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!"#$#%&#'( %)*++,-*)./)00#'023456*)7[Whitepaper_ENG.ver]

ELAMACHAIN(hereinafter referred to as “the foundation”) is not responsible for any damage, loss and cost which may occur, related to below matters, even through the foundation has already recognized the possibilities of all ty-pes of damages, losses, costs and financial damages including direct, indirect, special and consequential damages:

Exemption ClausesA

(i) The Sale of ELA COIN(“token”) and the sale of tokens by the foundation(ii) Failures, errors, omissions, suspensions and delays of system, server or connection coming from network

issues, computer viruses, damages, malignant codes for destruction, agent programs or macros (iii) Images, services, products, information and all the data that the foundation provides

Unless above mentioned general conditions aren’t breached, you can’t make the foundation and executives, staffs or representatives of the foundation take any responsibility for their illegal activities including negligence or breach of the contract and regarding other capital and thereby caused any damage, loss and cost regardless of its definite causalityandpredictabilitysincethoseare relatedtobelowmatters:

(i) Purchase or use of token by you or the third party(ii) Use of Elamachainby you or the third party

Buyers, owners and users of tokens clearly recognize below risks when buying, owning, and using the tokens. Elamachain’s commercial viability may be significantly and negatively influenced and failure in token sales, destruction of tokens or development and operation of Elamachain may be terminated if the below mentioned risks or other risks not considered as significant at present realize. The foundation has no liability for such risks that tokens’ buyers, owners or users take when they buy, own or use the tokens. Details about each risk can be found in ELA COIN sales conditions.

1. The risk related to ELAMACHAIN’s management and development activities2. The risk coming from absence of authority for governance3. The risk of failure, abandonment or delay of ELAMACHAIN business4. The risk related to the ETH blockchain5. The risk of restraints6. The risk related to other applications7. The risk of losing private key8. The risk which arises out of hacking and security vulnerabilities9. The risk related to taxes

10. The risk related to the cryptocurrency’s fluctuation11. Technical risks

Other liabilities, risks and warranties are specified in ELA COIN sales conditions.D

C

B

빅데이터

SummaryELAMACHAIN BUSINESSOnline Mall for Reverse Trading based on Cross-Border AI Platform & Tour Guide App “The cross-border(International)” e-commerce is expected to be a linchpin to every transaction in the 21st century.

The cross-border e-commerce(online mall for cross-border reverse trading) service under the development of

cross-border AI platform and cross-border tour service(tour guide app) that ELAMACHAIN is planning to provide will make a

progress along with the cooperation of Chinese distributor with more than 10 million members, Chinese local shopping

mall with millions of members and the great China region’s travel agency which deals with millions of Chinese’

inbound. Thereby, thousands of international users and traffics will be secured as soon as those services are launched.

Sellout of Stake in ELA COIN

Ecosystem with Appreciation of ELA COINThousands of users on the basis of cross-border business Staking users of ELA COIN make the value higher

Above mentioned cross-border AI platform with built-in ELA COIN user-oriented module for exchange on a wallet basis provides staking of ELA COIN. Also, the amount of your staking shall increase since there will be additional benefits, which arise from the support, sponsorship, advertisement or such of platform’s connected partners, according to the ranking of staking of ELA COIN. Specifically, if thousands of users of cross-border platform do the staking, it will result in inflation of coin and sellout of the coin will take place for resolving such inflation. Finally, the value of the coin will become higher because of ELA COIN’s scarcity value.

ELA COIN's value increases

ELA COIN staking by Thousand of Users

Online Mall for Cross-Border Reverse Trading Tour Guide App

Cross-Border AI Platform

AI Chatbot

Cross-Border Services

Thousands of Users & Traffics

Big Data

THE TECHNOLOGY OF ELAMACHAIN: Mainnet Based Permissioned Blockchain + AI Big Data Analysis Securing blockchain transaction and big data analysis technologies, the two biggest issues in 4th industrial revolution.

The technology includes blockchain technology which commercialized “hyperledger fabric-based transaction system”, developed for the first time in the world by adding the company’s own coin layers(ELA COIN) to a permissioned blockchain(hyperledger fabric), AI chatbot with emotional intelligence technology developed by local corporation in Boston, U.S.A., and a system for big data analysis co-developed with a local partner. Especially, AI technology is highly expected to be “expanded while eternally being advanced” with structure continuously accumulating big data of high quality through above mentioned cross-border businesses.

Cross-Border AI Platform

Contents 1. Quotation

2. Prologue2.1.

2.2. 2.3.

3. Cross-Border AI Platform3.1. 3.2. 3.3. 3.4. 3.5. 3.6.

4.

4.1.

5. Team & Advisors

6. Partners

An Online Export Market (Cross-Border Reverse Trading) Market for Chinese Visiting Korea The Objectives of ELAMACHAIN

OverviewApplied Technologies User Scenario Business Flow Ecosystem of ELA COIN Distribution of ELA TOKEN

4.1.2.

4.1.3.

4.2.

Development of AI Technology for Big Data Analysis & Technology Road Map

4.1.1.

