Cryptocurrency 2.0 for Real Economy

Transcription

1 Cryptocurrency 2.0 for Real Economy Whitepaper(ENG) v0.9

2 Introduction... Cryptocurrency 2.0 and PAXCoin... Blockchainstory Co., Ltd... PAX Foundation... PAX Foundation Core Members... Current Business Status of Blockchainstory Co., Ltd & PAX Foundation... PAXCoin Development Background and Purpose... Technical Description... Total Supply & Decentralization, Mining Method... PC and Mobile Wallet(Native Wallet)... Source Code Public... Algorithm for private miner Mobile Wallet(Native Wallet) Encryption Algorithm - Scrypt Overview of PAXCoin PAXCoin Allocation Project Roadmap

3 At the 2018 World Economic Forum (Davos Forum) has selected six future technologies. It is a Blockchain, Nano Sensor and Nano Internet of Thing (IoT), next generation battery, 2D material, unmanned (autonomous) vehicle. In particular, Blockchain technology is the core technology of the fourth industrial revolution. Blockchain Next Generation battery 2D material Nano Sensor Autonomous Nano Internet of Thing The DAVOS Forum 2018 focused on how to utilize the Blockchain (digital decentralization ledger) technology to create an environment in which humanity can live a more affluent future through decentralization, fairness, and transparency. Blockchain technology is a realistic alternative to the 2018 Davos forum theme, "Creating a Shared Future in Fractured World. Page 02

4 Introduction Starting in 2017, companies that are experimenting with the application of actual Blockchain technology is increasing rapidly and numerous Cryptocurrency have emerged. These changes show that Blockchain technology can be applied to a wide a range of industry in all industries. The most accessible means of Blockchain technology is Cryptocurrency and the dissemination and utilization of the Cryptocurrency will change the way people live. Since the introduction of the first Cryptocurrency Bitcoin using Blockchain technology in late 2008, a number of Cryptocurrencies have emerged. A number of startups have focused on the technological evolution of Cryptocurrency, which has resulted in significant technological advances. There are also various industries where Cryptocurrency can be applied, and various protocols have emerged. They have made significant advances in encryption technology, the speed of processing, security and more. However, these developments are too much focus on technology and not much research is being done on payments and settlement methods which Cryptocurrency's original function. The technological development of the Cryptocurrency itself is very important, but the use of the Cryptocurrency in real life is also very important and must be accompanied by the development of the technology. in 2008 now Page 03

5 Introduction Cryptocurrency 1.0 is the currency that focuses on the technological development of the Cryptocurrency itself, Cryptocurrency 2.0 can be used to configure the whole the system so that it can be used directly in real life. Cryptocurrency 3.0 can be defined as Cryptocurrency which evolves in combination with various industrial fields based on Blockchain technology. CRYPTO CURRENCY 1.0 CRYPTO CURRENCY 2.0 CRYPTO CURRENCY 3.0 The distinction between Cryptocurrency 1.0, 2.0, and 3.0 in this whitepaper is not a general notion that 2.0 evolved beyond 1.0. Cryptocurrency 1.0 is an area that contributes to the technological advancement of Cryptocurrency itself, Cryptocurrency 2.0 is an area where Cryptocurrency contributes to real life, Cryptocurrency 3.0 is the area where Cryptocurrency contributes to creating added value by combining with existing industries. By this distinction, PAXCoin belongs to the realm of Cryptocurrency 2.0. Page 04

6 Cryptocurrency 2.0 seeks to build an associated financial system and ecosystem that can be used as a means of settlement and payment in real life (Cryptocurrency 1.0 does not function as a monetary function yet, and it remains an investment property due to price fluctuation like stock in Cryptocurrency exchange). individual and individual company and company country and country PAXCoin has the highest level of security and stability, and through the establishment of a payment and settlement system, it is the best Cryptocurrency that does not require currency exchange in transactions between individual and individual, company and company, country and country. Although various technologies have been used for fair and reliable transactions in the past, they have many limitations that current financial systems cannot be resolved. The best technique to overcome this limitation is the Blockchain technology and the Cryptocurrency 2.0. By using Blockchain technology, you can record and share various kinds of information needed for trade transactions in the distributed ledger, so that the same information is sent to related parties, and information can be directly viewed or modified without an intermediary. Also, because the record remains in the Blockchain for the act of modification, it can be verified with past history even if there is any malfeasance. In addition, the emergence of Cryptocurrency with Blockchain has enabled reliability, time and cost savings in interpersonal, inter-company and international transactions. Page 05

