Mysterium​ ​Network​ ​Project WHITEPAPER Release​ ​4 2017​ ​October Table​ ​of​ ​Contents 1.​ ​Motivation​ ​behind​ ​Mysterium 4 1.1.​ ​Mission​ ​Statement 4 1.2.​ ​Core​ ​Objectives 5 1.3.​ ​Mysterium​ ​Solution 5 1.4.​ ​Market​ ​driving​ ​forces 6 2.​ ​Token​ ​Mechanism 8 3.​ ​Plat​ ​layers 9 3.1.​ ​Decentralised​ ​Services​ ​Infrastructure​ ​and​ ​Databases​ ​Layers 10 3.2.​ ​Service​ ​Providers​ ​Layer 10 3.3.​ ​Service​ ​Clients​ ​Layer 10 4.​ ​Roadmap 10 4.1.​ ​Competitive​ ​Analysis 10 4.2.​ ​Funding​ ​Breakdown 11 4.2.1.​ ​Core​ ​Development​ ​–​ ​40 11 4.2.2.​ ​Operational​ ​–​ ​25 11 4.2.3.​ ​Marketing​ ​and​ ​Sales​ ​–​ ​25 11 4.2.4.​ ​Legal​ ​and​ ​Compliance​ ​–​ ​10 11 4.3.​ ​Development​ ​Roadmap 11 4.3.1.​ ​Phase​ ​I 11 4.3.2.​ ​Phase​ ​II 13 5.​ ​Token​ ​Creation​ ​Details 13 5.1.​ ​MYST​ ​Creation​ ​Ratios 14 5.2.​ ​Additional​ ​MYST 14 5.2.1.​ ​Future​ ​Funding 14 5.2.2.​ ​Founders,​ ​Foundation,​ ​Bounty​ ​program​ ​and​ ​Advisors 14 5.2.3.​ ​Seed​ ​Participants 14 5.2.4.​ ​Example​ ​of​ ​Token​ ​Structure​ ​after​ ​Creation​ ​is​ ​over 15 6.​ ​Mysterium​ ​Architecture 16 1 6.1.​ ​Technical​ ​Overview 16 6.1.1.​ ​Core​ ​components 17 6.2.​ ​Service​ ​Provisioning 17 6.3.​ ​Identity​ ​Service 17 6.3.1.​ ​Registered​ ​Identity​ ​Value 18 6.3.2.​ ​Cryptographic​ ​Mechanisms 19 6.4.​ ​Service​ ​Discovery 19 6.4.1.​ ​Outdated​ ​Service​ ​Announcement​ ​Handling 20 6.4.2.​ ​Service​ ​Proposal 20 6.4.3.​ ​Types​ ​of​ ​Services 21 6.4.4.​ ​Service​ ​Selection 21 6.5.​ ​Payments​ ​Handling 22 6.5.1.​ ​Accounts 22 6.5.2.​ ​Deposits 22 6.5.3.​ ​Issuing​ ​Promises 23 6.5.4.​ ​Clearing​ ​of​ ​Promises 23 6.5.5.​ ​Withdrawal 25 6.5.6.​ ​Risk​ ​Management 25 6.6.​ ​Messaging​ ​Between​ ​Nodes 26 6.6.1.​ ​Dialogues 26 6.6.2.​ ​Payment​ ​Scheme 27 6.6.3.​ ​Service​ ​sessions 29 7.​ ​Contact 31 2 cutive​ ​Summary Privacy​ ​-​ ​most​ ​of​ ​us​ ​think​ ​as​ ​if​ ​it’s​ ​a​ ​given​ ​fact​ ​of​ ​life,​ ​but​ ​behind​ ​the​ ​scenes​ ​there​ ​is​ ​a​ ​race​ ​going on​ ​with​ ​its​ ​participants​ ​secretly​ ​trying​ ​to​ ​get​ ​into​ ​as​ ​much​ ​of​ ​our​ ​private​ ​lives,​ ​as​ ​is​ ​possible. Today,​ ​as​ ​Internet​ ​users,​ ​we​ ​are​ ​being​ ​restricted​ ​in​ ​ways​ ​we​ ​are​ ​allowed​ ​to​ ​use​ ​services​ ​and applications​ ​due​ ​to​ ​censorship​ ​employed​ ​by​ ​various​ ​agenda​ ​groups​ ​from​ ​all​ ​over​ ​the​ ​world.