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Libertaria

Blue Paper

2017-11.19

Authors:
Markus Maiwald, Sarah Klostermair

Contributors:
Libertaria Team
Disclaimer
This paper is a living document, a blueprint for a technical evolution. Over time it will be
revised, as blueprints tend to be, to meet the needs of a future we cannot always predict. It
describes why we are building Libertaria, how we are doing it and what resources and
organizations are necessary to achieve this.

The intended audience for this paper is not technical experts; this paper is for everybody
interested in Libertaria and its subprojects. Thus, it is not a white paper. Instead, we are
calling it our blue paper, blue because it is both a blueprint and roadmap describing the
vision behind Libertaria and a high-level approach for how to achieve it.

This paper is intended to be as brief as possible to convey the overarching vision of the
project and its subprojects. Readers with more technical expertise or who require more
detailed information on the individual projects are referred to the white papers for the
individual Libertaria projects.
Table of Contents

Part 1: Vision 4
The dangers of centralization 5
Vision of decentralization 5

Part 2: Technology 7
Libertarias Technology of Decentralization 7
Overview 7
Mercury 8
Overview 8
Structure 8
dApps 9
Current Status 10
Titania 10
Titania Boxes 10
Security 11
Current Status: 11
Hydra 12
Benefits of Hydra 12
Current Status 13
The Full Decentralized Stack 13
The Hydra Token Sale 13
Why a Hydra Token Sale? 14
The Hydra Token 14
Sale Structure 14
HTS Distribution 15
Funds Distribution 15
The Team 16
Our Approach 16
Part 1: Vision
Welcome to Libertaria, a project dedicated to building the tools to allow people to create fully
decentralized communities and economies of their own making and choosing.

These are communities in which people can communicate, share ideas, collaborate,
transact, define and enforce agreements, create goods and services, exchange money
basically do all the things they are used to doing today in their social and economic lives, but
directly between each other, without any central authorities involved.

There is a lot to be said for such decentralized communities. They give people more control
over their own lives, more privacy, more choice, as well as more responsibility. Decentralized
communities and person-to-person economies can also unlock huge value for individuals
and businesses, being generally more local, more efficient and, economically speaking,
more fair than the large, centralized constructs we are used to living under now.

They are, by their nature, more democratic too. We think decentralized communities can act
as a counterweight to the growing centralization and authoritarianism in much of our world,
tendencies we believe are of concern to a great many people today from all political
persuasions and socio-economic backgrounds.

Libertaria is explicitly an apolitical, non-partisan project. We are not here to tear anything
down, but to make use of the technologies available today to offer people simple and
inexpensive alternatives to the status quo.

In our vision of the decentralized future people will move effortlessly between various local
communities and mainstream structures as they see fit, enjoying the advantages of different
models and approaches. Crucial to our vision, however, is that it is the individual who makes
these choices.

We are not the only people who think this way. Driven by new technologies, chief among
them the blockchain, there is a broad-based decentralization movement gathering pace all
over the world. But while most of these projects address just one or two of the technologies
needed for a decentralized society, as far as we know Libertaria is the first to attempt to build
the whole stack and to do so in an open-source, free to use way.

In this paper we discuss the Libertaria vision in detail: why we are doing what we are doing,
how we are going about doing it, what kind of communities we can build, what technologies
we are developing to support those communities, how we see the new peer-to-peer
economics, how we intend to raise funds to make this vision a reality, what we intend to do
with those funds and perhaps most importantly how Libertaria can benefit those who use
it: from normal people to businesses to those interested in investing their time and resources
into helping this vision become a reality.
The Dangers of Centralization

Look back at the history of societies, economies or technologies and you will find an ebb and
flow between decentralized and centralized structures.

Societies transition from small, independent tribal groups to democracies, republics and
oligarchies to large, autocratic kingdoms and empires, and often back again. Economies run
from laissez faire to business friendly to highly regulated to fully controlled.

When it comes to human technologies which, because they enhance our capabilities, have
to do with human power as well we can see a similar dynamic between centralization and
decentralization. One need only look at the Internet, which began as a free, open means for
individuals to share information and knowledge and has become an increasingly centralized
and commercialized tool that can as easily be used for oppression, obfuscation and control.

