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WhitePaper
A Trusted Data Internet of Value

2018.10.10
“ Abstract
GXChain is a fundamental blockchain for the global data economy, designed to build a trusted
data internet of value.
GXChain has evolved rapidly since its inception, which started from a decentralized data
marketplace (commercialized on September 2017), to a fundamental blockchain ecosystem.
The ecosystem is currently serving millions of users and software developers. To help people
better understand what we are doing now, and where we are going in the future, we are
continuously updating the whitepaper of GXChain. This version of the whitepaper focuses on
the following topics:

This version of the whitepaper focuses on the following topics:

◇ Elaborated GXChain’s governance structure, which can faciliate democratic, transparent

and decentralized governance of GXChain. GXChain is growing from the early stage of
team operation to the community-based governance, further improving consensus.

◇ Introduced the GXChain TrustNodes election, and earnings. The election campaign
will make GXChain more distributed, improving the security and stability of the GXChain
main net. Influential teams in the world will be introduced to the election campaign and
participate in the governance of GXChain.

◇ Optimized technical and system structure of GXChain and the addition of smart
contracts 2.0, cross chain technology, oracle machines, and trusted data modules. We also
give examples of the applications of a trusted data internet and our technical strategies,
thereby setting guidelines for developers.

◇ Announced to swap GXS to GXC with a ratio of 1:1, GXC will be the core asset and act
as the main token for utility and governance of GXChain. Later, in the GXChain ecosystem,
GXC will be the key utility token for payments, transactions, governance, and development.

◇ Illustrated business models of GXC, and its value, generation, and distribution
mechanism.

◇ Announced the road map of GXChain, which focuses on improving its competitiveness
through technical innovation, collaboration, and community governance.

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Category
Abstract................................................................................ 2
Category............................................................................... 3
Introduction.......................................................................... 4
Data Economy Dilemma................................................ 4
Our Visions and Approaches........................................ 6
Governance.......................................................................... 7 Application Scenarios............................................... 27
Structure and Mechanism............................................. 7 GXChain Features................................................. 27
On-Chain Governance................................................... 8 High Performance and Scalability.................... 28
GXChain Committee and TrustNodes....................... 8 Massive Data Support....................................... 28
TrustNodes Competition Terms................................. 9 Developer Friendly............................................. 28
TrustNode Rewards..................................................... 9 Blockchain as a Service (BaaS)........................ 28
TrustNode Election and Ballot................................... 10 Dynamic Global Parameter Adjustment.......... 28
Off-Chain Governance.................................................. 10 Smart Contract IDE........................................... 29
GXChain Foundation................................................... 10 Pay Transaction Fees with any Asset.............. 29
Policy Committee........................................................ 11 Scenarios............................................................... 29
Advisory Committee.................................................... 14 Application Models ........................................... 30
Execution Committee.................................................. 15 Personal Data Rights and Interests................. 31
Subsidiaries.................................................................. 16 Financial Services.............................................. 32
Technical Structure............................................................. 17 Social Network................................................... 32
Data Layer....................................................................... 17 Gaming................................................................ 33
Network Layer................................................................ 18 Health Care......................................................... 34
Consensus Layer............................................................ 18 Others.................................................................. 34
Incentive Layer............................................................... 19 Business Model.......................................................... 35
Contract Layer................................................................ 19 Utility of GXC ....................................................... 35
Application Layer........................................................... 22 Governance .......................................................... 36
Trusted Data Module..................................................... 23 Ways to Acquire GXC.......................................... 38
Trusted General Digital Identity................................. 23 GXC Distribution .................................................. 38
Trusted Data On-Chain.............................................. 24 Evolution of GXChain Projects................................. 40
Trusted Data Storage................................................. 25 Timeline................................................................. 40
Trusted Data Exchange............................................... 26 Roadmap............................................................... 41
Trusted Data Computing............................................ 27 Conclusion.................................................................. 41

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■ Introduction

Data Economy Dilemma

With the maturation of 5G, artificial intelligence (AI), and internet of things (IoT) technologies,
the bigdata era has arrived. The ability of society to generate and process data has increased
significantly. With the advent of the bigdata era, our knowledge, the efficiency with which we
react to demands, social and business planning, as well as collaboration, may be drastically
improved.

The development of the data economy is based on the advancement of computer technology
and the internet, which act as a cornerstone for data acquisition, analysis, and other
essential applications. Traditional internet schemes have laid a solid foundation for data
acquisition, storage, analysis, usage, and exchange. It’s safe to say, the world is digitizing and
interconnecting at an ever-increasing speed.

However, several threats loom over the development of the data economy. First, is the
controversy of data ownership. The great value of personal data has become inescapably
evident, with businesses competing fiercely for this data. Globally, there is a growing trend
that personal data belongs to its producer—the individuals, instead of big cooperation’s. On
the other hand, we do not have a simple yet effective way to manage our data, especially
under the current internet ecosystem and with current internet business models. Moreover,
to strictly control the usage of personal data may also a waste resources by obstructing the
effectiveness of resource allocation. Therefore, there is a great unmet need for a solution that
could protect data ownership while also preventing inefficiencies associated with a lack of
individualized business services.

Second, is the problem of data security. Recently, centralized corporations have suffered
many data scandals and breaches, such as the Equifax data breach, and Facebook–
Cambridge Analytica data scandal. Centralized data storage and usage is frequently a target

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for easy exploitation. The data breaches pose a real threat to personal data security and
privacy, especially for those on social networks. These problems impose a great burden on
companies to maintain the safety of their network and datacenters as even a single breach
may undermine their trustworthiness.

Third, is the emerging challenge of fake data. The current centralized data ownership and
management model makes it very difficult to verify the authenticity of data, available means
and solutions are limited, which significantly impedes social collaboration.

Forth, is the lack of incentive. Data is mostly generated by the individual. Currently, one
lacks incentive to collect and manage their own data, as people cannot benefit from it. It is
necessary therefore, to educate people on how to collect, manage, and use, their personal
data. Big corporations currently benefit most from personal data. Everyone will benefit
if there is a solution that can enable individuals to earn from their own data by allowing
companies to ethically and legally acquire personal data by paying the individual.

