CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

Cryptyk Inc. is building the CRYPTYK platform as a complete cloud security and storage solution for commercial organizations and enterprises. CRYPTYK adopts a "hybrid blockchain" design consisting of two complementary decentralized platforms:

1. VAULT is a distributed multi-cloud storage platform for encrypted file management and sharing.

2. SENTRY is a distributed blockchain platform for tracking and auditing all user access and file sharing events.

CRYPTYK security and storage platform is a single supplier solution for all commercial organizations, enterprises and even individual consumers. Its hybrid structure greatly reduces the potential attack surface and continuous operating costs. The platform provides extensive network security protection against the five major threats faced by cloud technology (ie, external, internal, virus, operational, and surveillance threats); in addition, the platform product suite also provides cloud storage services.

1. VAULT-distributed multi-cloud storage

VAULT represents a paradigm shift in network security and cloud storage. It does not attempt to prevent the occurrence of network security breaches, but assumes that security breaches will inevitably continue to occur frequently. This seemingly easy-to-attack multi-cloud storage platform passively ensures that any stolen data is useless to external hackers, while also preventing virus and malware operations.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

Each file is first encrypted and then divided into 5 different parts or fragments. Then the file fragments were encrypted again and stored on 5 third-party cloud storage providers (such as Amazon, Google Drive, Box, etc.). The encryption algorithm also determines the storage format that ensures the redundancy of storage nodes and the reliability of all-weather operations. Each file is stored in a granular, distributed format on five independent cloud storage providers. Each file uses 6 keys. The important thing is that all keys are only stored in the user's personal device and offline backup system. The cloud does not store any keys.

Even if data can be successfully copied and decrypted, this encrypted, distributed cloud storage design can be passively protected from large-scale external attacks against cloud storage providers. Even if viruses and malware can be uploaded, distributed storage can make them unable to execute. Even if data can be successfully copied and decrypted, this encrypted, decentralized cloud storage design can passively avoid large-scale external attacks on cloud storage providers. Even if the upload is successful, the distribution of files can also prevent the execution of viruses and malware. The built-in redundancy of storage nodes also means operational failures and for cloud providers.

DDoS attacks will not affect the platform. Therefore, the VAULT storage format has passive immunity to three of the five major network security threats (ie, external, virus, and operational threats). The SENTRY blockchain platform can well solve the remaining threats posed by disloyal insiders and surveillance of individual users.

2.SENTRY-distributed blockchain audit

SENTRY is a unique and powerful method of providing network security protection, capable of resisting internal threats and monitoring or intercepting threats. It takes advantage of the immutability of the blockchain network to provide a permanent auditable record of all user access, file sharing and communication events. It also creates an evolving network security ecosystem that provides incentives for customer adoption, open source development, economic participation, or crypto investment.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

The services provided by the SENTRY private permission blockchain engine are not limited to monitoring user access and tracking all file sharing activities. It also provides encrypted communication for email and chat. It provides network administrators with offline key backup, digital leakage protection, threat analysis, data area limitation, and user isolation. It provides enterprise-level, group-level, user-level and file-level security authority management. Most importantly, it provides an open source security and storage platform that can be integrated into third-party software products for security solutions for the entire industry. The independent encryption economy driven by the SENTRY blockchain network aims to incentivize third-party developers and software vendors to build API and plug-in integrations, thereby gradually expanding the application range and functions of the product. The design also encourages customers to try out the platform, accumulate cryptocurrency, and achieve significant cost savings through long-term, revenue-driven currency growth.

The combination of SENTRY and VAULT storage platform forms a complete hybrid blockchain solution that provides efficient and cost-effective protection against all five major security threats facing online data. The CRYPTYK hybrid blockchain platform is a complete set of security and storage products. It is also a network security community with rich incentives, and it can also stimulate the cryptocurrency economy adopted by viral networks.

3. Advantages of hybrid blockchain technology

Complete solution

CRYPTYK is the first complete enterprise-level security solution that includes cloud storage and extensive security protection. It can resist external, internal, virus, surveillance, and operational threats. Now, companies no longer need cumbersome, piecemeal, and multi-supplier solutions. A simple and complete solution from a single supplier can meet all the needs of the enterprise.

Efficient

Compared with centralized storage systems, distributed platforms based only on blockchain-based file storage (such as Sia, Storj, and Filecoin) usually expose only 1% of the potential attack surface to hackers. However, the hybrid blockchain has two distributed loops, which reduces the attack surface to a minimum, even less than 1% of a blockchain-based network, and less than 0.01% of a traditional centralized network.

