Please read this entire section carefully. If you are in any doubt as to the action you should take, please consult your legal, financial, tax or other professional advisor(s).
1.1 Legal Statement
a This whitepaper (“Whitepaper”), in its current form, is circulated for general information purposes only in relation to the Metadium Blockchain project as presently conceived and is subject to review and revision. Please note that this Whitepaper is a work in progress and the information in this Whitepaper is current only as of the date on the cover hereof. Thereafter, the information, including information concerning Metadium Technology, Inc. (“Metadium”) business operations and financial condition, may have changed. We reserve the right to update the Whitepaper from time to time.
b No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of the META tokens (as defined below) and no payment is to be accepted on the basis of this Whitepaper. Any sale and purchase of the META tokens will be governed by a legally binding agreement, the details of which will be made available separately from this Whitepaper. In the event of any inconsistencies between the above mentioned agreement and this Whitepaper, the former shall prevail.
c This Whitepaper does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by the issuer/distributor/vendor of the META tokens to purchase any META tokens nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision.
d The META Tokens are not intended to constitute securities, units in a business trust, or units in a collective investment scheme, each as defined under the Securities and Futures Act (Cap. 289) of Singapore, or its equivalent in any other jurisdiction. Accordingly, this Whitepaper therefore, does not, and is not intended to, constitute a prospectus, profile statement, or offer document of any sort, and should not be construed as an offer of securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment, or a solicitation for any form of investment in any jurisdiction.
e No META token should be construed, interpreted, classified or treated as enabling, or according any opportunity to, purchasers to participate in or receive profits, income, or other payments or returns arising from or in connection with the Metadium platform, META tokens, or products, or to receive sums paid out of such profits, income, or other payments or returns.
f This Whitepaper and any part hereof may not be reproduced, distributed or otherwise disseminated in any jurisdiction where offering tokens in the manner set out this Whitepaper is regulated or prohibited.
g No regulatory authority has reviewed, examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with..
a The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or restricted by the laws or regulatory requirements of any jurisdiction. In the case where any restriction applies, you are to inform yourself about, to obtain legal and other relevant advice on, and to observe, any restrictions which are applicable to your possession of this Whitepaper or such part thereof (as the case may be) at your own expense and without liability to Metadium or its representatives, agents, and related companies (including Coinplug, Inc.) (“Affiliates”).
b Persons to whom a copy of this Whitepaper has been distributed or disseminated, provided access to or who otherwise have the Whitepaper in their possession shall not circulate it to any other persons, reproduce or otherwise distribute this Whitepaper or any information contained herein for any purpose whatsoever nor permit or cause the same to occur.
1.2 Restrictions on Distribution and Dissemination
1.3 Disclaimer of Liability
1.4 Cautionary Note on Forward-Looking Statements
a Certain information set forth in this Whitepaper includes forward-looking information regarding the future of the project, future events and projections. These statements are not statements of historical fact and may be identified by but not limited to words and phrases such as “will”, “estimate”, “believe”, “expect”, “project”, “anticipate”, or words of similar meaning. Such forward-looking statements are also included in other publicly available materials such as presentations, interviews, videos etc. information contained in this Whitepaper constitutes forward-looking statements including but not limited to future results, performance, or achievements of Metadium or its Affiliates.
b The forward-looking statements involve a variety of risks and uncertainties. These statements are not guarantees of future performance and no undue reliance should be placed on them. Should any of these risks or uncertainties materialise, the actual performance and progress of Metadium or its Affiliates might differ from expectations set by the forward-looking statements. Metadium or its Affiliates undertake no obligation to update forward-looking statements should there be any change in circumstances. By acting upon forward-looking information received from this Whitepaper, Metadium or its Affiliates’ website and other materials produced by Metadium or its Affiliates, you personally bear full responsibility in the event where the forward-looking statements do not materialize.
c As of the date of this White Paper, the Metadium platform has not been completed and is not fully operational. Any description pertaining to and regarding the Metadium platform is made on the basis that the Metadium platform will be completed and be fully operational. However, this paragraph shall in no way be construed as providing any form of guarantee or assurance that the Metadium platform will eventually be completed or be fully operational.
