Cryptocurrencies commonly referred to as “mining”. Bitcoin introduced

Cryptocurrencies
are digital systems (protocols) for exchanging value between participants on a
decentralised computer network. Bitcoin (BTC) is the most famous and widely
adopted cryptocurrency. Most cryptocurrencies use hard­­to­­solve cryptographic
puzzles called “Proof of Work” to secure the operation of the network. The
process of verifying the cryptographic solutions is commonly referred to as
“mining”. Bitcoin introduced a “reward” system, where the miner who solves a
block is awarded a small amount of the cryptocurrency. This reward compensates
the miner for contributing their hardware and electricity to the mining
network. The solution of a block is a vital operation to allow distributed
consensus and add the block to the blockchain.

Technology­rooted
movements like Bitcoin have demonstrated, through the power of the default,
consensus mechanisms and voluntary respect of the social contract that it is
possible to use the internet to make a decentralised value­transfer system,
shared across the world and virtually free to use. This system can be said to
be a very specialised version of a cryptographically secure, transactional-based
state machine.

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Introducing
Ethereum:

Ethereum is a
project which attempts to build the generalised technology; technology on which
all transaction based state machine concepts may be built. Moreover, it aims to
provide to the end-developer a tightly integrated end­to­end system for
building software on a hitherto unexplored compute paradigm in the mainstream:
a trustful object messaging compute framework. 

Ethereum has a
blockchain which contains:

•      
Asset Tokens (ETH or ETC
depending on which Ethereum!)

•      
A multitude of ‘user generated’
tokens that are created and managed through smart contracts

•      
Hashes stored in smart
contracts

What
is the difference between Cryptocurrency and BrightCoin?

Cryptocurrencies
like Bitcoin is based on technology called mining where as BrightCoin is a is a
new type of cryptocurrency (tokens), built on the basis of Ethereum technology.
This suggests creating financial value without any financial investments. It
offers maximum convenience, maximum security and involves no bureaucracy.
Anyone can review the contract of the currency via a link. The Enterprise
Partner Group at Microsoft is on the front lines with some of the largest
Ethereum technology customers.

 

Why
Ethereum?

Our choice of
Ethereum as a base protocol was dictated by the following: 

•      
Out of all blockchains, it has
the biggest and the most active developer community. Therefore if something
goes wrong with the consensus protocol, it has the highest chances of fast
recovery. It is being endorsed by some of the world’s largest financial software
vendors: IBM, Microsoft, Deloitte etc.

•      
It is the only production­ready
blockchain that supports smart contracts. Turing complete programming languages
bring us to the next level of freedom in regards to features and security
models that we can implement.

•      
Ethereum Virtual Machine (EVM),
the virtual machine that executes smart contracts is independent of Ethereum
public blockchain. All smart contract software that we develop is built using
Solidity and EVM, which can be decoupled from Ethereum public network and
plugged into any other consensus mechanism.

•      
It’s a merge of Tindermint, EVM
and public blockchain. If successful, it will be able to execute 10,000 of
smart contract transactions per second in a public blockchain. Although we are
utilising Proof-of-cooperation (PoC) at this moment in time we will move
swiftly to Proof of Stake (PoS) approach in the coming months.

 

What
is Proof-of-Cooperation (PoC)?

PoC is a
consensus algorithm which is required in the peer to peer network of a
cryptocurrency. Every node in such a network must obey the same set of rules to
maintain the networks integrity. All connected clients have the same data
available to verify the state of the network. In the case of BrightCoin a
limited number of trusted nodes (CVNs) collaborate to create the BrightCoin
block chain. They do this by completing the following tasks:

1.                 
By examining the past blocks
they determine what CVN should create the next block and publish their
conclusion on the network.

2.                 
They verify the validity and
integrity of the last block, its transactions and if it was indeed the
respective CVNs turn. The resulting information from point 1. and 2. are
digitally signed and sent to all other nodes.

3.                 
These signatures are collected
by the CVN that creates the next block. They are the actual consensus proof and
thus the proof of cooperation of all the CVNs. This bundle of signatures is
stored in the blockchain together with the new block, which is only valid if it
contains enough signatures according to the algorithm.

4.                 
When the new block is
completely built it is signed by the creating CVN and sent to the network.

Benefits

On traditional
server architectures, every application has to set up its own servers that run
their own code in isolated silos, making sharing of data hard.

If a single app
is compromised or goes offline, many users and other apps are affected.

On a blockchain,
anyone can set up a node that replicates the necessary data for all nodes to
reach an agreement and be compensated by users and app developers.

This allows user
data to remain private and apps to be decentralised like the Internet was
supposed to work.

The downside to
this approach is that the hashing algorithm (Scrypt-Jane) used gradually
increases the demand in RAM (a computer’s processing power). This method is
known as Proof of Work, and in essence it meant the more powerful a computer
you had, the more digital currency you could mine.

But not any
longer. BrightCoin will move to a Proof of Stake model (PoS) which, rather than
rewarding BrightCoin
investors for the power their computer lends to the network, it instead rewards
BrightCoin users based on the number of BrightCoin’s they currently hold and
‘stake.’ Essentially this means the more BrightCoin’s you have, the more you
will earn.

This method is
far less demanding on computer power and in practical terms that means the
consumer and small business owner does not need to invest in an expensive and
powerful machine to mine BrightCoin. This makes BrightCoin mining available to
a wider mass market audience as intended.

 

Who
will use BrightCoin?

Any individual
who has access to a smart phone or computer will be able to transact
BrightCoin.

In the past over
cryptocurrencies have relied on word of mouth and the technical knowhow of the
‘cryptocurrency’ community to establish presence and traction. BrightCoin is
different. Through the creation of a sporting event where the dominant
transactional nature for participation is with the BrightCoin then this will
ensure a faster uptake to the currencies than with previous coins.  For example at one of the sporting events the
recreation of the ‘Rumble in the Jungle’ event in DR Congo later this year, it
is anticipated that over 500,000 people would be exposed to BrightCoin’s use
through merchant services and ticket sales. The ‘genius’ of this approach will
also add stability to the exchange price as well as faster uptake than previous
coins.

However,
communicating the opportunity presented by digital currencies is still in its
early stages. LEOxChange conducted a YouGov survey in 2015 that found almost
50% of small to medium sized enterprises who trade internationally said
transaction fees were a key concern; and 43% who transacted using debit or
credit cards were also worried about the associated costs. Yet 85% said they
would consider using a digital currency. BrightCoin wants to capitalise on that
mind-set.

 

 

How
does it work?

A mathematical
computer-based process called mining generates BrightCoins. The mining itself
is a very complex mathematical problem, which is solved by a computer executing
difficult number-crunching tasks.

The difficulty of
the mining increases over time making it harder to obtain the coins. This acts
as a deflationary brake on the currency, therefore creating stability in the
price.  This is the opposite of a
conventional paper currency which decreases in value each time a Government
prints more.

BrightCoin was
designed by experts using the latest technology and techniques in
cryptocurrency and blockchain. BrightCoin is at the cutting edge in digital
currency, designed for use by the world’s entrepreneurs as well as private
individuals.

The total number
of BrightCoin is finite. There are only 2 billion BrightCoins in the network
that will be mined over the next 100 years. This gives leverage, robustness and
long-term sustainability to BrightCoin as a digital currency.

Furthermore, BrightCoin pre-mined 50 million
coins ahead of the exchange going live. This was