Crypto | Bitcore (BTX) Mobile Size Whitepaper
Established on 24th of April 2017, Bitcore aims to be the #1 solution for direct payments. Bitcore has one of the lowest transaction fees on the market while possibly providing the best on-chain scaling solution in the entire crypto-sphere.
Bitcore is a cryptocurrency designed to make the original Bitcoin vision future-proof.
Bitcore maintains Bitcoin’s central advantages – but the Bitcore founding team is taking the original Bitcoin technology boldly into the future. Bitcore, originally a hybrid fork of Bitcoin, features a proof-of-work consensus mechanism and implements all of the BIPs (Bitcoin Improvement Proposals) of the Bitcoin protocol.
Through its lean structure and active community, Bitcore is more agile than other coins in implementing necessary innovations. On the Bitcore blockchain, SegWit (Segregated Witness) was activated a full 4.5 months earlier than on the Bitcoin blockchain, making it fully compatible to the Lightning Network.
Most importantly, Bitcore implements true decentralization and user empowerment:
- Bitcore‘s ASIC-resistant mining algorithm restores community participation and counters centralization effects in mining.
- Bitcore’s application of Bloom filters significantly reduces the required storage to run a full blockchain node, enabling more individual users to become fully empowered Bitcore participants via SPV/light wallets.
- Bitcore’s novel airdrop process resulted in a decidedly more equal distribution of the coins, encouraging Bitcore’s use as a means of payment. The Bitcore community‘s decision to forgo an Initial Coin Offering (ICO) has kept speculators at bay.
- Bitcore is faster than Bitcoin, faster than even Paypal, enabling it to become a real everyday payment option, thanks to its timely implementation of SegWit and other design decisions. On the Lightning Network, a theoretically unlimited number of offline transactions are supported. Bitcore’s low fees of around $0.003 USD per transaction make it even more suitable for everyday use and render micropayments feasible.
- Bitcore is an open source project: Collaboratively produced, shared freely, published
transparently, and developed to be a community good rather than the property or business of a single company or person.
In a nutshell:
Bitcore is the original community-driven, peer-to-peer digital payment solution, adapted to the needs of tomorrow. If Satoshi Nakamoto had known in 2008 what experience has taught the crypto community in the past 10 years, Bitcore is what Bitcoin iv had looked like from the very start. Today, Bitcore offers everyone the opportunity to be a part of Satoshi’s original vision, fresh and unstained by questionable economic developments of the past.
“A purely peer-to-peer version of electronic cash would allow online payments to be
sent directly from one party to another without going through a financial institution.
Digital signatures provide part of the solution, but the main benefits are lost if a
trusted third party is still required to prevent double-spending. We propose a solution
to the double-spending problem using a peer-to-peer network.”
-- Satoshi Nakamoto, 2008
It was this statement that gave birth to the modern concept of cryptocurrency and indeed decentralized finance. Until Satoshi Nakamoto designed the original Bitcoin concept, practically all of world finance relied on central authorities, or more accurately: Central points of failure. The safety of everyone’s money was contingent upon the security and economic health of the bank or financial institution in possession of the funds.
Every case of security breach, misconduct or bankruptcy in the financial world meant that those who relied on those institutions to protect their savings would potentially be left without the necessary funds.
Without needing to invent any kind of previously non-existing technology, Satoshi Nakamoto combined existing paradigms in a novel way to solve this problem: A distributed ledger secured by proof of work would henceforth provide a framework in which participants would be forced to remain honest, without intervention – and the potential of manipulation - by any kind of central authority.The incentivized process called “mining” was and is central to the functioning of this system. A set of rules made sure that the system could essentially operate autonomously and sustainably without any directive from “leaders” or indeed any kind of individual or single entity. This was done on purpose in order to maintain the principle of decentralization: If any one company were responsible for ensuring a
smooth operation of the system, then that entity would represent a potential single point of failure - which would defeat the purpose of the protocol.
