1. Introduction

Since the birth of Bitcoin, blockchain technology and crypto assets have undergone more than a decade of development. From initially solving the problems of centralization, high transaction fees, and slow transactions in traditional financial systems, to today’s extensive exploration of smart contracts, decentralized applications (DApps), and the Web3 ecosystem, the global crypto industry continues to evolve. However, despite technological innovations in public chains such as Ethereum, Solana, and Polygon, the truly ‘grounded’ application scenarios are still limited, and the vast majority of crypto assets are still confined to exchanges and investment markets, with a considerable gap from becoming a ‘currency for everyone, for daily payments’.

This gap is precisely what the SMB (Social Master Branch) project aims to bridge. Rather than simply launching another “faster and cheaper” token, SMB seeks to establish a dual-token system that connects the real-world economy: the “Master Coin,” designed for value storage and cross-border transactions, and the “Branch Coin,” pegged 1:1 to national fiat currencies, supporting local payments and everyday spending.

Through innovative DPOR consensus mechanism (Delegated Proof of Reputation), hardware-level security design, high-frequency transaction processing capabilities, and a global DEX (decentralized exchange) network, SMB hopes to break down the barrier between ‘blockchain technology’ and ‘real life,’ allowing users to use crypto assets like swiping a bank card without worrying about the underlying technical logic.

SMB is about to land on the Gate.io trading platform, with trading set to start on March 17, 2025, 9:00 (UTC+8). The trading pair will be SMB/USDT. Stay tuned! For more crypto asset trading, click the link:https://www.gate.io/en/trade/BTC_USDT

2. Overview and Origin of the SMB Project

2.1 Background of the Project Birth

In 2008, the white paper of Bitcoin first proposed ‘peer-to-peer electronic payment without the need for third-party intervention,’ initiating the blockchain revolution. In 2015, the Ethereum mainnet was launched, introducing smart contracts, driving the early development of decentralized applications and the Web3 ecosystem. Subsequently, numerous public chain projects such as Ripple, Solana, Polygon, and Avalanche emerged successively, exploring faster, cheaper, and more secure blockchain services.

However, up to today, a commonly existing issue remains unsolved: most cryptocurrencies are difficult to become “usable currencies.” Reasons include drastic price fluctuations, limited transaction speeds, high fees, and a lack of seamless integration with real-world payment systems. They have gained widespread application in the financial investment field, but their usage in daily consumption and the real economy is extremely low.

The SMB project was born here, aiming directly at ‘practical application’, with the goal of creating a payment environment where ordinary users can use crypto assets ‘unconsciously’ through innovative ‘dual-currency model’ and high-performance blockchain.

2.2 The core mission of SMB

The mission of the SMB (Social Master Branch) project is to create a global encrypted payment system that allows users to use it as conveniently as using a regular bank card without the need to understand blockchain technology itself.

Its design concept includes:

• Eliminate the inconvenience caused by price fluctuations: Through the Master Coin + Branch Coin model, Branch Coin is pegged to fiat currency at a 1:1 ratio, maintaining a stable value.

• Globally Circulating: Users can exchange Master Coin for local Branch Coin at any time and use it for local consumption. After leaving the country, Branch Coin can be exchanged back for Master Coin.

• Seamless payment experience: Connected with traditional card organizations such as VISA and MasterCard, achieving real-time settlement of Crypto Assets globally through the ‘SMB platform Vander’ payment network.

2.3 Project Name Meaning and Structure Overview

SMB, short for ‘Social Master Branch,’ the name itself also reveals its dual coin system:

• Master Coin: As the global reserve currency, it reflects the value of the SMB system and can be traded on cryptocurrency exchanges.

• Branch Coin: Pegged to the local fiat currency at a 1:1 ratio, used for local payment circulation, and only circulated and exchanged within the SMB decentralized exchange (DEX).

At the same time, SMB is not only a technical project, but also a holistic project that plans to connect applications across multiple industries such as e-commerce, logistics, tourism, and financial payments. Its primary landing scenario has chosen the “global cross-border e-commerce payment + crypto asset settlement” system, combined with the Web3 concept, forming a sustainable blockchain payment network.

