top of page

7. Building with Onli

Welcome Back, it is hot out there and usually in summer since we are in Vegas you switch to the vampire schedule. You sleep in the day and live at night. So it's evening for some of us and morning for others. Yesterday was a deep dive and really good Q&A. Today we are going to keep it relatively light. Or as light as I can be, lol.


You are not developers and you don't have to be. That is why you have a dev team assigned to your project. You do need to have a good idea about the broad strokes. That is what we are going to cover. Ok lets get started.


The blockchain industry has, unfortunately, co-opted and distorted many terms. Marketing efforts have taken liberties with language, and in an era where journalism often falls short of fact-checking, misinformation can spread rapidly. Therefore, it's crucial that we return to first principles and redefine many terms to gain a clear perspective. This is why I emphasize technical definitions. I want you to have a solid understanding of why "this" is not "that," which will help you navigate the sea of jargon out there.


Onli technology gives you the ability to create something that can be quantified as unique within a computer system. Imagine being able to store information in a state that is not only immutable but also quantifiable and there is only one of them across a network- this is what we call an 'Asset' in the Onli ecosystem. By now, you should have a solid conceptual understanding of what Onli is. The mission of Onli Corporation is to simplify the development of applications that utilize Onli Based Assets, which we refer to as Appliances. We call them Appliances because you simply plug them into a data network, where data flows like electricity.


What truly sets these Assets apart is their capacity to retain their unique state as they traverse a network of interconnected devices. This is because these Assets are engineered to evolve with each transaction, preserving their uniqueness at every stage. How is this achieved? Onli utilizes a distinctive data structure known as a Genome, which is tightly coupled to an unforgeable credential, referred to as a Gene. This pairing forms a singular data container that is entirely unique unto itself. This system operates within a self-contained trusted execution environment. Here, conventional computing operations like transmission are carried out through a process called Genome Editing. This method employs a blend of Genetic and Cryptographic Algorithms to evolve the dataset as it moves. This aligns Onli closely with the principles of quantum reality, where a thing exists as a single instance.


One of the key principles of Onli is the concept of 'actual possession'. Unlike many digital systems that operate on 'custodial possession', where a third party holds 'custody' and ownership is merely an identity claim recorded in a ledger, Onli operates on the principle of 'actual possession'. This means that you, as the owner, physically possess the digital asset. In essence, Onli is not a custodial possession or ledger-based system. It's a system where digital assets are something you physically possess.


Understanding the concept of Actual Possession is crucial, especially if you're planning to build something with Onli. Blockchain operates on a Custodial Possession system, while Onli is based on an Actual Possession system. The difference between Actual Possession and Custodial Possession lies in how they define transactions.


In a Custodial Possession system, a transaction occurs when one party holds (has custody of) the Asset and makes changes to an entry in a ledger. Ownership is substantiated by an identity claim of an entry in the ledger.


On the other hand, in an Actual Possession system, a transaction is a change in possession, where ownership is equivalent to possession. In simple terms, the difference is that an actual possession system operates like the cash in your pocket, while a custodial system functions like your bank account.


Consequently, the digital versions of these two transaction systems are naturally going to differ from each other. Onli operates on Actual Possession, without the need for a ledger. Cryptocurrencies and "The Blockchain", on the other hand, operate on a custodial possession system that records transactions in a ledger. These are fundamentally and technically different concepts, and they function differently.


In our Government Sales division, the distinction between Actual Possession and Custodial Possession is particularly significant. Let's illustrate this with an example. When you deposit something of value in a bank, you grant the bank custody, and in return, they provide you with a claim. This claim is substantiated by your identity and an account number. A government can request the bank to seize the asset because the bank has custody of it. In the case of cryptocurrencies, there's no physical asset, just a claim held by a community. The institution (or in the case of crypto, the winning miner) can commit transactions to the ledger.

However, Onli operates differently as it has no ledger. In an Actual Possession system, there's no custodian. Only the owner possesses the asset. Only the owner can commit transactions, and these transactions are exclusively between the involved parties. For a government to seize assets, they must obtain them directly from the owner, because only the owner possesses the asset.


This distinction has a direct impact on the nature of an economic system. Onli operates much like the cash in your pocket - it's something you physically possess and control, unlike a bank account which is a record in a ledger with a claim. This also implies that you can't develop collectible marketplaces driven by the Next Greater Fool Theory with Onli, as there must be a contractual right or obligation. There must be something tangible behind the digital instantiation as it is an owner-to-owner transaction.


The key point is that in Actual Possession systems, transactions are committed by owners, not third parties. This is fundamentally different from custodial possession systems. This is something your legal team will likely remind you of, and it's why you need legal counsel as an issuer.


This is not Crypto. Onli is original code. It has nothing to do with bitcoin or Ethereum or any of that stuff. Onli is not a private key and there is no ledger. The feature differentials are

  1. Onli is original code. Onli is not a clone of bitcoin, erc20 a NFT, EOS or anything like that. Onli is not stored on “the Blockchain”. It just doesn’t work that way.

  2. There is no private key. No ledger. Since the patented technology makes it possible for there to be only one of a thing then that means you can have actual possession of it. No ledger is needed.