The Status of Technology Development and its Road MapThe Main Network of ELAMACHAIN (settlement system)AI System for Big Data Processing & Chatbot AlgorithmDevelopment of Big Data and AI Analysis System & The Establishment of Data Center Road Map View

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1 Quotation

Jack Ma's Prediction on Cross-Border E-CommerceJack Ma said, "About 100 million parcel posts was sent a year within China 20 years ago and now the number of parcel posts sent a year in China rose up to more than 30 billion. So average 100 million are sent a day." at the first global cross-border e-commerce conference held in Beijing, China, on February 9th, 2018. He also forecasted that “About a billion parcel posts will be sent a day within China 8 to 10 years later. And above 15% of it will be the parcels going to or coming from overseas. So, cross-border e-commerce will take the main part in the future trade.” He, then added, “The trading phenomenon will be completely different from the one existing now. If ‘container’ is the one that represented the trade in the past, ‘the quick delivery of small parcels’ will become important i n the future. The future trade will be comprised of global transactions, deliveries, payments and travels”

The Future of Alibaba, Alibaba Aims to be the World Class Corporation in AI IndustryAlibaba is not only the biggest company in the e-commerce industry, but also the company which invests the biggest amount of money in AI business. Alibaba will establish ‘DAMO academy’ in October, 2019, and invest 15 billion dollars(17trillion won) in AI-related R&D for 3 years. Already huge amount of money was invested in 7 labs working in the field of AI, machine learning, security, natural language processing and such. Furthermore, the promotion of AI industry by Chinese government is acting as a favorable factor. China is wishing to outrun U.S.A., thepowerfulnation in fieldof AI,bynurturing thedomestic AI industryup to the valueof 1trilliondollarsuntil 2030.

Jack Ma馬雲,M a Yun

5

A high rate of answering to customers in real time

Korean online shopping mall(Auction)

※Comparison table of customer-dealing attitude in case of the same product between Korean and Chinese shopping malls (the Korean cosmetic product Sulwhasoo)

A low rate of answering to customers in real time

Chinese online shopping mall(JD.COM)

2.1. An Online Export Market (Cross-Border Reverse Trading)Cross-Border reverse trading means overseas direct purchase of Korean goods by foreign consumers through their domestic e-commerce. The scale of Korean online export market(overseas reverse direct purchasing market) was amounted 2 trillion won in 2016, and grew up to 4 trillion won in 2018, 200% increase in 2 years. For online export of Korea, China is the biggest market, Japan is the second and U.S.A. is the third. From 2016, export using e-commerce as a method exceeded import and thereby the word ‘reverse overseas direct purchase’ received huge attention in the market. At the same time, the amount of such sales were reflected in official figures of foreign trade, considered as an industry to be nurtured by the nation, and started to gain more stature. This means that the government selected cross-border reverse trading as a solution for poor domestic consumption and stagnation. But, only 4% among 640 thousand shopping malls in the country are for export. Furthermore, most of them only actively operates online duty-free shop, which means it is almost impossible for small businesses to land. In conclusion, there is no platform which can represent Korea in the online export industry, an engine for future growth and activation of domestic consumption and economy.

Lack of customer service and follow-up management despite of Government-led support for online export

Korea International Trade Association(KITA) is running a website cal led Kmall24 to promote online export of domestic corporates. Kmall24 supports many Korean stores and their products on global tmall, a global version of tmall(run by Alibaba) which is the biggest B2C shopping mall in China. In other words, the government is funding Tmall's expensive entry fees (25 million won) and royalty (10 million won) that businesses are supposed to pay. But there seems to be a problem that the customer services are not provided at all according to Q&A and complaints written by Chinese customers. This

2 Prologue6

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is a very negative sign since real time communication between active seller and buyer, and customer service have significant influence on rate of sales and resales in e-commerce. The influence of none-existence of infra for customer service is especially huge since most of the worldwide e-commerce consumptions are led by people in their 70s-90s, the ageing populations, and they put a high value on satisfactory customer services. In other words, businesses clearly ignored the fact that the economic effectiveness can be earned not only by entering the market, but also by acting as an active seller and provide satisfactory customer services. Therefore, the new technology, which can make companies overcome language barriers and effectively provide customer services specialized for the concerned region on online regardless of the size of the company, is required.

(Source: Website.informer.com, Base date: June, 13)

The 11STREET of SK Planet has established its global version and to offer markets with Korean products to foreign users. The company is running a cross-border e-commerce websites by putting large amount of money and lots of manpower including establishment of its branches in China, Thailand, Turkey, Indonesia, Malaysia, etc. Even though the large amounts of resources put by the big size company, the number of daily visitors stood at about 5 thousand as of June 2019, showing low traffic compared to the number of people in China, Thailand and other countries.

Big size online shopping malls have been released their own global versions, but they lack measures to attract foreign users.

So, the effective way to increase users within China shall be: not by putting huge resources and manpower, but by region-oriented website and services. Also, association with many other platforms which already secured many users within China can be an another way. In addition, it will be very effective in securing more Chinese users if there is a new technology which provides higher security as well as easy log-in procedure while helping the region-oriented platforms sharing Chinese users each other.

