https://bithium.org

www.bithium.org

WHITEPAPER

CONTENTS PAGES

1. Abstract 3

What is Bithium? 3

2. Blockchain 4

3. Mathematical Representation 4

4. Proof-of-Work 5

5. Proof-of-Stake 7

6. Smart Contracts 8

7. Secure 9

8. Transparency 9

9. Staking 10

10. Mining 10

11. Disclaimer 13

12. Conclusion 13

13. Facts 14

1

Bithium: A Peer-to-Peer Electronic Cash

System

Abstract

A purely peer-to-peer version of electronic cash would allow online payments to be sent

directly from one party to another without going through a financial institution. Digital

signatures provide part of the solution, but the main benefits are lost if a trusted third

party is still required to prevent double-spending. We propose a solution to the double-

spending problem using a peer to peer network. The network timestamps transactions

by hashing them into an ongoing chain of hash-based POW/POS, forming a record that

cannot be changed without redoing the POW/POS. The longest chain not only serves as

proof of the sequence of events witnessed, but proof that it came from the largest pool

of CPU power. As the blockchain industry expands and the number and value of crypto

assets increase, the market for crypto-investing and speculation will also grow. Crypto

markets are borderless, open 24/7, subject to minimal regulatory control, and offer

huge potentials for growth. Because of these characteristics, crypto markets represent

an incredible, new opportunity for investors over traditional markets. Currently, the

crypto-investment market is primed to attract new investors into the blockchain

industry. However, the learning curve for investing in crypto assets is extremely steep

and the marketplace lacks sophisticated tools and information products that will

encourage new users to make the jump into the crypto community.

What is Bithium?

Bithium (BTH) is a digital currency that can be sent between people over the internet.

Bithium (BTH) stays true to the original vision of cryptocurrency: a financial system

owned by its users, the people’s coin. Bithium (BTH) is not controlled by large banks or

mining hardware manufacturers and can be mined by anyone profitably.

Bithium (BTH) is an open source, blockchain based, decentralized cryptocurrency that

enables instant payments to anyone with minimum transaction fees. Bithium also allows

you to earn interest for helping maintain security on the network by holding BTH in a Qt

Desktop wallet that is attached to the network and allowing transactions to flow

through it. A finite resource similar to gold, you can rest assured that Bithium (BTH) will

keep your money safe from vested interests and ensure that transaction fees are

proportionate and shared between a large number of miners. With Bithium (BTH), you

can truly be your own bank. Bithium (BTH) is an open source, peer-to-peer,

community driven decentralized cryptocurrency that allow people to store and invest

their wealth in a non-government controlled currency, and even earn a substantial

interest on investment. We have seen counterparty reduction emerge in e-commerce,

where goods are now often purchased straight from manufacturers. In financial

services, the trend up until now has seen financial technology companies building their

businesses by piggybacking off existing infrastructure to create better solutions for

individual products. For example, remittance companies have emerged simply because

they could process bank wires faster in various countries.

However, such technologies have created numerous counterparties. By being a core

participant in financial markets, Bithium (BTH) can provide many services without the

need for such counterparties.

2.

Blockchain

The Bithium Blockchain focuses on addressing critical issues related to community

adoption and sustainability. This means that people who find themselves using the

currency mined on this blockchain must be able to maintain their sovereignty by

protecting their balances in such a way that adversaries cannot analyze and make

targets of the users. Therefore, the currency must employ anonymizing features to

protect the people who use it.

Secondly, users should be able to exercise activities over the blockchain, in this case

exposing a marketplace where people can buy and sell the things that they want and

need from other people without leaving the confines of the Bithium peer to peer

network. In addition, the sustainability aspect depends on the blockchain not being

constrained and prone to spam attacks due to full blocks as is the case with Bitcoin.

3.

Mathematical Representation

A blockchain protocol is fundamentally a monadic implementation of concurrent

mutations of a global state. This is achieved by defining “blocks” as operators acting on

this global state.

The free monoid of blocks acting on the genesis state forms a tree structure. A global,

canonical, state is defined as the minimal leaf for a specified ordering.

This suggests the following abstract representation:

- Let (S,≤) be a totally ordered, countable, set of possible states.

- Let⊘ ∈/ S represent a special, invalid, state.

- Let B⊂ S S∪{⊘} be the set of blocks.

