ATBCoin WhitePapper en
ATBCoin WhitePapper en
ATBCoin WhitePapper en
Contents
1. Introduction
2. Key technologies
2.1 Proof-of-stake
2.1.1 Comparison of POW and DPOS
2.1.2 Encryption
2.1.3 Blocks and block creation
2.1.4 Coins and forging process
2.1.5 Nodes
2.1.6 Transactions: fees and processing time
2.2 SegWit
2.2.1 Overview
2.2.2 Security
2.2.3 Block size and network capacity
2.2.4 Malleability and Smart Contracts
2.2.5 Lightning Network
3. Key features
3.1 Wallet
3.2 Cloud mining
3.3 Low energy consumption
3.4 Agility and cost-efficiency
5. Micropayments
5.1 Pay-As-You-Go
5.1.1 Advantages
5.1.2 Disadvantages
5.2 Prepay
5.2.1 Advantages
5.2.2 Disadvantages
5.3 Postpay
5.3.1 Advantages
5.3.2 Disadvantages
5.4 Future of micropayments
5.5 ATB Coin: solution for micropayments
6.Conclusion
WHITEPAPER
Introduction
1. Introduction
“Imagine a technology that could preserve our freedom to choose for
ourselves and our families, to express these choices in the world, and to
control our own destiny, no matter where we lived or were born. What new
tools and new jobs could we create with those capabilities? What new
business and services? How should we think about the opportunities? The
answers were right in front of us, compliments of Satoshi Nakamoto.”
From Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World
by Don Tapscott and Alex Tapscott2
https://www.amazon.com/Blockchain-Revolution-Technology-Changing-Business/dp/1101980133
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Introduction
The ATB Coin is one of such new offerings. Its state of the art solution is built
around most advanced technological capabilities of SegWit & Lightning
Network to deliver blazing fast, secure and near-zero cost payments to anyone
in the world. It is designed to overcome well-known inefficiencies within
government central banks and other crypto currencies. It induces transactions
that are fully secure, private and anonymous.
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Key technologies
2. Key technologies
Blockchain technology is the foundation of crypto currency and is the next
“industrial revolution.” It is a decentralized ledger system with enhanced
security, is simple in design and inexpensive to operate. This system allows for
transactions to be done with complete accuracy because it is a fusion of
computer peer-to-peer (p2p) technology, cryptography and database
systems.
Blockchain‘s decentralized and p2p nature means that the ledger eliminates
the need for a data-center and a disaster recovery center (DRC). The result is
that the ledger will always be up and running.
ATB Coin incorporates the best features of POS-based crypto currencies. ATB
Coin's users can achieve better decentralization, transparency, privacy, and
cost-efficiency in their financials. Low energy consumption, ease of use, and
better network participation incentives work in line with doubled network
capacity, smart contracts, lightweight wallet, and cloud mining to provide
people from all over the world a worthwhile, stable, and more reliable way of
handling their financial needs.
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Proof-of-stake / POW and DPOS Comparison
2.1. Proof-of-stake
The first crypto currencies based on the Proof-of-stake algorithm, or POS,
appeared in 2012 with Peercoin, followed by Emercoin in 2013, and NXT and
BlackCoin in 2014. The primary objective of the cryptocurrency blockchain
algorithm is to achieve the distributed consensus within the network that is
secured by a significant number of nodes.
http://www.coindesk.com/ethereums-big-switch-the-new-roadmap-to-proof-of-stake/
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POW and DPOS Comparison
If the data in the last block is false, then distributed consensus among active
members of the network will not be reached, and therefore this block will not
be signed, avoiding the possibility of various kinds of attacks that jeopardize
the system integrity or allows for double spending.
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POW and DPOS Comparison/ Encryption
At first sight, this mechanism may look more democratic and transparent, but
it also makes the system complicated, potentially less secure due to the
human factor involved, and decreases the user participation rate, in this way
causing centralization concerns.
2.1.2. Encryption
ATB Coin uses several cryptographic algorithms for purposes of ensuring the
blockchain integrity and safety of its users’ coins.
