bull coin white paper

Abstract

Historically, digital currencies have been the preserve of technologically proficient individuals with supercomputing devices. As the founders of BULL COIN, we have an ambition to bring digital currency to masses.

We think digital currencies like BULL COIN can do much more than the other crypto currencies has managed to date by making this user friendly for small businesses and common people including removing the need to understand the technical details of the technology.

New innovation in technology, combined with more user friendly interfaces can now make this possible.It has the potential to fundamentally transform the way business is done across the world. We want BULL COINs accepted in local corner shops as well as on online stores - when that happens, digital currencies will transform the financial system.

At the heart of BULL COIN’s approach is the desire to make a currency which will benefit millions of user and create highly successful digital entrepreneurs.

This whitepaper sets out how BULL COIN works, and how it will work in future.

Introduction

BULL COIN was created in July 2016, and has been listed in crypto currency exchange since February 2016. The usability and accessibility of the currency, positions BULL COIN as a world currency and the currency of choice for common man and entrepreneurs.

This paper sets out to introduce BULL COIN, the underlying technology that supports it, and its business support mechanism.

It explores the principles of digital currency and the potential it offers to businesses and consumers; including increased security, privacy and flexibility.

Presenting a proposal for a crypto-currency block chain security and distribution mechanism that engages a superior version of proof of stake ( Proof of stake 3.0)

Proof of stake is a consensus mechanism for digital currencies that is an alternative to proof of work used in Bit coin. The main declared advantages of proof of stake approaches are the absence of expensive computations and hence a lower entry barrier for block generation rewards. At Bull coin we combine mining, proof of stake minting and transaction related reward for white label exchanges.

Why digital currency?

Digital currencies leapt onto the scene in 2009 after the fallout of the world banking crisis, combined with concerns over the privacy and security of money and new restrictive regulations. It led people to look for new and innovative ways to transact.

It brought a new dynamic to the speed, security and privacy of financial transactions.

In Conventional banking many third parties have sight of and access to a person’s financial and personal information throughout a transaction, which has associated costs and privacy issues. With BULL COIN there is not the multitude of third party transferring agents who want their share of the action. The cost of sending BULL COIN is nominal compared to the high costs associated with credit card and payment processing agents most businesses are used to.

The rate of inflation that can potentially diminish the purchasing power of legal tenders – or traditional - currencies (such as USD) does not affect the value of a digital currency to the same degree, as there is a fixed amount of the currency produced over a fixed period of time. – No governments or institutions not even the founders can manipulate the quantity or price.

BULL COIN (proof of stake 3.0)

Bitcoin was the trailblazer for digital currencies. It has reached its pinnacle in a short time, but has also opened up an opportunity to do things in a very different way. Many experts believe that the future’s leading digital currency will not be Bit coin. There are drawbacks and crypto enthusiasts have learned many lessons from the journey of Bit coin - and BULL COIN has learnt from the lessons and evolved itself keeping it in mind. The early days of digital currency encountered many technical problems due to the platforms being used; many of these are still an issue. These include excessive processing energy consumption, 51% attack, and manipulation of the ASIC computer chip that drives the technology.

The leading standard digital currency will be the one that resolves these challenges and makes it as user friendly as possible. This aim is at the heart of BULL COIN’s creation.

Initially BULL COIN used a hashing algorithm (Scrypt-Jane) that gradually increases the demand in RAM (a computer’s processing power). This method is known as Proof of Work. The more powerful a computer you had, the more digital currency you could mine.

Afterwards, BULL COIN has now moved to a Proof of Stake model which, rather than rewarding BULL COIN investors for the power their computer lends to the network, it rewards BULL COIN users based on the number of BULL COIN’s they currently hold and ‘stake.’ Essentially this means the more BULL COIN’s you have, the more you will earn.

This method is far less demanding on computer power and in practical terms that means the consumer and small business owner does not need to invest in an expensive and powerful machine to mine BULL COIN. This makes BULL COIN mining available to a wider mass market audience.

