First, we will release a proof of concept for our proof of storage (PoS) algorithm. It is important that we show that the theoretical basis for storage contracts is sound and possible.
We release our yellowpaper which contains an exact specification of the system. This will act as a reference for the system implementation.
We will develop our own proof of capacity software, which will contain a tool for plotting the hard drive and solving challenges, like it will be required in the real system.
We will create broadcasting and peer discovery software that is needed to establish a basic communication network. The broadcasting software will show that our adaptive switching algorithm is efficient and robust. The peer discovery protocol is needed to create connections to peers in the network without using external IP lists.
We will create a test-chain that only contains our novel consensus algorithm, and no transactions. Initially, it will be based on proof of capacity only, as the proof of storage requires storage contracts and the decentralised market. We will show with this that our consensus algorithm is usable and robust.
We will introduce transactions to the test-chain. We will, for testing purposes, also introduce a command that generates coins, so that testing transactions is easier. In the real blockchain, this command will be disabled.
We will introduce anonymous routing software, where peer to peer connections can be created anonymously inside the network. This is needed for payment channels.
Payment channels will be introduced into the test-chain. They allow directly connecting to any peer in the network and making off-chain payments.
This step could not be reduced into smaller, meaningful parts. We create the decentralised storage market, storage contracts, and add proof of storage based mining to the consensus algorithm.
We might or might not decide to conduct an initial coin offering (ICO) at this point in time. After thorough testing on the test-chain, the real blockchain will be created by us. The genesis block will contain coins that are created as reward for us for developing the system, and for frequent contributors or investors.
Future features, such as user-programmed smart contracts, sharding, and more, will be introduced into the network via forks. Contributors can create improvement proposals where new features are proposed, which will (if accepted) be implemented and tested before being added to the system. The community will be involved in the decision making process for new features.