While we are not a political movement, we do believe along with many others that the
technological pendulum has swung too far towards centralization. So too have the
pendulums of power and wealth. A small number of large corporations act as gatekeepers to
our online worlds and with it to large swathes of the digital economy, which soon will be the
only economy we have. The fruits of this digital economy are reaped by fewer and fewer
people, adding to increased inequality.

While centralization has certain advantages, for example in terms of efficiency or lower
costs, over the long term such concentrations cannot be in the public interest.

Vision of Decentralization

We believe people should have an alternative.

Our vision is of a decentralized society based on large numbers of federated, self-governing


communities of individuals who share the same principles and core values.

As long as there is agreement, communities or chapters are free to develop and follow their
own charters, allowing them to adopt any political or economic approach to self-governance.
They can for instance create their own economies with their own monetary policies, issue
their own currencies, or abolish money altogether in favor of tokenized economies based on
values or reputation.

There are many ways to approach the problem of building the tools to support such
structures. Here at Libertaria we like to think in terms of economic and social interactions in a
network. To be decentral, they need to have certain pillars in place:
Communication: We must be able to reliably, securely and, if desired, privately
communicate with each other, share our ideas and have a platform to decide whether
we want to cooperate with each other economically.
Law: We need a platform to discuss the terms and define the terms of our
cooperation.
Production: We then produce what we agreed to cooperate on, in the way we
agreed to do it.
Economy: Finally, we trade and share the goods and the services we have
produced, rewarding and supporting everyone who contributed.

At Libertaria, we are building the tools to be able to address all those pillars in a
decentralized way.

We are building safe and secure peer-to-peer communications. We are working on


decentralized legal structures that add to the idea of smart contracts with new, sophisticated
means of adjudication and enforcement that give people a wide variety of choice and
transparency.

We are considering new ways to approach the materials and processes needed to
manufacture goods to allow people to more easily produce their own products locally. And
we are building a new kind of financial system that will allow people to trade freely without
intermediaries, and keep the lion's share of the profits for themselves. And we are working
on certain key ingredients, like trustless identity and reputation as well as decentralized
governance structures, that will serve as the glue to pull this all together.

As you can read in more detail below, the decentralized solution for each of these pillars is
associated with one or more technologies. Together, they comprise what we call the full
decentralized stack.

If it seems like an ambitious goal that's because it is! Yet it is more than just an aspiration.
We have already completed several of the key technologies needed to make this a reality.
And once we have raised funds with our planned token sale, we have a very clear roadmap
for how to use these funds to finish what we have started.

With these tools in place, people will be able to easily create secure communities with their
own economies and laws, and trade and interact with each other on their own terms. As the
tools we are building will be open source and free to use, they will be available to all.

We think these communities offer very interesting opportunities for all who take part in them.
They will unlock a great deal of value, and spread this value more equitably among
participants.

While some aspects of a person-to-person economy might take some getting used to, like
direct transactions or dispute resolution through smart contracts or community voting, for
those who live in these decentralized communities, much will be the same. Lifestyles will
not be radically transformed. The infrastructure of society, however, will. In our vision,
technology will help people be more free, will better protect their privacy and autonomy, and
will give them a much better chance to share in the value created in their economies than
they have now.

Part 2: Technology

Libertarias Technology of Decentralization

Overview
Libertaria is building the tools to make a real decentralized peer-to-peer (P2P) economy
possible. We intend to build the full decentralized stack, with no unwanted interference, in a
way thats accessible to everyone, including users with minimal technical expertise and
people with limited resources and technological infrastructure.

This is obviously extremely ambitious, and readers will be forgiven for being skeptical. The
world is full of technological projects with lofty goals but limited practical utility. But Libertaria
is being designed for todays world and people, with technology that will provide immediate
benefits in addition to laying the foundations for long-term change.

To that end, the Libertaria network is being designed with the following principles in mind.
The network must be:

Free Anyone should be able to join or leave the network, as they choose.

Fair As far as possible, users must not be constrained by a lack of resources.

Functional The network needs to be simple to join and use and provide tangible
benefits to real people.

In short, anyone should be able to use the network, no-one should be able to stop someone
else from using the network (either through force or economic advantage) and the network
should be something people actually want to use.