Keeping it in mind of its mission to take bull coin to masses and create digital entrepreneurs across the world, it provides Transaction based mining software (exchange) where exchange owner gets reward as per the transaction done in that exchange as well as get shares of the transactions done on any exchange across the globe. Number of this white label exchange is capped at 1000.

To achieve consensus; Proof of Stake 3.0 (PoS) requires nodes running a wallet software proving that it has coins in the block chain in order to verify a block of transactions. The participating nodes receive an amount of blocks proportional to their stake per set period as a form of reward.

This means that with lots of participating nodes the network becomes very secure due to the increased difficulty of owning a majority of coins in the network.

It creates large decentralized network to keep the ledger which builds trust among the investors and users.

Who is Using BULL COIN?

BULL COIN has been designed to appeal to the enterprise community: small businesses and common man who are penalized by transaction fees, domestic and international.

Merchant’s numbers offering goods and services priced in BULL COIN and Members who hold BULL COIN is growing very fast.

Small to medium sized enterprises who trade internationally said transaction fees were a key concern; and 43% who transacted using debit or credit cards were also worried about the associated costs. Yet 85% said they would consider using a digital currency. BULL COIN wants to capitalize on that mindset.

How does it work?

A mathematical computing process called mining generates BULL COINs. The mining itself is a very complex mathematical problem, which is solved by a computer solving difficult mathematical puzzle.

The difficulty of the mining increases over time making it harder to obtain the coins. This acts as a deflationary brake on the currency, therefore creating stability in the price.

This is the opposite of a conventional currency or legal tenders issued by central banks owned by governments which decreases in value each time a Government prints more.

BULL COIN was designed by experts using the latest technology and techniques in cryptocurrency and blockchain. BULL COIN is at the cutting edge in digital currency, designed for use by the world’s entrepreneurs as well as private individuals.

The total number of BULL COIN is finite. There are only 90 million BULL COINs in the network that will be mined over the next 50 years. This gives leverage, robustness and long-term sustainability to BULL COIN as a digital currency.

Furthermore, BULL COIN pre-mined 30 million coins ahead of the exchange going live. This was designed to nurture the early development of the BULL COIN economy and add stability.

The total number of BULL COIN is finite. There are only 90 million BULL COINs in the network that will be mined over the next 50 years. This gives leverage, robustness and long-term sustainability to BULL COIN as a digital currency.

Advantages to the consumer

As discussed above, the major advantage of BULL COIN is the existing user-base and community that supports it. The BULL COIN mission is to educate the untapped audience of the business community and common man to drive uptake of digital currency.

Other benefits include:

Privacy - Payments with BULL COIN can be madeand finalized without any personal information being tied to any transactions; and due to this enhanced privacy of personal information, there is greater protection against identity theft. Due to the way the blockchain works, the identity of the user is not important. This means it is secure and kept hidden at all times unless someone chooses to reveal it. Because all the transactions and information are highly encrypted, even extreme computational power would require thousands of years to crack it.

Transparency - Using the block chain technology, all finalised transactions is available for everyone in the network to see, however all personal information is hidden, i.e. you can tell when a coin was spent, but not by whom. While a public address may be visible, personal information is not tied to it, giving it the transparency of a public ledger whilst at the same time maintaining personal information security.

Control- Accounts that hold traditionalcurrency can be requisitioned or frozen completely by a host of authorities, often through no fault of the consumer. Since digital currencies exist outside the traditional regulatory frameworks that allow this tohappen, it is very rare for a holder to be rendered unable to access their coins, unless illegal activity is proven to have taken place.

Secure- BULL COIN’s Proof of Stake (POS) modelreduces the risk of ‘Selfish Miner flaw’ and ‘51% attacks’. Transactions in any digital currency have to be approved and verified by the peer-to-peer network. This community approval means everyone has a stake in the currency, so it is in the community’s interest to ensure security.

