TECHNICAL BRIEF OF ARCC

DEVELOPMENT
Part 1: ARCC.one
A Microfinance Ecosystem Platform for Microasset Management on a Social
Proof of Work decentralized information network.

Part 2: IBMR Verifiable Data Engine

The technological foundation of Social Proof of Work.

ibmr.io, arcc.io, arcc.one

v.1.1
November 3rd, 2019
Table of Acronyms & Definitions

Acronym/Term Description
ARCC Asia Reserve Currency Coin
IBMR International Monetary Blockchain Reserve
SPoW Social Proof of Work
SpoW Network Decentralized Information Network of Socio-Economic Data
ARCC.one Fintech Microasset Mobile/Web Platform
Microasset Debt-Free Capital innovation in the microfinance space
Ecosystem Platform for 3rd party microasset service providers on ARCC.one

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Table of Contents

Part 1: ARCC.one Platfrom & Ecosystem Overview

1. ARCC.one 4
2. Social Proof of Work (SPoW) Mining 7
3. Social Proof of Work (SPoW) Network 8
4. ARCC Microasset Ecosystem 9
5. Fintech Platform Functionality 10
6. Fintech Platform Architecture Overview 11
7. ARCC.one Fintech Platform Roadmap (WIP) 12

Part 2: IBMR Verifiable Data Engine

1. Introduction to Core Technical Development 13

2. Verifiable Data Layer 14
3. IBMR Verifiable Data Engine 15
3.1 Authentication and Authorization
3.2 Application Activity
3.3 Verification

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Part 1: ARCC.one Platform & Ecosystem Overview

1. ARCC.one
1.1 Introduction

ARCC.one is a mobile microfinance fintech ecosystem platform for emerging markets in

Southeast Asia that issues the microasset, ARCC (Asia Reserve Currency Coin) for
structural financial inclusion. ARCC.one is designed to be accessed as a mobile APP by
the user and as a microfinance ecosystem for development partners.

1.2 Purpose

To create a mobile fintech microfinance APP for emerging markets as a means for
empowerment for those who are undocumented, exploited and will never be banked. The
app has many functions as a socio-economic reporting tool, community project staking,
digital ID, entrepreneurial capital support and microasset management platform.

The two main functionalities of the APP are to use a process called ‘Social Proof of
Work’ (SPoW) which is an act of social mining that earns users ARCC (please refer to the
ARCC whitepaper for further details) and to then manage the earned ARCC in an online
asset management service.

The act of SPoW contributes to the SPoW Network which leverages the blockchain to
create a decentralized information network where reported information is uploaded and
its record immutable. The information goes through a process of verification, aggregation
and analysis to show the current issues, trends and development in the socio-economic
status of the urban working poor.

Users report in three ways: location reporting (like Waze and google locations), uploading
data (like bills) and surveys (like survey monkey), and are rewarded with our ARCC token
as their incentive to participate in the network’s data integrity and health.

Users then can use ARCC earned on the platform in microasset management services,
along with community staking projects and games (entrepreneurial lottery) to grow their
ARCC. After a 3 year vesting period, the full amount of ARCC earned can be withdrawn
from the platform to a secondary exchange for direct entrepreneurial debt-free investment
usage.

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1.3 Intended Audience

Southeast Asia:
Primary Markets: Philippines, Indonesia, Thailand, Malaysia
Secondary Markets: Vietnam, Cambodia, Laos

Focused on the urban working poor, so those with mainly Android, $100 smart phones
and urban mobile and/or hotspot wifi connectivity.

The total market would be for Southeast Asia at 100 million users as a maximum of the
major urban centers. Total population of Southeast Asia is 630 million. As the urban
working poor make up between 30%-50% of the urban population, the total available
market would be for Southeast Asia estimated at approximately 30-50 million users.

1.4 Intended Use

This is for urban areas only and really for those young professionals who may have a
post secondary school education but have no savings and are working in business
processing operation (BPOs) centers or other international outsourcing jobs and still live
with their parents in urban slums.

This is not a rural project or a poverty reduction project. We are looking to deploy this
APP where it can have the maximum urban productivity impact through debt-free capital
distribution for entrepreneurship. As such the effective and active user base may actually
be significantly lower than the maximum 30-50 million user range.

Yet, for reference, in the Philippines alone for users:

Instagram in 2018 had 11,000,000 users (10.2% of total population)
Twitter in 2018 had 5,080,000 (4.6% of total population)
Linkedin in 2018 had 7,400,000 (6.9% of total population)

Our own optimal user target would be at 30% Linkedin users for a focused target market
of 2,220,000 in the Philippines alone.

1.5 Scope & Local Considerations

The APP should eventually be multilingual, but this would be in phases dependent upon
country roll out.

Our expectation to hit 250,000 users in the Philippines within 12 month of launch is a
fairly reasonable number considering the viral nature of the market, but we expect a high

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degree of fraudulent accounts in the first two years. As such, robust audit and security
processes will be required.