3. the problems faced by existing crypto assets and the solutions for SMB

3.1 Current Market Situation and Pain Points

Despite the exponential growth of the crypto assets market in the past decade, their application in daily life is still constrained by three core issues:

• Price fluctuations are severe

Mainstream crypto assets like Bitcoin and Ethereum have prices that fluctuate dramatically with market sentiment, making it difficult for them to serve as a stable payment tool. For example, a cup of coffee that costs $10 today may be equivalent to $12 or $8 tomorrow, a risk that consumers and merchants cannot bear.

• Insufficient transaction speed

Although blockchain decentralization brings transparency, it sacrifices processing efficiency. Taking Bitcoin as an example, its TPS (transactions per second) is only about 7, while Ethereum is only about 30. Once the number of users surges, problems such as network congestion, soaring transaction fees, and transfer delays will follow.

• Lack of application ecosystem and real interface

Cryptocurrency applications are mostly limited to decentralized finance (DeFi) and NFT fields, with very few opportunities for ordinary people to access. There is also a lack of interface with real-world payment systems (VISA, MasterCard, POS network), making it difficult to enter physical commerce.

3.2 SMB’s innovative solutions

For the above issues, the SMB project proposed a “three-step closed loop” solution:

1. Price Stability Mechanism

• Design Master Coin + Branch Coin dual currency system,

• Branch Coin is anchored to the local fiat currency at a 1:1 ratio, serving as a daily payment medium;

• Master Coin undertakes the functions of value reserve, cross-border circulation, and ecosystem incentives.

2. Ultimate trading performance

• Through the hardware-supported DPOR (Delegated Proof of Reputation) consensus algorithm,

• The current network has achieved single-node TPS of 20,000-30,000, with a future global network target of 1 million TPS,

• Supports true “instant arrival” in the real sense.

3. Connect the real application ecosystem

• Interface with traditional card organizations through the ‘SMB platform Vander’;

• Building a global DEX (decentralized exchange) to achieve cross-coin, cross-border exchange;

• Establish deep cooperation relationships with e-commerce platforms, logistics companies, tourism platforms, etc.

• Building a real-world usable encrypted payment network.

In summary, SMB is not just a “coin issuance project”, but a builder of a complete ecosystem that revolves around “coin-payment-scenario” to form a closed loop.

4. SMB Blockchain Core Technology

4.1 Core Technical Design Principles

The design concept of SMB blockchain can be summarized as the “three S’s”.

• Security

• Speed

• Scalability

Lack of sufficient security to carry financial assets; lack of sufficient speed to support real-time payments; lack of good scalability to support future large-scale applications.

4.2 DPOR Consensus Algorithm (Delegated Proof of Reputation)

SMB has abandoned the traditional POW (Proof of Work) and DPOS (Delegated Proof of Stake), adopting the innovative DPOR algorithm, whose core logic includes:

• Consensus participation conditions based on hardware performance and credibility,

• Nodes need to meet the requirements of high-performance hardware (network acceleration card, ultra-high-speed storage, dedicated security module),

• Nodes determine block generation rights based on staking equity + reputation score,

• Introducing the general node ‘Participate in Voting’ system (POPS mechanism), allowing small nodes to indirectly profit by ‘supporting large nodes’.

Technical Advantages:

• More decentralized than traditional DPOS,

• More efficient than POS,

• High cost of node cheating (requires staking funds + hardware investment),

• Theoretically, it can achieve millions of TPS, surpassing public chains such as Solana and Avalanche.

4.3 Hardware-level Security Architecture

SMB has designed a complete set of hardware security system to ensure the stability and anti-tampering ability of the network, including:

• TEE (Trusted Execution Environment): A trusted operating environment for smart contracts to prevent data leakage or tampering during execution.

• HSM (Hardware Security Module): dedicated encryption hardware to ensure the security of private keys, which cannot be cracked even if physically stolen.

