Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 174

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 174
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. This technology records all transactions and data changes between
network participants, ensuring data security and reliability.

A consensus mechanism is an algorithm ensuring
all nodes agree on transactions and data changes via a voting mechanism. This mechanism aims guarantee the results obtained are consistent
and valid. Common consensus mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Proof of History (PoH).

Cryptographic technology is a critical foundation
for ensuring data security, and decentralized distributed technology employs various encryption algorithms, with the most common being
the hash algorithm.

Smart contracts are computer protocols aimed
at disseminating, verifying, or executing contracts digitally, allowing for trustworthy transactions without a third party. These transactions
are trackable and irreversible.

The underlying technology providers of decentralized
distributed technology primarily include international providers such as Near Protocol, Dfinity, and Chainlink, as well as domestic providers
like Qulian Technology, Tencent Blockchain, AntChain, and Zhenglian, our Company.

The basic equipment of decentralized distributed
technology primarily refers to various nodes and the networks they constitute. Nodes are computers or servers operating within the distributed
network, used to store and process data and transactions on the distributed network. International suppliers, including Hyperledger,
Corda, and Ripple, still dominate the distributed base equipment market. However, Chinese suppliers, represented by Changan Chain and
Huawei, also demonstrate potential in this field.

| 2. | Midstream: generic                        
 applications and technological extensions |

The midstream of the industrial chain primarily
comprises the generic applications and technological extensions of decentralized distributed technology, including Blockchain as a Service
(BaaS), solutions and application development components, digital identity, and data services. These mainly involve building decentralized
distributed foundational technology, which, when combined with traditional information technology (like cloud computing), creates an
intermediate platform layer. This platform plays a bridging role by providing universal application services for distributed technology
or supports vertical industry applications downstream at the platform level.

In terms of solutions and application development
components, mature service providers exist abroad, such as IBM, Oracle, and Microsoft Azure. Domestic companies such as AntChain, Qulian
Technology, Tencent Cloud are also dedicated to creating universal solutions based on decentralized distributed technology. They also
focus on the environment for distributed development and integration tools, offering broad application scenarios.

Digital identity is a way of authenticating and
managing the identity of individuals or entities. It can be used in various scenarios, such as identity verification, authorization,
initiation of