​ ​It comes​ ​to​ ​us​ ​in​ ​many​ ​s. Nation​ ​states​ ​consistently​ ​monitor​ ​the​ ​Internet​ ​traffic​ ​so​ ​they​ ​can​ ​construct​ ​political​ ​profiles​ ​of​ ​its citizens.​ ​In​ ​such​ ​a​ ​paradigm,​ ​dissent​ ​becomes​ ​dangerous,​ ​and​ ​honest​ ​political​ ​discord​ ​in​ ​some places​ ​-​ ​an​ ​impossibility. In​ ​a​ ​similar​ ​manner,​ ​content​ ​and​ ​Internet​ ​Service​ ​Providers​ ​have​ ​become​ ​unhinged​ ​in​ ​their objective​ ​to​ ​monitor,​ ​track​ ​and​ ​profile​ ​every​ ​user​ ​across​ ​the​ ​Internet.​ ​The​ ​daily​ ​Internet​ ​activity, communications​ ​and​ ​habits​ ​of​ ​every​ ​user​ ​are​ ​consolidated​ ​and​ ​sold​ ​to​ ​advertisers​ ​and​ ​basically any​ ​willing​ ​buyers.​ ​Such​ ​transactions​ ​occur​ ​with​ ​little​ ​to​ ​no​ ​conscious​ ​consent​ ​of​ ​the​ ​users​ ​and with​ ​a​ ​complete​ ​disregard​ ​for​ ​any​ ​notion​ ​of​ ​personal​ ​privacy. Access​ ​to​ ​content​ ​is​ ​being​ ​restricted​ ​by​ ​its​ ​content​ ​providers​ ​to​ ​certain​ ​areas​ ​due​ ​to​ ​Intellectual Property​ ​limitations​ ​or​ ​purely​ ​because​ ​of​ ​low​ ​valuation​ ​of​ ​users​ ​from​ ​these​ ​particular​ ​locations. Today​ ​there​ ​is​ ​still​ ​a​ ​lack​ ​of​ ​investments​ ​into​ ​research,​ ​implementation​ ​and​ ​maintenance​ ​of​ ​tools capable​ ​of​ ​restoring​ ​privacy​ ​to​ ​the​ ​Internet​ ​users.​ ​These​ ​circumstances​ ​create​ ​the​ ​necessity​ ​for creation​ ​of​ ​protective​ ​measures​ ​designed​ ​to​ ​preserve​ ​the​ ​open​ ​and​ ​unobstructed​ ​nature​ ​of​ ​the Internet. With​ ​the​ ​invention​ ​and​ ​maturity​ ​of​ ​powerful​ ​peer-to-peer​ ​computing​ ​technologies​ ​such​ ​as Ethereum​ ​and​ ​Bitcoin,​ ​the​ ​capability​ ​to​ ​employ​ ​blockchain​ ​technology​ ​in​ ​the​ ​development​ ​of trustless​ ​censorship​ ​evasion​ ​mechanisms​ ​becomes​ ​feasible. Mysterium​ ​team​ ​believes​ ​in​ ​and​ ​strives​ ​to​ ​build​ ​a​ ​future​ ​that​ ​respects​ ​our​ ​privacy,​ ​which​ ​will result​ ​in​ ​disrupting​ ​existing​ ​and​ ​creating​ ​new​ ​industries​ ​in​ ​the​ ​near​ ​to​ ​long​ ​term.​ ​Looking forward,​ ​we​ ​expect​ ​Mysterium​ ​Network​ ​plat​ ​to​ ​​ ​the​ ​basis​ ​for​ ​a​ ​world​ ​of​ ​open​ ​access​ ​to content​ ​and​ ​applications​ ​to​ ​all​ ​citizens​ ​of​ ​this​ ​planet​ ​without​ ​fear​ ​of​ ​censorship​ ​or​ ​of​ ​someone secretly​ ​looking​ ​over​ ​our​ ​shoulder. 3 1.​ ​Motivation​ ​behind​ ​Mysterium 1.1.