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A PEER - TO - PEER ELECTRONIC MONEY TRANSFER
Version 1.0 Bitcoin One
Thank you to all the people, both BIO Bitcoin One Foundation members and fantastic BIO Community,
who have contributed with their input to this document and support over the years which inspired us
to move forward and continue to develop BIO with passion.
This white paper is the first draft. The final iteration will include detailed description of BIO Bitcoin
One parameters and adjustment options for the zero micromanagement BIO - Proof of Stake engine
(split and merge mechanics).
What is BIO Bitcoin One?
BIO Bitcoin One is a digital currency that that allows people to send money anywhere in the world
instantly, securely and at near zero cost. It focuses on creating a multi entry, high rewards monetary
system that empowers people to achieve financial freedom through blockchain based technology. BIO
Bitcoin One's conceptual goal is to become an ultra-scarce non-government controlled storage of
wealth with software facilities that can increase that wealth over time.
BIO Bitcoin One rollout is one of the cornerstones of this monetary system. The emission model stays
the same as in BIO Bitcoin One V 1.0, however, the introduced changes make the emission of new
coins smoother and avoid sudden large reductions in yearly interest.
Bitcoin One relies on both Proof-of-Stake and Proof-of-Work algorithms to govern the network. BIO
Bitcoin One will be run by state of the art Proof-of-Stake only; When the 10,000 Blocks Of
Proof-Of-Work is finished
The earlier version of BITCOIN
In our earlier post we discussed what is Proof-of-Work. We concluded the article highlighting a major
issue that can arise in future if Proof-of-Work algorithm is still continued in Bitcoin mining.
The article was ended by arising a question that what if all bitcoins are matured and nothing is left for
rewards? The possible solution to this situation may be Proof-of-Stake(POS) algorithm.
POS also has several other individual advantages as well and it’s not like it came into existence only to
Treasure Digging – striving for deflation
In bitcoin-one we have added a reward feature of 3% As there would not be anymore then
512195 in it’s total existence
Step 1 Download the Wallet
Step 2 After you downloaded the wallet you can open it for the first time by simply starting the
application. Next step is to navigate to “Settings -> Encrypt Wallet” to setup a Password you can
remember and which is not so easy to guess. After you setup a Password you are kindly asked to restart
the wallet, please do so. Now the wallet will proceed to synchronize with the current block, depending on
how old and fast the coin is this could take several minutes to hours. Once you are finished with
synchronizing please navigate again to “Settings” and unlock your wallet by entering your Password.
This progress is needed to allow the wallet to “work” with your coins (mature them to receive stakes).
Step 3 Transfer the coins to your wallet
Navigating to your “Receive Coin” Tab will show you a wallet address. This wallet address needs to be
used to transfer coins from your exchange (see above) to your encrypted wallet.
Once you transferred the coins you shall receive a new transaction in your wallet. After you received them
you are done with the basic setup and your coins begin to mature.
What is Proof of Stake?
Like a proof of work system, proof of stake allows miners to verify block chain transactions and
solve puzzles in order to receive rewards – which ultimately are the coins you receive. In a
proof of work system, miners complete difficult puzzles using the hashing power of their
computer equipment and are rewarded based on how quickly they can solve the mathematical
puzzles. The faster the hashrate, the more coins they will receive. Mining in a proof of stake
system however is not completely determined by one’s hashrate (or computing power,) but
instead by how much of the currency they currently own. If someone owns five percent of the
currency, then they can mine five percent of the blocks.
In proof of stake the “mining” that goes on doesn’t necessarily refer to the mining done on
currencies such as Bitcoin with powerful computing equipment. Instead, “mining” occurs when
transactions take place within the currency, generating fees. These fees are more likely to go to
the users with greater stakes in the currency. This creates an incentive for miners to hold onto
their coins instead of trading them away as soon as they’re earned.
How proof of take can solve the flaws of proof
Although more merchants are accepting Bitcoin, the price has yet to recover from its peak late
last year. Though there are many reasons for this, one in particular is because most of these
merchants convert their Bitcoins into dollars or other fiat currencies as soon as they earn them.
