DAPP Solutions A platform to bring cryptocurrencies for small businesses.

DAPP Solutions LTD May 1, 2018

Given the evolution of the cryptocurrencies market in the last years, several companies and individuals around the world are investing on the potential of this niche. As many markets, the cryptocurrency one is also very competitive. Some startups have been founded completely through them and complex systems have been created using the blockchain technology. As time passes, we realise that there is an increase in the number of activities that can be performed using cryptocurrencies, but we notice that some of them do not happen yet because of the lack of tools that focus on ease of use. Due to the revelation of the potential of this market, several cryptocurrencies have been created in the last years. This diversity contributes to develop a fear in less informed people of using crypto assets as a currency or even as an investment – as some enthusiasts do. Due to the constant increase of cryptocurrencies value, e.g. Bitcoin, many people are still interested in buying and using virtual currencies, but the number of different cryptocurrencies and the complexity of use turns it difficult for the masses to adopt. This project aims to create a tool that will enable the payment of products and services on our platform using cryptocurrencies. Our platform will include several modules, which are: 1) DAPP Solutions Wallet: platform where the balances can be checked; 2) DAPP Solutions Pay: a tool that will be installed on smartphones to make payments using the contactless technology, and; 3) DAPP Solutions Connect: a marketplace where companies will be able to develop mini-apps to communicate with their customers efficiently, sell products and book services. This is much more than a proof of concept; it’s a breakthrough technology for businesses and customers.

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Table of Contents

1 History and Background ................................................................... 3 1.1 Cryptocurrencies and its Technologies ........................................................... 3

1.1.1 Blockchain ................................................................................................ 3 1.1.2 Transactions in the Blockchain ............................................................... 3 1.1.3 Mining ...................................................................................................... 4 1.1.4 Cryptocurrencies ....................................................................................... 5 1.1.5 Bitcoin ....................................................................................................... 5 1.1.6 Ethereum .................................................................................................. 5 1.1.7 Inicial Coin Offering ................................................................................. 6

1.3 Mobile Apps for Businesses ............................................................................. 7 1.3.1 Why Are Small businesses Building Apps? ............................................. 8 1.3.2 Mobile Apps as a Tool for Improving Customer Service ........................ 8 1.3.3 Small businesses Favor Features That Produce Consistent ROI .......... 10 1.3.4 Demographic Factors & Likelihood of Building a Mobile App ............. 10 1.3.5 Survey Highlights ................................................................................... 11

2 DAPP Solutions App, Modules and Applications ............................ 12 2.1 DAPP Solutions Wallet .................................................................................. 13

2.1.1 Antifraud Module .................................................................................... 14 2.2 DAPP Solutions Pay ...................................................................................... 14 2.3 DAPP Solutions Connect ............................................................................... 15

2.3.1 DAPP Solutions Connect (First Version) ............................................... 16 2.3.2 User App ................................................................................................. 17 2.3.3 Company Management Module ............................................................ 18

3 Technology ..................................................................................... 19 3.1 Ethereum ........................................................................................................ 19 3.2 Smart Contracts ............................................................................................ 20

4 Initial Coin Offer (Token Sale) ....................................................... 21 4.1 Hard Cap ........................................................................................................ 21 4.2 Soft Cap .......................................................................................................... 21 4.3 ICO Phases .................................................................................................... 22

5 Distribution Pattern of Tokens ....................................................... 23 5.1 Spending plan for raised funds ..................................................................... 23

6 Roadmap ........................................................................................ 24

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1 History and Background

1.1 CRYPTOCURRENCIES AND ITS TECHNOLOGIES

1.1.1 Blockchain

A Blockchain is a public reachable ledger. Anyone can review it, but no one can assume control over it. The blockchain is updated by the whole network. Every entry has to follow a very strict set of rules. Every ten minutes a new block is added to the blockchain. A block consists out of the transactions, that have been announced in the last 10 minutes. New blocks have to incorporate a link to the previous block, so that the order of the blocks is immutable fixed. This creates the block chain. To change a transaction after it got built into the blockchain, all of the blocks that came after the transaction would have to change, which is really unfeasible. The blockchain is distributed and broadcasted to thousand participating users, that verify every blocks validity. This system makes it impossible to generate fake cryptocurrencies.

