Since the birth of Bitcoin ten years ago, its price has rocketed from zero to nearly 20,000 US dollars at its peak. Nearly 2,500 digital currencies have been introduced to the circulation market, creating a total market value of more than 100 billion US dollars from nothing. Blockchain, as the underlying technology of Bitcoin, has received wide-spread attention. Its data structures, consensus mechanisms and algorithms, smart contracts and virtual machines have attracted a large number of technology developers to study, improve and innovate. Many industries, such as, finance, supply chain, intellectual property rights and artificial intelligence are also looking for early adoption of blockchain technology. Large banks and technology giants are vying to provide blockchain solutions and blockchain services in relevant industries.

Nevertheless, in the respect of research and development of blockchain, the most fundamental problem, ie. performance and scalability has not been solved. With regards to practical applications, due to the constraints of the blockchain technology as well as the selection and design of typical business scenarios or other issues, large-scale commercial-level blockchain application or a breakthrough blockchain industry solution have not emerged. As for digital currency, due to lacking of strong correlation between existing digital currencies and real assets, the market demand is quite unstable, which leads to a serious bubble in the digital currency market.

Above all, Paralism starts from technology, using revolutionary parallel blockchain technology to break the bottleneck of the current blockchain technology, and successively realizes dynamic sharding, customizing sub-chain and cross-chain operating and completely solves the problems existing in traditional blockchain such as performance, scalability and cross-chain interconnectivity. Based on high performance, parallel blockchain technology can provide services combined with customizable scripts, convenient chain registration, virtual chain development, advanced smart contracts and other template tools for various projects. Let blockchain technology truly serve the real economy; Meanwhile, it has self-service coin-forging function, which allows all kinds of digital assets to be registered on the blockchain and provides an interface for a stable coin marketplace to strengthen the coalition between on-chain value and off-chain assets. With the above being said, we expect the parallel blockchain technology to bring us to an era of value independence and interconnection.

1.2 Blockchain Technology

Don Tapscott, father of the digital economy, said that “not a robot, not big data, not even artificial intelligence, but blockchain will trigger the fourth industrial revolution in humanity and redefine the Internet or even human society.” Blockchain technology is known as the key technology for the next generation of Internet infrastructure because of the popularity of Bitcoin.

However, the existing blockchain technology is still far from the wonderful vision it has given. First of all, it is still difficult to support the practical commercial application in terms of performance and scalability. A Crypto Kitties game is enough to make Ethereum collapse. From Bitcoin to Ether or recently emerging blockchain infrastructure projects, they want to explore the larger-scale commercialization potential of blockchains and try to improve the performance of blockchain by changing algorithms: PBFT, POS, DPOS are proposed; Sharding technology is brought up, main chain + side chain structure and DAG are proposed from data structure level. Some attempts to avoid the existing problem by using extensions beyond blockchain, such as color coins and lightning network. All kinds of improvements more or less have sacrificed some of the characteristics of the blockchain: some improvements on consensus algorithm have seriously damaged the decentralization feature of the blockchain and make it degenerate into a centralized/multi-centralized fault-tolerant system. Although the sharding technology and the main chain + side chain structure have network division in data processing, it also brings about consistency issue after transaction processing division. Other improvements in the extension layer avoid the disadvantages of blockchain, but did not solve the inherent problem of the blockchain. The Tangle data structure proposed in DAG leads to a more profound doubt: Is it a blockchain? If there is a technology which can achieve the same result as blockchain does, do we still need the blockchain technology ? What indeed is the blockchain?

As for the blockchain technology, there is not a commonly recognized definition. Various improvements on the blockchain have made its boundary blur due to the compromises in different aspects, thus making it less effective. With these problems, Paralism first examined what the blockchain can do as an irreplaceable technology and found that currently the blockchain is the only technology that can implement the following simultaneously:

1) tamper-resistent
2) unrivalled natural credit
3) it can transfer value digitally and automatically, making the blockchain a container of true value and a technology of value transmission.

The reason why blockchain can satisfy the above three requirements is that it has three necessary and sufficient conditions:

1) P2P distributed storage
2) Equivalent consensus mechanism and
3) backward-dependent data structure.

Its methods of processing and storing consensus are the biggest difference from previous computing technology and this is also the major feature of blockchain. Decentralization eliminates the privileged nodes’ biased intervention to systems and data. The equivalence of node status is an important criterion for blockchain systems. “Consensus” is a public result based on specific rules and algorithms which is different from preseted, inclined or mandatory “consistency” in traditional distributed systems and is not subject to the mandatory constraints of specific nodes. Backward-dependence can ensures the traceability and integrity guaranteed by mathematical and cryptographic means via specific data structure. Combined with the above three features, forward-dependence ensures that the “consensus” can be generated, solidified and irrevocably stored, guaranteeing the core functions of the blockchain.

Under the three necessary and sufficient conditions of the blockchain, Paralism constructs a revolutionary parallel blockchain data structure. It also designs a complete decentralized consensus algorithm suitable for parallel structure – Buddy. In parallel blockchain system, unlimited number of sub-chains can be coexist together. Dynamic sharding breaks the bottleneck of performance and scalability of the traditional blockchain while ensuring the decentralization features. At the same time, the technology used by Paralism decouples the blockchain from digital currency. It further expands the application scenarios of the blockchain and makes it more available as the next generation of Internet infrastructure. The parallel structure of Paralism allows diversified digital assets register on blockchain. Moreover, it provides original cross-chain operation solutions, leading blockchain technology to the era of value independence and value interconnectivity.

1.3 The Adoption of Blockchain Technology

Paralism begins with the improvement for blockchain technology. By changing the original serialized structure to a parallel one, it completely solves the scalability problem of the blockchain. And as Dev Mukherjee, head of IBM’s global services, said,“when a technology becomes invisible, it’s a good one.”No matter how popular the blockchain technology is, only when it enters the real world to serve ordinary users, it is the time when this technology really released its value. Paralism’s research on blockchain technology is not limited to improve it, but to be more compatible with the relevant applications, so that the advantages of blockchain,such as tamper-resistent, natural credit and value automatic transmission can be applied in various industries. Even it is used to hatch new industries and build a economic platform based on parallel blockchain in the future.

At present, the development of blockchain technology is still far from expected. No matter in Ethereum, which is referred to be Blockchain 2.0, or EOS, which is known to have million-level TPS. Most decentralized applications are games, gaming etc. And their DAUs are insufficient. Other blockchain decentralized applications (DApps) are also short-lived. According to statistics on Github, the number of blockchain projects in 2016 reached 26,000, with a mortality rate of 92% one year after. On the other hand, various industries, top technology companies, even national governments and international organizations are still actively participating in the blockchain field with enthusiasm: R3, established with sufficient cash reserves, shows the strong exploration spirits on consortium blockchain, especially the financial industry. Microsoft, IBM,BAT etc. have deployed blockchain infrastructure or launched Baas (Blockchain-as-a-service) to help blockchain technology combined with specific applications; some governments are still optimistic about blockchain. Dubai even inclines to use blockchain technology to replace the existing governmental network; international organizations, such as the UN and the IMF also have proposed the applied prospects of blockchain in their fields.