  3. An ONLI is a piece of code that evolves as it moves from person to person. No DLT. Owners are decentralized not the ledger. There is no ledger.

  4. Every Onli has an owner. It is not anonymous. Every Owner is authenticated. Every transaction is strongly authorized. Ownership is registered in a transparent validation network that is private by default. Independent validation is available only to those you give permission to.

  5. Onli are stored in a Vault not a wallet. This is actual possession technology not custodial (ledger) technology.

  6. Onli are minted not mined. Since there is no ledger, there is no infrastructure sharing scheme. No mining. No consensus.

  7. Onli, unlike crypto, was built for financial services from day one. Since every Onli has an owner, independent validation and actual possession. This means it has title and can meet accounting assertions as a financial Asset. Onli was built to fit within regulatory environments.

  8. Onli is a full stack from the ground up. Its infrastructure and identity management, in one. You can define an Asset, build and operate a marketplace for your own brand of Onli. No miners.

  9. Onli has simple stable pricing. There are no transactions/gas/processing fees because there is no mining. You buy services like compute (changeOwner) and storage (Vaults). You buy Value_Assets (coins) for a Nickel. Vescel, Cryptographic Containers that you can put any file into, cost 100 basis points. Onli is a white label technology. You define your Asset and sell your own brand. You set the price.

  10. Onli is fast and final was built specifically to beat the T+2 window. Onli is fast, reliable, it has consistency and it’s scalable and final. There is no risk of forking or hacking.

This is different from the ground up.


Purge those crypto ideas from your mind. This is not that. A dolphin is not a nuclear submarine, yes they both go in water but there are different things altogether.


Building on a solid foundation, the Onli-One ecosystem is composed of Assets, Owners, Issuers, and Appliances. Issuers are responsible for minting Assets, which are securely stored in Vaults and owned by Owners. These Assets are transferred across the peer-to-peer Onli-One network. Developers, on the other hand, create software applications or Appliances that deliver value propositions via OnliCloud.


Access to the Onli-One network is facilitated through Onli-You, a mobile application that serves as a passport to the network. It includes Onli ID, a high-security authenticator for login and transaction authorization, and a Vault for secure asset storage. The ecosystem is designed with privacy as a default setting.


This innovative approach to digital asset management and transfer represents a significant advancement over traditional blockchain technologies, offering a quantum leap forward in the way we handle digital assets.


he first component of the Onli-One ecosystem is the Asset. Unlike traditional blockchain systems, Assets in Onli-One are minted, not mined, and are issued by Issuers. The process begins with an Asset Designer, typically someone with legal and regulatory expertise in financial assets. A Financial Asset is derived from a contractual right or obligation, meaning there's a clear contractual relationship with the item of value. As an owner of an Onli-Based Asset, you must have a well-defined document detailing your contractual rights and obligations, which your legal counsel will help you draft.

Once the feature set is programmed into the Asset, it is minted by The Onli Corporation and delivered to an offline Treasury. The Issuer then takes delivery and connects it to a Live Treasury. The Issuer transfers the Asset to the first Owner in a process called Issuance. If a marketplace is involved, this process is usually facilitated by that marketplace.

It's important to note that a Marketplace, where buyers and sellers are matched, is different from an Exchange, where one asset is exchanged for another, typically fiat currency. Think of the Treasury as the warehouse, the Marketplace as the store, and the Exchange as the cashier. Onli does not operate Marketplaces, Exchanges, or On/Off Ramps.

Issuance is a critical concept to understand. For instance, in the EB use case, there's no issuance in the marketplace. The seller and buyer enter a contractual relationship for the debt and settle through their attorneys. The buyer may then list the asset for sale in the secondary marketplace. In the Species use case, the Issuer is commoditizing cash, so the contractual relationship is standardized, and Issuance and the Secondary Market exist in the same marketplace.

Onli was specifically built by finance professionals to digitize the distribution component of securitization, so it has some unique features compared to typical crypto systems. You can create tangible or financial assets with Onli, as well as intangible assets (files you put in a container called a Crypt and bind an Onli to it).

In the case of intangible assets, such as a work of art, the Issuer is the first Owner. The Owner may attach a UsePolicy, a capability-based security system, that controls who can use the contents, when or where they can use it. The Owner lists the asset for sale or lease on a Marketplace, which matches buyer and seller. The buyer must have the ability to inspect the declaration before purchase. Thus, Issuance is a distinct differentiation in the Onli ecosystem.


The next layer in the Onli-One ecosystem is the Appliance. An Appliance is an application that interacts with an Onli. A common type of Appliance is a Marketplace, which matches buyers and sellers of a specific Asset Class. Typically, the Issuer of the Asset Class owns and operates the associated Marketplace. However, the Marketplace can also be independent, but it's important to note that only the Issuer decides who can create Appliances for their assets.


As an Appliance developer, you can use any technology you prefer to build your Appliance. These Appliances connect to Owners via the Onli Cloud. To develop an Appliance, you'll need an account from Onli Cloud. The Onli Cloud is a dedicated infrastructure for a single client, typically owned by an Issuer. In technical terms, the Issuer adds the Appliance Developer to their Onli Cloud instance. This setup ensures a secure and efficient connection between the Appliance and the Onli-One ecosystem.