In this whitepaper, we will take a closer look at the features of the original Bitcoin protocol – and the ways in which Bitcore has preserved as well as advanced and improved Bitcoin’s original characteristics.
This will serve to demonstrate why and how the Bitcore protocol is a powerful alternative cryptocurrency to help facilitate some of the use cases for cryptocurrency that have not yet been attainable by currently existing crypto technology.
2.1 Bitcore as Open Source
Both Bitcoin and Bitcore are genuinely open source endeavours. The Bitcore community feels that this is in accordance with the decentralized, participative and community-focused spirit of Bitcore.
In particular, the development of Bitcore was only possible because of Bitcoin’s compliance with the following characteristics of open source, as stipulated by The Open Source Initiative - and in turn, the Bitcore codebase is subject to the same conditions and degrees of freedom:
1. Free Redistribution
2. Inclusion of source code
3. Permission of derived works and modifications and their distribution
4. Integrity of author’s source code
5. No discrimination against persons or groups
6. No discrimination against fields of endeavor
7. Applicability of license without need for execution of another license
8. License not specific to a product
9. No restrictions of other software through license
10. Technology neutrality of license
By adhering to these standards of open source software, Bitcore enables the open source community to access, modify and further develop its code, without any discrimination regarding identity, background, intention or industry.
2.2 Distribution: One-to-One Claiming, Hybrid Fork and Airdrop
Classical Bitcoin forks copy the Bitcoin blockchain at a specific block and piont in time. Bitcore, however, has created a new coin with an empty blockchain, with the explicit purpose of separating Bitcore from Bitcoin and establishing it as a separate entity.
16.2 million Bitcore coins (BTX) were pre-mined (equivalent to the number of existing Bitcoin at the moment of Bitcore blockchain creation) and thus ready for community distribution.
The distribution of BTX to its prospective user community took place in three phases:
- One-to-one claiming
- Hybrid fork
2.2.1 One-to-One Claiming
During the first six months of Bitcore’s existence, from April 2017 to November 2017, Bitcoin users were able to exchange their Bitcoin (BTC) to Bitcore (BTX) in a 1:1 ratio.
This exchange was implemented using a database and Bitcoin’s signmessage function.
Of 16.2 million pre-mined BTX, 590,000 were claimed in this first distribution step. The opportunity for 1:1 claiming ended on November 2, 2017.
2.2.2 Hybrid Fork
On November 2, 2017, at block height #492,820 of the Bitcoin protocol, a snapshot of the Bitcoin blockchain was taken. The distribution of the remaining 15.8 million pre-mined BTX continued in a manner different from the 1:1 claiming in the first phase.
All addresses on the Bitcore blockchain whose corresponding addresses on the Bitcoin Blockchain were holding funds of at least 0.01 BTC were filled with the amount of 50% in BTX, relative to the amount of BTC held in the respective address. The funding ratio, in other words, was 0.5 BTX to 1.0 BTC.
In the following days, approximately 5 million transactions were processed, and roughly 8 million BTX distributed among all eligible addresses. This was not only a practical way to distribute BTX, but has also served to demonstrate that the BTX blockchain is capable of processing a large number of transactions in a relatively short amount of time.
Thus, about 8 million of the initial 16 million pre-mined BTX were distributed to the community. Of the remaining 8 million, 10% were stored by the Bitcore team for the purposes of future technical development.
90% of the remaining 8 million BTX were finally distributed in a series of weekly airdrops, according to a differential schedule. In the initial airdrop, a 25% bonus of the user’s BTX wallet balance was distributed. Consequently, further airdrops were conducted according to the following schedule (with percentage of user’s wallet
+5% every Monday in January 2018
+6% every Monday in February 2018
+7% every Monday in March 2018
+8% every Monday in April 2018
+9% every Monday in May 2018
With this last phase, the distribution of pre-mined BTX was completed.
