PRELUDE

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Join the network

What is PRELUDE? PRELUDE is a secure, decentralized network that can be used by all institutions entering thefast growing digital custody business.

WHO CAN BECOME A NODE?

Nodes of the Prelude network are financial institutions localized worldwide. In order to join the network, an institution needs two things: Meet the network criteria and Stake PLD tokens

Prelude’s Rating Criteria
  • As a decentralized system servicing its users, Prelude implements a defined set a rules to determine who can join the network as a node.
  • Tokens’ holders vote quarterly on different factors which impact the grade of each node. Factor are proposed by Prelude Technologies and voted by the public. Factors can include the size of the firm, the years in business, the localisation, the credit rating etc..
  • At any given time, a node’s rating can be computed as : Sum(weight_i x factor_i)
  • Each quarter, all token holders have the opportunity to grade each factor depending on how important they think they are on determining who can be anode of the network. The results of the vote fixes the weights for the next quarter according to the following: Weight_i = Sum( Token_held_n x Vote_i,n) /Sum (Token_held_n)

    Only institutions with a rating above 0.5 are able to act as node for the next quarter. Votes may be normalised to ensure at least 30 nodes in the network.
PLD Token Staking
  • In order to receive transactions to process, nodes need to stake some PLD Token.
  • The more token staked the more transactions a node receives. Every time a user incept a transaction request, a subset of available nodes (nodes which hold shards of the key of the client) receives an opportunity to sign the transaction. Each node has a fixed amount of time to sign the transaction. If a node fails to sign a transaction within the available timeframe the opportunity to sign the transaction is given to another available node.
  • In any case a node cannot participate to the network if it does not stake a minimum of $1m worth of tokens at the beginning of each quarter.

PRIME NODES

Nodes of the Prelude network service the users in two ways: Validating Transaction and Storing & Validating Identity

Nodes that only validates transactions are regular nodes and nodes that actually hold and validate user identity information are Prime Nodes.

Storing & Validating Identity
  • When a user creates a Prelude account with the network, it chooses a set of Prime Nodes to which he sends his identity information off the chain at the account’s creation. Having Prime Nodes allows users to control who they trust with storing their identity and resetting their Prelude Private Key in case of lost.
  • Each node defines its condition for servicing clients as their prime nodes. Conditions include fees, minimum account size and KYC/AML restrictions.
  • The nodes selected to validate the transaction are elected using a random process where the probability to be selected is a sigmoid function of the number of tokens staked.

WHY BECOME A NODE?

  • When a new institution joins the networks, it can start servicing digital assets with a very short time to market.

  • Joining Prelude allows service providers to offer new services to their current clients (who will chose them as Prime Nodes) and to attract new clients who use Prelude to secure their digital holdings.

  • Firms keep full control of their processes and fee schedule and can use their current systems and databases using a simple API to interact with the network.

  • At the beginning of each quarters, each firm defines its fee schedule. Nodes get rewarded for each service they provide to the network:

게시판 리스트
User Fee Payment To Frequency Amount
Account Opening Fee Prime Nodes One-time fee Fixed quarterly by each node
Custody Fee Prime Nodes Quarterly Fixed quarterly by each node
Identity Validation Prime Nodes On large transactions Fixed quarterly by each node
Key Recovery Prime Nodes If key is lost Fixed quarterly by each node
Transaction Validation All nodes For each Transaction signed Voted by PLD holders