## White Paper

white paper

A node willingly validates and stores the complete history of transactions on the network. To run a node, you need to stake a certain amount of NewBit (NEBTC). The staking amounts differ depending on NFT you hold (the package you purchase).

#### 1. Introduction

Blockchain technology has made significant strides in its development, which enables us to get closer to a decentralized, trustless Internet, transparency of transactions, and more. The possibilities of blockchain technology are truly endless. One of the most relevant use cases for blockchain is cryptocurrencies.

A cryptocurrency is a tradable digital asset, built on blockchain technology that only exists online. Cryptocurrencies are a new and exciting way to conduct transactions although their price volatility makes them difficult to use for everyday transactions. An increasing number of people are realizing the benefits of crypto assets and their promising future.

From DeFi (Decentralized Finance) to NFTs (Non-Fungible Tokens) to DAOs (Decentralized Autonomous Organizations), blockchains open up a variety of opportunities. Especially, NFTs are believed to be the cornerstone of next generation digital infrastructure and the future of blockchain technologies.

Many expect digital assets will be a solid alternative to fiat currencies for global finance.

However, there are a few problems with cryptocurrencies that need to be addressed. Cryptocurrencies are highly susceptible to cyberattacks, and hackers have been known to steal large sums of money from users.

#### 2. Security Issues in Crypto

###### 2.1 How to keep crypto secure

There are several different types of crypto wallets to store cryptocurrencies: custodial wallet, cold wallet, hot wallet, paper wallet, etc.

Exchange wallets are custodial accounts provided by the exchange. Using a custodial wallet seems to be the simplest and most convenient, but it is important to note that there remains security risk of leaving crypto in another party’s possession. In case the exchange is hacked or your account becomes compromised, your funds would be lost. The user of this wallet is not the holder of the private key to the cryptocurrency that is held in this wallet. You can be locked out of your account.

Many of the users do not know how smart hackers are and how important it is for them to keep their login IDs and passwords secure. Hackers can steal their crypto assets from their accounts by stealing their personal information. Even though security best practices recommend that you have unique passwords for all your applications and websites, many people still reuse their passwords. Once hackers steal IDs and passwords, they will be able to use them for malicious purposes. So we need to change passwords periodically.

Cryptocurrency exchanges have been hacked through “brute force” attacks, in which hackers use powerful computers to guess passwords and gain access to accounts. Brute force attacks are typically carried out on exchanges that do not have strong security measures in place.

Hot wallets are online wallets that run on Internet-connected devices like computers, phones, or tablets. These wallets generate the private keys on these Internet-connected devices. While a hot wallet can be very convenient in the way you are able to access and make transactions with your assets quickly, they also lack security.

Many cryptocurrency holders use hardware wallets like USB sticks. The hardware wallet, also known as the cold wallet, is believed to be the safest option for storage since it is not connected to the Internet. But what if the hardware wallet is lost, damaged, or stolen?

Due to the vulnerability of security, it is recommended that features like password protected access, biometric authentication, two factor authentication, and others should be integrated into the wallet.

Fingerprints are commonly used but not secure since they are easily forged or duplicated. Skin conditions like sweat, stains or peelings of the skin affect the accuracy of identification. Also, the age and occupation of a person may cause some difficulties in capturing a complete and accurate fingerprint image, resulting in a serious problem when fingerprint authentication is rejected.

Iris scanning technique can also be tricked by hackers, even can be fooled by high quality photo.

Over the years many users have lost access to their private keys by forgetting passwords or misplacing hardware wallets. According to Chainalysis, about 25% of bitcoins are believed to be lost forever in this manner. In other cases, Bitcoin owners might pass away without revealing the password to their wallets thus leading to permanent loss of the Bitcoins in those wallets.

