pTHEnbsp; nbsp;SMARTMESH PROJECTsmartmesh.io prsmarmesh.ioSMARTMESH FOUNDATIONPTE. LTD.PRODUCEDnbsp; BYTHE SMARTMESH WHITE PAPERSmartMesh White Paper2017-SmartMesh 1SmartMeshTokenized Mobile MeshNetwork_____________________________If the Internet was conceived today, it would have been a P2P network that connectssmartphones, and it would have been safer, cheaper, faster.SmartMesh White Paper2017-SmartMesh 2Abstract1 Mesh network is an ad hoc network that can be automatically established between radionodes such as mobile devices. It is more private, resilient, and efficient and often comesfree, yet it has a challenge to scale, one of the reasons is the lack of economic incentives.In this project, we provide with such an incentive by introducing a crypto token, of whichpeople can quot;minequot; when they share their nodes.2 To do that, there are issues that we need to address3 Mesh network is often used and deployed in areas where Internet is not available, whichmeans payment transactions between nodes need to be made without access to theblockchain, obviously this is a paradox.4 Even when the device in this mesh has access to the Internet, there is still a problemBecause of a hard-coded limit on computation per block, the Ethereum blockchaincurrently supports roughly 1 5 transactions per second compared to, say, the 4 5 ,0 0 0processed by Visa. To make Ethereum based ERC-2 0 token a viable payment solution forthe mesh network we build, we need to make it faster.5 How to scale up blockchain to make the payment fast and economicalThe core enabler is to develop an off-chain payment channel by which such micro paymenttransactions to be both scalable and cost effective.This white paper examines how we have solved and will solve these problems to achieveour goal, a mesh of nodes that self-sustain, self-govern and grows.SmartMesh White Paper2017-SmartMesh 3Table of ContentGenesis 4About SmartMesh 4What is the SmartMesh protocol 5SmartMesh positioning 5Mobile MESH technology pioneer, focus on technology, andecosystem incubator. 5SmartMesh Third-Party Ecosystem 5Ination Security Issues Point-to-point no network transmission 6Network congestion Problem 6Off-internet Communication 6Off-internet Payment 6Inclusive Finance 6Vision a global mesh network 7Mesh Overview 8Nodes 8User nodes 8Carrier nodes 9Internet nodes 9Tech Stack 9SmartMesh Mesh Architecture 9SmartMesh Token 10SmartMesh Token Contract 10Signed Authorized Payment 10SmartMesh Micro Payment 11SmartMesh Off-Internet Payment 12Universal connectivity architecture 13SmartMesh governance 14SmartMesh Foundation 14SmartMesh Decision Making Committee 14SmartMesh Ecosystem Center 15SmartMesh Research and Development Center 15SmartMesh Marketing Centers 15SmartMesh Daily Operation Center 15Development team 16Roadmap 17SmartMesh ico Allocation and distribution 18SmartMesh White Paper2017-SmartMesh 4GenesisIn the beginning Men created the Internet.People see the Internet is good. However, on the Internet, people do not trust each other.Then people created the blockchain. It allows people to work with each other without mutual trust.Blockchain is good, but it39;s slow.Then people created Lightning, Raiden and Plasma. They allow people to do things. But people cannot work without the net.Then people created SmartMesh, the spirit of SmartMesh saying Make everything connected, evenwithout the internet.SmartMesh connects everything without internet. Everything is always connected.About SmartMeshSmartMesh White Paper2017-SmartMesh 5What is the SmartMesh protocolSmartMesh is a blockchain-based IoT underlying protocol that enables smartphones, onboarddevices and other devices to connect to each other without the internet. SmartMesh has built-inblockchain light nodes and extends Raiden network protocol for Tokenless Meshless Pay. Motivatedby blockchain tokens, SmartMesh can self-organize to create a resilient, decentralized, self-healingMesh Network that offers higher near-field communication speed and bandwidth than the Internetand it will be generally free. It is possible to achieve a network parallel to the existing Internet.SmartMesh positioningMobile MESH technology pioneer, focus on technology, andecosystem incubator.The Serval Project in Australia and NextApp in China optimized Wi-Fi Direct, Bluetooth, Bluetooth LE,ANT and other wireless protocols and the above applications to make the near field communicationof Android and iOS mobile phones become a reality.Every Mesh Network-based messaging application does the same thing They allow you to stay intouch with others without a SIM card. Their user scenarios may be slightly different, some focus onchatting, others focus on research, and some may focus on social interactions, but together theyhave tens of millions of user groups.Based on existing technological advantages and ecological resources, SmartMesh will mainlycontinue to develop the underlying IoT protocol in the future, and continuously