This is a draft whitepaper subject to change
One of the main shortcomings of bitcoin in its current state is that it is a push-only payment system. Each transaction made must be manually conducted by the user. What we intend to add is a feature for pull-payments, those which automatically trigger when predetermined conditions have been met. This addition allows external parties to receive a transaction which can also include arbitrary bits of data stored in the blockchain record.
We will begin mining a new chain by block # 500,000, and in doing so, will add a digital identity platform. This addition will allow the forked network to provide identification information while inheriting the existing blockchain record.
The genesis point is targeted for block # 500,000. Beyond this point, mining resources will be devoted to this new chain, which embeds SHA-256 timestamped verifications into the coinbase of the main bitcoin network. This cross-examination of the mining processes will effectively link (and validate) the information in proceeding blocks. The rate at which new timestamps can be made in the main bitcoin blockchain via the coinbase, will determine the value of the forked coin.
The innovation of the digital identity platform itself, will be a convenient replacement of username/password combinations with a single public/private keypair authentication. Devices will read this mark via visual and sensory display (such as near-field communications NFC, Bluetooth). Biometric identification will be a central focus of user-interface experience.
Total block size is a crucial component when differentiating from the main bitcoin network. We will lean on storage-intensive blocks to competitively differentiate from the main bitcoin network. With its current average block size of around 1MB (2017), we will target a predetermined block size increase schedule according to Moore’s Law of storage capacity.
This exponentially greater memory capacity will drive up both transaction storage costs and confirmation speeds. Higher transactions per day may have a positive correlation with price.
Users are capable of encoding arbitrary data into smart contracts which are then paid for by buyers. The information marketplace allows those interested to acquire the data upon transaction requirements. Specifically, these smart contract addresses, which are setup as an automated transfer, allow merchants to deal data autonomously.
This would be a reputation based marketplace for data. The core innovation is transitioning bitcoin from a push-only system to a push AND pull system. Smart contracts only have one main function: decrypt the data upon transaction received.
Storage attestations of the digital identity could include:
Transaction fees will continue to be determined by a natural market of competing miners. Perhaps more important than any previous point, is that the units of currency derive their value from the ongoing network hash power. Without continued hash power from the network, the currency ceases to hold value.
Users will pay transaction fees (read: attestation fees) to access the broadcasting network and retrieve user information.
User information can be used for all means of authenticating and logging into systems. The incentive for the user to provide the service with their information is first and foremost convenience of identification.
Every block update is competed for by the miners, who will naturally prefer transactions with a larger attached fee.
The ultimate goal of the payment system is a completely automated and non-stop stream of payment, given that the agreement between the two parties remains intact. This would require minimizing block time and maximizing block size. Storage capacity and reclaiming disk space are a competitive advantage in this mining industry.
The [DIGI] assigned to each identification will represent the “amount of time” the user has remaining on the network. [DIGI] cannot be directly purchased, but is a cumulative total of the remaining currency. Miners collect [DIGI] on attestation fees in exchange for user information. Users will be able to earn financial rewards for granting access to information.
In simple terms, the digital identity platform is a communication medium, both to authenticate and serve as reputation identity.
The economic fundamentals of the digital identity platform will also be inherited from bitcoin. The current limit of 21,000,000 will remain, although with less mining competition, blocks will be available at a lower difficulty. The drop in difficulty of a newly forked chain, will ensure profitability of early mining processes.
The currency itself will be dubbed “digi” (abbreviations of DIGI), in terms of payment and unit of account.
On behalf of Diginomics, we want to hear from you on this digital identity platform!