• TPM (Trusted Platform Module): Provides node identity authentication, prevents ‘fake node’ attacks, and ensures that all participating nodes have genuine legal identities.

• Hardware-level Oracle: External data access through physical hardware encryption channels to avoid ‘data feed’ tampering.

This hardware-based system is one of the core competitive strengths that differentiates SMB from most pure software public chains.

4.4 High-speed Block Generation and Governance System

SMB blockchain adopts dynamic governance design:

• All system upgrades and parameter adjustments are decided by the node coin holders through voting;

• Voting requires verification through a KYC certified account to prevent ‘one person, multiple votes’;

• Major proposals require support from at least two-thirds of the nodes;

• All governance results are publicly transparent on the chain, and history is tamper-proof.

This mechanism aims to avoid the ‘hard fork’ problem that Bitcoin and Ethereum have encountered, ensuring the sustainability and stability of the ecosystem.

5. Master Coin and Branch Coin dual coin model

5.1 Why do we need the ‘Dual Currency Mode’?

Most cryptocurrency projects adopt a single-coin system, for example:

• Bitcoin (BTC): combines value storage and payment, but with violent fluctuations;

• Ethereum (ETH): Uses the same payment and smart contract gas fee, but the price is equally unstable;

• Stablecoins (such as USDT): Stable, but only relying on fiat reserves, lacking native blockchain rights;

SMB proposes a “Master Coin + Branch Coin” dual coin system, with the goal of:

• The main coin (Master Coin) is responsible for value reserves, cross-border circulation, node incentives, and governance functions;

• Branch Coin anchors various national fiats, undertakes local payment roles, and is not subject to price fluctuations;

This design takes into account both the ‘value attribute’ and the ‘payment attribute’, allowing it to store value like gold and be spent anytime like cash.

5.2 Master Coin Function Detailed Explanation

Example:

When users hold Master Coin, they can exchange it for Branch Coin of any country through SMB DEX, and realize payment and consumption locally; when leaving the country, they can exchange the remaining Branch Coin back to Master Coin for use at the next destination.

5.3 Branch Coin Functionality Detailed Explanation

Example:

New York user Andy travels to Tokyo and can exchange the Master Coin in his hand for Branch Coin (JP).

• The exchange rate is based on the USD/JPY exchange rate;

• Use Branch Coin (JP) to pay for dining, transportation, and accommodation locally in Japan;

• After the trip, the remaining Branch Coin (JP) can be exchanged back to Master Coin.

6. The Issuance Mechanism of SMB and Token Economy

6.1 Total Issuance and Distribution Mechanism

The mining mechanism of SMB introduces the concept of ‘half-life’.

• Every year, the block rewards decrease by a certain percentage;

• Ensure long-term controlled inflation of the system while incentivizing long-term participants.

6.2 Use and Distribution of Pre-mined Tokens

6.3 Mainnet Mining Reward Model

Block rewards are shared by hardware nodes, staking coin holders, and ecosystem participants together:

1. Node operators: Hardware contributions and block weight determine the reward ratio
2. Staking users (regular users): earn profits by participating in node staking.
3. Operation Fund: Maintaining network upgrades, ecosystem activities, technical development

Intelligent Dynamic Adjustment System

• If the network activity is too low, the block reward increases;

• When the network is congested, the fees are adjusted automatically;

• Ensure system dynamic balance.

6.4 Token Economy Closed Loop

• Achieve circulation through pre-mining, mainnet mining, DEX exchange, and dual-currency model:

• Pre-mining for establishing initial liquidity pool

• Mining is used to continuously incentivize nodes and coin holders

• Master Coin is exchanged for Branch Coin on DEX for payment

• After Branch Coin consumption, merchants exchange it back to Master Coin

• Master Coin flows back into the market, forming a complete ecological closed loop

7. SMB platform application scenarios and business models

7.1 Core Use Cases

SMB is not just a cryptocurrency, but also a comprehensive payment and circulation system for real-life businesses. The project team will focus on landing the following scenarios:

(1) Global Cross-border E-commerce Payment

• Status: When shopping cross-border, users need to face issues such as exchange rate differences, high fees, payment delays;

• SMB Solutions:

• Users hold Master Coin, enter the SMB platform DEX to exchange for the Branch Coin of the destination country;

• Pay directly on overseas e-commerce platforms without additional procedures;

• After returning to the country, the remaining branch coins will be exchanged back to Master Coin for continued use.