The SHA-256 hash function is used to turn input data of any size in the
blockchain into a string of 32 bytes that is impossible to reverse or predict. In
the case of an attack upon which some or all of such input data is changed,
the hash associated with this data will be changed aswell, making it
impossible to create a different block of data with the same hash.
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Blocks and block creation / Coins and forging process
If the active network node—meaning that it is a user who keeps their wallet
open—possesses a certain amount of coins, it will be eligible to enter the
block creation process by sending the coins to itself and proving their
ownership.
Selection of the creator of the next valid block is made by using deterministic
randomization formulas that take both the stake size and the lowest hash
value into account, therefore avoiding centralization of the cryptocurrency by
not letting the wealthiest members of the network infinitely accumulate
their capital.
2.1.4. Coins and forging process
Based on the POS algorithm, an active node of the blockchain network in
ATB Coin is randomly selected. The choice is based on their stake size. The
appropriate wallet will receive a daily reward or ROI for the contribution to
achieving the distributed consensus.
To fight the inflation and the market glut, two years after the ICO and
creation of the genesis block the daily ROI will decrease twofold. The
reduction in the reward by two times will be repeated every two years until
the daily compensation rate reaches almost zero.
As a POS cryptocurrency, ATB Coin will start with an open ICO. During the
ICO anyone will be able to purchase ATB Coin tokens and also can receive a
certain number of ATB Coins as a bonus. The total number of coins that are
offered to the public during the ICO equals a number of coins in the genesis
block, which is 50 000 000 ATB.
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Nodes / Transactions: fees and processing time
2.1.5. Nodes
The POS algorithm doesn’t require massive amounts of electricity wasted on
hashing blocks that are used to store a large amount of data. The nodes in
ATB Coin are lightweight and use SPV, standing for the Simplified Payment
Verification mode, which allows users to download only a part of the
blockchain relevant to their node instead of downloading the whole copy of
blockchain.
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Transactions: fees and processing time / SegWit
When it comes to the transaction fees, they are estimated to be at least ten
times lower than those in cryptocurrencies powered by the POW algorithm.
Such a significant decrease in the transaction costs is possible thanks to a
lack of physical mining of coins in POS algorithm and well-balanced
distributions of coins among all active members of the network.
2.2. SegWit
Since more and more people are currently using crypto currencies for their
everyday financial needs, the overall number of transactions grows very
rapidly. SegWit is created to improve blockchain scalability by increasing the
block size limit thus decreasing the transaction processing time and fees.
The SegWit technology also enables execution of Smart Contracts as well as
of side chain solutions like Lightning Network mentioned above.
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Overview / Security
2.2.1. Overview
SegWit allows for writing up to 4MB into a single block. The scriptSig data is
moved out of the transactions and blockchain, both enhancing the network
performance and preventing any possibility of malleability attacks.
Apart from this, SegWit provides a broad range of other important features
like increased P2SH security (P2SH encryption key length is 256 bits now),
linear scaling of sighash operations, reducing UTXO growth, overall efficiency
gains, and so on.
2.2.2. Security
All blockchain networks let their users perform a kind of escrow transactions
called multisig. Multi-signature transactions require up to five signatures from
different parties to sign a transaction.
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Block size and network capacity
Also, an increased block limit size that is introduced in SegWit improves the
overall security of the network and therefore allows for a seamless and
safe implementation of Smart Contracts and a broad range of second layer
solutions.
Since this limit leads to slower transaction approval time and higher
transaction fees within a busy blockchain network, leading to lower overall
performance, SegWit increases this limit to up to 4MB per block by
excluding witness data, scriptSig and scriptPubKey fields with the
signature data that occupies 60% of the transaction size, out of the
transaction.
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Block size and network capacity / Malleability and Smart Contracts/ Lightning Network
With the new block weight algorithm that SegWit proposes, all non-witness
data in a block amounts 4 weight units per block and the witness data takes
1 weight unit per block in the same block. This constitutes a 4x increase in
the network capacity and performance.