However, no matter user’s attempt in decentralized applications or organizations in blockchain technology, both of them have not produced revolutionary results, the so-called blokcchain killer application has not yet appeared and the time of large-scale commercial blockchain application has not come yet. It is worth mentioning that for blockchain technology, it may be reasonable to have a short gap year. Unlike some people’s expectation, blockchain technology is not a “revolutionary”technology which can quickly break the original business model or existing industry in a lower cost or with a better solution; Blockchain is a “fundamental”technology, its potential may establish a new economic and social system. This will be a gradual process of combination, reformation and changing. Just as TCP/IP has established the foundation for the development of the Internet, it has been at least 30 years from the emergence of TCP/IP to today’s mobile Internet APP era. As the only value container, Blockchain technology is the technical means of solving trust issues and the tool of value transmission. So, the revolution it brings will take a long time to happen.

As a fundamental technology, blockchain still has a long way to go; For different application scenarios, the situation is not the same. To analyze the evolution of a fundamental technology in an application scenario, we can consider it from two dimensions: novelty and complexity. The more novel the application scenario is, the more time it will take to be accepted in application scenarios; the more complex the technical application scenario is, the more ecological resources it needs to be mobilized and coordinated; the more time and efforts it needs to make the technology generate value in the scenario.

The application of blockchain technology needs more time. So what problem should we focus in the current development of blockchain technology ? As we can see from the above figure, no matter a single Bitcoin application or a more advanced smart contract, the current blockchain infrastructure is not capable of supporting any large-scale application: the TPS of Bitcoin is only about 7. Compared with the TPS of Visa, about 10,000 per second, it is not so optimistic. Like the old saying goes : “A nine-storied tower rises from a heap of earth.” Imperfections of infrastructure make the development of blockchain technology lack necessary prerequisites.

As for Paralism, it takes technology as a breakthrough. First, it establishes a blochchain infrastructure with high-performance, high scalability to support commercial applications; moreover, Paralism will decouple the blockchain technology and digital currency. It greatly enriches the application scenarios of blockchain technology. In the future, open source asset self-service distributed ledgers, customized consensus scripts, dynamic sharding and other functional interfaces are coming soon; on the basis of the infrastructure, with the corresponding on-chain tools, Paralism attracts all types of talents and abundant resources to conduct experiments, trials and innovations. It also provides relevant incentives. In the typical foreseen scenarios of blockchain, it will encourage and hatch related applications with foundation. It will gradually promote the development of blockchain technology applications in an open, collaborative and step-by-step manner and form a digital economic ecology based on blochchain.

1.4 Value Interconnectivity

Blockchain technology was originated from digital cryptocurrency and it is also a representative application of the chain value. The rapid development of digital cryptocurrency validates the feasibility of value digitization and digitalized value circulation among anonymous users; it also verifies the process that digitalized value transforms from a functional payment tool to a property of assets and finance. The emergence of digital cryptocurrency is not only an innovation of traditional value exchange methods or the current electronic exchange methods. Moreover, the fundamental blockchain technology will lead to a wholly new digital economy and social cooperation based on value interconnectivity.

Blockchain is the first digital container of value in human history. Because of the emergence of this technical method, it can achieve:

A.Value autonomization, refinement and efficient expression. Owners and creators of various types and different capacity values can be accurately defined and presented their value through blockchain technology and their digital forms. Through the Nash equilibrium game system contained in the blockchain, a value definition with relevant community consensus is finally settled.

B.Form a new social productivity distribution mechanism. Blockchain technology enables value to be transmitted in P2P manner. It directly matches both supplier and demanders and effectively drives value creators to provide productivity for demanders. Meanwhile, it can complete the quantitative automation process of relevant incentive rewards. Therefore, it maximizes the value of supplier’s productivity while allowing demanders to obtain the corresponding value at the lowest cost.

C.Form a new mobility allocation mechanism. Through the expression, interaction and interconnectivity of digital values, traditional cooperation based on capital and credit has become universal. Large number of scattered resources can be accumulated to realize the unprecedented matching efficiency and configuration effect which cannot be achieved in traditional methods.

However, limited by the traditional blockchain technology, value interconnectivity is still in its infancy. Owing to low performance and poor scalability, current technology can not bear the huge data on the blockchain and it can not support a great deal of the transfer of digital value. Moreover, the closure of traditional blockchain can not ensure the free circulation of digitalized value, thus separating the entire digital value ecosystem.

Paralism solves the performance problem of blockchains by using innovative parallel blockchain technology, making it unlimitedly scalable, being capable of baring limitless digitalized expression and transmission and opening the digitalization era for on-chain value. In addition, as for the demand of value interconnectivity, Paralism provides corresponding auxiliary tools, such as right confirmation, assets on-chain registration, self-service coin issuing, stable currency market etc. to promote value registration on the blockchain, value publishing and value transmission. Now UYOO and Fan Ren Chain are the representatives of Paralism’s blockchain technology. Most importantly, Paralism allows unlimited subchains to coexist and conduct cross-chain interaction, which enables value to be operated independently and seamlessly, thus realizing value interconnectivity.

2. Paralism

2.1 Goals

Considering blockchain technology as a breakthrough, Paralism aims to build a blockchain infrastructure with unlimited scalability and a digital economy platform supported by parallel blockchain which will finally evolve into the backbone of Internet value.

Infrastructure with Unlimited Scalability

Paralism adds dynamic sharding to parallel blockchain data structure, which completely breaks through the bottleneck of the traditional blockchain, enabling blockchain to support real commercial applications. Customized script and chain virtualization make Paralism support any amount of sub-chains and independently operated chain-based applications. Original cross-chain transaction makes interconnection possible among different subchains and different on-chain applications. Paralism supports non-structural data, which makes it become a infrastructure, supporting more application scenarios.

A Digital Economy Platform which can Seamlessly Connect Real Economy and Digital World

With high-throughput and limitless scalability, Paralism provides a basic platform for various decentralized applications (DApps) by using convenient tools such as data on-chain registration and sub-chain development. Jointly with technical engineers, content creators, entrepreneurs and relevant personnels, Paraliam offers corresponding hatch fund and incentives through open source codes, API and templets. It explores and tests different types of applications in blockchain. Gradually grafting the features of the blockchain,such as tamper-resistent, natural credit, digitalized transmission to real business world. Driven by this technology, new economic patterns will appear to form a digital economic platform supported by parallel blockchain.

