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Brightcoin, The New Type of Cryptocurrency

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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 hard¬¬to¬¬solve 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.

Technology¬rooted 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 value¬transfer 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.

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 end¬to¬end 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 production¬ready 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.

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Brightcoin, The New Type of Cryptocurrency. (2018, December 17). GradesFixer. Retrieved July 25, 2021, from https://gradesfixer.com/free-essay-examples/brightcoin-cryptocurrency/
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Brightcoin, The New Type of Cryptocurrency. [online]. Available at: <https://gradesfixer.com/free-essay-examples/brightcoin-cryptocurrency/> [Accessed 25 Jul. 2021].
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