integrate theworld39;s top off-internet communication companies to devise a uni standard for global IoTcommunications. At the same time, the SmartMesh Foundation will continue to introduce variousapplication scenarios based on the SmartMesh protocol through third-party development teamssuch as incubation and cooperation.SmartMesh Third-Party EcosystemSmartMesh builds a mesh network that is parallel to the internet based on P2 P direct connection ofsmartphones, so that traffic would not need to be sent to the center servers but throughcommunication in the local mesh network, saving traffic resources, reducing radiation and waste ofpower communication. The SmartMesh Foundation will make it easier and more convenient tomake people to people, people to things and things to things connections. It is the future directionof off-internet communication, off-internet payment and off-internet gaming.SmartMesh White Paper2017-SmartMesh 6Ination Security Issues Point-to-point no networktransmissionHave you ever wondered if all of the mobile apps we use have the risk of ination disclosureWhy Because all of our chat history, browsing habits are all saved in the third-party server.American daddy, Visa and other big companies have had many times the more common customerdata breach leaked small businesses. With SmartMesh all messaging is just point-to-point, thusisolating the risk of third-party ination being exposed.Network congestion ProblemWhether in the train, subway, plane, outdoor camping or sports stadium, User density congestsdata traffic and people cannot access the internet properly. However, with SmartMesh, users cansend messages to people around during these entertainment and sports events, which can bewonderful moment if shared with the outside world. As the density of devices increases, the qualityof the network improves, and the speed will be faster. SmartMesh fulfills this last mile of socialconnectivity, and entertainment will be more enjoyable.Off-internet CommunicationSome time ago, the United Nations Broadband Commission hereinafter referred to as quot;UNBCquot;released a report saying that there are 3 .9 billion people in the world without regular access to theInternet. Although internet inflitration in the developed countries is very high. And yet, in theworld39;s poorest 4 8 countries, 9 0 of the population has no access to the Internet. SmartMesh willchange the situation for those people with the rollout of SmartMesh App. People can connect toeach other to a local mesh network. Within one local mesh network, as long as that one of themobile phones has internet connectivity, everyone on the Mesh will be able to connect to theworld.Off-internet PaymentCurrent payment application plats cannot work without internet, SmartMesh will allowpayment through the SmartMesh Mesh Network, where each phone will become a node to adense network. This new network will break the traditional boundary of payment service and makepayment easy.Inclusive FinanceAs of 2 0 1 6 , about 2 .9 billion people around the world have no bank accounts, and at present,basically all the products in the field of mobile banking and payment are implemented using theSmartMesh White Paper2017-SmartMesh 7internet. SmartMesh will build upon its own communications protocol to build a rich ecosystem ofcommunications and inclusive finance to fulfill the demand of these 2 .9 billion people.Vision a global mesh networkAs pioneers in mesh network, we had faced the dilemma of scalability. A global Mesh Networkrequires global collaborations of technologists and entrepreneurs to work together, and users needto be incentivized to share nodes, hence to increase user density to make the mesh network to bestable and accessible.Today three leaders in mesh network decide to pursue the vision together. With progress of theRaiden Network in off-chain micro-payment and SmartMesh Raiden Extension, off-Internet highspeed payment is achievable. The team of dreamers and technologists are working together tomake this shared vision a reality.We propose to build a mesh network that connects mobile phones, on which people who sharetheir own mobile phone as nodes are rewarded in crypto tokens.SmartMesh is a marketplace of nodes, like an Airbnb of smart phone nodes. Anyone with a smartphone can send text messages, photos, or voice to other nodes; and they are rewarded with tokensby helping transfer the data, and of course the data packets are encrypted.To deal with daunting task like this, the biggest challenge is to transfer crypto tokens betweenmobile phones quickly so that people can share their nodes and get paid quickly, which was notpossible on blockchain. As we all know, transaction confirmation on blockchain is too slow and tooexpensive to be applied on sharing mobile phone nodes.Since inception, Bitcoin and blockchain have been plagued with its inherent technical issues, only 7transactions can be processed per second, and every