Cost-effective

Compared with the existing, patchwork, and multi-supplier combination solutions, this single-supplier, multi-functional security and storage solution has a huge cost advantage. The cost of the CRYPTYK solution is generally lower than half of the cost of an equivalent multi-product solution provided by a combination of 2 to 4 suppliers. Moreover, corporate customers can accumulate cryptocurrency assets for future product purchases, directly pushing up the currency value of Cryptyk's digital economy, thereby saving more of their own costs.

Short waiting time

The biggest disadvantage of all blockchain-based file storage platforms (such as Sia, Filecoin, and Storj) is that their access waiting time is very long. No one wants to wait 30-60 seconds to start uploading a small file. Therefore, blockchain file storage systems are not suitable for real-time editing or real-time enterprise applications. They can only be used for secondary backup of large-scale batch file content The access waiting time of CRYPTYK hybrid technology is less than 200 milliseconds, which is equivalent to the waiting time of traditional cloud storage, and can support real-time applications.

4.Cryptyk token (CTK) economy

The CRYPTYK security engine drives the cryptocurrency economy of Cryptyk token (CTK). The private permission blockchain design is an efficient and cost-effective method to resist internal and surveillance security threats. In addition, the distributed blockchain platform and the distributed multi-cloud storage platform have good synergy. The two distribution rings for file storage and user access security greatly reduce the potential attack surface of the platform as a whole. Ultimately, the immutability of the blockchain ledger means that user verification, document tracking, and security audit functions are the main uses of CTK tokens. In addition to these basic uses, the relevant CTK economy driven by the blockchain security engine has four additional auxiliary functions and participant benefits.

Virus network effect

Cryptyk mainly focuses on the financial, legal, banking, accounting and insurance markets, which means that there is a significant overlap between our corporate customer base and the token sale investor base. The combination of targeted CTK token sales activities and viral file sharing between users has produced three powerful network growth effects, namely: (1) transforming customers into investors; (2) transforming investors For customers; (3) To transform customers' customers (eg, individual consumers) into our customers.

Community development

The Cryptyk token sales structure encourages the participation of corporate customers and third-party developers. One third of all CTK tokens will be managed by the non-profit Cryptyk Foundation entity. The foundation will issue CTK to customers to participate in product trials, and issue CTK to open source developers to build plug-ins to integrate with enterprise software. This ensures that all CTK participants can have a healthy, prosperous and growing community.

product development

Of all CTK created through token sales activities, one-third will be distributed to participating investors through a round of private pre-sale and a round of global public sales. Funds raised in U.S. dollars, Bitcoin and Ethereum will be used by Cryptyk Inc. for product development and sales. To deliver the minimum viable product (hosted on AWS), at least US$3 million (minimum raised amount) is required. Delivering the ideal version (internal hosting) of the CRYPTYK product requires no more than $25 million in funding. Therefore, sales are capped at 250 million tokens, because product development will no longer require more funds.

Long-term value

The basic use of CTK tokens is the main driving force for its long-term growth. The more security and storage services Ctyptyk Inc. sells to corporate customers, the greater the demand for CTK relative to the supply. Utility tokens driven by revenue have stronger and more direct growth potential than securities, because securities usually reflect market sentiment regarding the company's profitability. Therefore, regardless of the sentiment of the speculative market, the value of CTK will directly increase with the growth of income for a long time.

5.Cryptyk Foundation and the global community

The Cryptyk global community is an important part of the CTK ecosystem and economy. To develop into a widely used open source platform, permissioned blockchain technology must correctly incentivize customers and developers to use its cryptocurrency. Therefore, of all CTK tokens created (ie 250 million CTK), one-third will be managed by the non-profit Cryptyk Foundation to incentivize customers and developers to participate in the CTK economy.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

The main function of the Cryptyk Foundation is to develop the Cryptyk community on a global scale, and regularly organize member activities to promote the CRYPTYK open source platform to customers and developers.