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2. Prologue 7

Present Conditions by year (Unit: KRW)

5T 15M

10T 30M

15T 45M

20T 60M

Sales

(KRW

)Num

ber of people

0 0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(Source: 11,2018. Korea Duty Free Shops Associ ation) Sales to Foreigners Sales to Locals Number of Foreigners Number of Locals

2. Prologue

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2.2. Market for Chinese Visiting KoreaChinese tourists who visited Korea in 2018 was figured as 4.8million according to the announcement of Korea Tourism Organization, 2018. Such number of tourists have been increased 15% compared to that of 2017. But, despite large number of Chinese tourists coming to Korea every year, not so many suppliers exist to provide them services they need such as services related to food, shopping, information and transportation,directions, etc. Even if some do provide such services, those services are actually not so helpful. Especially, according to one contribution by Korean expert(contributed to Korea Foundation for International Culture Exchange in October, 2017 by Prof. Yoon Jihwan, hotel management department at Kyunghee University) in 2017, among the 739 apps related to tourism and which can be searched with the word ‘KoreaTour’, ‘KoreaTravel’, and ‘KoreaTrip’ in Google Playstore, only 42 of them provided services in English and 13 could be used by inserting Chinese. Also, according to ‘Reality in advancing organization and activation strategy of tourism infrastructure’, the number of apps developed or distributed by 39 local governments since 2013 were 57. In addition, average number of downloads were 7.7 a day until the end of 2016, less than 10, and 23% among all of apps was not even downloaded once a day, that is to say that they were not really being used.

For apps tailored to Chinese users, Organizing UI and UX by benchmarking various apps that Chinese users often use including WeChat and offering various routes to download apps, authorized for Chinese search, while considering distinct characteristics of Chinese communications network are necessary. For these, essential information including those about famous sites, restaurants and such shall be made into images and technologies, which enable businesses to answer the users in real time regarding the information about business hours, menu, traffic information, cost that are needed before they actually visit the site, shall be applied. In addition, by enabling online and offline payment by QR codes at the time of making reservations of payments may improve conveniences of Chinese tourists.

Necessity of integrated app to minimize inconveniences in using coupons of each duty free shop

The number of Chinese tourist groups(hereinafter referred to as youke) visiting Korea has been decreased compared to the past as a result of Chinese government’s policy restricting tours to Korea after the incident regarding THAAD. But still the sales of duty-free shop had been increased in 2018.

Necessity of installation method of apps which considered network environment of Chinese users' cell phones and apps for online reservations/payments on the basis of Chinese user-friendly interface

Lotte, Shilla and Shinsegae duty-free shops are the 3 major duty-free shops in Korea. But, if the users want to use the coupons of each duty-free shop, they need to install extra apps, which is very inconvenient.

2. Prologue

Republic of Korea's representative Corss-Border AI Platform1

The Enlargement of Cross-Border Platform Worldwide After Its Domestic Application

2

3

Unlike the policy restricting youkes’ tour, this may have negative influence on duty free shops’ sales. However, another money-saving coupons for food, shopping, accommodations and such are not easy to use as well. But, apps for Korean users, which let users use various coupons with a single app, are already very much activated. The problem is, there is no integrated single app for youkes and thereby led inconveniences are still not solved yet.

2.3. The Objectives of ELAMACHAIN

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Association with Other Domestic Services by Securing Traffic which Attracts Large Number of Chinese People

3.1. OverviewCross-border is a modifier indicating businesses working across the border. For example, in case of a cross-border e-commerce, the word represents both direct purchase and reverse direct purchase. In order to seal a cross-border deal, the communications between consumer of the A country and supplier of the B country shall be clear enough, and their agreement on sealing the deal is also required. ELAMACHAIN plans to develop cross-border AI platform which breaks down the borders with permissioned blockchain technology and AI chatbot technology, and provide cross-border e- commerce along with cross-border tourism services.Specifically, this service will be provided with the partners, the distributor which has more than 10 million members within China, local shopping malls in China with millions of members, a group travel agency in great China region which deals with millions of Chinese people’s inbounds, and thereby have realistic business feasibility. Also, the service is based on the structure that an inflow of actual users are guaranteed as soon as the platform service is launched.

Name of the platform Cross-Border AI Platform Supported OS IOS / ANDROID

Supported Devices iPhone, Galaxy, Huawei,Xiaomi, etc. Authentication of Customer By blockchain based on ELAMACHAIN

Development Languages C, Java, Javascript, Nodejs, PHP, etc. Nations that the Platform Will Be Released

First Release - China, KoreaSecond Release- Japan, KoreaThird Release – U.S.A., Korea

Estimated Release Date Around December, 2019*Details will be notified separately.

Main Functions

1

2

3

4

5

6

7

8

9

10

11

AI Chatbot(answers in real time-inquiries, recommendation of a product, Information and recommendation of tour)Shopping mall with exclusive page for Korean products(B2C)

SNS(pictures, videos - follow, like, comments, hash tags)

Online Chatting(voice, text)

Provision of directions through associated services (GPS-on foot, by a car, by public transportation)

Associated franchises through associated services(restaurants, culture, shopping) - making a reservation / payment

GPS related functions(push associated franchises, friends or tour guides locator)

Call a taxi through an associated serviceGeneral payment methods(Alipay, WeChatpay,Paypal, Visa, Mastercard, etc.)

Integrated points exchange(combined associates’ and own company’s points , matching private authentication key

Purchase of ELA COIN(with integrated points)

Staking(by holding ELA COINS)

Real-time ranking notification system of participants(by their IDs) in staking

Bar codes for discount(3 major duty-free shops, cosmetics brands, restaurant franchises, etc.)