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Our Visions and Approaches

An infrastructure upgrade of the current data economy is necessary to solve the issues
mentioned above, which could transform the method of data acquisition, storage, computation,
and exchange. Specifically, people need a transparent, decentralized, high-throughput, and
efficient data service oriented internet.

GXChain is a forward thinking fundamental blockchain directed to solving the issues of the
data economy, based on decentralization, cryptography, and smart token design, GXChain
provides a leading solution for the data economy. In the past two years, the team has
developed multiple, trusted data modules to solve problems in the data economy, including
ownership, security, authenticity, and lack of incentive. Data uploading, storage, computation,
and exchange has been gradually realized with many commercialized applications.

We strongly believe that the data economy could fundamentally accelerate the efficiency
and improve the trustworthiness of the world. In the past two years, the GXChain team
fulfilled every promise, finished development of the fundamental blockchain, Decentralized
Data Marketplace, Blockcity, and many data modules for developers. In the future, GXChain
will continue innovating in the field of the data economy and provide a shared usage and
governance, transparent, and secure infrastructure for people everywhere.

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Governance
Structure and Mechanism
Governance is the key part of a public blockchain. GXChain combines “On-Chain” and “off-
chain” governance, simultaneously putting people and computational code into the governance
system, realizing decentralization, robustness, and efficiency. Every GXChain asset holder
has the right to participate in the decentralized governances. All GXC holders could vote to
determine the future direction, strategy, and operation of the GXChain ecosystem.

GXChain “On-Chain” governance is comprised of the Committee and TrustNodes. The

committee constitutes 11 members, who can propose to vote for the modification of global
parameters of GXChain. The TrustNodes constitute 21 members, who are in charge of the
transaction verification, production, and broadcast of blocks.

On-Chain Governance

◇ The GXChain Committee is similar to the blockchain board, which

is responsible for proposing and voting for the modification of global
parameters of GXChain. The committee is comprised of the 11 top
ranked members in the TrustNodes voting.

GXChain Committee

◇ The TrustNodes are comprised of the miners of GXChain, responsible

for transaction verification, block production, and broadcast of blocks.
The minimum number of TrustNodes is 21.

GXChain TrustNodes

Off-chain Governance
◇ The foundation is a nonprofit organization registered in Singapore.
◇ Comprised of the Policy Committee, Advisor Committee, Execution
Committee, Ecosystem panel, Code evaluation panel, Marketing panel, and
Administration panel.
◇ Responsible for decision making, research & development, global
GXChain Foundation marketing, fund management, and other operations.

Fig.1. Governance of GXChain

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On-Chain Governance
The governance on the blockchain is via the GXChain committee and TrustNodes. The
TrustNode delegates GXC holders to participate in the governance of GXChain. There are 21
TrustNodes in the GXChain ecosystem, which support the infrastructure of GXChain, including
internet, storage, computation, etc. We encourage all TrustNode members to take the lead
to build and develop their community, the competition to be a TrustNode strengthens each
participant in the community and makes the GXChain ecosystem better. The top 11 of the 21
TrustNodes constitute the GXChain committee, who act as the governors of the ecosystem.

GXChain Committee and TrustNodes

There are three roles in GXChain governance.

1. The GXC holder, who holds any amount of GXC.

2. GXChain TrustNodes, elected by all GXC holders, the voting is conducted every
hour, there are 21 TrustNodes. The TrustNodes are comprised of members ranked
top 21 in votes. The TrustNodes are in charge of transaction verification, block
production, and broadcast of blocks. Moreover, the TrustNodes will be rewarded
using the transaction fees on the GXChain. The TrustNodes are open to the
supervision of the GXChain community.

3. GXChain Committee, comprised of the 11 TrustNode members with the most

votes. The committee acts as the governors of the GXChain community. The major
role of the committee is to optimize and set up reasonable global parameters of
GXChain, and foster the long-term development of the GXChain community. For
example, the committee could propose a vote to change the block size, block
time, block reward, number of TrustNodes, number of committee members, and
fees in the GXChain ecosystem.

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TrustNodes Competition Terms

Participants need to stake and lock 10000 GXC, when they want to cancel the competition,
the locked GXC will return after 30 days. To promote efficiency, we made some terms
to determine if the candidates are qualified to be a TrustNode member. These terms are
approved by the ecosystem development panel of the GXChain foundation.

1. Should be a legal entity with a website and social media.

2. Must have nodes that are open to public testing.

3. Have necessary hardware and be able to maintain the server for the node.

4. Must stake and lock 10000 GXC.

Withdrawal will be regarded as ceding from the competition.

5. Have a budget plan for the next three years,

supporting potential hardware upgrades and community development.

6. Have community of a certain minimum size.

TrustNode Rewards

The income of a TrustNode comes from block production and broadcast of blocks. The
amount of income is determined and voted for approval by the GXChain committee. A block
reward is comprised of transaction fees and a reward from GXChain Foundation. GXChain
Foundation will contribute 500,000 GXC to reward TrustNodes every year, for eight years.

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TrustNode Election and Ballot

Ballot to GXC = 1:1, and GXC holders can vote for multiple nodes. The GXC for voting will
be staked at the wallet, transfer of the staked GXC out of the wallet will cancel the voting
procedure. Members ranked top 20 in votes will automatically be elected as TrustNodes, and
one TrustNode will be selected randomly. There are three methods to vote.

1. Vote through Blockcity

2. Vote through mobile or PC wallet.

3. Vote through exchanges (requires support by exchanges).

Off-Chain Governance

GXChain Foundation

The GXChain Foundation established on November 2017 in Singapore. The foundation aims
to facilitate sound and efficient development of the GXChain ecosystem and protect the rights
of GXC holders. Also, the foundation is responsible for fostering communication among GXC
holders, the GXChain community, TrustNodes, and developers.

