Sola Whitepaper V1 en
Sola Whitepaper V1 en
Sola Whitepaper V1 en
October, 2017
Table Of Contents
Architecture Layer 24
Why decentralize? 24
Decentralized Media Storage 25
Distributed Immutable Service (Nodes) 26
Moderation and Censorship 27
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Summary
Sola is an open ecosystem, which means that most of its source code will be
made open source and available for audit, improvement and usage by anyone.
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Background
The most criticized aspect of centralized social networks is the way they
handle user data and privacy. This is unlikely to come as a surprise, given
that almost 100 percent revenue of social networks comes from displaying
ads to their users based on the user data.
We consider this as a symptom and not the root cause. The root cause it that
networks are reluctant to see their largest and most important audience,
users, as their full partners. We think that users shall have the right to
benefit from the networks, as do advertisers and network owners.
There have been a number of attempts (and they are not ceasing) to build
an open sourced or a decentralized social network that pushes the concept
and the business model of social media beyond the existing incumbents. It
is worth mentioning app.net (paid open source Twitter rip-off) and Diaspora
(distributed rudimentary Facebook clone). The most notable contenders
today are Akasha (decentralized rudimentary Facebook rip-off) and Steemit
(Reddit clone powered by cryptocurrency).
There are two examples that fit into our defined criteria that a next-
generation social media contender should meet — Status and Kin. However,
both of them use a messenger form factor, while we at Sola use a modified
social network approach.
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We think that the social network approach is more likely to succeed than the
messenger approach, as public communications are easier to monetize than
private communications. Furthermore, it requires a lesser user base in order
to become valuable, and the value of a social network grows faster than the
value of a messenger.
Ilya and Pavel, Sola’s co-founders, have been working together since
2011 when they established a new venture for innovative social products
development. The first project of a photo-based social network We Heart Pics
lost to Instagram and was shut down despite its 3M users. The next project
was Plague, a social experiment that was started to find out if people were
ready to communicate and collaborate with strangers in a constructive and
respectful way. It has been running for almost 3 years, and now it is ready to
come out of its infancy phase with a 650K user base.
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Social Information Network
There are two general types of social media — messengers and social networks.
Messengers are private networks as they are mostly used for private
communications and their content is private by default. Private
communications are not considered in this paper.
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Economy Layer
Attention has its price
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SOL Token
SOL is a pure utility token and the only currency used for transactions on
the Sola platform:
• Possession of a token has no benefits other than monetary;
• Sola ecosystem exclusively uses SOL for transactions;
• Revenue in other currencies is converted into
SOL through crypto exchanges;
• Users’ and developers’ earnings and rewards are provided in SOL;
• Third-party services built on the Sola platform should use SOL;
• Purchasing of additional services on Sola app (cards exposed
to more users, action points, ad-free experience).
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Our idea is simple: in the current state of the crypto market it is still possible
to make money out of thin air for a while using speculative approach to
ensure token value, but it cannot serve as a long-term sustainable business
model. The bubble will pop someday. To cover our expenses and fulfill our
obligations to customers, partners and employees we have to earn money.
In contrast to the critics of centralized social networks, we do not think
advertising business model is “broken”. It is unequal to the user and it can be
significantly improved with the implementation of a crypto economy, but it
is definitely not broken.
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Revenue streams
Stack and card format makes Sola app a perfect fit for native advertising. The
frequency of ads displayed will be defined by tests. At the moment we consider
that user will not see more than 2–3 ad cards per day, which is much less than
what other social media can suggest. What makes Sola platform unique is the
fact that users will be interested in boosting advertising on the network, as
this has an effect on their potential earnings and the value of SOL.
ARPU,
Stage functionality
USD est.
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The platform suggests an opportunity to create third-party services using
Sola developments, infrastructure and audience. It might as well be existing
business integration like an online shop or a brand new service. Partners
shall use SOL for the transactions within such services with the platform
holding its fee.
Sola app provides a range of paid services including an ad-free version and
Action Points purchase.
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Content Layer
Stacks and Cards
Cards can consist from one to several “pages” allowing the users to portray
large amount of information.
