SCF Chain

Standard cross finance chain

Establishing a High-Performance Public Chain for Next-
Generation Cross-Chain Financial Interactions Standard

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 Table of Contents

BACKGROUND ................................................................................................................................................... - 4 -

1.INTRODUCTION ............................................................................................................................................... - 5 -

2. DUAL-CHAIN ARCHITECTURE ................................................................................................................... - 7 -

2.1 STRUCTURE ................................................................................................................................................. - 7 -

2.2 MAIN-CHAIN FEATURES ........................................................................................................................... - 8 -

2.3 FIN-CHAIN FEATURES............................................................................................................................... - 8 -

3. PERFORMANCE AND DEMAND ASSESSMENT ...................................................................................... - 10 -

4. CONSENSUS MECHANISM......................................................................................................................... - 13 -

4.1 MAIN-CHAIN CONSENSUS ....................................................................................................................... - 13 -

4.2 APOS CONSENSUS OPERATION MECHANISM .................................................................................... - 14 -

4.3 FIN-CHAIN CONSENSUS .......................................................................................................................... - 15 -

5. ZERO-KNOWLEDGE PROOF ..................................................................................................................... - 18 -

5.1 INTERACTIVE ZERO-KNOWLEDGE PROOF (A GAME FOR COLOR-BLIND PEOPLE) ................................. - 19 -

5.2 RECURSIVE ZERO-KNOWLEDGE PROOF............................................................................................ - 23 -

6. COMPATIBILITY WITH ETHEREUM'S EVM（ADDITIONAL FEATURES OF THE MAIN-CHAIN) ....................... - 24 -

7. ATOMIC SWAP ASSET CROSS-CHAIN（ADDITIONAL FEATURES OF THE MAIN-CHAIN) ............................. - 25 -

7.1 HOW ATOMIC SWAPS WORK.................................................................................................................. - 25 -

7.2 HASH TIMELOCK CONTRACT (HTLC) .................................................................................................. - 26 -

8. MODULARIZED PARALLEL CHAIN（ADDITIONAL FEATURES OF THE FIN-CHAIN)........................................ - 27 -

9. COMMON PROGRAMMING CONTRACT DEVELOPMENT (ADDITIONAL FEATURES OF THE FIN-CHAIN) . - 28 -

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10. SCF GOVERNANCE AND INCENTIVES................................................................................................... - 29 -

10.1 SCF INSURANCE AND ESTABLISHMENT ............................................................................................ - 29 -

10.2 LINEAR RELEASE .................................................................................................................................... - 29 -

10.3 SCF CONSUMPTION AND DEFLATION................................................................................................ - 30 -

11. SCF FINANCIAL INFRASTRUCTURE ........................................................................................................ - 30 -

11.1 FINSWAP CROSS-CHAIN ASSET TRADING .......................................................................................... - 31 -

11.2 DECENTRALIZED PROOF OF CREDIT .................................................................................................. - 33 -

11.3 FINANCIAL SOUL-BOUND TOKENS (FINSBTS).................................................................................. - 35 -

11.4 NATIVE STABLECOINS (FINUSDS) ........................................................................................................ - 36 -

12.SCF ECOLOGICAL APPLICATIONS .......................................................................................................... - 38 -

12.1 FINPAY PAYMENT APP ........................................................................................................................... - 38 -

12.2 CROSS-CHAIN FINANCIAL BILLS TRADING MARKETPLACE (FINBILLS) ...................................... - 41 -

12.3 DERIVATIVES EXCHANGE (FINEX) ....................................................................................................... - 42 -

12.4 WEB3.0 SOCIAL PLATFORM (FINBOX) ............................................................................................... - 43 -

12.2 FINSOUL NEXT GENERATION GAMEFI ............................................................................................... - 44 -

13.SUMMARY OF DIFFERENTIATED CORE COMPETENCIES .................................................................. - 46 -

13.1 ANALYSIS OF TECHNICAL COMPETENCE ......................................................................................... - 46 -

13.2 FINANCIAL FORECASTS ........................................................................................................................ - 46 -

14.DEVELOPMENT ROADMAP....................................................................................................................... - 48 -

15.REFERENCE APPENDIX OF THE TECHNICAL FRAMEWORK INSPIRATIONS SECTION .................. - 51 -

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Background
Over the past century, the financial sector has provided society with rapid access to original
capital, significantly advancing the development and progress of human culture. Yet, as capital
expanded, mainstream financial institutions and regulators prevailed and began to dominate the
financial system with an unshakable standing progressively. However, they were criticized for their
over-centralized power and operational loopholes. These financial institutions and so-called
regulators have been repeatedly questioned for manipulating the market in their own interest,
resulting in greater risk to investors' assets. Traditional financial models and regulatory
approaches failed to address the root causes of investors' concerns about the safety of their
money, rendering the investment environment deteriorating. For this reason, the financial market
is in dire need of a change to transform this situation.

At length, beginning in 2019, decentralized finance (DeFi), underpinned by blockchain technology,

has enabled people to explore a whole new market paradigm, where code is the law and investors
can operate financial activities entirely on a blockchain that requires no trust.

Programmable Decentralization

Censorship Resistant Trustless

The distributed ledger technology (DLT) enables more transparent and secured financial
transactions and asset depository.

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Smart contracts and immutability eliminate the risky manual operation process and the potential
hazard of intermediary doing evil, further enhancing the security of financial data and
matchmaking efficiency.

A batch of innovative models such as flash loans and algorithmic stablecoins, which are
inconceivable in traditional finance, have sprung up, leveraging the underlying characteristics of
consensus. Undoubtedly, blockchain finance is making the world even more fascinating and
beautiful. However, we are keenly aware that many urgent challenges are standing in the way of
innovation.

The throughput of existing public chains can hardly meet the centralized and concurrent response
of large-scale financial services, the data/information silos caused by multi-chain competition
are aggravating, and cross-chain financial interactions are yet to be adequately addressed.
Furthermore, the high development threshold in crypto has turned away many excellent teams and
traditional institutions committed to DeFi. The Web 3.0 world calls for an ultra-high-performance
public chain that can bridge the technical gap among traditional finance, crypto finance, and
multi-chain interaction, serving as the cornerstone for DeFi's robust development and popularity.

1.Introduction
In pursuit of a better DeFi infrastructure, Bob Lambert and William Thompson, both Stanford
graduates, have formed a team of blockchain senior technologists and fintech academics to
create SCF, a public financial chain with a dual-chain architecture. Ultimately, all public chains
seek to optimize the impossible blockchain triangle, namely high performance (i.e., scalability),
security, and decentralization based on their goals.

Decentralization is about leveraging a large number of network nodes to pack blocks for data
validation. Typically, the more nodes there are and the more dispersed they are, the higher the
decentralization (closer to the ideal blockchain concept). Security is the cost of gaining control
of the network and is usually anchored to real-world assets during the design of consensus
mechanisms. For example, the Proof-of-Work (PoW) mechanism is anchored to the hash rate.
Performance can be briefly construed as the number of transactions processed per second. The
primary cause of blockchain inefficiencies is the time required to agree on data across more
nodes for each transaction.

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The traditional single-chain structure cannot reconcile the balance of the three, which is
determined by the law of logic.

SCF has a concurrent performance over Ethereum. Besides, it has a massive number of nodes
for computation and verification that are hard to look away from for Solana and other insufficiently
decentralized chains, which expands the performance and improves the ecology based on
reliability and anti-attack.

Security
SCF
CHAIN
Ethereum

Fantom Solana
Decentralization Scalability
Scalability

Ethereum Security + Decentralization

Security

Fantom/Solana Scalability

SCF Chain Security + Decentralization + Scalability

Main!Chain Security + Decentralization

Fin!Chain Scalability

We believe that financial innovation is an ultimate proposition that accompanies social

development. In the future Web 3.0 network, innovations are bound to flourish, and only an all-
around public chain with sufficient foresight and inclusiveness can become the infrastructure
matrix of DeFi.

In designing SCF, we build the network layer through the dual-chain structure and the cross-
chain ecology through atomic exchange and a standard programming interface. Combined with
the next cross-chain DEX, we demonstrate the innovative practice of the application layer,

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providing a systematic methodology for the industry. Finally, we establish the next-generation
standard model for cross-chain financial interaction.

Network Incentive Application

Main-Chain Fin-Chain Apos Pbft Pos Pow Cross-Chain DEX

2. Dual-Chain Architecture
2.1 Structure
SCF which stands for Standard Cross Finance pioneers a dual-chain structure and serves the
blockchain industry and traditional financial institutions, respectively. Each chain performs its own
function and interacts with one another efficiently, solving the challenges of performance, security,
decentralization, cross-chain transactions, and ecological scalability for the financial sector. The
network layer of the SCF Chain comprises the Main-Chain and the Fin-Chain.

Share ecological internal

Ultra-high TPS, fully decentralized

Multi-layered security architecture, Lightning Network (LN) based parallel cross-
chain, and enhanced privacy transactions
Main-Chain Compatible with Ethereum EVM, original FVM parallel chain, and modularized Main-Chain
configuration for chain issuance
Blockchain developer Zero-Knowledge Proof support, and smart contract written in common language Blockchain developer
Ethereum Ecosystem Project Ethereum Ecosystem Project

LN-based dual-chain interaction

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2.2 Main-Chain features
The Main-Chain is cornerstone of SCF Chain's existence, geared towards blockchain developers
and users, handling contractual interactions between native governance tokens and the Ethereum
EVM projects. The functions and features of Main-Chain are:
· Executing smart contracts
Executing smart contracts efficiently, performing token creation and native transactions, and
supporting smart contract development in Solidity language.
· Compatible with Ethereum EVM
Helping developers quickly transplant Ethereum DApp to the SCF ecosystem.
· Generating APoS consensus for blocks
Processing APoS consensus of the main block of the public chain for transaction verification and
validation.
· Assets cross-chain off atomic swap chains
Helping users quickly transfer assets from various chains to SCF Chain.

