THE CDN MONARCH C A N A D A S D I G I T A L S T A B L E C O I N WHITEPAPER 1 ABSTRACT We invented The CDN MONARCH stable coin as a way for Canadians to control the profit loss on crypto investments The emergence and development of blockchain technology have been undermining powers of centralized service platforms in a wide range of areas regardless of country and industry Finance is a sector desperately in need of innovation, as are many existing industries It has been greatly conservative for a long time, facing limitations in many countries by laws and regulations that continuously hinder the industry's potential for revolutionary development STABLE coin is a decentralized system that help in reducing the stress and eliminating all barriers that occurs in converting fiat currencies into cryptocurrencies Using the Canadian dollar as a case study, we aim at making it easy and to eliminate the fluctuation of the fiat to crypto rates of conversions 2 Table of contents 3 ABSTRACT 3 TABLE OF CONTENTS 4 INTRODUCTION 5 USE CASE 7 TECHNOLOGY STACK 9 ERC20 Token standard 10 Robust User Web Application 11 Choice of Platform 11 PROOF OF RESERVE 12 ON - SITE AUDITING 14 MARKET ANALYSIS 16 Target Customer 17 ROADMAP 18 COMPETITION - STABLE COIN TECHNOLOGY 21 TEAM 23 CONCLUSION 25 LEGAL 27 1 CHAPTER ONE INTRODUCTION 4 A cryptocurrency is a medium of exchange, which makes use of cryptography to secure transactions and to control creation of additional currency units The development of cryptocurrency has been actively growing in the past decade, thus offering a broad range of transactional possibilities for both users and organizations Our aim is to become the first stable digital means which will create a fair medium of converting fiat currency to cryptocurrency in Canada, and in so doing create a community STABLE is a fixed value fiat - cryptocurrency that possess a balance between cryptocurrency and fiat currencies Therefore, one STABLE coin is equal to one Canadian Dollar STABLE coin is only an initial project which will continue to evolve by adding new and innovative modules which in the end will define a Crypto - Fiat exchange value STABLE coin provides a use case for storing and processing digital transactions in a secure and transparent way Our system is based on the Ethereum blockchain application platform and follows the cryptocurrency standards offered by Ethereum at the deployment moment This make us a powerful and reliable technology The Ethereum blockchain’s smart - contracts are used to validate and protect certain rules regarding the distribution, freezing and ownership of coins including the conversions of the individual coins into fiat values These contracts are enforced by the Ethereum network and cannot be invalidated or changed by the company nor by the users FIAT - CRYPTO made easy... 5 2 CHAPTER TWO USE CASE 6 Any cryptocurrency STABLE coin The CDN monarch(Fiat in and out) STABLE coin Business Idea STABLE coin helps you convert your fiat into a cryptocurrency and back in five simple processes which are : User deposits fiat currency into The CDN monarch’s account, The CDN MONARCH generates a STABLE coin and credits the user's monarch’s account The customer uses the STABLE coin to purchase any crypto of his choice and STABLE coin goes into circulation Any cryptocurrency can also be used to purchase STABLE coin and the STABLE coin bought can also be deposited into the users bank account The particular amount of STABLE coin bought by any user is equal to the amount of Canadian dollar used to purchase it This means that 1 STABLE coin = 1 CND Users can obtain STABLE coin outside of the aforementioned process via an exchange or another individual Once STABLE coin enters circulation it can be traded freely between any business or individual 7 3 CHAPTER THREE TECHNOLOGY STACK 8 Innovation and Tech ERC 20 Token standard Ethereum allows organizations like The CDN MONARCH to develop and embed applications ( Dapps ) on its main network without necessitating the need to develop a new blockchain altogether and as such is a much faster, convenient and reliable avenue for building the platform upon which the whole ecosystem will run Moreover, with Ethereum , the security of the system will be assured and can be monitored easily due to the transparency and consistency afforded by cryptographic verifications of the whole network ( Ethereum MainNet ) It is also our selling point towards all regulatory bodies that will be monitoring the ticketing operations where we can offer complete transparency and accountability for every transaction that has happened on our premises, either via the CDN MONARCH Ecosystem or in the internal settlement network We will be using the ERC 20 Token standard that describes the functions and events that an Ethereum token contract has to implement to create our own token called the STABLE coin 9 10 Tether Technology Stack Layers Tether Limited: Issuer, Custodian, Wallet Merchants and Wallets Tethers on Exchange Tether to Wallet Proof of Reserves Other Services Decentralize d Exchange Omni Wallet Tether in Circulation P2P Transfer and Storage Other Features Omni: Emended Consensus System Bitcoin Blockchain 3 2 1 The stack is made up of 3 layers, and other features, the diagram below elaborates more 11 Flow of Funds Process