The GXChain Foundation will disclose the development and operation progress of GXChain
annually. In particular, the foundation will disclose the use of funds annually, and introduce
third-party auditing for supervision. Auditing reports will be disclosed in the annual financial
statements.

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 Policy Committee Advisory Committee

Execution Committee

Code evaluation panel

Administration panel
Ecosystem panel

Marketing panel

Fig.2. Organizational Chart of GXChain Foundation

Policy Committee

The Policy Committee is the decision marker of the GXChain foundation, which is comprised
of 11 members, including project founders, developer lead, investor lead, and community lead.
The committee will elect one president, one vice president, and one executive officer from the
11 members. Introduction of members will be disclosed at gxchain.org.

At least one meeting will be held by the president annually. Notification for the meeting will
be sent out 30 days in advance, and the meeting cannot proceed until more than half of the
members are present at the meeting. A proposal cannot pass until two-thirds of the members
vote in favor of it, and the essential proposal must get approval by the president. The proposal
can pass if all members vote in favor of it in written form, without calling for a meeting.

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Responsibility  
     
The policy committee is responsible for the following affairs:

1. Set and change the governance of GXChain Foundation**.

2. Elect and dismiss president and vice president.
3. Elect other committee members.
4. Decide the operations and investment strategy of GXChain Foundation**.
5. Budgeting**.
6. Add or reduce committee members.
7. Review performances of presidents and executive officers.
8. Determine to split, merge, and cease the foundation**.
9. Other important affairs not listed.

**Essential proposal and requires approval by the president.

Qualifications       

1. Have strong aspiration to join the committee and acknowledge the foundation terms.
2. Have influence in a related community or business scope.
3. Have contributed to the development of GXChain Foundation.
4. No criminal record.

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Election and Dismissal

1. The Founders, developer lead, and investor lead will nominate and determine
the members for the first round.

2. The qualification and terms for the next round of the election will be announced
60 days in advance; all GXC holders can participate in the election, and the votes
for the election will be cast by the rest of the GXC holders.

3. The salary of the policy committee members is open and under supervision by
the community.

4. The policy committee can terminate the position of a committee member after
investigation if the member violates the terms or harms the reputation of the
foundation.

5. The policy committee can terminate the position of a committee member after
investigation if the member commits a crime.

6. The policy committee can terminate the position of a committee member after
investigation if the member resigns voluntarily or is unable to serve the foundation
anymore.

Term of Office     

Two years and may be reappointed consecutively.

The Responsibility of the President and Vice President

1. Summon and conduct committee meetings.

2. Propose to hold a temporary policy committee meeting.
3. Sign important documents and supervise the execution of approved proposals.
4. Decide for emergency events.
5. Nominate a candidate for other committee members

The Vice President can execute the rights of the president with a written form of authorization
from the president.

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Advisory Committee
      
The advisory committee is comprised of experts in blockchain related fields, including technical
experts, professors, investors, and lawyers. The policy committee selects advisors, and the
maximum number of advisors is 7. The members will be disclosed at gxchain.org.

Responsibility     
  

1. Advise and make suggestions for the operations and development of the
GXChain foundation.

2. Advisors can participate in the policy committee meeting, but an advisor cannot
vote.

Qualifications       

1. Professional in blockchain or a related field.

2. No criminal record.

Election and dismissal 

1. The policy committee selects advisors.

2. After investigation, the policy committee can terminate an advisor, if he/she

violates the terms or harms the reputation of the foundation.

3. After investigation, the policy committee can terminate an advisor, if he/she

commits a crime.

4. After investigation, the policy committee can terminate an advisor, if he/she

resigns voluntarily or is unable to serve the foundation anymore.

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Execution Committee     

The execution committee is in charge of the daily operations of the foundation. The committee
is headed by an execution officer, who leads and manages most work of the foundation and
manages the other subdivisions. The committee comprises the execution officer, vice execution
officer, secretary, and head of panels. The members will be disclosed at gxchain.org.

Responsibility

1. Execute approved proposals.

2. Advise works of subsidiaries.

3. Decide to hire or dismiss the staff of subsidiaries, determine the salary of staff.

4. Develop proposal and plans for unexpected emergencies.

Election and dismissal

      

1. Advisors are selected by the policy committee.

2. After investigation, the policy committee can terminate an advisor, if he/she

violates the terms or harms the reputation of the foundation.

3. After investigation, the policy committee can terminate an advisor, if he/she

commits a crime.

4. After investigation, the policy committee can terminate an advisor, if he/she

resigns voluntarily or is unable to serve the foundation anymore.

Term of office    

Two years and may be reappointed consecutively.

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Subsidiaries       

The execution committee leads four subsidiary panels, including the Ecosystem Panel, the
Code Evaluation Panel, the Marketing Panel, and the Administration Panel.

Ecosystem Panel       

The ecosystem panel is in charge of the ecosystem development of GXChain, including

investment and incubation of projects and dApps on GXChain. The ecosystem panel is also
responsible for screening collaboration patterners, business development, and performing due
diligence investigations.

Code Evaluation Panel

The code evaluation panel is in charge of research and development of GXChain projects,
including GXChain, APIs, and reviewing code of community developers. Moreover, the panel will
hold code sharing, presentations, and discussions to make sure the core developers keep their
pace with the bleeding edge of blockchain technologies.

Marketing Panel      

 
The marketing panel is in charge of brand building, and brand maintenance of GXChain, as
well as community development and public relations.

Administration Panel   

The administration panel is in charge of the accounting, fund management, human resources,
legal affairs, and other administrations.