2.3 Fin-Chain features

Originated from and standing for finance, the Fin-Chain is designed for the massive traditional
financial institutions to rapidly transplant their applications onto the chain. The functions and
features of Fin-Chain are:

· LN-based parallel cross-chain

Unlike assets cross-chain off the atomic swap chain of the Main-Chain, the Fin-Chain enables
efficient interaction of data and assets between dual chains and Fin-Chain's parallel chains with
different consensus through the Lightning Dog underlying contract. While ensuring node stability,
the Fin-Chain provides more inter-chain connections to form the Lightning Network, with a
fantastic second-level cross-chain response efficiency. As a result, the projects among public
chains will be connected to creat a more robust inner-loop symbiosis. (Privacy chain data can
only be accessed by the nodes and approved addresses that constitute a privacy channel)

· Zero-Knowledge Proof based privacy transactions

Both SCF chains support "Zero-Knowledge Proof" technology, which enables several cutting-
edge and critical applications such as off-chain scaling, transaction privacy protection, anti-
complicity, and on-chain compression. This technology will be discussed in later sections.

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· Modularized deployment for one-click chain issuance
Third-party developers can build their own parallel chains (PBFT, PoW, PoS, APoS) and choose
different consensus mechanisms with supporting facilities, including block browsers, wallets, etc.
This modularized deployment technology significantly reduces the development costs for
enterprises to build complex DApp services and their public chains.

· Complex smart contract development in common languages

It supports smart contract development in Java, GO, and other mainstream languages, which is
the friendliest access to non-blockchain developers in the finance and Internet sectors.

The APoS of SCF CHAIN refers to Asset Proof of Stake. The APoS consensus mechanism inherits
and develops the existing PoS, which follows the decentralized path of PoW consensus and is
more eco-friendly and energy efficient. Meanwhile, its economic model that integrates PoS and
DPoS also avoids the drawbacks of its over-centralization.

SCF's dual-chain architecture provides the optimal solution for the impossible triangle in finance.
Processing of simple and complex contracts with different chains reduces the computational load
of the whole chain and facilitates resource isolation. The eco-projects on the Fin-Chain can
increase their TPS based on their own hardware clusters without any limit, thus enabling the
performance to skyrocket.

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3. Performance and Demand Assessment
The performance of public chains is usually measured based on TPS (Transactions Per Second).
The Main-Chain has an average TPS of over 7500+ and the Fin-Chain over 80000+ based on
hardware performance, which can better meet the extreme concurrent demand of super large-
scale financial applications than other public chains.

Currently, the TPS values (in thousands) provided by various public chains in the market are
theoretical peaks under ideal conditions for the sake of differentiated competition with ETH. Once
the nodes are deployed on a large scale, the real average TPS will decay tens or hundreds of
times due to multi-node network differences, code optimization, cross-border firewalls, and
complex applications.

The most scientific approach for public chain performance assessment is to calculate the Swap
contract interaction consumption of Gas with the formula:

Solana is rather unique in that there is no Gas Limit and exceeding the TPS limit brings problems
such as block blocking, synchronization delays, and transaction failures. However, we can observe
the upper limit it may reach by looking at historical data on the browser.

This formula is a relatively fair calculation recognized by the public, as each chain has different
transaction components, and the differences would be enormous by just calculating common
transactions.

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From the above chart, we can see that among the main chain of each public chain, SCF has the
highest TPS limit of 7521, followed by Avalanche at 4543 and SOL at 2973. Among the EVM-
compatible chains, the highest is Coin BSC at 194 and ETH at 18. The main chain TPS of SCF is
417 times that of Ethereum.

Each chain has suffered performance problems, and the SCF dual chain addresses the following
issues fundamentally:

Ethereum: Since its inception, Ethereum has experienced several rounds of sustained massive
block congestion events every year. In April 2021, Ethereum's single transaction fee at Uniswap
was up to $100, and its synchronous latency grew tens of times, failing to carry demanding
financial services.

Solana: It has limited the flow of requests during peak periods and experienced several downtime
disasters that brought down the entire Sol blockchain. Though data flow control technology was
introduced, and the Gas model improved later, the effect was evaluated by experts to be limited.

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Avalanche: A cross-chain function error was triggered by a high DEX Pangolin load, which caused
some short-term panic in the community.

BSC/Polygon: There was congestion in Q2 2021 due to a burst of on-chain activity, which was
followed by a spike in Gas fees.

Measured in terms of usage: Assume X is the number of transactions per day and the required
TPS is T.

According to the Pareto Principle (80/20 Rule): 80% of X transactions need to be completed in
20% of the time, and T1 needs to meet the peak requirement. These yields:
T1 ! X * 80％/（24h * 20％）* 3600）! X / 21600

Given a stable network and user demand growth, we can further consider an average user
distribution to derive an average TPS demand.
T2 ! X /（24h * 3600）! X / 86400

Actual TPS required for the average daily transaction of a public chain: See the following table
Total average
Development stage T1 demand（TPS） T2 demand（TPS）
daily transaction X

Starting

Development

Surging

Maturity

Monopoly

The above table shows that a TPS of about 7000 enables the processing of 150 million
transactions per day.

The Main-Chain can process an average of 150 million transactions per day for applications of
native governance tokens and their contractual interactions.

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Depending on its hardware deployment, a Fin-Chain eco-project can handle a data volume
exceeding that of a VISA credit card, with an average of 1.5-2 billion transactions per day.

SCF will become the only super financial public chain on the market that can meet the needs of
traditional financial giants to integrate into the ecosystem.

4. Consensus Mechanism
4.1 Main-Chain consensus
The high energy consumption of PoW is gaining prominence in the context of global carbon
neutrality, constraining to a certain extent the widespread adoption of blockchain networks
worldwide. After evaluating various aspects such as security, performance, energy efficiency, and
user-friendliness, the Main-Chain decided to adopt APoS consensus.

Let's take a quick look at the PoS consensus. Unlike PoW, which requires tremendous power
consumption to solve a mathematical puzzle, PoS is a pledge-based algorithm where the pledge
is the keyword. To simulate the process of the equity-based validator (in PoS, we prefer the term
validator rather than miner) selection, we adopted the algorithm which follows Satoshi Nakamoto
(FTS) in many PoS-based blockchain networks (e.g., Cardano, Dash, etc.).

The probability Pi of selecting node i as a validator in a network with N participants is:

Si represents the share (Token holding share) of participant i. This means that the more shares a
node holds, the higher the chance for it to be selected as a validator, The verifier receives tokens
as a reward.
Now let's move on to the improved APoS, Asset Proof of Stake. The APoS consensus mechanism
inherits and develops the existing PoS, which follows the decentralized path of PoW consensus

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but is more eco-friendly and energy efficient. Meanwhile, its economic model that integrates PoS
and DPoS also avoids the drawbacks of its over-centralization.

APoS can better optimize and present a peer-to-peer electronic cash system based on the cross-
chain gateway, outperforming all other public chains in terms of payments. You can settle your
transactions in the Main-Chain with multiple cryptocurrencies, as the Main-Chain introduces a
cross-chain relay to the consensus layer. Communication and consensus are performed through
the Hot Stuff protocol, which dramatically speeds up communication and consensus on a secured
basis.

In theory, the Main-Chain enables nodes with any digital assets to participate in the main chain
consensus and any public chain Token to participate in the stake pledge to get the SCF incentive
of blocks generated by the main network, including SCF's governance token SCF, making it the
most user-friendly consensus participation mechanism.

4.2 APoS consensus operation mechanism

In the below diagram, each actor can subscribe to support their preferred super node candidate,
who is then elected as a validator, and Validator 100 will be selected in a network-wide election.

SCF

Validator No.x
Candidate 1 Candidate N

Re!election Re!election

Elected

Validator No.Y Validator 100

Candidate 3 Candidate 4

SCF
Candidate 2

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Anyone with suitable blockchain resources (hardware, servers, bandwidth) and sufficient crypto
assets can apply to be a super node candidate by running for election. A total of 100 super nodes
are set across the network. The APoS consensus mechanism selects the 100 super nodes as
Block Validators and then elects a super node as a validator by a Zero-Knowledge Proof random
algorithm. Afterward, if the chosen validator does evil or the hardware goes offline, a
corresponding slashing (penalty) will be triggered. A new super node will be elected as a renewed
validator when the penalty reaches a threshold. A super node that does grave evil will be
disqualified as a node. The verifier employs an algorithm of discrete loop mechanism to
sequentially generate blocks and obtain SCF rewards, which are then distributed to each super
node by a built-in smart contract.

4.3 Fin-Chain consensus

Designed for scalability and compatibility, Fin-Chain revolutionarily allows project owners to freely
choose different consensus mechanisms by customizing their public chains to match their
business needs.

The first four types of consensus mechanisms supported and under development are PBFT, APoS,
PoS,and PoW.

PBFT APoS

PoW PoS

In this section, we will focus on the Practical Byzantine fault tolerance (PBFT) consensus. The
Fin-Chain's PBFT takes IBM's Hyperledger Fabric as the blueprint for development and employs
the "endorsement -> ordering -> verification" approach for consensus.