Backbone Network of Value

With the increasing number of business and enrichment of digital assets on Paralism, users can forge coins by using custom consensus scripts, directly publish digital assets and implement the free circulation of digital assets in parallel blockchain system featured by high performance and cross-chain connection. With the development of the function of digital assets, it can be promoted to more wider range of industries, boost off-chain assets to register on the chain, realize the popularization of on-chain assets; Paralism increases the docking possibility between the value system of legal tender and that of digital value system, it achieves the free circulation between on-chain assets and off-chain assets, which makes Paralism a true backbone network of value.

2.2 Features

The system of Paralism has following features:

High performance and limitless scalability brought by parallel data structures and dynamic sharding
Complete decentralization algorithm, low system energy consumption and low node maintenance cost
Pluggable customized consensus allows self-made chains run independently
Original cross-chain solutions enable the interoperability of on-chain business
Templates for all industries, ‘one-click’ deployment of on-chain business
Digital asset self-service publishing and management
Create, host and operate virtual chains
Friendly to non-asset on-chain business
Open ecological development model

2.3 Scenarios

Based on its limitlessly scalable nature, Paralism aims to create a digital economic platform supported by parallel blockchain and a value interconnection network. It introduces an analytical framework for the development of blockchain technology applications. From a single closed-loop scenario, innovative applications and their alternatives, Paralism selects six typical application scenarios as the core test field to promote the development of blockchain technology.

2.3.1 Rapid DApp

DApp (Decentralized Application) refers to applications based on decentralized blockchain networks. Rapid DApp refers to applications with simple applied scenario and easy to form a closed loop. It can be quickly applied to testify the blockchain technology. Existing decentralized applications are not so different from the front-end of traditional Internet applications. The main difference is that unlike most traditional Internet applications, which are hosted on centralized servers, the back-end of DApp is maintained by distributed nodes. So they will not be influenced by the fault of centralized nodes. At present, no large-scale commercial or innovative DApps appear. Reasons are shown below : on the one hand, from the technical point of view, the existing blockchain platforms such as Ethereum and EOS are restricted by performance, they can not support large number of users and their activities. So, most Dapps are hard to commercialized. On the other hand, from the perspective of scenario selection, we still need to explore and test that what kind of scenes are really suitable for decentralized blockchain technology.

The parallel blockchain system of Paralism has high scalability and needs low-maintenance cost. Every DApp can acquire any amount of sub-chains in Paralism to meet the needs of its business operations. Paralism expects to provide a good soil for the rapid DApp while breaking through the expansibility constraints and reducing the maintenance costs of the nodes. DApps that already exist but not yet commercialized can enhance the performance and user experience, expand scale to show their business value; This makes possible for scenario designers who originally expect to access to blockchain technology but being stumbled because of the performance and the cost; More engineers, entrepreneurs and value creators can build small and functional DApps, meanwhile conducting tests to push forward the development of blockchain technology.

2.3.2 Blockchainization and Tokenization

The nature of blockchainization and tokenization is to use blockchain to empower the real economy. Blockchainization intends to use the tamper-resistent, natural trust and automated value transmission features to reform traditional industries. It improves the data security of relevant industries, optimize some part of process, decrease cost and increase automation; Tokenization refers to the application built on blockchain which can perfect the relations of production, emancipate the productive forces, release mobility and enhance industry energy.

The parallel blockchain structure of Paralism can support the real economy services with high performance, high-concurrency and high-throughput, so it is a perfect place for blockchainization and tokenization. At the same time, Paralism actively builds relations with all industries, third-parties and professional consulting organizations to provide feasible blockchain technology solutions for enterprises and industries who have such demands. In addition, with the increasing business on blockchain, Paralism will launch typical templates for certain industries and the auxiliary tools for business with one-click deployment, which will highly invigorate traditional industries.

Typical industries that are suitable for blockchainization and tokenization are as follows :

Management system for existence proof and ownership confirmation

Copyright permission
Digital copyright confirmation
Self-service ownership management
Intellectual property right pre-confirmation, proof of existence

IoT device, IoT application, M2M network

Resource exchange among devices
Automatic tracking for equipment operation
DAO service
Decentralized traceability

Enterprise data and business management system

Reliable data source
Cross-departmental business integration
Configuration management
Automated signing and approval

Digital asset publishing and management; intelligent trading system

Digital currency cross-chain trading
Legal tender cross-border transaction and settlement
Private securities, equal finance

2.3.3 Virtual Chain

The parallel system of Paralism can accommodate limitless chains to coexist and it allows each subchain to customize its consensus, so that each subchain has a complete blockchain system. Users can operate it independently in a completely isolated environment, as if running a self-made chain. The difference is that virtual chain operators do not need to build a underlying protocol. Due to the parallel environment, running the virtual chain will not have any impact on system performance.

In Paralism, users do not have to create DApps or use blockchain to alter related industries or operate economic business. They can develop their own “virtual chain” and become a operator of one or multiple “virtual chains” and later to undertake other business related to blockchain technology applications or build communities, platforms and ecology on the virtual chain. For some blockchain projects which have progressed well in the early stage but encountering problems in practical development process, they can continue to promote their blockchain projects by creating and operating “virtual chains”. The parallel data structure and dynamic sharding of Paralism ensure boundless virtual chain to coexist and independently be operated. At the same time, it largely shares the on-chain and off-chain resources on the Internet and in communities and facilitate cross-chain interconnectivity.

2.3.4 Coin Forging DIY

Major digital currencies deriving from traditional blockchain such as Bitcoin, Ripple and Ethereum have fully verified the feasibility of digital currency as payment instrument, financial instrument and digital assets. It shows the potential of encryption payment, asset on-chain registration, digitalization of securities assets, incentive mechanism in community economy etc.

As a digital economic platform supported by parallel blockchain, multiple ledgers can coexist on Paralism. Users can issue digital currency by customizing consensus script on subchains, create new digital payment tools through making new digital currencies, release and manage digital assets, create incentive tools for communities etc. Coin issuers can define the rules for digital currencies, financial tools and digital assets. Without the constraint for scalability, coin minting will enormously enrich the category of on-chain assets, offer a more convenient way for real economy to be blockchainized and further expand the total volume of digital assets on the chain.

2.3.5 Stable Coin

Stable coin refers to currency whose price is comparatively stable in digital currency market. There are three important reasons for the existence of stable coin in digital currency market: 1) as an important channel for real assets and on-chain assets ; 2) some functional currencies need to maintain a relatively stable price to satisfy operational needs; 3) as a medium of exchange and risk prevented tools for currencies. At present, most stable coin is issued by anchoring legal tender or other real assets. Their major functions are as store of value or as a channel to exchange legal tender, the above is the primary needs for most digital coin users.

With the gradual enrichment and expanding of on-chain assets on Paralism, we will soon launch stable coin template which allows users who have stable coin resources to issue coins on Paralism; The parallel system of Paralism allows multiple stable coins to coexist, thus providing a competitive market for them, its cross-chain interaction function allows on-chain digital assets interact freely with various types of stable coins, thus matching appropriate stable financial resources for on-chain business. In addition, allowing the issuance of a variety of stable coins can transfer the different roles in the financial industry to the chain, such as fund holders, guarantors, fund managers etc. The above is beneficial to establish a complete on-chain financial system and promote the development of on-chain business. On the other hand, it profoundly deepens the interaction between on-chain and off-chain assets and accelerates the process for blockchain to become the genuine infrastructure of value interconnection.