Actual example:

• South Korean users purchase products from Amazon in the United States

• Exchange SMB Master Coin for Branch Coin (USD)

• Settlement is directly completed through the payment API connected to the Vander platform

• Eliminate cumbersome forex fees and multiple intermediaries

(2) Travel payment and local consumption

• Traditional travel payments: rely on credit cards, involve currency conversion fees, settlement delays;

• SMB mode:

• In advance, exchange Branch Coin (local currency), equivalent to a digital travel wallet;

• When consuming locally, pay directly like swiping a bank card;

• Zero exchange rate loss, no fees, real-time settlement.

(3) Logistics and Supply Chain Finance

SMB has established partnerships with multinational logistics companies, with application scenarios including:

• International logistics order settlement;

• B2B Purchase Payment;

• Distributed supply chain finance, supporting order financing and credit payments.

In this scenario, Branch Coin serves as an internal settlement medium within the supply chain,

As a cross-border value transfer tool, Master Coin,

Combine smart contracts to automatically trigger payments, improving liquidity and transparency.

(4) Local community and O2O (online-to-offline) payments

Branch Coin can also serve as a community currency within a local scope:

• Online stores and offline stores can both be used;

• Suitable for diverse scenarios such as member points, reward distribution, and consumer rebates;

• Enhance stickiness between merchants and consumers.

7.2 Overview of Business Model

SMB is not a single profit project, but a distributed business network.

Each participant - whether a user, merchant, or node operator - can receive incentives.

8. Development Roadmap and Future Prospects for SMB

8.1 Project Development Stage

(1) Initial Stage (2023-2024)

• Complete the development of the SMB mainnet

• Release white paper (V1.0 to 1.5 versions)

• Launch pre-mining and early community building

• Launch SMB decentralized exchange (DEX) test version

• Reached cooperation intention with the first batch of cross-border e-commerce platforms

（2）Mid-term Stage (2025-2027)

• Mainnet upgrade, supporting million-level TPS processing capability

• The Vander payment interface is officially launched, starting to connect with VISA, MasterCard

• The ecological DApp store is online, supporting third-party developers to access

• Expand logistics and tourism payment application scenarios

• Deploy Branch Coin in major economic zones in Asia, North America, and Europe

(3) Long-term stage (2028-2033)

• Forming an ecosystem of ‘global payments + cross-chain asset management + DeFi financial platform’

• Become one of the foundational infrastructures of the Web3 payment industry

• Develop B2B enterprise settlement system and establish alliances with major global fintech companies

• Support for digital identity (DID) and on-chain credit system

• Planning to launch physical products of SMB hardware wallet and payment card

8.2 Technology Evolution Plan

8.3 Market Strategy

SMB’s goal is not just to be a cryptocurrency project, but to become a “global decentralized payment underlying protocol” serving individuals, businesses, and institutions.

8.4 Long-term Perspective

• By 2030, become one of the top ten global public chains in the payment category

• Branch Coin covers at least 50 countries globally

• Support for annual average cross-border trading volume exceeding 10 billion US dollars

• Building a decentralized on-chain credit rating system

• Become one of the global payment standards for Web3

Conclusion

SMB is not a traditional “coin issuance project” in the traditional sense. It is a three-in-one comprehensive solution of “real financial infrastructure + blockchain underlying protocol + cross-border payment system”. SMB has: forward-looking technical architecture, perfect payment closed-loop design, strong real-world orientation, multiple application scenarios already in place, clear global strategy and compliance route. At the same time, the challenges it faces should not be underestimated, requiring strong operational capabilities, partner resources, and the ability to flexibly adjust strategies. If the SMB team can continue to advance the ecological implementation, it is likely to become the world’s first truly usable “Crypto Assets Payment Standard”.