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Traditional distributed consistency algorithms generally address consensus issues by negotiation,
which provides (n-1)/3 fault tolerance for a network with n nodes while ensuring liveness and
safety. Byzantine nodes can be considered as nodes that adversaries attack and reducing the
creation of Byzantine nodes entails making it more difficult for adversaries to attack. For this
reason, we can either increase the number of nodes or randomize the nodes that generate blocks.

The Fin-Chain is a parallel chain platform that allows multiple parties to participate, develop,
deploy, and operate blockchain applications. The Fin-Chain adopts Hyperledger Fabric to create
a modularized and scalable blockchain development framework, providing solutions for developing
enterprise-level blockchain applications. The Hyperledger Fabric blockchain system comprises
the following main components:

Chaincode: A smart contract in Hyperledger Fabric that anchors complex business logic in the
Fabric system in the form of code. A chain code is executed when certain conditions are met.

Client: An access point between users and the Hyperledger Fabric network, on which a proprietary
SDK is deployed. Users can initiate a transaction request, i.e., ProPoSal, using the client.

Endorser: In Hyperledger Fabric, when a client wants to initiate a transaction, it first needs to get
a certain number of endorsements for the transaction. These endorsements come from the
endorser. The endorser executes a simulated transaction by running the chain code, generates a
read-write set, and then endorses the transaction (signing the read-write set and attaching its
identity) to prove that the endorser has processed the transaction.

Orderer: Hyperledger Fabric provides ordering services through multiple orderers. The ordering
service receives all transactions from across the network and packages them into blocks in
chronological order. The ordering service does not involve in the execution and validation of
transactions and therefore pays no attention to the specifics of the transactions. The goal of the
ordering service is to agree on the order in which the transactions are generated and to broadcast
the result.
Committer: A main body that maintains the ledger in the Hyperledger Fabric network. The
committer receives the blocks packed by the ordering service, verifies the validity of the
transactions in the blocks, and commits the valid transactions to the ledger accordingly. In
addition, the endorser also belongs to the submitter, and endorsement is an additional function

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of the endorser on top of ledger maintenance.

Client
The client generates a proposal
and sends it to the endorser

Endorser Endorser
Endorse the proposal Endorse the proposal
and return the result to the client and return the result to the client

Client
The client generates a proposal
and sends it to the endorser

Orderer
Sort of nodes

Committer
Order the transaction to generate
blocks and submit them

Validate the block and write it to the ledger

The Fin-Chain also supports the classical Proof of Work (PoW) method of randomly selecting
block generators. "Mining" involves each node constantly trying to solve a mathematical puzzle
that is difficult to solve but easy to verify. The node that solves the puzzle fastest gets the right
to publish the following block (bookkeeping right) and a reward from the system. The randomness
of PoW relies on the even distribution of hash function values. Yet a large amount of hash
computation is accompanied by massive energy consumption, and the problem to be solved by
such consumption is meaningless. Meanwhile, with the emergence and development of "mining
machines," the computation is gradually monopolized by some large mining pools, posing a threat
to system security. In addition, PoW consensus is less efficient, and its long block generation and
transaction confirmation times make it challenging to meet realistic demands.

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Although Proof of Stake (PoS) also selects block generators via "mining," the probability of
successful "mining" relates to the node's equity. The greater the equity held by a node, the higher
the probability of successful "mining." These speeds up the block generation rate and improves
consensus efficiency. At the same time, as the amount of computation is no longer a major factor
influencing "mining" in PoS resource wastage due to the reduction of heavy computation.

Notably, based on PoS, the Delegated Proof of Stake (DPoS) achieves higher consensus efficiency
by sacrificing certain "decentralization" features. Each node can vote for a representative with its
equity. The top N users with the most votes will constitute the consensus participation
"committee" where each member takes turns to package transactions and generate blocks.
Thanks to the reduced number of participating consensus nodes, DPoS offers high transaction
speed. However, the proxy nodes created by DPoS in the decentralization process make the
adversary's attack target more specific-clearer and reduce the cost of the adversary's attack;
therefore Fin-Chain has no plans to support it for the time being.

5. Zero-Knowledge Proof
Zero-Knowledge Proof is one of the Layer2 scaling schemes supported by both SCF chains and
is an optional module when building parallel chains through the Fin-Chain.

A Zero-Knowledge Proof is defined as the ability of a prover to convince a verifier that an

assertion is correct without providing any helpful information to the verifier. As an iterative fruit
of cryptography, the application scenarios of Zero-Knowledge Proofs include but are not limited
to:

· Collusion and evil resistance

· Decentralized storage
· Off-chain scaling - improving transaction throughput
· On-chain compression - dramatically reducing on-chain data and block size to improve
verification efficiency
· Full protection of user data privacy (e.g., mixed-currency applications, where the actual
transaction address is unknowable)

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By deepening the applications above, SCF's system will be more secure and robust, with proper
isolation of user privacy. Sustained development can even revolutionize how data is shared and
blockchain works. The modern Zero-Knowledge Proof system originated from the paper "The
Knowledge Complexity of Interactive Proof Systems," co-authored by Goldwasser, Micali and
Rackoff, which was modified by crypto pioneers and SCF. The non-interactive system born on
this basis features completeness, making it the perfect option for the Zero-Knowledge Proof
system.

To facilitate understanding of this important technique, let's take a classic example of Zero-
Knowledge Proofs:

5.1 Interactive Zero-Knowledge Proof (A game for color-blind people)

Suppose Ada is color blind and Ted is not. Ted has two balls of absolutely the same size and
shape in his hands, but one is green and the other is yellow. He is required to prove to Ada that
the two balls are of different colors. In this classic case, Ada is the verifier, who needs to verify
whether Ted's statement is correct or not, and Ted is the prover, who needs to prove to Ada the
fact that the two balls are not of the same color if Ada cannot identify the color. This is a common
explanation of the Zero-Knowledge Proof.

The process is as follows:

Ada picks up the two balls in front of Ted, with the green one in her left hand and the yellow one
in her right hand, and then puts her hands behind her back so that Ted cannot see the balls. Ada
randomly exchanges the balls in her left and right hands behind her back. After the exchange,
Ada extends her hand and asks Ted if the two balls have exchanged positions. If Ted is able to
identify the color of the balls, then he will be able to answer Ada's question correctly each time
she changes the position of the balls.

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 Left

Ada Ted
For the first time, Ada secretly exchanges the position of the balls in her hands, then asks Ted if
she has exchanged the position of the balls. If Ted's answer is Yes, then Ada has a 50% probability
of believing that Ted can distinguish the colors of the two balls, because Ted has a 1/2 probability
of making a correct guess. Ada can therefore test Ted a second time. If Ted's answer is No, then
Ada is sure that Ted cannot distinguish the colors of the two balls.

For the second time, Ada does not exchange the position of the balls in her hand, and then asks
Ted if she has exchanged the position of the balls. If Ted's answer is No, then Ada has a 75%
probability of believing that Ted can distinguish between the colors of the two balls.

The following is the probability tree for the above case:

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After the first iteration, the probability that Ada can assert that Ted's statement is true is 50%. If
Ted gives the correct answer the second time, then the probability goes to 75%, and after the
third iteration, it will be 87.5%. If Ted passes the tests n times in a row, then Ada has a probability
of 1 - (1/2) ^n to believe that Ted's statement is true.

A Zero-Knowledge Proof is a probability-based verification method in which the verifier asks the
prover questions with some randomness. The prover has a high probability of possessing the
"knowledge" he claims if he can provide correct answers. A Zero-Knowledge Proof is not a proof
in the mathematical sense, because it involves a small probability of error, that is, an evil-doing
prover may deceive the verifier by making a false claim. In other words, a Zero-Knowledge Proof
is a probabilistic proof rather than a deterministic one. However, technology can reduce the error
to a negligible value.

According to the definition of Zero-Knowledge Proof, we can learn that it has the following three
important properties:

1） Completeness: If the prover possesses the relevant knowledge, then he can pass the verifier's
verification, that is, the prover has a large enough probability to convince the verifier.
2） Soundness: If the prover does not possess the relevant knowledge, then he cannot pass the
verifier's verification, that is, the probability that the prover deceives the verifier is negligible.
3） Zero-Knowledge: The prover reveals only to the verifier whether or not he possesses the
relevant knowledge during the interaction, without revealing any additional information about
the knowledge.

In this example, if Ted does possess the knowledge to distinguish the color of the balls, then he
will answer correctly every time, which is considered as completeness. If Ted does not possess
the relevant knowledge to distinguish the colors of the balls, then he cannot tell whether Ada has
exchanged the balls or not. This is referred to as soundness. In this protocol, Ada cannot see the
color of the balls, which is Zero-Knowledge.

Non-Interactive Zero-Knowledge Proof — Sudoku

Interactive Zero-Knowledge Proof protocols rely on random attempts by the verifier and require
multiple interactions between the prover and verifier to complete. Non-Interactive Zero-
Knowledge (NIZK) Proof reduces the number of interactions to one, enabling offline proofs and

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public verifications. In SCF's Zero-Knowledge Proof application scenarios, the non-interactive
nature is necessary because in a blockchain system, it cannot be assumed that both parties are
always online and interacting. On a SCF chain, the prover simply broadcasts a proof transaction
to the entire network, and miners on the network help the prover verify the Zero-Knowledge Proof
when they pack this transaction into the block.