2.3.6 Establish DAO

DAO is a decentralized autonomous organization. It is a kind of community and a way of management of the appearance of blockchain. Ideally, on a Turing-complete smart contract platform, after a decentralized autonomous community is established, it can realize self-governance state without any intermediate management activities. At present, there is not any organization that it completely decentralized. However, DAO provides some inspiration for modern organizations to reach consensus among decentralized nodes, coordinate behaviors and carry out automation management.

In a system where Paralism is completely decentralized and multiple chains can coexist, users can use on-chain tools to customize incentives and rules and share common expectations and potential benefits. With the digitalized and decentralized method, users can reach joint consensus on related business among unequally distrustful individuals and adjust coordination between nodes. Typical application scenarios are as follows:

–Decision making system on public affairs
–Modern Enterprise Management System
–Other community activities

2.3.7 Decentralized Exchange

Although existing centralized exchanges have high efficiency, it is quite risky that plenty of digital assets are accumulated there. Because fake transaction records, fund theft, hacker attack and similar events happen frequently. The core feature of blockchain is decentralization. It would be a contradiction to deal with decentralized assets in centralized exchanges. Decentralized exchanges have more advantages in terms of security, but due to the performance and scalability of existing blockchain and lacking of mature cross-chain solutions in single-chain environments, decentralized exchanges are not good enough to replace centralized ones.

The parallel structure of Paralism has its original cross-chain solution with unlimited scalability which allows fluent interconnection among on-chain digital assets and froms a naturally favorable decentralized trading framework. At the same time, self-service coin issuing and stable coin issuing provide sufficient digital assets and relevant uses for decentralized exchanges. So, Paralism is a natural cradle for decentralized exchanges.

3. Technical Background of Paralism

3.1 Parallel Blockchain Technology

Paralism uses parallel blockchain technology as its foundation which is characterized by limitless sacalability, parallel consistency, complete decentralization, independence and interconnectivity, and supporting for unstructured data.

Most structure of existing blockchains are sequential. In the past, most projects tried to improve the transaction processing speed, namely, TPS, by amending consensus protocols to enhance the scalability of the blockchain. However, no matter how fast TPS is improved, constricted by sequential structure, blocks must be processed one after one, resulting in no essential breakthrough in the scalability of the blockchain. Paralism has greatly improved the chain from underlying structure, designed a revolutionary parallel structure which fully uses the parallel advantages of distributed network, greatly improving the efficiency of block generating and the problem of scalability.

Universally, existing consensus algorithms are based on the account book of transaction which now does not support parallel blockchain technology. On the the basis of parallel data structure, Paralism designed a new consensus algorithm Buddy. Using the principle of equipotent mutual proof, it expands the local consensus to global consensus under certain conditions, while ensuring the complete decentralization.

At present, multiple chain structures, such as subchain + side chain or partial parallel chain structure, have some degree of back-tracking pointer nonuniqueness, namely, backtracking uncertainties. The underlying technology of Paralism uses the periodic Super Block in chain structure to solve this problem, ensuring the same consistency with the traditional blockchain.

Based on the parallel chain structure, Buddy consensus and Super Block, Paralism allows subchains to customize consensus and run independently, while providing a native cross-chain solution, so that subchains can be interconnected.

Paralism is a highly open environment of parallel blockchain. Unlike traditional blockchain which primarily supports transaction data, Paralism has no hard limits on data structures and is very friendly to unstructured and inconsistent discrete data.

3.1.1 Parallel Data Structure

The underlying blocks of Hyperchain can be divided into two types : Local Block and Hyper Block. Local Block structure is similar to the traditional blockchain structure, namely, a forward dependent chain structure. Hyper Block is invented to resolve the consistency contradiction between parallelism and traceability. It is also a forward dependent chain structure and can record Local Block information. Between the periodical Hyper Blocks, Local Blocks are generated together with Hyper Chain, forming a chain structure as below. Such parallel data structure allows multiple subchains to coexist and maintain parallel consistency. Meanwhile, because of Hyper Block, it realizes cross-chain interaction among subchains.

3.1.2 Buddy Consensus

Paralism designs and invents a consensus algorithm for parallel blockchain structure – Buddy. In parallel blockchain structure, there are local consensus and global consensus: In local consensus, subchain users can customize consensus according to business demands or you can use Buddy consensus; For global consensus, Paralism avoids the possible implicit centralization via the updated Paxos algorithm. Therefore, it creates the completely decentralized consensus algorithm for parallel systems–Buddy.

Buddy Consensus amalgamates Proposer, Acceptor, Client, and Learner of Paxos algorithm into two roles : Proposer and Acceptor. That is to say, each Proposer is Client and each Acceptor is Learner. Such equivalent relationship is called Buddy. When there is a on-chain request from subchain or in local consensus, the consensus is formed in the process of mutual proof of nodes which have the same on-chain request and of seeking greatest common divisor. This allows all nodes to participate in block generating and ensures the equivalent status of all nodes. Different from the traditional consensus protocols, most of them, such as PoW, PoS, DPoS, etc., are competitive consensus. Each node must pass the competition of computing power or stake and select a winner to obtain the right of keeping accounts. Such process not only limits the quantity of nodes to participate in block generation, but also wastes a great deal of resources; Buddy consensus allows each node to participate in the formation and the recording process, assuring absolute decentralization and environmental friendliness.

3.1.3 Dynamic Sharding

In the parallel structure of Paralism, subchains can be dynamically increased or decreased without affecting data consistency. There is a customized script in Paralism’s subchain, where user can define the trigger condition. When the condition is reached, subchains will automatically amalgamate nodes into different arrays according to the binary information at the end of the node account and form a Buddy relationship through Buddy algorithm in hash process and different arrays will form new subchains.

In amalgamation process, nodes will conduct mutual proof according to the same data on-chain request. In sharding process, as nodes are grouped, so as the on-chain requests and to-do affairs — such process achieves synchronous sharding in the respect of node network and dealing with affairs . The sharding in Paralism is dynamic. When a periodical Super Block forms global consensus, it will enhance and decrease the quantity of subchains according to customized sharding conditions. This process is dynamically implemented,so there will be no changes on the client side.

The parallel structure allows unlimited subchains to coexist and single subchain can achieve dynamic sharding, which makes the whole system be unlimited to scalability and achieve perfect performance in blockchain operation.

