Introduction
Welcome To Bitcoin Spark
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In the rapidly evolving landscape of digital currencies, the quest for a secure, efficient, and user-friendly cryptocurrency has been an ongoing challenge. With the introduction of Bitcoin Spark, we are proud to present a groundbreaking solution that addresses the limitations of traditional cryptocurrencies and ushers in a new era of digital transactions.
Bitcoin Spark is a cutting-edge cryptocurrency designed to provide users with unparalleled security, speed, and scalability. This technical whitepaper delves into the innovative architecture and features that set Bitcoin Spark apart from existing cryptocurrencies, such as Bitcoin and Ethereum. By leveraging state-of-the-art blockchain technology, advanced consensus algorithms, and a unique governance model, Bitcoin Spark aims to revolutionize the way we perceive and utilize digital currencies in our everyday lives.
In the following sections, we will explore the core components of Bitcoin Spark, including its underlying technology, network infrastructure, and tokenomics. We will also discuss the problems it seeks to solve and the various use cases it enables. By the end of this whitepaper, you will gain a comprehensive understanding of the immense potential that Bitcoin Spark holds in transforming the cryptocurrency landscape and shaping the future of digital transactions.
History of Bitcoin
How Bitcoin became the future of money
The history of Bitcoin is rooted in the ideologies of two distinct groups from the late 20th century: Extropians and Cypherpunks. Extropians were a group of futurists who believed in using technology to extend human life and cognitive abilities. They saw the internet as a tool for enhancing human existence, and one of their goals was to create a new kind of currency that would be free from government control. On the other hand, Cypherpunks were a group of privacy advocates who aimed to create systems that would offer strong privacy guarantees and allow people to communicate and transact securely. They saw cryptography as the key to achieving this goal and started developing various cryptographic tools and systems.
The two groups had a significant overlap in their objectives and, over time, began to influence each other. The Extropians and Cypherpunks both held a mutual conviction in the strength of decentralization and the capacity of technology to challenge prevailing power systems. The concepts and aspirations they presented would subsequently establish the foundation for the creation of Bitcoin and additional digital currencies.
The idea of a digital currency that is not controlled by any central authority was conceived long before Bitcoin. In the early 1990s, several digital payment systems were developed by various individuals and groups, inspired by the ideologies of Extropians and Cypherpunks. Many of these early digital payment systems were based on the idea of using cryptography to secure transactions and ensure privacy. However, they were unsuccessful in gaining widespread adoption, and most eventually failed.
Before the emergence of Bitcoin, several attempts were made to create digital currencies that would enable secure transactions without the need for a trusted third party. Some of these pioneering digital payment systems include Digicash, e-gold, and Bit Gold. Digicash was introduced in the early 1990s by cryptographer and privacy advocate David Chaum. It was an electronic payment system that used digital tokens and cryptography to ensure the security and privacy of transactions. However, Digicash failed to gain traction due to various factors, including regulatory issues and its centralized nature.
Launched in 1996 by Douglas Jackson and Barry Downey, e-gold was an early effort to establish a digital currency. This payment platform enabled users to conduct transactions with digital tokens supported by actual gold. E-gold reached millions of global users at its height, but ultimately faced numerous legal and regulatory obstacles, leading to its closure in 2009. In 1998, Nick Szabo proposed Bit Gold, a forerunner to Bitcoin, with the goal of developing a decentralized digital currency through cryptographic proof-of-work. Despite never being fully realized, Bit Gold played a significant role in shaping the evolution of Bitcoin and other digital currencies.
Bitcoin, a decentralized digital currency, employs cryptography for securing transactions and managing the production of new units. It was launched in 2008 by an unidentified individual or group using the alias Satoshi Nakamoto. The Bitcoin concept was initially outlined in a whitepaper called "Bitcoin: A Peer-to-Peer Electronic Cash System," which was shared on a cryptography-focused mailing list.
