The Hut34 Project | The Entropy Token Sale | Powering the global knowledge economy.
Embodying the ethos of open computing and through use of distributed ledger technology the Hut34 Project aims to redistribute the power of data, information, and knowledge out of the hands of the few back to the many.
The Hut34 Network aims to be the conduit that links the world’s decentralised silos of data, information and knowledge through its network of nodes or “Huts”. The network will be open for all, and economic incentives will drive the entire global knowledge base to new levels. Users will be empowered by access to even more useful information whilst contributors are fairly rewarded for their efforts.
The Hut34 Network is designed to provide utility to end users, domain experts, bot and service builders, and IOT data providers, while also providing a valuable resource for businesses and marketers.
We don’t propose to solve all the issues surrounding information routing but we do aim to incentivise and empower network users to connect, resolve and be fairly rewarded. Hut34 aims to minimize friction with easy connectors, easily and successfully resolve queries and critically make it easy to monetise information transactions.
The core concept involves connecting network participants though Huts and resolving their queries through intelligent routing and ranking.
Each Hut on the network is a switch for the new open global knowledge economy. Huts will facilitate the connection, routing, ranking and monetisation of not just data, but information and knowledge. Similar in concept to a TCP/IP router sending and receiving traffic, but allowing all users of the network to profit from their data, information or knowledge contribution.
Each Hut will contribute or utilise valuable information. Types of information routed through the Hut34 Network could include simple text based queries such as questions and answers, requests for more “curated” answers, routing to process driven queries, access to datasets, IOT device data or multimedia files.
- Connection provides instant access to the user bases of all connected platforms and services eg. Facebook, Skype, Slack.
- Connection is simple and straightforward. It can be done through operating your own Hut or connecting to the Hut34 Platform.
- Route your queries into the Hut34 Network according to your needs.
- Use your Hut, our managed service or another 3rd party service to rank answers returned from the network to resolve your queries.
- Successful resolution adds utility and value to your service and end customer.
- Earn Entropy by providing others access to your data, information or knowledge.
- Access a global network to deploy your expertise or marketing.
- Add utility to your existing service, making it more useful and again more valuable.
- Build on our layer - sell services that improve network features in exchange for Entropy.
In the following sections we outline the guiding design principles on which we are building the Hut34 Network, and the Huts upon which it is built. The core of our team has been assembled and they have broken ground on executing this vision, working hard towards the goal of building the global knowledge network.
The Hut34 Network is built upon Huts, or nodes. Each node at a minimum acts as as a multilayered switch that distributes and transacts in digital services and information. We describe the layers of this switch using the OSI model as a reference as it is aligned with our product offering while being a familiar stack to developers. As with any switch there are a defined set of rules and regulations that determine how data is transmitted.
Data Link Layer When analysing the requirements from our design principles we find the two main drivers are trust and efficiency. We need both the low trust, low efficiency network features that a public blockchain provides, and the high trust, high efficiency advantages that a private blockchain offers. Thus we are building a hybrid, or consortium blockchain that aims to deliver the ultimate range of performance and user case. Some users may desire to use a trust based paradigm, for instance, in a fully private blockchain system or groups of organizations, who collaborate with each other, gaining a blockchain with restricted access while maintaining intellectual property rights. Other users will prefer a hybrid architecture applying Proof of Work for additional security defense and extending read and write to any number of nodes. We strongly beleive in Ethereum and we are building the Hut34 Protocol to be a first class citizen on the Ethereum public blockchain and using Ethereum for our private blockchain initatives. Network Layer Routing When a Hut passes data or a data request, the system must route it to a set of Huts which can use the data or answer the query. Specific routing options can be set by the developer, whether connected individually to the Hut34 Network via their own Hut or to the Hut34 Platform. These options limit the scope of Huts consulted by considering particular requirements. These routing options may include: Free services only Specific Hut types Age restrictions, ’safe search’ Specific services or providers; users may have a personal ‘fly/no fly’ list Location specific services Only primary data s, for instance IoT hardware Service providers will also supply contextual information regarding their identity, location and capabilities. This metadata, similar to website search indexing, will provide the network with a means to reduce total system demand due to irrelevant routing queries. Use of metadata and routing criteria allows the network to narrow down the full network into a shortlist of potential connections, possibly sorted by quality of metadata. These Huts can then be probed directly to ascertain their suitability to the connection, at which point some may classify the data as out-of-scope. This allows the network to further narrow the