3.2 Cross-chain Transaction

Paralism supports the coexistence of multiple digital ledgers and subchains, this feature provides a natural convenience for cross-chain operations. When two subchains have mutual trading requirements, the requests will be suspended on the temporarily generated subchain in the form of matching orders and they will be settled uniformly in the generating progress of Hyper Block in global consensus. During the settlement, the temporary subchain will disappear automatically in order to reduce the system’s storage for useless data; Or users can save it so as to serialize the cross-chain operation and provide additional letter of credit . Hyperchain has a built-in cross-chain operation engine which can be directly called by the application layer and uses can extend these operations at any time to accommodate more interactional operations on blockchain. The cross-chain operation of Paralism provides an important foundation for carrying complex commercial scenarios and becomes a infrastructure of value interconnectivity.

3.3 Data Structure and Virtual Chain

The data structure of Paralism is as follows:

On Paralism, virtual chain is a space built based on the P2P layer. The chain space is maintained by all nodes, so nodes do not need to save all chain data, they only need to keep the part which is meaningful to them. It can store the redundant chain data via all nodes. Virtual chain contains a set of complete blockchain function like a self-built chain and the node maintenance cost is relatively low, which provides a favorable condition for on-chain business. Meanwhile, it facilitates the migration of transferring inventory business to parallel blockchain system.

3.4 Script customization

As a infrastructure of value interconnectivity, self-service coin forging is an important tool. It is achieved by customizing the consensus scripts of subchains in the parallel system of Paralism. At the same time, its function contains dynamic sharding and cross-chain trading which greatly expands the function and the circulation of the coin.

4. Development Prospects of Paralism

4.1 Plans for Development

Based on the parallel blockchain technology, under the prerequisite of breaking through the scalability of traditional blockchain, Paralism will not limit its development to a certain business, scenario or role. Based on the principle of leveraging the potential of the parallel blockchain and establishing a digital economic platform supported by parallel blockchain, Paralism designs its future development from the following three aspects:

Build a Web 3.0 infrastructure based on parallel blockchain technology
A digital economic platform to promote the development of blockchain technology
Gradually form a new ecosystem of value interconnection

4.1.1 Web 3.0 infrastructure based on parallel blockchain technology

In the early 1990s, the invention of the World Wide Web and the emergence of web browsers changed the state in which machines must be connected in bi-direction to interact with each other, allowing ordinary people to access the Internet without time constraints and interact with content on the Internet, henceforth opening the Web1.0 era of information interconnection.

Large number of Internet platforms emerged, providing services, such as Facebook, Amazon, Youtube, Google, etc. Their appearances allowed social, e-commerce, entertainment, search, etc., which were originally only available off-line now be online and operated in more larger scale. As a result, people are connected more closely, forming Web 2.0, where people can be more connected with other.

However, no matter Web1.0 or Web 2.0, it has a problem: there is a middleman in the communication among people. A website or platform acts as an intermediary between A and B, who are strangers to each other without trust. For this reason, the website and the platform also carry the interaction information between two the parties. Although today it seems that we live in a world of interconnectivity, all data storage is still centralized.

The emergence of blockchain solves the problem of trust issue between unfamiliar nodes, which makes P2P transmission possible, may reshape today’s Internet and bring all humans into the Web3.0 era.

However, the existing blockchain technology has not reached the point where the blockchain can become the Web3.0 infrastructure, both in terms of scalability and decentralization. With the limitless scalability and absolute decentralization, Paralism first solves the problem of restricting blockchain technology to become the core of Web3.0: scalability. Taking this as a starting point, it gradually perfects its parallel blockchain technology, expands the range of usage and connects with other technologies to truly lead humans to the Web3.0 era.

Open source code, perfect technology

As a decentralized underlying network technology, blockchain is open source and aims to attract developers from all over the world to improve its functions such as parallel blockchain, dynamic sharding, Hyper Block, virtual chain and interconnection between blocks and chains.

From LAN to universal net

In the early stage of development, Paralism mainly undertakes related applications, businesses and assets and provides various applications with stability and sufficient performance. As the business on Paralism continues to grow, it will gradually be expanded and become a universal net which allows a wide range of applications, services or asset to be accessed with its outstanding dynamic sharding function, unlimited scalability, and perfect cross-chain interconnectivity.

Connecting other technologies and form a real Web3.0

As the technology which forms consensus among strange nodes, Blockchain provides a new solution for social division of labor, system management, value transmission and production cooperation. So it has the potential to reshape the relation of productivity.However, the shaping of new relations among people can not rely on Blockchain technology itself. Only combining it with storage, AI, big data, IoT or other fields can enhance the connection among person to person, person to machine or even machine to machine so as to truly launch Web 3.0.

4.1.2 Digital economic platform supported by blockchain technology

As a fundamental technology, new applications established on blockchain can engraft in real economy and form a new economic pattern from the time angle. It will inevitably take a long time to move on. In the same period, to promote the development of blockchain requires the coordination between various technical resources and industries. On the basis of breaking through the scalability of the blockchain, Paralism has taken the following measures to promote the development of the digital economy platform:

Design the incentive mechanisms for major communities and promote the development of Paralism at different stages

If an economy wants to be operated on more larger scale, it needs to formulate the corresponding monetary, fiscal, tax, vote and governance mechanisms; Paralism is constructed based on a fully decentralized parallel blockchain technology to ensure its fairness and equality. Under the premise of giving each participant equal opportunities, Paralism designs the incentive mechanism to promote the development of the digital economy platform to attract multiple resources at different stages and to build the economic ecology of Paralism.

Develop tools and templates on the application layer to help on-chain businesses

In addition to providing the underlying technological infrastructure, Paralism will develop the corresponding typical business templates and auxiliary tools for the accumulated types of on-chain businesses to assist the development of decentralized applications, real economies registering on blockchain.

Extensively open API and deepen the cooperation with “Layer 2” organizations

Layer 2 is the second layer of the OSI reference model. It is the Data Link System, which connects the physical layer and the network layer to provide the establishment, maintenance, and release management of data link connections between two network entities. The “Layer 2” organization refers to the organizations which connect the businesses and matches the demands between blockchain technology infrastructure and the application layer: universities, consulting organizations, incubators, etc. Paralism builds a digital economic platform supported by parallel blockchain, especially in the early stages, it will fully open API, strengthen cooperation with such organizations and quickly meet the needs to solve problems relevant to Blockchain and use it to create valuable applications and business. These applications and services will quickly enrich the on-chain businesses and launch the digital economy platform powered by Blockchain.

4.1.3 Gradually form a new ecosystem of value interconnection

Self-service coin forging, assets tokenization

With the unique coin forging function on subchains, users can easily forge coins by themselves, enabling the digital representation of on-chain assets and the blockchainization of off-chain assets, which highly enriches the categories of on-chain assets. Self-service coin forging function allows users to customize their assets in a digital way and can define the small and micro-assets with small granularity, while helping off-chain assets register on the blockchain in order to obtain more mobility.

Stable coin market

With the gradual enrichment of on-chain assets, Paralism will gradually launch stable coin templates for relevant financial resources such as funders, fund managers, guarantors, to issue stable coins on the blockchain. This will improve the financial supply of the chain and further enhance the liquidity of on-chain assets and the interconnectivity of off-chain real assets.

