During the first stage of its development, the Bitbon System[i] uses the blockchain[i] 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 blockchain 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 component as Bitbon Transfer as well as simple interfaces for Users[i] and APIs for integration of Partners.
Bitbon Transfer provides the ability to transfer bitbons[i] to other Users by means of a protection code, which has an adjustable validity period; it also provides cold storage of bitbons 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, Bitbon Transfer uses several security systems built into the nodes of the Bitbon System blockchain 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 and Partners 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 blockchain, which will significantly increase the network scalability and, therefore, the performance and functionality 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 Company, which specializes in developing and producing high-load software solutions based on the blockchain[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.
During the third stage of the Bitbon System[i] development, in accordance with the information published in the Bitbon System Roadmap, Simcord plans to release software under an open-source license in order to attract third-party developers and fully implement all Clauses of the Bitbon System Public Contract, which, in its turn, will mean the transition of the Bitbon System to the completely decentralized management by its Participants[i] only, in accordance with Clause 67[i] of the Bitbon System Public Contract.
The decision to use a separate version of the Ethereum blockchain[i] during the early development stages of the Bitbon System[i] offers the following advantages:
- 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 blockchain as a basis, the Company was able to concentrate its efforts on improving the safety, speed and reliability of the blockchain operation.
- It gave the Company an opportunity to significantly increase the development speed of new Bitbon System services 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.
- Bitbon System Users[i] receive all the benefits of the blockchain, 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.
- Development of technical solutions based on a separate version of the Ethereum blockchain 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.
- 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 blockchain.
- Such an approach to creating the Bitbon System software components 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 blockchain according to the Bitbon System development plan.
- The current level of technical implementation of the Bitbon System allows storing alias, icon and public service information in the blockchain for Bitbon[i] transfers and other services in the Bitbon System, which is impossible in the original version of the Ethereum blockchain and other similar platforms.
- In accordance with Clause 1[i] of the Bitbon System Public Contract Simcord as the Bitbon System Operator can effectively control and improve the Bitbon System, which allows ensuring its smooth operation, increasing the Bitbon System efficiency and functionality, responding to the most current challenges of the industry in a timely manner.
- 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 blockchain is the most appropriate approach to implementing the Bitbon System development plan during the first stages described in the Bitbon System Roadmap.
The Bitbon System[i], being a platform based on the distributed ledger technology[i] (blockchain[i]), provides its Users[i] with access to the services of the Bitbon System by using the Bitbon digital asset for equal exchange of Bon[i] and Projectbon[i] digital assets, which are derivative of values[i], that include property, products, rights (property and/or non-property), services and works, without intermediaries and money, as well as allows conducting specific types of activity in the Bitbon System, including mining and Contributing[i], in accordance with the terms and conditions specified in the Bitbon Protocol[i], Bitbon System Public Contract, as well as Bon[i] and Projectbon[i] Protocols of specific projects.
The Bitbon digital asset is the regulator of legal relations between Bitbon System Users, while Bon and Projectbon digital assets are the regulators of legal relations between the owner of a specific Bon and/or Projectbon digital asset and the owner of a specific value that the specific Bon or Projectbon derives from. Such legal relations fall into the category of law of obligations and are recognized by all Bitbon System Users.
By their nature, all digital assets of the Bitbon System are information resources[i]; therefore, for accounting purposes, they must be considered as intangible assets (IA). They must be recorded in accounting documentation in accordance with the International Financial Reporting Standards (IFRS) 38 “Intangible Assets” dated January 1, 2012.
In accordance with Clauses 21[i], 22[i], 23[i], 24[i], 25[i], 26[i] of the Bitbon System Public Contract, digital assets[i] in the Bitbon System[i] are backed. It is achieved due to mechanisms, which are implemented through the asset Digitization Procedure[i]. The principle of backing of digital assets in the Bitbon System can be represented as follows:
- Creation of a unique digital copy of the asset[i], which represents the property right to this asset.
- Creation of a Divaunit[i], which contains a reference to a unique digital copy of the asset and confirms its availability in the Bitbon System.
- Projectbon[i] and Bon[i] are backed by Divaunit(s), which is/are an object of ensuring the obligations of the owner of the value[i] to the owner of the digital asset.
- In the IBO[i] process, certain part of Projectbons of a business project is allocated to the Bitbon System Capitalization Fund[i]. The Bitbon[i] digital asset is backed based on the Bitbon Protocol[i] as well as based on the total amount of Projectbons, which belong to the Bitbon System Capitalization Fund.
Thus, we can clearly see that all digital assets in the Bitbon System are fully backed by means of the mechanisms described above.
