p1White PaperEscrow plat on Ethereum blockchain2Confideal is an anonymous service, which allows you to carry out quick, cheap and safe international transactions without participation of third parties.The plat is based on Ethereum Smart Contracts that are optimized for use by non-programmers.ABSTRACT31. THE PROBLEM nbsp;.......................................................42. THE SOLUTION nbsp;.......................................................52.1. The advantages of our solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62.2. Advantages over existing alternatives nbsp;...............................73. CONFIDEAL ECOSYSTEM nbsp;..............................................83.1. Confideal plat nbsp;...............................................83.2. Confideal Token CDL nbsp;............................................83.3. Ethereum ETH nbsp;..................................................93.4. Confideal network parties nbsp;....................................... 103.5. Confideal plat cryptocurrencies nbsp;.............................. 104. USE CASES nbsp;........................................................ 125. MARKET, TARGET AUDIENCE nbsp;......................................... 146. RISKS nbsp;............................................................. 167. TECHNICAL DETAILS nbsp;................................................ 177.1. The process of creating a contract nbsp;................................ 188. HOW TO USE CONFIDEAL ............................................ 198.1. Arbitration ..................................................... 208.2. The rating of arbitrators ......................................... 219. THE TEAM nbsp;......................................................... 2210. THE ADVISORS nbsp;.................................................... 2311. DEVELOPMENT ROADMAP .......................................... 2412. PRE-ICO amp; ICO OFFER nbsp;.............................................. 2712.1. ICO Objectives nbsp;................................................ 2712.2. Pre-ICO ....................................................... 2712.3. ICO nbsp;............................................................ 2712.4. Use Of Funds nbsp;................................................... 28TABLE OF CONTENTS41. THE PROBLEMInternational transactions are a pillar of the modern global economy. International trade, real estate investment, industrial-grade equipment shipment are just a few of the markets based entirely on such deals.The market of international trade has been estimated to have had a volume of 15 to 20 trillion USD in 2016. The real estate investment market is predicted to reach almost 1.4nbsp;trillion USD in 2017.This incredible volume of economic activity can only be maintained by thousands of international contracts signed every day. Each of those deals is associated with inevitable costs and risks. In addition to the risks inherent in the exchange itself, counterparties have to spend significant resources on creating and maintaining the contract.In order to better understand where these costs come from, let us point out three key problems that exist in today’s international contractual processes Interaction with Counterparties Contracting. The organization of international deals is, a priori, a more complex process than that of domestic contracts. For that reason, the partners tend to simplify the contracting process by conducting the entire workflow via the Internet. This approach creates additional risks it becomes possible to modify contract data without the partner’s knowledge, forge signatures in Photoshop, etc. Foreign exchange regulations. In countries with strict forex regulations there can often be substantial delays. Delays of five or more days are quite common, and sometimes banks can deny payment processing outright, without explanation. Arbitration. If disputes arise between parties, another type of cost can be incurred arbitration. The average cost of arbitration today is 2.5 million, and usually takes at least 6 months to reach a decision. Such potential losses are deal-breakers for SMEs Small and Medium Enterprises.Obviously, the majority of the factors that can lead to these problems are external. In the case of strict foreign exchange regulations, the risks are created by government policy; similarly, the risks of contracting and arbitration arise from the counterparty provided the company itself acts fairly.Mitigating uncertainties associated with government regulators or counterparties can lead to a significant reduction or elimination of those risks.52. THE SOLUTIONConfideal is a plat that uses smart contract technology powered by the Ethereum blockchain to solve fundamental problems frequently associated with modern contractual processes.Ethereum is a decentralized system which includes the tools necessary to create smart contracts, and also its own cryptocurrency Ether ETH which is needed for those contracts to work.Smart contracts are digital algorithms which describe a set of terms, which are automatically fulfilled by the Ethereum network. They enable companies, entrepreneurs and regular individuals to enter contracts with each other without having to rely on the honesty of the respective counterparty.The terms of a smart contract are established before the deal is made. Then their fulfillment is ensured by software code without any human interaction.Thus, the smart contract technology represents an ideal tool for low-risk consummation of deals outlined and cuted by program code, the contract between the counterparties can be fulfilled or broken only in accordance with the originally established terms.Due to the technological characteristics of the blockchain the distributed database where the smart contract is stored any interference aimed at changing the terms of the deal after it has been signed is impossible without the mutual consent of each party.The Ethereum smart contract works as an “escrow agent”, a sort of bank account, where the terms of the deal and the money cryptocurrency are stored until the contract is fulfilled.Moreover, the terms of the contract are available only to the counterparties themselves, and, in case of disputes, to the arbitrator. In addition, arbitrators resolve disputes without having access to the personal data of the counterparties. All that they know is the cryptocurrency wallet addresses of each of the 2 sides for more ination on arbitration see 6.1.Users also have the option to manage their smart contract e. g. to close the deal, break it, set up fines and down payments, and establish how the money will be distributed if there is nbsp;a breach of contract.6The principal target market for Confideal services consists of individuals and companies engaged in the cryptoeconomy. However, the usefulness of Confideal extends beyond that. Existing businesses, including entrepreneurs and individuals who want to enjoy the advantages of our plat, can integrate blockchain solutions into their business. Our plat’s main goal is to reduce a variety of transaction costs. For that reason, it will be useful for anyone, regardless of their field of activity or location.2.1. The advantages of our solutionIt’s important to note that it is technically possible to modify the data stored on the blockchain. However, it is economically The Confideal plat