search space, allowing for effective real-time ranking and connection. Ranking When the network routing has provided a filtered list of potential connections or results, they must be ranked according to some criteria or method in order to provide the querying Hut with the best choice most of the time. Ranking methods can again be set up by the developer whether connected individually to their own Hut, or the to the Platform. Preferences may include, but are not limited to: Speed of response, particularly suited for high-frequency factual queries. Local reputation, namely how your Hut has valued previous answers from potential suppliers. Global reputation, namely how Huts worldwide have valued potential suppliers. Cost of response. Income from response, particularly relevant when handling raw data or advice. Additionally, developers can setup their own ranking algorithms and generate Entropy revenue by providing this compute power as a service to other participants on the network. Accurate and useful ranking of potential answers improves the quality of the network as a whole. Transport Layer The Hut34 Protocol requires transient publication and subscription of messages with exceptional levels of privacy. We need a design that supports data flows accross state channels and node to node or user to user. Our data layer will be logically secure from smart contracts and distinctly separate from the blockchain. Session Layer A Hut34 transaction occurs when two Huts are successfully connected and the transferred data is matched. Transactions must be completely secure, but since some Huts are connected to chatbots, who may service thousands of queries per minute, these transactions also need to be affected quickly. Hut34 will make use of the emerging state channel technology in order to handle these microtransactions, allowing each Hut to perform very fast transactions in a local ledger which is periodically processed on the blockchain, allowing user-time interactions without compromising trustless security. As an information transfer platform, it is near-impossible to estimate how much a transaction is worth. Some information, from a niche context or with high value potential, is intrinsically more valuable than other information. For instance, a Hut providing raw, unique satellite imagery may be more valuable than one which can answer simple factual queries by checking Google. The fact is, any information traded on Hut34 should be worth as much as users are willing to pay for it. Due to these considerations, the market will largely decide the value of data transferred. Service providers will be able to set a price, and as with any market economy, they will be incentivised to provide as low a price as possible to compete with similar Huts. In this way, Huts which provide a unique and valuable service will be able to value their information at a higher Entropy than Huts which are simple or commonplace, while the latter Hut can distinguish themselves through competitive pricing. Huts which consult the network for information or services can have the option of requesting only ‘free’ services; however, they may be required to pay for the service price by accepting advertisements of an equivalent value. We anticipate this marketplace approach to valuation will largely lead to efficient prices across the network. Presentation Layer Clearly, the data transferred through a global network cannot reasonably be in any data format decided by the user. For the purposes of speed, security and generality, some number of standard or acceptable formats must be defined for network passage. Data trasnferred in and out of the network will undergo some translation provided either by the Hut34 API or third party providers following specific data models for formatting, encoding, compression and encryption, providing independence from the Application layer while ensuring efficiency and privacy. Application Layer We call a node on our network a “Hut” and this is a developer's first point of contact with the Hut34 Network. Huts provide developers with a network interface to which they can connect their client facing applications. There are two distinct Hut types avaible for developers to use. Download and run your own Hut participating in all the benefits of the ethereum public blockchain. The Hut34 Platform - run your hut in the cloud - : Simple, straightforward connection provides frictionless access to all connected platforms and services.
The Hut34 Project seeks to lower the barrier to entry and encourage broad adoption of the Hut34 Network, and it’s to this end that the Entropy Foundation will be developing a managed cloud service or "Hut as a Service" (HaaS) product offering - The Hut34 Platform. In much the same way that a website developer can decide to host their project on a high-reliability, high-uptime service rather than assembling their own servers, developers can make use of the Hut34 Platform. Platform Huts are hosted and will provide all the features that are available in a downloaded Hut, however use of the platform eliminates all efforts in deploying, hosting and maintaining an individual Hut. The Hut34 Platform will seek to provide a frictionless user experience, with the maximum simplicity for developers, especially those new to web3 and dApps. It will support Ethereum public and private blockchains and be built to satisfy enterprise where full trust transactions with efficent costs and accelerated consensus algorithms are required. Bots and services built in a variety of platforms will be supported, in order to simplify connection to the Hut34 Network. Thus, the Hut34 Platform will be an ideal way participate on the Hut34 Network. The Hut34 Platform is now in alpha/proof of concept, with a range of bots and services connected and transacting information. These include @elwood, @jokebot and @weatherbot. More information can be found by asking @elwood on the Hut34 Slack channel.
