Hizoco Business Whitepaper

Executive Summary

Hizoco is a scenario-driven functional public chain cluster. OxChain (Chou Chain) serves as the first general-purpose sidechain under Hizoco's Twelve Earthly Branches partitioned chain framework, designed for universal developers.

Core Value Proposition: Hizoco leverages the PoST (Proof of Space and Time) consensus mechanism to lower node participation barriers. It focuses on three core scenarios: Software and AI Tool Original Security Audit, Application Self-Distribution and Traceability Control, and Equitable and Democratic Revenue Distribution. Through a compliant architecture and lightweight toolchain, Hizoco addresses four major industry pain points: "low real activity, marginalization of small participants, high development barriers, and decoupling of tokens from real business."

Core Technology: PoST (Proof of Space & Time) — OxChain is built on Go-Ethereum (Ethereum's Go implementation), combining Proof of Space with Verifiable Delay Functions (VDF) to achieve Proof of Time. Nodes participate in network maintenance by contributing idle disk space, rather than relying on high computational power or token staking.

Core Differentiated Scenarios: Three real business needs — (1) Low-cost original security audit for software and AI tools; (2) Application self-distribution with traceability control to prevent malicious modification; (3) More democratic and equitable revenue distribution.

HZC Positioning: HZC is a dedicated service usage credential within the Hizoco ecosystem. It does not possess virtual currency attributes and is not used for off-chain transactions, financing, or other financial activities. Its usage scope is strictly limited to on-chain scenarios specified in this whitepaper. Currently, HZC is only used for on-chain proof-of-existence, smart contracts, feature unlocking, node storage incentives, and other closed-loop ecosystem scenarios, circulating solely within the chain system.

Current Stage: Testnet is publicly operational (Mainnet ChainID: 80096); Hizoco App (Android version) is available for download; Developer documentation is open (including official website and open-source repository); AI Agent (OpenAI API compatible, supporting multi-model switching) functionality is available.

I. Industry Background: Four Common Bottlenecks Faced by Mainstream Public Chains

Over the past decade, numerous public chain infrastructure projects have emerged globally, yet most have failed to achieve sustainable ecosystem development. By systematically reviewing industry public data and failed cases, we have identified four recurring problems in mainstream public chains.

Bottleneck 1: On-Chain Real Activity Far Below Technical Indicators

Some public chains emphasize theoretical TPS figures or financing scale in their promotions, but after launch, on-chain real economic activities are severely insufficient. Industry reviews show that many public chains have mostly test transactions with low real business activity.

There is a systemic gap between technical parameters and real usage, stemming from the lack of responsiveness to actual business needs during public chain design.

Bottleneck 2: Concentrated Governance Power, Marginalization of Small Participants

Current mainstream consensus mechanisms generally exhibit structural bias: large storage clusters and major token staking institutions dominate the network through resource advantages. Ordinary users have limited channels to participate in network co-construction, leading to incentive distribution continuously concentrating at the top. As network scale grows, the voice and profit space of small participants become increasingly squeezed.

The gap between the promise of decentralization and actual governance structure is a key factor affecting long-term user retention.

Bottleneck 3: High Developer Toolchain Barriers

Smart contract development involves multiple specialized fields such as cryptography and distributed systems, resulting in high learning costs. The maturity of development documentation, SDKs, and toolchains varies significantly among existing mainstream public chains. For ordinary developers, the cycle from environment setup to launching the first DApp is lengthy.

In addition, some public chains have complex DApp publishing processes and long review cycles, restricting developers' ability to quickly iterate and validate ideas.

Bottleneck 4: Token Economic Design Decoupled from Real Business

Some public chains' token designs lean toward financial attributes, potentially conflicting with regulatory directions. Meanwhile, if token value primarily depends on secondary market expectations rather than real on-chain consumption scenarios, it easily falls into a cycle of "users come for expectations, leave when expectations fail," resulting in weak ecosystem retention.

II. Core Design Principles of Hizoco

Hizoco systematically addresses the above four common industry bottlenecks through design in four dimensions: consensus mechanism, incentive distribution, developer tools, and compliance architecture.

