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Yubiai Yellow Paper
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Yubiai

Long Paper

Ignacio Britos, Benjamin Pieres, Leandro Venezia

April 2023

Abstraction

Yubiai is a decentralized Web3 Marketplace built on Ethereum, revolutionizing ecommerce with secure, convenient, and cost-effective P2P transactions for services, digital goods, and tangible products. Utilizing smart contracts, Proof of Humanity used as a badge to authenticate users and ensure user integrity, Kleros for dispute resolution, and the Yubiai Token ($YBI) for incentives and governance, Yubiai ensures seamless user interactions. Future implementations include Curate system, Harberger tax ads, and Liquid Voting Governance. The platform's modular design and extensible architecture provide a foundation for ecosystem expansion and community-driven governance.

  1. Introduction

Yubiai is a decentralized Web3 Marketplace built on Ethereum that leverages blockchain technology to enable secure, efficient, and cost-effective P2P transactions for services, digital goods, and tangible products. Utilizing smart contracts and protocols such as Proof of Humanity for authentication(as badge), Kleros for decentralized dispute resolution, and the Yubiai Token ($YBI) for incentives and governance, Yubiai ensures trustless and autonomous transactions. The platform's architecture is designed for scalability, with compatibility for EVM chains such as Gnosis, Arbitrum, and BNB, enabling seamless integration and expansion. This yellow paper delves into the technical aspects of Yubiai's core features, protocols, tokenomics, and future implementations, providing a comprehensive understanding of the platform's underlying technology and vision.

  1. Background and Motivation

The traditional ecommerce landscape is dominated by centralized platforms, which often suffer from high fees, lack of privacy, and control by a single authority. The increasing demand for decentralized solutions led to the emergence of blockchain technology, which enables secure, transparent, and trustless transactions. Yubiai was born out of a desire to leverage the benefits of blockchain technology and create a decentralized Web3 Marketplace that allows users to engage in P2P transactions with minimized costs and enhanced security. By utilizing Ethereum and EVM-compatible chains, Yubiai aims to provide a scalable and accessible platform for users to trade goods and services while maintaining their privacy and autonomy. The motivation behind Yubiai is to revolutionize ecommerce and empower individuals through decentralization, creating a fairer and more efficient trading environment.

  1. Objectives and Scope of Yubiai

The primary objective of Yubiai is to create a decentralized Web3 Marketplace that facilitates secure and efficient P2P transactions for goods and services. The scope of Yubiai encompasses the following key areas:

  1. Provide a user-friendly platform that allows individuals to engage in P2P trading while enjoying the benefits of decentralization.
  2. Enable lower transaction costs by utilizing Ethereum and EVM-compatible chains, making the platform more accessible and cost-effective.
  3. Ensure enhanced security and privacy by employing Proof of Humanity and Kleros protocols for authentication(as badge) and dispute resolution.
  4. Create a robust governance system that allows users to have a say in the platform's development and operation through a decentralized autonomous organization (DAO).
  5. Foster a thriving ecosystem by integrating additional features such as NFT Harberger tax ads for managing digital advertisements.
  6. Encourage user engagement and retention through incentives, such as the Yubiai Token ($YBI), which can be used for premium features and governance participation.

By focusing on these objectives, Yubiai aims to redefine ecommerce by offering a decentralized, secure, and efficient marketplace for the exchange of goods, services, and digital assets.

  1. System Architecture

Yubiai's system architecture consists of several interconnected components, designed to provide a seamless and secure marketplace experience for users. The main components are:

  1. Ethereum Blockchain: As the underlying foundation, Yubiai is built on the Ethereum network, which provides a secure, decentralized, and transparent platform for executing smart contracts.
  2. EVM-compatible Chains: To ensure scalability and reduce costs, Yubiai is compatible with Ethereum Virtual Machine (EVM) chains such as Gnosis, Arbitrum, and BNB.
  3. Smart Contracts: Yubiai utilizes smart contracts to facilitate transactions, manage user accounts, and enforce marketplace rules.
  4. Proof of Humanity (PoH) Protocol: The PoH protocol serves as the primary badge authentication mechanism, ensuring that users are human and preventing bots and duplicate accounts.
  5. Kleros Protocols: Yubiai integrates Kleros protocols, such as Escrow and Curate, to provide a decentralized dispute resolution system and a curation mechanism for the platform.
  6. Tokenomics: The Yubiai Token ($YBI) is used to incentivize users and provide utility within the platform, including governance, staking, and access to premium features.
  7. Front-end Application: A user-friendly interface that allows users to interact with the marketplace, manage their accounts, and engage in transactions.