The team behind Hut34 have mapped out a roadmap of product milestones that builds iteratively on the work completed for the Hut34 Platform release v0.5 which demonstrates proof of concept of the core product offering while also providing supporting features for the Entropy Token sale. Our product development vision is consistent iteration with maximum agility.
Upon successful completion of the token sale we immediately commence build of the Hut34 Network stack, targeting the first pre-alpha release of the network with basic network routing by the end of 2017. A limited set of developers will then be invited to develop Huts which may temporarily transact using using Entropy Foundation ENT or with zero-cost transactions. This release will be inline with an update release to the platform that introduces new features along with bug fixes to existing features.
An alpha version of the monetised Hut34 stack will be released in Q2 2018. At this stage, developers may establish Huts and purchase ENT, with limited ranking and routing functionality.
By the end of the third quarter of 2018, a finished version of the Hut34 Platform will be made available to bot builders and marketers, along with a full beta version of Hut34 networking capabilities. A portion of Entropy Foundation currency will be used to discount transactions during this time to encourage development, and feedback and usage statistics will be collected in order to improve features.
By the start of the second quarter of 2019, a fully-functional Hut34 network will be publicly available for full use. By this time, network operations will have been significantly tested and iterated and the entire system will have over a year of real user testing.
Hut34 is a network built on Huts. Each Hut is a network connected node, built on Ethereum and is the point of communication between an array of potential services connected to each Hut.
Huts may fulfil a variety of roles, as a combination of several or one exclusive role. The scope of potential applications which can be connected to, or built upon, a Hut is fairly broad, though we classify them as contributive (adding resources into the network) or extractive (removing resources from the network).
For the Hut34 Network and ecosystem to be successful, a healthy mix of the two is required.
Following are the higher level uses for Huts and some practical uses cases for services or applications to be built on these Huts.
Chatbots interact with end users by direct communication, and could be seen as a natural fit for the Hut34 Network. Local AI or other development provides the intelligent behaviour of the bot. However, even the most powerful of bots available are limited by the vision and effort of their creators. Simple queries are commonly not problematic, but complex or out-of-scope requests are rarely handled well. Some bots are excellent in particular areas, but poor in others.
By connecting to the Hut34 Network, a bot’s knowledge base and functionality expands in line with the entire Hut34 Network, providing significant improvements over standalone bots.
To the extent that chatbots interact with the Hut34 Network, they would generally be considered both opportunistic and contributive, as the network as a whole would be able to access its functionality and knowledge base, while it uses the network to service its clients in a broadly applicable way.
I have built an “expert” bot specialising in provision of information on the native fauna of Guatemala and deployed it to my target audience through Facebook messenger and Skype.
I need ways to improve and monetise my bot service. I connect my bot to a Hut on the Hut34 Network, allowing me to grow my user base instantly, and configure the Hut such that my bot’s knowledge is available in exchange for ENT payments.
Concurrently, my bot’s knowledge base becomes much larger as a result of connecting to the network. My users now have the option of using my bot for other purposes, increasing their engagement.
Through proper management any ENT costs incurred by my bot through providing “off domain” answers, can be offset will be more than offset by ENT earned from my domain knowledge, possibly additional marketing earnings and the increase in utility and value of my service.
I create a simple “dumb-bot” through a third party bot building service, i.e. this bot contains no specific domain expertise or proprietary information.
I deploy it to my Hut on the Hut34 Network. I set my Hut34 preferences such that any advertising deployed by my bot to my end users offsets the ENT cost of retrieving “off domain” knowledge.
My primary real-world efforts are spent on marketing my bot service, increasing my user base and thus my value to advertisers. My bot continually improves as capabilities are added to the Hut34 Network as a whole; so I have no ongoing development costs. As users interact with my bot, I can approach advertising specific Huts on the network to request contextual materials, increasing their sale rate and my user experience.
I am a developer who operates a popular bot on a social media platform and users often consult my bot for a range of issues.
I connect my bot to a Hut on the network and preference it such that, for all travel enquiries on my bot, I route them to a large corporate travel company from whom I will receive a referral fee in ENT for each query specifically routed to them. ...
As with any large network infrastructure, we imagine there will be interest from participants looking to market to end users. Huts can be used to inject marketing materials into the network in exchange for ENT. Through the provision of this sponsored content, client-facing Huts requesting information from Hut34 can avoid paying ENT by agreeing to receive an equivalent amount of advertising material instead. Marketing providers are extractive as they pay to receive network benefits without adding to the knowledge pool.