1.5 Potential Risks
By purchasing, holding and using the META Tokens, you expressly acknowledge and assume the risks set out in this section. If any of these risks and uncertainties develops into actual events, the business, financial condition, results of operations and prospects of Metadium or its Affiliates may be materially and adversely affected. In such cases, you may lose all or part of the value of the META Token. Such risks include but are not limited to the following:
Risks Relating to the META Tokens
1.5.1 There may not be a public or secondary market for the META Tokens
Risks Relating to Metadium, its Affiliates and the Metadium Platform
1.5.2 Limited availability of sufficient information
1.5.3 The digital assets raised in the sale of META Tokens are exposed to risks of theft
1.5.4 The blockchain address(es) may be compromised and the digital assets may not be able to be retrieved
The blockchain address(es) are designed to be secured. However, in the event that the blockchain address(es) for the receipt of payments for the META Tokens or otherwise are, for any reason, compromised (including but not limited to scenarios of the loss of keys to such blockchain address(es), the funds held at such blockchain address(es) may not be able to be retrieved and disbursed, and may be permanently unrecoverable. In such event, even if the sale of the META Tokens is successful, Metadium and its Affiliates will not be able to receive the funds raised and Metadium and its Affiliates will not be able to utilise such funds for the development of the Metadium platform, and the implementation of the Metadium platform might be temporarily or permanently curtailed. As such, distributed META Tokens may hold little worth or value.
1.5.5 There is no assurance of any success of the Metadium platform and Metadium and its Affiliates may cease the development, launch and operation of the Metadium platform
a The value of, and demand for, the META Tokens hinges heavily on the performance of the Metadium Platform. There is no assurance that the Metadium Platform will gain traction after its launch and achieve any commercial success. The Metadium ©2018 Metadium, New Generation Identity Standard for the New Era Platform has not been fully developed, finalised and integrated and is subject to further changes, updates and adjustments prior to its launch. Such changes may result in unexpected and unforeseen effects on its projected appeal to users, and hence impact its success. There are no guarantees that the process for creating the META Tokens will be uninterrupted or error-free.
b While Metadium has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the sale of META Tokens will be sufficient for the development and integration of the Metadium platform. For the foregoing or any other reason, the development and integration of the Metadium platform may not be completed and there is no assurance that its systems, protocols or products will be launched at all. As such, distributed META Tokens may hold little or no worth or value.
c Additional reasons which may result in the termination of the development, launch or operation of the Metadium platform includes, but is not limited to, (aa) an unfavourable fluctuation in the value of cryptographic and fiat currencies, (bb) the inability of Metadium and its Affiliates to establish the Metadium platform or the META Tokens’ utility or to resolve technical problems and issues faced in relation to the development or operation of the Metadium platform or the META Token, the failure of commercial relationships, (cc) intellectual property disputes during development or operation, and (dd) changes in the future capital needs of Metadium or its Affiliates and the availability of financing and capital to fund such needs. For the aforesaid and other reasons, the Metadium platform may no longer be a viable project and may be dissolved or simply not launched, negatively impacting the Metadium platform and the potential utility and value of the META Tokens.
1.5.6 There may be lack of demand for Metadium platform and the Services provided, which would impact the value of the META Tokens
a There is a risk that upon launching of the Metadium platform, there is a lack of interest from consumers, merchants, advertisers, and other key participants for the Metadium platform and the Services, and that there may be limited interest and therefore use of the Metadium platform and the META Tokens. Such a lack of interest could impact the operation of the Metadium platform and the uses or potential value of the META Tokens.
b There is a risk of competition from alternative platforms that may have been established, or even from existing businesses which would target any segment of the potential users of the Metadium platform fulfilling similar demands, e.g. Facebook or other corporations targeting advertisers seeking purchase consumer data and market analysis. Therefore, in the event that the competition results in a lack of interest and demand for the Metadium platform, the Services and the Tokens, the operation of the Metadium platform and the value of the Tokens may be negatively impacted.
