Litra Client Terms and Conditions of Use

LITRA TERMINOLOGY GLOSSARY

1.- Cryptocurrency: A cryptocurrency is a digital asset that uses cryptographic encryption to guarantee its ownership, ensure the integrity of transactions, and control the creation of additional units.

2.-Transaction: It is an operation where an origin A transfers an amount of cryptocurrency to a destination B.

3.- Block: It is a set of data, such as a set of transactions.

4.- Blockchain: It is a shared or distributed database where the registered information is stored in blocks, linked together cryptographically, and validated in a decentralized way through a common protocol.

5.- Multiple transaction: It is an operation where an origin A transfers the same amount of cryptocurrency to multiple destinations.

6.- Event: Allows a smart contract to go from one state to another, when the conditions determined in said contract are met.

7.- Transaction Blockchain: It is a blockchain implemented from the AL1 Protocol, whose blocks contain transactions belonging to the Litra Project.

8.- Blockchain of smart contracts: It is a blockchain implemented from the AL1 Protocol, whose blocks contain smart contracts belonging to the Litra Project.

9.- Event Blockchain: It is a blockchain implemented from the AL1 Protocol, whose blocks contain events belonging to the Litra Project.

10.- Blockchains of the Litra Project: It is made up of a single transaction blockchain, a single smart contract blockchain, and a single event blockchain, throughout the entire life of the project.

11.- Node: Computer equipment equipped with data processing and storage capacity, which allows the execution of computer programs with their own business logic.

12.- A.L.1 Protocol: Set of computer programs that act as a system that allows the creation of blockchains in a parameterizable way, using both a symmetric and asymmetric cryptographic system, which requires only one active node to continue functioning.

13.- Litra holder: That natural or legal person who is the owner of the private and public key, whose litra address associated with the latter has 0.000000001 litras or more, a fact that can be verified in the Litra Project transaction blockchain.

14.- Litra Client: Software part of the AL1 Protocol, which allows natural or legal persons to interact with the Litra Project.

15.- Public key: It is a succession of ones and zeros at a computer level generated during the asymmetric cryptography process.

16.- Private Key: It is a succession of ones and zeros at a computer level generated during the asymmetric cryptography process, it is associated with a public key and both allow identification and interaction with the protocol through the Litra client.

17.- User: Natural or legal person that the Litra client uses to interact with the Litra Project.

18.- Litra Address: It is a sequence of ones and zeros at the computer level, which uniquely identifies a user to the protocol, and is calculated based on the public key entered in the Litra Client. The user can freely disseminate this address to receive letters, so it is encoded in a friendlier format, which makes its dissemination easier. A user can check their Litra address through the Litra Client, or by opening the .TXT file they received in the Litra user creation process.

19.- Litra Project: It is a project managed by the company AL1 Protocol S.L (with headquarters in Spain) and open to the community, which includes users, independent programmers, hackers, economists, collaborating companies, etc., whose mission is to contribute a solution to the problems derived from physical money, allowing a logical evolutionary transition to digital money, also providing a solution to secure payments over the Internet and content certification, quickly and efficiently.

20.- AL1 Protocol S.L: It is the legal entity that manages the Litra Project.

21.- Notary Node: It is a node in which a computer program part of the A.L.1 Protocol, called “Notary”, is installed. It is responsible for verifying that the content of the block belonging to the transaction blockchain is correct before signing it. That a block is signed by a Notary node is an essential requirement for it to be part of the protocol’s transaction block chain.

22.- Smart Notary Node: It is a node in which a computer program part of the A.L.1 Protocol, called “Smart Notary”, is installed. It emerges as a subtype of Notary, where they share a good part of their operation, but they sign blocks corresponding to the event blockchains and smart contracts.

23.- Secretary Node: It is a node in which a computer program part of the A.L.1 Protocol is installed, called “Secretary”, and which acts as a link between Litra users and the notary nodes, releasing the latter of tasks specific to the business logic of the protocol, which entail a considerable processing need.

24.- Intelligent Secretary Node: These are nodes that emerge as a subtype of secretary, making use of the parameterization capacity of the A.L.1 Protocol, and that act as a link between Litra users and the intelligent notary nodes, releasing these last of tasks specific to the business logic of the protocol, which entail a considerable processing need.