I operate a digital marketing agency representing a range of clients.
I set up an account on the managed Hut34 Platform. I contribute fiat to my integrated wallet which is then converted to ENT with minimal friction via the Hut34 payment gateway. I setup my preferences so that contextual advertisements are sent to services which have demonstrated user interest in particular topics.
The Huts distributing these advertisements to their users and network receive ENT payment. I can start selling my marketing services to real-world clients who have an interest in accessing potential new customers from the Hut34 Network.
Another form of contributive service, these would provide the Hut34 Network with a unique stream of data. This data can provide unique opportunities for developers, academics and market analysts who can make use of large distributed data pools.
Data suppliers may be primary sources, such as an IoT bot which measures and reports local weather conditions. Alternatively, they may be secondary or tertiary sources, such as a web crawler which aggregates information related to the number of published articles on a particular topic. A service such as this should be relatively easy to connect to the Network, and should provide benefit to the developer from the potential flow of ENT proportional to the value and usage of the data supplied.
I have an interest in tracking exact temperatures across mainland Europe.
I assemble, market and sell cheap IoT temperature sensors that anyone can set up in their house and easily connect to the Hut34 Network.
My consumers, for a small outlay to purchase the sensor(s), can earn a small ongoing revenue of ENT by providing me (and anyone else on the network) with accurate temperature data on request, automatically.
These services effectively provide computational services to other Huts on the Hut34 Network. This may involve provision of computing resources for generic large-scale data processing, or specialised handling of complex queries; for instance, analysing a web of financial data to produce some form of suggestion or recommendation for action.
It may also involve directly improving the network; an example of this might be an intelligent ranking system for Hut lookup, which improves the speed or quality of answers through the network given a large volume of potential connections. These services would contribute to the network without necessarily communicating directly with end users.
I deploy a Hut on the Hut34 Network that is connected to my proprietary AI ranking function.
Other services on the Hut34 Network can elect to use my proprietary ranking function, due to perhaps its improved results. The use of my service has an ENT cost which I collect every time my ranking service is used.
Users of my service would make the economic decision that the ENT cost I demand would be offset by the improved ranking results which would allow them to better monetise their own service.
Some other potential use cases, that fall outside the above categorisations, but nevertheless may add utility to the network.
I build a platform by setting up all the required Hut34 Network infrastructure and offering Hut hosting to clients.
All the Huts I manage get fast and cheap connections between each other, and anytime they consult or supply solutions to the full Hut34 Network, I take a cut.
I then raise ENT by managing local routing and by providing my network’s knowledge to the Hut34 Network as a whole.
I connect my chosen messenger interface to a Hut on the network.
I preference it such that, I only receive higher level domain queries requiring expertise response.
I may only respond to a limited number of daily queries however due to their extremely high information or knowledge content I receive high ENT payments for both.
I could, for example, return these high value answer with advertisements (agreed to by querying user or Hut) thus further increasing the ENT I earn for each response I give.
Walled or proprietary token based ecosystems in some ways seem incongruous with the goal of building an open, global, decentralised network and system.
That said however, the issuance of a unique token affords some benefits and utility that at this stage of the Hut34 Project outweigh these higher level concepts. A successful token sale will afford the Entropy Foundation the full opportunity to fund the Hut34 Project to its successful implementation.
It is intended that Entropy tokens will provide the sole means for services to participate on the Hut34 Network. ENT will provide both access rights and act as the sole medium of exchange for the network. Ownership of ENT Tokens does not however entitle holders to any earnings of the Entropy Foundation, provides no voting or ownership rights, nor does it confer holders any legal recourse to the Entropy Foundation.
A total of 100 Million Entropy Tokens will be created prior to the token sale. This supply will be fixed with no more to be issued.
As part of its roadmap, The Entropy Foundation intends to build or partner with appropriate technologies and gateways to facilitate full and, where possible, frictionless interoperability of the ENT Token with other cryptocurrencies. In a sense opening up the economics of our system further; whilst of course protecting the needs of the Hut34 Project, its participants and associated Entropy Token holders.
In a single token economy we also have some concerns that price stability, or a lack thereof, could cause unintended economic consequences. Some systems have attempted to solve this by issuing multiple tokens with differing characteristics. We remain cognisant there remain unknowns in all these systems. The Entropy Foundation and will actively monitor the stability of the Entropy Token ecosystem and if required, adjust accordingly, to protect the integrity of the Hut34 Project.