The Bitcoin network became operational on January 3, 2009, when Satoshi Nakamoto mined the inaugural Bitcoin block, referred to as the genesis block. The first-ever Bitcoin transaction occurred on January 12, 2009, when Satoshi Nakamoto transferred 10 BTC to a software engineer named Hal Finney. During its early stages, Bitcoin was predominantly utilized by a niche group of enthusiasts intrigued by its technological possibilities and the notion of a decentralized form of currency.
As the Bitcoin network grew, it began attracting a wider audience's attention, including investors, entrepreneurs, and developers. Over time, various businesses and services started accepting Bitcoin as a form of payment, and its market value increased significantly. This growth led to the development of ab extensive ecosystem around Bitcoin, including exchanges, wallets, and various other tools and services.
The rise of Bitcoin has not been without its challenges and controversies. The Bitcoin community has faced internal disagreements and conflicts, often referred to as "The Bitcoin Wars." These disputes have centered around various issues, such as the size of the blocks in the Bitcoin blockchain, the direction of the technology, and the role of developers and miners in shaping the future of Bitcoin.
One of the most significant conflicts in the history of Bitcoin was the block size debate, which started in 2015 and lasted until 2017. The dispute revolved around whether to increase the maximum block size to accommodate more transactions per block, thereby increasing the network's capacity. The debate led to a split in the Bitcoin community, creating a new cryptocurrency called Bitcoin Cash (BCH) in August 2017.
Another notable conflict occurred in 2018 when a group of developers and miners led by Craig Wright and Calvin Ayre proposed a contentious hard fork called Bitcoin SV (Satoshi's Vision). This hard fork aimed to restore the original Bitcoin protocol and increase the block size limit to 128 MB. The proposal led to another split in the community, creating a new cryptocurrency called Bitcoin SV (BSV).
The Bitcoin halving represents a pivotal moment in Bitcoin's timeline, taking place roughly every four years (or after 210,000 blocks). This event sees the reward for mining a fresh block being reduced by 50%, subsequently slowing the creation of new bitcoins. The latest Bitcoin halving occurred in May 2020, lowering the block reward from 12.5 to 6.25 bitcoins. This occurrence is important because it influences Bitcoin availability and can potentially affect the digital currency's market worth.
But what is the mechanism behind Bitcoin? Bitcoin functions on a distributed network of computers known as nodes. These nodes preserve a public record called the blockchain, which holds all verified transactions. To incorporate a new transaction into the blockchain, nodes must validate it through a procedure known as mining. Miners employ high-powered computers to tackle intricate mathematical challenges that act as Proof-of-Work. Once miners resolve the problem, they can append the transaction to the blockchain and receive new bitcoins as a reward.
To sum up, the history of Bitcoin is a captivating tale of technological advancements, ideological convictions, and internal disputes. The development and growth of Bitcoin have demonstrated the potential of decentralized currencies and the power of cryptography to secure transactions and protect privacy. As Bitcoin continues to evolve and mature, it will be interesting to see how it shapes the future of finance and technology.
The Shortcomings of Bitcoin
What does Bitcoin get wrong?
Bitcoin has many factors that make it a suitable solution for the transfer of value and storage of wealth, but as the first generation of cryptocurrency and the 'draft concept,' there are also many issues with the system.
Transaction rate
The transaction throughput for Bitcoin is incredibly low. At seven transactions per second (TPS), Bitcoin has scalability issues that will eventually cause it to be unsuitable for general use as a payment system. It is for this reason so many developers are trying to create side chains, Layer-2s, and other ways to increase the Bitcoin capability. However, at its core, it will always be a network created based on computing technology from 2009.
Transaction costs
When the Bitcoin network starts getting busy, the 'gas' to complete transactions starts to go up and can significantly increase both the transaction finality time and the cost of performing the transaction. This means for anyone wanting to send $10 of Bitcoin, the costs could be more than the amount being sent, making Bitcoin completely unsuitable as a layer-1 for any kind of small payment.
