Blockchain Technology

Blockchain 1.0

The first form of Blockchain technology, now referred to as Blockchain 1.0, was developed by Satoshi Nakamoto. Blockchain 1.0 is a core component of Bitcoin and serves as a data store, i.e. public ledger. The most notable success for Blockchain 1.0 was solving the “double spending” flaw. The flaw which caused previous digital currencies to fail. The cryptographic proof-of-work (PoW) protocol was the solution. It eliminated the need for a third party to validate transactions.

Blockchain 2.0

Blockchain 2.0 was born when developers realised the technology had applications beyond currency. The development of the Ethereum platform allowed for the deployment of decentralised applications by combining data storage and smart contract execution. These ranged from social media networks to financial applications.

The most significant constraint blockchain 1.0 and 2.0 faces is scalability.

For example:

• The high energy consumption required to support the current Bitcoin network costs over $1.5 billion a year making it unfeasible for mass adoption.
• With Ethereum, every node on the blockchain must calculate the smart contracts in real-time, which results in low transaction speeds (~15tx/sec).

However, both of them faced the common problems that decoding costs were so high and the decoding time was still slower than the expectation of many users. Increasing difficulty means increasing cost and time also increased. This makes the distance of users and developers BlockChain more and more distant.

Blockchain 3.0

Block Chain 3.0

The current technology can not process the volume of micro-transactions necessary for worldwide mass adoption. To address this, Blockchain 3.0 is under development.

CSE has applied the science to solve this problem:

• Open chain networks;
• Block lattice structures;
• Cloud nodes;
• Micro Node;
• Hyperthreading;
• Stratification;
• Multi-layered Security

Vision – Opportunities

Blockchains are a virtual ledger, one can use this technology for all sorts of things other than money. Below are common issues that need the potential application of blockchain which will definitely change the world.

Decentralised Internet:

Programmers are currently working on decentralised internet platforms to distribute all the functions of the internet over distributed nodes which will increase the resiliency of the world wide web.

Smart Contracts:

Smart contracts can be built on top of a ledger and operate as decentralised applications. These programs can run functions which are becoming more sophisticated and may diminish the need for standard legal contracts.

Decentralised Markets:

One challenge with cryptocurrencies such as Bitcoin is the need to trade on centralised exchanges which can be shut down or hacked. Decentralised markets allow trading without having to trust a third party.

Distributed Cloud Storage:

Distributed cloud storage avoids the need to place faith in large centralised companies where personal data is vulnerable and pricing may escalate to cover the expanding number of data servers.

Decentralised Social Networking Sites:

Social networking sites are centralised and are prone to censorship of information. Decentralised social media platforms mitigate this and financially reward the content creators.

Encrypted Messaging:

Peer to peer messaging can leverage blockchain technology to encrypt messages and store data bits efficiently on many different computers where they can only be accessed with a private key.

Proof of Ownership:

Items that are purchased could be tracked on the blockchain to demonstrate proof of ownership and to prevent the sale of stolen goods which may eventually help to reduce crime.

Authenticated Voting:

While digital voting can be susceptible to tampering, blockchain voting technology is verifiable and would allow anybody to audit the blockchain to confirm votes are time stamped and legitimate.

Stock exchange:

In traditional stockmarket there is typically a delay of 2–3 days for settlement of stocks and bonds. Trading stocks on a blockchain is more cost effective and provides instant settlement.

Real Estate:

Property titles, transactions and historic value can be built onto the blockchain providing transparency and educing the time and cost associated with real estate transactions.


E-commerce, Payment Gateway, Transportation, Healthcare services, …

What is CSE?

Blockchain’s era is extremely fast and cheap

CSE Platform 3.0

CSE Platform 3.0

CSE has applied the science to solve the issues: Open chain networks, Block lattice structures, Cloud nodes, Micro-Mode, Hyperthreading; Stratification; Multi-layered Security for super-speed and super-cheap purposes.



. Micro-node;
. Virtualization and Node Dispatching;
. Classification and distribution of treatment streams;
. Masternodes.


Masternodes are nodes running the same wallet software on the same blockchain to provide extra services to the network.

These services include:

. Anonymization increased privacy of transactions;
. Instant transactions;
. A decentralized governance;
. A decentralized budgeting system;
. Immutable proposal and voting systems.

For providing such services, masternodes are also paid a certain portion of reward for each block. This can serve as a passive income to the masternode owners minus their running cost.

What makes Masternode Unique?

The additional benefits of masternodes can lead to less number of users conducting Proof of Stake (PoS) mining activities and thus lowering the security of the PoS network.