This creates a downward pressure on the price of Bitcoin due to the constant selling of
currency that exist the Bitcoin economy. In the proof of work system there is no incentive for
merchants to keep Bitcoins and due to its volatile nature many merchants are scared to hold
them for longer periods of time. The proof of stake system however gives people an incentive to
keep their coins rather than selling right away.
Proof of Stake 3.0
BIO Bitcoin One adopts Proof-of-Stake 3.0 which solves many underlying issues of Proof of Stake
As in all implementations of Proof-of-Stake one must prove it has access to coins which grants the
user ability to partake in network competition where the main prize is privilege to sign the transaction
for which the winner is rewarded with new coins. The general rule states the higher the network
competition there more secure the network becomes.
Version 1.0 Bitcoin One
Proof-of-Stake 3.0 dealt with security and stability deficiencies of the previous generation of Proof of
Stake including Coin Age, Blockchain Precomputation and Block Rewards. All the above constitute a
potential attack vectors.
The original implementation of Proof-of-Stake used a concept of Coin Age. It was meant to incentives
those holders who do not take part in securing the network very often by making it easier to win the
race if the coins were held untouched for a long time. Coin age was calculated by the weight of
unspent coin (UTXO) and the time they have been dormant. It was argued the more reluctant
participants would be more keen to take part in network competition and work in harmony with
those who partake on 24/7 basis. Also, from monetary issuance model it created a static yearly interest
rate for all participants.
However, this model has introduced some worrisome behaviours where majority of shareholders were
disconnecting from the network for long periods of time, gaining enough coin age to stake and
connecting again to claim their rewards. This became a reoccurring pattern. With such system in
place there was little incentive to keep nodes running continuously, and the fewer the nodes the easier
it was to execute an attack especially as the stakes could be compounded and coin age gathered in
Another attack vector that former Proof-of-Stake protocol was vulnerable to was Blockchain
Precomputation. Proof-of-Stake 3.0 introduced stake modifier interval that enhances obfuscation of
hash which makes it harder to predict the time of the next proof of stake block. This prevents an
attacker from staking multiple blocks in a row.
Furthermore, as mentioned above, Proof-of-Stake based on Coin Age - which tried to create a
common APR for all users - did not encourage satisfactory level of network support and yearly
compounding interest was not big enough pull factor for users to run their nodes continuously. To
prevent this in Proof-of-Stake 3.0 the block reward was made a constant 2.35 BIO per block
(initially). This was based proportional to the supply of coins maintaining yearly interest at around
Version 1.0 Bitcoin One
3%. Block reward will be following emission curve line reducing its block value over a period of time
to reflect set coin rollout.
Now only active participants can compete for the network reward. Probability of a node winning the
right to sign a transaction will be proportional to the percentage of its share of allocated coins taking
part in that competition. With this change the fewer participants the bigger the rewards as totality of
the paid out reward is split among fewer participants. This measure creates much stronger pull
factor encouraging the network to grow and compete.
BIO Bitcoin One hybrid security scheme mitigated some attack risks by having Proof of Stake and
Proof of Work blocks interlacing one another making it harder for a potential attacker to corrupt the
system as he/she not only had to gain majority control in staking but also control majority of the
With the appearance of FPGA mining, which completely centralized mining, Proof of Work protocol
no longer posed a credible solution to the network security and the support for this channel has been
dropped. Proof of Stake 3.0 is a credible alternative that is much more energy efficient and minimizes
environmental impact of normally energy intensive tasks. Also, lower hardware requirement.
The risk of a replay attack is inherent to every cryptocurrency hard fork and has to be taken into
consideration to protect users from losing their funds. A hard fork is an exact duplicate of the
blockchain, and as such, a transaction that is broadcast publicly to the network can be replayed on
sides of a fork, unless replay protection is implemented.