Cryptyk Inc. is headquartered in San Francisco, USA, while the non-profit Cryptyk Foundation will be headquartered in Adelaide, Australia. This layout reflects Cryptyk's pan-Pacific history, as half of its founding team members are from Adelaide. For cryptocurrency entities, it has a unique advantage to allow Australia instead of the general European region as a global community base. Australia's regulatory environment supports the development of practical cryptocurrencies. It has a large, stable and transparent financial services and banking industry. Moreover, Australia has great potential to develop the cryptocurrency community, and there is huge space to acquire large corporate customers. In addition, it is close to Asia and can easily enter the world's fastest-growing corporate security and cryptocurrency market. In addition, by the end of 2018, the Cryptyk Foundation will also develop a truly global community with plans to open additional offices in Zug, Switzerland and New York, USA.

Customer members of the Cryptyk Foundation will receive free CTK to try out the CRYPTYK platform. They will also receive additional incentives and accumulate CTK to purchase security and storage services in the future. Developers of the Cryptyk Foundation will get an attractive software development contract (paid with CTK) to develop APIs and plug-ins for integration with third-party enterprise software platforms (using the Cryptyk software developer toolbox). The foundation will also use CTK to initiate new research and development projects in collaboration with the CRYPTYK platform. Fundamentally, the foundation will effectively manage the speed at which the new CTK enters the economic system by implementing incentive measures for customers and developers. In this way, the foundation can manage the liquidity of the CTK economy and minimize short-term fluctuations caused by opportunists or speculative investors.

6. The economic benefits of token utility

Without actual product functions, security-based cryptocurrencies or digital tokens are usually structured as equity-based asset classes (similar to company shares). The value of security tokens in public encrypted exchanges should ideally reflect the value of the company's performance, which depends on the company's profitability or earnings. Revenue equals product revenue minus product costs and operating costs. However, there is no direct relationship between profitability and token value, so company announcements must affect market sentiment. In addition, positive returns usually appear 9 to 18 months after the start of product revenue, and their growth rate is generally lower than the rate of revenue growth. Fundamentally, securities are completely dependent on the accuracy of market sentiment to reflect the company's earnings, and are vulnerable to market manipulation. As a result, many securities-based cryptocurrencies experience high price fluctuations that cannot be controlled by companies or regulators.

On the contrary, the high product function of utility tokens is a key factor driving its long-term value growth. Purchasing utility tokens is equivalent to investing in products or commodities, rather than investing in company equity. Therefore, the success of utility tokens directly depends on the success of the product, rather than the profitability of the company or market sentiment. The value of utility tokens is directly proportional to customer needs and transaction volume. This direct relationship is the inherent behavior of all utility tokens, products, and even many legal currencies. On the CRYPTYK platform, the purchase of security and storage products by customers directly drives the relationship between CTK demand and available supply.

Crucial to Cryptyk's business model is that all prices in legal tender (for example, US dollars, Euros) are unchanged, but prices in CTK are different from time to time. Use legal currency to pay cloud providers (that is, third-party cloud storage providers), and profits are retained in CTK digital currency. Customers can purchase products in US dollars, and these US dollars will be converted into CTK at the current exchange rate, increasing the demand for the CTK market. Or, customers can accumulate CTK and purchase several years of security and storage services in advance. According to the forecast model of CTK value growth with product revenue growth, for customers, only one year in advance of buying CTK may be enough to pay for cloud security and storage services for five years. For very large corporate customers, this is almost a self-fulfilling prophecy. The customer's own pre-purchase has brought huge demand to the CTK market, pushing up the price of CTK, and thus saving a lot of purchase costs.

Market sentiment may affect CTK's price in the short term, because market volatility and price growth depend on the overall liquidity of the market. The market liquidity is actually equivalent to the number of tokens that can be bought and sold naturally in the cryptocurrency market exchange before the price rises or falls. The stronger the market liquidity and the lower the volatility, the less likely it is to be affected by investor sentiment or manipulation. The Cryptyk Foundation can increase market liquidity by issuing tokens to customers and developers. Regardless of market liquidity, the value of CTK will increase in the long term due to the network participation of corporate customers, regardless of short-term market sentiment.

The structure of the CTK economy makes the impact of product availability and customer participation on the value of CTK more important than speculative market effects. Therefore, investing in CTK utility tokens can enjoy more stable long-term growth, smaller price fluctuations and more immediate returns on investment. This applies not only to customers of the CRYPTYK platform, but also to participants in CTK token sales activities. Since our clients focus on the finance, banking, legal and investment industries, there is a great overlap between potential clients and investors. This will have a viral network effect of mutual influence. The best way to create a community of solidarity is to make your customers want to be your investors.