transaction need be confirmed by 6 blocksdeep to be verified as effective. This level of throughput could not be regarded as a currency, bywhich people can use to conduct business, not to mention the ultra-high speed of micropaymentsbetween mobile phone nodes.SmartMesh White Paper2017-SmartMesh 8Fortunately, since 2 0 1 5 , we have the new technologies that we didn’t have, which are blockchain,crypto token, especially Lightning Network and Raiden Network as an off-chain paymentaccelerator.Lightning Network proposes to achieve peer to peer micro-payment transactions off-chain withon-chain validation and settlement. The blockchain processing bottleneck is broken; issues such aslatency, finality, throughput and privacy are all solved. Raiden Network is based on the sameconcept and built on Ethereum. Plasma expands Lightning Network to computation in addition topayment.Hereafter is the plan to construct the SmartMesh Mesh1 . To create an incentive mechanism by which people are rewarded. This is implemented withblockchain and token.2 . To make token transaction fast enough, we need to build a Ethereum based Raiden NetworkMicropayment3 . Raiden Network runs fast enough, but it could not work without access to the Internet. Wehave designed SmartMesh Extension to enable off-Internet micropayment on mobile phones;4 . When off-Internet micropayment is ready, people can participate in SmartMesh Mesh bysharing their mobile phone nodes to co-build the global mesh network we conceive.In the following passages, we will describe with reasonable technical details about what we havedone, what we are doing, where this journey lead us to, you should be able to understand whetheryou are of technical or non-technical background.Mesh OverviewNodesThe base primitive that SmartMesh Mesh is built upon is a pay-for-forward network, of which noinfrastructures are needed; instead all people use their smart phones to connect together.These smart phones, or called nodes, can pay each other for the service of forwarding data, andverify that the data forwarding is pered well.It is like an Airbnb of mobile phones, which share nodes and provide with data-forwarding servicesrather than bed and breakfast. This mesh network not only handle “local traffic” such as text andphone sharing inside the mesh but also provide with Internet access if at least one node isconnected to the Internet with a “uplink”.There are three types of nodes in SmartMesh Mesh.User nodesAnyone who connects with SmartMesh Mesh is a user node. They pay their neighboring node tosend out data packets. For example, if there are 3 nodes between Alex and Brandon, then Alex paysSmartMesh White Paper2017-SmartMesh 9the 3 nodes for forwarding the data packets to Brandon through a mesh payment channel, whichwill synchronize to the blockchain and settle in crypto tokens. In this case, Alex is user node here.Carrier nodesCarrier nodes are smart phones that forward data packets for other nodes. They are paid in tokensfor their services. In this case, Brandon is a carrier node.Internet nodesInternet nodes are like carrier nodes, but they have internet access and offer to others. They canbe smart phones with big data plans they would like to resell to others who need it.Tech StackSmartMesh Mesh ArchitectureSmartMesh Mesh is a decentralized peer-to-peer distributed network that functions either Internetaccess is available or not.SmartMesh embeds the Ethereum light node, which is based on the Light Ethereum Sub-protocolLES, and is connected to the Ethereum via Geth. LES is a protocol designed for a light client such asSmartMesh White Paper2017-SmartMesh 10a smart phone. It downloads only the block header instead of the entire block when the block chainis synchronized. It provides a fully secured blockchain access function, but does not participate inmining and the ation of consensus.Decentralized Application, on the top layer, interacts with the SmartMesh contract layer throughWeb3 .js. The user uses Wallet to store their private key, make transfer, and make query and otheroperations.SmartMesh uses Swarm to implement to host personal files in shared storage space, uses Whisperto build a peer-to-peer messaging network, off-chain transactions via Lightning Network or Plasmato accelerate transaction confirmation and incentivize users to contribute storage space andnetwork resources through checkbook contracts.Near-field, peer-to-peer connection based on Wi-Fi, Bluetooth, ANT and other protocols, with theincrease of distributed nodes, this mesh networks will be better, and ultimately becomes a worldparallel network to the Internet.We believe SmartMesh Mesh has the potential to support applications far more beyondoff-Internet chat, data transmission and off-Internet payment.SmartMesh TokenSmartMesh token, or SMT, is a contract token based on Ethereum. Ethereum is an open source,public distributed computing plat that provides a distributed Turing Complete Virt/p