We can understand the super-efficient non-interactive proof of SCF by a Sudoku case:

Sudoku is a numerical logic reasoning game that originated in Switzerland in the 18th century, in
which calculations are performed using both pencil and paper. Players need to deduce the
numbers of all remaining spaces according to the known numbers on the 9×9 disk and satisfy the
requirements that the numbers in each row, each column, and each thick-line palace (3*3) contain
1-9 without repetition.

To prove to Ada that he has solved a Sudoku puzzle, Ted creates a tamper-proof machine into
which he puts the generated Sudoku answers, and the machine can send the proof to Ada.

The machine follows the following publicly verifiable protocol:

Firstly, the original Sudoku puzzle that has not yet been solved is entered into the machine with
three puzzle cards facing up. For example, cell C3 has three face-up cards of number 9.
Next, Ted places his answers face down on the corresponding cell, again with three cards per
cell.

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Finally, Ada obtains a proof from the machine, which returns three categories of 27 bags to Ada:
· Category I The machine takes out 9 cards from each row of the Sudoku, mixes them up
separately and puts them into one bag, making a total of 9 rows and 9 bags.
· Category II The machine takes out 9 cards from each column of the Sudoku, mixes them up
separately and puts them into one bag, making a total of 9 columns and 9 bags.
· Category III The machine takes out 9 cards from each thick-line palace (3*3) of the Sudoku,
mixes them up separately and puts them into one bag, making a total of 9 thick-line palaces and
9 bags.

Ada then checks each of these 27 bags. If the cards in each bag contain the numbers 1 through
9 without missing or repeated numbers, then Ada can confirm that Ted has indeed solved the
Sudoku. Besides, Ada does not gain any knowledge of the Sudoku solution from the proof returned
by the machine, because the numbers in the bags returned by the machine were randomly
scrambled.

5.2 Recursive Zero-Knowledge Proof

SCF supports a more efficient recursive Zero-Knowledge Proof generation: It takes the proof of
the previous state and the current transaction as input, and then verifies whether the proof of the
previous state and the current transaction are valid. If all the proofs are verified, the program
outputs a new state and a proof, as shown in the following diagram:

- 23 -
The state of the entire chain can be verified by simply verifying the proof of the previous state,
i.e., recursive Zero-Knowledge Proof verification. For example, when Proof #5 is verified to be
correct, it is equivalent to recursively verifying Proof #4 and Proof #3.

6. Compatibility with Ethereum's EVM

(Additional Features of the Main-Chain)

SCF is compatible with the Ethereum Virtual Machine (EVM) through eBridge, which enables more
than 4,000 active Ethereum developers to quickly transplant DApps to the SCF public chain every
month. EVM is a dominant standard for smart contract execution. EVM compatibility will
significantly facilitate cross-chain liquidity and optimized migration of financial projects.

Ethereum Virtual machine（EVM） Virtual ROM

EVM Code
Machine state（volatile）

（immutable）
Program counter（PC）
Program counter (PC) （Account）
Stack Memory Storage
Stack Memory
Gas available
Gas available
World state（Persistent）

EVM operates like a stack machine that pushes a transient to and from the push-down stack,
with a depth of 1024 items, each of which is a 256-bit word. It also maintains a temporary memory
in the form of an array of bytes that changes between two transactions on the Ethereum
blockchain. Compiled smart contract code is executed by the EVM as a collection of 140 standard
opcodes, and other blockchain-specific stack operations are also implemented by EVM.

- 24 -
7. Atomic Swap Asset Cross-Chain
(Additional Features of the Main-Chain)

SCF supports digital asset interaction with other public chains through "atomic swaps", which is
a peer-to-peer (P2P) transaction system using different blockchains to allow full release of asset
liquidity and further enhance user experience.

7.1 How atomic swaps work

Atomic swap protocols are designed to prevent fraud between counterparties. To better
understand how they work, let's assume that Ada wants to exchange her SCFs with Ted's Bitcoins
(BTCs).

At first, Ada deposits her SCFs into a contract address, which is similar to a safe deposit box.
With the security created in this way, Ada generates a key to access it. She then shares the
encrypted hash of this key with Ted. Note that Ted does not have access to Ada's SCFs at this
point, because he only has the hash of the key, not the key itself.

Next, Ted uses the hash provided by Ada to create another secure contract address to deposit
his BTCs. If Ada wants to swap for BTCs, she needs to use the same key as that address, and at
the same time, she needs to present the SCF key to Ted (with the help of a special feature of
hashlock). This means that once Ada makes a request to swap for BTCs, Ted gets access to the
SCFs of Ada at the same time, and the transaction process of that atomic swap is completed.

!"#$%%
&% (%
!"#$%%
! !
Ade initiates the transaction and SCF
is locked in the contract (Hash lock)
! !
Ted responds to the transaction and
the BTCs are locked in the contract
(Hash lock)

'!
!"#$%% )!
!"#$%%
!
Ted verifies the authenticity of the
transaction initiated by Ada through the
!
If the transaction is verified, both parties
complete the transaction; or if it is not
smart contract verified, the transaction is canceled and
(Contract verification to unlock the key) unlocked automatically.

- 25 -
The term "atomic" represents the consistency of a transaction, i.e., it is either completely
successful or completely unsuccessful. If either party abandons or fails to perform as expected a
transaction, the contract is canceled, and the funds are automatically returned to their original
owner.

Atomic swaps can be performed either on-chain or off-chain. On-chain atomic swaps take place
in the online network of the blockchain for any cryptocurrency.

Off-chain atomic swaps, on the other hand, take place off-chain. This type of atomic swap is
usually based on a two-way payment channel, similar to the channel payments used in Lightning
Networks.

Technically, most decentralized transaction systems are done based on multiple signatures and
Hash TimeLock Contract (HTLC).

7.2 Hash TimeLock Contract (HTLC)

Hash TimeLock Contract (HTLC) is one of the key components of atomic swaps. As the name
implies, it is based on the two key functions of hashlock and timelock.

Hashlock freezes the funds if the associated key data (Ada's key in the above case) is not
presented, and timelock ensures that smart contracts are executed only within a predefined time
frame. Consequently, the use of an HTLC eliminates the need for centralization by creating
specific rules, which prevent atomic swaps from being partially executed.

The biggest advantage of atomic swaps comes with decentralization. Atomic swaps eliminate the
need for centralized swaps and any other type of intermediaries, as cross-chain swaps can be
executed between two or more parties without them trusting each other. The level of security is
also substantially improved as users are not required to make funds available to centralized
exchanges or third parties. Transactions can be initiated directly through the user's personal
wallets.

In addition, peer-to-peer transactions allow very low transaction fees and faster transactions. As
a result, a higher level of interoperability is achieved.

- 26 -
8. Modularized Parallel Chain
(Additional Features of the Fin-Chain)

Fin-Chain will be the first in the industry to realize the function of modularized configuration for
one-click chain issuance. A vast number of traditional financial enterprises can easily configure
parallel chains that match the features of their own business clusters for more complex and large-
scale financial services than conventional DApps. Meanwhile, they can develop their own parallel
chain ecosystem, and reduce the development cost by tens or even hundreds of times.

Comparison Targeted Rapid application L2 sub-chain New public chain

items developers development development development

Other public chain DApp

Coin circle
eco-developers Higher technical Massive technical
and time costs required and time costs required
On a 1-3-year basis On a 3-6-year basis
Main-Chain Coin circle DApp
Eco-developers

Finance circle Modularized configuration of parallel chains

Fin-Chain Parallel chains
Internet circle Hundred times lower technical and time costs
Eco-developers DApp
Coin circle On a weekly or even daily basis

Fin-Chain has a highly modularized and configurable architecture (infinitely scalable parallel
channels) and offers versatile innovation and optimization for industry cases such as banking,
finance, insurance, healthcare, metaverse, HR, supply chain, and even digital music delivery. The
CAs, databases, and consensus algorithms in the Fin-Chain are pluggable, and the chain code is
implemented via Docker.

Through the unique parallel chain architecture, it solves the problem that blockchain cannot meet
scalability, security and decentralization requirements at the same time. The system provides a
complete set of solutions to help business users who want a public chain of their own to build an
exclusive application chain.

In the future, developers can deploy an application chain in a few minutes by simply entering such
parameters as the number of application chain nodes, margin, and consensus mechanism required
for an application chain from their cell phones. Afterwards, they can monitor the blocks generated
and the operation status of the new chain by registering the contract address, port and other

- 27 -
information of the application chain on the block browser.

Optional consensus modules supported by parallel chains are PBFT, APoS, PoS, and PoW.
Typical configurations of parallel chains:

Created with configin.yaml file and configingen tool.

Usage of configingen: -chainCreateTxBaseProfile string
Config file specifying the underlying transaction, needs to be used along with
'outputCreateChainTx' -chainID string
Chain name (cannot be repeated) -configPath string
Config file path -inspectBlock string
Block storage path -inspectChainCreateTx string
Blockchain transaction storage path -outputCreateChainTx string -outputCreateChainTx string
Path written when the blockchain creates configin -version
Version information

9. Common Programming Contract Development

(Additional Features of the Fin-Chain)

Fin-Chain's parallel-chain virtual machine (FVM) is Turing-complete, so it can run any program
written in any programming language. This allows non-blockchain developers to easily create
custom smart contracts and DApp for the emerging Web 3.0 industry. FVM supports smart
contracts created in major programming languages such as Java/Go/C++/JS.