2.1 Consensus Mechanism: PoST (Proof of Space and Time)

PoST (Proof of Space & Time) is Hizoco's core consensus mechanism, consisting of two components: Proof of Space and Proof of Time.

OxChain is built on the Go-Ethereum consensus engine. The PoST module integrates dual verification logic of Proof of Space and VDF-based Proof of Time on top of Ethereum's consensus framework. The overall technical architecture follows Ethereum's classic three-layer structure (consensus layer/execution layer/application layer), while incorporating OxChain's exclusive PoST block production and verification modules.

Basic Principles of Proof of Space

Nodes participate in the network by proving they contribute real available disk space:

• First, "plot" data into disk space;
• Then, prove possession and continuous maintenance of this space during on-chain challenges.

Proof of Space adopts the BLS12-381 elliptic curve signature scheme, with single proof generation time under 1 millisecond on ordinary CPUs. The Sub-slot time window length is automatically adjusted by the network based on actual block production speed in the previous sub-epoch to adapt to current network hardware capabilities. No high-performance computing or token staking is required; only ordinary PCs with idle storage disks are needed for lightweight node deployment. Specific environment details can be found in the developer documentation.

Basic Principles of Proof of Time (VDF, Verifiable Delay Function)

VDF ensures physical verifiability of time passage and prevents precomputation attacks. OxChain incorporates a four-chain architecture to handle different types of time proof tasks:

• Challenge Chain: Generates random challenges
• Reward Chain: Allocates incentive weights
• Infused Challenge Chain: Bridges verification
• Extension Chain: Extended verification channel

All chains operate collaboratively through the VDF Timelord RPC interface, ensuring time proof results cannot be bypassed or forged in advance.

Comparison with Mainstream Consensus Mechanisms:

Node Tiered Incentive Adjustment Mechanism (Already deployed on testnet, will be enabled upon mainnet launch):

Hizoco introduces a differentiated node incentive adjustment mechanism at the consensus layer: nodes with larger storage capacity receive progressively lower incentive allocation ratios per unit storage space. Solidified in on-chain smart contract rules, small and medium storage participants are not marginalized.

Hizoco adopts a Twelve Earthly Branches partitioned chain cluster architecture. OxChain is the first general-purpose sidechain for universal developers; other partitioned sidechains will be gradually deployed based on regional compliance requirements and specific business scenarios.

Natural Alignment Between Proof of Space and Proof-of-Existence Business:

PoST is based on the BLS12-381 elliptic curve cryptography system, with customized modifications for high-frequency proof-of-existence verification scenarios to adapt to lightweight commercial needs.

Its core lies in nodes making pre-space commitments to the network and continuously proving the existence and continuity of these commitments through cryptographic means — a "space commitment" mechanism that cannot be forged afterward, is tamper-proof, and publicly verifiable. This characteristic aligns perfectly with the underlying needs of proof-of-existence business: on-chain hash values and version records are credible precisely because the space recording them has been pre-occupied and continuously maintained by nodes. The larger the network and the longer the time, the more irreversible the commitment becomes. Therefore, PoST proof-of-existence has an additional credibility source different from traditional cryptographic proof-of-existence — the physical occupation of real space.

2.2 On-Chain Service Fee System

On-chain service fees in Hizoco consist of three components, each serving distinct purposes:

• Mining Tax (Storage Resource Occupation Fee): Resource occupation service fees generated when users call underlying storage services such as proof-of-existence and contracts
• Service Tax (Platform Tool Usage Fee): Service fees for using platform配套 development tools and commercial authorization tools
• Node Incentives: A portion of the above fees is redistributed to nodes contributing storage resources to ensure continuous network operation

After deducting operational costs, a portion of service fees from on-chain service usage goes to node storage incentives, with the remainder allocated to the community support pool for ecosystem development including developer tools and scenario pilots.

This design transforms the traditional one-way "user-only expenditure" fee structure: users are both consumers of on-chain services and potential beneficiaries of ecosystem development.