7. Regulatory evaluation of CTK practicality

Qualified legal advisors have conducted a complete and detailed legal assessment of the practicality of the CRYPTYK platform and CTK token economy. Among them, the comprehensive regulatory assessment of CTK tokens has been identified as utility or securities tokens in many international regions. Due to regulatory evaluation, the CTK token sale is divided into two separate sales rounds (pre-sale and public sale).

Cryptyk business model

1. Product suite and customer adoption

Cryptyk is building the CRYPTYK platform, a complete enterprise-level cloud security and storage solution for large enterprises, small and medium-sized business organizations (SMB), and even individual public consumers. This complete market approach provides three different VAULT and SENTRY product packages for different customer groups, which are delivered in a "software as a service" approach.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

All users can use the basic "Litce' version for free. The version includes 1GB of secure cloud storage. This free VAULT storage account is passively immune to external, virus and operational threats. When VAULT users share files with any individual, Individuals who accept the sharing will also get a free 1GB VAUIT account. Users can also choose to upgrade to the paid "Pro" version, which includes the SENTRY blockchain security platform, and 500GB of VAULT storage capacity. This professional product package has advanced security features such as file-level access permissions, API integration, and encrypted email and chat. The price of the Pro software package is about $15 per user per month, which is very suitable for professional users and small and medium-sized commercial organizations with less than 100 users.

The most important of all products is the fully functional "Enterprise" version. It combines VAULT and SENTRY PLUS product packages, and is priced at approximately $30 per user per month. This product includes next-generation security features such as file tracking, digital leakage protection, geofencing, shadow data analysis, remote erasure, and user isolation. The platform prevents internal and surveillance security threats, and provides 1TB of VAULT cloud storage capacity for each enterprise user. The corporate market is our main market focus. The acquisition of corporate customers is the only goal of our marketing and sales teams. The acquisition of individual and small and medium-sized enterprise customers will be gradually carried out through the sharing of confidential documents between the enterprise and its customers. The CRYPTYK platform will target the financial, legal, accounting and insurance industries as an ideal corporate market. The platform will quickly achieve viral adoption by small and medium-sized commercial organizations and individuals through file sharing between enterprises and their customers. While acquiring customers, they also acquired their customers.

2. Market entry strategy and customer adoption

The CRYPTYK platform is very suitable as a secure file storage and sharing solution, covering almost all global industries for large enterprises. However, our main market focus is on industries that need to store a large amount of confidential user information and have important regulatory compliance requirements. At the same time, we hope to target industries that have a lot of overlap with potential investors in token sales activities. In this way, CTK token sales will become the initial stage of our market penetration. Therefore, Cryptyk will specialize in financial services, banking, investment, legal and insurance companies. Once these security-conscious industries adopt the CRYPTYK platform for network security protection, other industries will also flock to it.

CTK token sales activities will be used as the initial tool to penetrate the financial, legal, accounting and insurance industries. However, this can only make them believe in, support and be willing to participate in the CTK economy, and cannot directly involve them in the trial phase of the product, nor can it directly transform investors into long-term corporate customers. The Cryptyk Foundation will be responsible for expanding the initial community of CTK participants and converting them into customers. The key to achieving this goal is to regularly organize community activities to provide attractive economic rewards for participants in the product trial phase and buyers of the final product release.

Although Cryptyk will establish internal marketing and sales teams to promote the development of the community and increase customer adoption, we will also use large-scale OEM sales channels with major global IT service providers. Cryptyk is already conducting detailed cooperation negotiations with some of the world's largest providers of IT services for financial services and banking. By providing OEM versions of the CRYPTYK platform to major IT suppliers and adding them to their existing financial service product suites, Crypryk will quickly enter the global sales channels of OEM partners.

After obtaining the target enterprise customer, the customer's customer will automatically be converted into our free online users (ie individual consumers). Our modeling assumes that 2% of these free users will upgrade to the paid professional version of the platform within one year. For example, if we acquire a corporate customer with 1,000 employees and 0000 customers, we envision that we will also acquire as many as 2.000 new paying users in a year.

3. Competitive analysis

The CRYPTYK hybrid blockchain platform absorbs the best characteristics of two different distributed networks, provides a wide range of product performance, and meets the security, cost and performance requirements of real-time cloud applications used by large enterprises. In addition, the CRYTPYK platform also provides product versions that meet the pricing needs of individual consumers.