Risks Relating to the Participation in the Sale of META Tokens
1.5.8 You may not be able to recover 1.5.8 the Payment Amount
Except as provided under these Terms or prescribed by applicable laws and regulations, Metadium is not obliged to provide you with a refund of the Payment Amount. No promises of future performance or price are or will be made in respect to the META Tokens, including promises of inherent value or continuing payments, and there is no guarantee that the META Tokens will hold any particular value. Therefore, the recovery of the Payment Amount may be impossible or may be subject to applicable laws and regulations.
1.5.9 You may be subject to adverse legal and/or tax implications as a result of the purchase, distribution and use of the META Tokens
a The legal character of cryptocurrency and cryptographic assets remain uncertain. There is a risk that the META Tokens may be considered securities in certain jurisdictions, or may be considered to be securities in certain jurisdictions in the future. Metadium and its Affiliate does not provide any warranty or guarantee as to how the META Tokens will be classified, and each purchaser will bear all consequences of the META Tokens being considered securities in their respective jurisdictions, and bear the responsibility of the legality, use and transfer of the Tokens in the relevant jurisdictions.
b Further, the tax treatment of the acquisition or disposal of such cryptocurrency or cryptographic assets might depend on whether they are classified as securities, assets, currency or otherwise. As the tax characterisation of the META Tokens remains indeterminate, you must seek your own tax advice in connection with the purchase of the META Tokens, which may result in adverse tax consequences or tax reporting requirements for you.
1.5.10 The loss or compromise of information relating to the Purchaser Wallet and your Metadium platform ID may affect your access to and possession of the META Tokens
There is a risk that you may lose access to and possession of the META Tokens permanently due to loss of unique personal ID created in the Metadium platform, the Metadium platform ID, and other identification information, loss of requisite private key(s) associated with the Purchaser Wallet or vault storing the META Tokens or any other kind of custodial or purchaser errors.
1.5.11 Blockchains may face congestion and transactions may be delayed or lost
Most blockchains used for cryptocurrency transactions (e.g. Ethereum) are prone to periodic congestion during which transactions can be delayed or lost. Individuals may also intentionally spam the network in an attempt to gain an advantage in purchasing cryptographic tokens. This may result in a situation where block producers may not include your purchase of the META Tokens when you intends to transact, or your transaction may not be included at all.
Privacy and data retention issues
1.5.12 As part of the Restricted Public Sale, the verification processes and the subsequent operation of the Metadium platform, Metadium may collect personal information from you.
The collection of such information is subject to applicable laws and regulations. All information collected will be used for purposes of the Restricted Public Sale and operations of the Metadium platform, thus it may be transferred to contractors, service providers and consultants worldwide as appointed by Metadium. Apart from ©2018 Metadium, Next Generation Identity Standard for the New Era external compromises, Metadium and its appointed entities may also suffer from internal security breaches whereby their employees may misappropriate, misplace or lose personal information of purchasers. Metadium may be required to expend significant financial resources to alleviate problems caused by any breaches or losses, settle fines and resolve inquiries from regulatory or government authorities. Any information breaches or losses will also damage Metadium’s reputations, thereby harming its long-term prospects.
