This is an excellent paper to get a rough idea and it is well written. Good job.

We at Cryptonomex have though about some parts of your design already and agree on most of them:

* There is a need for an identity management on top of a blockchain. For that reasons, you would like to
have customers register an account name (together with public keys) on the blockchain and authenticate
every transaction with on of your accounts
* The blockchain mere purpose is to store "letters of intent" from users (e.g. instructions) and they could
be anything from "transfers" to sell orders for decentralized order books.

Now comes the "issue": If you want these instructions to be "executed" as a part of your blockchain protocol
(you call them chaincode) such that the blockchain as a database transits into a new "state", then you need
to take quite some care about scalability and speed as every instruction has to be executed on every full node
if you want to have a trustless system.

Two strategies exist out of this misery:
a) not every node on your network validates every instruction but only a set of elected validators do and
they validate each other.
b) you don't execute any instruction at all and let the end users (or intermediate service) determine the
actual state of the whole (or a part) of the blockchain database. (We have this implemented already and
call this technology "Plasma" internally).

Anyway, seeing how you would like this technology to evolve and knowing that we already have parts of it
implemented, maybe we should consider a closer partnership between IBM and Cryptonomex.

Best regards
-- Fabian

--

*Fabian Schuh* / Business Developer, Technical Consultant
fabian@... <mailto:fabian@...>


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