Thanks to that, enterprises can cut down the costs of technical personnel such as Soldity/Rust,
and non-blockchain enterprises can also develop decentralized applications at low cost. Together
with the modularized parallel chain service, traditional enterprises can lower the cost of getting
on the chain to the lowest threshold.

- 28 -
10. SCF Governance and Incentives
SCF is the native token of SCF Chain, which is governed and incentivized based on SCF tokens.

10.1 SCF Insurance and Establishment

SCF Chain (SCF) has a total issue volume of 840 million, with an initial block reward of 10 SCFs
and halved block rewards every four years. Its core consensus mechanism APoS operates on
super nodes to ensure a smooth global launch of the SCF public chain in June 2023. SCF public
chain super node has been opened for global election at 00:00 PST (Pacific Standard Time) on
February 26, 2023.

10.2 Linear release

SCF Chain super node mining rewards adopt the rule of linear release. Suppose there is a total
mining reward of 10 SCFs to be released evenly over 180 days, then the amount to be unlocked
per day is:

10 SCFs ÷ 180 days = 0.0556 SCF/day

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Therefore, 0.0556 SCF will be unlocked per day, as shown in the following unlocking table:

Day Number of SCFs available

Day 1 0.0556 SCF

Day 2 0.1111 SCF

Day 3 0.1667 SCF

Day 4 0.2222 SCF

Day 5 0.2778 SCF

Day 6 0.3333 SCF

... ...

Day 175 9.7222 SCF

Day 176 9.7778 SCF

Day 177 9.8333 SCF

Day 178 9.8889 SCF

Day 179 9.9444 SCF

Day 180 10 SCF

10.3 SCF consumption and deflation

As mentioned above, SCF is mainly generated by APoS mining and is used and consumed in the
following scenarios:

1) Consumed as Gas for SCF Chain public chain.

2) Circulated across chains as Eco Passes.
3) Used as the native assets of the underlying infrastructure.

11. SCF Financial Infrastructure

SCF is a financial public chain which comes with basic services and infrastructure supporting the
modern financial system and future-oriented finance. These infrastructures are built on top of
SCF's core technology and are offered as protocol and service layers for use by the SCF
ecosystem.

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11.1 FinSwap Cross-chain asset trading
The crypto industry has entered the cross-chain era. With the proliferation of public chains and
aggregation layers in the Web 3.0 world, many applications are built on different isolated
ecosystems. While some of these applications are deployed on multiple blockchains on trial, their
liquidity is inevitably fragmented. Once cross-chain transactions are involved, users will have to
transfer their assets via CEX or clumsy cross-chain bridges, with complicated operations, high
Gas fees, low privacy, and even more opportunities for hackers due to overly lengthy processes.

As a public chain specializing in crypto financial services, SCF, based on its own dual-chain
lightning interaction architecture and atomic swap service, will launch a demonstration-level
innovative application - FinSwap, a cross-chain swap, to address the industry challenge of
decentralized cross-chain liquidity.

FinSwap is a combinable all-chain liquidity aggregation protocol where asset cross-chain and
swap processes are fast and split-second to users. Moreover, the contracts for processing
transactions are executed on Fin-Chain with TPS up to 80,000+, enabling users to enjoy a
transaction experience close to CEX, which is unimaginable in traditional swaps.
Notably, FinSwap aggregates liquidity from all blockchains using the ALLIM messaging cross-
chain framework while allowing other DApps to access the depth to help them capture liquidity
from different blockchains. As a result, users can benefit from the deepest liquidity, achieving
optimal exchange rates and minimal slippage swaps with the least cost.

On a market-making algorithm basis, FinSwap will be the only cross-chain swap where LPs can
finely control the price range of their capital allocation using the third-generation AMM automatic
market maker mechanism, thereby further improving capital efficiency and reducing slippage while
preventing any asset flash drops.

Economist Robin Hanson first referred to the AMM algorithm in 2002 in his research on digital
market scoring rules. In 2016, Uniswap introduced automatic market makers to the crypto space
in an efficient way when they proposed the Constant Product Market Maker (CPMM) model to
ensure constant token trading in Ethereum with liquidity, with the following formula:

- 31 -
where Rx and Ry are the reserves of each type of token, f is the transaction fee, and k is a
constant. The simplified formula is as follows:

where x is Token1, y is Token 2, and k is a constant.

In essence, AMM combines two assets that are being traded into a liquidity pool, aiming to ensure
that the asset size of the liquidity pool remains constant regardless of the size of the transaction.

A paradigm shifts of AMM, the CPMM model is a decentralized mechanism that removes the
middleman completely while enabling a combination of liquidity, fast trading, and on-chain
mechanisms to quote at the right price. However, it also suffers from obvious flaws such as
slippage, impermanent losses, and security risks.

Around 2020, a new generation of AMMs began to grow rapidly, and the CPMM model gradually
merged with the CSMM model to create the hybrid CPMM. This formula makes exponentially
dense liquidity. Most of this curve belongs to the linear exchange rate:

where x is the reserve of each asset, n is the quantity of the asset, D is the invariant (the total
value in reserve), and A is the amplification factor (similar to "leverage",” which represents the
degree of curve curvature).

Next, FinSwap will bring the swap algorithm to a higher level with more sophisticated solutions.
We will introduce centralized liquidity, multiple fee tiers based on the second-generation AMM,
and access to an active market-making mechanism and a Pyth prediction machine. The second-
generation AMM will eliminate the dependence of the liquidity pool on arbitrageurs to keep prices
accurate and significantly reduce the risk of unpredictable losses.

In the future, FinSwap will allow liquidity to be priced into fixed positions, taking centralized
liquidity a step further and allowing DEX to operate close to the smooth experience of CEX.

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11.2 Decentralized proof of credit
Credit lies at the core of the financial industry, and the establishment and expansion of credit
require a reliable mechanism to ensure its authenticity and credibility. As a financial public chain,
SCF public chain provides a basic design for decentralized credit expansion in the financial
industry through blockchain technology, smart contracts and other technical means, realizing
highly secured and credible sharing management of credit information, thus providing customers
with more high-quality, efficient and convenient financial services.

The credit information of off-chain customers can be put on the SCF Chain through Zero-
Knowledge Proof in the following steps:

1） An off-chain customer requests the credit institution to generate the proof of credit: The
customer provides the credit institution with data such as his personal information and credit
history and requests the credit institution to generate the corresponding proof of credit.
2） The credit institution generates the proof of credit: The credit institution signs the data
provided by the customer with its own private key and generates a digital certificate as an
identification of the customer's proof of credit. Meanwhile, the credit institution uploads the
digital certificate to the chain and stores it in the specified smart contract.
3） The customer generates a Zero-Knowledge Proof: The customer uses the Zero-Knowledge
Proof technology to generate a Zero-Knowledge Proof based on his personal information and
credit history. The proof does not contain any specific personal information, but only the proof
of a corresponding digital certificate owned by the customer.
4） The customer uploads the Zero-Knowledge Proof: The customer uploads the Zero-Knowledge
Proof generated by himself to the chain with his own digital certificate identification.
5） The on-chain smart contract verifies the proof: Upon receiving the digital certificate and
Zero-Knowledge Proof from customers, the on-chain smart contract first verifies the validity
of the digital certificate then checks the customer's credit information through the Zero-
Knowledge Proof, and finally confirms whether the customer's proof of credit is valid.

SCF decentralized proof of credit verifies a customer's credit using the interactive Zero-
Knowledge Proof method in SCF Chain, which is accomplished by the following process:

- 33 -
· The customer stores his credit information in a local device and encrypts the information to
generate an encrypted hash.
· The customer generates a set of random numbers and encrypts them with an encryption
algorithm to generate an encrypted random number.
· The customer generates a non-interactive Zero-Knowledge Proof using the encrypted random
number and the encrypted hash of the credit information.
· The customer sends the Zero-Knowledge Proof to SCF Chain's smart contract, which verifies
the correctness of the proof and stores the encrypted hash on the chain if the verification is
successful.

In the above scheme, the non-interactive Zero-Knowledge process:

Assuming that the customer wants to prove that he knows the hash H of his credit information
without revealing the information itself, the proof process is as follows:

· The customer generates a set of random numbers r and encrypts it with an encryption algorithm
to generate an encrypted random number R.
· The customer generates two values: s1 = H ^ r and s2 = r, where ^ denotes the XOR operation.
· The customer proves s1 and s2 using a Zero-Knowledge Proof system, without revealing the
values of H and r in the proof process.
· The customer sends the proof result to the chain and the contract verifies the correctness of
the proof and stores H on the chain if the verification is successful.

In the above scheme, the customer uses the Zero-Knowledge Proof system to prove that he
knows the values of H and r, while not revealing the specific values of H and r. This ensures that
the customer's privacy is not compromised and proves that the customer does know the hash of
the credit information.

All the above credit institutions must be nodes of SCF Chain and satisfy the following
conditions:
1) Node reward mechanism: Each time a node successfully generates a proof of credit and
uploads it to the chain, the node can receive a certain amount of SCFs as a reward. The
number of rewards can be dynamically adjusted according to the credit rating of the node
and the complexity of the proof of credit to secure a reasonable reward for the node's
motivation and contribution.