Bitcoin mining juggernauts
Bitcoin mining is all down to the difficulty in the 'proof-of-work' system. This means those who are already rich in fiat value have a significant advantage over those that are not. With the ability to purchase vast quantities of computational processing power in giant facilities, the power of this new currency is already in the hands of large-scale miners. As a network designed to be decentralized and help the 'little guy,' this is already a huge step backward.
Lack of Smart contracts
Bitcoin is a very simple P2P system for transferring the digital asset Bitcoin. The network itself has no other built-in use, and any other use case built on top of the Bitcoin network will only amount to transaction congestion. Ethereum overcame this but is also plagued with its own problems that will eventually cause it to peak at usability.
The Solution: Bitcoin Spark
How Does Bitcoin Spark Improve Upon Satoshi's Vision?
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Bitcoin Spark contains the same core tokenomics that Bitcoin has, only with an extended time until maximum supply is reached.
1: The transactions per second are significantly improved by decreasing time per block, in addition to increasing the number of individual transaction capabilities per block.
2: By combining a drastically increased quantity of nodes, with a lower initial outlay and running costs, alongside the improvements made in point 1, the fees for using the chain can be significantly reduced in line with the investment made by miners.
3: Anyone Can Mine. This is the Bitcoin Spark ethos. The two-pronged benefit of this is increased decentralization and security alongside a lower barrier of entry for mining.
4: Implementing a smart contract layer seamlessly integrated with the Bitcoin Spark network. There would be a multi-layer system that all reaches finality on the main network but allows for different programming languages to be used for application building. This would require an in-house blockchain explorer until a third party can also realize a solution. The Github for third-party developers will be released shortly after the mainnet launch.
What Are Bitcoin Alternatives?
Understanding The Multiple Layers Of Bitcoin
The rise of Bitcoin alternatives has significantly impacted the digital currency landscape. They have not only provided users with more options but have also introduced new features and capabilities, enhancing the overall functionality of digital currencies.
Bitcoin alternatives such as Bitcoin Cash have addressed the limitations of Bitcoin, offering faster transaction speeds and lower fees. This has made digital currency more accessible and practical for everyday use, promoting wider adoption of digital currency.
Furthermore, the competition among different digital currencies has spurred continuous innovation in the space, driving the development of more advanced features and technologies.
As digital currency continues to evolve, the future looks promising. Bitcoin Spark, with its improved scalability and lower transaction fees, is poised to play a significant role in this future. Its potential for handling everyday transactions efficiently presents a strong case for widespread adoption.
The continuous development of blockchain technology, coupled with increasing acceptance and regulation of digital currencies, suggests a future where digital currencies, led by Bitcoin Spark and other Bitcoin alternatives, may become a standard form of payment.
Marketing Strategy
The Key To Success For All Cryptocurrency
The unique marketing strategy of Bitcoin Spark is based on the concept of ‘Innovative Disruption’. It aims to disrupt traditional marketing norms with innovative approaches that captivate the audience's attention and foster trust in the brand. Bitcoin Spark believes in the power of storytelling, strategic positioning, and leveraging the latest technology to drive its marketing efforts.
Bitcoin Spark's marketing strategy involves a combination of content marketing, social media engagement, influencer partnerships, and community building. It leverages the power of blockchain technology to drive transparency, security, and efficiency in its marketing efforts. It also makes use of data analytics to understand consumer behavior and tailor its marketing strategies accordingly.
There are several key elements that form the backbone of Bitcoin Spark's unique marketing strategy. These include:
- 1.Storytelling: Bitcoin Spark uses storytelling to captivate the audience's attention and connect with them on a deeper level. It uses compelling narratives to convey its brand values, mission, and vision.
- 2.Strategic Positioning: Bitcoin Spark positions itself as a leader and innovator in the cryptocurrency market. It differentiates itself from its competitors through its unique value propositions and innovative solutions.
