Bitbon System White Paper
The creation of the Bitbon System is a natural outcome of evolution and globalization of worldwide processes.
If you are already familiar with the Bitbon System White Paper, you can go straight to the Roadmap and stages of development of the Bitbon System:
Their secret lies on the surface: these companies were the first to feel the moment of the emergence of fundamentally new markets with great potential and directed all their effort to study new ways of using the opportunities of such markets.
Any technology cyclically goes through stages of its “maturity” from its emergence to stable commercial implementation.
This cycle was identified by the specialists of Gartner, Inc. based on the research, the results of which became the foundation for a new model of predicting and analyzing trends related to the emergence of new technologies.
The model shows how promising a particular technology is based on the degree of interest towards it from society and specialists.
For the blockchain technology, just like for any other innovation, the above-mentioned model is applicable. You can see it by comparing the chart “Technology Hype Cycle” with the chart “Index of Interest in the Blockchain Technology”.
Trigger of Innovation: emergence of the technology and the beginning of discussions about its prospects.
Peak of Inflated Expectations: first companies and followers appear that attempt to apply this technology in its entirety and try to receive business advantages.
Trough of Disillusionment: it turns out that the technology has a lot of downsides, underdevelopments and limitations, which leads to the decrease in mass interest.
Slope of Enlightenment: developers fix their mistakes, the technology becomes more convenient in its application, real audience grows and, over time, the product gains interest again.
Plateau of Productivity: the technology earned its spot on the market and became a convenient tool or solution in a specific field.
This, in turn, gives solid ground for confidence that in the future, in the plateau of productivity, the blockchain technology and systems, services and tools based on it will receive a stable growth of interest, popularity and demand.
The emergence of the blockchain technology marked the beginning of the transformation of the digital economy into information economy.
The foundation of this economy is the universal equivalent, not money, but assets in digital form, which are managed through systems based on the blockchain technology.
We offer a platform with a perfect model for transforming the existing form of socioeconomic relations into a more effective and transparent one for governments and society.
Based on this platform, we are creating a new market of information resources, products and services, where the role of money is secondary, and people along with their values represented in digital form are of key importance.
Simcord occupies the leading position in the field of creating innovative solutions for the financial and economic area and blockchain technologies.
Having many years of experience confirmed by our research, we state that the formation of the new market of information resources, products and services based on distributed ledger technologies is already underway, which means that the participants, who are at the origins of the formation of this market, will receive a huge advantage.
In order to enable the exchange of values between users of such market through blockchain tokens, such tokens must refer to real assets, which means be digital assets and, therefore, comply with International Financial Reporting Standards. The chart below illustrates the basic principles of this process:
A type of a distributed ledger, which constitutes a sequential chain of generated transaction blocks built according to certain rules. At the same time, each subsequent block of the structure contains information about the previous one, so as a whole, the chain stores the entire history of completed transactions.
An accounting unit circulating in the distributed ledger by means of a transaction with a unique identifier.
An information resource derivative of the right to a value and circulating in the distributed ledger in the form of a unique identifier.
Information structured and organized in a certain way, recorded on a tangible medium. This information can be stored, transferred, used and replenished. The information resource has the properties of practical significance and usefulness, as well as the possibility of multiple use.
Building a global market for equal exchange of products and services based on the blockchain technology without intermediaries
User that finances the project
Financing happens through the use of digital assets by the Bitbon System Users
Project that requires financing
The Bitbon System includes a set of innovative tools and services, using which the Participants, Bitbon owners, will be able to fully own and effectively manage their rights to values in digital form.
Such values can include property, property rights, non-property rights, securities, services and works, digital assets and other values.
it is an opportunity to have a stake in promising projects, attract funds for their business on mutually beneficial basis without loans and receive additional benefit from participating in Consensus building mining and Infrastructure building mining in the Bitbon System.
it is an opportunity to estimate the main economic activity indicators, in particular, production volume, cost of production, profit and cost-effectiveness of activity using digital assets. The Bitbon System also envisions a progressive way of performing an equal exchange of goods and services, as well as digital assets on a global market of digital assets based on the blockchain technology without intermediaries.
therefore, the Bitbon digital asset provides its owner with the right to access a set of rights and obligations of the value (asset) owner — Simcord Company.
