Customs Standardization Group Outside the Box Technology

Asset Control Coin (ACC)

With the advent of blockchain technology, including DAOs (Decentralized Autonomous Organizations) and NFTs (Non-Fungible Tokens), the cargo industry is in a prime position to embrace and innovate with the technology.  Currently, the cargo industry uses outdated methods for asset control, including issuing paper documents, physically scanning said documents into processing and record-keeping systems, requiring carriers to carry physical stacks of documents, and yes the fax machine is still widely used.

It’s time for the cargo industry to modernize and embrace new technology.  That is what this post will propose, the Assest Control Coin, or ACC for short.  ACC will be a Proof-of-Work ETH-based blockchain coin, that will be completely decentralized and will be solely used for asset tracking and never as a financial instrument.

Terminology

First, let’s go over some terms that will be used in this prosal.

“A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes.  Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree, where data nodes are represented by leaves). Since each block contains information about the previous block, they effectively form a chain (compare linked list data structure), with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.”

  • Decentralized Autonomous Organization (DAO) – From the Wikipedia article:

“A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization managed in whole or in part by a decentralized computer program, with voting and finances handled through a blockchain. In general terms, DAOs are member-owned communities without centralized leadership.”

  • Non-Fungible Token (NFT) – From the Wikipedia article:

“A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create.  NFTs typically contain references to digital files such as artworks, photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible.”

  • Blockchain oracle – From the Wikipedia article:

“A blockchain oracle is a third-party service that connects smart contracts with the outside world, primarily to feed information in from the world, but also the reverse. Information from the world encapsulates multiple sources, so that decentralised knowledge is obtained.  Oracles provide a way for the decentralized Web3 ecosystem to access existing data sources, legacy systems, and advanced computations. Decentralized oracle networks (DONs) enable the creation of hybrid smart contracts, where on-chain code and off-chain infrastructure are combined to support advanced decentralized applications (dApps) that react to real-world events and interoperate with traditional systems.”

  • Decentralized Finance (DeFi) – From the Wikipedia article:

“Decentralized finance (often stylized as DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks. Some applications promote high interest rates but are subject to high risk.”

  • Time To Live (TTL) – From the Wikipedia Article:

“Time to live (TTL) or hop limit is a mechanism which limits the lifespan or lifetime of data in a computer or network. TTL may be implemented as a counter or timestamp attached to or embedded in the data. Once the prescribed event count or timespan has elapsed, data is discarded or revalidated.”

The purpose of Asset Control Coin (ACC)

Currently, the cargo industry is not standardized, yes there are minimum requirements for documents, but there is no standard for tracking.  By creating and open-sourcing the ACC and having the entire cargo industry adopt its use, a standard can be created.  But why do we need a standard?  Currently, shippers, brokers, and customs agencies have to navigate each individual carrier’s tracking scheme, which leads to confusion and delays.  By having a single standard everyone agrees on these issues can be alleviated.

ACC can also go beyond the cargo industry, ACC could be used to track ownership of all assets.  Businesses and governments could track assets in the field like computers sent home with remote workers, and households could catalog all their possessions.  ACC could become the universal asset-tracking method.

Asset Control Coin would be based on the Ethereum (ETH) code with a completely separate Proof-of-Work blockchain.  The code would be open-source and have no centralized authority.  Why a separate blockchain?  As I stated in my previous post Providing credit to the Bitcoin economy through Credit Coin, ETH is at its heart centralized and unstable.  By creating a completely separate Proof-of-Work ETH-based blockchain, all the centralization the ETH has can be avoided and users can trust that the network is secured in a truly decentralized way that can not be locked by a few users as is the case now with ETH.

ACC would be a non-monetary coin, meaning it would not be used as a store of value.  The value of the coin would be in the service it provides.  There would be a way to buy ACC for those who do not wish to run a node (discussed below), but that would have a set price and be handled by the DeFi protocol instead of being actively traded on open markets.  Every ACC would be 6 decimal places, so 1 ACC would look like this 1.000000.  Each piece of freight would have an NFT minted for it at the cost of 0.000001 ACC per NFT.  Each NFT would be represented by a QR code on the shipping label.