- 3.Leveraging Technology: Bitcoin Spark uses the latest technology, including blockchain and data analytics, to drive its marketing efforts. It uses technology to enhance transparency, security, and efficiency in its operations.
Bitcoin Spark utilizes a powerful combination of experienced "In house" marketing experts in conjunction with large, established and well known digital marketing agencies to fuel and maximize brand awareness. This forward thinking strategy involves constant innovation and improvement of the platform's features, ensuring it stays ahead in the competitive crypto market. This allegiance of visibility, education, and innovation promises substantial growth for Bitcoin Spark.
Revenue Generation
How Bitcoin Spark Becomes Self Sustaining
One of the most important aspects of Bitcoin that is missing is that network participants could be rewarded in a number of ways that do not happen. By overlaying revenue generation to the network with additional services, the reward aspect for participating in the network can be expanded, and a greater desire for network participation can be created, driving forward adoption.
There will be a drive to expand revenue sources in the future, starting with the following:
Primary revenue source
Decentralized CPU 'rental'
Miners will provide a percentage of system processing power to the network that can be used by companies and individuals for such things as video rendering, running shared resource servers, performing large advanced equations, or running resource-hungry simulations.
Those wishing to use this processing power will send BTCS as payment, which will automatically allocate this to the mining rewards pool as 'mining rewards,' increasing the immediate mining rewards and extending the elastic (but capped) BTCS rewards minting through algorithmic calculations.
3% of this revenue will go to the team for upkeep, income, and maintenance, and the remaining portion will go to miners.
Secondary revenue source
Advertising
Small amounts of unobtrusive space will be dedicated to advertising within the Bitcoin Spark application and on the home website.
50% of this revenue will go to the team for upkeep, income, and maintenance, and the remaining portion will go to miners and network participants.
In the same way as the processing power rental, a separate payment system will work for advertising. The cost of advertising is elastic based on demand. The higher the demand, the higher the price and the lower the time allocation for each advert until a fair value balance is found. This is calculated algorithmically.
The advertising will be community policed. Anyone holding an amount of BTCS can vote to remove an advert based on a number of issues, including advert non-conformity to terms and conditions, vulgar or NSFW advertising, hate speech, scam adverts, etc.
Once a vote to remove an advert has reached consensus, it will be removed and flagged for a manual review by one of the team members. If it is deemed unsuitable, then it will be removed, 85% of the remaining advertising fee will be returned to the advertiser (calculated pro rata vs. time paid), and the 15% will be distributed to the wallets of those who voted for the advertising removal. This incentivizes the community policing of the advertising.
Mining
What Satoshi wanted was a decentralized network for people to transact on. What Bitcoin has ended up being is a network for the rich to mine, with massive barriers to entry, such as mining equipment cost, electricity, and lack of processing power to ‘beat’ the huge mining facilities.
Bitcoin Spark will be the true path to decentralization.
By using a cross between proof-of-work and proof-of-stake, combined with a special algorithm that inhibits linear rewards based on raw processing power or stake size, the network can stay stable, and rewards can be distributed more fairly between smaller and larger network participants. Raw capital does not dictate raw power.
This allows those with increased mining capabilities to earn more, but not in a way that is unbalanced purely by fiat-equivalent net worth. We believe this is a fine and careful trade-off between decentralization, capitalist enterprise, and socialist and community concepts.
Miner Hashrate vs Miner Rewards Curve
As shown in the above graph, as individual validators increase their computational power (for easy comparison this will be called the 'hashrate') on the network, their rewards do not increase linearly. This disincentivizes what has happened to Bitcoin, where two miners (Foundry USA and Antpool) combined can control more than 51% of the hashrate.* This is a great risk to security as if these two miners decide to ‘team up’ and edit the blockchain, they would have the capability to do so.
Distributing the blockchain transaction finality across many more devices and individual miners drastically decreases the risk of any single miner becoming too powerful, increasing security by a factor of multiples.