2.2.4 Airdrop Example
An example will further illustrate the process:
Alice is holding 20 Bitcore (BTX) in her wallet. She has registered her wallet for an airdrop in January, when the bonus percentage was 5%. She is therefore eligible to receive 5% of her total BTX balance in January’s airdrop:
20 BTX * 5% = 1 BTX
Thus, Alice receives one additional BTX coin and carries a total of 21 BTX in her wallet after the January airdrop.
2.2.5 Why Hybrid Fork and Airdrop?
The crucial difference between this model and the typical hard fork model in other models is the following: Rather than distributing an identical number of all the outstanding coins that had been issued on the blockchain at the moment of the snapshot, only 50% of BTX coins were distributed in this manner. The resulting 50% were distributed to active BTX users only. This way, the Bitcore team made sure that passive holders of massive amounts of Bitcoin, so-called whales, would not automatically become „Bitcore whales“ as well, and thus skew the balance of power within the Bitcore community, as well as limit the circulating supply of Bitcore in a way that would hurt future operations of the ecosystem. Instead, the Bitcore team managed to achieve a more equal distribution of coins than previous Bitcoin forks, in accordance with the decentralized and participative ideals of the Bitcore community.
2.3 No ICO
As a hybrid fork, Bitcore’s launch was not designed as or funded by an initial coin offering (ICO).
This was a conscious decision by the Bitcore community intended to foster equal opportunities and participation among potential BTX users around the world. As trends and developments in the crypto sphere have shown over the past years, ICOs attract speculators, thus increasing volatility of the underlying cryptocurrency, and diminishing its everyday usefulness. Furthermore, ICOs lead to an influx of wealthy private investors who „buy“ their way into disproportionate power and influence over crypto
communities. Last but not least, different regulatory frameworks apply to ICOs whose teams are based in different countries, and many of them explicitly preclude citizens of certain countries from participating in ICOs.
These arbitrary limitations are not acceptable to the Bitcore community. We strive to create a useful crypto ecosystem that is equally accessible to anyone interested, regardless of location and nationality.
In order to be as independent from local regulations as practically possible, we have chosen to operate as a non-profit consortium of interested individuals. Membership in the founding team and participation in the Bitcore community are solely dependent on individual levels of skill, interest and commitment, not arbitrary geographical borders.
Bitcore comes with key innovations that render it particularly well-suited as a day-to-day means of payment both in personal and business contexts. Each of these innovations, as well as their role in Bitcore’s increased efficiency and usability, will be detailed in this section.
For a quick overview, the key technical specifications of Bitcore are summarized below:
• Launched April 24, 2017
• Max supply of 21 million coins
• Blocksize 10MB (20MB SegWit)
• 2.5 min average blocktime
• Current blockchain size approximately 950 MB
• Timetravel10 (GPU) mining algorithm
• SegWit and Bloom online
• Smooth diff6415 difficulty retargeting algorithm
• Fair distribution: BTC claiming and airdrops
3.1 Coin Supply
The maximum number of coins that will be produced on the Bitcore platform is fixed at 21 million. This number was chosen deliberately to match the total supply of coins on the Bitcoin protocol at the moment.
This limited coin supply is the result of Bitcoin’s halving algorithm that reduces the coinbase reward for miners by 50% every 210,000 blocks, reducing the number of newly mined coins about every four years, until it reaches approximately zero in the year 2140.
Bitcore’s block reward was identical to the Bitcoin block reward for the first 10,000 blocks: 12.5 BTX per block, with a block time of 10 minutes. Subsequently, an update decreased the reward to 3.125 BTX per block with an average block time of 2.5 minutes. Bitcore applies the same halving algorithm to its coinbase rewards, but in intervals of 840,000 blocks. Thus, the Bitcore supply is limited in the same way as the Bitcoin supply.
The chart below shows Bitcore’s block reward halving:
This halving of the reward in fixed intervals of blocks leads to a pre-determined final number of coins, a concept named controlled supply.