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Technical Structure
Trusted Data On-chain

Application layer
Finance

Healthcare

Social networ

Consumption

Trave

Entertainment

Others

Para- Chain App-Chain DBA Digital Signature

Trusted Data Storage

Trusted General Digital Identity
Distributed Storage

Relay TrustedData Modules
Contract Layer
Built-in 
Oracle Machine Smart Contract
Contract

Trusted Data Computing

TEE

On-chain Governance Incentive Layer
Trusted Data Exchange

DPoS Consensus
Consensus 
Layer
Asymmetric Encryption
P2P Network Network Layer
MPC
Block Account Digital Identity Data Layer

HE

Fig.3. Technical Structure of GXChain

Data Layer

The data layer is the bottom layer of a blockchain; it dictates the block structures. The data
layer of GXChain comprises the block, account, and digital identity. In graphene architecture,
multi-signature accounts were stored in memory. GXChain improves this design and introduces
digital identity. Namely, every account in GXChain has a unique corresponding digital identity
(G-ID).

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Network Layer

GXChain is a distributed topological network, comprised of full nodes. Each node interconnects
equally and is capable of verifying transactions and blocks individually. There is no special
node. Peer to peer networks are an important infrastructure for the data layer, the network
enables nodes to find, connect, and communicate with each other, enabling GXChain to
operate efficiently and stably.

Consensus Layer
Currently, most public blockchain uses proof of work (PoW) and proof of stake (PoS)
as consensus algorithms. Bitcoin, the most successful cryptocurrency based on PoW,
demonstrates the stability and fairness of the PoW algorithm. However, bitcoin was criticized
for its energy-intensive mining activity. Billions of Dollars are invested in performing the
calculations of SHA256 to maintain the network, besides that, limited applications are involved
in this activity. Also, the current transaction speed of bitcoin is only 6 TPS, which cannot
satisfy the scalability and high-throughput demands of a public blockchain. Peercoin is a
relatively mature blockchain based on PoS, which addressed the high energy consumption
of bitcoin. With a PoS system, new coins are generated based on the holdings of individuals.
However, the rich get richer problem is more evident, making the whole network centralize
gradually, although the PoS mechanism saves energy, it is still limited by scalability and
security.

Delegated proof of stake (DPoS) mechanism was born to achieve scalability and high-
throughput, while ensuring network security and decentralization. The DPoS algorithm requires
verification of a current block that has been signed by a trusted node before generating
the next block. DPoS employs TrustNodes by choosing elected nodes to represent other
token holders to verify the transaction, produce blocks, and broadcast blocks. A TrustNode
is required to remain online for a long time, solving the block generation delay problems
which may occurred on blockchains based on PoS. DPoS is capable of 10000-100000
TPS, depending on the network quality, which is suitable for industrial applications. GXChain
is designed to serve the data economy, the data exchange and computation applications
demand long-term stability as well as a high-speed network, making DPoS is an ideal choice.

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Incentive Layer

The incentive is an essential component of a public blockchain, token distribution and

allocation play a vital role in the incentive layer. Compared to mining competition, the
incentives of GXChain are more focused on cooperation and mutual supervision, which makes
the incentive layer work more effectively.

The incentive layer of GXChain achieves its unique On-Chain governance and token allocation
by:

1. The GXChain foundation will allocate some budget into a global smart contract
and control the allocation by a linear algorithm.

2. The GXChain foundation contributes 4,000,000 GXC for the first 8 years to
reward each block producers.

3. The chance for TrustNodes to produce a block is equal.

Contract Layer

The contract layer of GXChain consists of more than 70 built-in contracts, smart contract
and oracle machine, and implements cross-chain relays on top of it, which enabling GXChain
to interact with homogeneous and heterogeneous blockchains.

Smart Contract

GXChain Virtual Machine(GVM) uses WebAssembly(Wasm) to execute the smart contract,

with Wasm, developers can write smart contracts with their primary programming language.
Currently, Wasm supports C++. To make GXChain more developer friendly, we will add more
programming language support in the future.

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Using the GXChain compiler, one can convert high-level programming language like C++
to Wasm bytecode format, which facilitates code deployment on GXChain by calling the
contract deployment API. After deployment, a smart contract account will be established on
GXChain. The account stores the bytecode of the contract and corresponding application
binary interface (ABI). Different from the general GXChain account, smart contract accounts,
and assets are controlled by contract code, instead of by private key. Assigning an account
name and contract method, then using the ABI to interact with the smart contract is required
if users want to call smart contract. The ABI is generated by the GXChain compiler, which
contains the contract methods, method parameters, and persistent data structures. The smart
contract is stored in persistent memory in the form of an object. An object field and type can
be customized by developers.

Calling a smart contract requires burning a small amount of miner fee, the fee is comprised of
3 parts: basic fee (fixed amount), ram fee (calculated by ram usage), and CPU fee (calculated
by CPU running time). The amount of fees are adjustable by the GXChain committee.

Here are algorithms to calculate smart contract fees.

Smart contract deployment fee:

deploy_fee = basic_fee+transaction_size*price_per_kb

Smart contract transaction fee:

transaction_fee = basic_fee + ram_usage * price_per_kb + cpu_usage * price_per_ms

Built-in Contract

GXChain has more than 70 built-in contracts; these contacts are hardcoded to the blockchain,
which is very convenient for developers to use, based on parameters of the contract API.
Requests that do not conform to the API standards will be rejected, although hardcoding
contracts sacrifices some flexibility, it increase security and stability.
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Oracle Machine

The oracle machine reliably inputs off-chain data to GXChain, providing great computation
convenience for smart contracts and DApps. The oracle machine is realized by the combination
of built-in smart contracts and GXChain TrustNodes. Moreover, GXChain has a reward and
punishment mechanism to encourage TrustNodes to provide authentic data feed services.

Cross-chain Relay

Using smart contracts, the cross-chain relay layer can achieve asset custody and cross-chain
operation. GXChain TrustNodes implement off-chain input via oracle machines. With the help
of Crosschain relay, GXChain can interoperate with parallel chains, application chains, and
decentralized business alliances. GXChain cross-chain relay has the following features.

1. TrustNode acts as relay. Apart from transaction verification, production, and

broadcast of blocks, TrustNodes can also function to enable a data feed service
through oracle machines.

