In the future (I hope, in the coming years), part of the transactions should be generated by artificial intelligence when it is capable of doing so. Meantime, it is to be created by people. For me personally, DayLight is a platform that will ensure transition from the classical system of government to the system where AI makes most decisions, instead of officials. In the future that I want to create politicians and officials are highly educated IT specialists that are able to analyze the solutions proposed by the artificial intelligence.

DayLight can exist alongside the conventional financial and government system, gradually substituting them.

Citizenry

Electing the head of the Central Bank

Creating a party

Voting for the party

Senators election

Head of State election

p2p loan service

Funds transfer

Registration of marriage

Divorce

Marriage contract

Handling inheritance documents

A request for real estate sales

Company registration

Companies

Registration of goods

Item registration by the company

Periodicity of paying wages in the company

Employment of the citizen

Employee dismissal

Employee bonus award

Registration of the general director’s trustee

Purchasing goods by a company from another company

Writing the goods off from the company’s balance

Creating a bill

Issuing shares

Liquidation of the company

Purchasing goods at an auction

Crowdfunding

Buying/selling shares

A request for a loan

Expenses transactions

Cetral Banks

Central Bank

Changing IP address of the Central Bank node

Currency emission

Registration of the Central Bank representative

Revocation of the license from the Central Bank representative

Setting parameters for anonymous accounts

Currency exchange

Credit provision

State

Setting State Parameters

Governor elections

Local authorities elections

Registration of a citizen

Recording the death of a citizen

Taxation

Adding a property

Loading federal budget

Central Bank

The Central Bank of one country doesn’t have to trust the Central Bank of another country. In order to perform a transaction of exchanging one currency for another, one has to know the balance, and as a consequence, the history of all account transactions. Therefore, each Central Bank should have information about all accounts in all currencies. In this case, not only the Central Bank, but also the whole market will know the amount of the funds emitted by other Central Banks.

Since the Central Banks of various countries can’t rely on any single central authority, the only option would be using blockchain for data exchange.

The Central Bank should be sure that the balance of an account in an uncontrolled currency is exactly the same as stated. For this purpose it should pass all transactions associated with this account through its node. Namely, crediting and debiting the account via transfers from other citizens, companies (purchasing, sales, salaries, dividends, distribution of profits), state (taxes, wages), and Central Bank (emission).

All 159 Central Banks have been written beforehand into the CentralBanks table.

Changing IP address of the Central Bank node

Currency emission

Assigning funds to the accounts of all citizens

Increasing the funds by certain percentage

Increasing funds at credit accounts

Instead of repurchasing government bonds, the Central Bank will have to perform emission using direct crediting to the accounts of its citizens. If the emission is not intended to entail permanent increase of the funds, the Central Bank will likely credit funds to citizens’ accounts.

The operations of crediting funds to a billion citizens will be very resource-intensive, so they should be performed in several iterations within several hours

Electing the head of the Central Bank

Holders of the currency will once in X days elect the head of the Central Bank of the country in which they are registered.

Creating a party

If the state parameters settings contain a multiparty political system, any citizen who has reached the age defined in the parameters may create his own party.

Voting for the party

Senators election

Head of State election

The Head of State has the right to set tax rates, and load the country’s budget into the blockchain. However, when configuration parameters of the state are changed, various functions may be transferred to other authorities.

Setting State Parameters

Each country may set up its own political system: the number of parties, their powers, the Head of State’s powers, etc.

Governor elections

Local authorities elections

Registration of a citizen

Date of birth and location are required for participation in the authorities elections.

If UserId = 0, the account is anonymous and is subject to special limits established by the Head of the Central Bank. New users may only be registered by the representatives of the Central Bank

Recording the death of a citizen

As a result of this transaction, the status in the Users table is set to “diseased”, whereby it becomes possible to perform a smart contract to distribute the inheritance. If there is no such smart contract, all funds and property of the deceased citizen are automatically distributed among his closest relatives.

