FAQs

During the first stage of its development, the Bitbon System[i] uses the private network architecture based on the modified Ethereum client with additional tools and utilities designed for vertical and horizontal scaling of the decentralized application network. This approach allowed achieving the network performance of up to 1,000 transactions per second, and with modification of the Ethereum client to the level of ensuring consensus based on the Community PoS principle, the network performance increased up to 5,000 transactions per second.

In addition, the Bitbon System software includes such a service as Bon Transfer[i] as well as simple interfaces for Users[i].

Bon Transfer provides the ability to transfer Bitbon units[i] to other Users by means of a protection code, which has an adjustable validity period; it also provides cold storage of Bitbon units and additional protection of transfers between Assetboxes[i] by means of a four-digit PIN code — BTSC (Bitbon Transfer Security Code). When carrying out transactions, Bon Transfer uses several security systems built into the nodes[i] of the Bitbon System network and implemented using the zero-knowledge proof algorithm (zk-SNARKs).

Overall, the Bitbon System software provides ready-made and universal solutions for the activity of Users ensuring a high level of security and reliability due to the decentralized network infrastructure.

During the further stages of its development, the entire Bitbon System will be transferred to its own Simcord decentralized infrastructure, which will significantly increase the network scalability and, therefore, the performance and functionalities of the Bitbon System as a whole.

You can get more information on the stages of the Bitbon System development in the Bitbon System Roadmap.

The Bitbon System[i] software is developed by Simcord, which specializes in developing and producing high-load software solutions based on the distributed ledger[i] technology.

You can find all additional information on the strategy, area of expertise and much more on the Simcord official website by following the link www.simcord.com.

The decision to use a separate version of the Ethereum private network during the early development stages of the Bitbon System[i] offers the following advantages:

1. Such an approach allowed the Company to significantly shorten the terms for implementing the first stages of the Bitbon System development. Taking the most reliable and stable version of the Ethereum network as a basis, the Company was able to concentrate its efforts on improving the safety, speed and reliability of the network operation.
2. It gave the Company an opportunity to significantly increase the development speed of new Bitbon System services[i] due to maturity of the Ethereum technology, availability of many ready-made solutions and products, tools for development, and adoption of such standards as Enterprise Ethereum Client Specification.
3. Bitbon System Users[i] receive all the benefits of the distributed ledger[i], which has already eliminated a number of drawbacks inherent in the original Ethereum version and other blockchain-based platforms of the 1st and 2nd generations.
4. Development of technical solutions based on a separate version of the Ethereum network allowed maintaining the uniqueness of the Bitbon System and ensured integration of the best software and algorithmic solutions in accordance with the Bitbon System development plan.
5. The high level of information security in the Bitbon System reduces threats, which are typical for the original platform, and makes attempts of theft, hacker and DDoS attacks pointless. The multi-level information security in the Bitbon System has been achieved through the development of additional modules and algorithms based on a separate version of the Ethereum network.
6. Such an approach to creating the Bitbon System software components[i] will allow the Company to use the knowledge and experience received by the entire Ethereum community in order to implement the best solutions when developing Simcord own decentralized infrastructure according to the Bitbon System development plan.
7. The current level of technical implementation of the Bitbon System allows storing alias[i], icon[i] and public service information in the distributed ledger for Bitbon unit[i] transfers and other services in the Bitbon System, which is impossible in the original version of the Ethereum and other similar platforms.
8. In accordance with Provision 1 of the Bitbon System Public Contract, Simcord as the First Bitbon System Operator[i] can effectively control and improve the Bitbon System, which allows ensuring its smooth operation, increasing the Bitbon System efficiency and functionalities, responding to the most current challenges of the industry in a timely manner.
9. At the same time, the Bitbon System transparency fully supports the philosophy of decentralization and publicity.

Based on the above-mentioned information, the decision to use a separate version of the Ethereum network is the most appropriate approach to implementing the Bitbon System development plan during the first stages described in the Bitbon System Roadmap.

Bitbon[i] digital asset[i], according to Provision 6 of the Bitbon System Public Contract, is an information technology asset and a key element of the Bitbon System infrastructure[i], which provides access to the functionalities of the Bitbon System infrastructure.

You can read the Software Specification from the Developer by following the link.

Bitbon, due to its nature, is a strictly limited resource of the Bitbon System[i] because it is limited to 100,000,000.00 Bitbon units[i].

Bitbon is a system-forming digital asset created by SIMCORD LLC as a result of tokenization of the initial asset[i] for Bitbon.

By its functional purpose, Bitbon is used to ensure:

• The method of management accounting by SIMCORD LLC of the right to use the functionalities of the Bitbon System infrastructure by Bitbon System Participants[i].
• Methods of financial and management accounting of their property and personal non-property rights by Bitbon System Users[i].
• The method of exercising their rights to manage the Bitbon System by Participants.

For the purposes of financial accounting, Bitbon is defined as an intangible asset in accordance with the International Financial Reporting Standards (IAS 38).

A digital asset[i] in the Bitbon System[i] is a form of fixation of the method of disposal of property in the Bitbon System Social Network[i], which envisions the synthesis of correlated data of the initial asset[i] (property), the original asset[i] (the property disposal agreement) and the distributed ledger token[i].

A digital asset is a type of tokenized assets[i] based on the derivativeness[i] as a generating factor.

Digital asset derivativeness is the basis for the Bitbon System legal nature and a legal relationship between the initial asset and the original asset for a digital asset, which is established automatically when creating a digital asset and is dynamically tracked through circulation of the digital asset units in the Bitbon System.

Additional issue of bitbons[i] in the Bitbon System[i] is impossible in accordance with Provision 7 of the Bitbon System Public Contract.