Many wallet providers use Mnemonic Phrase, or recovery phrase, because it is easy to copy and backup. Mnemonic phrase is a series of words (12 or 24 words) generated by the wallet that give the user access to the crypto associated with that wallet. It should be stored somewhere safe, preferably offline on a piece of paper, which is troublesome and not easy for the following reasons;

• Loss or theft or misplacement
• Gradual deterioration of legibility over time
• Lack of awareness of backup location to family or heirs
• Catastrophic destruction due to natural disasters like floods or fire

• ###### 2.2 Concerns

what if you forgot your PIN number? Is there any safer method than using PIN or fingerprint? Is there any way to secure crypto assets against hacks with no need to store the private keys or Mnemonic Phrase?

#### 3. Finger Vein Authentication as a solution

Identity verification has become an integral part of people’s daily life. It is needed when we log into computers or electronic accounts, use ATMs (Automated Teller Machines), and get entrance permission to a bank or an area. There are many ways to verify someone’s identity. The usage of a password or fingerprints is the most popular, but it tends to be obsolete due to some problems to be solved.

Finger vein recognition is a relatively new method of biometric authentication. It matches the vascular pattern in an individual’s finger to previously obtained data. Finger vein authentication is replacing existing methods such as a password or fingerprints since it offers a higher level of security. The technology is currently in use or development for a wide variety of applications, including credit card authentication, automobile security, employee time and attendance tracking, computer and network authentication, end point security and automated teller machines. Finger vein authentication is considered as a possible solution to the threat of hacks and cyber-attacks.

###### 3.1 Features of Finger Vein Authentication
• Accuracy
• The finger vein authentication technology has recently received much attention as a new method for biometric authentication because the authentication accuracy is high compared to other forms of biometric technologies such as fingerprint authentication.

• Uniqueness
• Finger vein biometrics identifies a user based on the vein patterns in their fingers, which are unique to every person.

• Usability
• Finger vein recognition claims to have superior usability characteristics where false acceptance or rejections hardly occur, close to zero.

• Security
• Veins are located inside the body, so it is extremely difficult to read or steal. There is little risk of forgery or theft. Unlike fingerprints, finger veins do not leave any trace during the authentication process and so cannot be duplicated.

• Constancy
• Finger vein patterns remain relatively constant through the adult years.

• Minting rewards
• Minting rewards
• D.Volt rewards

• #### 4. D.Volt Wallet

Seoul-based eTunnel, Inc., has developed a crypto wallet, called D.Volt. The D.Volt has adopted a FINGER VEIN AUTHENTICATION technology in order to provide a more advanced decentralized crypto wallet that is free of hacks or loss.

###### 4.1 Finger Vein is a Private Key

With D.Volt Wallet, there is no need to use mnemonic phrase, PIN number or fingerprint. User’s finger vein acts as a private key, which has little risk of loss, forgery, theft, duplication or hacking. When transferring cryptocurrencies to others, users use their finger vein instead of PIN number or fingerprints.

###### 4.2 How to Create Private Keys

Private keys are created and managed by user’s finger vein. Since hemoglobin in the blood absorbs near-infrared lights, vein patterns appear as a series of dark lines. The finger vein reader captures an image of the finger vein patterns. The captured image is then converted into data. The data are encrypted and stored as a biokey, which is double encrypted to create private keys (how to create private keys with biokeys cannot be specified). Public keys are generated from the private keys. The public keys are stored in the wallet, but the private keys are not, for a security reason.

###### 4.3 How to Sign a Transaction

The user can recover the private key with their finger vein at the time he needs to sign a transaction. The user puts his finger on the finger vein reader (X-Scanner). The user’s finger vein is compared against the stored biokey. If both are identical, then it instantly generates the private key to sign a transaction. The private key disappears right after signing a transaction. Private keys are not stored anywhere. Users use their finger vein instead of private keys when signing transactions. Users do not need to use PIN number or fingerprints.

#### 5.D.Volt DAO

D.Volt DAO is a Web 3.0 platform. D.Volt is an integrated solution wallet that supports almost all different types of cryptocurrencies including NFT tokens. Unlike other crypto wallets on the market, D.Volt platform has D.Volt crypto wallet, NFT marketplace, DeFi, Metaverse, and payment gateway. In the NFT marketplace, users can store and retrieve different kinds of NFT tokens. DeFi platform enables users to exchange one cryptocurrency they hold for the equivalent value of another cryptocurrency (swap), and to use DeFi services where users can lend out their cryptocurrency or receive a loan. Payment gateway enables users not only to pay for goods and services with their cryptos in the wallet but also withdraw cash from ATM.

