Secretum Litepaper

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Executive summary

The world is experiencing multiple revolutions in the fields of communications, data, and Blockchain. Along with the positive impact of these technologies, arise a series of new and unprecedented threats:

  • Cybercrime will cost the world’s economy an estimated $10.5 trillion annually by 2025.
  • Crypto asset thefts and hacks are constantly rising. An average of over $10 million of crypto was stolen every day in 2020.
  • The personal data of hundreds of millions of people has been repeatedly stolen, and often sold, from major messaging platforms including Whatsapp, Facebook Messenger, and Yahoo.

Secretum has been developed as the first comprehensive Blockchain-based solution to provide fully secure messaging, safe crypto asset storage, and cost-effective OTC trading of all crypto assets.

Built on Solana, the world’s fastest Blockchain, Secretum is based on a network of independently verified nodes and a token (SER) to enable encrypted message staking, store files securely, and reward node verifiers for expanding the ecosystem. The Secretum proprietary protocol further enables direct P2P trading of all crypto assets, including NFTs, at the most competitive costs on the market. By requiring only a crypto wallet address to sign up, total user privacy and anonymity is permanently guaranteed. Thanks to its innovative architecture, unrivaled security, and multiple user functionalities, Secretum represents the start of a new era for global communications and crypto trading.

Secretum – A Revolutionary Secure Messaging & Trading DApp

Secretum is the world’s first and only decentralised, encrypted messaging and OTC trading Blockchain DApp. Secretum creates a completely new ecosystem allowing all crypto asset owners to:

  • Communicate directly and anonymously by messaging/phone/video with any other wallet owner in the world, based only on knowing their wallet addresses.
  • Trade crypto assets and tokens crypto P2P via an integrated ESC (escrow smart contract) functionality.
  • Make communications, file storage, and transactions secure from hackers and government interference via a decentralised distributed node network.
  • Receiverewardsforappuseandcontentcreation,in addition to paying for additional services/subscriptions, via the SER token.
  • Allow users to offer premium content on public channels to other platform users, in exchange for payments via the SER token.

The Secretum solution offers numerous benefits to users:

Messaging Security – The node-to-node communication protocol means all messages between users are stored on trusted nodes, directly on our Solana-based Blockchain network. Users can sign up exclusively with their wallet addresses, validated by the node network, while maintaining complete anonymity.

Trading Flexibility – Secretum allows crypto owners to do something unprecedented, namely communicate and trade with each other without having to know each other, or have each other’s data on a contact list. This opens up endless opportunities for exchanging messages, files, and assets between previously disconnected individuals – an enormous step in fostering the adoption of crypto currency and creating liquidity in the market.

Cost Effectiveness – Allowing users to trade crypto assets in a cost-effective way – be it fungible ones (ether, bitcoin, etc.) or non-fungible ones (NFTs), directly on a P2P basis.

Data Security – Files are stored on trusted, independent nodes in the Secretum network, and transfers happen on a P2P basis, based on an encrypted procedure verified by the parties involved alone. No more data breaches, hacks, password leaks, or any other risk affecting existing cloud storage solutions.

 

The Secretum Trading Solution – The Power Of Blockchain, Without The Disadvantages of Crypto Exchanges

Crypto asset trading has increased exponentially in the last two years, with the volume of DEXs and CEXs reaching over $500 billion a month by the end of 2020:

CEXs and DEXs, however, suffer from major weaknesses:

CEXs

CEX users give up control of their assets to the exchange’s servers. This can put their wallets and assets at risk of being stolen, or their personal data hacked in security breaches.

DEXs

DEXs operate on smart contracts only, limiting their trading capabilities. Most DEXs offer limited liquidity, therefore asset prices are often priced inefficiently. Furthermore, network congestion during high volume periods result in high transaction costs.

Secretum As A Superior Trading Solution For Crypto Assets

A number of elements make Secretum an ideal trading solution compared to existing market alternatives:

Secretum “Instant Trade”

The Secretum “Instant Trade” function allows users to directly send from or receive to their wallets crypto assets to/from those of other Secretum users. This excludes the need for any exchange and opens up the opportunity of trading P2P non-fungible tokens which are not traded publicly. Secretum makes trading crypto assets as simple as sending an instant message or SMS – easy, immediate, and directly from one person to another.

Multi-Wallet Compatibility

Secretum wallets are Ethereum compatible and allow users to trade NFTs, and other cryptocurrencies, also with wallets outside of the Secretum network. In July 2021 Neon Labs announced the deployment of a cross-chain Ethereum Virtual Machine on the Solana testnet. This enables EVM decentralised applications in the Ethereum ecosystem to leverage the high throughput and fast block times of Solana.

Enhanced Trading Applications

The Solana architecture enables Secretum users to develop advanced trading applications to manage and invest in crypto assets. This includes AI-powered trading algorithms that can be designed according to a trader’s individual preferences in terms of crypto asset type, volatility, risk propensity, return objectives, and time frame.

The OTC Advantage

Trading of crypto assets to date has been relegated to DEXs and CEXs. Secretum enables the growth of an OTC ecosystem, whereby the notion of an exchange disappears completely and is replaced by individual traders directly interacting with one another, wallet to wallet.