Assets in the Onli-One ecosystem are securely stored in a Vault. There is only one Vault in the ecosystem, and that's within the Onli You app. To become an Owner and gain access to this Vault, you must first register through an Appliance. Once approved by an Appliance, you can download the Onli You app. You only need to become an Owner once. After that, any subsequent Appliances can simply add you to their system.


As an Owner, you'll be issued an Onli-ID. Unlike the web where multiple identities can exist, in the Onli-One network, each human has only one Onli-ID. There's no way to track anyone on the Onli-One Network. All your data is stored on your local device, and your backup is stored on your cloud version, which is encrypted by your local device. There's a recovery process in case Owners lose their device, although they cannot recover any assets that were on that device. As an Issuer, you should have a procedure in place to handle such situations, such as being able to issue replacement Assets.


One of the unique aspects of an Actual Possession system like Onli is that as an Owner, you have to take personal responsibility for your assets. You wouldn't want to keep them on a local phone that you use for social media, for example. If you work for a corporation, your "role" will be appended to your Onli-ID. So, this is a bit different from the web and the world your users are used to with multiple personas. In the Onli-One ecosystem, every Onli has an owner, and there can only be one.


Owners in the Onli-One ecosystem are part of a private network that is not accessible to anyone who is not an Owner. This network operates on a private protocol and is peer-to-peer, with no backdoors. As an Appliance Developer, you can monitor everything that happens on your Marketplace, but there is no way to "track" what someone does on the Onli-One Network as all communication is encrypted and takes place peer-to-peer. To access that kind of data, you would need the person's device.

There are no passwords in the Onli-One ecosystem. Every Owner has a unique Gene that evolves with every transaction, making it impossible to imitate a user unless you can reproduce their entire transaction history. This means the only vulnerability is a zero-day exploit, so great care must be taken when approving Owners.


Onli-You is not a sign-up application. Your clients sign up with you. If they have an Onli-ID, you add them to your system. If they don't, you must request to create an Onli-ID for that user. As an Appliance developer, you need to create your own user object to keep track of the things you need for compliance, etc.


Every Asset class in the Onli-One ecosystem has an Oracle, which provides Owners with an independent registry that they are the Owner of a particular asset. The Oracle operates on a master-slave relationship. As an Issuer, you can clone the Oracle and provide it to whomever, like an auditor, etc. Every entry in the Oracle is encrypted separately with the Owner's Gene, meaning Owners can only see a record of what they currently own.


While all this is technical, it's important as a Founder to have a working knowledge of the nuances of building something with Onli. Onli is not suitable for everything. It's good for some things and not others. The core differentiation has to do with the concept of an Asset. You need to ask the question: are you working with an Asset -- something of value owned by an Owner, or just information or metadata about an asset? If it's the latter, then chances are Onli would be overkill, unless security is the core concern.


That wraps up our session for today. We've delved into the nuances of Actual Possession versus Custodial Possession and explored various aspects of the Onli-One ecosystem, particularly focusing on the concept of Issuance and how Actual Possession transactions differ from those in crypto and blockchain.


In the Onli-One ecosystem, we have Assets, Owners, Issuers, and Appliances. Issuers mint Assets, which are stored in Vaults and owned by Owners. These Assets are transferred via the peer-to-peer Onli-One network. Developers create software applications, or Appliances, that deliver value propositions via Onli-Cloud. Access to the Onli-One network begins with Onli-You, a mobile application that serves as a passport to the network. It includes Onli ID, a high-security authenticator for login and transaction authorization, and a Vault for secure asset storage. The ecosystem prioritizes privacy by default, offering a groundbreaking approach to digital asset management and transfer that is a quantum leap forward compared to traditional blockchain technologies.


However, it's crucial to remember that Onli is not a one-size-fits-all solution. If you're considering using this technology in finance, there are specific conditions to meet. Onli isn't an open-source free-for-all. We intend to maintain strong controls to ensure that the Onli Community evolves in a compliant and responsible manner. Onli achieves what Blockchain aspires to but can't, representing a path to financial sovereignty without borders, while strictly adhering to first principles.


This isn't about promoting a libertarian dream of anarchy and chaos. Humans haven't evolved to exist without governance. Governance isn't an evil to be eradicated. Onli was designed to fit within regulatory frameworks. Ownership is a bundle of rights established by legislation and governed by regulation. While regulation may not always be perfect, it's often a noble attempt to protect the vulnerable from exploitation, born from hard-learned lessons. Finance isn't "made-up". There's a physics to finance that no amount of cleverness can alter.


The innovation that Onli technology brings to your product is unparalleled - it offers speed, finality, scalability, accountability, and actual possession. With Onli, you reap all the benefits of Blockchain without any of its drawbacks. Onli technology enables you to not just create a better digital asset class, but a better class of asset. The transition of Real World Assets (RWAs) into the digital space has never been more seamless.


Stay cool out there and enjoy the holiday.

Comentários


bottom of page