1.5.13 General global market and economic conditions may have an adverse impact on Metadium and its Affiliates’ operations and the use of the Metadium Platform
1.5.14 The regulatory regime governing blockchain technologies, cryptocurrencies, Meta Tokens, offering of META Tokens, and the Metadium Platform remain uncertain, and any changes, regulations or policies may materially adversely affect the development of the Metadium Platform and the utility of the META Tokens
a Regulation of the META Tokens, the offer and sale of META Tokens, cryptocurrencies, blockchain technologies, and cryptocurrency exchanges is currently undeveloped or underdeveloped and likely to rapidly evolve. Such regulation also varies significantly among different jurisdictions, and is hence subject to significant uncertainty. The various legislative and executive bodies in different jurisdictions may in the future adopt laws, regulations, guidance, or other actions, which may severely impact the development and growth of the Metadium Platofrm, the adoption and utility of the META Tokens or the issue, offer, and sale of the META Tokens by Metadium. Failure by Metadium and its Affiliates or users of the Metadium Platform and the Services to comply with any laws, rules and regulations, some of which may not exist yet or are subject to interpretation and may be subject to change, could result in a variety of adverse consequences against Metadium and its Affiliates, including civil penalties and fines.
b Blockchain networks also face an uncertain regulatory landscape in many foreign jurisdictions. Various jurisdictions may, in the near future, adopt laws, regulations or directives that affect the Metadium platform, and therefore, the value of the META Tokens. Such laws, regulations or directives may directly and negatively impact the operations of Metadium and its Affiliates. The effect of any future regulatory change is impossible to predict, but such change could be substantial and could materially adverse to the development and growth of the Metadium Platform and the adoption and utility of the META Tokens.
c To the extent that Metadium and its Affiliates may be required to obtain licences, permits and/or approvals (collectively, the “Regulatory Approvals”) to carry out its business, including that of the creation of the META Tokens and the development and operation of the Metadium platform, but are unable to obtain such Regulatory Approvals or if such Regulatory Approvals are not renewed or revoked for whatever reason by the relevant authorities, the business of Metadium and its Affiliates may be adversely affected.
d There is no assurance that more stringent requirements will not be imposed upon Metadium and its Affiliates by the relevant authorities in the future, or that Metadium and its Affiliates will be able to adapt in a timely manner to changing regulatory requirements. These additional or more stringent regulations may restrict Metadium and its Affiliates’ ability to operate its business and Metadium and its Affiliates may face actions for noncompliance if it fails to comply with any of such requirements.
e Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the Metadium platform ©2018 Metadium, New Generation Identity Standard for the New Era may no longer be commercially viable and Metadium and its Affiliates may opt to discontinue the Metadium platform and/or the META Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Metadium platform and the META Tokens. Metadium and its Affiliates may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the distributed META Tokens may hold little or no worth or value.
1.5.15 There may be risks relating to acts of God, natural disasters, wars, terrorist attacks, riots, civil commotions widespread communicable diseases and other events beyond the control of Metadium and its Affiliates
1.5.16 Blockchain and cryptocurrencies, including the META Tokens are a relatively new and dynamic technology.
In addition to the risks highlighted herein, there are other risks associated with your purchase of, holding and use of the META Tokens, including those that we cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks discussed herein.
1.6 No Further Information or Update
No person has been or is authorised to give any information or representation not contained in this Whitepaper in connection with the META Token, Metadium or its Affiliates and their respective businesses and operations, and, if given, such information ©2018 Metadium, New Generation Identity Standard for the New Era or representation must not be relied upon as having been authorised by or on behalf of Metadium or its Affiliates.
1.7 No Advice
No information in this Whitepaper should be considered to be business, legal, financial or tax advice regarding the META Token, Metadium or its Affiliates. You should consult your own legal, financial, tax or other professional advisor(s) regarding the META Token, Metadium or its Affiliates and their respective businesses and operations. You should be aware that you may be required to bear the financial risk of any purchase of META Tokens for an indefinite period of time.
With the ever-increasing prevalence of technology in our society, the scope of our digital lives has grown exponentially in recent years. Significant aspects of our lifestyles and proportion of social activities have shifted from offline to online. Despite this shift, most of the current identity infrastructures remain in the physical realm.