25.- Client node: Node where a Litra client is installed.

26.- Down node: It is any node that cannot carry out its associated business logic (due to an attack, power outage, etc.).

27.- Mining activity: It is an activity consisting of carrying out two tasks: the first of them consists of the calculation of complex mathematical operations, based on the new blocks generated in the blockchain that contains the transactions of the Litra Project, and that allows audit whether they are correctly signed. The second task consists of saving the new generated blocks (acting as a backup copy of the protocol).

28.- Mining:  It is the performance of the mining activity, which can optionally be carried out through the Litra Client.

29.- Miner: This is a Litra Client who has the option to carry out mining activities activated.

30.- Winning Miner: This is a miner who receives litra cryptocurrency as compensation for the mining tasks carried out.

31.- Foreman Node: It is a node in which a computer program part of the A.L.1 Protocol, called “Foreman”, is installed. They allow mining operations to be carried out by the client nodes that are performing them.

31.- Altas Node: It is a node in which a computer program part of the A.L.1 Protocol, called “Altas”, is installed. Allows a user, from their Litra Client program, to obtain the necessary credentials to operate with the Litra Project.

32.-Transaction generated directly by client: It is a transaction generated by a user through their Litra Client program.

33.- Payment transaction to miners: multiple transaction whose purpose is the reward in litras for the winning miners of each new block, generated in the transaction blockchain.

34.- Frozen litras: It is a quantity of litras greater than 0, whose holder loses the ability to transfer them in any type of transaction.

35.- Thawed litras: It is the action that allows a quantity greater than 0 frozen litras to stop being frozen.

36.- Transaction associated with a smart contract: These are transactions that are carried out in different states of the smart contracts, and allow freezing or unfreezing litras.

37.- Block communication Delay: it is a parameterizable amount of time in the Litra network protocol, in order to allow time for the blocks to be transmitted through the network and reach from one notary to another.

38.- Notary 0: is a special notary node that carries out some functionalities offered by the A.L.1 Protocol, such as the backup copy of transactions not yet written in the blockchain, or the management of catastrophic scenarios, in which each and every one of the nodes attacked effectively and simultaneously, and has subsequently been restarted. The A.L.1 Protocol is prepared so that it can continue working with a downed Notary 0 node.

39.- Winning block: It is the block chosen from among all those proposed by the Notaries, and that is written as the next block in the blockchain.

40.- Smart Contract: It is a computer program that facilitates, secures, enforces and executes agreements between two or more parties, stored in a chain of blocks, to which is added the ability to obtain information from outside, allowing interaction with actors and external factors automatically. It has a life cycle that allows a contract to always be in a certain state, specifying the operations that must be carried out when passing from one state to another, as well as the conditions that must be met for said state change to be feasible.

The acceptance of all parties involved in the contract is an essential requirement in order to be concluded.

41.-Litra address of origin of the smart contract: It is the litra address from which the frozen litras come (origin of the total payment associated with the contract).

42.-Litra destination address of the smart contract: It is the Litra destination address of the payment transaction associated with the contract, which will be carried out if the conditions stipulated therein are met.

43.-Duration of a smart contract: It is the period of time available to the user to whom the destination Litra address belongs to carry out their part of the contract.

44.- State 1 of a smart contract:  This is the initial state in which a smart contract is, once it has been created by the user to whom the Litra address of origin of said contract belongs. Since the litras are frozen, the user to whom the destination address of the litras belongs is assured that he will receive them if he fulfills his part of the contract.

45.- State 2 of a smart contract: It is reached from a contract state 1, when the user to whom the destination Litra address belongs, informs through the Litra client that he has carried out his part of the contract.

46.- State 3 of a smart contract: It is reached from a contract state 2, when the user to whom the destination Litra address belongs, informs through the Litra client that there is a conflict with the user of the source address, which prevents the contract from being finalized.

47.- State 4 of a smart contract: It is reached from a contract state 2, when the user to whom the source Litra address belongs, informs through the Litra client that there is a conflict with the user of the destination address, which prevents the contract from being finalized.