You can learn more about the structure of the asset Simcord that includes the Company’s property rights to trademarks, logos, patents and software complexes presented in Appendix No. 2 to the Bitbon Protocol by following this link: http://bitbon.space/en/backing-of-bitbon-software-complexes
The Bitbon System is intended for natural persons and business entities, its opportunities are endless, and digital assets are classified according to the International Financial Reporting Standards as an information resource, intangible asset, which makes them clear for taxation and irreplaceable in organizing a new way of accounting and managing goods and material values.
Properties and attributes of the Bitbon digital asset, as well as the terms and conditions of its circulation in the Bitbon System are established by the Bitbon Protocol, which is available by following the link: https://s3.eu-central-1.amazonaws.com/bitbon-site/pdf/bitbon-protocol.pdf
All of the above-mentioned guarantees the ability to create new forms of socioeconomic relations based on the Bitbon System, which will contribute to the emergence and intensive development of new ways of building business based on using one’s own assets in digital form with economic effectiveness that surpasses traditional approaches hundred- and even thousandfold.
and additional issue is impossible.
These markets will certainly continue to exist, but for that, in light of the global trend towards digitalization and evolution of socioeconomic relations, they will need to transfer to a more advanced platform based on the blockchain technology.
The Bitbon System is that platform, its goal is to become one of the most effective databases for accounting and redistribution of any resources available to the global economy.
We would like to point out that the 3rd stage has no end date, since it represents the entire process of the future development and evolution of the Bitbon System.
To make it more comprehensible and convenient when searching for the information on the development processes of the Bitbon System, we have divided all tasks of the Roadmap into three areas by marking them with the corresponding colors:
Scientific and Legal
In turn, in order for you to see what has already been done by our team, what we are working on and what is planned for the future, each task will be assigned one of three statuses over the course of implementation:
The fundamental concept and development strategy of the Bitbon System were defined
The main terms and definitions were formed, which became the foundation for the model of interaction of all Bitbon System Users and mechanisms ensuring the operation of the System’s components
Over the course of developing the mechanisms of the Bitbon System, we were faced with the absence of a lot of concepts in the modern scientific terminology, which led to the necessity of creating our own term base.
The blockchain technology was chosen for technical implementation
The distributed ledger technology (blockchain) allows not only implementing the Bitbon System at the technical level, but also starting to realize the ideas of building a new socioeconomic model based on information resources.
Registration of patents, copyrights and trademarks for the key components of the Bitbon System at the international level
Registration of intellectual property objects of Simcord is one of the most prioritized tasks.
Transition to the practical implementation of tasks
Preparation for the process of attracting potential Partners and investors, as well as formation of the fundamental infrastructure of the Bitbon System.
From March 13, 2017 until March 12, 2018, 8,352,050 Bitbons were distributed by means of selling electronic Bitbon Certificates, where Simcord Advanced Marketing Solutions LLP was one of the parties to the agreement “Agreement on Provision of Services of Distributing the Right of Access to the Bitbon System”.
The methodology for the pricing of Bitbon was determined at the distribution stage
Up until October 10, 2018, the value of Bitbon was determined by a special formula and was calculated online depending on the number of purchased Bitbons:
S1 — base number of Bitbons for the first level if 1 Bitbon = 1 USD;
N — level of Bitbon pricing;
SN — number of Bitbons of the N level;
S — current number of all purchased Bitbons;
P — current price of Bitbon;
PN — base price of the N level.
Essentially, the value of Bitbon at each price level was calculated based on the total number of purchased Bitbons at all previous price levels.
In the early stages of the Bitbon System development during the increase in Bitbon liquidity, Bit Trade Exchange of Digital Assets provides for special temporary trading conditions with an increased commission for the sale of Bitbons (at the seller’s expense) in favor of participants in affiliate programs. According to these trading conditions, the commission is set automatically following the principle: the higher the sale price of Bitbon, the lower the commission is. Consequently, with the increase in the number of Bitbon owners, Bitbon trade circulation (liquidity) increases, its price rises and the commission decreases.
This approach is designed to provide optimal conditions for motivating Partners to attract more Users in the early stages of the Bitbon System development.
Bitbon System Public Contract coming into effect
On March 10, 2018, the Bitbon System Public Contract was published and came into effect, which is a basic constitutive agreement between SIMCORD LLC, as the founder of the Bitbon System, and all Bitbon System Participants.
Launch of blockchain based on the Ethereum technology
The Bitbon System’s blockchain was launched, which, in the early stages of the System’s development, is based on a separate version of the Ethereum blockchain.