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2) Punishment mechanism: If the proof of credit generated by a node is found to be falsified,
the node will be punished accordingly. Specifically, if a node is found to be falsified, it will
lose all the rewards obtained previously, and a certain credit rating score will be deducted. At
the same time, the node will also be removed from the node list and will no longer be allowed
to generate proofs of credit.
3) Credit rating mechanism: The credit rating of a node can be calculated by various factors,
including but not limited to the number of proofs of credit generated by the node, and its
authenticity and complexity. The rating results serve as a reference for node reward and
punishment mechanisms to better adjust the behavior of nodes.

The node reward and punishment mechanisms enable credit institutions, as nodes, to guarantee
the authenticity and trustworthiness of proofs of credit and improve the trust and efficiency of
the whole system by constantly optimizing and adjusting the behavior of nodes through the credit
rating mechanism.

11.3 Financial soul-bound tokens (FinSBTs)

SBTs are non-transferable NFTs that describe a user's origin, education, salary, spending level,
credit status, etc. in a decentralized network. In short, it is "proof of who you are, what you have
done, what you have accomplished, your network of connections," and so on.

SBTs can be divided into many categories. One can have multiple SBTs in the blockchain world.
One of the key functions of SCF is to build financial SBTs for each SCF account, i.e., FinSBTs.
This function enables users to map their full financial identity in reality in the blockchain network
and establish a financial identity system for the users.

That means FinSBTs are carried natively by SCF addresses and are the underlying infrastructure
of the entire SCF Chain.
The detailed scheme of SCF Chain to build SBTs is as follows:

1) Defining the content of FinSBTs: FinSBTs contain users' basic personal information, education,
occupation, income, financial status, credit rating, etc. All the information needs to be
collected and verified through user authorization and institutional verification.
2) Determining the standards of SBTs: Based on the content of FinSBTs, we develop standards

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 including data formats, storage methods, and encryption algorithms.
3) Developing smart contracts: According to the standards of SBTs, we develop smart contracts
to enable FinSBTs information authorization by user’s and verification by institutions, as well
as the storage and update of FinSBTs information.
4) Collaborating with credit institutions and nodes: SCF Chain needs to collaborate with credit
institutions to obtain their data on users' credit ratings and add them to FinSBTs.
5) Implementing privacy protection: Since FinSBTs contain sensitive information of users, privacy
protection needs to be implemented. Technologies such as Zero-Knowledge Proof are used
to prevent users' data from being leaked.
6) Issuing SBTs: According to the content of FinSBTs, corresponding SBTs are issued. Each user
can have multiple SBTs, including financial identity, credit rating, etc.
7) Using SBTs: Users can use SBTs for financial activities such as trading, lending, and
investment on SCF Chain. In these activities, the users' FinSBT information can be used as
the basis for credit rating and identity verification to improve the security and efficiency of
transactions.
8) Updating SBTs: Users can update their FinSBT information such as career change, income
increase, etc. at any time. After the update, the corresponding SBTs will be updated
accordingly.

With the above schemes, SCF Chain can build a complete financial identity system to improve
the efficiency and security of financial activities. Meanwhile, SBTs can embody users' financial
identity and help them obtain more financial services and opportunities.

11.4 Native stablecoins (FinUSDs)

SCF issues a type of native stablecoin, which we call FinUSD, or FUSD for short. SCF manages,
issues, and destroys FUSDs and maintains the operation of FUSDs through a set of smart
contracts.

The issuance of FUSDs must be backed by sufficient collateral, and its specific minting and
issuance process is as follows:

1) Users obtain the corresponding FUSDs by pledging mainstream digital currencies such as
SCFs and BTCs on SCF Chain.

- 36 -
2) For FUSDs to be earned, the collateral needs to reach a certain value. The percentage is
controlled by SCF Chain's pledge rate combined with the credit rating of the user's SBTs.
3) When the users pay off their FUSD loan, they can get their collateral back.
4) The fluctuations in the price of the collateral may result in loan risks. If the value of the
collateral drops to a certain level, the system will force the closing of the position and sell the
collateral to cover the borrowing.
5) To ensure that the value of the collateral is sufficient to cover FUSD issuance, SCF Chain
regularly audits the value of the collateral and makes necessary adjustments based on market
fluctuations.

Users can get the following proceeds after pledging minted stablecoins:

1) Investment proceeds: The platform uses the collateral of stablecoins for investment, such as
buying bonds, stocks, digital assets, etc., and receives proceeds from the investment. Part of
the proceeds can be distributed to the stablecoin holders.
2) Loan proceeds: The platform can issue loans with stablecoin collateral and collect interest
from the borrower. Part of the interest can be used as proceeds for stablecoin holders.
3) Stablecoin transaction fee proceeds: The platform can charge a commission for stablecoin
transactions and allocate a portion of the commission as proceeds for stablecoin holders.
4) FinPAY payment proceeds: FinPAY settles payment settlements between traditional banking
systems and uses a portion of the fees as proceeds for stablecoin holders.
5) Collateral price fluctuation proceeds: Since the collateral of stablecoins contains a certain
percentage of cryptocurrency, fluctuations in collateral prices may have an impact on the
proceeds of stablecoins. If the collateral price rises, the platform may sell a portion of the
collateral for proceeds and distribute a portion of the proceeds to stablecoin holders. On the
contrary, if the collateral price falls, the platform may need to inject additional collateral to
maintain the value of stablecoins. However, this may also result in additional collateral
proceeds for stablecoin holders.

In a nutshell, the return of SCF FUSDs is expected to be between an annualized rate of 20% and
300%.

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12.SCF Ecological Applications

As an epoch-making financial public chain, SCF not only builds a solid dual-chain underlying
consensus but also develops an advanced demonstration platform at the application layer,
including five modules: Super Payment Gateway, Cross-chain Swap, AIGameFi, Defi, and NFT, of
which the latter three are integrated into In the FinSOUL platform.

12.1 FinPAY payment app

FinPAY is a SCF-based decentralized cross-domain and cross-chain payment gateway. At this
stage, it is mainly used for payment and settlement between the banking systems in collaboration
with SCF.

It can be regarded as a super-integrated protocol of SWIFT+PALPAY+VISA. We have reached a

preliminary cooperative partnership with Wall Street's Wells Fargo, HSBC, Citigroup, Goldman
Sachs, and other multinational banks. FinPay can realize low-cost and efficient transfers between
fiat currencies of various countries and public chain assets via a safe and anonymous process.

Fiat in all End C: online/offline Consumption in all the countries

API End B: International clearing in all. the countries

FinPAY Countries End B: International payment by all. the corporates worldwide

Payment Gateway All digital

Fin-Bridge Various Web 3 Projects in all chains
currencies
Cross-Chain bridge

AI GameFi AI-based co-creative GameFi

FinSOUL
SCF Meta-universe 2.0
DeFi Meta-universe creative market

Programmable NFT Planet epic NFT

FinSwap High frequency and Decentralized transactions

Fin-Bridge
Cross-Chain Swap of all public chains and all digital currencies
Cross-Chain bridge

Its application scenarios are revolutionary, such as:

1) Euros can be quickly converted into Ax tokens on Project A of the POLYGON public chain in
3 seconds.
2) The Bx tokens on the Ethereum public chain B project can be quickly converted into Indian
liras or Russian rubles.

- 38 -
3) A large sum of Japanese yen from a Japanese bank/enterprise can be quickly converted into
equivalent U.S. dollars or fiat currencies of other countries.
4) The governance tokens of the X public chain Y project can be used to purchase goods and
consumer services in stores, convenience stores, or online shopping malls in various countries.
5) All kinds of Defi projects on each public chain can receive any fiat currency and Token
supported by FINPAY to conduct business.

Let's take SWIFT as a comparative analysis. SWIFT (Society for Worldwide Interbank Financial
Telecommunications) was established in 1973 as a global interbank international partnership
organization. It is a global interbank international cooperation organization whose function is to
transmit financial information such as international clearing and payment among organization
members.

Although SWIFT has made progress regarding fee standards and fund transfer speed, it is still
non-free-of-charge, not real-time and digital currency non-transferable. These are precisely the
problems that FinPAY solves:

1）Low Cost of Operation of the System

FinPAY is a decentralized architecture with the core concepts of "consensus,” "sharing,”
"trustless," and "free.” SWIFT is a centralized organization with extremely high maintenance costs.
For example, salaries in the system, server clusters, and other equipment costs, trust
communication costs, resulting in its cross-currency, cross-border, cross-regional operating
expenses, and fee standards have always remained high. However, any currency in the FinPAY
system can be freely converted at close to zero cost, and there is no difference between different
places, cross-banks, and cross-border payments.
2）Lightening Transfer Speed
The transfer under the FinPAY system is as swift as sending an email in about 3 seconds, while
the SWIFT international remittance takes one to two days, a difference of thousands of times.
The FinPAY system is a phenomenal innovation for the financial industry where every second
counts.
3）Any Currency Flow
FinPAY is a super gateway for any conversion between digital and fiat currencies, while SWIFT
only applies to national fiat currencies of various countries. As long as an exchange rate is
available, any currency can be freely exchanged in the FinPAY system.

- 39 -
4）Support Anonymous Transactions
FinPAY offers an option for anonymous transactions, while SWIFT transactions must reveal the
identities of both parties. Optional anonymity is very important for WEB3.0 finance.
5）Free Access to API
The crypto industry projects, traditional banks, Internet companies or even an offline entity or
individual organization can all freely access FinPAY's API in compliance with the system’s rules
to enable the all-inclusive gateway service without any strict entry thresholds and lengthy vetting
processes. At the same time, the API will also implement security defense and appropriate
punishment for any malicious behavior based on smart contracts. It can identify malicious
merchants and isolate them accordingly to the black sandbox to ensure the integrative operation
of the system.