7 Blockchainstory Co., Ltd is specialized in developing Blockchain and AI(artificial intelligence) related technology, developing Cryptocurrency with Bitcoin and Ethereum as platforms, and provides related services such as Explorer, Mining Pool, e-wallet, Cryptocurrency exchange and payment platform. Based on this, we are carrying out research to fuse and develop Blockchain's innovative technologies such as Distributed Ledger, Digital Value Movement, Decentralization, Smart Contract, Security Solution, Encryption Technology and Blockchain Authentication System. In addition, we are developing our own Blockchain Protocol. And we are building Blockchain integrated platform through collaboration with various Blockchain start-ups. Major Development History Instant payment system Instant payment system based on credit card slip Mobile Loan System Korea's first mobile loan system development Cryptocurrency Development Developed 16 kinds of Cryptocurrency including PAXCoin, Qcity, and Ventas Coin, etc. Point system VAN interworking point system development Payment system development Multi-purpose Payment System development Cryptocurrency Exchange Development Established Cryptocurrency Exchange in Korea and California, USA(VENTAS USA) Mobile CRM Page 06

8 Blockchainstory Co. Ltd Core Workforce Served as president of ACE International Korea and served as executive director of ARIA Hitech, an iris recognition technology company. After completing his master's degree in computer statistics at Seoul National University, he was a senior researcher at Samsung Electronics / Samsung Advanced Institute of Technology, CEO of Monade Technology Co., Ltd and managing director of Nara Telecom, and Developed Symbian API for Smartphone. After graduating in Electronics Engineering at Inha University, he served as senior researcher of LG Electronics, supervisor of Bluemobile Co. Ltd, and has been in the IT industry for 27 years. After graduating from the Electronic Engineering at Inha University, he served as a researcher at Samsung Electronics, managing Director of Strategic Planning at iriver Co., Ltd., President and CEO of Earlyadopter Co. Ltd., and worked in the IT industry for 28 years. Page 07

9 PAX is derived from the goddess of peace of Roman mythology, Latin means abundance, victory, peace. The PAX Foundation was founded to build the the foundation of a Smart country where all mankind can ultimately lead an affluent life. Blockchain technology will be very useful in industries such as Internet of Thing (IoT), payment system, medical, finance, shopping, gaming, energy, social media, real estate, entertainment and it is expected to contribute to improve the quality of human life Especially in the case of economically weak countries, it is expected that it will contribute greatly to improve the quality of life of the people by dramatically improving the underdeveloped financial system. Blockchainstory Co., Ltd has established the PAX Foundation to support the development of Blockchain industry in economically weak countries. The PAX Foundation has been working with Blockchain experts from all walks of life to support the development of Korea's blockchain industry and to support the economically weak countries efficiently. Page 08

10 Bong Kyu Park Chairman Park Bong-kyu has been running Korea CEO Summit that Korea's leading CEO Academy for 17 years, and has produced numerous leaders in politics, economics, academia and culture in Korea. And also he is the Chairman of the Korea Blockchain Summit, Korea's leading blockchain conference, contributes greatly to the development of Korea's blockchain industry. Ph D. In Seok Han He is the Honorary President of the University of Utah Asia campus and a professor at Hanyang University. He is helping to grow Korea's Blockchain Startups. Attorney Joo Tae Cho He is a specialist of Blockchain and Cryptocurrency and currently leads the Blockchain team at the Law Firm Dong-In. Page 09

11 PAX Foundation Core Members Ph D. Geol Yoo He is one of the representative architects of Korea and has been doing many activities such as designing Seoul City Hall. He is the CEO of IARC Architects and a professor at Kyungil University. In particular, he is pursuing the Smart City Project based on Blockchain technology. Ji Han Kim He graduated from Kwangwoon University, Electronics Engineering. As a Full Stack Developer with more than 20 years of experience, he has worked in a financial company computer programming engineer and has been involved in the development of various financial related projects. Security and various special programs, and currently serves as the research director of ETRA, a company specializing in the development of Blockchain technology. Page 10

12 The Blockchainstory Co., Ltd and the PAX Foundation first focused on Central and South American countries such as Venezuela, Colombia, Ecuador, Peru and Brazil. Although these countries have abundant natural resources, including crude oil, natural gas, and gold, they are in a position of economically weak countries due to unstable financial systems. Due to the sharp decline in real money value, the market is not performing its normal activities with very low self-reliance, and the national system also has many obstacles. As a result, the introduction of a new financial system is expected to be an urgent issue, and the introduction of Blockchain technology and Cryptocurrency is expected to overcome these obstacles. Accordingly, Blockchainstory Co., Ltd and PAX Foundation have been promoting the development of national public Cryptocurrency and various alternative Cryptocurrency in Central and South American countries. In addition, we have made a lot of preparations for the establishment of a cryptocurrency exchange system and a payment/settlement system so that cryptocurrencies can flow smoothly in the real economy, and we can provide a stable Blockchain Platform in Central and South America in Soon PAX Coin will be used by everyone in trade, import and export for the real economic environment of Venezuela. Page 11