2. Security Deposit/Reward and Punishment Mechanism. TrustNodes will put

some assets as a security deposit at the cross-chain relay, anyone may supervise
the behavior of a TrustNode. If a malicious behavior is identified, a portion of the
deposit will reward the whistleblower.

3. Multiple source verification. This setting is to further improve the credibility of

the data feed. GXChain verifies the data authenticity with the help of various data
sources.

4. Free of fees. Traditional relays require many broadcasts on a blockchain,

consuming a large number of transaction fees. When inputting external data,
GXChain has designed a unique method to make it free, by using oracle machines.
This design is secured by the combination of TrustNode acts as relay, Security
Deposit/Reward and Punishment Mechanism, and Multiple source verification.

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Application Layer

The application layer of GXChain provides a rich API for application software. Also, it is
equipped with client packaging for multiple programming languages, which simplifies the user
experience. The application layer includes the following parts:

1. GXClient: contains built-in contracts, smart contracts, oracle machines, and

cross-chain operation modules.

2. DES-SDK: trusted data exchange modules.

3. BaaS-SDK: trusted data storage modules.

4. CLI_Wallet: command line wallet, and packaging API to enable interaction with
GXChain.

5. GXX: GXChain smart contract compiler, can convert smart contract to Wasm
bytecode.

The application layer of GXChain provides a rich API for application software. Also, it is
equipped with client packaging for multiple programming languages, which simplifies the user
experience. The application layer includes the following parts:

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Trusted Data Module

Trusted General Digital Identity

The trusted general digital identity will be the passport of the blockchain world, enabling
users to experience the blockchain world freely by giving users access to every blockchain
application.

Decentralized, and tamperproof characteristics are the best solutions to build trust. The
influence of digital identity is tremendous, not only to people who have access to fiat currency
but also to every human being on the planet. The assets behind digital identity are financial
standing, personal information, credit history, and social relationships, which need trust, just as
a currency does.

Application
Data On-chain 
Management
Data—Assets 
Crosschain 
Interaction
dApp 
Authorization
...

Data Credibility Verify

TEE

Data Computing Channel
Data Exchange Protocol

DBlock Smart Contract
Ch Trustable Data 
Module
GXChain

G-ID

Fig.4. Application of GXChain G-ID

General Identity(G-ID) is a trusted general digital identity on GXChain, which is unique for each
user after they have passed KYC, G-ID has the following functions:

1. Help uses record On-Chain data.

2. Help users record On-Chain behavior and credit history.
3. Help users get through the exchange of cross-chain data and assets.
4. Swift logon to every dApp.

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Trusted Data On-Chain

Blockchain technology, as a distributed and tamperproof ledger, provides an excellent

means for value storage. However, blockchain can only provide tamperproof property for data
on the chain, it cannot control off-chain process. The GXChain trusted data module is going
to solve this issue.

When we are talking about the credibility of data, we might think some examples of how
to verify it. In China, one can use the full name and identification number verification API,
provided by the police department. Also, bank information and accounts API can be used to
verify financial information, provided by the banks. The emergence of blockchain technology
is not going to overturn current modes, instead, to provide a more secure and efficient
supplemental solution:

1. Digital Signature: If a third-party is credible, then GXChain agrees and

acknowledges that. Verified data could be signed by the third-party, via a digital
signature. The signature can prevent verified data from being tampered with, but
also contains identification of the third-party. The signature is open to the public,
allowing validation by everyone.

2. Data Source Verification: GXChain will provide a standard data On-Chain

module, data exchange protocol, and proxy transfer contract. Under the approval
of the data owner, the data can be encrypted and signed by the owner’s private
key (DataSign). The developer uses data and generates a checksum, calling the
proxy transfer contract and binding the data with the G-ID of the data owner. To
use data on GXChain, one needs the authorization of the data owners and to use
DataSign and checksum to validate the authenticity of data.

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Trusted Data Storage

One may question why we need credible data storage, since blockchain is born to be a
distributed and credible ledger. Currently, it is very expensive to store data on the blockchain,
and there are two main solutions:

1. Distributed Storage: Hadoop Distributed File System (HDFS) and InterPlanetary

File System (IPFS) provide good choices in various environments. Storing data off-
chain may not only make good use of the main net resources, but may also give
flexible choices for private storage or public visiting.

2. Verifiable Data Storage: based on blockchain technology, it is important to

leverage the advantage of the distributed ledger, which could ensure tamperproof
data. Cryptography methods, like a digital signature and file Hash, help us to
achieve storage of data off-chain, yet still records the file index and Hash on the
GXChain main net.

DBlock Structure
G-ID DBlock DBlock

G-ID DBlock DBlock CID

G-ID DBlock DBlock

G-ID DBlock DBlock

GXChain Side chain

Fig.5. GXChain Trusted Data Storage

Figure 5 illustrates the design of trusted data storage. Individual data block (DBlock) will
mapped and bound to the G-ID, each DBlock connects in series according to the data version.
The data structure of DBlock contains txid and CID, CID is the Hash of the IPFS file. IPFS uses
multiple formats to ensure each file produces a unique CID, which will irreversibly be stored
at GXChain, making data tamperproof when it’s written to the GXChain. On IPFS sidechain,
DBlock data contains DataSign and checksum, ensuring its authenticity and verifiability.

25
Trusted Data Exchange

Data is an important production resource and hidden asset for both individuals and
corporations. Everyone starts to accumulate data from the time of they are born. Trustable
data modules aim to facilitate hidden asset flow and circulate this asset efficiently and
securely. We already discussed some projects that we developed to solve the credibility of
data On-Chain and storage. On this basis, we are answering, how to solve the credibility of
data exchange and circulation. We think the key point is to solve the data breach problem
during transfer and storage.

From the business point of view, we use off-chain computing to isolate data from its
environment. Alternatively, we use data desensitization to remove private information before
using. Technically, we have the following plans:

Asymmetrical encryption and decryption:

in the process of data transfer, only the private key holder can decrypt the
message, ensuring other people can not decrypt the content. GXChain uses
elliptic-curve cryptography (ECC), and Elliptic-curve Diffie–Hellman (ECDH) to
calculate a shared private key from two public-private keys.

