SFT Chain

The world's first general purpose Decentralized Physical Infrastructure Network (DePIN)

The SFT Protocol is a core protocol of the SFT Chain network.

This protocol is a cross-chain communication and modular underlying EVM protocol specifically designed to address assets locked in the medium and long term, such as FIL, DOT, ETH2.0, etc., that cannot be liquidated. The SFT protocol provides a decentralized solution that enables locked assets to freely circulate. Users stake native public chain tokens, then mint SFT tokens to address liquidity issues. Users holding SFT can perform various operations in the SFT protocol, including SFT transactions, staking mining/liquidity mining, DeFi lending, DAO governance, NFT minting, public chain node application deployment, hardware infrastructure invocation, etc.

The SFT protocol supports staking and redemption of native tokens, ultimately achieving immediate withdrawal. All operations are deployed and executed in a decentralized manner by smart contracts and verification nodes. Additionally, the SFT protocol securitizes underlying hardware device assets, mapping them to upper-layer protocol revenue, thus achieving a form of "cross-chain" between blockchain and real-world economic activities, providing investors with diversified investment channels

1. Chain of Chains

We designed to match a distributed network of hardware with the increasing demand using this hardware to create a “Chain of Chains” which serves as a marketplace to transact with coins from any of the chains the hardware is deployed on. We use an innovative auction system to ensure the network can grow continuously and organically, able to integrate more types and variety of hardware as it develops and able to withstand bear markets by delivering consistent revenues to the system. Initially it will provide liquid staking derivatives and revenue generation for both stakeholders and the DAO. The next step is to integrate more hardware and chains, providing on-chain services such as storage and RPC. Initially the hardware will be hosted in trusted datacenters, but, over time, we will develop more partners and become increasingly decentralized. The eventual goal is to integrate other off-chain services such as AI Compute, to complete the transformation from a “Chain of Chains'' to a “Global Investment and Infrastructure Chain” becoming a full value capture platform. Every step is done in a way to ensure long term sustainability though market cycles by using revenue to continuously lock liquidity purchased from users by the protocol.

2. DePIN

the SFT Chain and the DePIN network it builds aim to break the tradition of Web2-based businesses and facilitate organizational and community developers in building innovative applications based on Web3, achieving the following objectives:

Device owners tokenize their devices.

SFT Chain binds users to their devices, relying on a decentralized blockchain network to reach consensus on events in the physical world and trigger the distribution of token rewards to users in Web3.

Diversity of SFT Chain devices.

Through device SDKs, SFT Chain will support a variety of devices, including but not limited to existing market devices, community-driven devices (Raspberry Pi, Arduino, ESP32, etc.), mobile devices, and emerging Web3-oriented IoT devices.

Blockchain-based ownership management.

SFT Chain uses blockchain to manage device and owner identities to enhance the security of device ownership and promote the use and distribution of tokens.

Off-chain SFT Chain data processing and storage.

Considering the quantity of devices and data, SFT Chain processes and stores SFT Chain data in a decentralized blockchain network and submits the minimum required information to the blockchain.

Flexible programming mode.

SFT Chain allows developers to customize the behavior of Oracle networks and implement business logic using various programming languages.

Decentralized token economics and value accumulation models.

SFT Chain will utilize governance token SPD to register smart devices in the on-chain device registry through payment, staking, or burning of SPD. SFT Chain node operators can define their own value accumulation models and acceptable payment forms, including SPD and other cryptocurrencies, to support DApps on their nodes for business operations.

3. An Open Integration Framework: Our Vision & Values

The DAO is, at its core, a framework for integrating any type of hardware or data service in a sustainable way. By creating an open flexible model for integration, the project will be able to meet rapidly growing and changing demands in the DePIN hardware marketplace by not being fixed to any specific form or type of hardware like other projects. The DAO is a first step to establish a firm foundation of liquidity and infrastructure from which to launch a full application chain that can integrate and validate hardware activity directly. During the DAO phase, we will bootstrap hardware in datacenters and build liquidity for both integrated chains and the DAO itself. Members can present market research and vote on the most appropriate use of Treasury funds. The auction system can be applied to any type of integration and ensures a large amount of liquidity is always available. Liquidity lowers transactional friction, naturally drawing users and activity. We aim to be the largest and most liquid hardware marketplace in the space. This is the organizing vision for the project.