Ubiquitous Cardification
We think that any content can be presented as cards. We were the first to use the
unified card format when the project was launched in 2014. We are happy to see
that other social services are beginning to grasp its value from the point of user
experience as well as good monetization opportunity — Instagram stories for
photos, Twitter Moments for short form content, Medium Series for longreads, etc.
Over these three years we have conducted a series of experiments and have
gathered a significant amount of data which helped us understand the way
the format is used and the way it can be simplified. The latter is critical for
consumer services. ML (Machine Learning) and NLP (Natural Language
Processing) give us an opportunity to automate raw content to cards
conversion in part or in whole. We call this process cardification.
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Basic cardification is used to convert links and standardized data from third
party services. When you add a link, a card with the link and the title is created
where all relevant source media-elements are stored allowing user to decorate
their card. Third party service data is formatted and cleared of all excessive
meta-data (YouTube videos, Instagram photos, Facebook posts, tweets etc).
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Assisted cardification is the result of AI Summarize work, an algorithm
that we have developed, which is best for medium and large amounts of text
data processing (articles, longreads, etc.). Based on the explicit indication
from user AI Summarize performs the semantic parsing of the source data
and finds the parts which are essential to get the gist of the text. The result
of this processing is ten or less cards containing the most important ideas
of the source text with the least possible loss of useful information. The
algorithm currently supports nine languages: English, French, German,
Italian, Spanish, Czech, Dutch, Turkish and Swedish.
These data types can be used in any combination. Card templates are
automatically selected as new content is added to achieve the most attractive
presentation. For example, the font size is automatically reduced as more text
or a media element is added to the card.
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A card can consist of several pages containing any data in any combination.
The core team has developed various templates which should cover basic user
needs.
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Custom Card Templates
3rd party developer’s custom card types
Access to the content layer is fully open to third party developers (paperwork
is under development). This means that the platform allows creation and
adjustment of card templates to fit the needs of a particular user and will be
automatically available for all users.
Templates are generic and can be used by anyone and are not limited to the
author.
EXAMPLE 1:
AMAZON’S PRODUCT PAGE
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EXAMPLE 2:
NEW YORK TIMES ARTICLE
Now the reader can skim-read the essential points of the chosen article using
the cards and there is no need to read through the whole text. If the reader
finds the content of the cards particularly interesting then they can follow
the link to the source article and read it more carefully.
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EXAMPLE 3:
APP PAGE IN APP STORE
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Advanced Card Templates
Core platform functionality + 3rd party development
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EXAMPLE 3: SHOPPING CARD WITH EXAMPLE 4: PAID APP INSTALLS
ABILITY TO PAY IN SOL AND PAY-PER-ENGAGEMENT MODEL
Third party developers will take part in this phase. They will obtain a part
of revenue from these formats commercial use. A number of opportunities
will be open to use within basic and custom templates once support at the
platform level is on.
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Distribution Layer
Incoherence Principle
At the time of writing, users are testing the algorithm while fine-tuning with
priority filters that are aimed at certain users.
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Neutral AI
Some time ago we started working on the new spread algorithm which uses
neural networks based on deep learning. The end result we are planning to
achieve is called Neutral AI. Its task is to select knowledge domains in the
whole amount of data, understand the structure of the certain knowledge
domain and either reject useless information or suggest the widest possible
range of opinions in this domain depending on the certain knowledge
domain and the set rules.
EXAMPLE 1: EXAMPLE 2:
INFORMATION REJECTION A RANGE OF OPINIONS
Neutral AI logic and code will be documented. It will be open for review
and suggestions for everyone, so that any prejudice and concern about the
algorithm neutrality can be eliminated.
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Collective Machine Learning
The users taking part in the Neutral AI learning program will receive
a certain percentage of all operations within the involved knowledge
domain, corresponding to their contribution to the learning process. We
expect that this will allow us to engage a significant part of the platform
audience into the learning program.
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Architecture Layer
Why decentralize?
All social services that we use are centralized and controlled by a small
group of people which makes them consequently and potentially impartial.
At the same time democratic principles make it inevitable that sooner or
later an independent social service will be created. Moreover, such attempts
are regularly taken (see more detailed info).
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We are carrying out transfer from the current centralized model to the
decentralized and distributed architecture step by step.
