Xnotes Enterprise-Grade Blockchain
Xnotes is an award-winning open source decentralized transaction system that implements a groundbreaking business-driven, currency-agnostic and energy-efficient approach of blockchain, empowering organizations and corporations of all sizes and industries to securely, easily and cost-efficiently issue, disseminate and manage their own digital assets such as currencies, securities, loyalty points, miles, deeds of ownership, agreements, commodities, etc.
Xnotes brings Blockchain technology into enterprise-grade applications with configurable workflow-based business processing logics for smarter “smart contracts”. Xnotes has been designed as a highly scalable multiple ledgers distributed system with built-in trust management and permission system.
The Xnotes Technology encompasses a set of network, cryptography and software components that enables the development of enterprise-class applications and mobile apps secured by blockchain techniques and digital identity/trust/reputation management. The Xnotes Technology is structured in 3 parts:
- Digital Asset Trusted Issuance System(DATIS), which enables full control of the supply of any sort of assets,
- Decentralized Transaction Processing Network (DTPN), which enables asset interoperability with distributed and permissioned blockchain-based multiple ledgers,
- Data Distributed Orchestration Engine(DDOE), which enables the creation of workflow-based Self- Executable Agreements, which brings the concept of “smart contract” to an unprecedented level of standardization and security.
- The Xnotes Technology is also referred to as “Xnotes”.
Xnet and Xnet Protocol
Xnet is a network of Xnotes-enabled nodes that communicate using the Xnet Protocol. Xnet’s connectivity layer is based on Websocket which ensure high scalability, high availability and bi-directional communication. Xnotes nodes connect to Xnet through Xnet Relays and benefit from the broadcast and the push capabilities required to support reliable real-time transactions.
Asset, Asset Class andAsset Super Class
An Asset is basically anything that can be
transacted (sent or traded/exchanged) on Xnet. Technically speaking, an asset is an “instance” of an asset class. For example, if “Gold” is defined as an asset class, a 1oz. gold bar is an “instance” of “Gold”. There are generally several instances for a given asset class. An asset can either be:
- A purely digital asset when its supply process can be controlled and verified directly on Xnet with no other dependency
- A digital representation of an underlying asset that exists outside Xnet, which requires off-Xnet validation and verification.
An asset can be owned by one account or jointly owned by several accounts. Any valid change to an asset (status, field value change, change of ownership, etc.) creates a transaction that is recorded in the blockchain ledger associated with the asset class.
An asset class is a way to define a set of assets by their common attributes and processing/verification rules. An asset class has a dedicated ledger to record valid modifications (aggregated into “transactions”) of all its instances. Constraints such as permissions, restrictions, number of validating signatures, various quantity or value limits, etc. can be defined at asset class level.
Xnotes’ definition of asset class differs from the traditional definition of the risk-related “asset class” in the Finance world.
The “Asset Super Class” (ASC) is one of the asset class’ key properties that directly drives the behaviour, the valuation method and the technical requirements of the inputs and the outputs in each transaction involving instances of the asset class. There are 4 pre-defined Asset Super Classes described in 1997 by Robert Greer in The Journal of Portfolio Management:
- Store of Value (i.e. fiat currencies, digital currencies, miles, etc.): does not generate cash flows and cannot be consumed, but still has a monetary value;
- Capital (i.e. equities, bonds, real estate, etc.): generates a stream of cash flows and whose value can be measured by calculating present value of these cash flows;
- Consumable/Transferrable (i.e. time, cinema ticket, etc.): does not generate streams of future cash flows, but rather a single cash flow when it is sold or utilized when consumed;
- Commodity (i.e. raw materials, energy, metals, etc.): originally classified as “Consumable/Transferrable” according to R. Greer but physical commodities are non-capital assets that can be used as input goods to other products and their values cannot be determined by net present value method or by discounting future cash flows because their price is the result of the interaction between supply and demand on specific markets.