D.Volt provides outstanding features as follows:

• Deposit
• Withdrawal
• Swap
• NFT Marketplace
• DeFi (Lending/Borrowing)
• Metaverse
• Payment Gateway

• #### 6. NEBTC Network

NEBTC Network, designed to be automated and decentralized, runs on a blockchain protocol fully and autonomously in accordance with rules encoded via smart contracts (DAO Governance). D.Volt platform is operated on NEBTC Network, which is governed by DAO (Decentralized Autonomous Organization).

###### 6.1 DAO Governance

A DAO, a decentralized autonomous organization, is a software-enabled organization built and governed by smart contracts on a blockchain network. A smart contract is a set of rules written in computer code on a blockchain network that enables a network of computers to communicate and execute pre-programmed transactions once certain conditions are met. A DAO does not have a CEO or a board. It is owned by the members (nodes) and make decisions based on proposals that nodes vote on.

A DAO has received much attention because it offers many advantages such as transparency, no corruption or owner risk, equitable distribution of earnings, etc.

###### 6.2 Consensus Algorithm; PoA-NP (Proof of Authority-Node Pool)

NEBTC Network uses Proof of Authority-Node Pool (PoA-NP). PoA-NP is a community-based consensus algorithm that introduces a practical and efficient solution for blockchain networks.

A node pool is a community of nodes who own a Vein-X NFT which can be obtained by purchasing a D.Volt package designed to airdrop NEBTC coins. NEBTC coins airdropped is locked lifelong but used only to form an x node. Anyone who receives NEBTC airdrop deserves to run an x node. An x node is a fundamental unit that comprises a node pool. X node holders can delegate to node pools if they wish to participate in the protocol and receive rewards.

There are two ways an x node holder can earn rewards: by delegating their x node to a node pool run by someone else, or by running their own node pool.

The number of x nodes delegated to a certain node pool is the primary way the NEBTC Network protocol chooses who should add the next block to the blockchain and receive a monetary reward for doing so. The more x node is delegated to a node pool, the more likely it is to make the next block – and the rewards that it earns are shared between everyone who delegated their x node to that node pool.

Node pools are run by a reliable operator with the knowledge and resources to run the node on a constant basis.

In NEBTC Network, transactions and blocks are validated by selected node pool operators, called validators. Selected node pool operators run software allowing them to put transactions in blocks. The process is automated and does not require node pool operators to be constantly monitoring their computers. It, however, does require maintaining the computer uncompromised.

• Individuals qualified for an x node earn the right to become node pool operators.
• New node pool operators acting as a validator can be selected in accordance with the size of the node pool they generate.
• Selected node pool operators(validators) take turns signing and creating blocks at a set period.
• The first selected node pool operator must be registered in the Genesis Block.
• Selected node pool operators can be removed through voting among operators.

• PoA-NP of NEBTC Network delivers comparatively fast transactions.

###### 6.3 A Major Role of a D.Volt package in NEBTC Network

A D.Volt package is composed of a finger vein reader, a D.Volt wallet, and a smart watch. It has been developed for the purpose of setting up nodes in the NEBTC Network. Each D.Volt package is NFTized and provides a D.Volt NFT as a certificate of authenticity. Each D.Volt package contains its own information such as its model name and the number of NEBTC airdrop coins given. Whoever wants to run a node should have a D.Volt NFT. Airdrop coins are used only to set up a node. Anyone with NEBTC airdrop coins is eligible to run a node.

###### 6.4 Nodes in NEBTC Network

A blockchain consists of numerous blocks of data. These blocks of data are stored on nodes that can be compared to small servers. On a blockchain, all the nodes are connected to each other and they continuously exchange the newest information on the blockchain with each other. This ensures all nodes are updated.

In NEBTC Network, there are three kinds of nodes; x-nodes, super nodes and authority nodes.