Masternodes provide a valuable service and should be rewarded for that service, but main aim is not to reward the extra value which they provide. For we believe that doing so disproportionately benefits masternode owners and beyond other users of the system and ultimately leads to a greater degree of centralization.

The reward portion is further split dynamically via the Seesaw Reward Balance System between masternodes and staking nodes.

The logic is simple in its roots. The higher the masternode count, the smaller the reward portion of each PoS block that will be paid out to the masternodes and the larger the reward portion for staking nodes. Conversely, when the masternode count falls, the masternode reward portion is increased and the staking node reward portion decreased.

The PoS block reward starts with a ratio of 9 to 1 towards masternodes when the amount of coins locked to masternodes is lower than 1% of the total coin supply.

When the number of coins locked to masternodes go above 41.5% of the total supply, the block reward amount will shift with more than 50% of the block reward going to staking nodes. This has the effect of making it less attractive to provision more masternodes as it has the potential to significantly lower its profitability compared to staking that has less upkeep cost.

This threshold was selected as it would allow a strong network of profitable masternodes while creating incentive for approx. 60% of the total coin supply to be available for staking to secure the network and to maintain liquidity.

Another intended benefit and goal of the Seesaw Reward Balance System is to ensure that it is more profitable for users running masternodes than it would be to stake the qual number of coins, under the normal circumstances of being below the equilibrium threshold. The reason behind this is due to the extra cost, risk and time associated with maintaining the masternodes are greater than staking alone.

Quantum Chip

Intel has announced the delivery of 17 qubit superconductor chips for quantum computers to QuTech, Intel’s Quantum Research Partner in the Netherlands. New chips are made by Intel and have unique designs to achieve improved productivity and performance. Quantum computing, in essence, is paramount in parallel computing,

With the ability to solve problems that ordinary computers can not handle.

In addition to applications that promote research in chemistry, materials science, and molecular modeling, quantum. Computers can participate in advanced algorithms that speed up decoding of power consumption. This reduces the cost and makes Blockchain widely available in a wide range of industries.


. Very sensitive Qubits: Any noise or unwanted observations of them can cause data loss;
. This sensitivity requires them to operate at about 20 millikelvin – 250 times colder than deep space. This extreme perating environment makes the encapsulation of the qubit key efficient and functional;
. Superconducting is a very rare and very expensive material;
. Possesses Infinite Power, but Quantum Computer fiddles with concentration when participating in BlockChain decoding. To solve this problem, the developer has to use the supercomputer virtualization approach to millions of nodes.

Smart Contract 2.0

Smart Contract 2.0

Technology is changing almost every aspect of our lives. It is therefore no surprise that it has already had a profound effect on how legal contracts are made (and signed), for example, we now negotiate via e-mail, VC and Skype and sign electronically without ever meeting face to face.

Technology is also revolutionising other broader issues of electronic contracting, including identification of parties, and is forcing us to rethink the very fundamental ideals of what it means to conclude and perform under a contract.

Smart Contracts

Smart contracts have been around for some time. Think of the humble vending machine. The advent of distributed ledger/blockchain technology, such as Ethereum, now brings us to a new era. “Smart Contract 2.0”.

Smart contracts will fundamentally change the way in which we contract. It will bring significant benefits and will transform certain sectors and industries. It will likely bring with it disintermediation and decentralisation. It will also require a new approach to lawyering to navigate and address the complex issues. Smart Contract 2.0 will need the “smart lawyer”.

Smart Contract’s logic is: if the technology can automate and self-enforce performance, we should be able to do away with the need for legal contracts, and law in general. “Smart contract” will be one which serves the purpose of a valid and binding agreement coupled with technological auto-performance, without further human intervention.

Some of benefits of smart contracts operated on blockchain technology include:

1. Improved efficiencies;
2. Transparency;
3. Reduced cost;
4. Risk reduction;
5. Guaranteed performance.

Smart contracts raise multiple legal and commercial issues, including issues of:


Immutability, a fundamental pillar of the blockchain, is often upheld as one of the key advantages of the smart contract. However, it raises challenges, for example, in circumstances in which regulators might need to intervene. Many proponents of the purely technical smart contract will argue this should never be allowed to happen.

Multiple permutations:

Smart contracts may need to anticipate every possibility, including factor extraneous to the contract itself.

Smart Contract 2.0

Not only is the currency, smart contracts are going to be widely adopted in many fields in the future. The future is the era of Smart contract 2.0

Blockchain speed and Scalability

The speed of transactions on the most popular public blockchains does has an impact on startups. Indeed, transaction speed is at the center of concerns about the scalability of blockchains like Bitcoin and Ethereum.