2.3 Developer Toolchain

EVM Compatibility, Low-Cost Migration

OxChain is highly compatible with Ethereum EVM standards. Solidity smart contracts can be migrated and deployed with minimal adaptation, significantly reducing cross-chain development costs for Ethereum developers.

Complete Toolchain:

Trustcore Security Signing Module Description:

Trustcore is the core on-chain identity and signing module built into the Hizoco App, implementing on-chain identity authentication following Ethereum industry standards:

• EIP-191 (personal_sign): Standard message signing interface, consistent with signing experience of mainstream wallets like MetaMask
• EIP-712 (typed data sign): Structured data signing, readable and verifiable signing content, preventing phishing signatures
• BIP39 HD Wallet: Mnemonic phrase standard, supporting multi-account derivation from seeds, reducing user asset management complexity

AI-Generated Smart Contracts

The Hizoco App features built-in AI Agent functionality, with underlying access to OpenAI API-compatible protocols (supporting multi-model switching). It can generate initial smart contract code based on natural language requirements, helping developers quickly complete prototype verification and iteration. AI-generated code requires manual review and security testing before deployment. The platform does not guarantee code is free of vulnerabilities or compliance risks.

Hizoco App (Android version) is now available for download, with AI functionality enabled.

2.4 Compliance Architecture Design

Hizoco has been systematically designed for compliance in accordance with domestic blockchain regulatory frameworks:

• ICP Filing + Public Security Filing: Already obtained
• HZC Token Positioning: Ecosystem service usage credential (see Chapter 4 for details)
• Operational Red Lines: The project currently does not conduct any fundraising activities targeting the public, nor does it build supporting services related to off-chain circulation or exchange
• Regional KYC Design: The Hizoco App does not store user personal information. When users first import or create an on-chain account, the system encrypts and stores "phone number + verification SMS + public key information" on-chain to prove the user passed phone verification at a specific time. Regulatory authorities can call on-chain verification interfaces in compliance with requirements. The binding mechanism between on-chain accounts and real identities will be gradually improved based on regulatory requirements and technical capabilities.

III. Core Commercial Use Cases

Hizoco has designed a complete on-chain toolchain around three real business needs, which is the core difference between Hizoco and purely technical public chains.

Use Case 1: Software and AI Tool Original Security Audit

The core pain points for software developers and AI tool creators are high costs, long cycles, and difficult proof of original ownership, as well as inability to trace code after malicious modification. Traditional software copyright registration typically takes months and costs hundreds to thousands of yuan.

Hizoco's Solution: Developers upload program hashes (digital fingerprints) and version records through the Hizoco Web3 Browser, binding personal on-chain digital accounts and signatures (Trustcore EIP-191/EIP-712 standards) to complete original declaration on-chain. Once on-chain timestamps and hash records are generated, an immutable creation timeline is formed.

Timestamps and hash values generated after developers' program hashes and version records are stored on-chain can retain creation process records and serve as auxiliary electronic evidence materials. The admissibility and legal effect of such evidence must comply with electronic evidence regulations in the jurisdiction, with the final determination subject to effective judicial rulings.

Scenario example: AI tool developers can preserve creation timelines through multi-version hash storage to assist in infringement communications; the evidential effect of storage is subject to local judicial determination.

Advantage Comparison:

Use Case 2: Application Self-Distribution and Traceability Control

After releasing applications, software developers face core risks of unauthorized copying, forwarding, cracking, and even release of modified versions with malicious code. Traditional solutions rely on centralized platform review, but platforms themselves can become single points of failure or conflict of interest.

Hizoco's Solution: No mandatory reliance on centralized app stores for listing. Developers can directly reach users through their own private domains, official websites, and other channels. With supporting on-chain traceability control system, device binding and signature verification work in parallel to prevent both piracy and malicious modification.