offers a range of advantages compared to traditional ways of contracting1. The terms of the contract are established before it is signed and are stored on the blockchain. That is why it is impossible to change its terms after both sides have agreed to them. The contract can only be closed or broken according to the original arrangements.It’s important to note that it is technically possible to modify the data stored on the blockchain. However, it is economically infeasible such a modification would require an immense amount of computational resources from a malicious actor, highly disproportionate to the possible gains which can be made by forging a single contract.2. All transactions on the Confideal plat are made with the use of cryptocurrencies, which completely eliminates all barriers to payment. The absence of an intermediary, such as a bank, makes the counterparties free from unnecessary oversight procedures and removes the possibility of a payment cancellation due to an external decision. In addition, both the time to complete transactions and their costs are significantly lower when using cryptocurrencies 15 to 20 seconds and less than 1, respectively.Another advantage of using cryptocurrencies for payments is that the process of signing a contract and paying for it are integrated. Launching a contract requires the presence of the sum of money which the counterparties have agreed on. After that the money can only move according to the terms of the contract. 3. The option to resolve disputes without leaving the plat. Our service allows third parties law firms, lawyers and mediators to settle disputes between users. These are highly skilled professionals that are qualified to work as arbitrators on our plat. They are motivated by the arbitrator’s fee which is paid for resolving a dispute up to 10 of the contract’s sum.72.2. Advantages over existing alternativesCurrently, alternative blockchain-based integrated plats for making secure international contracts do not exist.It is possible to use the Ethereum blockchain to create smart-contracts manually, however that requires programming skills, or incurring the additional cost of hiring a programmer.There is also a number of services, which allow non-programmers to create smart contracts with the use of a simplified interface. But those services cannot be considered fully integrated plats for international transactions, because they do not provide arbitration services for dispute resolution.The only option available to the counterparties on other plats is to bring in a third-party arbitrator, who could be unfamiliar with the contracts and their details.Thus, Confideal is a unique plat which offers a full range of tools necessary to create, maintain and cute contracts, as well as to resolve disputes with a pool of pre-selected, professionally qualified arbitrators familiar with these kind of contracts, all in one comprehensive, unique package not offered by other companies.83. CONFIDEAL ECOSYSTEM3.1. Confideal platThe Confideal plat is a crucial component of the overall Confideal ecosystem, which provides the interaction between its participants. The plat allows creating typical commercial contracts to deliver goods or services between the parties utilizing a user-friendly interface. Moreover, the plat enables contractual disputes to be settled by involving arbitrators.3.2. Confideal Token CDLThe Confideal Token CDL is the main internal cryptocurrency used for payments in the Confideal ecosystem. The token was developed according to ERC20 token standard on the Ethereum blockchain, ensuring its full compatibility with other projects compliant with this standard.The total supply of CDL tokens is limited and cannot be more than 105.5 million units or lower, depending on the distribution of additional tokens during the ICO. Most of the CDL tokens will be created during the ICO. The price of 1000 CDL tokens will be equivalent to one Ether ETH.Owning and using CDL tokens gives three basic rights1. When using the primary feature of the Confideal plat cuting international transactions deals with the use of smart contracts it is possible to pay your counterparty with the CDL tokens, in which case, the payer will not incur a 1 fee, which is applied to payments in all other cryptocurrencies.Integrated into the Confideal plat is a system where users rate arbitrators in order to measure and ensure objectively the quality of arbitration services provided. One of the factors that determines the ranking of each arbitrator in relation to their peers is voting by CDL token owners. This way, the CDL token owners have a right to directly influence one of the most important parts of the Confideal plat.2. When voting, 10 CDL tokens are equivalent to 1 vote. So, an owner of 1000 CDL is able to give 100 votes to 1 arbitrator or to distribute them between several ones.93. Confideal guarantees that it will buy CDL tokens in exchange for ERC20 tokens of other companies Bancor, Aragon, BAT, Gnosis etc., provided that the amount of those tokens is adequate to conduct the exchange. The tokens of other projects will be accumulated whenever a contract is paid for in one of those tokens on the Confideal plat. They will be stored by Confideal, in order to guarantee the option of exchange. This way, if a CDL holder ever wants to get rid of their stake for any reason, they will always be granted an option to exchange them for a different ERC20 token. The tokens will be exchanged in 1 to 1.5 ratio in USD equivalent. The redeemed CDL Tokens will be back in circulation.We expect that the key holders and users of CDL Tokens will be those who Make big deals where a 1 fee is a significant amount of money. Are interested in voting to rate arbitrators Are interested in CDL Token as a market asset.3.3. Ethereum ETHEthereum is a plat for creating decentralized applications based on smart contracts. Apart from this feature, Ethereum can also cute them by using what we call the “Ethereum Virtual Machine” EVM.The Ethereum network consists of tens of thousands of computers around the world. Anyone can join the network and start pering computational tasks, in exchange for cryptocurrency rewards paid in Ether ETH.Today, there are dozens of fully decentralized and successfully working apps, which were developed based on Ethereum plat Decentralized investment funds; Crowdfunding plats; Prediction market plats; Plats for decentralized trading of financial products, electric power, etc.Based on the positive experience of other teams in developing and using decentralized applications, we have decided to use the Ethereum plat as the basis for Confideal.103.4. Confideal network parties1. Contractual counterparties are companies, entrepreneurs, individuals, who want to enter a contract to cute a deal which is a transaction;2. Smart contract is a blockchain-based program which works as an “escrow agent” which ensures that the money flows in strict accordance with the terms established in the contract;3. An arbitrator is a qualified third-party legal firm or professional, chosen as an arbitrator to resolve a dispute on Confideal plat. After ting the necessary documents to confirm their status, arbitrator candidates are approved by Confideal and are allowed to use the plat. The choice of an arbitrator for a particular contract is made by the counterparties themselv/p