1.1.2 Transactions in the Blockchain A transaction is a process in the blockchain-network. This process is created when it is initiated by an address, e.g., when an address wants to transfer coins or interact with a smart contract. Nodes are computers in the network that run the blockchain software. When a transaction between two nodes takes place, e.g. the trade of coins, it gets broadcasted to every node in the network.

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Figure 1 — cryptocurrencies workflow, via Blockgeeks.

1.1.3 Mining

Some nodes called miners order and collect transactions. A few years ago it was still possible for every PC owner to act as a miner. In the last years the required computational power increased and now it needs a specialised hardware. The miner write their collection of transactions into a block. The size of the block depends on the technology of the cryptocurrency. The miner who is the first to solve a cryptographic puzzle is allowed to broadcast his block to the network. They receive Bitcoins as a reward for solving the problem – which is called block reward.

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1.1.4 Cryptocurrencies

According to CoinMarketCap, by this moment, there are around 1600. Most of the cryptocurrencies are based on the blockchain, which makes manipulation of transactions almost impossible. However, some cryptocurrencies, like IOTA or RaiBlocks are not based on the blockchain principle and explore other possibilites to accomplish those properties. Cryptocurrencies have a couple of advantages over fiat money. In most of them the number of coins is fixed to a certain limit, which makes them secure against inflation and governmental money printing. Some cryptocurrencies also enable private transactions and the money can not be seized by banks or the government. Bitcoin is the first and best known Blockchain cryptocurrency.

1.1.5 Bitcoin Bitcoin is the most recognised digital, decentralised currency, which is created through solving cryptographic tasks. Transactions are written into a decentralised blockchain, which ensures that Bitcoin is always available and immune to manipulation. The revolutionary aspect of Bitcoin is that it does not need a central authority like a bank for validation of transactions. The current price of Bitcoin in fiat (USD, EUR, GBP, Yen, etc.) is created through supply and demand.

1.1.6 Ethereum

Ethereum is another on decentralised blockchain platform, which is mainly used for easy execution of smart contracts, so digital contracts, which run automatically. This for example would enable a container to initialise the payment of its freight, after arriving at its destination. The name of the associated currency is Ether.

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1.1.7 Inicial Coin Offering

ICO is an acronym for “Initial Coin Offering”, so the first distribution of a new coin. Not without a reason ICO sound similar to IPO (Initial Public Offering) – the first distribution of a new share, or the first distribution of company shares for companies that have been owned by a private person before. As of today almost daily ICOs take place, and every ICO usually creates its own coin. If the company is successful and/or uses the coin in its ecosystem the value of the coin usually rises. This is what early investors are counting on.

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1.2 MOBILE APPS FOR BUSINESSES For a small business, having a mobile app remains relatively unique. Adoption and use of mobile apps by Small businesses are still in the “first inning of the ball game,” according to Andrew Gazdecki, CEO of Bizness Apps. Clutch, a research and survey company, surveyed 355 US small business owners and managers. According to their findings: • 42% of small businesses have built a mobile app; • Improved customer service was the primary reason for small businesses to build an

app; • Approximately half (49%) of small businesses dedicate in-house resources to

support mobile app development and investment.

Figure 2 — plans of small businesses who does not have an app yet (information from 2017).

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1.2.1 Why Are Small businesses Building Apps? Small businesses are racing to adopt mobile apps for a simple reason: to help improve their business. Based on the data surveyed by Clutch and input from industry experts, the two primary means by which mobile apps facilitate business improvement are through improving customer service and providing return on investment (ROI), both of which are reflected in the reasons Small businesses give for building mobile apps, as well as the features they value in the apps themselves.

Figure 3 — larger businesses are more likely to have an app for their businesses mainly due to the cost.

1.2.2 Mobile Apps as a Tool for Improving Customer Service Small businesses say ‘increasing sales’ (39%) and ‘improving customer service’ (30%) are the primary reasons they decided to develop a mobile app. However, the motivations driving small business investment in mobile apps are shifting. For Small businesses that built apps in 2016, ‘improving customer service’ (36%) was listed as the primary reason to develop, ahead of ‘increasing sales’ (34%).

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The shift is a product of the increased amount of small businesses entering the mobile app market, which has fuelled an increased concern with creating value for app users, according to Cameron Banga, Project Manager and Co-Founder of 9magnets, a mobile app development company.