The Secretum Messaging Solution: Using Blockchain To Make Messaging Fully Secure

Messaging apps have proliferated during the last decade, and the growth is expected to continue. The number of global users is expected to grow to 3.12 billion by the end of 2023, with penetration of the smartphone market rising to 90.1%:

The most popular messaging applications of today, nevertheless, do not address or solve the concerns of their users:

Secretum As A Superior Messaging Solution

Secretum avoids the personal and data risks present in existing messaging apps while offering a significantly greater level of privacy. On Secretum, all data and messages are stored on trusted nodes directly on our Solana-based Blockchain network. The Secretum messaging DApp

  • Does not collect any sensitive personal data (emails, ID numbers, DOBs, physical addresses, etc), avoiding altogether the risk of data hacks.
  • Eliminates the security risk of centralised user data storage, bypassing any central points of failure.
  • Holds message history and files (photos, documents, etc.) on anonymous, independent, and non-connected nodes, on the Secretum network.

The SER Token – Secretum’s Messaging Token Innovation

Secretum introduces the concept of a crypto token as a utility instrument for communication on the platform. The use of the SER token to enable messaging is based on the following principles:

  • Messages as transactions, whereby the parties stake SER tokens in order to communicate with each other. Users can also spend SER tokens in alternative ways, including paying for premium services, sending message “blasts”, creating subscription channels, etc.
  • By denominating all messages/transactions in SER tokens, the stability of Secretum is preserved, as its value would only depend on the services, size, transaction volume, and messaging volume of the ecosystem.
  • In addition to spending SER tokens for messaging/file storage services, or for trading purposes, Secretum users can also earn tokens. This can be done by completing specific incentivised actions, including referrals of users, generating the content, file storage, and more.

Secretum’s Advantage: The Power of the Solana Blockchain

Secretum has chosen the Solana Blockchain as the basis of its architecture. Solana’s main aim is to solve the Blockchain trilemma – creating a fast and scalable network, without compromising on security or decentralization. Solana provides a series of tangible advantages for Secretum:

Speed

Solana can process more than 50,000 transactions per second (TPS). Developers say the transaction speed can reach 700,000 TPS as the network grows. This significantly outpaces many of its major competitors:

Cost

Solana has an average cost per transaction of $0.00025, in some instances as low as $0.0001.

Rising Scale Effects

Solana has grown its network to over 1,000 validators, with a blocktime below 1000 microseconds. It is estimated that Solana will be able to accommodate 710,000 transactions per second on a 1 gigabit network.

How Secretum Is Built – The Three Layer Structure

Secretum is built upon a three-layer architecture – Blockchain, Nodes, and Application:

Blockchain – This layer manages node-to-node discovery and communication.

Nodes – This layer routes node-to-blockchain communication, as well as node-to-user communication.

Application – This layer is constituted by the actual Secretum messaging, file storage, and asset trading app.

How Secretum Works: A Clear, Safe, and Intuitive Platform

Secretum’s processes for messaging, file transfer/storage, and trading are both sophisticated and straightforward.

Messaging & File Transfer

Before starting to communicate, all users want to know that they are sending messages to the right person and that the channel is safe. Secretum ensures these conditions via the following steps, which are automated and completed within seconds:

  1. User A (sender) requests an IP from the Secretum Blockchain
  2. The IP is returned to User A.
  3. User A’s application generates a random number and encrypts it with User B’s (receiver) public key.
  4. The encrypted number is then sent to User B, where the application automatically receives and decrypts the challenge using the stored Private key of User B.
  5. The answer to the challenge is sent back to User A
  6. The answer to the challenge is verified by User A’s app.
  7. Once the validation is completed, User A and B can now communicate and share files P2P.

Identity Sharing & Asset Trading

Secretum aims to allow identity sharing with as limited risk as possible on untrusted networks. The process follows these steps:

  1. User A encrypts their username using Use B’s public key and the RSA-1024 encryption method.
  2. User A receives an encrypted username.
  3. User A shares the encrypted username with User B. The message is secure as it can only be decrypted by User B’s private key.
  4. User B receives their encrypted username.
  5. The application decrypts the username of User A.
  6. User B queries the Secretum Blockchain network to retrieve the IP of User A.
  7. User B retrieves the UP of User A.
  8. User A and User B can now communicate and transfer assets between them.

Secretum vs. The Competition

The architecture and logic of the Secretum DApp represent an advantage over the competition:

The Secretum User Type – Our Target Markets

Secretum addresses the B2B, B2G, and C2C customer segments:

The B2B & B2G Segment

Corporate & Government Users

Corporations worldwide are aware of IP theft, cybercrime, and trade secret theft, which cost the global economy up to $1 trillion a year.

(Global Market Size: 300-500 million individuals)

Small to Medium-Sized Enterprise Owners

It is estimated that 75% of all SMEs have no cybersecurity plan and that 60% of small businesses that are victims of a cyber attack go out of business within six months.

(Global Market Size: 130-150 million individuals)

The B2C Segment

Average Users

This is a person who values the privacy of their private messages, of the files or photos they share.