Because of the revenue aspects of the Bitcoin Spark functionality, providing the revenue continues to inflow, this will supplement and reduce the mining rewards. The mining rewards will run on an elastic system based on the revenue generated, the price of Bitcoin Spark, and the number of miners in the ecosystem. If more revenue is obtained, the rewards minting will be reduced in balance against the revenue, and the minting endpoint will move further away.
The idea is that Bitcoin Spark will end up being a self-sustaining revenue network that allows network participants to remain profitable with a limited supply constantly.
No matter what happens, newly minted mining rewards will finish at the earliest in the year 2144.
How Rewards Are Distributed
For the purposes of easy comparison to first-generation Bitcoin, the term hashrate has been used in the Bitcoin Spark whitepaper, but simply solving hexadecimal hashes will not be the main way in which 'mining' rewards are provided.
Users are required to provide a stake on the network in the same way that Proof-Of-Stake blockchains function. However, it will not directly correlate in the same way that the more you stake, the more you earn.
Processing power must also be made available to the network, and this power is used by the Bitcoin Spark 'clients' that rent network power as remote computing processing for high CPU or GPU load tasks.
The rewards are then calculated as a blend between the individual stake of the miner and the work done for those using the network as remote computing power. The higher the stake and the more 'work done' then, the higher the rewards, in a non-linear fashion. Rewards are skewed to be higher for work done versus stake size in order to prioritize the revenue-generating product.
It is approximated with planned Bitcoin Spark rewards that each individual will be able to provide around 5 Teraflops before a significant reduction in rewards against additional power comes into effect.
This is variable as time goes on, based on the total network output in Teraflops, the demand from network clients, mining rewards remaining, and total BTCS staked. This will end up linear with advancements in technology, to ensure the product remains relevant.
Bitcoin Spark Application
Decentralized Application To Mine Rewards
Bitcoin Spark Application
There are two primary goals of Bitcoin Spark.
1: Distribute out mining rewards, no matter the computational power of the device used, in a fair way that increases the security of the network and decreases the cost of participation.
2: Put 'proof-of-work' to use so the electricity consumption has a valid purpose by ‘renting’ miner computational power out to companies and individuals.
Network usage and Mining
The network itself would use a proprietary proof-of-work/proof-of-stake cross concept, which ‘rents out’ the processing power of the mining devices to those in need of it, such as servers or for large-scale video coding. No data is stored outside of RAM, only the processing power of the device is used.
The fees generated will be distributed 100% to the mining pools. (Stablecoin will create an automated buyback and deposit BTCS into the mining reward allocation, and BTCS will deposit straight into the mining reward allocation.)
Through this buyback mining reward system, the length of time at which the remaining mining rewards can be distributed can be increased as the revenue supplementing the rewards will allow for a lower mint rate.
The team will create an easy-to-use mining program for Windows, Mac OS, Linux, iOS, and Android, allowing users to install the mining software on any device and mine by permitting secure, isolated access to the device’s processing unit. The software itself can adjust how much of the processing power is used to account for overheating, battery, or simultaneous usage requirements.
Security
All processing runs through the devices’ CPU and/or GPU (user choice) and RAM in an isolated environment that does not affect or interact with any other part of the device.
In addition to adjusting the ‘power’ that some miners hold over the network to gain rewards, such as the huge mining facilities that exist for Bitcoin, this also drastically increases security, as the consensus required to create a “51% attack” would be much harder to achieve with a significantly wider scope of devices and mining nodes.
The Bitcoin Spark repository will be made publically available for developers after the network launch to create their own mining applications and wallet apps to reduce dependency on the team’s efforts and ensure true decentralization.
The Bitcoin Spark team will not officially recommend any third-party wallet until extensive testing by the team has taken place and the third party can demonstrate the highest levels of device security.
Wallet
The Bitcoin Spark application will also act as a wallet for the Bitcoin Spark network, in addition to other network capabilities such as Ethereum, XRP, BNB Smart Chain, Solana, and many others.