Figure 4 — mobile apps as a tool for improving customer service.

“As time goes on, businesses are finding that just having an app isn’t necessarily doing a lot of great work to their bottom line. People won’t just go download your app because your business has an app,” Banga said. “I think these businesses are finding that having an app doesn’t increase sales, but the customer service experience on mobile is definitely increasing customer satisfaction.” This shift in motivation ultimately shows that while small businesses’ end goal of developing a mobile app concerns improving their bottom line, the means to that end have transformed, taking on a more customer service-oriented framework.

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1.2.3 Small businesses Favor Features That Produce Consistent ROI

The features Small businesses favor for mobile apps are directly related to improving ROI. Consider social integration and mobile payment, the two most valuable mobile app features for small businesses.

“Social media and mobile payment features are very easy to measure a return on investment, which is why I believe they were so valuable last year. Small businesses can track how many new fans or followers are being created through their mobile app and track their spending from there. For mobile payments, calculating return on investment is just as easy. Small businesses can directly see how much revenue is flowing through their app.”

— Andrew Gazdecki, Bizness Apps

Small businesses seem to be following Gazdecki’s logic: both social integration and mobile payment were considered even more valuable for Small businesses that built apps in 2016.

1.2.4 Demographic Factors & Likelihood of Building a Mobile App Efforts to improve business may be why small businesses decide to build mobile apps; yet, whether they build an app is partially dependent on demographic factors, including company size and the age of the owner. 1.2.4.1 COMPANY SIZE Small businesses with more employees are significantly more likely to have a mobile app than smaller companies. Specifically, 85% of Small businesses with fewer than 10 employees do not have a mobile app, while over half of Small businesses with more than 10 employees have built a mobile app.

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1.2.4.2 AGE OF OWNER Small businesses with younger owners are also much more likely to have an app than those run by older owners. In fact, Small businesses with owners under the age of 45 (52%) are two times more likely to have a mobile app than those with owners over 45 (26%).

1.2.5 Survey Highlights • Small businesses are quickly adopting mobile apps as tools to help grow and improve

their business. Two-thirds (67%) of Small businesses planned to have a mobile app by the end of 2017;

• Specifically, companies run by younger owners and managers and companies with more than 10 employees are more likely to have built a mobile app;

• Small businesses are trending toward using in-house resources to help build mobile apps, though industry experts suggest a mix of in-house and external resources may be the optimal method to carry out this process.

Figure 5 — main benefits considered, in the view of SMEs, when developing an app.

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2 DAPP Solutions App, Modules and Applications The DAPP Solutions app is a set of modules that aim to offer users a secure way of managing payments processed through cryptocurrencies. In this project we will develop the whole platform of payments and a tool as a proof of concept. The modules of the mobile app are DAPP Solutions Wallet, DAPP Solutions Pay and DAPP Solutions Connect. This app was developed for both iOS and Android. Every web service needed to support this project will be hosted on Amazon Web Services, as it’s a fast and reliable cloud services platform. The signup process will be very straight forward. The user will enter his phone number and receive a confirmation code via SMS.

Figure 6 — wireframe for the signup process.

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2.1 DAPP SOLUTIONS WALLET The wallet will show the user’s balance and give them the possibility to do P2P payments. The wallet can hold DAPP Solutions Coin, our platform asset, and the users can:

1) Send money to their wallet using a credit or debit card; 2) Withdrawn to a registered bank account or PayPal according to the current rate; 3) Sent assets to another user, by entering their wallet ID or pointing the camera to the

transaction QR code; 4) Changed from money to DAPP Solutions and vice versa.

To ensure that the whole process is legally valid, the user will be asked to have their ID verified. via KYC Legal.

Figure 7 – wireframe showing balance, transaction history and options to send or receive DAPP assets.

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2.1.1 Antifraud Module Every transaction will be validated by an antifraud module that will analyse whether the money is from a reliable source or not. This action aims to avoid chargebacks that could compromise the value of the asset itself. To determine the reliability of each transaction, the antifraud module will use machine learning algorithms, geolocation and other user data will be used to analyse each transaction. This process will be transparent for the user, so if a transaction is marked as suspect, it will be declined and the user will not be able to buy assets. For a possible solution, the user will be redirected for the support team in order to help us verify whether a transaction is a fraud or not.