Traditional enterprise-level centralized cloud storage network security solutions can usually eliminate 90% of the attack surface. In contrast, the CRYPTYK platform can eliminate more than 9.99% of the potential attack surface exposed to hackers. The equivalent traditional solution requires 2-3 suppliers (such as Amazon and Nctskopc), while CRYPTYK provides a complete security and germanium storage solution from a single supplier. This reduces costs by 50-60%, making our enterprise-level network security solutions affordable to small and medium-sized businesses and even individual consumers. Compared with cloud storage services at the same price, the Pro version of the CRYPTYK product package can provide more network security protection for small and medium-sized businesses and consumers. Regardless of the huge potential advantages that products give ordinary consumers, CRYPTYK is the first platform that can provide a complete security and storage solution for our main target market, a large enterprise that stores a large amount of confidential data.

Compared with file storage systems based only on distributed blockchains (such as: sia, storj, filecoin), the two distribution rings built into the CRYPTYK hybrid platform can reduce the potential attack surface exposed to external hackers by an additional 100 times. Blockchain-based platforms alone cannot provide protection against internal and surveillance threats, but these are the requirements that enterprise-level network security solutions must meet. Therefore, they can only target consumer markets that are usually not affected by insider threats. The most important thing is that the blockchain usually has an access waiting time of 20 to 60 seconds, while the access waiting time of the CRYPTYK platform is extremely low (ie: less than 200 milliseconds). The long waiting time of the file storage platform based only on the blockchain limits the ability of the platform program to upload a large number of file contents for data backup. Therefore, the platform based only on the blockchain cannot be used for the real-time cloud applications required by enterprises. Such as real-time file editing and so on. Fundamentally, file storage based on blockchain alone cannot win a place in the corporate market.

4. Product roadmap

The CRYPYTK project has been devoted to system design, prototype development, safety analysis and customer testing for two years. Experimental prototype testing and customer feedback analysis are critical to optimizing the final technical design of the CRYPTYK hybrid blockchain platform. The CTK token sale that began on February 8, 2018 represents the expansion of CRYPTYK technology into a fully functional product suite, community ecosystem, and cybersecurity economy.

The delivery of the ideal'software as a service' product suite hosted on Cryptyk's own internal server engine is expected to take approximately one year to develop, test and release. The product development plan involves three key milestones, namely: (1) Finalize the implementation of the blockchain design in the second quarter of 2018; (2) Build the final product and organize customer trials in the first quarter of 2019; (3) to Delivery of final products to corporate customers in the second quarter of 2019. The operating costs required for product development, sales, and achieving positive cash flow are not expected to exceed US$25 million. Therefore, the sales limit for the token sale event is 250 million CTKs, which means that the platform can raise a maximum amount of between 25 million and 28 million US dollars, depending on the relative acceptance of various incentive offers in the market.

Delivery of the minimum viable product hosted on Amazon Web Services (AWS) requires at least US$3 million for product development. Therefore, the minimum raised amount for CTK token sales is set at 3 million U.S. dollars. If this amount is not raised, the project will be cancelled and all funds returned to investors. Assuming that the raised amount of at least US$3 million is reached, all unsold CTK tokens in the investor pool will be destroyed after the sale event ends to ensure economic transparency. The product roadmap is outlined below.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

5. Blockchain design and implementation

Although the prototype platform is integrated with the Ethereum ERC-20 protocol, the final product may be built on a newer and better blockchain protocol. The CRYPTYK hybrid platform can introduce blockchain through many potential third-party solutions. At present, public blockchains are entering the privately licensed blockchain space, which is a natural evolutionary process; at the same time, private blockchains are expanding to public consumer applications. All these show that the blockchain field is undergoing rapid changes and changes. At least five major competitors are vying to implement our final blockchain consensus design. however. In the next 6 months, this situation may change significantly. Therefore, the final design decision will not be made until June 2018.

6. Financial forecast

Quarterly revenue and earnings forecast

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

Based on the validated business model assumptions, expected pricing structure, customer adoption parameters and the aforementioned product development plans, we conducted financial modeling. The financial forecast of Cryptyk Inc.'s quarterly product revenue and earnings is shown in the figure.

CTK price prediction

The market demand for Cryptyk products and services is driving the growth of CTK prices. We have calculated the relevant predictions under three different market sentiment conditions. The forecast assumes 20% market liquidity and investor demand-supply ratios of 1.33, 1.00 and 0.67.

CRYPTYK uses two complementary decentralized platforms to form a "hybrid blockchain"

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