Background voice chatting widget

Background widget for barcodes for discount

Easy log in procedure(System matching private authentication keys on an ELAMACHAIN basis)

KYC/AML

Video streaming through associated services(recorded contents-advertisements, live broadcasts-C2C transactions)

Photo to text type recording and management of account book through associated services

12

13

14

15

16

17

18

19

20

Targeted Users1 Customers of associated foreign onsite shopping malls

Foreign tourists visiting Korea

3 Cross-Border AI Platform10

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Estimated Look of The Platform

3. Cross-Border AI Platform 11

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Look of the main page Look of the easy log in page Look of the shopping mall Chatbot of the shopping mall

3.2. Applied TechnologiesThe permissioned blockchain of ELAMACHAIN is composed of blockchain core network, which used chain code of hyperledger fabric an d self-developed coin layers, and its main network is completed by establishing internal network with the structure of container system on a Docker basis, which can communicate with core network, and, external network which can communicate by apps. For techn ologies applied, there are AI chatbot with emotional intelligence technology developed by local corporation in Boston, U.S.A., and big da ta analysis system co-developed with a local partner. AI chatbot for active sales and customer services finally came to the world with the effort put in co-development with partners.

Strengthened Security for Easy Log In ProcedureThe main network of ELAMACHAIN issues client authentication certificates based on PKI, and only allows clients approved by the membership service. Therefore, the network’s traffic security becomes even more stronger since it matches private keys by blockchain authentication system at the time of inflow of users using easy log in procedure from associated Chinese local shopping malls.

3. Cross-Border AI Platform

External API

Internal APICore Network

Integratedexchange module

Image of the screen of prototype of integrated

exchange module within the internal platform

Easy log in moduleof ELAMACHAIN

ELA TRAVEL

Travel Agencies Distributors Service

Providers

ELAChatting &

SNS

ELAGDP

Hotels

OthersManufacturers

Plastic Surgery Centers

Combination of associates of ELAMACHAIN

Integrated KYC based on blockchain(KakaoTalk role)

Integration of

Integrated model of ELAMACHAIN

User of A shopping mall

• Matching associated client's points transaction on API

• Record of automatic exchange and history of exchange in the distributed ledger

• Payment adjustment and transmission of inte grated points to clients

Separation of regions&Distributed backup

Verification of flow of user's assets within the platform

Database Network

Container-based system

Properties of hyperledgerand core blockchain, a lot alike

STEP.1 Transmission of the asset to be exchanged from user’s wallet to random account (of out platform)

STEP.2 Provision of exchanged points to the selected user

Verification of detailed state ment of the asset based on the

address of private key API

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Model for easy log in procedure (examples)

User of B shopping mall User of C shopping mall User of D shopping mall

ELAMACHAINỐs services

ELA Management

and record system

Blockchain applied technologies

Actual look of the app

Security check and exchange through private key API used on easy log-in process

Integrated Points ExchangeCoins and points based on blockchain are issued in the main network of ELAMACHAIN. Those are issued to let users from associated Chinese shopping malls use their points in our platform by exchanging their existing points. At the time of such exchange by associated users, entering our platform through easy log in process, associated shopping mall’s API of point server will be matched, and the exchanged amount of points will be deducted from points previously saved in associated shopping malls. The deducted amount will be added to our platform with guarantee of such points exchange. Then the points exchange is finally completed.

The role of substitute for active sales person by AI chatbot

Our AI chatbot is composed of big data processing technology, morpheme analysis module, heraldry analysis module, context analysis module, decision making module, response module to results, formation module for emotional intelligence, RNN deep learning model, storage of learned conversations, storage of accumulated conversations done with users, etc. Among those, the big data processing technology is the most important one. Specifically, processes including the one for big data security within the AI chatbot are achieved with the AIP support of the local partner(the partner which performed R&D of MIT and big data processing system together) in Boston, which supports various operating systems(Window, Mac, Linux, etc.), with fault tolerant high speed architecture technology with high extendibility. Then the labeled dataset, the most important thing regarding the AI system, is earned and it improves the fidelity of the output by deep learning. AI chatbot learns to apply cross-border e-commerce based on basic information and instructions of domestic products, cautions and such, and learns to apply cross-border guide based on information about domestic travel sites, recommended restaurants, etc. In case of learning languages, the chatbot has to learn linguistic big data which contains 80 billion words(corpuses) of simplified characters of Chinese letters, just the same with English alphabets. Such figure is 400 times bigger than that of Korean language since chatbot only has to learn 200 million words in case of learning Korean. Because of such differences, AI’s degree of recognition based on texts varies by language. AI recognizes more than 90% of English and Chinese words while only recognizing less than 80% of Korean words. Our company’s AI chatbot service is expected to be highly satisfactory to users compared to other domestic AI chatbot services since their qualities will be different because ours took Chinese(simplified letters) version.

The core of completeness of AI technology: effective data analysis skills + advanced learning skills based on a strong hardware

Chatbot

Details of data analysis technology and AI Technology

Mass text DB moves Cross-Border AI Platform DB

Center through API Natural Language Processor

(morpheme analysis)

A rough understanding of

meanings

Taxnomy Analyzer (heraldry analysis)

What does it mean from the point of view of heraldry?

