What does "interoperability" mean?

Interoperability refers to the basic ability of different computerized products or systems to readily connect and exchange information with one another, in either implementation or access, without restriction.

What is Substrate?

Substrate is a modular framework that enables you to create purpose-built blockchains by composing custom or pre-built components. Learn more from their official website.

What is Cipher Protocol?

Cipher Protocol is part of the consortium of projects from Polkadot and Cosmos, united by the vision of cross-chain interoperability (cross communications) between blockchain networks and serve the purpose of a trustless, and scalable global decentralized ecosystem for all businesses and consumers.

Cipher Protocol offers a new approach to cloud computing with its Decentralized Data Exchange Protocol (DDXP) optimized for P2P data collaboration and security. This DDXP allows stakeholders to own and manage their data with full custody, making it one of the first platforms that gives them 100% control over any data use or deployment. Enterprises now have the opportunity to easily plug-in their existing data ecosystems in real time to increase value streams, privacy, security, and efficiency. Cipher makes data directly accessible in near real-time by all business units, partners/vendors, IoT devices, and machine-learning processes… etc.

What is Cipher Protocol's Decentralized Data Exchange Protocol?

Cipher Protocol’s DDXP is a decentralized data exchange and collaboration protocol. DDXP allows for the tokenization of data, data traceability, and cross-system data processing. The DDXP leverages Cipher Protocol’s layer-1 public blockchain and will be complaint with data regulations. (GDPR)

Why does Cipher Protocol need a blockchain and what is it used for?

Blockchain application brings trust, accountability, and transparency to digital transactions. The technology creates and maintains cryptographically secure, shared, and distributed ledger for transactions.

What applications does the Cipher Protocol DDXP feature?

It provides a series of methods and interfaces to meet the requirements of trust and data interoperability across multiple systems, which serves multiple business requirements and scenarios, especially the data exchange scenarios.

Peer-to-Peer Data Transmission

The data exchange system uses blockchain to support accurate search and transmission of data between two parties without having a centralized database.

Data Authorization Mechanisms

Data privacy protection and leakage prevention are always assured whilst giving the user full control of their data; each data transfer must receive authorization from all parties.

Copyright Protection of Data

Cipher stores, manages, and attests data throughout its life cycle. A digital identity is created for each copy of data from registration, request, authorization, to exchange. Copyright protection is also recorded to each copy on the blockchain.

Distributed Data Storage

A distributed data storage layer supports decentralized storage for different types of data

How does Cipher Protocol support the evolution of NFTs?

Cipher Protocol will be supporting NFT’s (non-fungible tokens) that can represent unique or fractionalized ownership of real-world or digital assets for business and applications. The DDXP offers a set of plug-and-play utilities that can be extended to any other NFT compatible network as well.

Cipher Protocol uniquely captures the critical event data relating to the issuance, transfers, and access of such tokens, ensuring that the state changes of the NFT are captured both on-chain and in the DDXP, both going through network consensus at the same time. This allows for fully automated verifications and value-transfer via smart contracts and workflow software to capture much more information and utility.

How does Cipher Protocol benefit DeFi?

The Decentralized Finance (DeFi) industry today consists mainly of the decentralized exchange of digital assets as well as the over-collateralization of digital assets to provide lending services. However, compared to mainstream financial services, it is evident that due to the lack of credit mechanisms, there are still limitations in the allocation of resources to users, and that mainstream financial service mechanisms are difficult to implement. Credit-based DeFi proposes the concept of integrating credit elements into decentralized finance. These elements can be used for credit-based lending or new asset digitization, further expanding the service model and scope of decentralized finance. It also gives DeFi greater potential to provide mainstream financial services.

Based on this concept, CipherProxy will build a decentralized autonomous organization (DAO) initiative called the CipherDAO for decentralized financial services that integrates credit elements. CipherDAO can support the construction of decentralized financial products that combine collateral value and credit evaluation, as well as further decentralized social governance and autonomy. Cipher Protocol will have cross-chain integration with other mainstream blockchain networks and will use the digital assets from these networks, as well as from its own network to build collateral pools. Additionally, Cipher Protocol’s decentralized identity data protocol supports the authentication of various kinds of assets, ranging from simple to complex, to NFT digital assets to lay a solid foundation for the addition of new types of collateral.

Credit-Based DeFi refers to DeFi products that integrate credit elements into decentralized financial services and enhance DeFi products in the following


• Credit lending: Introduces credit assessment into lending products, gradually reducing or even cancelling collateralization requirements, and realizing the application of real resource allocation.

• Asset digitization: The digitization of certain types of assets requires on-chain confirmation of a series of credit elements related to those assets,

such as ownership/asset attributes/legitimacy, etc.

• Regulatory compliance: If DeFi expands the service scope and category of the service group, compliance will become an important requirement, which will involve considering the needs of relevant assets or the credit element review of relevant users.