Bitcoin One will implement a solution called SIGHASH_FORK_ID replay protection. It is an effective
two-way replay protection mechanism that enforces a new algorithm to calculate the hash of a
transaction so that all the new Bitcoin transactions will be invalid in Bitcoin One blockchain and vice
versa. Bitcoin One will implement replay protection BEFORE THE LAUNCH.
Version 1.0 BIO Bitcoin One
BIO Bitcoin One will only work on the current version and will not include any hard-fork untill its
necessary for the network stability We will therefore include support and it will be users to decide if
they need hard-fork in near future which will also include voting poll.
BIO Bitcoin One started as a humble cryptocurrency that was focused on generating and storing
wealth through in built protocols. Even though it excelled at these BIO Bitcoin One Foundation has
developed Bitcoin One Cloud Mining and Bitcoin One Multipool services to further strengthen BIO
Bitcoin One ecosystem and provide more entry points to this new financial system.
On the other hand, blockchain technology develops at accelerating pace with every passing year and
BIO Bitcoin One is adapting to constantly changing technological and market landscape. To stay
compatible and have ongoing access to the wealth of technological advancements BIO Bitcoin One
will adopt industry standards necessary to incorporate solutions and components that would be
beneficial to the future of BIO Bitcoin One. Any new feature that has been time tested and would add
value to the coin could and would be implemented.
In the immediate future after the release, BIO Bitcoin One (which will feature a new slimmed down
blockchain with much faster loading time), will get a Light Wallet that does not require setting up a
full node with the up to date blockchain to be able to use Bitcoin One Network. At the same time, a
mobile wallet for Android devices will be released so that one can access and manage their coins on
The development on BIO Bitcoin One Core software will continue throughout the year and will come
in several stages. Every new release will add new features to the platform, increase processing power
and scalability of the network.
If the Proof-of-work is based on mining and computing power, the Proof-of-stake derives from
actual holdings of the cryptocurrency. For example, if bitcoin was a Proof-of-stake network,
users that own the largest chunk of bitcoin would have the authority to make network changes
and mine an equivalent portion of their funds regardless of computing power.
Conceptually, a user who owns 25% of all bitcoin would be able to mine 25% of the bitcoin
network’s transactions gaining ¼ of the network power. It means that the user has a significant
impact on the implementation of economic and technical changes within the network.
Interestingly, the Proof-of-stake eliminates some of the major security issues associated with
the Proof-of-work scheme. The most obvious of them is the 51% attack.
If an attacker was to hack a cryptocurrency network today, for instance, the bitcoin network,
he would have to gain 51% of the computing power. This can be made possible if some of the
largest mining pools join together to attack the network. While this is highly unlikely
politically, technically, it is still a possibility. This is the very reason behind the criticism by
bitcoin experts and users of the centralisation of mining power taking place in China.
If the bitcoin network was based on the Proof-of-stake principle, the attacker would need to
buy 51% of all the bitcoins, which costs nearly $5 bln dollars, to hack bitcoin. Furthermore, it
would be virtually impossible to buy that much considering the limited amount of bitcoins in
The demand to own 51% of the network’s market cap also means that the attacker would have
significantly reduced the incentive for the attack and would suffer the most from it since he
would be the majority stakeholder in the network.
Proof of Stake
In simple terms, the concept of PoS revolves around the amount of coins that
miners possess on the network; the more coins a miner possess, the higher
chances he has to find blocks on the blockchain. This amount of coins is the
"Stake" a miner places on finding a block.
Although not yet fully mature, crypto experts believe PoS will eventually
replace PoW mining.
PoS does not require costly hardware to colaborate to the network;
consensus can be reached based solely on the amount of coins
each miner has.
The "investment" needed for mining through PoS does not devaluate over
time. The value of the miner worth is only affected by the changes on the
coin value, and exchange rate between other currencies (Bitcoin, USD).
PoS is clearly a lot cleaner for the environment than PoW, the former
needing only to own coins on the network thus allowing a "virtual
mining", whereas the latter requires hardware and electricity to
PoS tends to be less descentralized by the nature of its algorithm.