The set of valid blocks is B ∩ S S. The total order on S is extended so that ∀s ∈ S,

? < s. This order determines which leaf in the block tree is considered to be the

canonical one. Blocks in B are seen as operators acting on the state.

All in all, any blockchain protocol (be it Bitcoin, Litecoin, Peercoin, Ethereum,

Cryptonote, etc) can be fully determined by the tuple:

( S,≤, ⊘, B ⊂ S S∪{⊘})

The networking protocol is fundamentally identical for these blockchains. “Mining”

algorithms are but an emergent property of the network, given the incentives for

block creation.

In Bithium, we make a blockchain protocol introspective by letting blocks act on the

protocol itself. We can then express the set of protocols recursively as

P = {(S, ≤, ⊘, B ⊂ S (S×P) ∪{⊘})}

4.

Proof-of-Work

To implement a distributed timestamp server on a peer-to-peer basis, we will need to

use a proof- of-work system similar to Adam Back's Hashcash [6], rather than newspaper

or Usenet posts. The proof-of-work involves scanning for a value that when hashed,

such as with SHA-256, the hash begins with a number of zero bits. The average work

required is exponential in the number of zero bits required and can be verified by

executing a single hash.

For our timestamp network, we implement the proof-of-work by

incrementing a nonce in the block until a value is found that gives the block's hash the

required zero bits. Once the CPU effort has been expended to make it satisfy the proof of

work, the block cannot be changed without redoing the work. As later blocks are chained

after it, the work to change the block would include redoing all the blocks after it. Block lock

Prev Hash Nonce Prev Hash Nonce Tx Tx ... Tx Tx ...

The proof-of-work also solves the problem of determining representation in

majority decision making. If the majority were based on one-IP-address-one-vote,

it could be subverted by anyone able to allocate many IPs. Proof-of-work is

essentially one-CPU-one-vote. The majority decision is represented by the

longest chain, which has the greatest proof-of-work effort invested in it. If a

majority of CPU power is controlled by honest nodes, the honest chain will grow

the fastest and outpace any competing chains. To modify a past block, an attacker

would have to redo the proof-of-work of the block and all blocks after it and then

catch up with and surpass the work of the honest nodes. We will show later that

the probability of a slower attacker catching up diminishes exponentially as

subsequent blocks are added. To compensate for increasing hardware speed and

varying interest in running nodes over time, the proof-of-work difficulty is

determined by a moving average targeting an average number of blocks per hour.

If they're generated too fast, the difficulty increases.

5.

Proof-of-Stake

Bithium can implement any type of blockchain algorithm: proof-of-work, proof-of-

stake, or even centralized. Due to the shortcomings of the proof-of-work

mechanism, the Bithium seed protocol implements a proof-of-stake system.

There are considerable theoretical hurdles to designing a working proof-of-stake

system, we will explain our way of dealing with them. Is Proof-of-Stake

Impossible? There are very serious theoretical hurdles to any proof-of-stake

system. The main argument against the very possibility of a proof-of-stake system

is the A full, technical, description of our proof-of-stake system is already given in

the Bithium white paper. A new user downloads a client and connects for the first

time to the network. He receives a tree of blocks with two larges branches

starting from the genesis hash. Both branches display a thriving economic activity,

but they represent two fundamentally different histories. One has clearly been

crafted by an attacker, but which one is the real chain? In the case of Bitcoin, the

canonical blockchain is the one representing the largest amount of work. This

does not mean that rewriting history is impossible, but it is costly to do so,

especially as one’s hashing power could be used towards mining blocks on the

real blockchain. In a proof-of-stake system where blocks are signed by

stakeholders, a former stakeholder (who has since cashed out) could use his old

signatures to costless fork the blockchain — this is known as the nothing-at-stake

problem.

6.

Smart Contracts

Though Bitcoin does allow for smart contracts, most of its opcodes have been

historically disabled and the possibilities are limited. Ethereum introduced a smart

contract system with some critical differences: their scripting language is Turing

complete and they substitute tasteful accounts to Bitcoin’s unspent outputs.

