Elementh (ICO)

" Elementh is a blockchain designed for the e-commerce sector.

It represents a register of "ownership of goods", which has the ability

to write specialized smart contracts and use the nomenclature standard to quickly

create various decentralized and centralized applications."

About Elementh

Elementh's goal is to create an alternative protocol for the development of decentralized applications used by e-commerce, providing a standard quality nomenclature, guaranteeing ownership of a particular product and the ability to create specialized smart contracts for e-commerce. Elementh will achieve this by creating a blockchain with a built-in Turing-complete programming language, allowing everyone to write smart contracts and decentralized applications, enabling the use of unified product cards, e-commerce transactions and the transfer of ownership.

System of Goods

Along with the system of tokens, Elementh has a system of goods, which can also be used in a large number of applications, such as tracking the movement of a particular item from its creation to the current owner, tracking original goods and detecting counterfeit goods. Unlike the system of tokens, the system of goods also provides for the ability to "issue" a particular product at a particular address, indicating all possible item's data (such as name, manufacturer, bar code, etc.). And if identical goods are already present in the blockchain, the issuer will receive a message about it, and he will have the opportunity to indicate how many items of goods he wants to "issue".

If an item has a serial number, it is possible to specify it when the transfer operation is being performed. To provide protection against data forging, only the hash of the serial number is fixed in the system, therefore only the person who knows the initial number has the ability to make a valid transaction. In the absence of a serial number at the moment of "issuing" goods, the system generates it randomly and the holder is able to use it to identify a particular item of goods by printing out the QR code on the package, writing it in an RFID tag or in any other convenient way.

Unified Nomenclature of Goods

One of the key features of Elementh is the availability of a unified nomenclature. To ensure that the merchandise cards are as complete and accurate as possible, and to reduce the likelihood of creating duplicate cards, the cost of creating and using the card will be different. To create a merchandise card a participant will have to pay, for example, 1 EEE (the price will be set by voting of delegates).

At the moment when the owner adds the item to the system, he is offered to use an existing card or create a new one. The use of an existing card costs 100 times less than the creation of a new one (for example, 0,01 EEE). The cardholder receives a reward for each owner of goods that uses his card, as well as for making a transaction using this card. Any participant in the system can supplement information in existing cards, and the cardholder can accept or reject the proposed changes.

The originality of Goods

Goods in the system exist in a single copy and if an item with the same serial number is added to the system, any dApp can notify the buyer that the origin of the goods is unknown. If the chain of ownership comes from the manufacturer, the confirmation of the originality of the goods will be throughout the entire network.

Accounts

Account is one of the basic objects in Elementh, it is used as identity of participants of the network. Each account has:

account balance of the internal currency EEE;

information about ownership of goods.

All transactions in the blockchain is made by accounts.

Transactions and messages

Any action in the Elementh blockchain is called transaction. The most simple transactions is a transfer of EEE tokens between accounts and a define ownership for goods. Transaction can include structured message for receiver. Accounts may define scripts to handle messages when they are received. The combination of messages and automated scripts is a smart contract subsystem in Elementh.

Blockchain

Transactions in the chain of blocks must be safe, unambiguous and irreversible, and be carried out as quickly as possible to facilitate the reliability and decentralization of the system. In practice, the difficulties arise in two different aspects of this process: selecting a unique node for the production of the block and making the record irreversible.

DPOS Protocol

According to the concept of decentralized autonomous DAC companies, decentralization means that each shareholder has an influence proportional to the number of his shares and that the decision taken by voting of 51% of shareholders is irreversible and mandatory. The challenge is how to achieve 51% of the approving threshold in a timely and efficient manner.

To achieve this goal, each shareholder can delegate his right to vote to a delegate. 100 delegate with the largest number of votes delegated generate blocks according to a certain schedule. Each delegate is allocated a time frame for the production of the block. If he does not produce a block, then their turn is skipped, and the next delegate produces a block according to the list. All delegates receive a payment equal to 10% of the average size of the transaction commission. If the middle block contains a fee of 100 shares, the delegate will receive 1 share as payment.

It is possible that a delay in the network can lead to the fact that some delegates will not be able to generate their block in a timely manner, and this will lead to a split of the chain of blocks. However, in practice this is unlikely to happen, because a delegate can establish direct connections with other delegates preceding and following him in the chain. With this model, new blocks can be generated every 10-30 seconds and under normal network conditions, the splits of the chain of blocks are unlikely or can be corrected within a few minutes.

Reward for the Block

The blockchain that will use the Elementh software will be awarded with new tokens of the block manufacturer every time the unit is created. The Elementh software can be configured in such a way as to ensure that payment of the block manufacturers is restricted so that the total annual increase in the number of tokens does not exceed 5%.

The System of Tokens

The system of tokens can be used in a huge number of applications. The system of tokens is easy to implement in the Elementh blockchain. In order to better understand what a token system is, you can imagine a database with only one operation: take X units from A and transfer them to B, under the following conditions, 1) A has at least X units before the transaction is made and 2) the transaction is confirmed by A. What is necessary to implement this system is the implementation of a smart contract with the above logic.

Decentralized Goods Data Storage

To store goods data, such as specifications, photos, EAN codes, serial numbers, and others, Elementh uses the IPFS protocol. IPFS (the InterPlanetary File System) is a content-addressable, peer-to-peer, hypermedia communication protocol. IPFS allows you to create fully distributed applications. It is aimed at making the World Wide Web faster, safer, and more open.

IPFS is a peer-to-peer distributed file system that connects all computing devices to a single file system. In a sense IPFS is similar to the World Wide Web. IPFS can be represented as a single bittorrent-swarm, which exchanges files of a single Git-repository IPFS is becoming a new important subsystem of the World Wide Web. Constructed correctly, it is able to complement or completely replace HTTP. It can also supplement or replace other systems.

