes of the same height are the same.

At the same time, Artfinity uses the Internet of Things technology and the tokenization nodes to complete the mapping between the physical art and tokens. The tokenization node is selected by the community voting, it will complete the functions of registration, verification, custody, and acceptance of the art objects. The technical means and governance mechanism will be leveraged to ensure that the whole process is transparent and trustworthy, and the node is under community supervision.
The above-mentioned DPOS+PBFT guarantees the basic functions and performance advantages of Artfinity. In order to complete the art identification and trading circulation, Artfinity has made the following technological innovations:
Sometimes we need specific functional modules to solve specific problems. In general, specific functional modules have better performance (similar to ASICs and CPUs) than general-purpose modules. Let's take the Artfinity token transaction function as an example. Its (write) function can be abstracted into a limited set of operations: locking (top up), withdrawal, placing order, revoking order, matching, and so on. In order to support more general (weak Turing complete) functions, versatile smart contracts often need to run complex virtual machines and supporting infrastructure, which makes their tps lower, which is unacceptable for high-frequency trading modules. Therefore, for a specific functional module, Artfinity builds a s pec ifi c functional sub-chain for it. Let's take the transaction module as an example, the function logic is shown in the following figure:
The status of the token is recorded in the Artfinity main chain, and the transaction sub-chain is responsible for completing the trading function of the tokens. The function and interaction of the main chain and the transaction subchain are determined by a series of mutually agreed APIs, such as i. Locking the tokens (top up) ii. Unlocking the tokens (withdrawal). After sub-chaining by function, a complete function loop is:

i、The user locks the specified tokens on the main chain through the API (token splitting by the main chain smart contract) and logically transfers it to the corresponding user account wallet in the transaction sub-chain.

ii、The user completes the transaction between the tokens and other tokens (or stable coin) through a series of operations such as placing an order and canceling the order.

iii、The user unlocks the transaction through the API and logically transfers it to the corresponding account wallet of the main chain.
After the API and the communication protocolareagreed,thefunction of the chain has been divided into multiple parts with a relatively low degree of coupling. In the implementation of Artfinity, the operation of the sub-chain is coordinated by the super-node, that is, the super-node is responsible for the block producing of the main chain and the sub-chain. Its structure is shown below:
Each supernode functions on multiple blockchains at the same time. When there is no main-subchain communication, it runs the regular DPOS + PBFT consensus protocol to produce blocks. When the communication is needed, the sub-chain node calls its main node APIs of the supernode.
Generally speaking, for the main chain, we have a high degree of decentralization. However, even the DPOS+PBFT consensus mechanism adopted by Artfinity is not as decentralized as another blockchain that consists of thousands of nodes and uses POW (proof of the work), the typical representative of which is Ethereum and Bitcoin. Similarly, the multi-node architecture of DPOS+PBFT makes its throughput less than a single node architecture because the latter does not require consensus between nodes. Although the cost of a single node architecture is insufficient security (attacks, node falsification), it is the best choice in some security-insensitive, speed-sensitive scenarios. Similarly, although the POW throughput is small, Some scenarios are also the best choice for scenarios that are extremely security-sensitive. To this end, Artfinity makes the Iayer2 architecture design for the balance between speed and security, as shown in the following figure:
Layer2 itself is a complete functional system that is relatively independent of Artfinity (can be a third party) and includes two important modules:
1、Logic calculation module: complete the task according to different data and process, abstracted as a function (s, p, h) = f(x), where x is data, which can be provided by the main chain, local storage unit and external commands ; s is the result of the calculation (final state); p is the representation of the calculation process (for example, the selection of intermediate random numbers, etc.); h is the hash value of the calculation process p,usedtoverifythe calculation process.
2、Storage unit: used to store intermediate results and calculations. It provides the verification function g(p, h), where pisthe calculation process and h is the unique hash value produced by this calculation process.
Layer2 first obtains data x from the main chain, local storage unit, and the outside world; then completes the logical calculation (s, p, h)= f(x) and stores the computational verification process p in the local storage unit; finally the final result s and the calculation Hash h submitted to the main chain to complete the synchronization, the communication method for submission is described in c below. This completes a functional loop. For the authenticity of th。dataon the main chain, we can provide the hash value of the main chain data, and call the verification module g(p, h) in Iayer2 for verification.

According to the trade-off between security and throughput, Iayer2 usually has the following options:

a、Single node- has the fastest speed, but security and decentralization are weaknesses. An application scenario is a situation in which the decision process is multi-stage, the real-time requirements are high, and ultimately only the results are concerned.

b、Multi-copy state machine:Here we specifically refer to the Consortium blockchain, which runs the pbft consensus algorithm. It has a certain degree of decentralization and speed. It is a method that is a compromise of 1 and 3.

c、Other public chains with a ROW consensus mechanism: they are highly secure, slow, and decentralized. An application scenario is value binding. For example, the Artfinity chain value is bound to the Bitcoin network, where data synchronization between the networks is required.