Credit provision

Funds transfer from credit account to current account

To all citizens of the country, the Central Bank may accrue any amount that the citizen may use in full or in part. For example, the U.S. Central Bank has accrued $10,000 of loan funds at the interest rate of 0.25%/year to all citizens. If you need $3,000, you may take only this amount from the $10,000, and you will have to pay the interest exactly for these $3000. By the word “take” I mean that you will have to transfer this amount to your regular bank account (UsersAccounts).

Loan payment

After the loaned funds arrive to the account (UsersAccounts), an entry is created in UsersLoans, where the amount of the loan to be repaid by the citizen is indicated. If it is a bulk loan from the Central Bank, Pledge will be empty. At the time of record creation, Amount=Remain. After each loan repayment, Remain is recalculated. Recalculation takes into account Pct and the time of previous Remain recalculation in order to take into account the accrued interest. If the loan is secured, in the absence of payments equal to MonthPayment within the DefaultPeriod the pledge PledgeItemId is auctioned (except when PledgeItemId is a house or an apartment).

p2p loan service

The user may lend his funds to another user.

Accepting the terms of the loan

If this transaction is sent within 24 hours after receipt of the offer, entries are added to UsersLoans, and funds are accrued in UsersAccounts.

Registration of the Central Bank representative

The representative of the Central Bank may register an account for citizens, and approve or reject requests for loans. The representatives will earn profit if the loan is repaid, otherwise they are charged a fine. If the representative doesn’t want to go bankrupt, he will have to approve the loan to earn income, however, by approving all loan requests, he can easily go into the red.

Revocation of the license from the Central Bank representative

Setting parameters for anonymous accounts

Citizens need anonymous accounts to pay for some goods anonymously. At the same time, these accounts should not be used by criminal networks for gaining illegal income.

Company registration

On our planet, there are many variants of companies operation. All of these variants should be available to any citizen in any country. The program code of the rule will be described in DayLight. For a citizen, the choice of rules will be in the form of a catalog, where he can learn how the company will operate, and select the desired option.

Funds transfer

A person can send funds to a company (the purpose of the payment is encrypted), or to another person (the purpose of the payment is encrypted). A company can send funds to another company (the purpose of the payment is encrypted), or to a person (the purpose of the payment is encrypted).

Taxation

The Head of State (or other authority, depending on the settings in the CountryOptions table) sets the rates of the federal and regional taxes. He also establishes which part of the tax remains in the budget of the region, and which part goes to the federal budget.

Taxes from companies are automatically deducted once in three months. When the tax is debited, its type and the minimum amount for this interest rate, whether it is a federal or a regional tax, are taken into account. The Head of Government may establish the minimum amount of citizens’ income that would be tax-exempt. Similarly, for companies there may be the minimum amount when the company is tax exempt.

An auxiliary transaction is sent automatically, and triggers the process of debiting a tax, as indicated in the Taxes table for the period.

Adding a property

A property may be only added by local authorities.

You are walking down the street, you see an abandoned plot that the owner clearly does not need, but you like it and would like to buy it on credit. You send a transaction with the proposal to sell the land plot. The representative of the Bank automatically sends a transaction with loan confirmation (automatically, since the algorithm has analyzed your income, the initial cost of the land and decided that the loan will be repaid with the probability of 99.9%). The owner of the plot receives a notification about your purchase request. If the owner is happy with the price, he will have to press the “sell” button.

A request for real estate sales

The owner of the real estate can have multiple signatures, and keep the 2-d key with a special institution intended for preventing pressure on the citizens in order to steal their property. In this case, if the owner of the real estate wants to make the deal, he will have to come to this institution, name the ID of the property, sign the identification request with his first key, get the signature and send it to the network; thus, the transaction will be closed. If the seller is not afraid, he can disable the 2-d signature.

Confirmation of the transaction by the seller

Expenses transactions

If a company wants to get a loan, it should specify what the funds will be spent for.