Full nodes

Full nodes will be run by any organization that needs to actively manage the movement of assets.  So full nodes would be run by shippers, carriers, customs brokers, and government customs agencies.  Full nodes would connect to the ACC blockchain and download the entire chain, this would most likely be best done on a dedicated server for large organizations but should be lightweight enough to run on a dedicated desktop computer.  Once the blockchain has been downloaded and synced, the node will mint 1 ACC coin every 24 hours.  Every ACC coin will have a Time-to-Live (TTL) of 30 days at which time any unused ACC will be burned and disappear from the node.

Setting up the node

Once the first ACC coin has been minted the server administrator will be prompted to name the node, the name will be the human-readable routing address that is tied to the wallet address.  So for example, if XYZ Inc. set up a full node they would name their server XYZ, and the node would then create a DAO named XYZ DAO and, register an address of XYZ.ACC with the network.

Creating a DAO and registering the ACC domain will cost 1 ACC.  Creating a DAO and registering the ACC domain will be seen as a transaction on the ACC blockchain and will require 5 confirmations from other full nodes before the DAO and its associated domain can be used.  Each of the 5 full nodes that confirm the transaction will receive 20% of the ACC that XYZ Inc. used to register.

Obviously in the beginning there will be no nodes on the network, but it is assumed that developers will run nodes for testing purposes.  These developer nodes would verify each other and then act as the initial verification nodes once the code is released.

Accessing the node would be done through a desktop application.  The server administrator would have the application (app) on their workstation and would have set a seven-digit user ID, for example, 1234567.  The administrator would put the number they chose into the node and assign themselves administrator status.  At this point, the node would associate the user ID with the node address and assign the administrator the address of 1234567@XYZ.ACC  They would then go back to their workstation to see that their ID has changed from 1234567 to 1234567@XYZ.ACC and then input their their name, and job title.  Their role within the node would automatically be set based on what was selected on the node.  This would be shown as follows:

  • Node address – 1234567@XYZ.ACC
  • Node role – Administrator
  • Name – John Smith
  • Title – Node Administrator

They would then assign others administrator status and then assign moderators.  The roles would be as follows:

  • Administrator – Full node access, can add or remove at all levels, can read and write data.
  • Moderator – Can add or remove users, and can read and write data.
  • User – Can read and write data.
  • Bot – Can read and write data.

So let’s say ZYZ Inc. sets up its ACC node and assigns roles, it would look something like this.  The administrators would be the IT staff maintaining the node, Moderators would be members of management responsible for hiring and firing, users would be hourly staff that physically interacts with the freight, and bots would be automated equipment that autonomously interacts with the freight.

Lite Nodes

Lite nodes will be paired back nodes, only downloading and maintaining the last 30 days of the ACC blockchain.  Lite nodes will be used for organizations and individuals who infrequently ship freight or for individuals who wish to track their personal assets.  Lite nodes will mint 1 ACC every 30 days and that ACC will have the same TTL of 30 days.  Lite nodes will have all the same functionality as a Full node but will take longer to create a DAO and register an ACC domain due to the 30-day minting process.

Mobile nodes

Mobile nodes will be associated with individual user IDs within a full or lite node.  They will be used for tasks such as carriers scanning a freight’s NFT QR code to confirm receipt and delivery, and minting new NFTs when a shipper is unable to mint their own.

DAO ownership

When a node creates a DAO the administrator will select how many ownership tokens to create, between 1 and 10,000.  Ownership tokens will have voting rights over the DAO.  There will be 3 options, 1) hold all ownership tokens on the node, 2) distribute a specified number of tokens to each address listed by the administrator 3) hold a selected number of tokens on the node and distribute the rest to all addresses listed by the administrator in the amounts specified.

In the event that a large number of tokens will be distributed the ACC app should have the ability to accept a spreadsheet with all the addresses and amount of tokens they should receive, then format that data and enter it for the administrator to verify.

Nested DAOs

DAOs will have the ability to be nested.  So if XYZ Inc. has a subsidiary called XYZ Trucking, they would open the ACC app and under “DAO governance” select “nested DAO”.  From there they would input the data about the XYZ Trucking and register the name, this would proceed just like creating any other DAO with the 1 ACC cost and the XYZ Trucking DAO name and XYZTrucking.ACC domain would be registered.  All ownership tokens would be distributed at the time of confirmation based on the address(s) provided at the time of creation.