Secure multi-party computation(MPC)：

provides the ability to compute values of interest from multiple encrypted data
sources without any party having to reveal their private data.

Homogeneous encryption (HE):

a form of encryption that allows computation on ciphertexts, generating an
encrypted result which, when decrypted, matches the result of the operations
as if they had been performed on the plaintext. The purpose of homomorphic
encryption is to allow computation on encrypted data.

26
Trusted Data Computing

The trusteddata exchange emphasizes protecting privacy during data transfer and storage,
while trust data computing emphasizes safety during data usage and processing. Off-chain
computing, data desensitization, MPC, and HE are essential techniques for trusted data
computing. MPC and HE, in theory, are feasible. However, MPC requires a large amount
of interaction, HE requires large computation, limiting their performance and efficacy and
preventing large scale adoption.

Currently, the Trusted Execution Environment (TEE) is a more feasible option, providing three
features:

1. Security, TEE is an isolated environment, unauthorized devices and operating

systems cannot operate on it.

2. Privacy, programs running at TEE will be encrypted, unauthorized devices and

operating systems cannot them.

3. Verifiable, under encryption, codes running at TEE could receive verification

from outside environments.

Application Scenarios
GXChain Features

GXChain is a developer-friendly fundamental blockchain and it also has millions of users.

Based on the DPoS consensus mechanism, GXChain is high-throughput, scalable, and efficient.
GXChain equipped with many amenable functions, including G-ID, GVM, BaaS, Blockcity-Pay,
TEE, and Oracle Machines, making it convenient for application development. The following
features dictate its boundless commercial value:

27
High Performance and Scalability

In theory, GXChain is capable of processing up to 100,000 TPS. Considering the growing

demand of On-Chain business, GXChain can expand both horizontally and vertically, enabling
even higher transaction speed without a hard fork.

Massive Data Support

GXChain equipped trusted data On-Chain and trusted data exchange modules, supporting
every area. Developers can trade and use these data under authorization by the data source
at TEE. Applications on GXChain can use personal data of users, after authorization and
desensitization, which is also compliant to GDPR. Based on this support, developers can better
acknowledge the need of users.

Developer Friendly

GXChain has abundant API, IDE, and developer documentation which supports many
programming languages. Also, the GXChain Developer Platform has rich resources, helping
developers to begin, launch, and commercialize their applications.

Blockchain as a Service (BaaS)

GXChain provides BaaS API, which is based on multiple party bookkeeping contracts and IPFS.
The BaaS combines the efficient storage and read ability of IPFS and powerful booking ability
of GXChain. Any data storage can be traced on the blockchain forever.

Dynamic Global Parameter Adjustment

GXChain can adjust global parameters without a fork; GXChain committee can propose to
change GXChain parameters, including block size, block time, and transaction fee.

28
Smart Contract IDE

GXChain developed a tool for developers to compile, deploy, and invoke smart contracts
rapidly.

Pay Transaction Fees with any Asset

Assets issued in GXChain can be used for paying transaction fees. An asset issuer will stake
GXC to maintain the exchange rate between an issued asset and GXC. This mechanism is like
the issuer using GXC to purchase the token he/she issued. As a result, users do not have to
hold GXC to use the GXChain blockchain.

Scenarios

GXChain is trusted data internet of value, aiming to serve the global data economy market.
Features include high performance, abundant On-Chain services, and massive data support,
giving GXChain a solid foundation for large-scale commercial use. GXChain built a thorough
infrastructure for the data economy, enabling many commercial applications to provide
products and services for users. GXChain provides blockchain solutions for data ownership,
data security, data authenticity, and data incentive. In brief, we believe a data ecosystem
based on GXChain could grow healthy and strong, covering finance, data management, social
networking, gaming, healthcare, travel, and other fields.
Application
 Models
Personal Data Management

Social Networking

Data Ecosystem
Decentralized Data 
Health Care
Finance

Gaming

Others
Travel

Marketplace
Blockcity

Data Economy Infrastructure

Fig.6. Application Field of GXChain

29
Application Models

Blockcity

Blockcity is the entrance for users to experience the blockchain world. It is a large-scale
mobile app, based on GXChain. Blockcity attracts millions of users through “Mining” incentive.
Moreover, many great dApps are introduced to Blockcity, which provide various services. One
of our targets is to make Blockcity the largest blockchain dApp platform worldwide and help
dApps to easily commercialize and benefit everyone. In the future, Blockcity will work on the
trusted data economy and help users take control of and earn from their data.

Decentralized Data Marketplace (DDM)

The DDM provides a unique and novel solution for cooperation. Different from centralized data
exchanges, including data middleman, data black market, the development of DDM based
blockchain technology enables users to trade data peer-to-peer. The exchange does not
cache data, prevents fraud, protects privacy and copyrights. Currently, the data marketplace
is providing services for various industries, including government, finance, health care, and
logistics. DDM solved critical problems in data exchange and circulation, which could be used
by society and realize the value of data.

30
Personal Data Rights and Interests

Using On-Chain data to help users retain ownerships of their own data, and monetize their
data. Currently, personal data is not well protected. Data breaches, the black market, and
false data ownership are prevailing. Half of the fortune 500 companies had data safety issues,
including data breaches and hacks. Big internet companies and black-market data peddlers
make billions of dollars in profit from data of users, without sharing any profit with the users
who generated the data in the first place. Using blockchain technology, GXChain provides a
new way for users to collect their data themselves and manage it privately at GXChain, through
asymmetrical encryption. Only users' Data-Key could unlock their data, which truly enables
users to take full control of data ownership and potentially profit through legal monetization
of personal data. Others cannot acquire or use your data unless getting authorization from
you. Moreover, there is a token incentive for users who enable others to use their desensitized
data.