We have already completed several of the key technologies needed to make this a reality.
And by keeping the scale manageable by focusing on serving smaller, like-minded
communities congregating around specific use cases, we have the scope to experiment and
expand cautiously and purposefully, to ensure our systems work the way theyre supposed
to and actually bring meaningful improvements to users lives.

The Libertaria network is a stack of three main technologies: Mercury, Titania and Hydra.
These are being developed simultaneously as three separate but coordinated sub-projects
within Libertaria. Each project is led by the member of our core team with the deepest
understanding of the relevant technology.
The Mercury framework connects the nodes in the Libertaria network, allowing for true
person-to-person communication and services via decentralized apps (dApps). Users can
create multiple independent profiles which allows them to match with other users or dApps
via the Mercury profile server. Users retain complete control over who to share their data
with and can revoke these permissions at any time, providing the perfect balance of utility
and privacy.

The Titania operating system is optimized to run a Mercury node, which means nodes can
run on older or low-powered hardware, including smartphones. A Titania Box is a unique
instance of a Libertaria node, with TitaniaOS pre-installed on a Raspberry or Banana Pi so
even non-technical users can set up their own node within minutes.

Finally, the Hydra blockchain protocol runs on top of Mercury and supports Libertarias
federated blockchain network. The main chain supports a wide variety of child chains, each
linked to the main chain but separate from each other. Communities who have connected
and formed using Mercury can easily create their own blockchain with its own token and
consensus protocol, drawing security from the nodes in the wider Libertaria network while
keeping most transactions within the community.
Mercury

Overview

Mercury is the name for the set of protocols


that will provide the foundation for the
federated Libertaria network. It allows secure
communication and supports decentralized
applications (dApps).

Unlike partially centralized platforms like


Ethereum, Mercury provides a P2P
communication and sharing enabled network
with a service layer that allows any application
to run in a free and decentralized way. Nodes
can offer incentivized services to users.

In short, Mercury will invert the model of a


centralized platform that allows corporations
and authorities to stay in control of the businesses that run on top. Instead, users retain full
control of their data and allow service providers to connect to them based on publicly shared
profiles.

Structure
The Libertaria network is formed from different types of nodes. Thanks to Libertarias
TitaniaOS, almost any device can function as a standard user node. However, the system
will also incentivize users to operate more powerful nodes, providing features such as
decentralized storage or decentralized indexing to power decentralized search engines.
The Libertaria network will be:
open, so anyone can add or shut down a node they own
reliable, so it tolerates node failures or network problems
trustless, so the system is self-validating
robust, so it is prepared for malicious nodes
permissionless, so anyone can join or leave

With the network established, Mercury allows users to connect and interact with each other,
as well as use services provided by dApps. This functionality is achieved through three
operating layers:

The Connect Layer. Users can find each other and establish a direct connection
based on the profiles they share. They can also connect to decentralized networks,
for example a file storage network (IPFS, storj), profile servers, location-based
network, proximity network and/or any blockchain.

The Service Layer. An abstract, agnostic, extendable and plug&play-enabled layer


implements the communications protocols between services.

The App Layer. Developers can create dApps for users without needing to know the
intricacies of the deeper layers.
dApps
It is essential for the user and development experience to be as smooth and simple as
possible. So although the underlying Mercury infrastructure is completely innovative, the aim
is that regular users will see very little difference in how they interact with their devices.
dApps are not like the distributed Apps from Ethereum and other locked platforms in our
terminology dApps are true decentralized or p2p applications. They will be available on a
Mercury dApp Store, and will happily coexist with regular apps on user devices. Developers
will need a basic understanding of the difference between Mercury and a standard
centralized setup, but they will not need a deep understanding of the protocols to build their
apps.

One of Mercurys biggest innovations is the interconnectability of applications. Since all


dApps connected to the Libertaria network use the same profile layer, they share the same
user base.

Practically speaking, this means users are not bound to one specific application to connect
to their peers; they can use any Mercury dApp to connect to any other Mercury dApp.

Example: Benjamin uses Mercury Messenger A. Christian uses Mercury Messenger B.


Despite using different applications, they can still send each other messages because they
are connected by the agnostic Libertaria network.