Stage 1 — token issue: which leads to creation and
start of the economic development;
Stage 2 — operations decentralization on blockchain;
Stage 3 — media-data handling decentralization;
Stage 4 — providing distributed operations via nodes.
Media data (pictures, video, other card data) can be preliminarily stored via
IPFS, which will allow content to be available anywhere.
IPFS is a good solution for fail-safe systems. The key risk is a relatively low
access speed which will significantly affect user experience and can appear
not to be enough for the highload consumer service.
For quick access to post media and data content available via IPFS, the CDN
server can be used. This could cut data receipt time dramatically.
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main node country nodes
Country nodes shall be used to build a distributed service. Any user after
the installation of the special software will be able to become a node for the
platform and use excessive power of their PC to provide for its performance,
servicing users located nearest in their country. As a reward, such user will
get a certain percentage of all transactions with SOL within their node.
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Moderation and Censorship
Our more than 10 years of experience in the social services domain has
shown us that there is no way they can exist without moderation. An
importance of centralized moderation is best shown by the examples of
Facebook and Twitter. Moderation is one of the forms of censorship and
claims of some services that they have no censorship are either evidence of
a populist statement, or of complete ignorance about the basic principles of
social media.
Our view is that ensuring comfortable and safe environment for public
communication should be one of the priorities for the social service even if it
involves certain unpopular decisions.
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Joint Development
Open for a Purpose
Social services market is one of the most competitive ones. The latest major
players, Instagram (2010) and Snapchat (2011), were founded more than
6 years ago, making use of mass user migration from PCs to smartphones —
a window of opportunities missed by the largest market players.
It is hard to fight for users and talents with the existing services that have
many users and resources. It is not enough to produce a free product equal in
quality and user experience.
One can attract allies by providing them with two kinds of motivation —
financial and ideological, and they go together.
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User Layer
Developer Layer
API documented in detail is the the first major milestone after the launch
of the service. Gradually, most of the existing code will be documented and
open sourced.
Third party developers are also provided with the following three main
profit-making scenarios:
• Content Layer (see more in Custom card templates and Advanced card
templates) and Distribution Layer (see more in Neutral AI) development;
• Core platform and Core App improvement via
Bounty Development Program;
• Own services development based on Sola capabilities
and infrastructure (see more in the next section).
During the first quarter of 2018 we are planning to launch the Bounty
Development Program which will enable the Core Dev Team to act as
a customer and outsource some of the tasks to the experts that are
unavailable or impractical to be hired as permanent team members.
Besides, the program will allow the engaged users to build teams enabling
them to make joint requests for development supported by financial
obligations.
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EXAMPLE 1: CORE TEAM EXAMPLE 2: USER SPONSORED
SPONSORED DEVELOPMENT DEVELOPMENT
Core team wants to make the Some users think that the service
process of setting up and running has to have an Instagram-like
a decentralized node as smooth pinch zoom function. Core
as possible, but the design unit development team does not
is overloaded. Thus, a bounty for consider this request as their
an improved interface is declared first priority and it goes to the
for node installer and client. This Bounty Development Program
decision is made after taking a vote where the users who want this
of existing node holders. function to be included fund
SOL to the request deposit for its
implementation. While the amount
of reward is growing some third
party developer solves this task
and once the code is approved, it
is implemented into the platform
and the reward is released to the
developer’s account.
Being the Core Dev Team, we are focused entirely on platform development
opportunities and the increase of its audience. However, we are completely
aware of the fact that both users and advertisers are interested in
communication as well as making profit.
Open Social Layer concept intends that we grant third parties free and
unrestricted access to the users (the right to address the users, not the right
to deal with their personal data) and the platform infrastructure to create
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own services. The key points here are platform reputation and trust and we
are able to provide all necessary elements to build quality relationships:
• Open source code;
• Public API;
• Universal payment layer based on cryptocurrency.
Our own Sola app is the first service built on the platform and its purpose
is to demonstrate platform abilities, attract interest and audience to the
platform.
The only condition to use the platform is an obligation to utilize SOL tokens
as a means of payment. It does not mean that the platform is unable to work
with other crypto and fiat currencies. However, it means that once received,
they are to be converted to SOL. When a withdrawal for SOL is made, it can
be converted into any other currency at the discretion of the service.
