Origin of the Bitbon Name

Throughout the whole period of the development and creation of the Bitbon System concept, one of our main principles was to focus on historical facts and the valuable experience gained by the humankind. Thus, we projected our own vision of future prospects as well as the results of our scientific research and experiments on the well-known phenomena. We chose this path consciously, as we were confident that it would lead us to the main goal.

Since the emergence of our bold and progressive idea of creating a unique financial instrument and a mechanism for its vast practical application, it was clear that we had to choose a name for it — a name that would contain a unique identity and reflect its true nature at the same time. We consulted archives and found terms, definitions of which had already been “forgotten” for objective reasons. Among such terms, we discovered the notion “bon” (the term of the financial law), i.e. forms of binding documents that had already been withdrawn from circulation. However, we decided to give this notion a completely new life as the principle laid down in the “bon” seemed very interesting for us to use it in our definition.

Meanwhile, the digital technologies were developing very rapidly, and our specialists conducted a lot of studies to determine what significant discoveries we could use in this field in order to achieve the desired goals. Thus, we came to a decision that, on the basis of the studied meaning and properties of “bon” as such and by adding the fundamentally new features of the structure and functioning of our innovative system to this concept, we could get the most exact notion in order to name a unique financial instrument. Taking into account the steady global trends in the development of electronic information storage and the emergence of alternative methods for its transmission, we determined that the name would come together with the modern digital world and reflect its functional basis. Therefore, it was “bit” (a measurement unit of the amount of information) and “bon” that reasonably determined the formation of our notion and allowed us to show its practical nature.

Thus, a completely new name — Bitbon[1] appeared.

bit

A measurement unit of the amount of information in the binary system, which consists of a single binary code.

bon

A derivative financial instrument[2] that gives its owner the right to receive certain assets from a certain person or a company.

Thus, each Bitbon System Participant becomes the owner of a certain part of property rights to Assets[3] designated in Bitbons or Projectbons and shown as an alphanumeric indicator as well as registered in the Blockchain by creating a Projectbon Public Contract[4], the fulfillment of which causes certain events in the real world or in digital systems.

1 Bitbon means a digital derivative financial instrument having an identifier and nominal value in the amount determined in accordance with the procedure stipulated by the Bitbon System Public Contract, which corresponds to a certain part of property rights to Assets designated in Bitbons or Projectbons. Any operations with Bitbon (Bitbon issuing, its transfer from one owner to another, splitting of nominal value and other operations) are recorded in the Blockchain as data that cannot be deleted or modified.

2 Derivative financial instrument means an agreement (contract) under which the parties are entitled or undertake to perform certain actions with respect to the underlying asset.

3 Assets mean property that is legally owned by the Bitbon System User, including real estate, bank deposits, machinery and production equipment, securities, patents, trademarks, know-how, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals, Bitbons or Projectbons of another Bitbon System User and other assets.

4 Projectbon Public Contract means a digital document of a certain class according to the classifier accepted in the Bitbon System, which defines and regulates: rights and obligations of the Contractat, Bitup-Agency and Contributors as well as the procedure, manner and conditions of their relations as three parties to the Projectbon Public Contract of a specific project; field of Projectbon use, as well as all products and operations that may be applied to Projectbon. The Projectbon Public Contract of a specific project can define the terms and procedures for Projectbon issuing, Bitbon and Projectbon transfer rules, procedure for repurchasing Projectbons from the Contributor as well as the reference to the procedure for evaluating Assets.