Current Status
Mercury currently has a complete functional implementation with prototypes of dApps. We
are planning to add implementations of the different components in other programming
languages and will incorporate changes to the protocols based on real-life usage. We are
currently improving the documentation of the APIs to attract more community developers.
Titania
A P2P protocol such as Mercury is only useful if there are sufficient peers to operate the
network. However, most people lack the expertise or resources to join such a network.
Titania is designed to address this problem and form the backbone of the decentralized
Libertaria ecosystem.

Titania is a customized embedded Linux operating system designed to be installed on


various devices, including smartphones, old devices and IoT appliances. TitaniaOS is
optimized to run the Mercury protocol, and makes it easy for anyone to have their own
network node at home without running a PC all day or running through a technically
demanding initial configuration, although naturally power users will be able to fully customize
their devices.
With Titania, nodes will be securely deployed to our P2P Libertaria network in a very easy,
convenient way. The user has full control over their own node and can connect to it via their
smartphones.

With downloadable apps, Titania can also double as a wireless router, home TV or a smart
home hub, so users can turn the equipment they already have to a hybrid use. Embedded
versions of Titania are lightweight and portable enough to run on old or broken mobile
phones, providing second life to aging electronics and reducing waste.

Titania Boxes
Titania Boxes are a specific implementation of the Titania OS on Raspberry Pi and Banana
Pi devices aimed at people who have minimal technical expertise, limited resources or are in
parts of the world with limited infrastructure. The Titania Boxes are designed to be as close
to turnkey as possible, with a minimal, intuitive setup allowing users to customize their node
for their requirements by answering a few simple questions.

Titania Boxes running TitaniaOS remove all the complexities of setting up the network node
software, with all functionality available from a simple-to-use UI that anyone can operate.
Security
Titania will inevitably attract hacker attention. Thus, security is paramount. However, as
Mercury is truly decentralized, we cannot and should not impose control over who joins and
what dApps are built and available.

In the worst case, we must ensure that a security breach does not allow intruders to gain
access to the wider network. The standard solution would be to run each app in a virtualized
environment. However, this requires powerful server hardware, and Titania is designed to
run on low-end devices. We solve this problem by using containerization technology with
Docker/LXC, which runs every app in an isolated environment. Using Docker also allows the
building blocks of the containers to be reused, which translates to enormous savings in disk
space, memory, and development time.

We also provide an app SDK based on Rust to prevent breaches based in human error. All
of the components of the SDK as well as the base system itself are built with source
fortifications so attackers will find it much harder to exploit the library code level of the app to
their advantage.

Such an intricate setup introduces a certain maintenance complexity. To keep the operation
hassle-free for the user, Titania sports a dual-root filesystem that can revert to a stable
version in case of a partial or failed update. In line with the distributed ecosystem it provides,
Titania can collect its updates from peer-to-peer file systems such as IPFS. This is also
where the apps are published to and downloaded from. Not unlike BitTorrent, Titania nodes
participate in dissemination of updates, which eliminates a central point of failure and
improves overall update bandwidth without requiring a full-blown CDN. Each update is
cryptographically signed to ensure the nodes can trust the software they are installing.

Current Status:
The first prototypes of TitaniaOS are running on ARM-based hardware, running Docker
containers for Mercury components and some popular blockchains. We are currently working
on an easy-to-use monitoring system that will help power users support less experienced
users. We hope to extend our official support to other selected devices in the future,
preferably with fully open-source CPUs, network chipsets and printed circuit boards.
Hydra

Hydra is a next-generation Merkle-DAG and multichain protocol which supports the


decentralized P2P economy built using Mercury and Titania. To be precise, it is a directed
acyclic graph of Merkle trees (graph of hashes) and a multichain protocol to interact with it. It
will be the blockchain backbone providing interoperability between side- and child chains
implementing the Hydra protocols, including:

Atomic swaps between child chains where possible


Storing the edges for the Open Social Graph on chain
Security for the side chains
Side chain templates for P2P apps to create their own blockchain/token

Hydra consists of a parent chain and many customizable child chains. Communities will be
able to easily set up their economies on their own blockchain with its own consensus
protocol and token, if desired and in a few mouse clicks. The parent chain secures all the
child chains, combining the power of all nodes involved in any of these chains. The parent
chain can also be used to exchange value between different child chains in atomic swaps,
but because these child chains represent local economies, most transactions stay on the
individual chains.