​ ​Mission​ ​Statement “Our​ ​mission​ ​is​ ​to​ ​create​ ​distributed,​ ​trustless​ ​and​ ​sustainable​ ​network​ ​-​ ​providing​ ​open​ ​access and​ ​privacy​ ​to​ ​all​ ​Internet​ ​users.” The​ ​Internet​ ​in​ ​its​ ​current​ ​state​ ​is​ ​neither​ ​open​ ​nor​ ​private.​ ​At​ ​Mysterium​ ​we​ ​believe​ ​censorship and​ ​spying​ ​is​ ​both​ ​unethical​ ​and​ ​unnecessary,​ ​which​ ​are​ ​s​ ​of​ ​intimidation​ ​and​ ​social​ ​control impeding​ ​technological​ ​and​ ​social​ ​progress. It’scommonlybelievedthat if youneedencryption-youmustbehidingsomething,assuming it’s something illegal. Hereisashort list of 6commonlyusedandverylegitimateusecases where​ ​strong​ ​encryption​ ​is​ ​a​ ​proven​ ​solution 1.travelersvisitingplaceswheretheirpersonalemailsocialmediaaccountsarecensoredor blocked​ ​by​ ​the​ ​local​ ​authorities; 2. communications in your private life about your political, religious, gender / orientation, entertainment​ ​preferences​ ​that​ ​could​ ​result​ ​in​ ​discrimination​ ​or​ ​reprisals​ ​against​ ​you; 3.​ ​businesses​ ​needing​ ​privacy​ ​to​ ​avoid​ ​corporate​ ​espionage; 4. journalistscommunicatingwithwhistleblowers,especiallywhenthesourceiswithinthevery government​ ​or​ ​corporation​ ​that​ ​controls​ ​the​ ​communication​ ​network​ ​being​ ​used; 5.dissidentsandactivistsneedingtoorganizemeetingsandprotestswithoutbeingspiedonby the​ ​powers​ ​they​ ​plan​ ​to​ ​protest; 6. citizens, protesters and journalists needingtosendreportsoneventsabout humanrights violationstotheoutsideworldnewsagencies-astheyoccur.Torequesthelportointhe outsideworld,whilebeingsurethatthelocalpowersthatbewillactivelytrytosuppressallkinds of​ ​communication. Thus​ ​we​ ​intend​ ​to​ ​develop​ ​the​ ​Mysterium​ ​Node​ ​Network,​ ​as​ ​an​ ​open​ ​and​ ​distributed​ ​peer​ ​to peer​ ​plat​ ​embedded​ ​with​ ​sustainable​ ​incentivization​ ​protocols,​ ​while​ ​using​ ​continuously evolving​ ​censorship​ ​evasion​ ​mechanisms,​ ​developed​ ​by​ ​the​ ​community.​ ​Once​ ​developed​ ​and released,​ ​Mysterium​ ​technology​ ​will​ ​enable​ ​anyone​ ​around​ ​the​ ​world​ ​to​ ​both​ ​provide​ ​and receive​ ​access​ ​to​ ​content​ ​and​ ​privacy,​ ​removing​ ​censorship​ ​imposed​ ​by​ ​third​ ​parties. We’ve​ ​spent​ ​a​ ​lot​ ​of​ ​time​ ​discussing​ ​the​ ​ethics​ ​of​ ​creating​ ​Mysterium​ ​tools​ ​which​ ​allow​ ​the avoidance​ ​of​ ​censorship.​ ​We​ ​believe​ ​the​ ​cost​ ​of​ ​censoring​ ​content​ ​is​ ​not​ ​worth​ ​the​ ​supposed benefits​ ​assumed​ ​lower​ ​crime,​ ​higher​ ​profits​ ​of​ ​certain​ ​corporations,​ ​stronger​ ​political​ ​power, etc..