An x-node is a fundamental part of NEBTC Network blockchain network. Only x-nodes are eligible to build a node pool, a community that is composed of not less than three x-nodes.

There is no limit to the number of node pools, but a total number of super nodes and authority nodes is initially set at a minimum of 100 for the stability of the blockchain network. If needed, the number of super nodes can be increased (or decreased) by voting.

The total number of x-nodes in a node pool can serve as a criterion for selecting validators. According to the size of the node pool, super nodes and authority nodes are determined; Node pools from 1st to 5th are called authority nodes, and 6th to 100th super nodes.

###### 6.4.1 X-node

X-nodes receive rewards in return for a service, such as either participating in an existing node pool or newly building their own node pool. An x-node should be in a node pool to receive x-node rewards.

###### 6.4.2 Super node

Super nodes communicate with the blockchain while relying on authority nodes to provide them with the necessary information. They store a copy of the blockchain, and broadcast transactions for processing.

Super nodes receive additional rewards in return for a service, such as storing and communicating with the blockchain.

###### 6.4.3 Authority Node

Authority nodes act as a server in NEBTC Network. Their main tasks include maintaining the consensus between other nodes and verification of transactions. They also store a copy of the blockchain, thus being more secure and enable custom functions such as instant transfers and private transactions.

When making decisions for the future of a network, authority nodes are the ones that vote on proposals.

Authority nodes receive additional rewards in return for a service, such as verifying transactions, broadcasting transactions, storing a copy of the blockchain, and so on.

Airdrop & NFT Registration Procedures

#### 7. Tokenomics

• Ticker Symbol: NEBTC
• Total Supply: 21,000,000
• Airdrops for Nodes: 10,000,000
(The airdrop coins for nodes will be locked eternally, only used as the criteria for setting up a node
• Minting Rewards: 11,000,000 (Circulating Supply)

###### 7.1 Airdrops for Nodes

The ones who purchase D.Volt packages receive D.Volt NFT. Upon registration of NFT on NEBTC Blockchain Network, the holder will receive airdrops.

Of 10,000,000 NEBTC Airdrop, 4,000,000 NEBTC is airdropped for node set-up. To run a node, you should stake as many NEBTC coins as airdropped.

※ How to calculate the number of coins to stake when setting up a node

$$If \frac{100*p}{2^{a-1}}\leq M \ Then\\ \qquad A=\frac{100}{2^{a-1}}$$

$$Else\\ \qquad A=\frac{M}{P}$$

※ Number of coins to stake (A)

SeriesNumber of Packages availableAirdropNEBTC to stake (A)
X1 10,000 100 A=0
X2 20,000 50 A≤50
X3 40,000 25 A≤25
X4 80,000 12.5 A≤12.5
• X1 contains 100 NEBTC airdrop. X1 holders do not need to stake any additional NEBTC coins to run a node. 10,000 packages for X1 series are available.
• X2 contains 50 NEBTC airdrop. X2 holders need to stake additional 50 NEBTC (or less) coins to run a node. 20,000 packages for X2 series are available.
• X3 contains 25 NEBTC airdrop. X3 holders need to stake additional 25 NEBTC (or less) coins to run a node. 40,000 packages for X3 series are available.
• X4 contains 12.5 NEBTC airdrop. X4 holders need to stake additional 12.5 NEBTC (or less) coins to run a node. 80,000 packages for X4 series are available.

• ###### 7.2 Rewards for Nodes

There are two types of node rewards:

• Minting rewards
• D.Volt rewards

• ###### 7.2.1 Minting Rewards

A total of 11,000,000 NEBTC will be minted for rewards, 8,700,000 NEBTC will be distributed to the ones who run a node, 870,000 to the ones who publicize the D.Volt DAO, and the remainder (1,430,000) to the ones who participate in a D.Volt staking program or other promotional events.

Minting rewards are distributed autonomously in accordance with rules encoded via smart contracts. To receive minting rewards, every x-node should make a choice of either participating in an existing node pool or building his own node pool. Only x-nodes involved in a certain node pool are qualified for minting rewards. When participating in a node pool, NEBTC coins must be staked, which is not more than the number of NEBTC airdropped.