Bitcoin Spark network will not be compatible with EVM wallets such as Metamask on launch. Anyone wishing to purchase BTCS or hold BTCS in a wallet such as Metamask will be able to do so using the 'wrapped' BTCS on Ethereum.
How Miners Are Able To 'Rent Out' Power
One of the most exciting aspects that differentiates Bitcoin Spark is the ability of users to provide processing power to the network.
This is done through the use of an application that will perform processing work in a virtual environment. The application will limit itself on the resources it is able to use on the device and therefore limit the 'mining' capability by default.
The application will require some higher-level device permissions, such as resource management, but will not require access to other permissions, such as media files or phone capabilities.
This 'virtual environment' working within the app ensures no other processes or local files are interacted with on the device.
Mining is recommended on home or business Ethernet/WiFi, unless your mobile plan includes unlimited data at speeds of minimum 50mb/s.
Internet connection is a core part of the data transfer between mining devices and resource requestors. Greater internet capabilities will highly likely produce better mining results.
Roadmap
A Look Into The Future Of Bitcoin Spark
Stage 1 - Begin ICO Phase
- Have Ethereum-based ‘IOU’ token contract created and audited
- CEX pre-listing agreements
- Internal stress and load tests of the "Spark" blockchain
Stage 2 - Pre Launch
- Mining app closed beta release
- Bug Bounty Program and security optimization of the "Spark" Blockchain
- Cross chain bridge development
- Hash rate optimization
Stage 3 - Launch
- Launch on the Ethereum network with IOU BTCS token
- Redeem IOU ERC20 tokens for mainnet BTCS
- Switch all CEX deposit/withdraw to native network
Stage 4 - Post Launch
- Finalize renouncing of network controls
- Mining app advertisement space paid in BTCS
- Stand alone mining devices
- BRCS-20 Integration on Spark mainnet
- Become leading Bitcoin alternative
Stage 5 - Beyond The Horizon
- Solidify placement as leading Bitcoin alternative by securing acceptance into institutional realm of publicly traded ETFs
The above list is a simple and easy to understand overview of the Bitcoin Spark roadmap that encompasses only the key milestones the project will accomplish.
Team
How the team earns revenue and sustains the project
The team's income share will come from the sources stated in the Revenue Generation page. Mining the network themselves, taking a small share from part of the ‘miner rental fees’, and a share from creating unintrusive advertising revenue through the mining applications, in a similar way to Etherscan.
Core Team Leaders
Steven Kurtz
Steven Kurtz
Steven@bitcoinspark.org
@StevenKurtzBTCS
Steven is a project-driven individual who brings project management skills from the construction engineering world.
Steven works as a contracted construction project manager, recently finishing a six-year dam project in Australia.
His core skills are resource organization and management, compliance process, and critical analysis.
Steven Kurtz is also responsible for talent acquisition.
Dylan Ashford
Dylan Ashford
Dylan@bitcoinspark.org
@DylanBTCSpark
Dylan is an app and website developer that has worked on a number of different startups, most recently for an African mobile payments application.
Dylan's experience in producing digital finance products makes him well-suited for driving forward product-centric development projects.
His core skills are debugging and fine-tuning, team delegation, and digital product design.
Dylan acts as head of finances.
Full-time Team Members
These team members are employed on a full-time basis, with no contract end date.
sanz.j@bitcoinspark.org
Marketing Manager & Marketing Lead for Europe and the Americas
Delacroix.J@bitcoinspark.org
Marketing Lead for Africa and Asia
Hermann Fuchs
Lead Software Developer
Community Support Staff
Lead Administrator
Telegram Administrator
Wyatt Mcneil
Website Chat Support
Kathryn Davila
Website Chat Support
Contracted Staff
These team members are on time-period, part-time, or project completion-based contracts.