When a transaction is sent over the blockchain network, any node that
processes it can make minor changes to the signature data in the txid of
this transaction. These small changes cannot influence the input and
output transaction information meaning that it still will be sent and
received by the right people but it can make the txid information
unreliable, making it more difficult to trace it within the blockchain.
https://cointelegraph.com/news/the-ongoing-bitcoin-malleability-attack
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Key features
3.Key features
Apart from the features peculiar to the Proof-of-Stake algorithm, ATB Coin
is beefed up with SegWit, and Lightning Network protocols. On top of that,
ATB Coin boasts a wide array of features such as user-friendly and
lightweight wallets, cloud mining availability, forging incentives, and so
much more. We've implemented this all to make our product convenient for
everyone regardless of their financial needs.
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Wallet / Cloud mining
3.1. Wallet
ATB Coin comes with an array of wallets for desktop, iOS, Android, and web
applications. ATB Wallets provide all necessary features for the comfortable
daily use of the cryptocurrency and do not require much space on your PC or
smartphone.
The outstanding advantage of the ATB Wallet is that it requires a very tiny
amount of space for its installation compared to the Bitcoin Core and
therefore can be used by anyone, anywhere, and anytime. ATB Coin is
designed over a Proof-of-stake algorithm, which makes full node wallets a
thing of the past.
The cloud mining services will be provided by ATB Coin and several other
trusted third-party companies so that the cryptocurrency members can enjoy
a wide selection of payment options and service conditions tailored especially
to their needs
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Low energy consumption / Agility and cost-efficiency
A rapid growth of any POW based crypto currency will undoubtedly lead to
a sustainable increase in electricity consumption
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Risks and risk management
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Security: attacks and hard forks / Inflation
A most devastating attack can be performed when one of the nodes of the
blockchain possesses 51% or more computing power of the whole network
and therefore gains complete control over it. Such attacks may theoretically
take place in the POW-based cryptocurrencies only. In such a case the evildoer
needs to purchase some serious mining equipment with the total cost of more
than $15 billion. That sounds like a lot, but in fact, it is doable.
A 51% attack is not realistic in ATB Coin network for the two following
reasons:
4.2. Inflation
Due to the fundamentals of the POS algorithm that proposes a daily
reward in exchange for the user’s cooperation in achieving the distributed
consensus, all POS-based cryptocurrencies usually face inflation issues.
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Inflation / Centralization
Inflation risks in ATB Coin are minimal thanks to the relatively small amount
of coins in the genesis block. ATB Coin's genesis block contains only 50 million
in coins, and the reward will be decreasing by 50 percent every two years.
That will ensure a stable workflow for the new users of ATB Coin in the years
to come.
4.3. Centralization
Another issue for all crypto currencies irrespective of whether they are based
on POW, POS, or DPOS algorithm is centralization concerns.
Since it’s both illogical and too costly to perform a 51% attack for a POS-
based cryptocurrency, the centralization of the network in ATB Coin is very
unlikely.
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Micropayments
5. Micropayments
A micropayment is traditionally defined as an online or mobile, real-time or
deferred, financial transaction below $12 amount. Micropayment is a small
online payment that is usually not feasible through traditional money
transfer mechanisms like credit cards due to the fees being a significant
percentage of the transaction.
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Pay-As-You-Go / Advantages / Disadvantages
5.1 Pay-As-You-Go
With the pay-as-you-go model, Internet users are charged on the fly for
purchases that they would like to make. This means that as soon as the user
wants to purchase access to an article or some other virtual good, their credit
card will be charged for the amount of the transaction.
5.1.1 Advantages
Allows the user a pure a la carte experience. They only purchase what they
want, and they pay when they want to.
The merchant can market low cost virtual goods to a user who may otherwise
balk at paying a higher price for bulk access.
When credit card information is stored with the merchant, the low price of
individual micropayments may encourage the user to partake in “impulse”
buying, similar to how retailers put low cost candy bars, magazines, etc. in
check out lanes.
5.1.2 Disadvantages
Allows the user a pure a la carte experience. They only purchase what they
want, and they pay when they want to.
The merchant can market low cost virtual goods to a user who may otherwise
balk at paying a higher price for bulk access.
When credit card information is stored with the merchant, the low price of
individual micropayments may encourage the user to partake in “impulse”
buying, similar to how retailers put low cost candy bars, magazines, etc. in
check out lanes.