(Global Market Size: 600-700 million individuals)

High Net Worth Individuals & Celebrities

These are individuals who, due to their significant wealth, public profile, and personal influence, have a strong interest in shielding their movements, assets, and personal data from cyber threats.

(Global Market Size: 20-50 million individuals)

Crypto Users

This is the fastest-growing user segment targeted by Secretum – the global population of crypto users doubled from 106 million in January 2021 to 221 million in June 2021, a less than six month period.

(Global Market Size: 250 million individuals)

Secretum’s Go-To-Market Strategy

Secretum plans to market itself and expand via a series of proven strategies that have been used by other messaging and trading apps (including Telegram, Robinhood, and Dropbox) to create fast organic growth:

Phase 1 – Market Entry (Months 0-6)

Focus: The B2C segment.
Goal: Achieve maximum decentralisation via early user adoption and node distribution. User Incentive: SER token rewards for running nodes.
KPI: +51% of user nodes over 6 months.

 

Phase 1 will involve three main activities:

Collaborations

  • Token sale to onboard investors are product evangelists/user
  • Partnerships with privacy-oriented companies

Sponsorships

  • Referral rewards and giveaways for successfully onboarded users

Education

  • Contacting crypto and Blockchain influencers for exposure
  • Video reviews on paid YouTube channels
  • Paid Twitter/Instagram influencer posts

 

Phase 2 – Target Audience Penetration (Months 7-12)

Focus: Expand our B2C reach and target the B2B segment.

Goal: Achieve mass B2C adoption and corporate adoption.

User Incentive: Cost-effectiveness, speed, safety, easy setup.

KPI: +90% of user nodes over 12 months.

 

Phase 2 will involve three main activities:

Blog

  • Weekly articles targeted at C-suite executives and monthly updates on the platform’s development – to maintain interest in the product and in the upcoming launch.

Guerrilla Marketing

  • Meme competitions
  • Merchandise design
  • Announcements of partnerships, integrations, etc.

SER: The Secretum Token’s Utility & Function

The SER Token is the currency of the Secretum ecosystem and covers various roles:

  • It acts as a form of guarantee for users to initiate contact or invite new users to the Secretum network, communicating with other users – staking.
  • It rewards users for providing nodes to the network.
  • SER token owners can be rewarded purely for ownership although they are not providing or validating any nodes in the Secretum network.
  • It allows users to trade crypto assets between Secretum wallets.
  • It enables users to monetise any content provided anonymously.
  • It allows users to pay for any additional premium services provided by the Secretum DApp.
  • It allows Secretum users to ping the wallets of non-users by sending a SER token to it.

Secretum’s Tokenomics

Secretum’s ecosystem is designed to promote a strong, long-term self-reliant economy with participant incentives aligned to the security and decentralization of the network. The main participants in the Secretum economy are:

  • Node Validators
  • Wallet Users

They are incentivised according to their tasks and contributions to the network, with two types of rewards:

  • Secretum protocol-based reward
  • Transaction commissions.

Protocol-based rewards are generated from inflationary SER token issuances from a pre-defined inflation schedule. These rewards will be allocated to validators according to node validation, with the remainder generated from transaction commissions.

Transaction commissions are generated from P2P asset transfers and messages. To promote the value of the token and the stability of the ecosystem, partial burning of each transaction fee is also implemented. As the Secretum network grows, inflationary rewards will constitute the bulk of incentives, to attract and build a large network of nodes and node validators.

The tokenomics of the Secretum platform are also designed to encourage the creation of Smart Public Channels by users that offer paid content subscriptions to other users:

To launch an SPC, a user will have to pay 100 SER tokens, of which 20% will be instantly burned, and 80% will become a staking reward for nodes. To access the content, users pay owners to set fees, which owners keep 90% of. The remaining 10% is used as a staking reward (80%) and burned (20%):

The burning function will encourage the maintenance of the token’s value (supply destruction), while the reward staking will incentivise the further expansion of the node network.

Token Sale Metrics

Token Name: SER

Total Supply: 100,000,000 Token Generation Event: TBA Initial

Market Cap: $1,550,000

 

Roadmap

Q4 2021

  • Private Sale
  • Blockchain Agnostic Architecture Beta Testing
  • Binance Smart Chain Bridge Support
  • DApp MVP development

Q1 2022

  • Public Sale
  • Liquidity / Listing
  • DApp development and advancement

Q2 2022

  • DApp development finalisation
  • Private Beta Testing and NFT Airdrops
  • Public Beta Release (Crypto Influencer Campaign)

Q3 2022

  • Secretum DApp launch
  • Final Testing
  • Deployment on app stores

Q4 2022

  • Community building + competitions
  • Secretum network setup and node validator onboarding.

Our Team

The Secretum team is made of experts in the fields of cyber security and crypto engineering. They have been developing the Secretum platform over the last three years, incorporating the most advanced crypto-security measures and developing unprecedented Blockchain end-to-end encryption technology. The Secretum team envisions a world where communications and assets are completely free from intermediaries, risks of theft, or any other external threat.