NKN is a new kind of network connectivity protocol & ecosystem powered by blockchain for an open, decentralized, and shared Internet.

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2 A NEW KIND OF NETWORK NKN is a new kind of network connectivity protocol & ecosystem powered by blockchain for an open, decentralized, and shared Internet.

3 W H Y Shortcomings of today s Internet

4 The Missing Element STORAGE COMPUTE NETWORK $1.4 Trillion business PROOF OF STORAGE e.g. IPFS/Filecoin, Sia,Storj PROOF OF WORK e.g. BitCoin, Ethereum PROOF OF RELAY/TRANSMIT Missing

5 Problems with Today s Internet Net Neutrality Inefficient Network Utilization Deficiency of today s SDN The repeal of net neutrality policy means that Internet Service Providers can now block, throttle, and prioritize content and services as they wish. Network Fragmentation Connectivity and bandwidth are not balanced between supply and demand. Ephemeral networking resource are lost every second. Privacy Traditional systems with centralized controllers can become a bottleneck for performance as well as a target of coordinated malicious attacks. There are more than 12,000+ ISPs worldwide. Only top Tier 1 providers are able to share traffic given preferred peering agreements. Without protections, network providers can extract information from your internet traffic such as a users location, applications, and more.

6 W H A T Revolutionize networking and its business model

7 The Third Pillar of Blockchain By blockchainizing the network layer, NKN is providing the missing third pillar of internet infrastructure. Just as Ethereum has done for compute and Filecoin for storage, NKN will decentralize network connectivity and transmission.

8 Decentralized Connectivity Exchange NKN is the first decentralized network connectivity exchange to handle millions of micro payments for millions or even billions of users in real time.

9 Decentralized Token Defined Network NKN is an emerging decentralized software defined network (SDN) at global scale. It enables network operators and enterprises to dynamically route traffic according to real time performance metrics and cost.

10 H O W Scalable consensus, Proof of Relay, Tokenized connectivity

11 The four core elements of NKN technology There are 4 core elements of NKN's public blockchain infrastructure: Decentralized Data Transmission Network (DDTN), Proof of Relay (PoR), blockchain consensus and incentive distribution mechanism. Together, these elements provide a highly reliable, secure, and scalable network blockchain platform.

12 Inspirations from NKS A NEW KIND OF SCIENCE - STEPHEN WOLFRAM Simple Microscopic Rules can Lead to Complex Behavior Wolfram s 4 Classes of Behaviors to highlight the Edges of Chaos for Self-organization Richness of computational Universe The principle of computational equivalence CELLULAR AUTOMATA Network fully decentralized Homogeneous and Parallel Dynamic, Self-organized and Self-evolving Simplicity of Rules The nature of computational irreducibility

13 Decentralized Data Transmission Network (DDTN) NKN s maintains dynamic topology and routing based on Chord Distributed Hash Table for millions or even billions of nodes and clients, who can join and leave at any time. Unique NKN address is used to identify nodes, providing an overlay on top of TCP/IP.

14 Proof of Relay (PoR) PoR uses signature chain as a proof of relay at all nodes along the network route. This allows a level of secure data transmission that is not only verifiable but also impossible to tamper with or forge.

15 Highly scalable consensus NKN has designed a highly scalable consensus algorithm based on Cellular Automata concept and Ising model, and has applied it to next generation blockchain and peer-to-peer networking across millions of nodes.

16 Token/incentive distribution mechanism NKN s economic model will provide token reward for participants who help relay traffic for other users. In addition, mining reward will also be proportional to the amount of data that participants help relay.