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Prepay / Advantages / Disadvantages
5.2 Prepay
With the prepay model, a customer authorizes the merchant to charge their
card for a certain amount, which is usually converted into a virtual currency.
That currency can then be used to purchase whatever that particular
merchant is offering online. An alternate form of prepaying eliminates the
online transaction and instead places gift cards in brick and mortar stores.
Customers can purchase these cards and enter unique codes on the back of
the card online to have their account credited for the amount they paid.
Prepay can also take the form of subscription models where users pay up
front for monthly or yearly access to certain content, such as newspapers
and premium content in online games.
5.2.1 Advantages
Paying a large sum up front makes the transaction worth it in terms of the
processing fees that get tacked on.
If physical gift cards are available, users can choose how to pay, which is
especially useful when the user does not have a credit or debit card to use
online.
5.2.2 Disadvantages
Merchants need to maintain a system that tracks how much credit every user
has on hand.
If the merchant has gift cards in brick and mortar stores, they must pay to
distribute them.
Depending on the prepaid amounts available, users may not easily dish out
$10, $25, or $50 for a virtual credit as they would on a pay-as-you-go model.
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Postpay/ Advantages / Disadvantages
5.3 Postpay
In the postpay model, instead of paying up front or paying on the fly, users
instead pay after they decide to make a purchase, similar to more traditional
online shopping models. Postpay is an effective alternative to pay-as-you-go
due to microtransactions being aggregated rather than charged individually.
What usually happens is that a merchant will track a user's individual
microtransactions, and then after a certain amount of time where no more
transactions are made, the merchant will aggregate the individual purchases
and bill them as one amount.
Similar to prepay, postpay can also adopt a subscription model where users
gain unlimited access to certain features and are then billed a standard fee at
the end of the month. This is less common, however, than prepay
subscription models.
5.3.1 Advantages
Users do not need to pony up a larger sum of money to start making
purchases. The a la carte experience is preserved.
5.3.2 Disadvantages
Merchants need to create a system that tracks purchases and then attempts
to aggregate them thoughtfully to reduce transaction fees.
Users can still purchase only one item, say a 99-cent song, and then not
purchase anything else, leaving the merchant no choice but to process the
microtransaction by itself.
This does not allow for users without a credit or debit card to make a
purchase, as users can with prepay gift cards.
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Future of micropayments / ATB Coin: Solution for micropayments
Bitcoin fees make it hard to send fractions of a dollar as value, but this is still
possible with ATB Coin. The basic problem with micropayments is that it
requires a considerable fee to the third party (the centralized service) and
hence makes such transactions effectively expensive. Bitcoins and other
crypto currencies charge minimal transaction fees (it could even be free in
some cases), and that doesn't depend on the number of transactions. Hence
it offers a viable alternative for such transactions. The process involved is
much simpler and definitely avoids the headache of currency conversions.
In the world of the Internet of Things, the use of ATB Coin can reduce
transaction costs and limitations of cash and card payments. This includes
any service or machine that relies on automated payment such as bus ticket
booths, vending machines, car rentals etc. With ATB Coin we have a truly
autonomous environment where two machines can interact and exchange
funds without human factor involved. For example, your car may have a
digital wallet that can be used to pay for gas, tolls, or any other automated
services.
The electronic payment space needs some innovation, and perhaps the time
is right for a digital currency such as ATB coin to disrupt the market and
bring the next wave of technology and startups.
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Conclusion
6. Conclusion
This whitepaper has been prepared to provide the most detailed information
about ATB Coin concerning its key characteristics and features, the most
important technologies used in its development, and risks associated with it.
At the same time, the latest technologies that ATB Coin is powered on like
SegWit and Lightning Network and the proprietary features like cloud mining
and forging incentives make it a truly agile, cost- efficient, and user-friendly
tool that can satisfy the needs for financial freedom of any person
irrespective of their place of birth, technical competence, or social status.
Despite the potential of micropayment systems very few systems have been
successful as their acceptance is limited to certain communities such as
specific online games or social networks.
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www.atbcoin.com Good for Business
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