13 Venezuela Language : Spanish Currency : Bolivar Population : 32 million Approximately GDP per capita : $ 6,684 ranked 83 Page 12

14 Ecuador Language : Spanish / Ketchikan Currency : US Doller Population : 17 million Approximately GDP per capita : $ 6,098 ranked 88 Page 13

15 Colombia Language : Spanish / Ketchikan Currency : Col $ (Colombian peso) Population : Approximately 49.5million GDP per capita : $ 6,273 ranked 86 Page 14

16 Peru Language : Español / Ketchu / Aymara Currency : Nuevos Soles (PEN) Population : Approximately 32.5 million GDP per capita : $ 6,762 ranked 82 Page 15

17 Central and South American countries have an environment where Blockchain technology is most useful. The introduction of Blockchain technology is urgently needed to improve the circulation structure of existing currencies and stabilize the national financial system. For example, in Venezuela, the financial system is not functioning normally due to the declining value of the existing Bolivar, so government has released the petroleum-based nation-wide Cryptocurrency Petro as a means to replace the existing currency. Ecuador is abandoning its existing currency Sucre and using the US $ as its official currency due to the functional paralysis of its currency in the late 1990s. While using the US dollar has helped to escape the economic crisis and stabilize prices, there have been many problems. According to the Central Bank of Ecuador (BCE), export competitiveness has weakened because of the lack of policy measures to adjust the exchange rate. There is also the problem of crime such as money laundering and counterfeit bills, and because of the hot and humid weather, the bills are quickly burned, and there is a cost problem for exchange bill. In particular, it costs $ 3 million per year to exchange dollars for the new one. So it is the Ecuadorian government's electronic money system (Sistema de Dinero Electrónico) that came out as a real compromise. This digital currency, known as effective, was released in December 2014 and was known as the world's first government-issued electronic currency, but Ecuadorian citizens are turning away new e-money due to the government's failed monetary policy. Page 16

18 The Blockchainstory Co., Ltd. and the PAX Foundation have publicized the superiority of Korea's Blockchain technology to these Central and South American countries and discussed various business cooperation. The current cooperation fields are: Development of Cryptocurrency that can act as a national key currency Development of 4 to 5 kinds of Cryptocurrency to support the function of key currency Establishment of the exchange system Development of payment and settlement system that can be used in real life Page 17

19 In order for Cryptocurrency to have a strong vitality and to build its own ecosystem, many participants must join and be able to actually utilize them in mining, trading and utilize it in real life. To be able to do this, the Blockchain The network must be maintained reliably, and many general participants should be able to actively participate in mining to have a valuable Cryptocurrency at a lower cost. PAXCoin has been developed to be the most suitable for the original purpose of encryption currency. PAXCoin is based on the most stable platform, Bitcoin, and has better performance than Litecoin (LTC) or Vertcoin (VTC) etc. PAXCoin has eliminated the concentration of Coin mining by large mining equipment manufacturers or multi-pool miners and has allowed miners to be equitably mined. This will provide opportunities for all miners to compete fairly, allowing more participants to benefit from mining. This will create a healthy PAXCoin ecosystem and allow more users to buy and sell things with PAXCoin, and making PAXCoin even more valuable. In addition, the commissions generated through the transaction have been distributed equally among the mining participants around the world, laying the foundation for more people to participate in mining. BEST PLATFORM Page 18

20 PAXCoin was developed based on the Bitcoin platform, which is securing best safety and security, and by maintaining compatibility with the Bitcoin API,it is easy to integrate into existing applications supported by Bitcoin. PAXCoin uses the proven Scrypt encryption method in LiteCoin and Dogecoin. Also, in order to reduce the long block formation time, which is a problem of Bitcoin, it extended the block size to 2 megabytes and implemented the transaction time to less than 1 minute. Transaction time 1 minute PAXCOIN block size 2 MB block size 1 MB Transaction time 1 minute Page 19

21 The total issue volume of PAXCoin is 8.8 billion and 25% of them were mined to 2.2 billion and the remaining 6.6 billion are designed to be mined over the next 100 years, Reward per block is 125ea. Mining has been developed to support the currently popular CPU and GPU mining methods and provides Mining Pool and Explorer also. Page 20