Current problems of  Features of 
Blockchain Solutions
data management GXChain Solution
Retrieve Data  General Identity 
Data Breaches
Ownership (G-ID)

Date breaches and  GXChain provides a  G-ID is unique and 

privacy hacks are not new way for users to tamperproof, which 
 rare the current  collect and manage may function as the 
tech monopoly era. their data themselves. passport to various 
blockchain dApps.
Encrypted Data 
Retrieve  Storage and Data 
Cannot Earn
Decision Right Uncached

Tech giants and black Using a Data-Key,  Authorized data will 

-market data peddlers users can now decide go through 
who can use their data. asymmetrical encryption
of data from users to  and be stored at the
whom the data   GXChain sidechain. 
rightfully belongs. The GXChain does not 
cache any data.
False Data  Retrieve Right Decentralized 
Ownership to Earn Data Management

Big companies claim  Users now control the Users’ Data-Key is 

that users’ data  right to earn from their stored at the local 
belongs to the   data and make a  client, which cannot be
companies, which is   used by others.
not right or ethical. authorization every time.

Fig.7. Comparison Between Traditional Data Management Methods and GXChain Solutions
31
Financial Services

Finance is the earliest commercialized field for blockchain. The emergence of Bitcoin is direct
to solving the problems of the current monetary system. Later, blockchain technology gradually
became adopted for cross-border payment and rapid settlement. Currently, blockchain
technology is being used more and more widely in the financial area, including banks,
insurance, equity trading, and derivatives. Many financial institutions, especially banks, are
exploring and developing their blockchain technology, as shown in many banks’ annual reports.
Many blockchain projects have grown from proof of concept to prototype, and some projects
have already realized considerable adoption and commercialization. Armed with On-Chain
trusted data, distributed storage, and verifiable data storage techniques, GXChain provides
solutions for rapid and low-cost credit verification for the financial industry.

Data and information are the keys to financial applications and products. Risk plays a vital
role in the financial industry, and risk control depends on massive data. GXChain is a public
blockchain with abundant trusted data, providing great support for risk control. For example,
companies may send ERP, stock, cash flow, logistics, and business data to the blockchain, and
exchange and compute with On-Chain data, which could provide genuine and effective risk
control for supply chain finance. The transparent and tamperproof nature of GXChain could
better ensure the data authenticity and consistency for financial risk management models.

Social Network

Networking is a basic need for human beings, which makes the social network the most
fundamental and important application at this time. As of 2017, among all global internet
users, 73.9% of them use the social network, which is a huge number and a good field for
massive adoption of the blockchain. Current social networks have many issues, including fake
accounts, bad security, offensive content, and a poor compensation for content creators. To
our knowledge, there is no blockchain application presently that is ready for massive adoption.

Social Network applications based on GXChain could better solve that problem. Data sent
to the GXChain could be better protected from fraud and breach, thanks to asymmetric
encryption technology. Trustable data exchange modules could allow users to exchange
their information safely, reducing asymmetric information, and improving understanding.
Decentralized social media could protect everyone from forced advertising and content
32
distribution, making users the content judge again. Moreover, the introduction of the token to
a social network could better stimulate quality content production.

Social applications based on GXChain could provide more convenient and accurate services,
thanks to massive On-Chain data. For instance, the credit information service on GXChain
could rapidly help two strangers get genuine information from each other. Currently, GXChain
has abundant personal information, and everyone possesses a unique G-ID to bind their
information, including credit card history, e-commerce, pension fund, education, age, and
phone number. Those data may be stored on the GXChain through trusted data storage
modules, which ensures their authenticity and security. For example, if person A wants to
better know the information of person B, he can apply to check B’s information, after getting B’s
approval, B can use his Data-Key to unlock his data and authorize A to check the information.
We believe blockchain technology and the massive On-Chain data of GXChain can significantly
empower social networks and help related applications commercialize.

Gaming

The token economy could also integrate with the gaming industry, which also has a large
market and has been growing rapidly over the past 20 years. There are nearly 600 million
gamers in the world, equating to holding up a more than 250 Billion dollar market. However,
gaming developers are facing many difficulties, most games have a very short lifetime, and
active users often decrease rapidly, despite a few top games operated by several titans in the
industry. Also, pay rate and ARPU have little room for improvement. Blockchain technology
offers a chance for gaming developers to address some of these issues. First, the stage of
development of blockchain is early, providing a relatively balanced market. Second, the token
economy could bring more user incentive and desire to participate. Blockchain-based gaming
has a novel worldwide market, which has quality customers. GXChain has millions of high-net-
worth users and supports handy token issuance, which is a great catalyst for gaming startups.
Two famous games based on GXChain already proved the above statements. Moneyhorse, an
artificial pet education game, attracted 240,000 users and generated 6 million CNY revenue
in 3 months. Blockchain and Racing, another game based on GXChain, received token deposit
worth more than 1.3 million CNY on launch day, which an ARPU of 1000 CNY, far beyond
the industry average of 300 CNY ARPU. In the future, GXChain ecosystem will have more
interesting games and boost gaming developers considerably.

33
Health Care

Healthcare accounts for a significant part of a country's economy. Blockchain in health care
also has tremendous development potential. Blockchain technology could help to trace every
transaction among pharmaceutical manufacturers, suppliers, and patients, which is essential
for verifying and preventing counterfeit drugs. Tapan Mehta, market development executive,
at a healthcare and life sciences services practice, at DMI, was quoted in Healthcare IT News,
saying, “A blockchain-based system could ensure a chain-of-custody log, tracking each step
of the supply chain at the individual drug or product level.” “Working off of that would not only
make it possible to distinguish the real thing from the counterfeit but, “to trace every drug
product all the way back to the origin of the raw material used to make it.

GXChain is incubating a decentralized data exchange in the healthcare field, which aims to
solve circulation problems of medical data. The project employs token as an incentive to
motivate users to upload their data to the blockchain. For instance, an individual could allow
and authorize their medical data to be used by a specific company and get a token reward
in exchange. Additionally, this project could solve the data silo issues when patients seek
healthcare outside of their country, using blockchain technology, one can rapidly share his
medical data to healthcare providers worldwide.