Additionally, unlike developed markets, emerging markets have significant physical

security risks of thefts, robbery and natural disasters and thus, the ability to regain access
or recover a user account is extremely necessary. Thus, wallet and account functions in
the APP will be in a centralized framework with a transition for the user to their own
decentralized wallet over time.

An Android version is the most practical initial mobile OS version as we would be able to
eventually partner with Android manufacturers for our own specs.

The functionalities listed in this brief are extremely robust and can act as standalone
apps. As such, the initial functionality on the platform will be mainly for proof-of-concept
for other strategic development partners in the microfinance space to join and build in the
ecosystem providing multiple options for the user. That being said, the initial in-house
developed functionality will be fully functional, but the majority of the development work
will be in providing a robust wallet and data platform for API integration of ecosystem
partners.

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2. Social Proof of Work (SPoW) Mining

Purpose: The purpose of the SPoW mining is to provide financial inclusion through a
way of acquiring a cryptocurrency without either PoW electricity based
mining or Proof of Stake capital exchange. Current methods require either
a capital investment or currency trade to acquiring the cryptocurrency.

Objective: The act of SPoW provides a continuous stream of information that keeps
the SPoW Network up-to-date and relevant in what is reported and the
overall socio-economic status of the urban working poor. SPoW acts as the
incentive mechanism to ensure the health and integrity of the SPoW
Network as a decentralized information network and provides a clear path
for the onboarding of users into ARCC as a microasset.

Scope: SPoW is the main mechanism for the user to participate in all the functions
and services of the SPoW Network as it is the only mechanism whereby
you can mine (earn) ARCC from.

Mechanics: Users are rewarded with ARCC from a fixed pool of annually minted ARCC.
The distribution of ARCC to the user for every act of SPoW is based on a
weighted formula of mining difficulty taking into account the current ARCC
market price, the total remaining supply, and the total frequency of SPoW
actions completed from the previous day. The actual process involves users
choosing between a number of socio-economic reporting options from
location based reporting, data uploading, and surveys.

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3. Social Proof of Work (SPoW) Network

Purpose: The SPoW Network is a decentralized information network that provides an

accessible and distributed way socio-economic financial inclusion via the
establishment of Radical Social Transparency through public mandates
backed by user verified data and debt-free capital accumulation through
microasset management services.

Objective: To provide every user the ability to freely earn and accumulate ARCC as a
debt-free microasset through participation in SPoW and in all the services
on the SPoW Network.

Scope: In order to be effective, the SPoW Network needs considerable data in

geographical urban coverage, a vast number of active users, sufficient
frequency of reports and consistent baseline data over periods of months
and years. This is a network that gains its value from scale, scope and
frequency. As such, the SPoW Network will be most valid and effective in
high concentration areas of users.

Mechanics: Users access the SPoW network through the APP, ARCC.one, which
allows them to start the SPoW mining process and access the additional
microasset management services on the platform.

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4. ARCC Microasset Ecosystem

Purpose: To provide a new economic system that is inherently financially inclusive

and that benefits from decentralized network effects in such a way that
those exponential gains can be realized in ARCC’s price and function as a
microasset.

Objective: To provide every user the ability to financially grow their ARCC holdings on
the platform through the services provided by ecosystem service providers
through the microasset economic model.

Scope: As an ecosystem platform, other microasset management service providers

will be able to join the platform to provide comprehensive and competitive
offerings based on the ARCC microasset decentralized economic model.
As an asset management service, the key leverage is the aggregated pools
of capital represented by the users for access to ‘micro’ services such as
insurance and financial instruments that can be tokenized without being
minimized in their returns and benefits.

Mechanics: Qualified ecosystem service providers will be given access to User wallet
APIs and other platform data APIs for users to directly interact with the
qualified third party ecosystem partners and service providers. Users will be
able to use vested and vesting ARCC in these services and make a
competitive selection. The transactional fees generated on the platform
would be shared on a percentage basis on a sector by sector basis
between the ecosystem service provider and the platform.

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5. Fintech Platform Functionality of ARCC.one
The areas of functionality also represent the areas for ecosystem participation.
They are as follows:

1. Digital ID services
2. Asset Management Services
3. Insurance Services
4. Community Staking
5. Entrepreneurial Lottery and Games
6. Events and Education
7. Peer-to-peer Investments

*The actual scope and function of these areas are explained in detail in the ARCC
Whitepaper.

The platform functions that are directly managed by ARCC are:

8. Digital ID user profile & User validation

9. SPoW Mining
10. SPoW Network
11. User Wallet
12. Platform Loyalty System

*ARCC.one will provide APIs to ecosystem service providers of these platform functions
to engage in ecosystem services.