Case Study

Jack, the owner of a small store, was told about the Elementh blockchain and the opportunities it provides. Jack had not sold anything on the Internet before. Having learned about the new possibilities, he decided that it was time to try selling their shoes via the Elementh blockchain, using special applications for sellers. Setting up a store turned out to be quite simple and took several minutes.

Having connected his accounting program to the application, Jack managed to recognize stock balance and bind it to a single nomenclature with fine merchandise cards and complete data of the product features. Information about Jack's goods immediately became available to all members of the Elementh network. Steve saw the store with the boots he needed, immediately made the order, and Jack received a notification that Steve wanted to buy his shoes. Customer's money is immediately transferred to a smart contract, which means that the order is real. Having arranged the delivery of the goods to Steve, Jack began his usual work in the store. As soon as the goods were delivered, the money transferred to Jack's account, which means that he didn't have to wait for a long time and immediately invest the profit in a new product.

One day Jack decided to expand the product range and to sell branded bags, along with footwear. Without hesitation, he opened the b2b application for finding suppliers and manufacturers working in the Elementh blockchain and found the bag manufacturer LOUIS VUITTON. He placed the order, transferring crypto currency to the smart contract. The supplier, having received information about Jack's order, immediately formed a dispatch and transferred data on serial numbers to the smart contract. Now that the transaction is underway, everyone will be able to verify that Jack has authentic LOUIS VUITTON bags in his store and not a fake. This is because in the Elementh network each manufacturer can track the movement of goods and if several owners of the same serial number of one product appear, it means counterfeit and its origin is very easy to track and take necessary measures to notify customers about its existence.

Steve has long been using applications for finding the lowest price for the product he needs. Today he decided that it was time to order new shoes and just in a few minutes he found the couple he needed in Jack's store and placed the order, sending money to the smart contract. Steve has not been afraid to make purchases online and send money to unknown sellers for a long time.

If Steve does not receive the goods, he will simply indicate it in a smart contract and the money will return to him. This time his order was processed almost instantly and the courier arrived an hour later. Making sure that the shoes are of the right quality Steve completed the smart contract and the money went to Jack while Steve became the owner of a new pair of shoes. He can easily sell this pair of shoes in the secondary market as soon as he gets bored with them because Elementh network knows that he has authentic items not counterfeit ones. Just in two clicks he will be able to put them up for sale.

Applications

In general, there are two types of applications built on top of Elementh. The first category is financial applications that provide users with great opportunities to manage and participate in contracts using cash, including buying and selling products and content online and offline, as well as tokens built on the Elementh software. The second category is non-financial applications, such as identifying fake / counterfeit goods in the supply chain, etc.

Decentralized marketplaces based on Elementh. Based on Elementh's blockchain any marketplace will be able to allow sellers to use existing merchandise cards without creating new ones. Data on the ownership of the product will allow you to get rid of counterfeit products sold through the marketplace. Unified merchandise cards will allow you to easily find the lowest price for any products. At the same time, it becomes possible to pay using any crypto currency.
Tracking the movement of goods. The complete producer - distributor - seller - buyer chain, stored in the Elementh blockchain, will allow to find suppliers for any volume of products, up to direct order of goods from the manufacturer. We see it as the future of e-commerce.
Search for goods by geolocation. Seller information available in the Elementh blockchain allows you to find the most convenient places of purchase for any item.
Decentralized sending of messages. The ability to send messages allows you to contact directly with any participant in the transaction. This will allow setting up exchange systems, bidding, obtaining individual purchase conditions and so on.
Store designer. Having all the necessary data to set up a store, the system allows you to create individual decentralized showcases for any vendor in the system.
Fakes search. Data on all participants of the chain will allow to track the appearance of counterfeit products at any stage of the transfer of ownership of goods.
Banking scoring. Access to data on all transactions of any participant of the system will allow instantaneous scoring of the seller, which makes it possible to build credit and overdraft systems by the banking institutions.
Different verticals. Elementh blockchain can be used by any service provider, for example, hotels or airlines with ticket, coupon or voucher entity to store information and track ownership.

Currency and Issue

Elementh blockchain has its own built-in currency, elementh (EEE), which is used for all operations inside the Elementh blockchain, for example, payment of transaction fees.

Token and ICO information: EEE, ERC-20 standard
Total supply: 303 000 000 EEE
Token distribution:
217 500 000 (71,78%) EEE - purchasers
45 000 000 (14,85%) EEE - team
40 500 000 (13,37%) EEE - partners and advisors

Private Pre-Sale start date: 15 January 2018 00:00 UTC
Private Pre-Sale end date: 31 January 2018 23:59 UTC
Private Pre-Sale soft cap: -
Private Pre-Sale hard cap: 1 500 ETH
Private Pre-Sale price: 1 EEE = 0.0001 ETH
Private Pre-Sale bonuses scheme: 50% Tokens

Pre-ICO start date: 1 February 2018 00:00 UTC
Pre-ICO end date: 14 February 2018 23:59 UTC
Pre-ICO soft cap: -
Pre-ICO hard cap: 1 500 ETH minus received in Private Pre-Sale stage
Pre-ICO price: 1 EEE = 0.0001 ETH
Pre-ICO bonus scheme: 1st day: 30% Tokens, 2nd day: 15% Tokens

ICO start date: 1 April 2018 00:00 UTC
ICO end date: 30 April 2018 23:59 UTC
ICO soft cap: 10 000 ETH
ICO hard cap: 30 000 ETH
ICO price: 1 EEE = 0.0002 ETH
ICO bonus scheme: 1st day: 30% Tokens, 2nd day: 15% Tokens

For Further Information About Detail ICO and Project Please Read Our Whitepaper