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Sola App
Sola app is an evolution of this service and has inherited its data, audience,
interface and logic which are expanded and upgraded with the Sola platform
resources.
The app is quite simple and crystal clear from the user experience point of
view. Instead of traditional feeds, Sola uses a stack of cards. So, the user
always sees only one card on the screen and is able to switch to the next only
after making their decision on the current card. Gesture-based Tinder-like
interface is used to switch between cards. Every card can either be ignored or
“endorsed” which helps it spread across the network.
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Every user receives their daily allowance of internal virtual currency —
Action Points (basic + variable amount depending on user’s positive
activities). Action points can be spent on user’s own created content
(comments, cards) as well as other users’ content endorsement. When Action
Points are transferred to another user, they are converted into the universal
cryptocurrency — SOL.
In other words, Action Points have no value before they are transferred to
another user as endorsement of created content. To gain the benefit from
the service it is necessary to produce content (cards and comments). Action
Points naturally restrict user’s opportunities and rationalize their behavior.
* As of September, 1, 2017.
Mobile apps are available for download on App Store and Google Play.
Web version of the app is being updated to Sola and will become available in
November, 2017.
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User Acquisition
Content Creators and their Audience
Content creators are both the key asset of a social network and one of the
drivers of its development. Sola allows content creators to get direct financial
benefit — money reward, which stimulates acquisition of quality content
creators.
Our aim is to create the most favorable conditions for the largest possible
content creator audience, so that content creators are motivated to create
quality content on our platform which are:
• There is no entrance threshold. You can make money from the start. The
cryptocurrency payment layer allows us to implement both automated
and financially effective logic for paying any amount of reward;
• There is no need to make new connections first, as there is
no such notion — our spread algorithm will take care of that
while assisting the user to utilize the existing audience;
• There is no need to become a “pro” creator to monetize your
content. Any comment or card allow users to make profit.
Many people have large audiences on those services where they are
registered and which they use to spread their content — social networks,
blogs, etc. A lot of these users have thousands and thousands of followers,
but they lack direct monetization tools with the exception of contextual
advertising or direct relationships with advertisers. However, there are no
other direct monetization tools for small and medium “pro” creators, not to
mention regular users.
Amongst other things, the above mentioned creators can also be highly,
financially motivated to use Sola and to attract their followers onto the
platform explicitly or implicitly, benefiting both from the content they create
as well as referral programs.
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Automated Referral Program
As part of this program Sola’s current users are rewarded for attracting new
users who follow their links to the content and the service itself.
A member who is attracts new users receives Action Points for each visit
made by these new users. More Action Points are awarded if the new users
register on the platform. In addition to this, the member of the program
receives a certain percentage of SOL earned by the new user for some time
period.
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Token Sale
SOL tokens are issued and put into circulation for Sola’s platform launch
and functioning. SOL tokens are the only currency which is used for mutual
payments among platform users. Part of these tokens will be sold to the
current and future users during Token Sale. The received funds will be used
for the platform development.
Token sale will last from November, 27 to December, 22 2017. The bonus
scheme will be announced on https://sola.foundation later.
Because of the hard cap, not all tokens will be sold. The rest of the tokens will be kept in an
Sola Fund address and be vested for 36 months with a 6 months cliff.
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During the first 365 days after the end of the token sale. 18% of the issued
tokens will be evenly transferred to the user allocation fund to be used
for rewards for the created content and as a means of financial support on
platform at the stage of ad and other revenue streams development.
10% of the issued tokens will be reserved for the core dev team with a
1-year lock, they are to be used for the incentive plan aimed at bringing and
keeping highly qualified experts.
2% will be transferred to the user allocation fund for rewards already accrued
to the Sola App users from App’s launch till the end of Token Sale.
All funds raised during the token sale will be used for platform development
as per the following ratio:
Since 2014, the project has been under development using proprietary funds
and funds raised from venture capital investments. As of now, we have a run
rate of about $1M per year. Additional funding will enable us to accelerate
the product development. Besides this, it will give a spur to the development
of the ecosystem and growth of the user base.
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The table below outlines the development progress for each layer.