In addition, FinPAY also has application advantages over Ripple, which is the aging open
payment network, in several ways:

Items to compare Ripple FinPAY Illustration of the Comparison

7500+（Main-Chain） The super scale of 5 to 53 times

TPS 1500+
80000+（Fin-Chain） Concurrency performance gap

single simultaneous
5s-10s <3s
transaction A block synchronization time of less
International banks clearing than 1 second can be well applied to
All international transaction various payment scenarios and
business focus International banks clearing
Fiat payment in a small amount FinPAY have a more comprehensive
Digital currency in a small amount payment range of business applications

Interledger Protocol Lightning Dog FinPAY executes cross-chain

Cross-chain transactions Chain Lightning Parallel Cross-chain
agreement, in general transactions more effectively
Atomic swaps

The total issuance of XRP is 1 trillion

Degree of decentralization pieces The founding team Open, fair, scientific In Oct. 2020, SEC filed a lawsuit
and Branding credibility owns more than 200 million. Selling consensus output mechanism against Ripple till now
and cashing out are extremely serious

From the near collapse of the price of XRP on the Ripple network, we recognized that technology
is the foundation of innovation. Still, a fair system and the heart of not doing evil are the pillars
for the long-term development of the platform.

We can foresee that FinPAY will become the ultimate solution for cross-border and cross-chain
payments and the necessary infrastructure for human beings to move toward future financial
civilization.

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12.2 Cross-chain financial bills trading marketplace (FinBills)
Bills are marketable securities used for payment purposes. The traditional bank bill business is at
the heart of the modern financial system. In fact, in many countries, cash bills themselves can be
regarded as promissory bills accepted across banks.

The traditional financial bill business is divided into the following categories:

Types Description Difference

An instrument issued by the drawer, who entrusts the payer to pay a definite
Bill of exchange
amount to the payee or bearer unconditionally at sight or on a specified date.
Different people
An instrument issued by the drawer who promises to unconditionally pay a
Promissory note
definite amount to the payee or bearer at sight.
who see the bills
An instrument issued by the drawer, who entrusts the bank for check deposit
Cheque
to unconditionally pay a definite amount to the payee or bearer at sight.

According to different issuing units, Bill of exchange can be divided into two categories: Bank
draft and commercial draft：

Types Description Difference

An instrument issued by the issuing bank, which is unconditionally paid to the

Bank draft
payee or bearer at sight in accordance with the actual settlement amount.
Different issuers
An instrument issued by the drawer, who entrusts the payer to unconditionally
Commercial draft
pay a definite amount to the payee or bearer on a specified date.

FinBills, as the basic ecosystem of SCF public chain, will implement the above three financial bill
businesses in a decentralized way with the concept of WEB3.0.

FinBills will provide customers with the following services:

1) Issuing financial instrument NFTs: Financial institutions can issue various types of financial
instrument NFTs on SCF, such as commercial drafts, trade finance notes, etc. Each financial
instrument NFT has a unique identifier to ensure that it cannot be copied or tampered with.
2) Trading financial instrument NFTs: Financial institutions can put the issued financial

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 instrument NFTs into the market for trading. Users holding financial instrument NFTs can buy,
sell and pledge them through the trading market for proceeds.
3) Providing liquidity support: SCF can support the trading of financial instrument NFTs by
providing a liquidity pool. Users can pledge digital currencies such as SCFs, BTCs and ETHs
into the liquidity pool in exchange for the corresponding liquidity tokens. These liquidity tokens
can be used to trade financial instrument NFTs, while the corresponding digital currencies can
be redeemed at any time.
4) Enabling decentralization: SCF's financial bills marketplace adopts a decentralized design, i.e.,
financial institutions transact directly with users without the involvement of intermediaries.
This decentralized model can reduce transaction costs and increase the transparency and
security of transactions simultaneously.
5) Providing credit assessment service: SCF can provide credit assessment service for users by
using their data on the platform in combination with the FinSBTs infrastructure. It helps help
financial institutions better understand the credit status of borrowers and reduce the risk of
default.
6) Providing data query service: SCF can provide query service to help financial institutions query
users' credit data, borrowing records and other information to aid decision-making. Meanwhile,
users can also query their own data to protect their rights and interests.

12.3 Derivatives exchange (FinEX)

FinEX is the decentralized derivatives exchange of SCF. FinEX will provide a wide range of
derivatives for trading, including futures, options, CFDs, etc. Users' digital assets will be stored in
smart contracts to ensure security and transparency. Users can connect to FinEX through their
wallets and trade with their digital assets.

FinEX has the following features:

1) Margin trading: Users are required to deposit margin prior to trading to ensure smooth
transactions. The margin can be in digital currency or stablecoins, but the system recommends
FUSDs. FinEX will offer a variety of margin ratios for users to choose from in order to meet
different risk appetites.
2) Transaction match-making: FinEX will utilize a decentralized match-making mechanism to
ensure fair, transparent and efficient transactions. Transaction data will be stored on the
blockchain to ensure its tamper-evident nature.
3) Fee structure: The fee structure of FinEX will include transaction fees, platform usage fees，

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 and withdrawal fees. The exact rates will be based on the type and volume of transactions
and will be disclosed on the platform.
4) Risk management: FinEX will implement comprehensive risk management measures, including
limiting the maximum transaction amount for users and monitoring transaction risks in real-
time. At the same time, FinEX will provide risk insurance to ensure that users' digital assets
are protected.
5) User support: FinEX will provide 24/7 user support services to help users solve any problems
during trading. Meanwhile, FinEX will provide trading education and technical support to help
users better understand and use the platform.

FinEX adopts a hybrid transaction match-making mechanism that ensures both decentralization
and efficiency.

First of all, FinEX takes advantage of decentralized trading, where all transactions are executed
on the chain and users' assets are controlled by themselves with no centralized institutions
involved, thus ensuring security and trustworthiness.

At the same time, to improve transaction efficiency, FinEX also introduces a centralized liquidity
and multi-fee level transaction match-making mechanism based on the hybrid CPMM, which can
match counterparties faster and deliver high liquidity and low transaction fees. This hybrid
mechanism ensures both decentralization and efficiency of trading.

In addition, FinEX employs a number of other technological means to further improve the
efficiency and user experience of trading. For example, the Lightning Network is introduced for
faster trade confirmation and lower transaction fees.

12.4 WEB3.0 social platform (FinBox)

FinBox is a decentralized instant messaging and content social platform. It is the first WEB3.0
social platform supported by SCF public chain. FinBox can connect wallets, import and create
new wallet IDs and SCF SBTs in one click in the app, and join FinBox's social network.

Instant messaging: Users can log in with their wallet ID and chat with and send messages to
other users.
Social function: Users can create profiles, post statuses and pictures, and follow other users.

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Wallet connectivity: Users can connect their digital wallets in order to make transactions and
transfers on the platform.
SCF NFTs support: FinBox will support NFTs on the SCF public chain and allow users to buy,
trade and display their NFTs.

FinBox enables WEB3.0 decentralized networking through the following technologies:

1） Blockchain technology: Uses the SCF public chain to support FinBox's cryptocurrency
trading and NFT functionality.

2） IPFS: Uses IPFS as a protocol for file storage and transfer to ensure the security and
reliability of data in a distributed network.

3） Encryption technology: Uses encryption technology to secure user chat, transactions and
data storage.

12.2 FinSOUL Next Generation GameFi

FinSOUL is a titanic innovative masterpiece that combines co-creative AIGameFi, programmable

NFT, and Metaverse DeFi. It currently has no direct benchmarking products and can be understood
as a pioneer project of Metaverse 2.0.

2021 is called the first year of the metaverse, but in the view of the SCF team, the previous
projects were more hype and market value operations because the concept was ahead of the
technology. The core of most projects is still only traditional games, and some chain reform
projects are nothing more than a layer of WEB3.0 gimmicks, which are far from the ideal
Metaverse.

The SCF team will develop the soulful, attractive, valuable Metaverse 2.0 world FinSOUL based
on the double-chain gene.

FinSOUL is based on a programmable NFT planet with access to the ChatGPT core. Each player
can create a unique AI partner in it, experience the magnificent interstellar adventure with more
players, and harvest decadent SOUL tokens during the adventure.

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FinSOUL is developed based on Unreal Engine5, where each player first mints his AI partner and
NFT planet through governance tokens and then enters the metaverse market to play various free
or paid game copies and purchase various game NFT assets.

Users can finely customize hundreds of parameters such as gender, appearance, makeup, body
shape, attire, skills, etc., of partners according to their own preferences and match the personality
and behavior of partners in the ChatGPT-NPC awareness library that has undergone targeted
training, and then discuss with partners to create a player's NFT planet, the range that can be
formulated includes but is not limited to:

System of the Gas planets, Earth-like planets, stars,

mountains and plains comets, white dwarfs, neutron stars, etc.

Travel through system Rings and deep space starlight

Nebula cosmic
Planet online system
background sky ball

Physical collision rules Galaxy creation system

Cosmic background
Planetary orbit system
lighting system

City night light system Planetary atmosphere system

Seasonal change Continent system

Time changes day and night River system

Ice field system Ocean system

Valleys and earth fire system Vegetation system

FinSOUL will open up the gameplay editor and API to the industry, allowing creative teams
worldwide to develop various sandbox world gameplay and replicas of the grand FinSOUL universe,
competition not limited to multiplayer only, travel experience, socialization, MMORPG, gun battle,
air combat, action-adventure, interstellar trade, interstellar colonization, city building, simulation
management, quiz game...