Decentralized exchange

The limitless scalability of Paralism allows it to carry a large number of chain assets with high liquidity. At the same time, the built-in cross-chain operations provide convenient technical conditions for the interaction of on-chain assets. When the category of on-chain assets reaches to a certain extent, original cross-chain transactions will gradually be generated. As the transaction volume increases, a naturally decentralized exchange can be formed.

Value interconnection

The emergence of Blockchain not only makes the value have a digitalized expression and a transmission method, but also realizes a truly decentralized P2P transmission. With the help of self-service coin issuing function and auxiliary tools of stable coin, Paralism expects an explosive growth of on-chain assets, seamless exchange between on-chain and off-chain assets and the interconnection among on-chain assets. In the process of achieving these function, a futuristic era of value interconnection is also coming.

The roadmap of Ecology Construction

4.2 Eco-system Construction

General Introduction of the Commercial Ecology of Paralism

Two key points of the ecological construction of Paralism are:

A.Establish a reasonable incentive mechanism to collect, generate and allocate relevant resources to make relevant people participate in the construction

B.Fully open and decentralized to ensure that all nodes participate in the ecological construction in an equal, fair and efficient manner

4.3 Revenue Model

4.3.1 Token Economy

The system is incentivized by issuing coins or other digital tokens. The demands for coins or tokens are generated in the process of ecological establishment so as to enhance the value of coins or tokens in circulated market, thereby enlarging the benefits of relevant holders. In addition, in combination with the financial-related business scenarios, we have designed a seamless interface for traditional enterprise organizations to launch their own templates tools for STO/IDO/ETO. In this way, real economy can be expanded in multiple dimensions and release the potential value of assets via cross-chain interaction on parallel blockchain system.

4.3.2 Paralism Foundation

Continuous Investment + Incentive

Users can invest or incentivize the projects in the ecosystem via Paralism Foundation. With the development of the project and the growth of benefits, the scale of the foundation will be expanded as well. The expansion of the foundation, on the one hand, it means that the appraisement of the program will be improved, on the other hand, it can feed back the entire ecology and continuously to provide various resources for it. So that the favorable appreciation loop is established between projects and partners.

4.3.3 Decentralized Exchanges and Services

As the underlying infrastructure of value interconnection, Paralism is the best place to establish decentralized exchanges for digital assets which is truly scalable and can conduct cross-chain interconnections. It saves high transaction fees and agency fees for project parties. They will have a more free, efficient and secure asset trading experience. In addition, Paralism can provide a number of derivative services such as digital information, wallet, asset management, etc. and charge subscription fees according to the type of derivative services.

4.3.4 The Value of Data

After Paralism becomes the digital economic platform supported by parallel blockchain and the infrastructure of value interconnection, it will witness and record a large number of decentralized transactions and interactive data which combines artificial intelligence, big data, AI and other technologies with the principle of openness and transparency, the data will generate great value.

4.3.5 Technical Consultation

As the proponent and the creator of parallel blockchain, Paralism will provide personalized technical advice for specific businesses or offer a follow-up technical solution for new functions and technical features. Partners and project parties can use the comprehensive and professional service to further expand the appreciation space.

5. The Forging and Allocation of Para

Para is issued based on the subchain, it is the first minable coin of Paralism, used as system fuel, ecological construction incentives, the intermediary of asset exchange and a tool to form global consensus.

5.1 Para

Para is forged on the basis of Proof of Buddy (POB) algorithm. Buddy consensus is Paralism-exclusive and is its core consensus algorithm for the parallel blockchain system. It forms the global consensus and proof of existence making it capable to support the entire chain to operate even without crypto. PoB is an extension of Buddy consensus. By taking advantage of the self-coinage function supported by Buddy consensus which leaves space for customized consensus, PoB forms non-cooperative game among nodes to maintain the local mathematical difficulty to a reasonable level without compromising the the systematic resistance to attacks. With the protection of the difficulty protection,Para becomes a crypto application with higher level of safety and stability as the major incentive tool and profit certificate. And the computing power and connectivity invested in Para are guaranteed to support the underlying network instead of going into unnecessary power consumption.

5.2 The Principle of Allocation

The total supply of Para is 210 million, allocation principles are as follows:

35% – node incentives, mainly used to reward mining.
10%-ecological incentives, mainly used to encourage partners who contribute to ecological construction and individual nodes which contribute ecological market.
30%-circulation incentives, mainly used to motivate individuals or organizers who are willing to share the future benefits of Paralism or make contribution on circulation
5%-voting incentives, mainly used to encourage individuals in the ecological community to participate in community and to discuss.
20% – foundation, which is mainly used to incubate related development and application projects in the ecological construction of Paralism.

5.3 Economic Model

5.3.1 Inflation with Equal Annual Quantity

Each time global consensus is formed, 3.1415927 Paras will be generated to reward the Buddy nodes which have participated in the formation of a global consensus during hyper block stage who have contributed computational power and connectivity resources to the mainnet and have done solidification work for the systematic parallel consistency which is vital for the development of the digital economic ecology of Paralism parallel blockchain.

5.3.2 Isometric Halving

In the mining incentives of the ecological node, for each Para block , 8 Para coins are awarded; after that, the rewards are halved every four years, until 35% of the 210 million Paras are mined out, and 2.1 Para is completely released.

5.3.3 Total amount of coins with inflation

With the inflation of 3.1415927 Paras for the reward of hyper block, the total amount of Para coins will be close to 271 million.

5.3.4 Currency Recall in Circulation

Paralism will recall Para coin which is inactive for at least five years or more and return them to the mining pool for reallocation.

6. Community Management

Community governance is essential for the development of the Paralism ecosystem. Participating in the governance of Paralism is the fundamental and inalienable right for every member of the community. The mechanism, operation and major changes of the community need to be open and transparent to the whole community and guarantee the right of each community member to participate on an equal and fair basis.

In order to promote the governance of the Paralism community and protect the rights of community users, Paralism establishes the Paralism Foundation, Paralism Autonomous committee and Paralism Executive Committee.

6.1 Paralism Foundation

As the driving force for community management, Paralism Foundation makes the constitution and uses the fund to incubate high-quality projects to promote the development of Paralism ecosystem and community.

Foundation member and electoral system

Currently, the Foundation will set up 13 seats according to the development of ecosystem, consisting of three technical seats, two product seats, two investment seats, four industry advisor seats and two market promotion seats. The first term of Foundation members are the founding member of Paralism. Foundation members will be reelected every three years, half of the committee members will be changed and the voting results come from Paralism Public Affairs Platform. Candidates can apply for the qualification on this platform, then the results come the votes of community members.

The function of Paralism Foundation

Proposal for community mechanism systems and relevant amendment
Search or audit projects which is benefit for the development of the community
Use the Para allocated by the Foundation to incubate projects from the investment community

RFP System

RFP system is an important channel for the Foundation to communicate with community members. For community members who have the will to amend the existing mechanism, offer complementary proposal for community mechanism and hope to operate the community project allocated by the Foundation, the Foundation will require them to submit the proposal and take it as a reference for discussion and resolution.