All child chains are technically independent, but by being added to the parent chain, the
users of the child chain gain access to the complete Libertaria network and its entire user
base. We also provide templates of child chains for different purposes. These templates can
be easily parameterized to fine-tune the chain for the needs of its community.

Thus the entire network has the security and power of a global blockchain, but the child
chains retain the efficiency and privacy of being self-contained networks.

Benefits of Hydra

Hydra is being designed to overcome many of the problems faced by first-generation


blockchain protocols like Bitcoin and Ethereum.
By having separate child chains supported by a single main chain, the system can scale in a
meaningful and useful fashion, both in terms of transactions per second and amount of data
stored and transferred.

Most importantly, having isolated child chains allows a lot of experimentation which would be
too risky on more centralized systems like Ethereum or Bitcoin. New approaches to
economics, governance, consensus, smart contracts and so forth can be trialed and
operated on separated child chains, allowing multiple approaches to coexist and compete
without risk to the overall system. Communities which set up their own blockchain will be
able to pick and choose which of these functionalities they require, and communities with
more modest requirements will not be penalized for how others use the system. Compare
this to Ethereum, where the surge of ICOs and other bespoke tokens has made it very
difficult and costly for regular users to run smart contracts or any of the other services
Ethereum was originally designed for.

Hydra is being entirely written in Rust, which provides numerous security and performance
benefits, including the ability to multi-thread and prevention of buffer overflow issues.

Current Status

Our team has gained insights and experience from its involvement in many blockchain
projects, having contributed to the development of Bitcoin (BTC), Ethereum (ETH), Internet
of People (IOP), PivX, Monero and BlockStack. We are currently finalizing the design of the
Hydra network of blockchains, but there are already proof-of-concept implementations of
some algorithms needed by the Hydra network, and we hope to show a prototype of the
system in spring 2018.
Delivering the Full Decentralized Stack

With Libertarias full decentralized stack it will be possible for both individuals and
communities or companies to take part in a connected economy without losing their
independence. It will be possible to create a whole economy with the full decentralized stack.
Users can have the individual levels of security, privacy and anonymity they want.

The decentralized and singular approach to blockchain implementations for the first and
second generation is sometimes at odds with the real business need to protect information
and control business processes. The full decentralized stack on top of Hydra and Mercury
solves this problem and paves the way for a new way of running organisations, running
apps, connecting through messengers, and running an economy and society in general.

For example, it might be interesting for credit card companies to set up their own private
side-chain and connect their service to a network which is simultaneously secure, fast,
scales, and which can also facilitate privacy. All at speeds that outperform any credit card
processor today. Also other businesses working with highly sensitive data (for example,
insurance companies) can easily connect to a reliable network without losing their
independence or control over their data.
Part 3: The Hydra Token Sale (HTS)
When needed, Libertaria intends to hold a token sale where interested parties can purchase
Hydra tokens (HTs). These tokens are a unit of accountancy, both technically and under the
accepted legal definition. Once the Hydra multichain network launches in 2018, these Hydra
tokens will be converted into Hydra tokens (HYD) on the Hydra mainchain.

Why a Hydra Token Sale and not a classical ICO?


The Libertaria project has been running successfully in stealth mode for over 9 months.
Hundreds of thousands of dollars of investment have already gone into acquiring technology
and funding a team of full- and part-time developers from around the world who are all
committed to decentralization. Tens of thousands of man hours have gone into writing,
collating, and optimizing the hundreds of thousands of lines of code that currently
support Libertarias technologies. We expect all these numbers to increase by at least an
order of magnitude before the project finishes, therefore at some point we will need to
raise more funding.

Unlike many other projects in the crypto space, we will always hold any token sales at the
end of our development stages, not the beginning. We want people to support Libertaria
based on delivered technology, not just promises. Now, with several key Libertaria
technologies already completed and interest in decentralization higher than ever before, the
time is right to hold a token sale to expand the project into Phase 2 and allow other people to
get involved.
We want the Libertaria project to enjoy long-term success, which requires a widely
distributed network of engaged and active users. Therefore, the structure of the token sale
will be designed to encourage breadth of distribution rather than to make as much money as
possible.