While emphasis has been put on the Turing complete aspect of the language, the

second property is by far the most interesting and powerful of the two. In Bitcoin,

an output can be thought of as having only two states: spent and unspent. In

Ethereum, accounts (protected by a key) hold a balance, a contract code and a

data store. The state of an account’s storage can be mutated by making a

transaction towards this account. The transaction specifies an amount and the

parameters passed to the contract code. A downside of a Turing complete

scripting language for the contracts is that the number of steps needed to execute

a script is potentially unbounded, a property which is generally incomputable. To

address this problem, Ethereum has devised a system by which the miner

validating the transaction requires a fee proportional to the complexity and

number of steps needed to execute the contract. Yet, for the blockchain to be

secure, all the active nodes need to validate the transaction. A malicious miner

could include in his block a transaction that he crafted specially to run into an

infinite loop and pay itself an exorbitant fee for validating this transaction. Other

miners could waste a very long time validating this transaction. Worse, they could

just slack and fail to validate it. In practice though, most of the interesting smart

contracts can be implemented with very simple business logic and do not need to

perform complex calculations. Our solution is to cap the maximum number of

steps that a program is allowed to run for in a single transaction. Since blocks

have a size limit that caps the number of transactions per block, there is also a cap

on the number of computation steps per block. This rate limitation foils CPU

usage denial of service attacks. Meanwhile, legitimate users can issue multiple

transactions to compute more steps than allowed in a single transaction, though

at a limited rate. Miners may decide to exclude too long of an execution if they

feel the included fee is too small. Since the Bithium protocol is amendable, the

cap can be increased in future revisions and new cryptographic primitives

included in the scripting language as the need develops.

7.

Secure

People use different encryption techniques to authenticate the transfer of money,

which is self-governing (that is, it is not dependent on central bank) and

synchronize the generation of the units of the currency in decentralized

currencies. Crypto-currencies are decentralized; and as a digital currency, it offers

a definite and secure environment. Moreover, it has made possible to gather

individual wealth without any hassle, which was unachievable and anonymous.

8.

Transparency

In crypto-currencies, all of the transactions are obvious. The flow of currency

transactions is very simple. So if there is any invalid or fake details related to the

person using the system provided, the high level transparency of this

decentralized currency can easily identify the real fact.

9.

Staking

You can deposit you Bitcoins, Litecoin, Dashcoin & other AltCoin at the BTH

exchange and then Bithium coin. You can then deposit you Bithium coin in your

Windows, Mac and Linux wallet. The profit depends on the amount of coins

deposited by you. The higher the coins the more will be the earned profit. As

Bithium Coin’s blockchain technology will give you bonus you when you hold your

coin and your coin will be used to stake. It is a way to confirm transaction for the

system, the more you keep Bithium Coin, the more bonuses you earn from

Staking. This means that if you just hold your coin in your wallet over time, and

your coins are not used for Staking, you could miss substantial benefit. So, if you

have Bithium Coin that you are not involved in trading then you should be

involved in staking. With Bithium Coin, you are always guaranteed to earn profit

in one way or another.

10.

Mining

You can also earn profits by mining Bithium Coin. You need to invest in hardware

resources, (CPU and GPU or ASIC) and using POW for mining Bithium Coin.

You just need to download miner for mining BTH and start Bithium coin mining.

What is Bithium mining?

Bithium mining is a lot like a giant lottery where you compete with your mining

hardware with everyone on the network to earn bithium. Faster Bithium mining

hardware is able to attempt more tries per second to win this lottery while the

Bithium network itself adjusts roughly every two weeks to keep the rate of finding

a winning block hash to every ten minutes. In the big picture, Bithium mining

secures transactions that are recorded in Bithium's public ledger, the block chain.

By conducting a random lottery where electricity and specialized equipment are

the price of admission, the cost to disrupt the Bithium network scales with the

amount of hashing power that is being spent by all mining participants.

Technical Background

During the starting of the mining, your Bithium mining hardware runs a

cryptographic hashing function (two rounds of SHA256) on what is called a block

header. For each new hash that is tried, the mining software will use a different

number as the random element of the block header, this number is called the

nonce. Depending on the nonce and what else is in the block the hashing function

will yield a hash which looks something like this:

83ef6f358fbb553c60802496764352290d4c63735b7fe5bdaac821de96a53a9a

You can look at this hash as a really long number. (It's a hexadecimal number,

meaning the letters A-F are the digits 10-15.) To ensure that blocks are found

roughly every ten minutes, there is what's called a difficulty target. To create a

valid block your miner has to find a hash that is below the difficulty target. So if

for example the difficulty target is

1000000000000000000000000000000000000000000000000000000000000000

Any number that starts with a zero would be below the target, e.g.:

0787a6fd6e0782f7f8058fbef45f5c17fe89086ad4e78a1520d06505acb4522f

If we lower the target to

0100000000000000000000000000000000000000000000000000000000000000

We now need two zeros in the beginning to be under it:

00db27957bd0ba06a5af9e6c81226d74312a7028cf9a08fa125e49f15cae4979

Because the target is such an unwieldy number with tons of digits, people

generally use a simpler number to express the current target. This number is

called the mining difficulty. The mining difficulty expresses how much harder the

current block is to generate compared to the first block. So a difficulty of 70000

means to generate the current block you have to do 70000 times more work than

Dev Who had to do generating the first block. To be fair, back then mining

hardware and algorithms were a lot slower and less optimized.