Engineering
Economy layer
Third-party advertising
Connector platform
Revenue network + ads free Direct advertising
enables “pay per engage-
streams premium accounts. Ad self-service platform
ment model”
hoc special projects
Projected
0.3–0.7 0.8–1.2 1.2–2+
APRU, $
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Timeline
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Team
Our core team has ten people. Seven of these are highly qualified engineers
(as of 1st September, 2017). Most of our team has been working together
since 2011, when the company was founded to work with innovative social
services. Our headquarters is in Vilnius, Lithuania. We are annually
audited by KPMG.
ILYA ZUDIN
CEO, co-founder
PAVEL PANOV
CTO, co-founder
MAXIM BELOV
CFO
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VASILY OLEG
ZUBAREV MYKHAILENKO
Architect Full-stack Engineer
SERGEI ALEXANDER
VASILENKO SHIBELEV
Software Engineer Software Engineer
SERGEY DMITRY
DEVYATKIN LYAPUSTIN
Software Engineer Product Designer
Сertified SCRUM practitioner, iOS adept 10+ years of graphic UI/UX design
and a tech lover. Participated in more experience. In recent years Dmitry has
than 12 successful B2B and B2C projects. been focused on Interaction design.
GitHub LinkedIn
ELENA
ARKHIPOVA
Marketing Manager
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Advisors and Partners
IGOR MATSANYUK
Early investor
GREGORY FINGER
Early investor
RONNY BOESING
Advisor
OPENLEDGER
Partner
LAW&TRUST INTERNATIONAL
Partner
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Disclaimer
All materials, such as SOLA White Paper, Business Plan, Development Road
Map, etc., published on the Website or elsewhere, are not binding and do
not — unless explicitly referred to herein — form a part of Terms, and are of
descriptive nature only.
Information presented in this White Paper can be incomplete and does not
contain any part of a contractual agreement. This White Paper does not
contain any investment, legal, tax, regulatory, financial, accounting or any
other type of recommendations, and this White Paper is not to be used as the
only accurate basis for transaction assessment when procuring SOL tokens.
Before SOL token procurement, the potential buyer shall consult their legal,
investment, tax, accounting and other advisors to define potential benefits,
barriers and other consequences of such transactions. Nothing in this White
Paper can be considered as request for investment, or proposal to procure
any securities under any jurisdiction.
This document is not written in accordance with the laws or rules of any
jurisdiction, and it does not fall under any jurisdiction which prohibits
or in any way restricts cryptocurrency transactions. Some statements,
assessments and financial information in this White Paper contain
predictions, not facts. Such statements and information are subject to
unknown risks and uncertainties. Should these risks or uncertainties
materialize, the actual events or results may vary significantly from
assessments contained in this document.
SOL tokens are neither proposed nor distributed, and they cannot be resold
or in any other way disposed of by their owners to the citizens, physical
and legal entities located or registered (i) in the United States of America
(all states and Columbia district included), Puerto Rico, United States
Virgin Islands, or any other territories of the United States of America, or
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(ii) in a country or a territory where transactions with cryptocurrencies are
prohibited or in any way restricted. In case such if an entity has procured
SOL tokens, its actions will be regarded as illegal, unauthorized and
fraudulent, which will entail adverse effect.
The Company neither proposes nor distributes SOL tokens, nor has any
business within regulated operations in Singapore or other countries and
territories where transactions with or related to digital tokens are subject
to prohibitive measures and require from the Company to be registered and
licensed in all necessary governmental bodies. We remind every SOL token
potential buyer that this White Paper is presented on grounds that the
reader is the entity to which attention this document can be legally brought
as per the jurisdiction the abovementioned entity is subject to.
Each SOL token potential buyer’s responsibility is to define if the buyer can
legally procure SOL tokens under their own jurisdiction, and if the buyer
can trade SOL tokens to the other buyer falling under another jurisdiction.
This technical document written in the English language is the only official
information source about the SOL project. Information contained here might
be translated into other languages from time to time. In the course of such
translation parts of the information presented here might be lost, damaged
or misrepresented. The accuracy of such alternative information cannot be
guaranteed. In case of any conflicts or differences between this document
and such translations, preference is assigned to the English version of the
official document.
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