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6. Fintech Platform Architecture Overview

Figure 1. Fintech Platform Architecture Overview

6.1 General Remarks of the Architecture

ARCC.one, operates as a centralized system when dealing with ARCC within the
platform itself and treats the movement of ARCC as credit within the system. When
ARCC is vested by the user, then it is withdrawn from the platfrom to the user’s external
wallet as a fully decentralized token.

The SPoW mining sends data to the DLT solution of ‘Verifiable Storage’ and the data is
further analysed and complied in the Database. Verified data is can then be hashed to
the public blockchain as a public timestamp.

Ecosystem 3rd party service providers interact via APIs with the wallet, platfrom user
functions and accounting with the Admin Back Office.

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6.2 ARCC.one Fintech Platform Roadmap (WIP)

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Part 2: IBMR Verifiable Data Engine Overview
1. Introduction

The International Blockchain Monetary Reserve, IBMR, promotes distributed inclusive economic
development for the urban working poor in corrupt and failing emerging markets 1. To achieve this
ambitious goal requires a multifaceted strategy, including sound governance, a strong reserve currency,
and robust trusted technology. This document details the core software upon which the IBMR technology
stack is built.

Central to the design of IBMR’s software is trustworthiness. In order to support economic development,
applications must be trusted to store and transfer digital assets. In order to combat corruption, independent
organizations must trust that the data collected by applications cannot be manipulated or tampered with,
and that IBMR represents regional socio-economic activity perhaps more accurately than any other source
of data.

Figure 2. The Verifiable Data Engine is central to achieving IBMR’s goals.

1
https://ibmr.io/wp-content/uploads/2019/02/ARCC-WhitePaper-Jan-feb-26-web-file.pdf

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2. Verifiable Data Layer

A Verifiable Data Structure 2, in computer science, uses strong cryptography to guarantee

that records, once published to the data structure, cannot be altered in any way without
those changes being easily detected by independent observers. This quality 3 enables
otherwise untrusted blockchain nodes to achieve consensus. Verifiable data structures
are used in other contexts such as public key infrastructure 4, data and source code
transfers 5, and distributed business transactions 6.

In IBMR’s design, application activity is encapsulated as a series of events. These

events, in the order they have occurred, determine an application’s state. The entire
event stream is represented in a verifiable data structure. This means, importantly, that
IBMR applications can produce the results of a regional socio-economic survey, then
assert that each response to the survey is represented and none of the responses have
been altered. Independent auditors can confirm these assertions, with strong
cryptographic guarantees.

The same integrity that guarantees survey results also assures wallet balances and
values in other applications built on the IBMR platform. This foundation of data integrity
makes Social Proof of Work 7 possible, specifically participants contributing highly-reliable
data to earn economic rewards.

2
https://github.com/google/trillian/blob/master/docs/papers/VerifiableDataStructures.pdf
3
That changes are easily detected allows the data structure to be append-only and tamper-proof.
4
https://www.certificate-transparency.org/
5
https://go.googlesource.com/proposal/+/master/design/25530-sumdb.md
6
https://qed.readthedocs.io/
7
https://ibmr.io/wp-content/uploads/2019/02/ARCC-WhitePaper-Jan-feb-26-web-file.pdf

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3. IBMR Verifiable Data Engine

IBMR provides a straightforward programming interface, allowing a variety of applications

to consistently and reliably produce verifiable data. We refer to this technology as
IBMR’s Verifiable Data Engine.

Figure 3. Verifiable Data Engine and Interfaces

3.1 Authentication and Authorization

Authorization and related tasks (registration, changes to credentials), pass through the
IBMR Authentication API. Authentication data, along with sensitive user data (such as
personally identifiable information) is stored separate from the verifiable data. System
Data refers to the secure privileged database storing sensitive information, while

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Verifiable Data refers to state and activity records within auditable, tamper-evident log
structures. Before storage, Verifiable Data is anonymized using algorithms that protect
user privacy against threats such as cross-application correlation.

3.2 Application Activity

User activity within an application is expressed as one or more events. Events are
transactional, meaning only authorized events update application state. Every change to
application state is associated with an authorized event. This is an important requirement
for auditability.

Applications have freedom and flexibility to introduce application-specific event fields.

Sensitive or identifying information, however, is limited to specific fields which are
anonymized before an event is persisted as Verifiable Data.

Reading and monitoring interfaces rely on Verifiable Data. This constraint ensures that an
application state is correct and consistent with what a third-party audit would indicate if
performed at the same moment in time.

3.3 Verification

Applications built on the IBMR Verifiable Data Engine produce data which arbitrary third-
party auditors can verify.

The auditors should observe, and store, occasional summary hashes of the verifiable log.
Summary hashes are small, making the overhead of this operation low.

To verify, the auditor requests a history of anonymized events. Comparing events to the
verifiable data structure, the auditor can quickly confirm that an event was part of the
event history and is unaltered. A more thorough (slower) audit can confirm that the event
history is complete (no events omitted). Verification guarantees are rooted in strong
modern cryptography techniques.

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