Regardless of their differences, block mining in both Bitcoin and Ethereum is a stable mechanism and doesn’t typically deviate from the expected times.

In Bitcoin, each block is a maximum of 1 MB and will always take about 10 minutes to be mined, as specified in the Bitcoin white paper. The expected block time in Ethereum is much quicker, 10-19 seconds. That’s mainly because its block sizes are much smaller – currently around 20-30kb.

Blockchain speed and Scalability

Bitcoin transaction speeds

On average Bitcoin processes about 7 transactions per second, which makes it pretty slow compared to Ethereum and Ripple (the fastest major cryptocurrency, at 1,500 per second). Visa does 24,000 transactions per second.

Why the variance? It comes down to two main factors:

1. The amount of network activity;
2. Transaction fees.

Normally you can expect to pay a fee of around $3. But when the network gets very busy, the fees go up. This happened in December, during the bull run. Media reported an average transaction fee of $50 during this period.

This volatility in transaction time makes it difficult for Bitcoin to be used as a payment mechanism.

However, Bitcoin’s developer community has come up with two solutions to this problem:

“Lightning Network”

As for Lightning Network, without getting too complicated, it enables ransactions to happen ”off chain” and the end result added to the blockchain later. This requires trusted nodes, so it’s not as decentralized as confirming transactions directly on Bitcoin’s blockchain. It’s still an experimental technology.


By separating signature and transactional data, SegWit reduces the “weight” of transactions, which creates more room in any given block. This does not increase the network’s block size limit, but it does increase the volume of possible transactions.

Ethereum transaction speeds

The Ethereum blockchain can only do roughly 15 transactions per second. But while block time is fairly consistent, when there are a lot of transactions to process it can ead to long queues.

In December of 2017, the CryptoKities craze reached a peak and clogged up the Ethereum network, the queues were 20,000 – 25,000 transactions. Even now Etherscan shows an average queue of around 15,000 – 20,000 transactions.

Ethereum hopes to handle the problem of transaction queues with different solutions:

“Lightning Network”

Like Bitcoin’s developers, Ethereum is also exploring off-chain solutions. One is called Raiden, which is Ethereum’s version of Bitcoin’s Lightning Network. Another off-chain solution being developed is Plasma, which uses “a series of smart contracts to create hierarchical trees of sidechains”.


‘Sharding’ draws from a traditional scaling technique called ‘database sharding’, which effectively breaks a database into pieces and puts each part on a different server.

Speed solution of CSE

Speed solution of CSE

✓ Lighting Network

CSE still inherits the Lighting Network technology, allowing off-chain processing systems in many cases.

✓ Hyperthreading Technology

Lessons learned from Bitcoin and Ethereum, CSE utilizes hyperthreading technologies, making the super-fast processing unprecedented. This planning is like the waiting line and the door system at the airport. If the number of transactions increases dramatically, the system automatically opens more channels and opens more doors to ensure the maximum number of transactions per thread. Maximum queue at CSE is 100 transactions.

✓ Quantum Supernode and Masternode

Quantum Supernode is involved in microprocessors in each transaction. MasterNode: Professional support services, similar to aviation support services: • Goods support; • Support for the elderly and people with disabilities; • Shuttle service in and out of the airport.

CSE’s Masternode also has a special service that handles large contracts such as the lease of private airplan,…

Crypto Securities Exchange

Crypto Securities Exchange


In the world of finance the ICO might be the most polarizing three letters of 2018. In the past three years over $5 Billion has been raised via ICOs.

With the SEC recently stepping up its pressure on ICO issuers,companies are scrambling to find three new letters to distance themselves from what will probably go down in history as a black eye moment for crypto currencies.



Security Tokens and STOs are digital assets that are subject to federal and global security regulations. If cryptocurrencies like Bitcoin are considered “programmable money” then you can consider Security Tokens a version of “programmable ownership”. Security Tokens and STOs are game changers for financial and ownership models, allowing any company to offer equity, debt or dividends. Any fund — be it, venture capital, hedge or private equity — can offer liquidity. Any asset can offer full or partial ownership or revenue shares.

Proper management of an STO requires an in depth and active mastery of global security laws and regulations, not to mention a team of programers to create smart contracts digital wallets, and a platform for managing the whole rocess throughout the life-cycle of the token.

The world’s first turnkey white-label solution for tokenization of securities of real-estate, funds, companies, and other assets. CSE will manage the processing of the solicited investors from login to capital received, as well as the issuance and management of security tokens throughout the lifetime of the asset.