22 PC and Mobile Wallet(Native Wallet) PAXCoin's electronic wallet provides the Native Wallet that does not require administrator control based on the principle of "Do not allow the third party intervention", the basic philosophy of Cryptocurrency, and safely manage your assets in any case. PAX Coin : mobile e-wallet Page 21

23 PC and Mobile Wallet(Native Wallet) PAX Coin : Expoler Page 22

24 PC and Mobile Wallet(Native Wallet) Source code public To ensure the reliability of PAXCoin, November 14 / 2017, PAXCoin's Source the code was released on its most reliable source code public site, Github ( ). Source Code Core(QT) Download Expoler Mining pool Mobile E-wallet search PAX Wallet on Google Play store search Bcheck on itunes Page 23

25 Most coins, including Bitcoin, are a structure that can only be dominated by a small number of big sized (enterprise) miners. Because Bitcoin has adopted the SHA-256 encryption algorithm, which can be mined with expensive ASIC-based mining equipment, it is impossible to participate in some of the common and a good many miners' personal computers through computing power contribution. There is no solution for a malicious difficulty bomb that could paralyze the Blockchain Network and cause chaos, which could cause it to stop for up to 180 days, only some miners who have high-performance equipment are going to be mined. In the case of the late Altcoin, when someone begins to mining with high-performance mining equipment, not only a certain few will monopolize the mining rewards, but the blocks that need to be piled up for normal transaction are mined at a very high speed, garbage blocks are created that accumulate only empty blocks without data. In order to implement a stable and fair Blockchain Network, we focused on building a personal-friendly system. it was developed to be able to be mined by CPU of the general computer as well as GPU, and it adopts Scrypt encryption algorithm and cannot be mined with ASIC mounted equipment. PAXCoin has developed an algorithm that can disable malicious difficulty bombs and maintain a stable blockchain by greatly reducing difficulty when it exceeds three times the basic Block Time (180 seconds). If it find a block within 1/3 times (20 seconds) of the basic block time, it can greatly increase the difficulty and eliminate the situation where only high-performance mining equipment can be mined. This is an eco-friendly algorithm that prevents unnecessary power wastage and the waste of resources due to garbage block because there is a preventive effect by eliminating the income earned by large miners. Page 24

26 Based on Bitpay's Copay system Based on the proven wallet service of Bitpay Inc., a leader in bit coin pay systems, provides UI / UX that is safe and reflects the latest trends. Real My Wallet Unrelated to Server Hacking Since the wallet accessed by member ID / Password has a structure that can store the information in the server's database, it is impossible to completely safeguard against the risk of hacking through any route. In addition, the address created in the exchange's wallet is actually borrowed from the address of the exchange-owned wallet, not my address on the Blockchain and the stability of the exchange is directly related to the stability of my assets. On the other hand, our Mobile Wallet is a Client Type Wallet with information about where I installed it, and it is free from server hacking because it does not keep the password set by the user on the server. BIP-39 mnemonic / BIP-44 Standard/ Support Hangul Mnemonic BIP-39 is a proposal for improved Bitcoin performance on Bitcoin.org. It is the the encryption method of the wallet which is proposed and used in BIP (Bitcoin Improvement Proposals). The number of 2048 is generated by the encryption method that memories 12 words of the 2048 registered words in order with 12 words extracted. There is no chance of duplication because you can set the individual password again. By tracking and verifying the contents recorded on the actual Blockchain Network by using the derived expression proposed in BIP-44, it is possible to synchronize the same history with 12 Mnemonic Keyword on different platforms without being dependent on the installed device. Page 25

27 Copay implements a multibit wallet using p2sh addresses. It supports multiple wallets, each with its own configuration, such as 3-of-5 (3 required signatures from 5 participant peers) or 2-of-3. To create a multibit wallet shared between multiple participants, Copay requires the extended public keys of all the wallet participants. Those public keys are then incorporated into the wallet configuration and combined to generate a payment address where funds can be sent into the wallet. Conversely, each participant manages their own private key and that private key is never transmitted anywhere. To unlock a payment and spend the wallet's funds, a quorum of participant signatures must be collected and assembled in the transaction. The funds cannot be spent without at least the minimum number of signatures required by the wallet configuration. Once a transaction proposal is created, the proposal is distributed among the wallet participants for each to sign the transaction locally. Finally, when the transaction is signed, the last signing participant will broadcast the transaction to the Bitcoin network. Copay also implements BIP32to generate new addresses for peers. The public key that each participant contributes to the wallet is a BIP32 extended public key. As additional public keys are needed for wallet operations (to produce new addresses to receive payments into the wallet, for example) new public keys can be derived from the participants' original extended public keys. Once again, it's important to stress that each participant keeps their own private keys locally - private keys are not shared - and are used to sign transaction proposals to make payments from the shared wallet. Page 26