By combining these components, Yubiai's system architecture enables a decentralized and secure environment for trading goods, services, and digital assets while ensuring user autonomy and low transaction costs.

  1. Protocol Overview

The Yubiai Protocol consists of various interconnected modules and features designed to provide a comprehensive and efficient marketplace experience. The key elements of the protocol are:

  1. User Authentication: Proof of Humanity (PoH) protocol is used as a badge to authenticate users, ensuring that they are human and preventing duplicate accounts or bots from participating in the marketplace.
  2. Dispute Resolution: The Kleros Escrow protocol is integrated to handle disputes between buyers and sellers, enabling a decentralized, secure, and transparent arbitration process.
  3. Curation: The Kleros Curate protocol is used to maintain a list of approved suppliers, vendors, or products, ensuring that only high-quality goods and services are available on the platform.
  4. Tokenomics: Yubiai's native token, $YBI, serves various purposes, including governance, staking, and providing access to premium features within the platform.
  5. Governance Mechanism: Yubiai's governance mechanism allows token holders to vote on proposals related to platform development, updates, and policy changes, ensuring that the platform evolves according to the community's needs and preferences.
  6. Future Implementations: Planned features and improvements for the Yubiai Protocol include NFT Harberger tax ads, and Liquid Voting Governance.
  7. Platform Modules: Yubiai consists of multiple modules, such as Services, Physical Goods, and Digital Assets(courses etc), which facilitate a comprehensive marketplace experience for various types of transactions.

These elements combine to create a robust and efficient protocol that promotes a secure, decentralized, and user-centric marketplace experience for trading goods, services, and digital assets.

  1. Tokenomics

Yubiai's native token, $YBI, is an integral part of the platform and serves various purposes to facilitate a seamless and efficient marketplace experience. The key aspects of Yubiai's tokenomics are:

  1. Utility: The $YBI token can be used within the platform for various use cases, such as unlocking freemium options on listings, purchasing premium listings, leveling up user profiles, and participating in governance using the Proof of Humanity (PoH) 1p1v system.
  2. Governance: YBI holders with PoH-verified profiles can participate in the platform's governance through a decentralized autonomous organization (DAO). They can vote on proposals impacting the platform's development and operations, ensuring that the platform evolves according to the community's needs and preferences.
  3. Staking: Users can stake their YBI tokens to earn rewards, encouraging them to hold the token and be more involved in the platform.
  4. Token Buyback: Yubiai may implement a token buyback mechanism where a percentage of the platform's revenue is used to buy back and burn YBI tokens, helping to maintain a stable token value.
  5. Referral Program: Yubiai may implement a referral program where users are rewarded with YBI tokens for bringing new users to the platform.
  6.  Airdrop: Yubiai may also implement an airdrop mechanism to distribute free tokens to users joining the platform, encouraging them to use and promote the platform.

These tokenomics components work together to create a sustainable and efficient token economy that supports the growth and success of the Yubiai platform.