Origins of identity
Primitively, identity itself depends on the self-consciousness, not on the substance. Likewise, René Descartes said, Cogito ergo sum - "I think, therefore I am". A hierarchical society made identity important when proving class. Identity was a means to distinguish the privileged from the others. After the institutionalization of society - emerging from the start of feudalism, the control over an individual’s identity was managed by the authorities. Invigoration of taxation and trades fostered compulsory identity management.
Traditional infrastructure with mundane identity
The importance of identity was acknowledged with the need to prove whether the subject had the right to be in a specific position or perform a certain action. Traditional identity infrastructures were developed to focus on these necessities. From the sanitary certification during the Great Plague to more modern examples such as online certificates and financial services, mundane identity has been key to the infrastructure - until now.
2.1 Moving from offline to an online world
The exponential growth of the internet has connected billions globally, allowing us to efficiently communicate and interact regardless of location or distance. Although technological developments have advanced, restrictions still exist with regards to how we interact online.
As online applications grow in number and complexity, one constraint still remains – “identity”. As offline services have become online services, identity must also follow. But online is obviously not a face-to-face environment so does not allow us to access services by simply providing our physical mundane identity. This highlights the problem of online identity.
In order to provide and use online services in a non-face-to-face environment, we’ve typically used a centralized Personally Identifiable Information (“PII”) system to create IDs and manage user data. In this situation, online users can face the following situations:
• Experiencing inconvenience, ID theft or the unintentional distribution their personal information.
• Being forced to create a new user ID and/or password every time they sign up for a new service.
• Having to remember different combinations of characters for passwords and IDs to enhance security, which in the process adds further complexity, frustration and confusion.
Recently, Social network services including Facebook and Twitter have rolled out “Log in with SNS” feature to remedy the headache of creating a new ID for every platform. The feature allows users to log on to other websites or applications using their SNS account details. However, because the system was based on an ID/password system, which was easy to steal, it suffered from ID theft. Additionally, as a centralized system, Facebook experienced data leakage of user information. In this regard, businesses offering online services suffer from constructing and maintaining secure ID systems.
Systems are usually designed and implemented in a silo structure, making them a very attractive target for hackers. If someone opens the door of the silo, they can access all the valuable, sensitive data of millions of users. For the sake of their users and integrity, businesses have a vested interest in preventing this — and it is a costly endeavor. But due to the fundamental structural basis of this issue, it is a particularly difficult problem to solve, regardless of how much money businesses pour into it.
In recent years, there have been numerous cases where companies — ranging from startups to Fortune 500 players — have suffered a breach, resulting in the loss of customer PII. The Office of Personnel Management (OPM) data breach of June 2015 is a clear example of how mismanagement of PII can have a significant tangible impact on society. The OPM breach resulted in the theft of approximately 21.5 million personal information records.
2.2 Demands of identity integration
Online services are no longer limited to emails or information sharing. Services that once only existed in our imagination have emerged, such as online shopping, banking, and insurance. Such services request for our mundane identity. In order to resolve the gap between the mundane identity and digital identity, it is becoming more common to check a consumer’s identity data through a third-party attestation agency.
As online service users, we are constantly undergoing numerous attestation procedures to prove our identity, such as the long and complex KYC and AML procedure for using mobile banking services. Such a process must be repeated each and every time we sign up for similar services.
Businesses face similar requirements at a much greater level of complexity. To overcome this, they are required to complete multiple identity attestation procedures for each user, while somehow simultaneously simplifying the procedure to avoid frustrating customers with lengthy attestation procedures.
There is no single international attestation agency or organization that sets universal guidelines. Therefore, in order to expand services globally, businesses are forced to establish relationships with attestation agencies from all over the world. This results in an extra layer of prohibitive complexity for companies that may be interested in expanding internationally. This is especially true in the case of startups, whose services may have the potential to provide crucial global services.