The process of KYC

For community users who have submitted proposals, Foundation also needs to conduct KYC procedure to help the Foundation have better understanding on relevant proposals and form effective resolutions.

6.2 Autonomous Committee

In the ecology of Paralism, many small ecosystems can coexist. Paralism will use the consensus mechanism Buddy, which is suitable for parallel blockchain in underlying infrastructure to form the Autonomous committee of Paralism Community through equally mutual proof relation so as to conduct community management effectively in various fields.

Initiators of the autonomous committee can select a new or existing community in certain field, and initiate a proposal for establishing committee or election for candidates in community. The seat and the election rule are set by the initiators of the autonomous committee.

Autonomous committees in different communities implement the same rights and functions as the Foundations in their respective communities. If conflicts happen to appear between the Autonomous committee and the Foundation, Autonomous committee can submit proposals to Foundation and solved it through community voting.

6.3 Executive Committee

The Executive Committee of Paralism is responsible for the position, planning and execution of blockchain projects; resource development and docking; promotion and propagation; cooperation and management.

The structure of the Executive Committee is as follows:

Duties of executive committees:

Daily operation and management, organize and implement Foundation resolutions;
Implement the basic management system of the community;
Supervise the implementation of relevant resolutions ;
Respond the problem and the needs in the development of the community to Foundation.

Executive committee members must ensure the consistency of core consensus, high concurrent processing speed and better allocation of node resources. Therefore, they need to actively expand the business and wealth supply for miners, enterprises, beneficial representatives and perform functions such as on-chain transaction request, value transmission, verification etc.

7. Team Member

7.1 Founding Members

Shi Xingguo CEO

With more than 20 years of experience in software and Internet, he was former Vice President of Zhongke Red Flag Software Technology Co., Ltd., Chief Engineer of Internet Laboratory of Software Institute of Chinese Academy of Sciences, inventor of the algorithm of Hyperchain. He has rich experience and extensive academic resources.

Major Achievements: project leader of the first 64-bit Linux Chinese operating system; project leader of the first mobile Internet operating system Moblin; leader of multiple national major projects. He was the winner of the second prize of the National Science and Technology Progress Awards, the second prize of the Science and Technology Progress Award of the Ministry of Education; He was also the owner a number of invention patents. In the aspect of operation, he led the team to achieve 60% long-term market share of self-developed products in the lottery machine field and launched the first mobile Internet product which was mass-produced by Quanta Computer Incorporated and the OEMs of Lenovo. He successfully established and operated the open source community with well-known companies such as Intel and Nokia.

Chen Guangyu CTO

Senior technical expert of mobile internet, he has more than ten years of senior management experience in mobile communication products and Internet technology development. Being proficient in mobile product development, with the experience of managing team over 100 persons, he is a veteran on the aspects of design, development, operation and industry status of mobile internet products.

Experience: technical director of He Yin Liang, in charge of the development of the App of He Yin Liang, hosting “music charts of He Yin Liang” “ Composing to Win One Million RMB Awards Sponsored by La Ka La & He Yin Liang””Auto Music Festival” and other operation activities; COO of Forever Oss, responsible for the promotion, installation and deployment of @Work Enterprise Mobile Communication Platform in large state-owned enterprises; technical vice president of Kiinii.com, in charge of multi-version iteration in multiple platforms and operation; team leader and senior project manager of Sony Mobile Communications (China) Co. Ltd., with the experience of managing team over 100 persons.

Zhang Xiangning Consultant, Angel Investor

China’s first generation of Internet entrepreneur, famous angel investor, member of the 10th
All-China Youth Federation and the 11th Chinese People’s Political Consultative Conference, vice chairman of China Electronic Commerce Association and director of Internet Society of China. At the end of 1995, he founded “www.net.cn” which later became the largest Internet service provider in China. It received investment of IDG, TPG and Newbridge Capital. In 2009, it was acquired by Alibaba Group, the later “Alibaba Cloud”. He is a well-known angel investor who has successfully invested in more than 20 Internet projects(now bow out) including Visual China Group, listed on Main Board of China, BizConf, listed on Second Board, He Yin Liang, which is acquired and invested by Qian Qian Music, Azalea Networks acquired by Aruba, Hankore, listed on the Main Board of Singapore etc. In participation projects contain Himalaya FM, Shenzhourong.com, JPYOO (the largest provider of one-day tour for Chinese traveling in Japan).

7.2 Institutional Members

Cheers! Cultural Investment Co., Ltd.

The company was established in Haidian sub-bureau of Bureau of Industry and Commerce on April 19, 2013 with a registered capital of RMB 1 million. It mainly engages in investment management; asset management; corporate management; investment consulting; corporate management consulting, etc.

7.3 Introduction to On-chain Projects

Tixa Tech Group

Famous high-tech enterprise in Beijing, leading personalized, intelligent network information and online advertising service providers in China. The company was formerly known as VeryE, which was founded at the end of 2000. In March 2004, the company was reorganized as “Tixa Tech Group” after receiving the investment of Mitsui Sumitomo Insurance. At the same time, “Tixa Tech (Beijing) Technology Co., Ltd.”, as an overseas holding company, registered in China, located in the British Virgin Islands, was officially established. In late July in 2006, it completed the second round of financing jointly provided by Mitsui Sumitomo Insurance, JAIC and MIH. Zhang Xiangning is chairman and CEO of Tixa Tech Group. Its products contains: Samulu.com, Narrowad.com, PRnews and Chinaii.

UYOO

Serving for the creator of small and micro value–By using the advanced parallel blockchain technology of Paralism and supporting for the proof of existence, UYOO applies itself to creating an “one-stop” platform which can provide authentic right, content monetization, real-time pricing and quantitative settlement to satisfy the need of efficient monetization under the trend of Internet fragmented composing.

Fanren Chain

Make all possible on Blockchain –“Fanren Chain”is a jointly-constructed social communication platform which is truly suitable for Chinese social behaviors. It avoids the shortages of traditional social communication product – instrumentalization and scattered function and reshapes the relation model. It is a social relation network product contains diversified elements, multiple scenarios and unlimited social network which truly realizes social communications among people.

Advertising Resources Trading Application

The client uses parallel blockchain technology to create a transparent Internet advertising ecosystem — advertisers and third-party advertising alliances can skip intermediate parts and deliver ads directly to potential customers. Parallel Blockchain has high scalability for data, which can accelerate the cooperation accurately and efficiently between provider and demander. Smart contract dramatically shortens the time, conducts real-time settlement according to every promotion and creates convenience and benefits for both parties.