Minting rewards are programmed to be offered at a certain rate. As the staking for nodes increases, the demand for NEBTC is expected to increase accordingly. Daily minting amount is subject to change in accordance with the demand for NEBTC coins on the market.

###### 7.2.2 D.Volt Rewards

D.Volt rewards are to share profits generated in the D.Volt DAO (Web 3.0 platform).

70% of the profits are shared by all x-nodes, while 30% are given out to super nodes and authority nodes in proportion to the number of x-nodes in the node pool.

D.Volt rewards are divided into:

• 70%: Node Reward (all x-nodes)
• 27%: Node-pool Reward (all super nodes and authority nodes)
• 3%: Donation

• Super nodes may want to enlarge the size of their node pool, so that they can get more rewards.

Donations are managed separately in the donation account. Super nodes can suggest ideas for how to spend the donations. Authority nodes should make a final decision in agreement before spending.

The flow of funds can be traced in Explorer and details will be posted on the Website.

※How to calculate node pool reward

$$Rm=(MNx/Nx) *0.27Pt$$

$$or\\ Rm = \frac{MNx*0.27pt}{Nx}$$

• Rm: My node pool reward
• Nx: Total number of x-nodes in super nodes
• MNx: Total number of x-nodes in my node pool
• Pt: Total Profits from D.Volt DAO Platform

• #### 8. Vein-X Finger Vein Authentication

Vein-X finger Vein authentication was developed and patented by Vein-X.

- United States Patent, European Patent (3057034), Japan Patent (5951817), and Korea Patent (10-1496852).

※ Features of Vein-X Finger Vein Authentication

• 99% of accuracy (FAR=0.0001%, FRR=0.01%)
• Able to accurately recognize the identical vein patterns in spite of the different posture and position of fingers
• Solved the problem of tracking errors occurring under uneven illumination
• Can be used outdoors (20,000 lux) - the existing method only works below 3,000 lux
• Works at -20℃ to 60℃- the existing method only works at 5℃ to 35℃
• Fast processing less than a second
• Each person can use 8 fingers for authentication (3 patterns per finger, total 24 patterns can be used)

• Table 1. The Process of Feature Extraction

###### 8.1 Image Capture

Due to the property of the hemoglobin having a lower absorbance to the NIR wavelengths than the visible ones, the camera can capture an image containing the finger veins.

###### 8.2 Image Inversion

In order to capture clearer vein patterns, the captured image is converted into gray by using Gray Conversion method and then inversed, which enables to reduce memory usage and shorten processing time.

• Gray Conversion

A new formula was developed to capture clearer vein patterns by changing the proportion of red, green and blue.A new formula was developed to capture clearer vein patterns by changing the proportion of red, green and blue.

•Inversion

The image is inversed to reduce memory usage and shorten processing time.

Table 2. (A) Original Image (B) Gray Scale Conversion (C) Image Inversion

###### 8.3 SWA (Shifted Waveform Analysis) Algorithm

In order to extract clear vein patterns from the captured image, SWA (Shifted Waveform Analysis) algorithm was developed and applied. SWA algorithm is a method of using the phase difference of certain X axis and Y axis. The original signal is shifted by d to get . δn is obtained by calculating the difference between and ( ).

δn Meaning
0 intersection of and
+ The pixel of the applied location is bright
- The pixel of the applied location is dark

Table 3. Meaning of the value δn

The vein pattern is darker than the other tissue in the captured image. So the location of veins can be detected by padding the positive numbers of Grayscale with zeros, and applying threshold to the value after squaring the negative numbers of data. The advantages of the SWA algorithm are as follows; (i) the great performance to detect a small variation of a fiducial point under uneven illumination condition, (ii) the ability to detect a fiducial point in various bandwidth, (iii) and relatively fast calculation.

