Ultiledger Whitepaper

Finance first emerged due to economic development, mainly to facilitate economic activities through
financial intermediaries. Financial activities date back to 2000 BC in the Babylonian Temple and in the 6th
century BC when the Greek temples provided custodial and interest-bearing mortgage services. Later, in
ancient Greece and during the Roman Empire, there existed lenders and commercial institutions similar
to banks. Modern banks rose from the currency exchange industry and the goldsmith industry in Europe.
The oldest bank was the Bank of Venice (1580). In 1694, the first joint-stock bank, the Bank of England, was
founded in the United Kingdom, establishing the most common form of organization for the modern
financial industry. At the end of the 19th century and the beginning of the 20th century, the major
capitalist countries entered the stage of monopoly capitalism. The credit-centered banking monopoly
and industrial monopoly capital infiltrated each other to form financial capital which control the lifeline of
the capitalist economy.

With the rapid development of the social economy, the modern financial industry has developed
into a system of diverse financial institutions. It covers banking, insurance, trust, securities and
leasing industries, with the banking industry taking the dominant role. In order to better serve
complex economic behaviors, modern finance has innovatively developed financial products
and related derivatives. The development and popularization of computer technology has made
possible in recent years the emergence of Internet finance, such as online crowdfunding, online
lending, online settlement, consumer finance, data currency, etc.

The financial industry is an indispensable part of modern economy. It promotes the rational
allocation of social capital among market participants and improve the efficiency of social
capital use. The indicators and tools of the financial market reflect the good and bad of the
national economy. The capital demand side mainly raises capital by issuing stocks and bonds to
directly attract surplus funds, without passing through a third-party financial institution, thereby
reducing transaction costs. In an indirect financing case, a financial institution (such as a bank),
transferred capital from its investment pool to the borrower based on the latter’s qualifications. The
emergence of third-party institutions can reduce moral hazard and adverse selection caused by
information asymmetry, and is more conducive to the healthy development of financial markets.
Traditional financial institutions have made outstanding contributions to the economy, however, they
are faced with inherent risks and are falling short of the rapid social and economic transformation. The
financial sector may be exposed to new risks and problems in this high-tech
asymmetry is more prominent, thus making financial risks more likely. Modern economic activities
seek higher financial efficiency. However, transactions through traditional financial institutions require
significant fees and prolonged process time, accompanied by increased risks of data breach of related
parties due to human error.

Internet finance has unique advantages over traditional finance. However, due to limits of
the credit information system and lack of a shared credit information platform, the Internet
finance is prone to credit risks. The consensus mechanism in the blockchain can be introduced
just to mitigate these risks. The cryptocurrency based on blockchain technology provides
convenient alternatives to traditional financial payment and settlement. The technology promotes
decentralized and peer-to-peer payment methods, breaking through the cumbersome bank
transfers required by traditional financial institutions, and prompting great vitality in commercial

Using the blockchain technology, Ultiledger wishes to establish an economic and financial
ecosystem based on ULT Native Tokens to help any organization set up trust mechanisms at a
low cost and time capital: distributed financial book of bank-grade security; zero-cost transaction
settlement within the ecosystem; improved security, privacy, efficiency and capital availability
of the system through the combination of the main chain and subchains. Our clients can
include governments, companies, industry clusters, and even individuals or communities. In the
Ultiledger ecosystem, users can register assets that they consider valuable in a code string on
the blockchain for asset tokenization, and then perform transactions using the tokenized assets
via smart contracts and open storage. Any digital or physical asset can be provided permanent
storage and real-time tracking on the public chain, and ultimately allowing the interexchange
between assets and value on a trusted basis. We hope to build a safer blockchain platform with a
more open design and a lower cost, resulting in a more enjoyable experience. At the same time,
the platform will respond to the supervision of governments, allowing the blockchain technology to
seamlessly integrate with the real economy.

The blockchain technology will reshape the next generation of the Internet and distribute profits of
the consensus economy. The Internet today is a “traffic ranch” where all users and companies are
like cattle and sheep subject to ruling of corporate giants. A ride-hailing platform, as the largest
of its kind in China, has greatly raised the percentage cut from ride fair or reduced subsidies to
the driver on the one hand, and has direct-or-indirectly increased the price to passengers on
the other. The distortion in charges and the cuts, as well as the unfair distribution mechanism,
caused the drivers to put off orders from time to time, leaving passengers without available rides.
On the contrary, a “distributed” consensus mechanism promoted by the blockchain is the ultimate
weapon to break away from this monopoly mechanism for fair and equitable distribution. Since
the distribution mechanism is based on consensus and approved by each participating entity,
and the information is completely open, transparent and tamper-proof, participants can enjoy the
rewards and rights they are entitled to.

As an early application of the blockchain technology, the success stories of Bitcoin and
Ethereum attest to the infinite possibilities the technology. However, due to the current
underlying transmission mechanism, computational performance and architectural constraints
of the consensus algorithm, the existing public chains are facing the bottleneck of transaction
processing. Both Bitcoin and Ethereum’s System Throughput (TPS) are still in single digits or tens
digits, which makes it impossible to carry actual trading scenarios. In actual economic activities,
the required TPS often needs to reach thousands transactions per second. With traditional
e-commerce platforms, payments and exchanges, the actual transaction demand often reaches
tens of thousands of times per second. Ultiledger is designed through a multi-chain system which
allows for overall faster transaction processing speed. The main chain adopts the Federated
Byzantine Agreement, imposing thresholds on minimum data volume, minimum calculation
amount and minimum network bandwidth. The subchains facilitates quicker consensus through
fewer nodes.

The Ultiledger team has many years of practical exploration experience, and successful
developed multiple applications based on subchains of breakthrough innovations in the early
days. With the expansion of the blockchain sector, it is observed that applications on;y achieving
self-financing within the subchains, cannot satisfy the need for circulation of credit, assets and
value. However, the financial scene is often complicated with an increasing amount of assets and
fast-growing demand for interaction. To this end, the ground-breaking and interactive blockchain
framework, ultimate ledger project (Ultiledger), is proposed as a blockchain solution that meet the
needs of real business applications. The project aims to deploy a new generation of self-financial
public chain to meet the financial needs of different scenarios on one hand, and to map and
combine assets that require circulation on the other, supporting their circulation on a global scale.

Ultiledger Website
Ultiledger Whitepaper