Additional issue of Bitbons[i] in the Bitbon System[i] is impossible in accordance with Clause 4[i] of the Bitbon System Public Contract.
The Bitbon System[i] has a multi-level system for protecting Users’[i] personal details. The Bitbon System blockchain[i] excludes the possibility of modifying data by third-party nodes of the network, which prevents the possibility of data integrity violation by 99.9%.
Stages of Bitbon Distribution
Based on Clauses 3[i], 5[i] and 6[i] of the Bitbon System Public Contract, Simcord chose a strategy of the Bitbon System[i] development and bitbon[i] distribution in order to organize and automate technological interaction between all Bitbon System Users[i] by providing them with access to the single digital space and making available all the tools necessary for conducting activity within the Bitbon System. Thus, Simcord determined the Bitbon pricing policy for the first stage of the Bit Trade service launch (www.bit.trade) within the crowdsale. This means that during the second development stage of the Bit Trade service, starting from November 16, 2018, the market pricing principle has been in effect.
Therefore, until October 10, 2018, during the first stage of the Bit Trade service launch, it was possible to purchase bitbons at the price determined by a special formula and calculated online based 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.
Such approach to determining the Bitbon price during the first stage of the Bitbon System launch was based on the desire to provide it with maximum stability and growth potential using market methods during the second stage of Bitbon pricing.
In fact, the Bitbon cost was calculated at each price level depending on the total number of bitbons purchased at all previous price levels.
This pricing method was selected to provide Bitbon[i], with maximum stability and potential for more intensive growth using market methods during the second stage of Bitbon pricing. Another goal was to provide a sufficient period of time so that the people wishing to become the Bitbon System Participants[i] could purchase Bitbons at the most optimal price. Later on, there may be a more intensive price increase due to the fact that the Bitbon System[i] prepares for the launch of Contributing[i] and, as a result, due to new Users[i] joining the Bitbon System, who are interested in using the Bitbon System potential to finance their business projects in the real sector of economy.
In accordance with Clause 5[i] of the Bitbon System Public Contract, 70,000,000 bitbons[i] were transferred by Simcord to the Assetbox[i] of the Bitbon System Capitalization Fund[i] for further distribution during the pre-sale and crowdsale stages before October 10, 2018, in compliance with the Bitbon System Roadmap.
In accordance with Clause 7[i] of the Bitbon System Public Contract, as the founder of the Bitbon System[i], Simcord reserves 30,000,000 bitbons[i] in its Assetbox[i] to use them as the Bitbon System Participant[i] for the creation and implementation of innovative solutions, as well as for support, update and development of the intellectual, software and hardware infrastructure of the Bitbon System.
The funds received from distributing bitbons[i] are at the disposal of Simcord Company and are directed to implementing the Bitbon System[i] development stages, including the creation and implementation of innovative solutions, as well as support, update and development of the intellectual, software and hardware infrastructure of the Bitbon System.
The blockchain[i]-based solutions that use the Bitbon System[i] software do not need to attract third-party non-profit organizations that could contribute to the growth or maintenance of the network, since such blockchain-based solutions will be financed by Simcord itself. It is assumed that any blockchain-based solution on the Bitbon System software will generate a natural profit of the Bitbon System Capitalization Fund[i].
Based on the public crowdsale results, Simcord, as the founder of the Bitbon System[i], has decided to redistribute the number of bitbons[i] left in the Assetbox[i] of the Bitbon System Capitalization Fund[i].
Thus, 30,000,000 bitbons were transferred from the Assetbox of the Bitbon System Capitalization Fund to the Assetbox of the Mining Fund[i] for further distribution among the Bitbon System Miners[i], based on the quantity and quality of the resources utilized by each Miner individually in accordance with Clause 61[i] of the Bitbon System Public Contract.
400,000 bitbons were transferred to the Assetbox “Pre-Sale Bitbon Certificates & Affiliate-Promo” in order to replenish funds reserve.
In accordance with Clause 6[i] of the Bitbon System Public Contract, the number of bitbons remaining in the Assetbox of the Bitbon System Capitalization Fund, will be used by the Fund in Contributing[i] in order for Bitbon to be backed by real assets[i] for the benefit of all Bitbon System Participants[i].
Taking into account the current trends and the pace of the digital economy development as well as enormous potential of the Bitbon System[i], we have developed a strategy for launching the Bitbon System in several stages.
This strategy has been developed taking into account various factors for its maximum efficiency and is conducted in three main stages:
- Since March 13, 2017, within the pre-sale stage, the sale of electronic Bitbon Certificates stage, where Simcord Advanced Marketing Solutions LLP acted as the offeror.