3、persistent voted oracle(PVO)

In the Artfinity ecosystem, there are often situations where external is required, such as art market information, art real-time image and video data, etc.; the function extension of layer 2 mentioned in b can also be regarded as external data demand(a certain degree of controllable). In this case, we need the oracle service, that is, we need the proxy to grabthe outside world data. The problem we are most concerned with is the authenticity of the data. To this end, we propose a persistent voted oracle (PVO).
PVO can be regarded as an on-demand sub-chain. Its main function is to record the situation in which the main chain calls external information, and adopts the logic of “post verification55. Specifically, for a smart contract S on the main chain, which calls the external data d_1,...,d_n in order through the API provided by the PVO, the main chain produces the block and simultaneously submits a PVO block containing the external data. For the main chain block containing external data, the basic consensus mechanism POS+PBFT of the supernode is not responsible for verifying the authenticity of the external data, which ensures the speed of the main chain block generation. For POV blocks, each supernode j will verify its data:

For each data d_i, try to get the data d'_ij in the same way as the one recorded in the PVO block, if:

a、d_i=d'_ij,then the tag data d_i is reproducible data;

b、d_i≠d'_ij,then the tag data d_i is non-reproducible data;
For each d_i, if more than 2/3 of the supernodes are marked as reproducible data, then this block is a reproducible block; otherwise it is a non-reproducible block. In both cases, the data is permanently stored by pbft's consensus mechanism. Note that non-reproducible blocks do not represent data fraud because the verification process is post-processed and the raw data may be generated in real time and overwrite old data. In the latter case, manual (post-test) review of the block is required.
Local Digital token (AT) is an important part of the Artfinity ecosystem and is designed to fully serve the Aritifinity network. Before the launch of Artfinity's main network, the tokens are deployed on the Ethereum network in accordance with the ERC20 standard. After the main network was released, the tokens will be completely migrated to the Artfinity main network. The total supply of AT issuance is 1 billion.
As an eco-service payment medium and community management tokens, AT tokens are used to improve AT value in the Artfinity ecosystem by extending payment scenarios and node-locked liquidity, motivating community participants and builders, and maintaining Artfinity ecosystem's stability. Generating and transferring artwork in Artfinity will consume AT as a virtual "fuel55. At the same time, each node needs to pledge no less than 500,000 AT tokens. AT consumption and locking will greatly increase the value of AT with ecological development. At the same time, AT will be widely used as an exchange rate unit and medium in the payment and transaction of ecological partners, and enhance the awareness and liquidity of AT.
Artfinity is an ecosystem of public governance. The three types of nodes form the cornerstone of the ecosystem:
Trusteeship Nodes:Responsible for the holding and tokenization of physical art, need to pledge not less than 500,000 AT, and need to complete the goal of holding 100 million yuan of art assets per quarter, with 10-20 pieces of artwork. Specifically, the Trusteeship node is responsible for asset mining, asset depository, and generation of asset AID and tokens on the blockchain;
Creation node: Responsible for agreement and community management, need pledge at least 500k ATs and has at least 50 addresses with more than 10k AT address votes. The total number of Creation node is 99. To be concluded, the Creation node as the representative of the AT communities, in charge of validating blocks of blockchain, collecting communities' proposals, major subject votes, etc...
Supernode: Responsible for public chain block generation and technical governance. It needs to have reliable technical service capability on the basis of meeting the requirements of the Genesis node. 21 nodes will be elected by voting. Specifically, the supernode is the highest honor and computational power guarantee of the AT community, and is responsible for block generation and information packaging, technology upgrade, and consensus operation.
Automatic generation of AID digital identification: For the need to identify the fidelity of art, Artfinity distributes the identity data of each artwork such as the appearance, texture, and creator's signature certificate in the database of the verification node, and adopts encryption compression algorithm to take snapshots of the artwork identity data in forward and reverse multi-angle, and uploads the obtained high-precision, small-volume, irreversible AID identity data to the tokens of the Artfinity main chain, and truly achieves the one-to-one mapping between artwork and token. Compared with the solution of uploading all the authentic data into the blockchain, AID creatively proposed identity data compression and data fingerprint extraction technology, which greatly reduced the blockchain storage pressure and standardized the data to be compatible with all art categories, and enhanced the scalability of Artfinity.