Others

There are many other useful applications on the GXChain ecosystem and improving many
aspects in human life. The high efficiency, abundant On-Chain services, and massive On-
Chain data of GXChain could empower applications in every walk of life, including retail,
catering, food traceability, renting, real estate etc. People cannot live without credit and trust;
any credit-related application could build nicely on GXChain.

Massive data on GXChain could provide a solid credit evaluation service for applications
that have credit evaluation needs. For instance, Lucia is a credit renting community that
commercialized based on GXChain. Using GXChain to connect anyone who has need for
renting, under the incentive of token, to build a credible and highly autonomous renting
ecosystem. GXChain is helping everyone access the data they need, or to monetize the data
they produce, and every steps counts.

34
Business Model
Utility of GXC

GXC is the core asset of governance and application on GXChain, with a total supply of 100
million. GXC is Similar to ETH on Ethereum network, EOS on EOSIO. Figure 8 depicts the
business model and utility of GXC.

Value
Governance Application

On-chain Pay for 
Governance Development 
Resources
Proposal
Pay for System 
Voting Resources

TrustNodes  Means of 
Maintain Payment

Data 
Transaction

Community 
Incentive

Utility

Fig.8. Utility of GXC and Business Model

35
Governance
GXC plays an important role in the On-Chain governance and off-chain governance. For On-
Chain governance, GXC can be used for expressing opinions, for off-chain governance, GXC
acts as an incentive.

For On-Chain governance, GXC has the following utilities:

1. On-Chain Proposal: committee members can make proposals, which consumes

GXC, also, the approval of the proposal requires the committee to use GXC as
payment.

2. On-Chain Voting: GXC could be used as the ballot for election of TrustNodes
and policy committee members.

3. TrustNode maintainence: GXC will be consumed when creating and changing a

TrustNode.

For off-chain governance, GXC is used as an incentive for developers and general users.
GXChain Foundation will reward people who actively participate in GXChain community
development.

36
Value of Utility

Besides governance, GXC has broad utility in the data economy. It plays a vital role in
Development Resources, System Resources, and Means of Payment in dApps, and Data
Transaction as shown is table 1.

Table 1 GXC Utility Details

dApp creation
Smart Contract Deployment
Development Resources Use BaaS
Asset Issuance
Developer Registration

Account Creation
Account Upgrade
Transaction
GXChain System Resources
Calling DApps
Calling Smart Contract
Using other Infrastructure of GXChain

All dApps based on GXChain support GXC 
Means of Payment in dApps
as payment for services and goods

When others need personal data, they can use GXC 
Payment for Data Transaction to purchase it from users, under their consent, and
 acknowledgment. 

37
Ways to Acquire GXC

1. Participate in GXChain “mining”, as the role of TrustNodes

2. Blockcity Rewards
3. Finish tasks and quests
4. Community contribution
5. Service fee income from applications
6. Data exchange income.

GXC Distribution

GXC Distribution

Early Investors: 
10%

Token Sale:
GXChain Foundation:  24.51%
51%

Blockcity Mining Pool: 
5%
Community Developer Fund: 
9.49%

Fig.9. Distribution of GXC

38
 Ratio 
Distribution Details
(%)

10 Early Investors Distributed to the earliest investors

24.51 Token Sale Sold to a public investor in 

March 2017

The incentive for users to use 
5 Blockcity Mining Pool Blockcity dApp, and authorize 
their data 

Fund to incubate developers 
9.49 Community Developer Fund to build dApps based on 
GXChain 

21 Founding Developers

Will use for the construction of 
GXChain data ecosystems, 
GXChain Ecosystem such as developer community 
10
51 growth, Hackathon, 
competition, and conference

Will be used for community 
6 Marketing operation, global press release 
and broadcast

4 TrustNode Rewards Incentive for TrustNodes

Daily Operations, partial 
10 Operations employee salary, accounting 
fees

39
Evolution of GXChain Projects
Timeline

August 2016, The GXChain project established

October 2016, Release data acquisition module-Metrix 1.0

February 2017, Release GXChain whitepaper 1.0

June 2017, GXChain main net launch, Decentralized Data Marketplace 1.0 launch

June 2017, GXC(GXS) start to trade at yunbi.com

August 2017, opened GXChain source code

September 2017, Decentralized Data Marketplace achieves commercialization

October 2017, Release GXChain mobile wallet

November 2017, Release GXChain whitepaper 2.0, discussed “CBD” data ecosystem

January 2018, Release personal mobile app-Blockcity, users passed 100,000 in 24 hours

March 2018, Blockcity passed 1 million users.

May 2018, Release GXChain BaaS.

June 2018, Decentralized Data Marketplace upgrades and serving more than 100 financial

companies.

July 2018, Blockcity passed 2 million users.

August 2018, Release GXChain smart contract 2.0 test net, supporting WebAssembly.

September 2018, GXChain wallet account passed 1 million.

40
Roadmap

October 2018, Release GXChain whitepaper 3.0, discussed the role of GXChain in data

economy.

Q4 2018, Release GXChain smart contract 2.0 main net.

Q4 2018, main net upgrade, replace GXS by GXC with ratio 1:1. GXC will become core asset

in GXChain.

Q1 2019, Trusted Execution Environment (TEE) development, further improve the data security

and privacy.

Q1 2019, Oracle Machine development, expand the application of GXChain virtual machine

(GVM).

Q2 2019-Q2 2020, GXChain 2.0 development, explore a more developer friendly while highly

standard fundamental blockchain infrastructure.

Conclusion
The whitepaper illustrates a technical upgrade from

app-chain to the fundamental blockchain,

including a revolutionized governance and

consensus. GXChain will use the vision that blockchain

technology could rebuild a credible world,

armed with democratic, transparent, and decentralized

governance, as well as more extensive community

participation, to develop a trusted data internet of value.

41