A request for a loan

Handling inheritance documents

In case of death of a citizen, it is possible to decrypt and fulfill his smart contract, which describes the algorithm of inheritance distribution.

The decrypted smart contract contains the signature of the antecessor; if it is the same as the one sent previously (SignatureEncryptedSmartContract), the smart contract is fulfilled.

Registration of marriage

Registration of marriage is required for implementing certain transactions, including subsequent separation of property in case of divorce. A marriage contract is a smart contract that can only be fulfilled if the status is “divorced”.

Divorce

One spouse

The other spouse

For divorce, you have to send 2 transactions twice, with an interval of at least 1 month. This is necessary to rule out impulsive actions on the part of the spouses. After the divorce, for the purpose of executing the marriage contract, someone has to decipher it, and send it to the network. In the absence of the contract, all property acquired during the marriage is divided between the spouses.

Canceling a divorce

If the couple has decided not to divorce, they can send a divorce cancellation request. After that, entries will be made in Time1Close and Time2Close

Marriage contract

Loading federal budget

Costs can be explicitly specified, for example, salary of a specific employee, or purchasing some equipment, and links to already created entries. Links to entries may be used for transferring funds to some agencies or regions.

Registration of goods

For example, when selling an iPhone, the retailer has to specify Goods ID for the iPhone, and then the buyer will know that it is exactly the iPhone he is buying.

Depreciation is also identified for the item, which may be taken into account in automatic calculation of the company’s tax.

Item registration by the company

A transaction about purchasing a product is only legal when the ID of the item is specified. This is a kind of “receipt” that would enable the buyer to complain about product quality to the appropriate authority. Item is used for creating orders. Orders are used for creating bills.

Periodicity of paying wages in the company

Employment of the citizen

Employee dismissal

Upon dismissal, the citizen is automatically paid a dismissal pay. The amount of the dismissal pay is determined by local authorities.

Employee bonus award

Registration of the general director’s trustee

Purchasing goods by a company from another company

Specify the ID of the balance sheet to avoid the need to debit manually.

Goods ID should be specified to make sure that specific goods are stored at warehouses. In the event of liquidation, shareholders will receive the income from company’s property sale. Depreciation is also taken into account when taxes are debited if this Item ID has it.

Writing the goods off from the company’s balance

Creating a bill

The buyer comes to the shop, collects goods, the cashier sends a transaction with the list of goods, gets the order ID, the Buyer shows the qr code with his userID to the cashier, the seller sends the bill for the userID, the buyer sends the transaction of funds transfer, where he encrypts the order ID with his key and with the shop’s key. The cashier sees the payment with the proper order ID and releases goods to the buyer. The whole process takes a few seconds. Information about what has been purchased is only available to the buyer and the seller.

Issuing shares

In DayLight, all companies are public. The shares are traded in the inner decentralized exchange. The shares may be assigned various privileges. The benefits of various privileges are described in code inside DayLight.

Liquidation of the company

If shareholders decide to liquidate a company, all funds from the company’s account will automatically be distributed between the shareholders, and the property on the company’s balance sheet is sent to the exchange.

Purchasing goods at an auction

At an auction, one can sell or buy any goods listed in the Items table.

Crowdfunding

First, one has to create a company and issue shares. Next, specify what % of the shares will go to the investors. If the creators of a crowdfunding project are ready to sell their product at a discount to investors, they can create a shop where one will be able to pay for the product with the shares of their company. If the company’s shares grow in value, it will be more profitable for the investors to sell the shares at the stock exchange instead of a purchasing the product.

Buying/selling shares

At the inner decentralized exchange, companies’ shares may be purchased by any users from any country.

Currency exchange

All exchange operations will occur at the internal decentralized exchange. Currency may be purchased and sold by both users and companies on equal terms.

P.S.

In my next article I will tell you how DayLight will process over 1 mln transactions per second (~1.8 gbit/s per node), and how the consensus mechanism works in Daylight.