The need to study the market and understand how interesting the innovative concept of the Bitbon System is for the business community was the purpose of the first stage. In addition, a special formula for Bitbon[i] pricing was determined to be used until the beginning of the period of the market price formation. Thus, the Company provided its Partners and Customers with the pre-emptive right to purchase electronic Bitbon Certificates of a certain nominal value.
- On March 13, 2018, during the internal crowdsale stage, the Company implemented the possibility of registering electronic Bitbon Certificates in the Bitbon System blockchain[i] on the Bit Trade service website (www.bit.trade). On April 14, 2018, Simcord provided the opportunity for Customers of the UBK Markets investment service to transfer their funds to bitbons by taking advantage of Bitbon cost during the internal crowdsale stage.
- Public crowdsale started on June 17, 2018. Since that moment, Bitbon was freely available for sale and for purchase according to the Bitbon System Roadmap until October 10, 2018 by using popular and available services.
Thus, the Company’s strategy for selling bitbons during pre-sale, internal crowdsale and public crowdsale stages contributed not only to the global popularization of the Bitbon System and the potential laid down in its economic model among the business-oriented community, but also to the planned, predictable growth of the Bitbon price.
Types of Activity in the Bitbon System
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[i] of this project. Participation in the implementation implies financing of business projects by exchanging the Bitbon System Participant’s bitbons[i] for Projectbons[i], 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 bitbons 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 blockchain[i] technology, Simcord Company 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 Company.
Thus, in accordance with Clause 67[i] 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 Clause 1[i], in order to implement Clause 67, Simcord undertook the role of the first Bitbon System Operator[i] to perform a number of functions described in Clauses 47[i], 48[i], 49[i], 50[i], 51[i] of the Bitbon System Public Contract.
Also, in accordance with Clause 67, when the minimum number of Bitbon System Operators is reached, Simcord will make a decision to terminate the terms of transition period described in Clause 66[i], which will mean the transition of the Bitbon System to fully decentralized management by its Participants only.
In accordance with Clause 12[i] of the Bitbon System Public Contract, the rules of obtaining the Bitbon System Operator status will be published in the Appendix “Bitbon System Operator”.
The mechanism of building economy based on the blockchain[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 blockchain 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 digital document, a type of social contract of statutory nature, basic constitutive agreement between Simcord Company (SIMCORD LLC), the founder of the Bitbon System[i], and all Bitbon System Participants[i], where Simcord also acts as the Bitbon System Operator[i].
This agreement identifies tasks and objectives of the Bitbon System, 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 digital assets[i] in the Bitbon System, fulfillment of which is mandatory for all Bitbon System Users[i].
In accordance with Clause 12[i], 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 Company’s decision to issue bitbons 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 following link: www.bitbon.space/en/bitbon-system-public-contract.
Bitbon System Capitalization Fund is an integral component of the Bitbon System[i], whose assets[i] are designated in bitbons[i] and Projectbons[i], and which, according to Clause 40[i] of the Bitbon System Public Contract, belongs to all Bitbon System Participants[i] in parts equal to the number of bitbons in the Assetboxes[i] of these Participants.
The purpose of the Bitbon System Capitalization Fund is to provide a mechanism that allows Bitbon System Participants to develop the Bitbon System through Contributing[i] of the Fund in the interests of all its Users[i] by increasing the volume of the overall Bitbon System Capitalization[i].
By means of Contributing, the Bitbon System Capitalization Fund must transfer bitbons to the Masterbox[i] of the Contractat’s[i] project in the volume that corresponds to a certain number of the declared Projectbons to start implementing the terms and conditions of the Projectbon Protocol[i].
According to the Contributing of the Bitbon System Capitalization Fund to Projectbons of various projects, the benefit designated in bitbons, which the Fund’s Assetbox receives, is used for the Fund’s participation in the implementation of other business projects by means of Projectbons.
The number of bitbons and Projectbons available in the Fund’s Assetbox is increasing, which contributes to the Bitbon Capitalization[i].
IBO (Initial Business Offering) is a process in the Bitbon System[i], which is launched by the Bitup-Agency[i] in order to attract the number of bitbons[i] specified in the Projectbon Protocol[i] from Contributors[i] for implementing the Contractat’s[i] business project.
The IBO process starts when the Bitup-Agency adds the IBO Certificate[i] of a specific project to the Business Projects Register. From this moment on, the terms and conditions of the Projectbon Protocol of this business project automatically come into force.
The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons of a specific project.