In accordance with paragraph 1 of Provision 16 of the Bitbon System Public Contract, the Bitbon System[i] envisions a service fee[i] paid by Bitbon System Users[i], including for the purpose of maintaining and developing the Bitbon System infrastructure[i]. The service fee consists of two parts: infrastructure fee and operation fee[i].

The infrastructure fee in the Bitbon System is part of the service fee for using the Bitbon System infrastructure, which is mandatory and deducted in Bitbon units[i].

To calculate the service fee, the base rate[i] expressed in Bitbon units is used. The mechanism for calculating the base rate is based on the principle that ensures the stability of the base rate in relation to the currencies of different countries when the price of bitbon[i] changes.

The terms of collection, the procedure for calculating and deducting service fees in the Bitbon System are established in the Appendix to the Bitbon System Public Contract Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution.

Contributing is a type of activity of a Bitbon System Participant[i] aimed at receiving additional benefit from participation in the implementation of the selected business project under the terms and conditions of the Projectbon Protocol of this project. Participation in the implementation implies financing of business projects by exchanging the Participant’s Bitbon units[i] for Projectbons, which is essentially an expression of the participation share and is directly proportional to the possible future benefit.

The benefit of contributing is designated in Bitbon units received in accordance with the amount of Projectbons that the Contributor[i] is entitled to dispose of, at his/her sole discretion, at any stage of the business project implementation in accordance with the terms and conditions of the Projectbon Protocol.

Contributing as an activity is possible only in the Bitbon System[i] and implies interaction of all its participants and the Bitbon System capitalization fund[i], which is the Contributor by definition and acts in the interests of all Bitbon System Participants.

You can learn more about contributing, its stages and the principle of interaction of all Bitbon System Users[i] in the contributing process by following the link.

According to the concept of digital system decentralization based on the distributed ledger[i] technology, Simcord has set the task to create the opportunity for Participants[i] to manage the Bitbon System[i] in order to ensure safe development and smooth functioning of the Bitbon System independently of Simcord.

Thus, in accordance with Provision 1 of the Bitbon System Public Contract, the Simcord activity is based on the ideology laid down in the Bitbon System and in the main goal stated in the Company’s mission.

In accordance with Provisions 1 and 20, in order to implement Provision 1, Simcord undertook the role of the First Bitbon System Operator[i] to perform a number of functions described in the Appendix to the Bitbon System Public Contract Bitbon System Operator.

Also, in accordance with Provision 20, when the minimum number of Bitbon System Operators[i] is reached, Simcord will make a decision to terminate the terms of transition period described in Provision 20, which will mean the transition of the Bitbon System to fully decentralized management by its Participants only.

The rules of obtaining the Bitbon System Operator status are published in the Appendix “Bitbon System Operator”.

The relevant information on the stages of the Bitbon System[i] development is provided in the Bitbon System Roadmap. We also encourage you to follow the News section on the official information resources of the Bitbon System[i].

The mechanism of building economy based on the distributed ledger[i] technology in the Bitbon System[i] assumes completely new forms of relations between its Users[i]. Accordingly, when adapting the mechanisms laid down in the Bitbon System to the old economic model, we have encountered imperfect legislation in most countries of the world and the lack of analogs for defining specific concepts and processes. In turn, this makes it difficult to develop new types of activities using digital technologies and distributed ledger technology in particular.

To solve the problem related to the lack of comprehensive legislative regulation of new forms of relations between Bitbon System Users at all levels as well as to protect their interests in the legal field, Simcord creates new terminology to be used in accordance with the norms of international law and regional legislation on the principle “everything which is not forbidden is allowed”.

Thus, by using new terms and their definitions within the Bitbon System, we solved the problem of adapting the mechanisms laid down in the Bitbon System to the old economy in countries whose legislation is still at the stage of transition to a new digital economy.

Since our method of conducting economic activity for a while will coexist with the old system, it has been adapted to it through the use of existing agreements that meet the requirements of international law as well as state legislation. Describing our method under the old principles of management, we can talk about it as a whole system or a chain of so-called multilevel related agreements. We gave names to some integral groups of such agreements (chain links) and introduced them into the Bitbon System as terms with corresponding definitions. This greatly simplifies understanding, since it is easier to use an existing term to describe the entire process.

This explains the need to create and introduce new terms into the Bitbon System.

To read all terms and definitions, which are used in the Bitbon System, follow the link.

Bitbon System Public Contract means a social contract of statutory nature, basic constitutive agreement between Simcord (SIMCORD LLC), the founder of the Bitbon System Social Network[i], and all Bitbon System Participants[i], where Simcord also acts as the First Bitbon System Operator[i].

This agreement identifies tasks and objectives of the Bitbon System[i], determines and establishes the basis for its development as well as stipulates a set of basic terms and conditions for the creation and use of tokenized assets[i] in the Bitbon System, fulfillment of which is mandatory for all Bitbon System Users[i].

In accordance with Provision 2, the Bitbon System Public Contract includes separate Appendices, which are an integral part of this agreement.

The Bitbon System Public Contract has been created based on the Simcord’s decision to issue bitbons[i] and to organize the Bitbon System decentralized autonomous community.

The main task of the Bitbon System Public Contract, as a social contract, is to create equal conditions for all Bitbon System Users.

The Bitbon System Public Contract is available at the link.

Bitbon System capitalization fund is a Bitbon System component[i] managed by Bitbon System Participants[i].

The purpose of the Bitbon System capitalization fund is to provide a mechanism that allows Participants to develop the Bitbon System[i] in the interests of all its Users[i].

The Bitbon System capitalization fund takes part in contributing[i] in accordance with the classes of Projectbon Protocols of specific business projects in order to increase the amount of Bitbon units[i] and Projectbons in the Assetbox[i] of the fund, thus promoting the growth of the Bitbon capitalization.