Ashton Saville
Blockchain Developer
Aditya Joshi
Blockchain Developer
Pranav Nair
Blockchain Developer
Narahari Gulati
Blockchain Developer
Bruno Gutierrez
Blockchain Developer
Adam Craver
App Developer
Artyom Ovechkin
App Developer
Alison Thompson
Accounting
'Proof-of-Process' Transaction Validation
To protect 'first-to-market' advantage of the proprietary Bitcoin Spark system, only conceptual information will be provided here. Full details of functionality will be released towards launch date to avoid 'fast forks' of our work.
Proof-of-Process is a consensus mechanism blend between 'proof-of-work' and 'proof-of-stake.'
This proprietary system rewards miners/validators for confirming blocks on the network and for providing processing power to those using the network for computational tasks. The work required and power consumption for block confirmation is relatively low.
This reward is calculated algorithmically, with weighting skewed towards processing power (the 'work' aspect of consensus), and both rewards per additional power and rewards per larger stake size decrease exponentially to ensure no single entity can capture network control.
A rewards calculator will be available in the Bitcoin Spark application so validators can see profitability before partaking in the network consensus.
Below represents the basic logic flow for reaching transaction finality.
The Bitcoin Spark network is divided loosely into four layers that work in a cyclical system:
- 1.Execution layer - This layer is where block creation takes place by selecting validators. This execution layer will run using the proprietary Bitcoin Spark validator selection algorithm that does not automatically assign a validator based on transaction size. The execution layer itself will be split between two different programming language style layers that will both interact with the consensus layer.
- 2.Consensus layer - This layer creates an agreement between all validators that the new block is valid before indexing the block. This consensus process is another step in securing the network from attacks.
- 3.'Mining' layer - This layer runs completely separately from other layers, facilitating the processing power product that runs over the Bitcoin Spark network.
- 4.Rewards layer - This layer reads the mining layer and allocates rewards on the execution layer for miners. The rewards layer only reads computational data summaries and has no access to the encrypted data being moved within the Bitcoin Spark product.
These layers have multiple stacks of functionality within them, but are summarized as above for main layer behavior representation.
These layers all run within the Bitcoin Spark application as separate application services, as opposed to being distinct software.
'Proof-of-Process' Transaction Validation
To protect 'first-to-market' advantage of the proprietary Bitcoin Spark system, only conceptual information will be provided here. Full details of functionality will be released towards launch date to avoid 'fast forks' of our work.
Proof-of-Process is a consensus mechanism blend between 'proof-of-work' and 'proof-of-stake.'
This proprietary system rewards miners/validators for confirming blocks on the network and for providing processing power to those using the network for computational tasks. The work required and power consumption for block confirmation is relatively low.
This reward is calculated algorithmically, with weighting skewed towards processing power (the 'work' aspect of consensus), and both rewards per additional power and rewards per larger stake size decrease exponentially to ensure no single entity can capture network control.
A rewards calculator will be available in the Bitcoin Spark application so validators can see profitability before partaking in the network consensus.
Below represents the basic logic flow for reaching transaction finality.
The Bitcoin Spark network is divided loosely into four layers that work in a cyclical system:
- 1.Execution layer - This layer is where block creation takes place by selecting validators. This execution layer will run using the proprietary Bitcoin Spark validator selection algorithm that does not automatically assign a validator based on transaction size. The execution layer itself will be split between two different programming language style layers that will both interact with the consensus layer.
- 2.Consensus layer - This layer creates an agreement between all validators that the new block is valid before indexing the block. This consensus process is another step in securing the network from attacks.
- 3.'Mining' layer - This layer runs completely separately from other layers, facilitating the processing power product that runs over the Bitcoin Spark network.
- 4.Rewards layer - This layer reads the mining layer and allocates rewards on the execution layer for miners. The rewards layer only reads computational data summaries and has no access to the encrypted data being moved within the Bitcoin Spark product.
These layers have multiple stacks of functionality within them, but are summarized as above for main layer behavior representation.
These layers all run within the Bitcoin Spark application as separate application services, as opposed to being distinct software.