Various methods have been tested for recent token sales. Hut34 will make use of a pre-sale event in combination with a market based pricing event, in order to provide the fairest mechanism for participation. The pre-sale event allows early supporters of the project to receive an incentive for their support in the form of a guaranteed allocation and a pricing bonus, while the auction event allows the market to fairly price the Entropy Tokens for all.
1. Pre Sale:
The PreSale will run for a period of 14 Days.
Entropy Tokens can be pre-purchased with ETH.
PreSale participants will also receive a 10% bonus allocation of ENT.
Starts after PreSale
A smart contract based ‘dutch’ style auction will begin at the completion of the PreSale period.
Participants will only be able to send ETH to the token auction address.
Auction will continue for either (i) a period of 14 days, or (ii) when the total sale cap is reached.
Distribution of Entropy Tokens
100 Million Entropy will be generated in total, to be distributed as follows:
- A maximum of 50% to token sale participants.
- In the instance the ETH sale cap is met prior to the the percentage cap, excess ENT tokens will be transferred to the Entropy Foundation for purposes described at 2 below.
- A minimum of 30% will retained by the Entropy Foundation for:
- platform partnerships,developer incentivisation programs
- Entropy token management initiatives,
- employee expansion and future development,
- token sale related expenses.
- 20% will be allocated to the Entropy Foundation team members and advisors which will be subject to a two year vesting schedule with a 6 month cliff. This means we will mature one-quarter of our tokens every 6 months.
All tokens will be held using multi-signature wallets according to industry best practices and token issuance will occur at the completion of Step 2.The Auction.
All funds received through the Entropy Token sale will be utilised by the Entropy Foundation as follows:
Hut34 Project development will build upon Ethereum, it's ecosystem of qualtity open source projects and then layering our core feature requirements of Routing, Ranking and Monetisation utilising Dapp micro services.
Focus will be on marketing Hut34 to its potential user base through increasing awareness and knowledge of how it can add value to its participants. Business development efforts will be focused on identifying and forming relationships with new projects.
Legal requirements include corporate setups and legal contingency expenses.
Building Hut34, the Entropy ecosystem, and the global knowledge economy is a long term project and will require sensible capital management strategies and management of the Entropy Token marketplace. Funds will be allocated to achieve this.
Timothy McNamara B.Sc
System Architect Tim delivers over 20 years experience in technology, finance and commerce. He has extensive experience in early stage technology development, market exchanges, and delivery of fintech projects; both on the ground, and as an investor and advisor. In addition to Hut34, most recent projects include development of artficial intelligence and chatbot services for early stage fintech projects.
Nicholas McDowell B.Eng
Chief Technical Officer Nicholas brings to bear an extremely rich body of experience, covering areas so diverse they extend from Silicon Valley startups, to the Visual FX industry, to delivering on-the-ground solutions for the US Department of Defense. His capabilities enable him to facilitate the orchestration of architecture, design, development, test and successful delivery secure, robust and tested platforms and products that breathe agility through world class continuous integration and development pipelines.
Paweł Mordaszewski B.Sc
Full Stack Engineer Pawel is a senior software engineer, battle hardened by startups working on AI, Data Lakes, IoT, Blockchain and dApps. His mantra is test driven development and smart continuous integration and deployment pipelines. He is passionate about the future of the digital economy, digital industrial revolution and happiest when remote working from a Subaru driving around Australia.
Shahbaz Khurram M.Comp Sc
Full Stack Engineer Shahbaz has completed a Masters in Computer Science and has over 10 years development experience. He is avid supporter of open systems technology in addition to working extensively in Enterprise Applications, Mobile Apps and Bot development. Most recently development focus has been startups in blockchain technology, cryptocurrencies and the Ethereum platform.
Fred Westling B.Eng B.Sc
Computer Scientist & Engineer Fred is a roboticist and computer scientist, with significant experience in technical writing and research. Taught by leaders in his academic fields, he provides a youthful and modern perspective based firmly in the cutting edge of computing.
Nicolas Richter B. Arts(Arch), B. Arch (Hons)
Communication Nick has a broad business experience over 20 years in seeding and leading teams in consulting, branding and creative agencies. Nick has conceived strategies and lead creative for outlying success campaigns for government agencies, private clients, leisure industry and state elections. He is our non-tech thinker, sometimes futurist, communicator, and user analyst.