​ ​as​ ​these​ ​ends​ ​can​ ​be​ ​reached​ ​by​ ​other,​ ​more​ ​ethical​ ​means.​ ​Most​ ​of​ ​the​ ​solutions​ ​are​ ​well known​ ​to​ ​censors​ ​and​ ​effective​ ​filtering​ ​is​ ​used​ ​to​ ​limit​ ​access.​ ​For​ ​example​ ​machine​ ​learning​ ​is 4 applied​ ​by​ ​censors​ ​to​ ​study​ ​Internet​ ​usage​ ​patterns​ ​and​ ​detecting​ ​unwarranted​ ​behaviours. 1.2.​ ​Core​ ​Objectives Phase​ ​I​ ​Building​ ​a​ ​Decentralized​ ​Network​ ​of​ ​VPN​ ​Nodes Our​ ​first​ ​goal​ ​is​ ​to​ ​completely​ ​decentralize​ ​VPN​ ​node​ ​network,​ ​by​ ​using​ ​technologies​ ​such​ ​as existing​ ​VPN​ ​and​ ​proxy​ ​protocols,​ ​Ethereum​ ​blockchain,​ ​smart​ ​contracts,​ ​state-channels, decentralized​ ​database​ ​solutions,​ ​privacy​ ​ensuring​ ​coins​ ​like​ ​Monero​ ​or​ ​Zcash​ ​and​ ​other solutions. This​ ​will​ ​be​ ​achieved​ ​throughout​ ​the​ ​development​ ​of​ ​Phase​ ​I,​ ​which​ ​is​ ​made​ ​up​ ​of​ ​3​ ​different stages​ ​see​ ​​5.​ ​Roadmap​.​ ​At​ ​the​ ​end​ ​of​ ​the​ ​3rd​ ​Stage​ ​of​ ​Phase​ ​I,​ ​a​ ​completely​ ​decentralized and​ ​open​ ​source​ ​VPN​ ​network​ ​with​ ​all​ ​of​ ​its​ ​functions​ ​also​ ​decentralized​ ​will​ ​be​ ​released.​ ​No single​ ​point​ ​of​ ​failure​ ​will​ ​be​ ​possible​ ​from​ ​this​ ​time​ ​forward. Phase​ ​II​ ​Building​ ​Mysterium​ ​Protocol​ ​-​ ​as​ ​standard In​ ​Phase​ ​II​ ​-​ ​our​ ​vision​ ​is​ ​to​ ​build​ ​Mysterium​ ​protocol​ ​capable​ ​of​ ​“dissolving”​ ​user​ ​data​ ​and sending​ ​it​ ​deep​ ​into​ ​the​ ​Network​ ​of​ ​Mysterium​ ​Nodes​ ​without​ ​the​ ​possibility​ ​of​ ​trace​ ​or censorship.​ ​The​ ​Network​ ​will​ ​take​ ​care​ ​of​ ​sending​ ​this​ ​shredded​ ​and​ ​encrypted​ ​data​ ​in​ ​an unrecognizable​ ​​ ​to​ ​the​ ​receiving​ ​end,​ ​where​ ​Mysterium​ ​Protocol​ ​will​ ​ensure​ ​this​ ​user​ ​data to​ ​be​ ​“reassembled”​ ​again. Mysterium​ ​protocol​ ​will​ ​eventually​ ​become​ ​a​ ​combination​ ​of​ ​different​ ​elements​ ​united​ ​into​ ​a coherent​ ​system. Once​ ​complete,​ ​this​ ​Protocol​ ​will​ ​ensure​ ​that​ ​user​ ​data​ ​cannot​ ​be​ ​overtaken​ ​neither​ ​by​ ​nodes nor​ ​by​ ​third​ ​parties. 1.3.