The FirstData Annotati on

(Supervised Learning)

The Second Data Annota tion(Xanadu Algorithm)

Generation of Labeled Dataset

Good labels are much more important than good machine learning models

(Improvement in accuracy by machine learning)

Context Analyzer (contextual analysis)

In what context did the word be

used?

Decision Maker (decision making)

Let's think about how to answer.

Response Generator(response with the result)

Let’s response with the answer I chose in

the previous stage

Deep Learning Model(Recurrent Neural Network/Sentence to sentence)

Searching for memory of the client’s private context

Knowledge-Based(learned communication template)

Per user Context Memory(accumulated information about the

conversation had with th e user)

InputThestage that computer can understand

Output

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3. Cross-Border AI Platform 13

Data Annotation

3.3. User Scenario

Application for new membership

Search ofthe product

Purchase

Feedback, additional

inquiries and requests

EvaluationsSNSC2C Advertisement

Changes in logos for easy log in through apps, which represent China, such as WeChat, QQ, Alipay, etc. (ELAMACHAIN’s private authentication key issued by associated shopping malls is required.)

Integrated Easy Log In Process

Integrated easy log inprocess is the most effective technology to get more users from associated shopping malls of Cross-Border platform. For example, A, the member of existing Chinese shopping mall, can get integrated authentication key on the web page of that shopping mall, apply for membership, and become a member of the cross-border platform by easy log in procedure. Also, the technology lets the user exchange shopping points they have on existing Chinese shopping mall into points for cross-border platform, and use those points

OR

Easy log in by using ID of the associated

shopping mall

AI Chatbot

AI recommends the product or provides customer services to users of shopping mall and such. If the user searches Korean cosmetics, then AI chatbot asks the user necessary information. Then, AI chatbot answers to the user’s question and recommends the product suitable to that user. In addition, it helps user’s purchase while consulting the user regarding the products they are interested in, supports the details of delivery status, and answers to users’ additional inquiries offers customer services after users’ receipt of the product. Furthermore, AI chatbot leads the user to write a comment after using the product on SNS within its app with a built-in function of sharing which utilized SNS, and thereby supports marketing of the product.

3. Cross-Border AI Platform

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Download, Installation and Tutoring

The targeted users of our company can be classified into 2 types: associated clients of associated foreign shopping malls and foreign tourists visiting Korea. Thereby, the functions of the platform app can be also divided into two, shopping mall and tourism guide functions. Users can download this platform app from the app store (IOS), android market or web page (IOS/Android), install it and select functions they need by tutoring. Then, the total menu of the app is specially tailored and organized for each client by the function the client has chosen.

Clients of the associated services using shopping mall page for Korean products

Inquiry about the product (Answering to clients in real time

by AI chatbot)

Users Using Tourism Apps

ParticipationSearch for the tour guide

Searches near area during the trip

Share trips and real-time location

(navigating)

SNS(sharing images a

nd videos)Keeping and managing of household accounts

Keeping and Managing of Household Accounts

Travel function supports various convenience of tourist users. Visitors to Korea can pay for their travel products, check and select the available tour guide on their traveling date, and have a chat room with selected tour guide through the platform application. By using AI chatbot, making a reservation or an order, and searching for good restaurants or shops near the user’s accommodation became possible as well as sharing o ne’s SNS. The function of keeping and managing of household accounts can be easily used by users. Specifically, if the user takes a picture of their receipt of a receipt from duty free shops, it will translate into a text and record on user's household accounts.

3. Cross-Border AI Platform

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APP

3.4. Business Flow

Users

Chinese Shopping

Malls

Travel Agencies

Provision of Private Key

Information about user

and the payment , rewards

Blockchain Big Data Analysis & Processing

Provision of e-commerce module and feedback

from users

Easy Log In Procedure

Active Dealers

Global Logistics and Cust omsLease of

Warehouse

Purchases

Integrated Points

Exchange Module

Payment Module

Supporting Tour Guides (chatting,

locations)

Supporting

Cross-Border Platform

Mainnet of ELAMACHAIN

AI Partners and

Affiliates

Local Partners and Affi

liates

Korean Products

Learning and updating tourism

information (reservation,

business hours and locations)

in real time

Learning product information and

customized scenario for purchase

Required members

-hip for guides

3. Cross-Border AI Platform

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Provision of tourism information in real time and help for making a

reservation

3.5. Ecosystem of ELA COIN Coins and integrated points based upon mainnet of ELAMACHAIN

Integrated points of mainnet of ELAMACHAIN is dollar-based points. Clients, who logged in from associated shopping malls by easy log in process, exchange points saved on associated shopping malls for key points which can be used within cross-border AI platform and use the points on their purchase of goods. Also, ELA COIN can be purchased with integrated points. The foundation sells and transmits their holdings to clients in exchange for integrated points, or automatically buys the coin being sold in cryptocurrency exchanges, that the API systems are interlocked, and transmits it to the client’s wallet. At that time, ELA COINS based on mainnet of ELAMACHAIN is migrated and substituted for ERC20-based ELAC tokens, already being listed on the exchange at present. Thenceforth ELA COIN will be continuously appreciated since the whole coins issued will be retired by the holders’ voluntary coin-staking activities.