Core Mechanisms:

• Application release binds developer's on-chain account and digital signature (Trustcore EIP-191 standard, developer identity anchoring)
• Application hash value stored on-chain (content integrity anchoring)
• Users must complete on-chain device registration online for first-time installation, generating a unique device ID (traceable distribution path); basic verification can be completed based on locally cached on-chain hashes in offline environments, with verification results synchronized upon reconnection
• During application runtime, embedded on-chain hash verification logic compares local application hash with on-chain stored hash; if inconsistent, operation is refused and content tampering risk is alerted

Core Differences from Traditional Distribution Models:

Use Case 3: Equitable and Democratic Revenue Distribution

In traditional centralized platforms and most public chains, benefit distribution rules are unilaterally set by platforms. Large nodes and institutions continuously expand their influence through resource scale advantages, while the profit space of ordinary developers and users is increasingly squeezed. The more prosperous the platform, the more passive small participants become.

Hizoco's Design Principle: Rules written on-chain, collectively guarded by participants.

• Equitable Node Incentives: Tiered incentive mechanism enables nodes with smaller storage capacity to achieve higher unit output, placing small and medium nodes on a more level playing field with large operators
• Autonomous Application Revenue: Developers independently control pricing strategies, user data, and distribution channels, no longer subject to platform rules and commission rates
• Transparent Profit Sharing Rules: ZCP contract templates (LP3/LP4, etc.) preset profit-sharing logic, with trigger conditions automatically executed and execution processes stored on-chain, eliminating room for human manipulation
• Community Governance Participation: After DAO mechanism implementation, ecosystem rule adjustments require on-chain community proposals and voting, with developers and users jointly participating in ecosystem governance

On-Chain Profit Sharing Advantages:

• Profit-sharing rules written into contracts, automatically executed upon trigger conditions, eliminating tampering risks
• All transaction records stored on-chain, traceable and verifiable
• Supports multi-level distribution architecture, adapting to various business models such as agency and partnership

IV. HZC Token Description

HZC is a dedicated service usage credential within the Hizoco ecosystem. It does not possess virtual currency attributes and is not used for off-chain transactions, financing, or other financial activities. Its usage scope is strictly limited to on-chain scenarios specified in this whitepaper.

Usage Scenarios

• On-chain proof-of-existence record consumption (Mining Tax)
• Smart contract deployment and invocation
• Advanced feature unlocking within applications
• Ecosystem service fee payment (Service Tax)

Acquisition Channels

• By deploying nodes and continuously contributing idle storage resources to receive node incentives
• By participating in ecosystem applications, completing tasks, or contributing content

Circulation Scope Description

Currently, HZC only supports on-chain business consumption and node incentive distribution. The platform has not yet established supporting services for off-chain circulation. The platform reminds users that such offline circulation activities carry regulatory compliance risks. If users conduct offline circulation activities on their own, such activities are not bound by platform rules, and all responsibilities shall be borne solely by the participants.

Issuance Mechanism

HZC adopts a dynamic issuance mechanism with no fixed total supply cap (similar to Ethereum and Chia, belonging to public chains without issuance limits). Issuance is designed with two halvings:

• First halving block height: 11,212,800
• Second halving block height: 22,425,600
• Block production speed: approximately 11.25 seconds/block
• Block reward: 5 HZC per block from genesis to first halving; 2.5 HZC per block from first to second halving; 1.25 HZC per block after second halving
• Annual issuance: approximately 14 million HZC in the first year; approximately 7 million HZC/year after first halving; approximately 3.5 million HZC/year after second halving
• Long-term annual issuance growth rate approaches zero; due to on-chain transaction fee partial destruction mechanism and token loss, when destruction+loss ratio exceeds annual issuance growth rate, HZC will enter deflation

Genesis Allocation (Total: 39,383,584 HZC):

Issuance parameter details will be publicly announced via official website and developer documentation before mainnet launch.