  1. Modules and Features

Yubiai's platform is designed to provide a robust and efficient marketplace experience by incorporating various modules and features that cater to different needs and use cases. Some of the key modules and features include:

  1. Services Module: Yubiai's services module allows users to create and list service offerings, enabling the decentralized exchange of services between users. This module is essential for facilitating P2P transactions in a trustless and secure environment.
  2. Products Module: The products module enables the sale and exchange of tangible goods within the platform. It ensures that the products being offered are of high quality, and customers are satisfied with their purchases, contributing to increased user engagement, retention, and transaction volume.
  3. Curate: In the future, Yubiai may implement a curation system to maintain a list of approved suppliers, vendors, or products, ensuring that the marketplace features only high-quality products and services. This system could also be used to create a registry of verified product reviews, promoting trust and confidence in the platform.
  4. Harberger Tax Ads: A potential future implementation involves using NFTs and a curation system based on staking and badges to manage and display digital advertisements within the platform.
  5. Governance Mechanism: Yubiai's governance mechanism allows token holders to make decisions about policies, parameters, fees, and platform updates through a liquid voting mechanism, ensuring that the platform remains adaptive and responsive to user needs.
  6. Liquid Voting Governance: In the future, Yubiai plans to enable token holders to delegate their votes if they choose not to vote directly, allowing for more flexible and inclusive governance.

These modules and features work together to create a comprehensive and versatile marketplace that caters to the needs of its users while promoting security, transparency, and decentralization.

  1. Technical Implementation

Yubiai's technical implementation combines various technologies and frameworks to create a seamless and secure decentralized marketplace experience. Key components of the technical implementation include:

  1. Ethereum Blockchain: Yubiai is built on the Ethereum blockchain, which provides a secure, decentralized, and transparent foundation for the platform. Smart contracts facilitate transactions and interactions within the platform, ensuring trustless operations and automation.
  2. EVM Compatibility: Yubiai is designed to be compatible with Ethereum Virtual Machine (EVM) chains, such as Gnosis, Arbitrum, and BNB. This compatibility enables the platform to scale and support heavy traffic loads while providing low entry points for experiments in specific business models.
  3. Decentralized Autonomous Organization (DAO): Yubiai's governance mechanism is based on a DAO, which allows token holders to participate in decision-making processes and have a say in the direction of the platform. This decentralized governance model ensures that the platform remains adaptive and responsive to user needs.
  4. Smart Contracts and APIs

Yubiai's technical implementation relies on smart contracts and APIs to ensure seamless interaction between users and the platform's features. These components are essential for creating a secure and efficient decentralized marketplace experience.

  1. Smart Contracts: Yubiai's platform uses smart contracts to automate various processes, such as transactions, dispute resolution, and governance voting. Written in Solidity and deployed on the Ethereum blockchain, these smart contracts ensure that the platform operates in a trustless and secure manner. Key smart contracts within the platform include:

  1.  APIs: Yubiai's platform relies on APIs (Application Programming Interfaces) to allow users and third-party developers to interact with the platform's features and data. APIs enable seamless integration with external applications, wallets, and other services, making the platform more accessible and user-friendly. Key APIs used within the platform include:

The combination of smart contracts and APIs enables Yubiai to provide a robust, secure, and efficient decentralized marketplace experience for its users while promoting transparency and interoperability.

  1. Token Standards: Yubiai uses ERC-20 for its utility token ($YBI).
  2. Web3 Technologies: Yubiai leverages Web3 technologies to create a user-friendly interface that allows users to interact with the platform using their digital wallets, ensuring seamless integration with the decentralized ecosystem.

The combination of these technologies and frameworks enables Yubiai to provide a robust, secure, and efficient decentralized marketplace experience for its users while promoting transparency and decentralization.

  1. Security and Privacy

Security and privacy are critical aspects of Yubiai's decentralized marketplace, ensuring that users can confidently participate in transactions and interact with the platform. Yubiai employs several measures to maintain a high level of security and privacy for its users:

  1. Secure Smart Contracts: Yubiai's smart contracts are carefully designed and audited to minimize vulnerabilities and ensure the security of users' assets and data. Rigorous testing, code reviews, and external audits are conducted to ensure that the contracts are free of potential security risks.
  2. Decentralized Storage: Yubiai utilizes IPFS and Filecoin for decentralized storage of digital assets and data, ensuring that users' information is not stored in a centralized location that could be targeted by malicious actors. This approach reduces the risk of data breaches and promotes data resilience.
  3. Data Privacy: Yubiai is designed with privacy in mind, ensuring that users' sensitive information, such as personal details and transaction history, is protected. By leveraging blockchain technology, Yubiai enables users to interact pseudonymously(sismo) and maintain their privacy while conducting transactions.
  4. Access Control: Yubiai employs robust access control measures to prevent unauthorized access to users' accounts and data. This includes features such as secure login mechanisms and integration with reputable digital wallets to securely store and manage users' assets.
  5. Secure Handling of Transactions and Payments: Yubiai uses secure smart contracts to facilitate transactions, providing a trustless environment for users. By leveraging blockchain technology, Yubiai ensures the integrity and security of financial transactions, reducing the risk of fraud and unauthorized payments.
  6. Mitigating Common Attack Vectors: Yubiai implements best practices to protect the platform from common attack vectors, such as distributed denial-of-service (DDoS) attacks, phishing, and social engineering. Security measures, such as rate limiting, access controls, and secure coding practices, are employed to minimize the risk of successful attacks.
  7. Secure Communication: Yubiai's platform ensures that all communications between users and the platform are encrypted and secure, minimizing the risk of data interception or tampering.
  8. Ongoing Security Monitoring: Yubiai maintains an ongoing focus on security and privacy, regularly monitoring the platform for potential vulnerabilities and threats. This proactive approach helps to identify and address any potential security issues before they become critical.

By implementing these security and privacy measures, Yubiai aims to provide a safe and secure environment for its users, allowing them to confidently engage in transactions and interact with the platform.

  1. Future Development and Roadmap

Yubiai is dedicated to continuous development and enhancement of its decentralized marketplace to better serve its users and maintain a competitive edge in the market. The future development roadmap for Yubiai includes several key features and improvements that are planned for implementation:

  1. Curated Listings: Yubiai plans to introduce a curation system to maintain a list of approved suppliers, vendors, and products, ensuring that the marketplace only features high-quality products and services. This registry will also be used to create a collection of verified product reviews, building trust and confidence among users.

  1. Liquid Voting Governance: The governance mechanism will be enhanced by allowing token holders to delegate their votes if they choose not to vote directly. This will enable more flexible and efficient decision-making within the platform.
  2. Harberger Tax Ads: Yubiai plans to implement a system for managing and displaying digital advertisements using NFTs and a curation system based on staking and badges, providing a more effective and transparent advertising ecosystem.
  3. Integration with Additional EVM-compatible Chains: Yubiai aims to expand its compatibility with other EVM-based chains, further enhancing its scalability and interoperability within the blockchain ecosystem.
  4. Enhanced Security and Privacy Measures: Yubiai will continue to prioritize security and privacy, incorporating new technologies and best practices as they emerge to ensure the platform remains safe and secure for its users.
  5. Community-driven Development: Yubiai will actively engage with its user community, taking their feedback and suggestions into account for the ongoing development and improvement of the platform.

The Yubiai development team is committed to delivering these features and improvements according to the roadmap, continually enhancing the platform's capabilities and user experience to remain at the forefront of the decentralized ecommerce industry.

  1. Conclusion
  1. Summary of Yubiai's Potential Impact on the Ecommerce Landscape: Yubiai aims to redefine ecommerce by leveraging the benefits of blockchain technology, decentralized identity solutions, and secure transaction handling. By providing a trustless, efficient, and cost-effective marketplace for the exchange of goods, services, and digital assets, Yubiai has the potential to disrupt the traditional ecommerce landscape. The platform's focus on security, privacy, and user-centric features could lead to increased user adoption and pave the way for a new era of decentralized ecommerce.

  1. Final Thoughts and Vision for the Future: Yubiai envisions a future where decentralized marketplaces are the norm, empowering users to maintain control over their personal data and financial transactions. By continuing to develop innovative features and modules, Yubiai aims to provide a comprehensive solution for web3-based commerce, catering to a wide range of users and use cases. As the platform evolves and adapts to the ever-changing digital landscape, Yubiai is poised to become a driving force in the decentralized ecommerce ecosystem, transforming the way individuals and businesses interact and transact online.