​ ​Mysterium​ ​Solution Mysteriumaims to be fully decentralized, peer to peer based andserverlessnodenetwork, designedtoprovideprivacyrestoringtechniquestoitsuserswithfinancialincentivizationtoits node operators providers. Mysterium achieves this goal by utilizing already-existing technologiessuchasEthereumblockchain, smart contractsandadvancingtheirfeatureswith state-channels,evolvingmechanismsofpromises,combinedwithcensorship-evasionprotocols developed​ ​by​ ​the​ ​community​ ​acting​ ​as​ ​applications​ ​of​ ​the​ ​network. Once​ ​Phase​ ​I​ ​Stage​ ​1​ ​is​ ​developed​ ​and​ ​released​ ​-​ ​this​ ​Network​ ​will​ ​protect​ ​user​ ​privacy​ ​and data,​ ​while​ ​enabling​ ​all​ ​users​ ​to​ ​share​ ​their​ ​spare​ ​bandwidth​ ​access​ ​with​ ​those​ ​who​ ​need​ ​this open​ ​access​ ​in​ ​exchange​ ​for​ ​financial​ ​compensation. 5 Mysterium​ ​network​ ​will​ ​act​ ​as​ ​a​ ​decentralized​ ​marketplace​ ​between​ ​providers​ ​and​ ​consumers participating​ ​in​ ​building​ ​and​ ​maintaining​ ​this​ ​infrastructure.​ ​The​ ​costs​ ​of​ ​providers​ ​will​ ​be​ ​paid​ ​by consumers​ ​using​ ​cryptographic​ ​currencies. The​ ​development​ ​of​ ​the​ ​technology,​ ​its​ ​capabilities​ ​and​ ​functionality​ ​will​ ​come​ ​in​ ​several​ ​phases to​ ​minimise​ ​risk,​ ​learn​ ​from​ ​early​ ​experience​ ​and​ ​to​ ​benefit​ ​from​ ​development​ ​of​ ​complementary technologieseg.​ ​state-channels.​ ​The​ ​decentralisation​ ​of​ ​all​ ​functions​ ​maintaining​ ​the​ ​network will​ ​be​ ​achieved​ ​by​ ​the​ ​end​ ​of​ ​the​ ​Phase​ ​I,​ ​Stage​ ​3​ ​see​ ​​5.​ ​Roadmap​. Participants​ ​of​ ​the​ ​Mysterium​ ​Token​ ​Sale​ ​will​ ​gain​ ​access​ ​to​ ​tokens​ ​which​ ​will​ ​​ ​the foundation​ ​to​ ​all​ ​transactions​ ​happening​ ​within​ ​the​ ​network.​ ​The​ ​network​ ​we​ ​are​ ​building​ ​will have​ ​opportunities​ ​for​ ​various​ ​levels​ ​of​ ​development​ ​by​ ​entrepreneurs​ ​and​ ​communities​ ​after​ ​it has​ ​been​ ​deployed.​ ​The​ ​Network​ ​will​ ​also​ ​be​ ​open​ ​to​ ​applications​ ​to​ ​make​ ​censorship​ ​less effective,​ ​ways​ ​to​ ​make​ ​payments​ ​easier​ ​and​ ​more​ ​efficient​ ​and​ ​new​ ​networking​ ​related services​ ​to​ ​be​ ​made​ ​available​ ​by​ ​reusing​ ​infrastructure​ ​and​ ​protocols​ ​developed​ ​by​ ​Mysterium Foundation. VPN-like​ ​services​ ​on​ ​Mysterium​ ​network​ ​will​ ​be​ ​available​ ​early​ ​into​ ​Phase​ ​I,​ ​after​ ​completion​ ​of Ist​ ​Stage.​ ​VPN​ ​service​ ​provided​ ​by​ ​the​ ​Network​ ​in​ ​this​ ​stage​ ​will​ ​be​ ​comparable​ ​with​ ​the​ ​and may​ ​even​ ​improve​ ​upon​ ​existing​ ​Centralized​ ​Virtual​ ​Private​ ​Networking​ ​services.​ ​Mysterium market​ ​model​ ​will​ ​result​ ​in​ ​creating​ ​a​ ​VPN​ ​service​ ​which​ ​is​ ​both​ ​competitive​ ​and​ ​almost​ ​infinitely scalable,​ ​giving​ ​other​ ​entities​ ​e.g.