48.- State 5 of a smart contract: It is reached from a contract state 2, when the user to whom the origin Litra address belongs verifies that the counterparty has complied with the conditions of the contract, reporting this fact through the Litra client , leaving the contract closed.

49.- State 6 of a smart contract: It is reached from a contract state 1, when the user to whom the origin Litra address belongs, informs through the Litra client that, having elapsed the duration of the contract, he has not obtained a response any on the part of the user of the destination address, leaving the contract closed.

50.- State 7 of a smart contract: It is reached from a contract state 3, when the trusted agent of the contract fails in favor of the user to whom the destination Litra address belongs, leaving the contract closed. In this case, the trusted agent has considered that the conditions of the contract have been met, and the amount of litras agreed upon in the contract passes to the destination.

51.- State 8 of a smart contract: It is reached from a contract state 3, when the trusted agent of the contract fails in favor of the user to whom the origin Litra address belongs, leaving the contract closed. In this case, the trusted agent has considered that the conditions of the contract have not been met, and the amount of litras agreed upon therein is unfrozen and returned to its original owner.

52.- State 9 of a smart contract: It is reached from a contract state 1, when the user to whom the destination Litra address belongs, informs through the Litra client that he does not agree with the conditions of the contract, leaving this as closed.

53.- Conflict status of a smart contract: A contract is in conflict status when it is in state 6 or 7.

54.- Closed smart contract: A smart contract is closed when it is in state 5, 6, 7, 8 or 9.

55.- Trusted agent: It is a natural or legal person that intervenes in a smart contract identified by its Litra address, acting as a trusted third party, and who has the power to, if the contract is in a state of conflict, decide whether the frozen litras are defrosted in favor of their current owner (litra source address of the contract), or whether they are defrosted and transferred to the destination address present in the contract.

56.- Smart precontract: It is a smart contract that has not been created by the user to whom the Litra address origin of the precontract belongs, nor by the user to whom the Litra destination address of the precontract belongs. It has a useful life of 5 minutes, in which it must be accepted by the source address appearing in the pre-contract, through the Litra client program, going from a smart pre-contract to a smart contract. If a smart pre-contract is not accepted within 5 minutes of its creation, it is eliminated and becomes invalid.

57.-Partner: It is a natural or legal person, authorized by THE COMPANY, who has the capacity to create smart pre-contracts, and whose address cannot be the origin or destination of the smart pre-contracts created.

58.- Type 0 contract: is a smart contract used in the Litra Project, which aims to buy or sell litras, receiving an amount in fiat currency or cryptocurrency in return. This type of contract always arises from the acceptance of a pre-contract created by a partner. It is associated with a secure payment, so always a collaborating agent acting as a trusted third party.

59.- Type 1 contract: it is a smart contract used in the Litra Project, which aims to sell goods or provide services, receiving an amount in litras in return. This type of contract always arises from the acceptance of a pre-contract created by a partner. It is associated with a secure payment, so always a collaborating agent acting as a trusted third party.

60.- Contract type 2: It is a smart contract used in the Litra Project, which aims to sell goods or provide services, receiving an amount in litras in return. It is created directly by Litra users, without the need for a prior pre-contract since consent is given directly during its creation.

61.- Contract type 3:  is a smart contract used in the Litra Project and more specifically in the service it offers to the user called “Digital Notary”, which aims to certify any fact or circumstance that can be digitized.

62.- Digital notary: It is a service provided by the Litra Project, which aims to allow the user to certify any fact or circumstance that can be digitized, by entering a text and the possibility of uploading a file (all formats are allowed), which may or may not be encrypted, at the user’s discretion. All of this will be part of a type 3 contract, which will be part of the Litra smart contract blockchain, remaining immutable for life. Anyone may have access to the content of the contract, and if it exists, to the attached file, although if it is encrypted, only those who have the password will be able to make its contents intelligible.

63.- litra: is the name of the cryptocurrency used in the Litra Project to pay for the services it offers. It is generated in a controlled manner in quantity and time through a mining process, and is managed through the Litra transaction blockchain.

64.- Commission: It is an amount of litras generated in smart contracts that the trusted agent or trusted agents involved in said contract receives.