2.2 DAPP SOLUTIONS PAY This module of the DAPP Solutions app will offer to the user the possibility of making payments using their phones. This will work in the same way as Google Pay and Android Pay, but the user will be able to use any of his balances according to the rates of that specific moment. In order to process the transaction, the user will have to remain their connection turned on. So they will be able to choose one of the wallets before proceeding to the payment. This module will be added in the second phase of DAPP Solutions development.

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2.3 DAPP SOLUTIONS CONNECT The DAPP Solutions Connect is much more than a proof of concept; it’s a breakthrough in the way as companies interact with their customers. Most of the big companies develop their own apps and offer in the regular marketplaces (Google Play, Apple App Store, etc.). However, to develop an app is, most of the times, expensive and requires that the business owner have a very clear idea of what exactly they want. Also it’s complicated to find companies that you can trust and pay for the project with no regret even with a tight budget. The DAPP Solutions Connect is a marketplace of businesses mini-apps where customers will be able to book services, buy products, ask for information, chat, etc. The companies will be able to create their mini-apps for free and use geolocation technologies to achieve their customers more efficiently.

Figure 8 – home screen for DAPP Solutions Connect.

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2.3.1 DAPP Solutions Connect (First Version) This prototype is a proof of concept and it shows how our technology opens new horizons for businesses. The DAPP Solutions Connect is a platform that makes it possible to all the kinds of businesses to have their own mini-apps to offer to customers:

1) Manage bookings; 2) Manage reservations; 3) Manage services; 4) Buy products; 5) Businesses information (phone, email, public Wi-Fi password, etc.); 6) Real-time chat with staff. This is being meticulously developed, to be sure that the

tool will not be used for spamming. In order to promote a conversation, the user will need to start talking. Also, both the user and the business can block the conversation at any time. By doing the communication only inside the app, the user does not need to expose their personal contact information.

Both companies and users will have an app to manage their profiles in the platform.

Figure 9 – chat example between a customer and a business.

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2.3.2 User App The user will be able to check the businesses by category and region to perform all the kinds of different available actions. Also when an user passes by a company, it will show a notification on the app showing that the related mini-app is available to use. The user does not need to install any of the mini-apps, as they are automatically downloaded when the user selects the business or pass by any of the registered ones – under the users permission.

Figure 10 — from left to right: user profile information, business information and services list.

Also, in order to make the checkout process flawless, the user can combine different products or booking into the same cart. By doing this, the user can checkout only when they finishing their shopping list. All this items can be easily managed in a list prior to the payment.

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Figure 11 – checkout review screen.

2.3.3 Company Management Module The company module will offer to the company owner an easy-to-use interface to setup his mini app for the first time. This setup includes products, services, timetables, information, etc. Afterwards, the company will be able to manage their business mini-app and it will receive notifications for any important events related to bookings, enquires, etc. For the future versions we will implement an advertisement platform, so the owner will be able to feature their businesses in the first positions of our home screen. Through the management module the company will also be able to print performance reports and check previous chats.

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3 Technology Our platform will use the Ethereum blockchain technology as it provides all the necessary tools to develop smart contracts, manage cryptocurrencies and even the structure to run the Initial Coin Offering.

3.1 ETHEREUM Ethereum is a decentralised platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a DAPP Solutionss contract) and many other things that have not been invented yet, all without a middle man or counter-party risk. The project was bootstrapped via an ether pre-sale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe. On traditional server architectures, every application has to set up its own servers that run their own code in isolated silos, making sharing of data hard. If a single app is compromised or goes offline, many users and other apps are affected. On a blockchain, anyone can set up a node that replicates the necessary data for all nodes to reach an agreement and be compensated by users and app developers. This allows user data to remain private and apps to be decentralised like the Internet was supposed to work.