This is a metaverse with actual lasting vitality. One day, FinSOUL may become our second life.

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13.Summary of Differentiated Core Competencies
13.1 Analysis of Technical Competence

Bitcoin Ethereum BSC SCF CHAIN AVAX Solana Polkadot

Two Chains
No No No Yes No No No
Structure
Modular Parallel
No No No Yes No No No
Chain
Flash Parallel
No No No Yes No No No
Cross-Chain

Scalability Low Low High High High High Medium

Decentralization High High High High Medium Medium High

Security High High Medium High Medium Medium High

Main-Chain 7500
Realistic TPS 7 18 100 Flexibility of Fin-Chain 4500 2900 400
Without Limit
Transaction
30-60min 5min 75sec 3sec 3sec 1sec 30sec
Confirmation Time

Average Gas Fee $12 $3 $0.01 $0.0001 $0.001 $0.0001 $0.15

Contract
Truffle Solidity
Development / Solidity JAVA/GO/Solidity Etc Rust Rust
Languages Solc GO

Type Layer1 Layer1 Layer1 Layer1 Layer1 Layer1 Sharding

Energy Efficiency No No Yes Yes Yes Yes Yes

13.2 Financial forecasts

SCF Chain generates revenue from the following sources:

1） SCFs earned from super node mining

2） Profits from Gas fees consumed by on-chain transactions
3） Interest from the collateralized issuance of FUSDs
4） Commissions from FinEX transaction matchmaking
5） Advertising revenue from FinBox social platform

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Concurrently, the following costs and expenses are incurred:

1） Node operating cost

2） Marketing and operational cost
3） Risk reserve fund cost
4） Cost of developing and maintaining public chain technologies

The number of SCF public chain users is currently in the tens of millions and is expected to
eventually hit the hundreds of millions.

SCF public chain's share of the cryptocurrency market will go from zero to billions of dollars, and
is expected to eventually hit tens of billions of dollars.

Assuming a market volume of one-tenth of ETH, a profit margin of 30%, and a PE of 30x, the
following financial forecast table is presented:

Total market capitalization

Year Revenue (USD million) Profit (USD million) Growth rate
(USD billion)

2023 300 90 300% 9

2024 900 270 300% 27

2025 2700 810 300% 81

We expect SCF Chain's total market capitalization to hit USD81 billion in 2025.

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14.Development Roadmap
January 2019 Founding meeting of the core team.

February 2019 Co-founded in 2019 by Bob Lambert and William Thompson, both Stanford
graduates, together with their close friends including Bruce.

January 2021 The brand new HyBriid security technology was developed.

December 2021 A breakthrough in HyBriid technology resulted in the SCF team winning the
DeFi Technology Contribution of the Year award at the Pan American Blockchain Summit.

March 2022 Being match-made by Jorge, vice president of Morgan Stanley, the two
companies completed the contracting process and were ready to form a new company. The SCF
team made a name for itself and gained a lot of attention from the market.

April 2022 Funded by JPMorgan and with technology provided by DF, Morgan DF SCF was
officially incorporated.

May-June 2022 SCF publicly solicited major financial companies and institutions worldwide
to serve as regulatory nodes, including 100 platforms such as Washington's Coin Center,
California's BitGive, Australia's Cryptos, and Singapore's LinkCove, to jointly safeguard user funds
and bring the risk factor infinitely close to zero.

June-July 2022 SCF held a special subscription partner event, in which 100 partner
subscribers were invited to witness SCF's prosperity.

July 2022 SCF was officially launched.

August 2022 Financial coupons worth USD1 million were distributed to SCF's global
communities to benefit more users around the world.

September 2022 SCF gradually established a global community service center and held
meetings and market launch conferences for communities in various countries.

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 October 2022 SCF set up a special foundation to cultivate technical talents in blockchain-
related sectors and held a hackathon to reward teams that help optimize SCF's security and R&D
innovation security technologies.

November 2022 SCF traveled around the world for roadshows and launch events, including
Silicon Valley, London, Toronto, and key cities in Asia Pacific such as Singapore, Kuala Lumpur,
Tokyo, Seoul, Hong Kong, and Macau.

December 2022 HyBriid 2.0 smart contract protocol was upgraded to support lending in most
mainstream coins and borrowing with up to 5x leverage to increase capital utilization.

January 2023 To gather a large amount of user data for ongoing improvement of the
performance of the financial public chain and to give back to participants, SCF offered community
users a chance to participate in a six-month internal test of the public chain. That allowed users
not only to experience the features and convenience of the SCF financial public chain ahead of
others, but also to gain a firm foothold in the future crypto world and maximize their asset returns.

January 2023 The Middle East royal family injected USD1 billion for an 18% stake, and the
company began restructuring. The listing process was accelerated with the financial support of
the royal family.

February 2023 Former Morgan DF SCF LLC completed restructuring into SCF LLC, with
William Thompson as Chairman of the Board.

February-June 2023 In-depth negotiations are planned with multinational banks such as
Wells Fargo, HSBC, Citi, Goldman Sachs, etc. to bridge critical capital on the Wall Street,
seamlessly connect traditional centralized finance with decentralized finance, and make the
blockchain financial market more mature.

June 2023 SCF Chain (SCF) is launched globally.

June-December 2023 SCF makes every effort to establish strategic partnerships with
enterprises and businesses in third-world countries to assume its social responsibility, helping
them catch up by leveraging blockchain.

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 End of 2023 Community users of Finton will reach the milestone of 100-million-scale,
covering more than 100 countries and thousands of cities worldwide, fulfilling SCF's vision of win-
win cooperation.

2024 – 2025 SCF will seek its global footing with the number of global users exceeding
hundreds of millions, and to be listed on NASDAQ, becoming a unicorn blowing up blockchain
finance worldwide.

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15.Reference Appendix of the Technical
Framework Inspirations Section

SCF is a super public chain that epitomizes the cutting-edge blockchain technologies and boasts
irreplaceable advantages in core applications for the financial sector. We are deeply grateful to
the industry pioneers and elites for their explorations with wisdom. This appendix is dedicated to
the experts and scholars who have contributed a lot to the development of the industry and SCF's
technical architecture:

A Proof-of-Work Parallel-Chain Architecture for Massive Throughput

https://neironix.io/documents/whitepaper/6793/chainweb-v15.pdf

Proceedings of the 2018 International Symposium on Communication Engineering & Computer Science
https://www.atlantis-press.com/proceedings/cecs-18/25902503

Practical Byzantine Fault Tolerance

https://pmg.csail.mit.edu/papers/osdi99.pdf

Replication Theory and Practice

https://link.springer.com/book/10.1007/978-3-642-11294-2#toc

An Attack-Tolerant Agreement Algorithm for Block Chain

https://ieeexplore.ieee.org/abstract/document/8639577

The knowledge complexity of interactive proof-systems

https://dl.acm.org/doi/abs/10.1145/3335741.3335750

Pinocchio: nearly practical verifiable computation

https://dl.acm.org/doi/abs/10.1145/2856449

A No BS Look at L1 Performance
https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581

On the Size of Pairing-based Non-interactive Arguments

https://link.springer.com/chapter/10.1007/978-3-662-49896-5_11

Bulletproofs: Short Proofs for Confidential Transactions and More

https://eprint.iacr.org/2017/1066.pdf

Scalable, transparent, and post-quantum secure computational integrity

https://eprint.iacr.org/2018/046

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 P2PTradeX: P2P Trading between cryptocurrencies
Https://bitcointalk.org/index.php?topic=91843.0

Alt chains and atomic transfers

https://bitcointalk.org/index.php?topic=193281.msg2003765#msg2003765

Solidity 0.8.18 documentation

https://docs.soliditylang.org/en/v0.8.18/

Bitcoin: A Peer-to-Peer Electronic Cash System

https://bitcoin.org/bitcoin.pdf

Atomic Cross-Chain Swaps

https://dl.acm.org/doi/abs/10.1145/3212734.3212736

A Review of the Current State of Decentralized Finance

as a Subsector of the Cryptocurrency Market
https://static1.squarespace.com/static/553d790de4b08ceb08ab88fd/t/5f5c2a4d381d4c58ce97cde2/1599875
662625/DeFi_P2_SciPaper_3.pdf

A Next-Generation Smart Contract and Decentralized Application Platform.

https://ethereum.org/669c9e2e2027310b6b3cdce6e1c52962/Ethereum_Whitepaper_-_Buterin_2014.pdf

A Survey of Blockchain From the Perspectives of Applications，Challenges，and Opportunities

https://ieeexplore.ieee.org/abstract/document/8805074

Trusted and Secured E-Voting Election System Based on Block Chain Technology
https://link.springer.com/chapter/10.1007/978-3-030-43192-1_9

Finance and Economics Discussion Series

https://www.federalreserve.gov/econres/feds/decentralized-finance-defi-transformative-potential-and-associated-risks.htm

Bidl: A High-throughput, Low-latency Permissioned Blockchain Framework for Datacenter Networks

https://dl.acm.org/doi/10.1145/3477132.3483574

PROOF-OF-STAKE (PoS)
https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/

Addressing Scalability and Storage issues in Block Chain using Sharding

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3446547

Securing Proof-of-Stake Blockchain Protocols

https://link.springer.com/chapter/10.1007/978-3-319-67816-0_17

Initial Evidence from the Ethereum Ecosystem

https://www.nber.org/papers/w30949

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