3.2 Blockchain and Algorithms
Bitcore uses a proof-of-work algorithm just like Bitcoin’s. However, the adjustment of difficulty is solved in an innovative manner, by employing the Core Shield 6415 difficulty retargeting algorithm as described below.
Another crucial difference to Bitcoin are Bitcoin’s reduced block times, a quarter of Bitcoin’s block times, which are making Bitcore both more usable and more secure, as detailed further below in this section. At the same time, the block size is significantly larger, again contributing to higher transaction speed and better usability.
Finally, the activation of SegWit - 4.5 months earlier than on the Bitcoin blockchain - and Lightning Network compatibility make Bitcore a means of payment ideally suited to the needs of tomorrow’s individuals and businesses.
3.2.1 Difficulty Retargeting with Core Shield 6415
In cryptocurrencies based on proof-of-work, difficulty retargeting - in other words, adjusting the difficulty with which miners may find the next block - serves the purpose of ensuring consistent block times. Without difficulty retargeting, block times would decrease with increasing number of miners active on the blockchain at a given time as this would increase the likelihood that the correct hashing value is discovered by any among this large number of miners.
Therefore, in difficulty retargeting, the difficulty level of discovering the next block is raised when many miners are active on the protocol, and is decreased when fewer miners are active.
In Bitcoin, the difficulty level is adjusted every 2016 blocks. With a block time of approximately 10 minutes, this is equivalent to an adjustment about once every two weeks - a rather sluggish rate that is not responsive to short-term increases or decreases in mining activity. Such short-term mining activity fluctuations, however, are frequently observed when miners switch back and forth between Bitcoin and
its forks, looking for the best ratio between mining effort (determined by difficulty) and reward.
In order to solve this challenge, Bitcore has replaced Bitcoin’s difficulty retargeting method with a novel algorithm, named Core Shield 6415.
In Core Shield 64_15, the block difficulty is re-adjusted every 64 blocks. With a Bitcore block time of only 2.5 minutes, difficulty readjustment is performed every 2 hours and 40 minutes. This makes Bitcore’s block difficulty more responsive than Bitcoin’s, but at the same time, overly turbulent short-term adjustments are avoided: The difficulty will not be changed by more than 15% in each re-adjustment, leading to gradual rather than dramatic changes.
Bitcore’s difficulty retargeting algorithm is therefore not only more efficient, but leads to more predictable block times and further secures the network against double-spending attacks that are more likely to succeed in times of disproportionately low hashing difficulty.
3.2.2 Shorter Block Times
Bitcore’s protocol is designed to yield a block time of 2.5 minutes – a quarter of Bitcoin’s 10 minute block times.
Shorter block times are advantageous for a number of different reasons.
The first is that they allow for faster confirmations. Every transaction on the blockchain starts its existence as an unconfirmed transaction, which will eventually picked up by miners competing to create the next block. Every time a valid block is created on the blockchain, the transactions it contains are considered to be confirmed.
As several current valid blocks with different confirmed transactions may exist on the blockchain in parallel, only the creation of further blocks following the current block proves that a transaction has actually become part of the active chain, i.e., the longest currently existing chain. This policy is part of the proof-of-work consensus mechanism to impede double-spending attacks by malicious nodes: The amount of work (and thus energy) to create a single block with a fraudulent transaction may still be manageable for an attacker. However, this fraudulent transaction will not be part of the active
blockchain in the long run unless the attacker can spend even significantly more work to create a sufficient number of blocks afterwards in order for this chain to become the longest chain.
For this reason, many merchants and other entities accepting crypto payments will wait for more than one valid block until they accept a certain transaction as confirmed. In general, payments of larger sums run a higher risk of being falsified, and thus require longer confirmation times in order for the merchant to be safe.
Block times of 10 minutes have originally been chosen by Satoshi Nakamoto to secure the Bitcoin network in its size of almost 10 years ago. Since then, the network has grown considerably, making it more difficult for malicious actors to introduce fraudulent transactions into the network.
