Algorithm Protocol

Decentralised arithmetic protocols

Before miners can sell or deposit cloud arithmetic as collateral, they need to tokenise the arithmetic and convert the cloud arithmetic into a negotiable arithmetic NFT. Most existing schemes for tokenising arithmetic are based on collateral and guarantee the validity of the arithmetic tokens issued through a centralised credit guarantee. While this scheme is simple to implement, it suffers from the pitfalls of arithmetic value fraud, unredeemable arithmetic and uncommitted returns as real-world miners have no relationship with the arithmetic value tokens issued.

Sulli Protocol proposes a fully decentralised solution to arithmetic value tokenisation that combines a non-falsifiable token (NFT) with multiple signatures, linking the real-world miner's arithmetic value to the arithmetic value NFT on a one-to-one basis. The issuance, circulation and redemption of an arithmetic value NFT can be verified by anyone, without the involvement of any centralised institution, so it is impossible for anyone to misrepresent and oversell the arithmetic value. Holders of Arithmetic Value NFTs can receive the mining rewards generated from their Cloud Arithmetic Value directly, without the need to issue rewards through miners or Cloud Arithmetic Value sellers.

Using Bitcoin's arithmetic value as an example, the protocol can be implemented using Ether's smart contracts.

The basic implementation is shown in the diagram:

A miner with an arithmetic value first registers with the Ethereun smart contract deployed by Sulli Protocol and ties his bitcoin address to his Ethereum address, the miner can send a request to Sulli Protocol to tokenize his specific arithmetic value. contract, generates an NFT for the bitcoin arithmetic value after the proof of work is verified, and sends the NFT to the miner, based on the information returned the miner sets the reward receiving address for his corresponding arithmetic value to 2-3 multi-signature addresses (the address of the miner, the NFT and the verifier, where the verifier's address is itself a multi-signature address), and submits the corresponding proof of work, after the multi-signature address and the corresponding proof of work are After the multi-signature address and the corresponding proof of work have been verified, the arithmetic value NFT will be sent to the miner's Ether address and the arithmetic value tokenisation process is complete.

The above arithmetic value tokenisation process is permissionless and any cryptocurrency miner (e.g. Ethereum or Filecoin miners) can generate a uniform corresponding Sulli NFT, which is highly compatible with future increasingly complex forms of mining (e.g. bandwidth, storage, hash mining, etc.).

The right to claim future gains in NFTs will be via the above-mentioned arithmetic value protocol, where the Sulli Protocol sets the block reward address for a specific bitcoin arithmetic value to a multi-signature address (the miner's address, the NFT holder's address and the verifier's address). At this point, since the miner has both his address, i.e. private key, and the newly generated arithmetic NFT, which means he holds two valid private keys, the miner has full rights to claim future gains corresponding to the arithmetic, and no third party can prevent the miner from receiving the block rewards generated by his arithmetic.