Courtesy of the Ethereum Foundation

www.ethereum.org

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3.2 SMART CONTRACTS It is worth noting that bitcoin was the first to support basic smart contracts in the sense that the network can transfer value from one person to another. The network of nodes will only validate transactions if certain conditions are met, but bitcoin is limited to the currency use case. By contrast, Ethereum replaces bitcoin's more restrictive language (a scripting language of a hundred or so scripts) and replaces it with a language that allows developers to write their own programs. Ethereum allows developers to program their own smart contracts, or 'autonomous agents', as the Ethereum white paper calls them. The language is 'Turing-complete', meaning it supports a broader set of computational instructions. Smart contracts are usually written in Solidity, a programming language specifically developed for this purpose. It is then compiled into byte code, which is submitted to the Ethereum blockchain. Here it will remain active in readiness to be triggered by a specified event. After that, all nodes in the Ethereum network will execute it. The Ethereum virtual machine (EVM) will execute the code and record all approved transactions, and by way of the principles of the distributed node structure and functionality, will create an immutable ledger containing transactional data. Smart contracts can:

• Function as 'multi-signature' accounts, so that funds are spent only when a required percentage of people agree;

• Manage agreements between users, say, if one buys insurance from the other;

• Provide utility to other contracts (similar to how a software library works);

• Store information about an application, such as domain registration information or membership records.

Based on information from CoinDesk (leader in Blockchain)

www.coindesk.com

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4 Initial Coin Offer (Token Sale) The total supply for the ICO will be 350,000,000 DAPPCs. The Initial Coin Offer intends to raise 143,750 ETHs through its phases (Pre-ICO, Phase 1 and Phase 2). On the 1st of July 2018 will be launched the Pre-ICO, and 250,000,000 tokens. The initial price for the token will be

1 ETH = 4000 DAPPCS. The ICO will be held from 1st of August 2018 to 31st of September 2018. It will be divided in two phases. Users will be able to buy DAPP Coins (DAPPCs) from:

• Ethereum (ETH) – preferred currency;

• Bitcoin (BTC);

• Litecoin (LTC);

• Dash (DASH). A hundred million tokens (100,000,000 DAPPCs) will be available for sale during the ICO.

4.1 HARD CAP

Maximum investment amount: 143,750 ETHs.

4.2 SOFT CAP

Minimum investment amount: 50,000 ETH. There will be no minimum or maximum size per transaction nor referral system.

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4.3 ICO PHASES

The table below illustrates the numbers for each phase of the ICO. Every non sold tokens will be offered in the next available phase. Phase DAPPCs Collected ETHs Collected Price per ETH

Pre-ICO 250,000,000 62,500 4,000 Phase 1 80,000,000+ 50,000+ 1,600 Phase 2 20,000,000+ 31,250+ 640 Totals 350,000,000 143,750 -

Table 1 – numbers for each phase.

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5 Distribution Pattern of Tokens

The ICO is conducted in 3 stages. Each stage has a certain amount of ETH that can be collected. Once that amount of ETH is collected, the next wave begins. Pre-ICO has the maximal discount, and then tapers off with every subsequent stage. The distribution pattern of Genesis block in the DAPP Coin network will include 500,000,000 utility tokens in the following manner:

• 150,000,000 DAPPCs: reserved for people directly involved in the project:

o 120,000,000 DAPPCs: reserved for the founders and development team; o 24,000,000 DAPPCs: reserved for the Advisory Board; o 16,000,000 DAPPCs: reserved for the Bounty Program.

• 350,000,000 DAPPCs: will be distributed via the token sale.

5.1 SPENDING PLAN FOR THE TOKEN SALE RAISED FUNDS

Figure 12 – chart for spending plan.

105.000.000,00

52.500.000,0052.500.000,00

35.000.000,00

35.000.000,00

28.000.000,00

17.500.000,00

17.500.000,007.000.000,00

Project Development

Legal Services

Support

Marketing

Research and Development

DAPPCs Network

Integration

Recruitment

Accounting

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6 Roadmap This is the first draft for DAPP Solutions platform. Notice that this is subject to minor changes within time, according to the development process.

First draft of the ideaNOVEMBER, 2017

Smart-contract designMARCH, 2018

Whitepaper DevelopmentMAY, 2018

Approach MMEMAY, 2018

Website + Dashboard DevelopmentJUNE, 2018

Pre-ICO PhaseJULY, 2018

ICO Phase 1AUGUST, 2018

ICO Phase 2SEPTEMBER, 2018

App Launch for Android and iOSOCTOBER, 2018

DAPPs Pay LaunchNOVEMBER, 2018