Vitalik Buterin, founder of Ethereum, argues that that shorter block times are preferable over longer ones because they provide a higher granularity of information: Correct active chains will more quickly be detected and preferred over incorrect chains, and an acceptable security level for small- to medium- sized transactions will be achieved sooner. However, the shortening of block times does increase the centralization risk of proof-of-work-based blockchains, giving larger players considerably more power to
possibly cheat the network. Thus, block times cannot be arbitrarily reduced, but must be carefully designed keeping these conflicting tendencies in mind.
In the light of all these considerations, Bitcore has decided to fully enjoy the privilege and benefits that come with modestly reducing the overall block time to 2.5 minutes.
3.2.3 Larger Block Size
Bitcore’s blocks currently have a size of 10 MB, without factoring in the additional room that comes from the ‘re-weighing’ of the data due to SegWit, which increases the size to 20 MB. Therefore, Bitcore can produce 80 MB in blocks (40 MB of which are due to SegWit) in the same interval in which Bitcoin produces 2 MB (1 MB without SegWit).
Larger blocks can contain more transactions, which at a constant block time is equivalent with faster transaction throughput. Transaction throughput has always been a critical issue with regard to cryptocurrency’s ability to compete with fiat payment solutions: The incumbent VISA can handle 1,700 transactions per second (TPS), and PayPal 115 TPS at least.
With activated SegWit, Bitcoin can handle around 11 TPS, although there have been spikes as high as up to 20 TX/second for very brief periods of time.
In order to enable widespread adoption of crypto payment methods, the scalability of blockchain networks obviously needs to improve, and throughput needs to increase. Two solutions to this challenge are commonly being discussed: Increasing the block size or introducing off-chain scaling solution such as the Lightning Network.
The Bitcore community has chosen to increase the block size to 10 MB and given an average of 224 bytes/TX, the BTX chain can handle approximatively 310 TX/second. With SegWit, its potential maximum block size is increased even further, to 20 MB, and the BTX chain can handle 550 TX/second under optimal conditions, even without accounting for the fact that some of the transactions can be routed off-chain via the Lightning Network.
Bitcore has proven its capability to handle large numbers of transactions in a short interval of time when approximately 5 million transactions were processed within a few days in November 2, 2017, upon activation of the hybrid fork (see section 2.2 of the present paper).
3.2.4 Activation of Segregated Witness (SegWit)
Segregated Witness (SegWit) was activated on the Bitcore blockchain in April, 2017, with block #3,000 - half a year earlier than in Bitcoin. Prior to activation, Bitcore Timetravel10 miners successfully began the creation of SegWit compliant blocks.
Segwit provides several immediate benefits:
- Elimination of unwanted transaction malleability
- Capacity increase
- Weighting of data based on how it affects node performance
- Signature covering of value
- Linear scaling of sighash operations
- Increased security for multisig
- More efficient almost-full-node security
- Script versioning
3.2.5 Lightning Network Compatibility
The Lightning Network is a transfer network operating at a layer above the Bitcore blockchain. By using smart contract functionality, it enables instant payments across a network of participants, obviating the need to wait for confirmation, as described in previous sections of this whitepaper.
In addition to instant payments, the lightning network confers further advantages:
- Increased scalability as a side effect of instant payments
- Lower costs, making this solution attractive for micropayments as well
- Enabling cross-chain atomic swaps off-chain with heterogeneous blockchain consensus rules
Bitcore is fully compatible with the Lightning Network and therefore able to support instant payments as well as micropayments.
3.2.6 Low Fees
With an average fee of $0.0003 USD per kilobyte and a median fee of $0.0002 USD per kilobyte, Bitcore’s fees are markedly lower than the fees of other major cryptocurrencies (also see Figure 4). As 1 kilobyte is roughly equivalent to 3 transactions, this corresponds to a fee of about $0.0001 USD or 0.01 US-Cent per transaction.