1 stage of the Bitbon System decentralization
The expansion of the Bitbon System’s network with additional nodes took place: bch01 (Netherlands, Rotterdam), bch03 (Singapore, Singapore), bch04 (USA, West Des Moines). The Bitbon System’s network performance testing session was conducted. At the 2 stage of the Bitbon System decentralization, the network’s expansion to 33 locations with new nodes based on the Community PoS Consensus is planned.
Issue of 100,000,000 Bitbon units
Simcord, as the founder of the Bitbon System, issued 100,000,000 Bitbon units to allow Bitbon System Users to use the opportunities laid down in the Bitbon System, as well as to allow Bitbon System Participants to realize their right to direct management of the Bitbon System in the interests of all its Users.
Additional issue of Bitbons in the Bitbon System is impossible.
Creation of the Bitbon System Capitalization Fund
Out of the total number of Bitbons, 70,000,000 Bitbon units were transferred to the Assetbox of the Bitbon System Capitalization Fund to be distributed through affiliated Partners.
Launch of the Bit Trade Exchange of Digital Assets with the ability to purchase Bitbon under the terms of the crowdsale
The first stage of the launch of the Bit Trade Exchange of Digital Assets took place on March 13, 2018 with the ability to purchase Bitbon and register Bitbon Certificates in the Bitbon System’s blockchain by using the tools of the Bit Trade Exchange. From March 13 until October 10, 2018, the offer for the remuneration of Bitbon Promoters in the amount of 10% to 15% of the Bitbon sale was in place.
From March 13 until June 16, 2018, 12,830,554 Bitbons were distributed using the network of Partners in different countries before the launch of the public crowdsale.
Launch of the Bitbon Space mobile app for Android and iOS operating system with the access to the news of the Bitbon System
On May 16, 2018, the Bitbon Space mobile app was released for iOS and Android operating systems with the access to the news of the Bitbon System.
The Appendix to the Bitbon System Public Contract “Terms and Definitions in the Bitbon System” was published
The Bitbon System uses a unique mechanism of interaction between its Participants and with the real sector of economy. This, in turn, requires the use of unique terminology to simplify the description and understanding of the processes occurring in the Bitbon System.
From June 17 until October 9, 2018, 5,753,157 Bitbons were distributed by means of advertising campaigns and the network of Partners in different countries.
Creation of the Mining Fund
On October 9, 2018, 30,000,000 Bitbons were transferred from the Bitbon System Capitalization Fund to the Mining Fund in order to develop the decentralized execution environment of the Bitbon System. Thus, taking into account the sale of Bitbon at the crowdsale stages, the Bitbon System Capitalization Fund has 21,016,289 Bitbon units left to participate in Contributing.
Launch of the Affiliate Program
On June 17, 2018, the Affiliate Program was launched on the Bit Trade Exchange of Digital Assets, the purpose of which is to help increase the number of Bitbon owners, increase the Bitbon trade circulation (liquidity) and its value. Participants in this program can receive additional income at the seller’s expense from direct sales of Bitbon. To attract the Bitbon System Users, special tools are provided — referral links to the Bitbon Space and Bit Trade websites for their placement on public web resources.
The Appendix “Making Amendments and/or Additions to the Bitbon System Public Contract” was published
This Appendix determines the order and requirements for making amendments and/or additions to the Bitbon System Public Contract, as well as to the Appendices specified in Clause 12 of the Bitbon System Public Contract in order to ensure transparency of operation of the Bitbon System.
Community PoS Consensus building algorithm was announced
The main objective of the Community PoS algorithm is to ensure complete decentralization of the processes of publication and verification of transaction blocks with the high level of network performance and guaranteed short interval of waiting for the confirmation of transaction completion.
As part of the scientific and research activity, Alexander Kud conducted the etymological analysis of the term “digital asset” that included four approaches: economic, legal, information and value. The research was based on the need to form the most precise definition of this term in the economic and legal aspects. All components of the definition of a digital asset were analyzed, and the connection between them was identified and proven.
This methodological manual was developed by Alexander Kud and is the fundamental instrument for conducting the test of correspondence of characteristic indicators of any blockchain token to a digital asset.
Upon successful completion of this test, the blockchain token receives the status of a digital asset and, therefore, the ability to be used in accordance with the International Financial Reporting Standards in the existing legal field without the need to create or introduce additional norms of regulation from governments.