28 In cryptography, a script is a password-based key derivation function created by Colin Percival, originally for the Tars nap online backup service. The algorithm was specifically designed to make it costly to perform large-scale custom hardware attacks by requiring large amounts of memory. In 2016, the script algorithm was published by IETF as RFC A simplified version of script is used as a proof-of-work scheme by a number of cryptocurrencies, first implemented by an anonymous programmer called ArtForz in Tenebrix and followed by Fairbrix and Litecoin, Dogecoin, etc. soon after. Introduction A password-based key derivation function (password-based KDF) is generally designed to be computationally intensive so that it takes a relatively long time to compute (say on the order of several hundred milliseconds). Legitimate users only need to perform the function once per operation (e.g., authentication), and so the time required is negligible. However, a brute-force attack would likely need to perform the operation billions of times, at which point the time requirements become significant and, ideally, prohibitive. Previous password-based KDFs (such as the popular PBKDF2 from RSA Laboratories) have relatively low resource demands, meaning they do not require elaborate hardware or very much memory to perform. They are therefore easily and cheaply implemented in hardware (for instance on an ASIC or even an FPGA). This allows an attacker with sufficient resources to launch a large-scale parallel attack by building hundreds or even thousands of implementations of the algorithm in hardware and having each search a different subset of the key space. This divides the amount of time needed to complete a brute-force Page 27

29 Encryption Algorithm - Script attack by the number of implementations available, very possibly bringing it down to a reasonable time frame. The scrypt function is designed to hinder such attempts by raising the resource demands of the algorithm. Specifically, the algorithm is designed to use a large amount of memory compared to other password-based KDFs, making the size and the cost of a hardware implementation much more expensive, and therefore limiting the amount of parallelism an attacker can use, for a given amount of financial resources. Overview The large memory requirements of scrypt come from a large vector of pseudoramdom bit strings that are generated as part of the algorithm. Once the vector is generated, the elements of it are accessed in a pseudo-random order and combined to produce the derived key. A straightforward implementation would need to keep the entire vector in RAM so that it can be accessed as needed. Because the elements of the vector are generated algorithmically, each element could be generated on the fly as needed, only storing one element in memory at a time and therefore cutting the memory requirements significantly. However, the generation of each element is intended to be computationally expensive, and the elements are expected to be accessed many times throughout the execution of the function. Thus there is a significant trade-off in speed in order to get rid of the large memory requirements. Page 28

30 Encryption Algorithm - Script This sort of time-memory trade-off often exists in computer algorithms: speed can be increased at the cost of using more memory, or memory requirements decreased at the cost of performing more operations and taking longer. The idea behind the script is to deliberately make this trade-off costly in either direction. Thus an attacker could use an implementation that doesn't require many resources (and can, therefore, be massively parallelized with limited expense) but runs very slowly, or use an implementation that runs more quickly but has very large memory requirements and is therefore more expensive to parallelize. Page 29

31 Encryption Algorithm Script : Transaction Time : Platform : Block size : Reward per Block : # # 100 years after Source Code release Mining Method Supports CPU / GPU BTC : ASIC support Page 30

32 PAXCoin Allocation 2% 3% 20% 75% Internal Team { Locked for 5 Years} Strategic Partners { Loked for 3 Years } Private Sale & Public Sale / Sales Promotion Mining { Locked for 3 Years } Fund Allocation 5% 20% 40% 10% 10% 15% Operation Strategic Partners Reserve Business Development Marketing Research and Development Page 31

33 Signed an agreement to cooperate in Central andsouth America's Blockchain business (MITO Cooperation Co., Ltd) PAXCoin Source Code release Visit to Central and South America (MIPPCOEXIN / Constitutional Assembly) Discuss basic cooperation measures Submits Blockchain technology cooperation LOI (Letter of Intent) to MIPPCOEXIN Founded Cryptocurrency Exchange in US (VENTAS USA) Sponsoring Korea Blockchain Summit 2018 First working (Cooperation field consultation) Page 32

34 Sign cooperation and investment contract Second Working Korea (Cooperation and investment agreement) Source code release for National Public Cryptocurrency Includes e-wallet IOS, ANDROID, PC Explorer Mining Pool Open Beta test : Central and South America Venezuela FICTEC 2018 exhibition PAXCoin System Technology More Cryptocurrency exchange partnership establishment and announcement. Venezuela exchange Market listing Page 33

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