So when ZXY DAO creates the nested DAO XYZ Trucking DAO it would transfer the single ownership token created to the XYZ DAO.  Or let’s say they form XYZ Trucking in partnership with Thiotimoline LLC for 25% ownership of XYZ Trucking, so when the administer sets up the DAO he would create 4 ownership tokens, 3 would be sent to the XYZ DAO and one would be sent to the Thiotimoline DAO.

DAO templates

The ACC software should have built-in templates for creating a DAO.  These templates should cover large organizations, small organizations, sole proprietorships, households, and individuals.  Users would then select the template that corresponds to their needs and adjust the setting to meet their requirements.  There would also be an option for “build your own” where the user would build the DAO completely from scratch.

Syncing and Transferring

ACC nodes, both full nodes and lite nodes, will have a built-in syncing protocol.  Let’s say XYZ Inc. has multiple ACC servers but wants to only actively manage one.  Once all the servers have been synced with the ACC blockchain the administrator would go to the Sync & Transfer menu on their workstation app and click on “Create Sync”.  This would then bring up a menu that would ask for the remote server name, the administrator would then put in the name they have chosen and hit “OK”.  This would then create a cryptographically secure code that could then be shared via email or an instant messaging app with the administrator of the remote full node.

The remote administrator would then go to the Sync & Transfer menu and click “Upload Sync” where they would be prompted to input the code they had received.  Once the administrator clicks “OK” a secure tunnel will be created between the two nodes and the remote node will begin downloading all data from the main node and sharing all data.  Once the data has been fully synced the two nodes will remain connected and synced.  This can be done with up to 10 remote nodes for a total of 11 nodes actively synced.  Having nodes synced will allow for seamless backup in the case of a server crashing or being taken down for maintenance.

If more than one remote node is synced with the main node, the remote nodes will use the main node as an introducer to automatically create the same secure connections between each remote node.  In the event node is taken down when it is brought back online it will query the other connected nodes for their current data, update its data, and become in sync with the other nodes again.

Nodes will only be able to sync with the same type of nodes, this means that full nodes will only be able to sync with other full nodes and lite nodes will only be able to sync with other lite nodes.

ACC nodes, both full nodes and lite nodes, will also have the ability to transfer their data to a new server if needed.  Again the administrator will go to the Sync & Transfer menu but this time will select “Transfer Out”, this will create a downloadable file with all of the server’s data.  The administrator will then take that file to the new server and after opening the Sync & Transfer menu will select “Transfer In” where they will be prompted to upload the data file.  Once this file has been uploaded and the administrator confirms the new node is fully operational the old node should be shut down and taken offline.

Nodes can be upgraded and downgraded between full nodes and lite nodes.  Again under the Sync & Transfer menu, the administrator will select “Transfer Out” and then download the data file.  They will then move to the new server and select either “Upgrade Node” or “Downgrade Node” and upload the data file.  So if XYZ Inc. started with a lite node and then decided they needed the functionality of a full node they could easily upgrade to a new server with this process.  Note that once a node has been started its status as full or lite can not be changed and a new server will have to be used to change node status.

Unified Non-Fungible Tokens (U-NFT)

Unified Non-Fungible Tokens (U-NFT) would be built into the ACC code as a way to group multiple individual NFTs under one NFT.  U-NFTs would be used by carriers to group all NFTs on their shipping manifest.  So, for example, if a truck is carrying 20 pieces of freight it would have 20 separate NFTs but the carrier would associate all those NFTs under one U-NFT on their manifest.  So when a truck arrives at a hub or border crossing the dock worker or customs agent would just have to scan the manifest U-NFT and they would be given all the associated NFTs that are on the truck.

DeFi and Oracles

Decentralized Finance (DeFi) will be built into the code of ACC, nodes will be able to create DeFi apps by first creating a DAO to manage the DeFi app and then spending a second ACC coin to create the DeFi app.  DeFi apps will be where individuals and organizations will stake their Bitcoin (BTC) to provide liquidity for transactions.  DeFi apps will also hold funds in escrow when the smart contract calls for that service.  DeFi apps will have a set contact percentage set to pay for their services, so when a contact is fulfilled the DeFi app will move its percentage to its wallet and then distribute the remaining balance as per the contact.