The manual is intended for specialists in the fields of information and digital economies, lawyers, financial organizations and representatives of business communities.
You can view the result of completing the independent test taking the Bitbon blockchain token as an example by following the link:
You can learn more about the process of determining a blockchain token’s correspondence to a digital asset, as well as read the manual itself by following the link: https://www.digitalassettest.org
As part of the scientific and research activity aimed at studying the issue of complete operation of the Bitbon System in the legal field, Alexander Kud looked at the matters of essence and purpose of digital assets as a fundamental economic and legal phenomenon, the emergence and application of which was possible due to the development of distributed ledger technology (blockchain) as a response to the global digitalization of the international socioeconomic system.
The substantiation of the term digital asset in the economic and legal aspects and unique features of legal regulation of digital assets allow stating the high level of their applied significance for the global community and prospects for the substantial changes that occur in the socioeconomic, political and legal fields. Taking into account the practical significance of digital assets, a special attention in the paper is dedicated to the methodology for testing any blockchain token’s correspondence to a digital asset.
The monograph is intended for specialists in the fields of information and digital economies, lawyers, financial organizations and representatives of business communities.
This paper is distributed for free and has two editions, one of which is extended. The monograph will soon be available in electronic form by following the link:
Publication of six new terms in the Large Ukrainian Legal Encyclopedia
When creating the methodology for determining a blockchain token’s correspondence to a digital asset and writing the monograph as part of the process of developing the Bitbon System, Alexander Kud developed and implemented new concepts (terms) and their definitions, as well as clarified the existing ones. These terms and their definitions were published in the Large Ukrainian Legal Encyclopedia (volume “Financial Law”).
By following the links below, you can view the definitions of these terms on the Bitbon Space website:
The Scientific and Legal Opinion “Legal Nature of the Bitbon System’s Functioning” was received
The Opinion of the National Academy of Legal Sciences of Ukraine, EDRPOU 00065028, at the request of SIMCORD LLC, EDRPOU 37657823, on conducting the scientific and legal analysis of the Bitbon System’s functioning.
The Scientific and Legal Opinion “Digital Assets as an Object of Legal Regulation” was received
The Opinion of the National Academy of Legal Sciences of Ukraine, EDRPOU 00065028, at the request of SIMCORD LLC, EDRPOU 37657823, on conducting the scientific and legal analysis of the term “digital asset” and its relation to the category of objects of legal regulation.
The Scientific and Legal Opinion “Determining Whether the Bitbon Blockchain Token Corresponds to a Digital Asset” was received
The Opinion of the Research Center of Legal Solutions in the Area of Application of Distributed Ledger Technologies, EDRPOU 43370506, at the request of SIMCORD LLC, EDRPOU 37657823, on conducting the diagnostics of the Bitbon blockchain token’s correspondence to a digital asset. The research within the context of this Opinion is based on the approach presented in the methodological manual “Methodology for Determining Whether a Blockchain Token Corresponds to a Digital Asset”.
Rebranding of the Bitbon Space mobile app to One Space
One Space is a socially-oriented resource of the Bitbon System that has the required functionality and set of tools that in the future will allow:
The Bitbon Protocol is the foundation for the legally protected implementation of the owners’ property right to the Bitbon digital asset in accordance with all accepted international standards, it confirms the backing of Bitbon by real assets (asset SIMCORD LLC) and allows classifying Bitbon as an intangible asset in accounting in accordance with the International Financial Reporting Standards 38 “Intangible Assets” and, therefore, provides an opportunity to use Bitbon in the current international legal field.
Recording the Bitbon digital asset in the accounting of an enterprise as an intangible asset
From the moment of publication of the updated Bitbon Protocol that confirms the legal nature of the Bitbon blockchain token backed by the asset SIMCORD LLC, the ability of representing Bitbon in accounting (financial) reports as an intangible asset is confirmed for the use by natural persons and business entities.
The ability to register own Space ID is available
In the early development stages of the Bitbon System, the Bit Trade Exchange of Digital Assets is temporarily performing the functions of the registrar of Space ID of Bitbon System Users. This means that each account on the Bit Trade Exchange of Digital Assets is automatically assigned a Space ID, which the User will be able to use to get access to his/her account in the Bitbon System in the future.
Global update of the Bitbon Space website
With this update, Bitbon Space received not only a modern design and user interface, but also an advanced technical and information architecture for proper implementation of the functionality laid down in the Bitbon System.