To keep blocks coming roughly every 5 minutes, the difficulty is adjusted using a

shared formula every 2016 blocks. The network tries to change it such that 2016

blocks at the current global network processing power take about 14 days. That's

why, when the network power keep rising, the difficulty rises as well.

Mining Hardware

ASIC

The bithium mining world is now solidly in the Application Specific Integrated

Circuit (ASIC) era. An ASIC is a chip designed specifically to do one thing and one

thing only. Unlike FPGAs, an ASIC cannot be repurposed to perform other tasks.

An ASIC designed to mine bithium can only mine bithium and will only ever mine

bithium. The inflexibility of an ASIC is offset by the fact that it offers a 100x

increase in hashing power while reducing power consumption compared to all the

previous technologies. Unlike all the previous generations of hardware preceding

ASIC, ASIC may be the "end of the line" when it comes to disruptive mining

technology. CPUs were replaced by GPUs which were in turn replaced by FPGAs

which were replaced by ASICs. There is nothing to replace ASICs now or even in

the immediate future. There will be stepwise refinement of the ASIC products and

increases in efficiency, but nothing will offer the 50x to 100 x increases in hashing

power or 7 x reductions in power usage that moves from previous technologies

offered. This makes power consumption on an ASIC device the single most

important factor of any ASIC product, as the expected useful lifetime of an ASIC

mining device is longer than the entire history of bithium mining.

It is conceivable that an ASIC device purchased today would still be mining in two

years if the device is power efficient enough and the cost of electricity does not

exceed its output. Mining profitability is also dictated by the exchange rate, but

under all circumstances the more power efficient the mining device, the more

profitable it is. If you want to try your luck at bithium mining then this Bithium

miner is probably the best deal after the successful of completing our bithium

mining pool.

11.

Disclaimer

This whitepaper does not provide any type of legally binding contract. Bithium

coin Team does not accept any legal liability arising from the material contained in

this whitepaper. Anyone looking to invest in cryptocurrency should seek

professional advice regarding tax regulations and legislations in their local area.

The material provided here represents our current plans for the cryptocurrency

platform. The details may change (including ICO distribution plans) and should not

be considered finalized. Bithium coin co-founders and employees do not offer

investment advice under any circumstances. No entity is legally bound or

contractually obligated by the transferring of Bithium coin or fiat currency.

Contributions from investors should be seen as that, a contribution towards the

project.

Bithium Team and all persons associated with the company are in no way

arranging, dealing or advising on regulated financial investments.

12.

Conclusion

We have outlined a path that will solve the most important issues that face

crypto-currencies today. Those of fair currency distribution considered a global

infrastructure that is being cultivated for the long term. Bithium is more than just

a coin. It’s a technology poised to disrupt the entire payment industry covering

peer to peer payments and mass payments. It is like of a revolution in the peer to

peer crypto-currency payment world.

Traditional payment system requires efforts to manage & maintain the systems.

While in the case of Bithium coin, less maintenance with nearly less transaction

fees puts up maximum benefits to the users of Bithium coin. Bithium coin offers

not only a decentralized payment mechanism based on the blockchain, but also a

sustainable economy that produces, manages & securely send/receive large

number of transactions each & every second. Last but not the least; the Bithium

Coin is just going to be the first leading peer to peer crypto- currency to manage

the high value instant payments.

13.

Facts Coin Name - Bithium Abbreviation – BTH Algorithm – Scrypt Types – Proof-of Work / Proof-of Stake Total Coin Supply – 21 Million Block Reward – 25 Coins Proof-of-Stake Percentage – 35% per Year Coin base Maturity - 50 Blocks Target Timespan – 1 Block Transaction Confirmations – 6 Blocks Target Spacing – 60 Seconds Last POW Block - 10000