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StateSet Commerce Network: Revolutionizing Global Trade

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Abstract.

A purely peer-to-peer network for computational contracts and real-time transactions with low fees, instant finality and minimal trust between nodes would allow for the creation of a globally distributed open commerce platform. We present the StateSet Commerce Network, a permissionless, sovereign blockchain network, and describe in detail how it achieves the goal of a state-of-the-art, collaborative financial system for global commerce. Stateset is built on a new set of fundamental technological advancements; the Cosmos-SDK [2], Tendermint BFT Consensus Engine [3], Zero-Knowledge Proofs [4], CosmWasm [5] smart contract framework, and IBC [6] for transport, authorization and ordering of packets with other blockchain networks. This creates an open, global, community structured, backend system for sustainable computational commerce.

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Table of Contents

  1. Introduction
  2. Core Principles
  3. Technical Architecture
  4. Key Features
  5. Tokenomics
  6. Use Cases
  7. Ecosystem and Partnerships
  8. Roadmap
  9. Governance
  10. Security and Privacy
  11. Regulatory Compliance
  12. Future Vision

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Introduction

The StateSet Commerce Network is a revolutionary blockchain-based platform designed to transform global trade and finance. By leveraging cutting-edge technologies such as the Cosmos SDK, Tendermint BFT, CosmWasm, and Inter-Blockchain Communication (IBC), StateSet aims to create a permissionless, state-of-the-art, collaborative financial system for global commerce.

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Core Principles and Vision

  1. Global State, Global Liquidity: Creating a unified, global commerce layer that transcends traditional boundaries.
  2. Decentralization and Trustlessness: Minimizing reliance on central authorities and intermediaries.
  3. Interoperability and Seamless Integration: Facilitating effortless interaction with other blockchain networks and traditional systems.
  4. Scalability and Efficiency: Handling high transaction volumes with low fees and instant finality.
  5. Security and Privacy: Ensuring the safety of assets and data while preserving user privacy.
  6. Inclusivity and Accessibility: Enabling global participation in commerce and finance for individuals and businesses of all sizes.
  7. Innovation and Adaptability: Continuously evolving to meet the changing needs of global commerce.

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Architecture of the Future

StateSet Commerce Network represents the next evolution in commerce infrastructure:

  1. On-premise systems (Past)
  2. Cloud computing (Present)
  3. Decentralized networks (Future)

StateSet Commerce Network aims to be the “port city” for commerce, interoperable with a network of community computers worldwide, driving society into the future. This collective oneness will unite businesses, societies, groups, and communities in a shared, transparent ecosystem.

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Technical Architecture

    _____       _____                 _____
    _________  /______ __  /___________________  /_
    __  ___/  __/  __ `/  __/  _ \_  ___/  _ \  __/
    _(__  )/ /_ / /_/ // /_ /  __/(__  )/  __/ /_
    /____/ \__/ \__,_/ \__/ \___//____/ \___/\__/


                ^  +-------------------------------+  ^
                |  |                               |  |
                |  |  State-machine = Application  |  |
                |  |                               |  |   Built with Cosmos SDK
                |  |            ^      +           |  |
                |  +----------- | ABCI | ----------+  v
                |  |            +      v           |  ^
                |  |                               |  |
Blockchain Node |  |           Consensus           |  |
                |  |                               |  |
                |  +-------------------------------+  |   Tendermint Core
                |  |                               |  |
                |  |           Networking          |  |
                |  |                               |  |
                v  +-------------------------------+  v

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Blockchain Foundation

StateSet is built on a foundation of cutting-edge technologies and principles:

  • Cosmos SDK: Modular framework for building application-specific blockchains
  • Tendermint BFT: Byzantine Fault Tolerant consensus engine
  • CosmWasm: Smart contract platform for the Cosmos ecosystem
  • IBC (Inter-Blockchain Communication): Protocol for interoperability between sovereign blockchains

These technological pillars enable Stateset to offer:

  • Global Order State and Fulfillment Network
  • Collateralized loans with dynamic states (request, approve, repay, liquidate)
  • DID-linked Invoices for direct factoring and payment between counterparties
  • DID-linked Purchase Orders for direct financing and payment

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Custom Modules

  1. x/order: Manages order creation, fulfillment, and management
  2. x/agreement: Manages agreement logic and workflows
  3. x/did: Handles Decentralized Identifier (DID) creation and management
  4. x/invoice: Controls invoice creation, factoring, and payment processes
  5. x/loan: Manages collateralized loans, fees, and related actions
  6. x/proof: Handles proof generation and verification
  7. x/purchaseorder: Manages purchase order creation and fulfillment
  8. x/refund: Handles refund processes and dispute resolution