Cross-BorderAI Platform

3. Cross-Border AI Platform

Economy of Scale = tens of millions of traffic from a broad

· Affiliated clients from associated shopping malls

· Affiliated tourists from associated travel agencies

· Cross-Border E-Commerce· Cross-Border Tourism Guide

· Notification of ranking in real time through staking activities

· Appreciation led by contributions toward retirement

· Can leap forward and become a SNS influencer with one’s ranking

Satisfying the Clients' Needs Benefits for Clients

Affiliated Points Integrated Points Exchanged

ELA COINForeign Currencies (yuan, yen, dollar) points

exchange staking

Staking Coins

Holders of coins of ELAMACHAIN can bring their ELA COINS bought from exchange and stake it after downloading the cross-border AI platform. Also, affiliated clients who exchanged points of associated shopping malls for integrated points on our platform can buy ELA COIN with their exchanged integrated points, and, apply for staking. When the one participates in staking coins, their participations are reflected in the ranking of staking amount, and such ranking is applied on various pages and notified in real time. Because of the platform’s characteristics, thousands of users can check on one’s SNS by clicking one’s ID. Then the one attracts many peoples’ attention. People will follow that person’s account, send direct messages, push the like button, write comments, etc. The participant in staking, who became an influencer or wanghong through above mentioned order, will get more benefits by being sponsored, supported and advertised by associated corporates. Therefore, it can be expected that such participants will continuously stake more amount of ELA COINS to maintain or improve their rankings.

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3. Cross-Border AI Platform

Coin Retirement

ELAMACHAIN’s cross-border AI platform promotes appreciation(inflation) of coin by taking advantage of economy of scale generated from exchanging points for payment, issued by our company and flew in from other overseas economies, for coins. The exchanges of points for coins presupposes a lock up mechanism through the voluntary participations. The more the participants lock up their coins, the faster the coin retirement is achieved, which will then lead to appreciation of coin.

Retirement Resulted From Staking Activities& Appreciation of Assets

Real Time Ranking Notifying System& Nurturing influencer / wanghongs

App of cross-border AI platform68%

Retirement Impossible

30%

The amount of coins in circulation: 2%

· Purchase of ELA COIN with exchanged integrated points for staking

· Purchase of ELA COIN at exchange for staking

· App of cross-border platform with built-in wallet· Letting users stake coins with ELA COIN wallet

· Retiring coins according to the rate of retirement, determined by total amount staked

· The amount of coin circulation will be reduced, and the coin will be appreciated resulted from the whole retirement of issued coins and those coins’ high scarcity value.

App of Cross-Border AI Platform Notifying The Ranking of Participants in Staking in Real Time

b = Rate of retirement S = Amount of coin being staked V = Amount of coin being circulated k = A retirement constant

More Profits for Accounts of Influencer/Wanghong

· Earning reputations from the notification of ranking determined by staking of ELA COIN

· Benefits of discount, reserve and coupons in platform· Invitation of VIP to events related to ELAMACHAIN · Leap forward for an account of influencer / wanghong by

one ’s ranking· Post interview/videos of top ten rankers · Supports top ten rankers with beneficial diversified

marketing and press advertisements

· Getting more corporate advertisements· Getting more advertisements of corporate

contents· Receipt of corporate support· An attraction of corporate PPL · Commission on sales profits· Payment for advertisement with integrated

points/ELA COINS

· Increase in number of hits of SNS within the platform· I Increase in number of follows of SNS within the platform· Increase in number of likes of SNS within the platform · Increase in number of comments of SNS within the platform · Notification of honorary ranking on the diversified page to

attract more platform users tothe account of participant in staking (pop-up, a fixed banner, notifications, posts, mailing, etc.)

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ELAMACHAIN.io.

Retirement Possible

3.6. Distribution of ELA TOKENThe token of the ELAMACHAIN is issued in a form of symbol called ELAC through ERC20, listed on BitForex, DigiFinexand Bitsdaq, a Chinese exchange similar to Korean Upbit, and currently being traded. Mainnet will be officially launched in 4Q in 2019, and the token is expected to be migrated into the mainnet-based coin.

• The total number of tokens issued is 10 billion. 30% among them are for marketing(airdrop, cost for listing tokens on exchange, advertising, meeting, participating in conferences, etc.), 50% are for R&D(cost for founding IDC center to optimize main net, founding AI big data center, development costs for advancing technologies, etc.), 12.5% are for distribution within the company(operating cost, wages, investment cost, etc. – 1% will be distributed a month for 100 separate times.), 6% are for distribution to the team(founding members-10% will be distributed a month for 10 times from December, 17, 2020.), and 1.5%are for sales(10% has been distributed every month for 7 times from December 17, 2018. As of June, 2019, it will be distributed 3 more times.).

• Themaximum numberoftokens which canberetired is 6.85billionamong9.85billiontokens, the total number of tokens except 150 million for sales. At least 3 billion tokens are used for marketing, R&D, purpose of distribution within company and team.

3. Cross-Border AI Plaform

The number of reserved coins which can be retired

2,000,000,000

4,000,000,000

8,000,000,000

6.85 billion

6,000,000,000

early stage 1st year 2nd year 3rd year 6th year 7th year 8th year 9th year 10th year0

The estimate of maximum accumulated number of tokens retired

b∝1/C St≤Vt N= The number of reserved coins after its retirement

ELAMACHAIN.io.