Based on data ownership, we have already seen the phenomenon caused by the centralized PII systems of businesses. Today, we are at a critical junction and must act. If individuals can manage their own identity data with their own authority for a required period of time, we must welcome this new online service paradigm based on a safe, trustworthy and user-friendly identity system.
4 Armerding, Taylor. “The 17 biggest data breaches of the 21st century.” CSO Online. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
4.1 Protocol baseline—trustless trust
4.2 Decentralized PKI
Although the Public Key Infrastructure (PKI) remains working and as an advanced system for identity, identity maintenance managed solely by a centralized authority (CA) often causes data ownership problems and can suffer from credibility issues. The CA is tasked with preventing the loss and leak of data, and up until recently, users had no choice but to trust CAs.
Unfortunately, entrusted data can be compromised, leaving corporations and individuals alike exposed or threatened. These pain points also cost CAs great financial and social losses, forcing them to spend astronomical amounts of time, effort, and money to prevent losses and associated scandals.
“Trustless trust” means managing identities without wasting effort or money. Metadium’s decentralized PKI (dPKI) enables individuals to securely trust the integrity of their virtual identities, and through Metadium, corporations and individuals have ownership over their personal data and control how, when, and whom they share data with.
4.3 Data ownership and self-sovereign identity
Taking back the sovereignty of identity from centralized authorities enable transparent and secure distribution of private data, allowing for absolute control over the use and distribution of personal digital assets. This means individuals can claim their right to own and use of their private data when and how they choose to use it. Equally, service providers or third parties cannot exploit data without permission.
Metadium’s self-sovereign identity ecosystem enables users to retain their pseudonymity while verifying ownerships and rights. The users’ mundane identity and private data is not revealed without their permission. By implementing self-sovereign identity, each individual or user can convey preferences or correlations between several digital identities.
As blockchain supports pseudo-nymity and “trustlessness”, regulatory authorities have raised concerns regarding the adoption of such technology. In response, Metadium enables blockchains to be regulated without compromising the spirit of pseudonymity and trustlessness.
In the business, unregulated systems or infrastructure have not been easily been accepted by major role players. Despite the blockchain’s trustlessness and transparency, it can be difficult to track malicious actions. Of course, some of the resistance stems from a lack of knowledge about blockchain technology. In this sense, some of these issues can be partially resolved through a deeper understanding of the blockchain technology.
In addition to greater knowledge, the development of the Meta ID is also about creating a more inclusive and efficient system. Incorporating “Trustless” blockchain technology into regulatory processes reassures individuals and organizations and encourages mass adoption. Metadium allows blockchain to be used practically, not just for trading value. This means users in the Metadium ecosystem can decide to use either a regulation-compliant identity with attestation or a self-sovereign identity for value-adding.
4.5 Identity of Things
Up until recently, identity infrastructures have been more focused on eligibility and purpose, rather than the intrinsic value of identity information or self-awareness. Of course, there are identity infrastructures dedicated to value-adding and preserving; Intellectual Property (IP) rights typically include elements of the Identity of Things (IDoT). However, IPs are more likely to focus on preserving financial or possessive value. With technological developments, implementing identity into IDoT devices, logistics, robotics, AI and smart cities will increase the demand to share and access information. Granting identities to devices and objects will be spontaneously generated. For example, the mass distribution of passports to meet increasing transportation requirements.
4.6 Attestation and verification
Although commonly assumed to have the same meanings, verification and attestation are totally different elements. While verification can be conducted in a more cognitive approach, attestation requires third-party notaries or other publicly-accredited intermediaries. For example, verification process adds value to a pseudonymous identity, a relationship identity or Identity of Things. However, for more crucial information requirements or when it is necessary to prove the rights or genuineness of an identity, attestation is needed.
Various kinds of certifications, such as the right to perform or possess, also require attestation. Metadium supports both attestation and verification processes to create a holistic identity via Meta ID.