How does the Data Marketplace work?

Cipher Protocol’s ODM is powered by a complete data interaction protocol based on Cipher Protocol’s Layer-1 core. The process of data valuation, profit sharing, data security and privacy protection is fully decentralized.

What is the Data Marketplace used for?

With Cipher Protocol’s Open Data Marketplace, individuals and companies can monetize raw data, data processing service and insights, while still having full control over their data leveraging the unique features of public blockchain.

Companies that complete the KYB (know your business) verification with Cipher Protocols ODM are authorized to purchase any kind of data. The ODM ensures that each company acquire necessary and quality data in full compliance with regulations, especially when requesting data from individuals. Multiple secure data analysis and processing services will be available here as well.

What is "heterogenous sharding" and why does it matter?

There are three key concepts related to heterogeneous sharding namely single chain, shards, and heterogenous sharding. What is a single chain? It is analogous to a single-lane highway. ETH 1.0, EOS, NEO, hyperledger, public chains, alliance chains, and so on are all single chains. As for sharding, it is like a multi-lane highway. The advantage of a multi-lane highway is that the time needed for a huge amount of traffic to pass through is lesser than that of passing through a single-lane highway.

At the same time, sharding can be based on the current traffic to dynamically adjust the number of lanes. If one has three lanes for now, when traffic increases, one can add one, or two, or three more lanes to expand the capacity to allow more traffic to pass through. One thing to note is that, for each lane, one needs to have identical lanes with identical specifications. Such constraint requires us to consider in the first place how wide the lane should be. What kind of materials should be used? Sandstone or granite? Should we plant any greens on both sides? All these specifications are needed during the design phase. After the design, every time when we add lanes, we follow this blueprint to add identical lanes.

In the area of sharding, ETH 2.0, Zilliqa, Harmony, Near are all good examples. If so, then what is heterogenous sharding? Heterogenous sharding, like sharding, has a multi-lane highway but each lane can be designed differently. As the highway in the previous examples requires the same width and the same materials and such, the heterogenous sharding highway allows each lane to be designed differently.


How does Cipher Protocol achieve enterprise adoption?

Enterprise adoption and decentralized blockchain networks have been viewed as two opposing ideals, compounded by the scaling, decentralization, and security trilemma. Cipher Protocol resolves this paradox by way of a holistic and system-wide solution for scalability, interoperability, and seamless integration of the global app ecosystem into a decentralized economy powered by blockchain technology.

Cipher Protocol and its stakeholders are convinced that the pathway to mass adoption is through enterprise adoption. This will be realized by working with successful enterprises that already have millions of loyal users. The CipherProxy team designed an easy and straightforward SaaS solution to drive further adoption through traditional sales and marketing practices.

What is CipherProxy's business model?

In order to drive economic value for the Cipher utility token, +- 20% of all Cipher network fees will be used for network transactions, and another 20% will be allocated to the Cipher Open Data Marketplace to stimulate activity between enterprises and data engineers.

How is data custodianship governed?

Data custodianship on Cipher is governed by the following four principles:

  • Data Governance: The process of managing the availability, usability, integrity, and security of the data in enterprise systems, based on internal data standards and policies that also control data usage. Effective data governance protocols on Cipher ensure that data is consistent, trustworthy, and doesn’t get misused or compromised.

  • Data Ownership: Customer data stored on Cipher chains are fully encrypted through secure RSA encryption and partitioned per enterprise entity with a state-of-the-art identity management system. Application data is associated with anonymous, randomized IDs, non-identifiable personal information. Only users and entities with the associated private key can decrypt and deanonymize their own data.

  • Secure Collaboration: Cipher will natively implement multi-party computing techniques such as federated learning and differential privacy to allow decentralized collaboration without exposing privacy-regulated customer data to the party analyzing (part of) the data.

  • Data Compliance: Enterprises operating in regions with strict data privacy regulations such as GDPR and CCPA can leverage Cipher’s hybrid architecture to create a permissioned environment with blockchain-based authorization and audit capabilities defined by state transition functions, while still maintaining interoperability with the rest of the network.

How does Cipher comply with GDPR/CCPA regulations?

Cipher DDXP captures and stores individually encrypted customer interaction data, along with value transactions to each user’s individual ledger and individual tamper-proof and time-capsuled data structures in IPFS clusters. This allows enterprises to capture customer journeys in individual ledgers for more personalized data intelligence operations. This enables enterprises to share customer data on the Open Data Marketplaces, without exposing sensitive data.

With Cipher’s privacy tool, the Decentralized Data Explorer (DDE), enterprise apps can permit their users to look up all data collected in their tools. In this way, Cipher turns the traditional blockchain privacy issues into a win/win for both enterprises and customers.

With Cipher, customer data is guaranteed to be compliant with GDPR and CCPA privacy regulations, giving it a major competitive advantage over other CRM solutions offered in the market.