There are five steps in the lifecycle of a tether. The Diagram below elaborates more. Tether User Tether User Tether User Fiat Reserves Held By Tether Limited Fiat In Fiat Out 1 2 3 4 5 Tethers Sent Tethers Sent Tethers Reclaimed Tethers Issued 12 Robust User Web Application This application helps us to achieve all we promised you all these wouldn’t be possible if we don’t have a great technology behind us to support us through the whole process Choice of Platform There are several platforms that are mature enough to accommodate our planned architecture Ethereum is the easiest platform as it comes with built - in smart contracts and due to its widespread use, there is an abundance of developer talent available However, upon conversations with several developers, several issues have been identified with Ethereum’s smart contract as they are not scalable An alternative platform would be the CDN MONARCH technology, which is designed to be easier to use and develop for, uses Java as the developer language (versus Solidity, which is C++ derived language, for Ethereum ), and most of the unnecessary work is done off - chain The last part is significantly important because Blockchains have only so much processing power as they are limited to the number of miners available The more data is thrown at transactions, the faster the Blockchain grows in size, the slower the mining process While Ethereum is still fast today, there are delays of a few minutes in processing transactions, Bitcoin is a good example of what happens when the Blockchain grows out of proportion It currently takes about 25 to 30 minutes The CDN MONARCH technology solves the problem by allowing decentralized applications to handle most of the non - critical transaction data outside the blockchain and only important information such as fund transfers, license keys and so forth get registered on the Blockchain in an immutable format If Blockchain is considered to be a database in a typical web application set up, it should not be riddled with junk and non - relevant data A decision on the platform for development must be made by the CDN MONARCH engineering and design team as soon as possible Besides considering the target Blockchain’s architecture and design, factors such as developer availability, functional compliance, transaction delays and fees as well as a future roadmap must be evaluated 4 CHAPTER FOUR PROOF OF RESERVE 13 14 Storage and Trust Unlike bitcoin and its numerous siblings, a tether is what is known as a STABLE coin , an entity intended to not change in value With most cryptographic forms of money inclined to wild swings, tether offers individuals who fiddle with the market the alternative of purchasing cash that its supporters say is pegged to the US dollar Exchanging bitcoin for dollars at a bank can be awkward and expensive ; by comparison, securing tether is easy, cheap and quick There are several ways that STABLE coin can take to accomplish its goal of launching and maintaining a fully functional decentralized software licensing platform Some options are listed below : 1. Stable conversion rate as promised 2. Regulating the amount of STABLE coin that is in circulation 3. Destroying excess STABLE coin 4. Giving swift and easy transaction experiences 5 CHAPTER FIVE ON - SITE AUDITING 15 16 Accountability Once the high - level architecture of STABLE coin’s offering is locked down to design, a full landscape study must be performed to identify the best way to launch the service In particular, pricing models must be defined It is also imperative to develop the product in a way that will be sustainable for future use The biggest challenge in today’s fiat - crypto world is that it is not ubiquitous and developers must maintain their own proprietary implementations STABLE coin’s business development team must help in defining the account information in a decentralized manner that will be transparent and understandable 6 CHAPTER SIX MARKET ANALYSIS 17 18 Value Target Customer STABLE coin's solution is at the service of both small and medium - scale crypto investors that are all fed up considering the hurdles of changing over fiat to crypto, particularly in the Canadian surroundings While it is perfect to have customers in the substantial space, similar to the USA and other parts of the world, it may not be savvy to begin at that level, the same number of these nations as of now has their own fiat - crypto platforms which they all discover less demanding and more effective, paying little heed to how proficient or wasteful such platforms have been proven A typical CDN MONARCH clients, especially ones in the Canadian ecosystem, will want the nearest solution to their conversion problems based on the following advantages : 1 Decentralized model, which is transparent and hack - proof (one of the basic factors behind Blockchain ) 2 No upfront costs – CDN MONARCH maintains the system and platform, the userer doesn’t pay any money to CDN MONARCH The Blockchain will charge a small transaction fee (TBD – based on platform) 7 CHAPTER SEVEN ROADMAP 19 20 Journey so far AUG 2018 August 2018 Finish MONARCH ERC20 token protocol and smart contract AUG 2018 August 2018 - Finish MONARCH Website and Admin Panel AUG 2018 August 2018 - Finish MONARCH Front End FinTech Web Application