The dotted line in Figure 1 represents the SWA signal, and the solid line represents the original signal X(n). SWA signal maintains the original signal in the increasing section, while SWA signal keeps the peak from p to d at the peak point value where the slope of the signal is zero. After then, SWA signal repeats the declining process until it becomes the same as or smaller than the original signal, from d to x. At this time, two types of features are extracted as shown in Figure 2.

Figure 3 is in regard to the fiducial point of finger joints, and Figure 4 shows the direction in which SWA algorithm applies. To extract finger joints, SWA algorithm is performed only once as shown in Figure 3. To extract features, SWA algorithm is performed Yn times on the Y axis shown in Figure 4-(A) and Xn times on the X axis shown in Figure 4-(B).

Figure 1. SWA Algorithm Example

Figure 2. Two types of a peak point extracted from SWA and the original signal

Figure 3. Fiducial point for the detection of finger joints

(A)                    (B)

Figure 4. Directions in which SWA algorithm applies

###### Finger Joints Detection Algorithm

Every finger (except a thumb) has two finger joints. The location of two finger joints can be detected by image processing. It works as follows: (i) obtain SWA signal by applying SWA algorithm to the inverted image – by applying SWA algorithm to (X0, Yc) (X1, Yc) … (Xn, Yc) on Yc axis in Figure 3. (ii) calculate the location of high values as shown in Figure 2. (iii) perform repeatedly both on the left side and the right side of Xc fiducial point.

###### 8.5 Difference Between the Original and SWA

To obtain the values required for the next process, calculation of the difference between the original and the SWA is performed, as many times as in 4.3.

Figure 5. Feature of Peak Point shown on the difference of two signals

###### 8.6 Feature Detection Method

The threshold with values calculated in 4.5 is set and the value of the pixel at the peak point is converted into zero(white). Converted value reconstructs the image using X axis vector and Y axis vector with black backgrounds. At this time, features of vein patterns can be extracted by the synthesized vector of X axis vector and Y axis vector.

###### 8.7 Generate Biokey

After inverting the pixel value to brighten the vein patterns, SWA algorithm is applied and the difference between the original image and SWA result value is calculated. The image is reconstructed with the features of vein patterns which is extracted by applying Feature Extraction Algorithm and removing background and noise. The extracted image is converted into data, which is encrypted to generate 2kb Biokey. Biokey is composed of a public key and a private key.

###### Explorer

A service that can display the details of all transactions created on the blockchain network.

###### Dashboard

A service that monitors the recent block time, average block time, and gas price of nodes running on the network. If you check transaction information through Explorer, check the network status through Dashboard.

###### Decentralized Wallet

A wallet service in which each individual manages their private key through Mnemonic as a decentralized wallet. It allows pure P2P digital transactions without a separate entity (institution) that manages assets.

###### Synchronous Server

A service that directly connects and processes the address, deposit, and withdrawal requests required for hybrid wallet, multi-wallet and various service operations with the blockchain node.

###### Hybrid Wallet

All transaction details are recorded on the block chain, and transaction details are provided by using the DB as an auxiliary ledger. In addition, if necessary, a wallet service that provides a side-chain function through Wrapping/Un-Wrapping

###### Multi Wallet

A wallet service that connects legacy business and blockchain business models by providing various APIs to be linked with external systems such as finance, payment, and communication

#### D.Volt Wallet

A wallet service that manages virtual assets through a finger vein sensor

#### Smart Watch

Interlocking finger vein sensor and smart wallet in the early stage

#### Finger Vein Sensor

Sensor that manages finger vein information

#### Disclaimer

This white paper is to provide general information and is subject to change as required. We do not guarantee the accuracy of the statements made and we expressly disclaim any warranties or representations with respect to but not limited to the following;

• No assurance is given as to the future performance or value in respect to NEBTC.
• Unless a potential user fully acknowledges and accepts the nature of Vein-X business model and understands the possible risks associated with possessing, transferring and storing NEBTC, they shall not participate in any event on Vein-X.

• However, we shall make every effort to ensure that all information available is up to date:

• in Vein-X’s Whitepaper
• on Vein-X’s Website
• on Vein-X’s Telegram