Abstract— Since the introduction of Ethereum in 2014 there
has been great interest in decentralized trustless applications
(smart contracts). Consequently, many have tried to implement
applications with real world data on top of a blockchain. We
believe that storing the application’s state and code on-chain is
wrong for several reasons.
We present a highly scalable blockchain architecture with a
consensus mechanism which is also used to check the oracle.
This makes the oracle very efficient, because it avoids layering
one consensus mechanism on top of another. State channels
are integrated to increase privacy and scalability. Tokens in
channels can be transferred using purely functional smart
contracts that can access oracle answers. By not storing contract
code or state on-chain, we are able to make smart contracts
easier to analyze and faster to process, with no substantial loss
in de facto functionality.
Applications like markets for synthetic assets and prediction
markets can be efficiently implemented at global scale. Several
parts have proof-of-concept implementations in Erlang. Development
tools and application essentials such as a wallet, naming
and identity system will also be provided.