By means of the published materials, the updated Bitbon Space will allow for a better understanding of the principles and mechanisms of interaction of Bitbon System Users with the real sector of economy on the new market of information resources, products and services based on distributed ledger technologies.
2nd stage of the Bitbon System decentralization
The Ethereum PoW consensus algorithm was replaced with Community PoS developed by Simcord Company. At this stage, the Community PoS algorithm is used with a representative set of Assetboxes to ensure the functioning of Community PoS until the launch of Consensus building mining in the Bitbon System.
As a result of launching the new algorithm, the energy consumption of servicing tokens of the Bitbon System decreased, while the transaction processing speed increased to 5,000 per second, which brings the efficiency of the Bitbon System blockchain closer to the transaction processing speed of global financial networks, such as Visa and Mastercard.
System of remuneration for Consensus building mining
Launch of the Consensus building mining
1st stage of launching Infrastructure building mining
Launch of the One Space website
Accounts for businesses and Bitup-Agencies in the Bitbon System
Implementation of the service for managing digital assets using One Space
Launch of the Safebox service as a component of a decentralized exchange
Аpplication Programming Interface (API)
Publication of source codes of the Bitbon System node software in the GitHub repository of Simcord
Listing of Bitbon on various exchanges
Launch of the Bon exchange service
Launch of the “Indices and Quotes” service
Launch of the “Registers” service
Publication of the Appendix to the Bitbon System Public Contract “Digital Asset Protocols in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Asset Digitization Procedure in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Rules of Transferring Digital Assets in the Bitbon System”
Publication of the book “Bitbon System. Image of the Future”
Launch of the Academy of Information Economy
Launch of the Asset Digitization Procedure
Launch of the “Bitbon System Capitalization” service
Business Bon Protocol
Currency Bon Protocol
Property Bon Protocol
Non-Property Bon Protocol
Commodity Bon Protocol
Proprietary Bon Protocol
Launch of the messenger with the ability to perform calls and create chats based on One Space
Creation of public channels with special abilities based on One Space to form a social network of a new generation
Connection of merchants and outlets
Launch of the system for preparing and licensing Bitup-Agencies
First Projectbon Protocols (start of interaction with the real sector of economy)
Launch of a special website service for testing a blockchain token’s correspondence to a digital asset
3rd stage of the Bitbon System decentralization
2nd stage of launching Infrastructure building mining
Transition of the Bitbon System’s infrastructure from the private Ethereum blockchain to the public Simcord blockchain
Localization of the official information resources of the Bitbon System in 12 languages
Integration of trading networks into the Bitbon System
Launch of the global discount system based on the Bonpay service that would unite various fields of business into one global system of discounts and savings
Ability to participate in various business projects through Projectbon using One Space
Evolution of the network (node) of the Bitbon System into an autonomous and decentralized structure
Uniting all Bitbon System Users into one business oriented network of a new generation
A single account that stores personal data in the decentralized environment with the ability to synchronize with all third-party services that support the Space ID standard
Launch of social saving programs in order to ensure the proper quality of life with guaranteed income
Creation of a single global system for purchasing and selling products and services based on Simcord blockchain
4th stage of the Bitbon System decentralization
Publication of the Appendix to the Bitbon System Public Contract “Legal Nature of the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Bitbon System Management”
Publication of the Appendix to the Bitbon System Public Contract “Bitbon System Capitalization Fund”
Publication of the Appendix to the Bitbon System Public Contract “Bitup-Agency’s Functions in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Rules of Contributing”
Publication of the Appendix to the Bitbon System Public Contract “Bitbon System Operator”
Publication of the Appendix to the Bitbon System Public Contract “Mining in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Use of Digital Assets for Mutual Settlements for Goods, Works and Services in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Resolving Disputes Between the Bitbon System Users”
Publication of the Appendix to the Bitbon System Public Contract “Resolving Issues of Digital Asset Inheritance in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Restoring Users’ Access to Their Accounts in the Bitbon System”
Publication of the Appendix to the Bitbon System Public Contract “Anti-Money Laundering Provisions”
Publication of the Appendix to the Bitbon System Public Contract “Policy of Rights and Freedoms of the Bitbon System Users”
Publication of the Appendix to the Bitbon System Public Contract “Properties and Attributes of Digital Assets in the Bitbon System”