In my previous post Providing credit to the Bitcoin economy through Credit Coin I outlined a similar ETH-based method of providing credit to the Bitcoin economy through DeFi apps.  Credit Coin (CRED) could be built into the ACC protocol.  This would allow for seamless integration and use of CRED within the ACC network and allow DeFi apps to natively use the CRED system to provide added liquidity.

Oracles will also be run by DAOs and will require 1 ACC to set up.  Oracles will also take a small percentage of a smart contact.  They will list the percentage for each service, either a flat rate or per source, and the services it provides.  Oracle can be narrowly focused or widely focused, but the more services an oracle provides the more costly it will be to operate and therefore will require higher fees.

DAOs can operate both DeFi apps and oracles on the same node.  This would offer a simplified contract and the DAO could offer a discount to its customers if they use the DAO’s DeFi app and Oracle in their smart contract.

Let’s look at an example of how this would work.

Aluminite LLC needs a new turbo encbulator, so they contact Rockwell Retro Inc. and purchase the newest model.  At checkout, Rockwell Retro’s payment system connects to the ACC network and creates a smart contract through their connected DeFi app, this contract is then shown to Aluminite LLC who accepts it and issues the BTC or CRED to cover the purchase and shipping cost.

Rockwell Retro then contacts XYZ Inc. to arrange for delivery, XYZ Inc. creates a smart contract with Rockwell Retro that links to the contract between Rockwell Retro and Aluminite LLC.  Rockwell Retro agrees to the contract and submits its own BTC or CRED for payment.

XYZ Inc. then picks up the turbo encabulator from Rockwell Retro and two days later delivers it to Aluminite LLC.  When the driver delivers the turbo encabulator he scans the NFT QR code and selects “delivered”, at the same time the shipper manager for Aluminite LLC also scans the NFT QR code and selects “received”.

Now these status changes are transmitted to the DeFi apps and they release the funds according to the contract stipulations and transfer ownership of the NFT for the turbo encabulaator to Aluminite LLC.  Meanwhile, in the background, the oracles are reading the DeFi app’s data and broadcasting it to the other DeFi apps in the contract chain allowing all funds to be released and the contract to be closed.

The Marketplace

DeFi app can also offer access to the Marketplace, the marketplace will be where nodes with excess ACC can list their excess coins for sale.  The ACC code will set a hard-coded price of 1 dollar and the equivalent in the node’s home country, payable in BTC.  Each DeFi app will be able to select its service fee as a percentage of the total amount in BTC.

The marketplace will be accessed through the node’s connected app, there the user will input the amount of ACC they want to buy and then select the service fee percentage they are willing to pay.  Once the user finds the amount they require at a service fee they are happy with, they will select “buy now” and the DeFi app will present the user with a Bitcoin request with the fee added in.  The user will submit payment to the Bitcoin address, the ACC will be transferred to the user’s node, the DeFi app will transfer its percentage to its wallet, and the remaining balance will be sent to the seller’s wallet.

Any ACC locked in the Marketplace will still have its 30 TTL enforced.  At the end of the 30 days, the ACC will be delisted and burned as it would be as if it was sitting unused on the node.  TTLs will be listed along with the amount offered, and service fee.  This way if a user needs ACC in 3 days but the TTL on the ACC they want to buy expires in 2 days, the user will know not to buy that ACC and can look for ACC with a longer TTL.

Inventory management

Businesses can also use ACC to track inventory and track sales.  After syncing their node they would set up a DAO and make all the associations with their staff just like any other node.

When a store receives a shipment of goods, workers would use mobile nodes tied to the company’s node to scan items and add the NFTs to their list of in-stock inventory.  Then when a customer buys a product the DeFi app used for payment would transfer ownership of the NFT to the buyers once payment has been received.

Household and Personal use

Households and individuals could run a lite node and scan all their belongings into their node with the mobile node tied to their lite node.  Then as they buy new products the seller would transfer the NFT to the buyer and it would be added to their DAO’s NFT catalog.  Households and individuals would also create a DAO on their node, then associate each member of the household with the DAO.

Conclusion

Asset Contol Coin (ACC) has the potential to be industry and world-changing.  It will take time, money, and effort to develop the code and educate users, but if the industry supports the development of ACC and works to integrate ACC into their systems, ACC could become a worldwide standard for asset tracking, not just in the cargo industry, but in every suspect of life.

Here is the link to the Github project page: Asset-Control-Coin-ACC-

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