Not all Hydras need to be sold. Any unsold tokens will be kept for future re-distribution via
airdrops and further funding rounds as needed and on demand.

The Hydra Token

The Hydra tokens (HTs) for the token sale are an ERC20-compliant token created on the
Ethereum platform. 33,550,336 HTs will be created in total. Each HT will be exchangeable
into a single Hydra (HYD) token once the Hydra mainchain launches in 2018.

HTS Distribution

The Hydra tokens for the sale will be distributed in the following way:

10% Libertaria Ventures Developer Company


5% Decentralized Society Foundation
5% Airdrop for Community Exchanger Sale
20% Early Advisor Sale (tokens time-locked for 1 year)
60% Public Sale

All unsold HTs will be given back to the project and to the Decentralized Society Foundation
for future funding rounds.
Funds Distribution
Funds raised from the sale of HTs will be distributed in the following way:

Libertaria Development (70%)


Libertaria currently employs dozens of full and part-time developers and other staff, and as
the project grows this number will only increase. Starting in 2018, we will be launching the
Themis and Fides projects to bring reputation, identity and governance systems to the
Libertaria network. Each of these is a major undertaking which will require significant
resources.

Decentralized Society Foundation (20%)


The Decentralized Society is a foundation dedicated to researching and promoting
decentralization in all its forms. While the aims of the Decentralized Society obviously
overlap strongly with those of Libertaria, the Decentralized Society has an even broader
remit. Projects which dont fit neatly under the Libertaria banner will be able to apply to the
Foundation for grants and other funding.

Community Development / Marketing (5%)


Libertaria will only succeed if there is a strong, committed community to support it. While our
commitment to decentralization means many aspects of this can (and indeed should) be left
up to the community itself, it is still important that the community has access to the
necessary resources.

Infrastructure Costs (5%)


Libertaria is a massive project, and both its end product and development processes are
spread across the globe. Therefore, a certain amount of funding needs to be set aside to
cover essential infrastructure costs.

A paper explaining the full structure, timescale and terms and conditions of the Hydra Token
Sale will be published soon.
Part 4: The Team

Our Approach
At Libertaria, we believe that technology can be of limited use or even dangerous without a
strong vision behind it. But a common criticism of modern visionary technology firms is that
they build products and services for a world distorted through the lens of Silicon Valley
technology for a world that wealthy tech companies imagine, rather than the one we actually
live in. The Libertaria project is an antidote to this.

The Libertaria team is a diverse range of experts from more than twenty countries across
five continents. We have experts from the developed and the developing world, from
countries where decentralization is a luxury and those where its an urgent necessity.

And such a diverse team naturally brings a diverse range of talent and experience. Our
teams boasts experts from the world of blockchain, telecommunications, investment
banking, Big Data and many other cutting-edge technologies. In addition to developers, we
have experts in writing, philosophy, communication, economics, and many other fields
needed to ensure our technology helps meet the needs of real people.

Some brief information about the Libertaria core team can be found below.

Markus Maiwald
Libertaria Founder
Visionary, project owner, successful serial entrepreneur and
investor.

Attila Vgvlgyi
Technical Coordinator
Attila is a systems architect and lecturer at ELTE University,
Budapest.

Dniel Rka
Hydra Project Lead
Daniel is a mathematician and systems architect.
Matias Furszyfer
Mercury Project Lead
Matias has experience in a variety of crypto projects from pivx
to blockstack, specializing in mobile blockchain development
and networking.

Oleksiy Protas
Titania Project Lead
Oleksiy is a biologist and software engineer with experience
hacking all kinds of Linux internals.

Istvn Zlyomi
Senior Backend and Network Developer
Istvan has a PhD in computer science and worked on R&D
software prototypes for a decade.

Amon Engemann
Hydra Prototyping and Development
Amon is a physicist and core blockchain developer for Internet
of People (IoP).

Pooja Maheshwari
Titania Developer
Pooja is a full stack developer from Bangalore, India with
experience in Big-data and monitoring systems.

Sarah Klostermair
Social Media, Marketing and Community Building
Contact Sarah with any questions regarding Libertaria.

Rich McDowell
Communication and Marketing
A Cambridge-educated philosopher, Rich is curator of all
Libertaria papers.