CSE Technology

Blockchain Foundation 3.0
Blockchain Cloud
Blockchain Database
Supernode Network
Smart Contract 2.0
Cold wallet – ledger 3.0
Blockchain App
Artificial Intelligence
Multi-layered Security
API Standard

Blockchain Cloud

Over the last ten years two of the most important technologies that have seen widespread adoption have been virtualization and Bitcoin. Virtualization paved the way for cloud computing and the Bitcoin protocol has the potential to reinvent finance using cryptographic building blocks called blockchains.


Bitcoin relies heavily on the blockchain, a public “ledger” of every transaction that has ever taken place that is distributed to the edge of the network. The key idea is that there is no centralized authority that is responsible for saying what is true or what is false, rather multiple distributed parties come to consensus, that consensus is entered into the ledger which thereafter can be accessed by anyone in the future. It is computationally infeasible for a single actor (or anything less that majority consensus) to go back and modify history.

The Cloud as a Data Logistics Platform

. What do consumers of cloud computing care about?
. What do they want to know is true?
. What would be the equivalent of a blockchain transaction in the cloud?

If we position the cloud as a giant logistics platform for data, then we can think of a transaction as the transport or processing of data. Data enters in to the cloud (network), it is processed (compute) and then is either returned to a consumer or kept for re-use at a later date (storage).

Chief Information Officer (CIO) wants a Verifiable data supply chain

If you ask CIOs what they need to move their mission critical processes to the cloud then you will hear terms like “accountability, reliability, compliance, security, verifiability, auditability, acceptance of liability” etc. In other words they demand that there is a secure supply chain and that every step in that supply chain can be verified in real-time and when things go wrong it is possible to figure out what went wrong and that there is someone who can be held accountable.”

Today not a single cloud vendor can say this. It also shows the opportunity; if such a platform could be built and the concerns of Enterprise CIOs could be satisfied then the entire global enterprise IT budget would be up for grabs.

Building a Blockcloud

Everything, that happens to data, whether transport, processing or storage of data is entered into the blockchain.

What happened to data, who accessed the data, where it went and how that data was governed can be verified by anyone who has access to the blockchain.

In essence the blockchain freezes the compute platform in time and users of the platform can verify that the platform is in the correct state in real-time.

Such a system would give complete traceability for the cloud, entities who are either using or administrating the cloud can be held responsible for their actions, regulators get to audit all processes and everyone involved can verify what happened when.

Blockchain Database

A database running on the World Wide Web is most often using a client-server network architecture.

A user (client) with permissions associated with their account can change entries that are stored on a centralized server. By changing the ‘master copy’, whenever a user accesses a database using their computer, they will get the updated version of the database entry. Control of the database remains with administrators, allowing for access and permissions to be maintained be a central authority.

For a blockchain database, each participant maintains, calculates and updates new entries into the database. All nodes work together to ensure they are all coming to the same conclusions, providing in-built security for the network.

The consequences of this difference is that blockchains are well-suited as a system of record for certain functions, while a centralized database is entirely appropriate for other functions.

Decentralized control

Blockchains allow different partes that do not trust each other to share information without requiring a central administrator.

Transactions are processed by a network of users acting as a consensus mechanism so that everyone is creating the same shared system of record simultaneously.

The value of decentralized control is that it eliminates the risks of centralized control. With a centralized database, anybody with sufficient access to that system can destroy or corrupt the data within. This makes users dependent on the administrators.

Banks need to spend billions of dollars keeping these centrally held databases from being altered by hackers or anyone else who might wish to profit from another’s loss.

Blockchain technology can create databases that have histories of themselves. They grow like ever-expanding archives of their own history while also providing a real-time portrait.

It is the expense required to compromise or change these databases that has led people to call a blockchain database immutable. It is also where we can start to see of the evolution of the database into a system of record.


Centralized databases have been around for decades, and have seen their performance increase in lock-step with a formula that has come to define innovation in the digital era: Moore’s Law.


Bitcoin is a write-uncontrolled, read-uncontrolled database. That means anyone can write a new block into the chain, and anyone can read a block in the chain.

A permissioned blockchain, like a centralized database, can be write-controlled and readcontrolled. That means the network or the protocol can be set up so only permissioned participants can write into the database or read the database.

But, if confidentiality is the only goal, and trust is not an issue, blockchain databases pose no advantage over a centralized database.

Hiding information on a blockchain requires lots of cryptography and a related computational burden for the nodes in the network. There is no way to do this that is more effective than simply hiding the data completely in a private database that does not even require network connectivity.


CSE Ecosystem