17 Action Plan Economic model, ecosystem, biz dev, and roadmap

18 Economic Model Similar to FileCoin/IPFS but on networking domain, NKN intend to tokenize the connectivity & data transmission capability. At genesis NKN Foundation: strategic investment in building the ecosystem Developers: founding team, community developers Purchasers: purchasers of NKN tokens Over 25 years Miners: get reward for traffic relay & block maintenance

19 NKN Ecosystem Devices NKN Network Fragmentation ISPs Infrastructure Devices Selective Propagation Applications

20 NKN Strategic Partners and Alliances In 2016, Facebook set up a new TIP (Telecom Infra Project) that brings together operators, infrastructure providers, system integrators, and other technology companies to work together to develop and deploy new technologies, changing the traditional way of building and deploying telecommunication network infrastructure. Members include Facebook, China Unicom, Deutsche Telekom, NTT Docomo, Orange (formerly France Telecom), SK Telecom, Vodafone and others. The ONF (Open Networking Foundation) was founded in 2011 by Deutsche Telekom, Facebook, Google, Microsoft, Verizon, and Yahoo!. As a non-profit organization that is still growing, ONF already has more than 140 members and their common mission is to accelerate the deployment of open SDN. ONF promotes open SDN and OpenFlow technologies and standards and promotes the development of products, services, applications, and customer and user markets. Cryptic Labs is an innovation research institute of Stanford University led by Whitfield Diffie, inventor of public key cryptography. It aims to solve basic security and cryptography problems to promote the development of blockchain technology. Cryptic Labs and NKN have signed a strategic cooperation agreement and Dr. Whitfield Diffie is the Project Academic Advisor. We will conduct more in-depth discussions, cooperation and research on solving the key technical difficulties of the project.

21 NKN Business Plan Target ISPs to kick start the NKN network Value for ISP: New source of revenue Extends existing network Uses open source which lowers cost and provides greater agility Aligns with Net Neutrality Network Fragmentation Value for NKN Leverage existing network deployments ISPs are Infra Vendor influencers Selective Propagation Collaborate w/ devices for seamless UE Value for Devices: Improved connectivity performance More connection options / less dependence on any one network Greater device control Better overall user experience Network Fragmentation Value for NKN Embedded device solutions lower barrier to entry and increase adoption rate Selective Propagation Cultivate developers to drive traffic Value for Developer: Easy-to-use development kit Access to a decentralized network with a global reach New source of revenue Network Fragmentation Value for NKN Applications drive network traffic and increase network usage Selective Propagation Disclaimer: these are application examples for illustration only, not under discussion or agreement

22 NKN Roadmap

23 Applications How can we use NKN with some examples

24 NKN is more than a New Internet Net consumer of connectivity Consumer becomes producer Net producer of connectivity Truly open, any device can join and use Anyone with extra network capacity can share New and existing ISPs upgrade and build out new infra

25 Application Vision #1: Want to send files faster, you can ask neighbors for help Jim needs to send a large video to his colleague before 5 o'clock, but his Internet connection is weak and taking a long time to transfer. Greg is nearby and has a fast and reliable network connection. Both Jim and Greg open the NKN blockchain application on their mobile. Jim connects to Greg's phone and uses Greg's high-quality network connection to quickly and easily transfer the file via the NKN network. At the same time, Greg also gains rewards for sharing his idle network resources.

26 Application Vision #2: Internet service providers gain new business revenue Acme is a small rural Internet service provider in the Midwestern United States. With a limited number of customers and everincreasing costs, Acme needs to find new sources of income to remain profitable. Acme chooses to share its network connectivity with NKN users and earns additional incentives for data transmitted.

27 Application Vision # 3: dapps will enable messaging without servers Jay has developed a great instant messaging App. However, Jay wants to avoid the high cost of hosting his application on a centralized messaging server in the cloud. Therefore, Jay chooses to use NKN's dapp network toolkit and p2p network to rapidly create an application that no longer needs a central server. Jay s app will pay tokens to relay traffic across NKN network. In addition, Jay s app can also receive incentive tokens if the app helps relay traffic for other clients and applications.

28 FREE THE BITS, REBUILD THE INTERNET WE ALWAYS WANTED. STORAGE

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