This favorable fee structure further contributes to Bitcore’s suitability for everyday transactions and even micropayments.
Bitcore has a required minimum fee of 0.0001 BTX per kilobyte; the recommended fee, intended to support minders, is currently (July 2018) about 0.001 BTX per kilobyte. As Bitcore blocks are currently not full, there is no advantage in transaction speed to be gained by paying a higher fee; however, this may be the case in the future as the load of the Bitcore network increases.
Bitcore offers a wide range of technological advantages, such as speedy transactions and low transaction costs, that make it particularly suitable to everyday applications. However, Bitcore does not only live through its technology: A considerable strength and advantage of Bitcore is its diverse and multi-faceted community.
From its very beginning, Bitcore has focused on fostering an active community unrestricted by geographical borders. This was reflected, among other things, in Bitcore‘s decision to forgo an ICO in favor of a more decentralized and equal-opportunity distribution mode (see section 2.2) – a decision based on community voting.
Not only are location and nationality irrelevant in the context of Bitcore community membership, but language should be as well. This is why Bitcore has been present in many social media channels in many different countries and languages right from the beginning.
There are many active sub-communities in a variety of languages. Especially noteworthy are the development and prominence of the Turkish- and Spanish-speaking communities within Bitcore. One of the goals of Bitcore is to strengthen such regional initiatives, which contribute massively to the overall strength of Bitcore.
Bitcore, as detailed above, is an exclusively community-driven project.
There is no central authority or executive committee responsible for certain milestones designed to satisfy shareholders or institutional investors.
Instead, Bitcore’s development is led by the needs and visions of its community members. The history of Bitcore has shown that this mode of operation and strategy-finding is conducive to innovation and the speedy implementation of necessary improvements.
Even though there is no centrally defined Roadmap for the coming years, the Bitcore development team is of course constantly working to implement new features, as required by the community. Currently planned and active projects can be viewed on Bitcore’s website, https://bitcore.cc.
Core Developer C++ and Qt
Chris is Bitcore’s main developer. He has worked on several other coins like BitSend, Bitcloud and more. He is one of the founders of Limxtec (https://github.com/LIMXTEC) and has many years of experience in the crypto space.
System, Service Administrator & All-Round Talent
Jon is the API, Electrum and infrastructure developer for Bitcore and responsible for the maintenance of our server network. He was the main force behind development and execution of the hybrid fork and weekly airdrops.
Brand Ambassador & Social Media
Steve supervises the contact to exchanges and listing sites, and is our #1 man for business contacts.
Publications & Graphic Design
David is the artistic mind behind Bitcore. He is also working on media publications and supports the core team’s workflow.
Lead Project Manager for Services and Businesses
Ivo is helping Bitcore grow both legally and technically.
Thomas is our email and exchange manager responsible for most of our official communication with services and exchange platforms.
Mining Expert and Pool Manager
Mining pool admin and mining support via telegram channel.
Support and Graphic Design
Bitcore Reddit communication and graphic support.
Turkish and international exchange management.
Spanish Community Managment
Hampus is organizing signature campaigns and manages our threads on a lot of altcoin forums.
Brad is Bitcore’s Facebook manager.
Ugur is managing Bitcore’s Turkish community and helps with telegram support work.
Telegram and Facebook Support
Klaas provides Telegram and altcoin forum support.
Developer Team (Turkey)
This presentation is not, and nothing in it should be construed as, an oﬀer, invitation or
recommendation of an oﬀer, or a solicitation of an oﬀer to buy. Crypto currency investment is highly speculative with volatility compared with traditional investment vehicles and may not be appropriate for your particular ﬁnancial situation. Potential investors are advised to consult with their ﬁnancial advisors, accountants or other trusted counsel and assess whether Bitcore is an appropriate investment for your ﬁnancial constraints and objectives. Past performance of Bitcore is no guarantee of future performance.