19

4th year 5th year

The quantities that ELAMACHAIN is holding are safely stored, and thereby the security of such tokens are guaranteed. In

addition, the policies regarding lock up and tokens ensure the transparency by supporting various types of software and

hardware. Samsung blockchain keystore is not only a cryptocurrency wallet with built-in dab management tools,

cryptocurrency payment solutions and such, but also a means for verifying oneself or electronic signatures with the use of

privateprivate key. Exynos9820, mounted on Galaxy S10, has PUF (Physical Unclonable Function), which is a hardware-type encrypted key management technology. In case of Exynos, the method which utilized chipmaking processes was applied. Furthermore, by using existing security methods such as SGX, TEES (Trusted Execution Environments, security execution environment) and trust zone technology, it offers high level of security.

Development of AI Technology for Big Data Analysis & Technology Road Map 4

4.1 The Status of Technology Development and its Road Map4.1.1 The Main Network of ELAMACHAIN(settlement system)

By there configuration of hyperledger fabric and coin layers added, there blockchain part within the main network of ELAMACHAIN is an optimized model established for settling payment and processing data. This main network-based cryptocurrency payment system, which is flexible in processing traffic along with strengthened security, can realize hierarchical authentication system.

Establishment of Hierarchical Network

Peers are added according to business partners and users participating in network, and network can be expanded.

Securement of Transparency

Transparent management of transactional information and tracing and checking on certain transactional information have become possible.

The General-Purpose Payment

The potential currency role of cryptocurrency grew stronger since the network enables the quick generation of accounts related to payment and the use at low cost. Thereby, cryptocurrency, used only for transaction with large amount, is now can be used as everyday means of transaction/payment. Also, cryptocurrencies can be extensively used regardless of whether it is used on online system or offline.

Differentiated System

The system is developed to easily and effectively process cryptocurrency payment by developing intelligent smart contract(chain code) and high-speed processing method, and realizing the technology which can keep keys from clashing each other.

Backup / Recovery

The maintenance and management is performed with Kubernetes on a cloud basis to reliably run the main network and services. The backup scheduler is keep operating internally to immediately recover the system even if the downtime breaks out. Also, the method for keeping services from any delay through monitoring the load of the system in case of temporary increase in trading is forthcoming.

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ELAMACHAIN.io.

4. Development of AI Technologyfor Big Data Analysis & Technology Road Map

AI ELA ENGINE CHATBOT IN MOBILE APP

DATA CENTER OF ELAMACHAIN

E-COMMERCE CHATBOT

2

3

4

5

6

4.1.2 AI System for Big Data Processing & Chatbot Algorithm

Integral Structure Map of AI ELA Mobile E-Commerce Web & Big Data Analytics Database

2

3

4

16

15

Contents of The Flow Diagram

The user/client sends text messages(ex. “I want to buy jeans”) to AI ELA-bot through the web site or mobile application program.The server receives such event from the web site or mobile application program. The server and online chat rooms are connected through socket.io for real-time communications.The server sends the received event to the dialog flow for the NLP process. (checking the intention and entities in the text)Dialog flowperceives the intention, extracts entities from the text, and resend it to the server.The server brings the related data fromMongoDB.The server sends a response to a website chatbot/mobile application program.

ELAMACHAIN.io.

21

1

4. Development of AI Technologyfor Big Data Analysis & Technology Road Map

4.1.3 Development of Big Data and AI Analysis System & The Establishment of Data Center

Hardware Technologies by Category

AI ELA’s Mission

Core Hardware Technologies

Intelligent I/O Pattern Analysis· The technology which analyzes reading and

writing patterns of data I/O and scores the result

Intelligent, Automation, Pattern Recog nition Network Cache Technolog y

Usage of storage units with different capabilities

Intelligent processing of distributed data

System Caching Technology· Buffer cache module using high performance

solid-state storage unit· Decision of cache policy made with analyzed

information· Provision of feedback after monitoring the

applied c ache

SoftwareDefinedStorage· Parallel distributed file system technology· Provision of storage protocol for block, file,

object and open stack· Bulk charge and discharge design technology· Heterogeneous storage integration technique

Embedded

Multi-Switching

Hybrid -RAID Technolo gy

Intelligent Pattern Analysis Algorithm Intelligent System Control Technology Intelligent Network IO processing Technology

Provision of API able to be interlocked with big data and AI analysis systemProvision of converging solution interlocked with AI + big data + blockchain

It is a work that the user performs to figure out user’s needs and emotional preferences. Users

complete the missions by using blockchain’s encrypted transaction system.

How to react is determined by improving affinity with the user with the high-quality data of

conversation. Ex) Products offering additional incentives such as discount coupons, free coffee of Starbucks or con cert tickets/Products promoted by the affiliated user with the service promotion program and blockchain’s encrypted transaction system/Provision of conveniences until the stage of payment for services

AI ELA’s Mission

How to Run AI ELA

22

ELAMACHAIN.io.

4.2. Road Map View

4. Development of AI Technologyfor Big Data Analysis & Technology Road Map

Strategic Alliance

Contact Window(Securing partners, shopping malls)

Completed the planning of

technical structureEstablishment of strategic alliance

Additional customizing (development, partnership

Strategic Alliance with major corporates with their own brand Expansion of Strategic Alliance

Release of Beta Version of ELA Payment

Customizing Global Shopping Malls Using ELA Payment

Advancing The Functions of ELA Payment(ERP, linkage with the chatbot)

AI Development

Beta Testing of Chatbot

Technical Research and Contents-Designing of AI ELA

Development of AI ELA and Realization of Chatbot

Accumulation of Big Data on The Beta Version of AI ELA

Review of On-Chain AI Technology Validity

Securement of Patent on On-Chain AI Technology in U.S.A. Foundation of AI Big Data Center

2017 2018 2019.1Q 2019.4Q

23

ELAMACHAIN.io.