IoT Node Resource Transaction Application

With continuous expansion of the scale of IoT, building “giant system” with billions-level devices is facing a series of changes including wide distribution of nodes, complex environment of applications, security issues, data authenticity, system scalability, information sharing etc. With parallel Blockchain which characterized by high performance and high scalability, it can quickly and effectively complete the establishment of the transaction network among IoT vendors and solve the privacy protection problem in data authenticity, system security and data privacy.

Cosmetic Application

Cosmoschain – an innovator of traditional cosmetics market. Relying on the revolutionary parallel blockchain technology of Paralism, it solves the problem of data authenticity between upstream and downstream stakeholders and builds a credible and reliable relationship between manufacturers and consumers, so that information can be transferred effectively. It regards content community as a carrier to link users. Tokens are used to motivate the generation of high quality content and the development of the community. Therefor, it will ultimately form a favorable market environment for both buyers and sellers.

More …

8. Risk Analysis

8.1 Technical Risk

As a great innovation in the Internet and information technology field in the past decade, the overall development of Blockchain is still in early stage. The iteration of conceptual technology has not been fully tested, applications are mostly adopted in digital currency and it is unable to support and construct a model for full-service commercial business, meanwhile its business model can not be expanded in a higher speed; From the perspective of energy consumption, PoW has high energy consumption and cost which leads to a great waste of resources and computing power; From an ecological point of view, it lacks a mature system regarding relevant development, integration, operation and maintenance, resulting in the immaturity of Blockchain products, less discourse power and influence for open source platforms; From the perspective of security, smart contract vulnerabilities, consensus mechanisms, private key protection, cryptology, algorithm security make Blockchain face serious situation on the security relevant to platform and application; From the perspective of application scenarios, smart contracts and related technologies are applied to certain applications and the development of general application. However, the serial Blockchain data structure, privacy protection algorithm, consensus mechanism and other major Blockchain technologies are not well-prepared for commercial use. The irreplaceability of Blockchain has not been seen yet.

In order to reduce the above risk, the underlying infrastructure of Paralism uses a revolutionary parallel blockchain technology, Buddy consensus algorithm, a new parallel data structure which is totally decentralized. Under the prerequisite of ensuring the security of platform, Paralism breaks through the limitation of scalability and expand the applied scale of Blockchain by way of decoupling the Consensus Layer and the Application Layer. Nevertheless, Paralism is a full-service digital economy platform, in order to achieve independent operation and free interconnection of different businesses and assets, the demand for top technical manpower and for the input of scientific research are quite high. Without a good control, the schedule and the success rate will be largely affected.

In addition, currently, Blockchain is still in its infancy. Its applications only covers finance, game, and public welfare. Relying on parallel blockchain technology, Paralism provides self-service coin issuing, stable coin market, virtual chain on Cloud and rapid Dapp, a total of six application scenarios. Because of high difficulty, long development cycle and uncertainties, the infrastructure of Blockchain is still in testing phase. Facing the competition from other technologies and the obstacle of replacing traditional technology owning to path independence, the commercialization of Blockchain needs to be testified by time.

In response to technical risks, Paralism has taken the following measures:

Strengthen technological research, forge open source community and coordinate the development of software and hardware.
Work closely with top universities, research institutions and associations at home and abroad to promote the progress of standards setting.
The Foundation regularly allocates funds to support the construction of the community of Paralism and carries out in-depth cooperation with other technical communities to strengthen the coordination on technical breakthroughs and reduce technical risks.
Combine market with advantageous resources to build a completely decentralized open network system for Paralism, a digital economic platform.

8.2 Legislation and Policy Risks

With challenges and opportunities, as an emerging technology, Blockchain plays an important role in many industries by establishing a reliable, credible and secure decentralized system and has gradually become a supporting target at the national level. However, Blockchain is not a panacea. With distinctive features such as decentralization which challenges the status of centralized model and mechanism, financial risks brought by “fake crytocurrency projects ”, network security problems represented by MTGOX hacker attacks, Blockchain has attracted high attention of many national regulatory organizations in recent years. Domestically, China holds a positive attitude towards Blockchain technology and supervises cryptocurrencies according to national law. Following the “September 4^th Accident”- China banned all token issuing activities, a series of strong supervision and tightening policies came after. In June 2018, the Ministry of Industry and Information Technology of the PRC issued the “Announcement on the Plan for the Establishment of Technology Standarization Committee on National Blockchain and Distributed Account Keeping”, representing the leading roles of ministries to officially announce the participation in Blockchain research. Overseas, most projects construct their infrastructures with fund from ICO. Fund is brought in with standard market discipline to support the development of innovative technologies. Neutralists represented by the United States and France supervise ICO via legislation and multidimensional measures. They will not strictly restrict the development of Blockchain but with a bottom line; the British regulatory authorities are more moderate. The pioneering “Regulatory Sandbox” policy ensures that innovative enterprises are not restricted by national legal laws; Optimists are more positive and open, they create a friendly environment for Blockchain, for instance, Malta establishes a “Blockchain Island” and Venezuela issues “PTR”; Compared to them, Russia holds a strong attitude on Blockchain. Overall, there are four different attitudes: anxiety, reasonable supervision, positivity and strong supervision. It is undeniable that there are uncertainties between decentralized public Blockchain and centralized government laws and regulations, but the exploration and innovation is still in a rising momentum. Basically, most countries support and encourage the development of Blockchain.

For legal and policy risks, Paralism takes following measures:

A legal public relation department can be set up in the community, it can keep active communication with government employees and design the rule for digital asset issuance, trading, Dapp development, DAO, blockchainization and other aspects under the legal framework.
The operational activities of Paralism involves cryptocurrency transaction, it strictly abides by laws and regulations without interference with third-party exchanges, activities carried out by operational team. Paralism team continues to focus on technology.
Paralism prevents risks by optimizing internal governance, actively participating in the formulation of rules of relevant alliances and solve problems purposefully.
According to the degree of the control to Blockchain in different countries, Paralism will promote the project in a stable manner with a clear deployment and a guarantee not to breach laws and policies.

8.3 Management Risk

The ultimate goal of Paralism is to establish a digital economy platform to achieve the free flow of digital value in parallel blockchain network system. In order to achieve this, project leaders, investors, third-party partners and community builders may face various tests on collaboration. In terms of the team building, the platform has high demand for major developers and to some extent has high dependence on them. Due to the objective conditions of lack of talents and the start-up identity, there are problems of introducing high-quality talents and staff mobility; The most important test comes from the overall management strategy of the project because it involves manpower, financial power and material resources which has high demand on deployment and strategic deployment. Ill management may result in disbandment.

In response to management risk, Paralism takes following measures:

Paralism will manage the ecological builders on the basis of the spirit of the Constitution of the Foundation and ensure that the entire community operates in an orderly manner.
Paralism team will participate in conferences relevant to Blockchain on a regular basis to learn the management experience and communicate with builders about the current needs and prospects to ensure that the project can satisfy the demands of the community and the market.
Improve the quality of management team through internal and external training or other measures. Management team will not rely too much on one individual or several leading members.