​ ​other​ ​VPN​ ​providers​ ​or​ ​app​ ​developers​ ​an​ ​option​ ​to​ ​buy VPN​ ​service​ ​from​ ​the​ ​Network,​ ​integrating​ ​it​ ​into​ ​their​ ​solutions.​ ​This​ ​competitiveness​ ​comes from​ ​the​ ​open​ ​nature​ ​of​ ​the​ ​network​ ​and​ ​the​ ​ease​ ​with​ ​which​ ​anyone​ ​can​ ​earn​ ​money​ ​by​ ​joining it​ ​as​ ​a​ ​VPN​ ​service​ ​provider.​ ​Further​ ​improvements​ ​and​ ​new​ ​applications​ ​will​ ​follow​ ​in​ ​later stages,​ ​with​ ​complete​ ​decentralization​ ​achieved​ ​by​ ​the​ ​end​ ​of​ ​Stage​ ​3. 1.4.​ ​Market​ ​driving​ ​forces Everyday​ ​more​ ​and​ ​more​ ​of​ ​our​ ​lives​ ​are​ ​transferred​ ​onto​ ​the​ ​Net,​ ​which​ ​inevitably​ ​creates​ ​more opportunity​ ​for​ ​our​ ​data​ ​to​ ​be​ ​stolen,​ ​hacked,​ ​filtered​ ​or​ ​abused. Research​ ​shows​ ​that​ ​increased​ ​data​ ​vulnerability​ ​is​ ​one​ ​of​ ​the​ ​main​ ​forces​ ​driving​ ​an​ ​expanding market​ ​for​ ​Internet​ ​privacy​ ​and​ ​security​ ​solutions 1 Government​ ​legislation There​ ​is​ ​a​ ​visible​ ​trend​ ​for​ ​governments​ ​to​ ​intrude​ ​into​ ​our​ ​private​ ​lives.​ ​As​ ​more​ ​of​ ​our​ ​lives​ ​are on​ ​the​ ​Internet​ ​this​ ​intrusion​ ​will​ ​only​ ​increase. 2 Western​ ​countries​ ​become​ ​accustomed​ ​to​ ​VPN​ ​services Currently,​ ​the​ ​main​ ​countries​ ​using​ ​VPN​ ​are​ ​located​ ​in​ ​Asia.​ ​However,​ ​following​ ​recent​ ​changes in​ ​western​ ​government​ ​policies,​ ​the​ ​number​ ​of​ ​people​ ​looking​ ​for​ ​Internet​ ​privacy​ ​solutions​ ​in the​ ​Western​ ​world​ ​is​ ​rapidly​ ​increasing. 6 3 Risk​ ​of​ ​c​yber​ ​threats​ ​grows Every​ ​year​ ​the​ ​number​ ​of​ ​cyberattacks​ ​increases​ ​followed​ ​by​ ​a​ ​greater​ ​awareness​ ​of​ ​the​ ​need for​ ​countermeasures.​ ​Companies​ ​and​ ​individuals​ ​tend​ ​to​ ​invest​ ​and​ ​change​ ​their​ ​online behaviour​ ​in​ ​response​ ​to​ ​cyberattacks,​ ​resulting​ ​in​ ​rapid​ ​expansion​ ​of​ ​VPN​ ​market. 4 Freelance​ ​workforce​ ​needs​ ​safe​ ​connection​ ​to​ ​corporate​ ​servers Every​ ​year​ ​more​ ​work​ ​is​ ​done​ ​by​ ​freelancers.​ ​Having​ ​a​ ​safe​ ​connection​ ​to​ ​corporate​ ​servers becomes​ ​more​ ​urgent.​ ​Small​ ​businesses​ ​also​ ​require​ ​secure​ ​communications,​ ​but​ ​creating​ ​their own​ ​VPN​ ​can​ ​be​ ​a​ ​financial​ ​challenge. Google​ ​trends​ ​graph​ ​for​ ​VPN​ ​days​ ​after​ ​USA​ ​Congress​ ​Over