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Smart Contracts

  • stateset-cw721-base: Base implementation for NFTs
  • stateset-cw721-fixed-price: Fixed price NFT sales
  • stateset-escrow: Escrow service for secure transactions
  • stateset-option: Options trading functionality
  • stateset-loan: Loan management and processing
  • stateset-proof: Zero-knowledge proof generation and verification
  • stateset-sync: State synchronization between parties
  • stateset-workgroup: Collaborative workgroup management

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Key Features

  1. Tokenized Real-World Assets: Represent invoices, purchase orders, and agreements as NFTs with associated DIDs
  2. Decentralized Finance (DeFi) Services:
    • Invoice factoring
    • Purchase order financing
    • Collateralized loans
  3. Zero-Knowledge Proofs: Enable private transactions and state synchronization
  4. Consensus Controlled State Machine (CCSM): Ensures secure and private state synchronization between parties
  5. Inter-Blockchain Communication: Seamless asset and data transfer between Cosmos ecosystem chains
  6. On-Chain Governance: Community-driven decision making for network upgrades and parameter changes

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Tokenomics

  • Token Name: STATE (Ⓢ)
  • Total Supply: 28,000,000 Ⓢ
  • Inflation Rate: 5-15% annually, based on staking participation
  • Staking Target: 67% of total supply
  • Use Cases:
    • Transaction fees
    • Staking and governance
    • Collateral for loans
    • Liquidity provision

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Use Cases

  1. Order Management: Manage orders and fulfillment processes
  2. Supply Chain Finance: Streamline funding for suppliers and manufacturers
  3. Cross-Border Payments: Enable fast, low-cost international transactions
  4. Trade Finance: Facilitate global trade through efficient financing options
  5. Asset Tokenization: Create liquid markets for traditionally illiquid assets
  6. Decentralized Identity: Manage business and individual identities securely
  7. Collaborative Commerce: Enable seamless cooperation between businesses globally

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Ecosystem and Partnerships

  1. Validator Network: Decentralized network of validators ensuring network security and operation
  2. Development Community: Active community of developers building on the StateSet Commerce Network
  3. Financial Institutions: Partnerships with banks and fintech companies for fiat on/off ramps
  4. Enterprise Integrations: Collaborations with ERP and supply chain management systems
  5. Regulatory Bodies: Engagement with regulators to ensure compliance and drive adoption

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Roadmap

  1. Phase 1 - Foundation (Completed)

    • Launch of core blockchain infrastructure
    • Implementation of basic modules (order, invoice, purchase order, loan)

  2. Phase 2 - Expansion (Current)

    • Integration of zero-knowledge proofs
    • Launch of DeFi services (factoring, financing)
    • IBC integration with major Cosmos chains

  3. Phase 3 - Adoption

    • Onboarding of major enterprises and financial institutions
    • Launch of developer grant program
    • Expansion of validator network

  4. Phase 4 - Global Scale

    • Integration with traditional financial systems
    • Launch of cross-chain DeFi products
    • Establishment of StateSet as a leading blockchain for global commerce

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Governance

  • On-chain governance through proposals and voting
  • Staked STATE holders can participate in governance decisions
  • Proposals can include parameter changes, module upgrades, and fund allocations

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Security and Privacy

  • Regular security audits by third-party firms
  • Bug bounty program to incentivize vulnerability discovery
  • Zero-knowledge proofs for transaction privacy
  • Optional privacy features for sensitive business data

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Regulatory Compliance

  • Engagement with regulatory bodies globally
  • Implementation of KYC/AML procedures where required
  • Compliance with data protection regulations (e.g., GDPR)
  • Transparent reporting and audit trails

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Future Vision

The StateSet Commerce Network aims to become the backbone of global trade and finance, enabling:

  1. Seamless, borderless transactions between businesses worldwide
  2. Democratized access to financial services for businesses of all sizes
  3. Real-time settlement and reconciliation of complex multi-party transactions
  4. A new paradigm of collaborative commerce, driven by shared, verifiable data
  5. Integration of AI and IoT for automated, intelligent supply chains
  6. A truly global, decentralized marketplace for goods, services, and financial products

By realizing this vision, StateSet will play a pivotal role in shaping the future of global commerce, making it more efficient, inclusive, and resilient.

Orders Module