V. Development Roadmap

5.1 Phase 1: Testnet Public Operation (Current Stage)

• PoST consensus testnet stable operation
• Twelve Earthly Branches partitioned chain underlying architecture continuous improvement
• Hizoco Web3 Browser launch, AI contract generation functionality available
• Node co-construction storage incentives open
• Software security audit, application self-distribution, and revenue distribution scenario pilots in progress
• HSP standard proposal framework (HSP-0, HSP-1) open

5.2 Phase 2: Mainnet Official Launch

• Testnet features and incentive mechanisms fully migrated to mainnet (Mainnet ChainID: 80096)
• Full release of JavaScript/Python/Go SDKs and complete ZCP contract template library
• Standardized tools for on-chain rights confirmation and authorized payment publicly released
• Expand B-end enterprise proof-of-existence cooperation, increase node community scale
• DAO community governance mechanism implemented (community users can participate in ecosystem rule adjustments through on-chain proposals)

5.3 Phase 3: Ecosystem Expansion

• Improve cross-partition chain compliance interoperability
• Build ecosystem support system for small and micro developers
• Continuously iterate AI-assisted development tools to lower development barriers in more scenarios

VI. Team and Background

Hizoco is developed by a small technical team from Hainan Hizoco Blockchain Technology Research Institute. Team members cover underlying chain development, smart contracts, and application development. The team focuses on lightweight use cases and continuously iterates products based on actual business needs.

VII. Join Us

VIII. Contact and Cooperation

• Official Website: www.hizoco.net (Hizoco main website), www.oxchain.net (OxChain dedicated website)
• Developer Documentation: docs.hizoco.net
• Open-Source Repository: https://gitee.com/afilez/hizoco_wiki (Hizoco's official exclusive open-source repository)
• Business Contact: hizoco@zoyo.net (Reply during workdays 9:00-18:00)
• Company Address: Hainan Ecological Software Park

IX. Risk and Compliance Statements

1. HZC Classification: HZC is a dedicated service usage credential within the Hizoco ecosystem. It does not possess virtual currency attributes and is not used for off-chain transactions, financing, or other financial activities. It only serves internal business scenarios within this chain and can only be used for on-chain service consumption and node storage incentive collection, without universal circulation medium attributes.
2. Compliance Red Lines: Hizoco strictly complies with current blockchain information regulatory requirements and does not conduct public fundraising activities at this stage. Any use of this chain and HZC for illegal financial activities is prohibited. Cross-border digital distribution business must comply with corresponding local data management regulations, and the project does not guarantee global compliance adaptation capabilities.
3. Technical Risks: Blockchain technology is still in rapid development. Smart contract security, network stability, and other aspects require continuous verification. Before deploying nodes or using on-chain applications, users should fully understand related risks.
4. Node Operation Risks: Node participation in network maintenance requires users to bear hardware depreciation, network fees, and other costs. The platform does not guarantee the stability of node storage incentives, which are affected by network scale, storage contribution, and other factors.
5. AI Contract Risks: The AI-generated smart contract feature in Hizoco App only provides initial code drafts. Developers must independently review and bear code vulnerabilities, logic errors, compliance risks, and other issues. The platform assumes no joint liability.
6. AI Model Usage Risks: The AI Agent feature in Hizoco App provides services based on OpenAI API-compatible protocols, supporting multi-model switching. Model output results are influenced by training data and input instructions. Users must comply with the model provider's usage specifications when using this feature. The platform makes no guarantee regarding the accuracy or legality of AI output content.
7. Legal Effect Risks: On-chain hash storage can serve as auxiliary electronic evidence for creation process traceability. Its admissibility standards must comply with the "Electronic Signature Law of the People's Republic of China" and electronic evidence regulations in the corresponding jurisdiction. It cannot replace official ownership registration documents such as copyright registration and trademark registration. Evidence admissibility standards are subject to local judicial determination.
8. Content Compliance Risks: This set of rights confirmation and distribution tools is only open to compliant software and legitimate AI tool creators. Forbidden programs and illegal digital content are prohibited from on-chain rights confirmation and distribution. The platform reserves the right to terminate services for non-compliant users.
9. Information Disclosure: This whitepaper is for informational purposes only to understand Hizoco's technical architecture and business positioning. It does not constitute investment advice or any form of commitment. The Hizoco team will continue to advance technology research and ecosystem development but assumes no legal liability for any decisions made by third parties based on the content of this whitepaper.

Hizoco focuses on blockchain applications in real economy, supporting the construction of on-chain application ecosystems that comply with regulatory requirements.