As mentioned above, AT represents the value and the governance certificate of Artfinity ecosystem, with a total supply of 1 billion, which is issued by pre-mining methodology. The distribution plan is as follows:

a、Team: 200 million, unlocked in 36 months,unlocked1/36per month;

b、Fund Raising: 200 million, released all at the time when launching exchange;

c、Foundation: 500 million, where 100 million are for ecological partners, 100 million for business activities, 300 million for community incentives, released in four years.

d、Node rewards: 100 million, distributes monthly, where 50 million are given to the supernodes, 50 million are given to the Trusteeship nodes. The tokens for supernodes are distributed evenly. The tokens for supernodes are distributed according to the proportion of the holding art asset. The reward will be released in 10 years in a progressively decreasing manner.
Artfinity is a vertical chain of asset tokenization in the art industry, connecting the value of On-Chain-and-off-chain assets. Different from the economic model depending on community consensus and token deflation, Artfinity innovatively proposes a "dual—channel growth model". The Artfinity ecosystem consists of the following four core parts:
1、Tokenization and transfer.Nodes or individuals will consume AT as a virtual "fuel'1 when they implement art tokenization and tokens transfers through smart contracts. The combustion mechanism is similar to ETH. The burned AT will enter the miner's reward pool for rewards of block generation.
2、Mining.Supernode mining can get the AT in the reward pool as an incentive, in the early stage, it can get a total of 50 million ATs of the block generation reward.
3、Airdrops of tokenized Assets4.2.3After the trusteeship node completes the asset tokenization, the smart contract will automatically split 1% of the assets equally into all the genesis nodes according to the underlying protocol, and 1% of the assets will be equally divided for all thesupernodes.
4、Node locking, vote staking As mentioned above, the trusteeship node, the genesis node and the supernode all need to lock the position of not less than 500,000 AT. In addition, in the node election campaign,thenodeoperator and the user can vote using the AT tokens in hand. And the major issues of the community are also need voting, the AT being used in voting can not flow freely.

1、The original application of blockchain: asset token generation, the consumption of asset token and the token-locking of nodes;

2、Payment of ecosystem services: deduction of exchange fee, trusteeship, traceability of asset, data inquiry, etc., is the exchange rate unit, and will soon become the transaction pair of the AT ecosystem in the cooperative exchange;

3、3.Community Governance Voting: AT holders can participate in Artfinity's public chain governance through open and transparent voting on the blockchain.

As the pioneer of the art asset tokenization, Artfinity pioneered the IAO (Initial Assets Offering) asset tokenization and offering subscription model. Specifically, art collectors can use the Artfinity's trusteeship node to put assets into inventory to get the artwork token and then initiates the offering to the community through the smart contract on the Artfinity platform, thus greatly promoting the identification and circulation of assets. The emergence of IAO effectively solved the pain points of the traditional collectibles industry, such as undisclosed information, opaque prices, inconvenient circulation, and high transaction costs in costs in the middle. It will surely be sought after by numerous art publishers and collectors. And lAO's smart contract will use AT as a payment medium, which is bound to bring a large number of users to AT in the art and asset chain market.
As a core asset in the Artfinity ecosystem, AT has long-term and obvious financial logic of value preservation and value-added

We abstract the growth of AT value as a "dual-channel growth mode"

Channel 1:Trading consumption leads to scarcity, scarcity leads to a price increase, and price increase attractsnew trading users

Channel 2:The node rewards promote the token-locking, the token-locking leads to scarcity, the scarcity leads to the price increase, and the price increase encourages the token-locking.

With the gradual development of Artfinity's ecology, the excellent ecological application represented by JueYi will attract a large number of art investors and collectors to tokenize artwork and trade them. The art tokenization and tokens transactions will continue to consume a large number of ATs. After this part of the fuel enters the miner's reward pool, it will not immediately flow into the secondary market. Since this part of the fuel is purchased by the user from the secondary market, the buying power is greater than the selling power, which will lead to an increase in the AT price. And the benchmark effect of AT price growth will bring confidence to investors, while attracting more investors to enter, to achieve the first channel of AT price growth cycle.
From the perspective of the mechanism of the token-locking, in addition to the mining revenue, the trusteeship node will also obtain valuable assets, and a certain amount of locked token will become a ticket to continuously obtain excess returns. This method is different from the general POS type public chain's hold- and-get-interest pattern. The income comes from the assets being held. There will be no inflation on the tokens, so it will not consume new inflows into the secondary market. This excess return will fully mobilize the enthusiasm ofthemarket,form a buying trend and increase the price of AT. The increase in the price of AT has allowed the nodes that previously locked the tokens to obtain more revenue. Motivated by this two ways, there will be more value investors competing to become the nodes of the AT, further leading to the AT5s scarcity and value-adding, achieving a second channel of AT price growth cycle.
In addition to the original dual-channel growth model, AT will also expand the ecological scene. As the total amount of AT is fixed, once the new scene adopts the model of profit repurchase, token dividend, and secondary market purchase- and-burn, AT will also obtain more sustained growth drivers. In the future, holding AT will not only be a symbol of wealth, but also a symbol of excellent investment vision!