"Counting down for the launch"

ELAMACHAIN Cross-Broder AI Platform

Payment Settling

Function

5 Team & Advisors25

·2018 Founded ELAMACHAIN Foundation LTD ·2017 Developed and Operated AI Bot for Trading Cryptocurrencies·2016 Participated in Development of the Brand Representing Seoul City

(I.SEOUL.U) (Everyone's Seoul, Vice-Captain)·2016 Participation of Swiss' Cybathlon As A National Team (Broadcasted on

KBS Thursday documentary)·2014 Won 'Grand Prize' in Social Venture Contest (Minister of Labor Award)·2014 - 2017 Founded SANGSANG LAB (The company specialized in

development of new technologies and robots)·2013 - 2017 Founded Enable Co., LTD. (Social enterprise / developer of

auxiliary engineering device)

·2018 The Chief of ELAMACHAIN, CTO and ELAMA CHAIN U.S.A.·2018 CEO, Xanadu Big Data LLC·2018 CEO, Zeus SW Defender, LLC·2017 Vice President, Remote Xccess, LLC (IP Commercialization &

Monetization)·2016 Chief IP Manager, LiquidaxCaptial·2009-2018 Principal Consultant & Chief IP Strategist

·2018 Program Director, ELAMACHAIN Foundation Co.,LTD.·2018 Software, Architect, Algorithm Developer, Blockchain Engineering

Design·2017 Developed and Operated AI Cryptocurrency Trading Bot·2017 Chief Engineer, Tachyon, the blockchain expert group·2017 Established the Master Node and Related Consulting Work·2016 - 2017 FLYBY Investment

ELAMACHAIN.io.

Kevin KangChairman of The Board

Alex G. LeeChief Technology Officer

Won Jae heeProgram Director

·2019 ELAMACHAIN Sr. Software Engineer·2017 - 2019 Worked on Payment Gateway with Mobile Telco of India,

Egypt, Arab emirate, Taiwan, Pakistan ·2015 - 2017 Kuusoft Corp. Software Developer·2014 American International University - Bangladesh

Senior Software Engineer

5. Team & Advisors 26

Kim Hyewon

·2019 ELAMACHAIN Overseas Marketing Activities Towards China·2017 Head of Business Management Team, Korean-and-Chinese

Established Travel Agency(located in Bangkok)

·2017 Administered The Event Commemorating 72nd IndependenceDay with Men of Overseas Independence Movements Held at TheBlue House

·2015 Obtained a Certificate of Chinese Interpretation·2014~2017 Related Work of Tourism Platform, C-trip, Alitrip·2012 Degree in Economics, Beijing University

·2019 ELAMACHAIN Design·2019 Degree in Inforamtics (Human Computer Interaction),University of Washington

·Planning and Designing of Various Projects Including MuscleUp,MUSI., SYNC, etc.

·2018 ELAMACHAIN Overseas Marketing Activities Towards China·2015 Administered Inbound Events of Liu International Co., LTD.·2009 Original Staff, Wangintong(located in Beijing, China), the

Chinese company establishing standard payment platform

·2019 ELAMACHAIN Online Marketing·2017 ~ Doing M BA in Kyunghee University·2018 Brand Marketing in Department of Cultural Work, WELL-LIVE LIFE·2017 Staff of Pricing Team, Kupang

·2018 Director of Management Planning Headquarter, ELAMACHAIN·2010 - 2018 IPO Specialized Consulting in IRKUDOS·2017 Obtained The Certificate of Certified Research Analyst·2006 Provisional Auditor of ISO Certification·2005 - 2010 Professional Consultant for Funds for Policies Related

to Small Businesses

ELAMACHAIN.io.

Deputy Head of Marketing Department

Park Lana

Director of Management Planning Headquarter

Kim Ilhan

Hwang KyuhoungSection Chief of Marketing Department

Kang DongwanSection Chief of Management Support Department

·Partner, HMP Law

·The Best Lawyer with Expertise in ICO in Korea·Legal Advisor, HanbitSoft and Bryllite·Legal Partner, Metaps Plus Inc., a subsidiary company of Kakao Talk

specialized in ICO·Provision of Directions for Policies for Blockchain and Related Issues

Regarding The Restrictions to National Assembly

5. Team & Advisors 26

·ICO Bench Advisor·Technical Blockchain Advisor·Smart Contract Development·Smart Contract Audit·DApp Development·Blockchain Project Architecture·DAO | Blockchain Development·ERC20 Token Creation·ETH | EOS | BCH | BTC | CTO | Architect

ELAMACHAIN.io.

·Founding Director and Director of The Development Office, Innoag Co ., Ltd.·Founding Director, ROSSWET MOBILE·Developed and Released Friends Run·Developed Line Run·Developed The Witch’s Garden·Developed Steins ; Gate·Developed The Angel of Depravity

Ahn Chansik

Aravinda Babu

Park Jehyeok

6 Partners27

ELAMACHAIN.io.