Value- there are no 3rd party transferringagents (like a bank) who want their share. The cost of sending BULL COIN is practically zero compared to the bank transfer costs most people are used to.

As every coin is accounted for in your ledger, merchants cannot charge extra hidden fees without being noticed. They must communicate fees to the consumer before adding charges.

Accessibility– Digital currencies have thepotential to provide the unbanked with a low-cost financial refuge. Peer-to-peer transactions and digital currency denominated banks

Will allow the unbanked to have a safe, low-cost way to manage their wealth. In theory, assuming the backing of a financial system, digital currencies could ultimately help bring many out of poverty by letting capital flow more easily.

Advantages to Merchants

Many of the features above apply to merchants as well as consumers. Digital currency transactions, such as BULL COIN, are not reversible, do not carry personal information and are secure, therefore merchants are better protected from potential losses that occur from fraud. Merchants are able to do business where crime rates and fraud rates may be high and credit or debit cards may not be accepted.

Digital currency makes transaction fraud harder due to the public ledger (blockchain) and the peer network encourages cooperation against fraudsters.

Through merchant programme BULL COIN plans to reach out to more people through training, in turn making them ambassadors of BULL COIN

This will perpetuate the BULL COIN user community and strengthen it.

Energy and cost efficient

Proof of Stake (POS) requires much less energy than other digital currencies in the longer run, making BULL COIN attractive from a sustainability perspective.

By design, it will take approximately 50 years to distribute all of the BULL COINs to the community. Meanwhile owners of BULL COIN will be rewarded with more coins on the basis of their stake,

This allows BULL COIN to have a very low inflation rate that no bank can change. The Proof of Stake basis, offers a significant reward encouraging people to hold BULL COIN and benefit from these rewards. Additionally, Proof of Stake truly democratizes the way that new BULL COIN are spread among users.

As part of our ambition to be a coin for everyone, we were keen to have a coin that did not rely on excessive technical knowledge or require significant financial investment in GPUs and mining rigs. Instead, a simple desktop wallet is all that is needed to fully benefit from the rewards offered by Proof of Stake.

The blockchain

The ‘blockchain’ is the name for the system that governs transaction administration in digital currency. The transactions in the system are recorded in a public ledger, processed by decentralized computers in an operation referred to as mining. It uses its own unit of account, in this case BULL COIN.

BULL COIN has no central repository and no single administrator; the US Treasury refers to digital currencies like BULL COIN as ‘decentralized virtual currency.’

Once you start mining, the pool uses the following payout systems.

A Share- Finding blocks is not an easy task.Since it would take a long time on some coins, finding a block is broken down into shares. Depending on the server side setting, each share can be a certain difficulty. The more difficult each share is to find by miners, the fewer total shares are required to eventually find a block.

Simplistically, this could be compared to premium bonds. The more you buy, the better chances you have to win the award. With BULL COIN you can participate in this process by keeping your wallet open and using your stake.

Stratum, a protocol used by a miner to request work from a server, is used for share submission and getting new work. On the server side, each share is checked against the coin daemon(a server side wallet with more features) if it is indeed a valid block solution. Every share computed has the potential to be a block solution.

Pay Per Last N Shares (PPLNS)- Blockrewards are distributed among the last shares, disregarding round boundaries. Essentially this means the ‘miner’ is rewarded for solving a block of code.

In the accurate implementation, the number of shares is determined so that their total will be a specified quantity of score (where the score of a share is the inverse of the difficulty). Most pools use an implementation based on a fixed number of shares or a fixed multiple of the difficulty.

Orphan block- Coins generated by a block willnot be available to you right away. They will take some time to be confirmed by the entire network before you are allowed to transfer them out of the pool. This is to minimize the risk of fraudulent activity and ‘double-spending’ of coins.

Usually coins have a confirmation set to 120. What that actually means is that the network (not the pool) has to discover 120 additional blocks on top of the one found by the pool to confirm it.

Regulation

Currently there are few regulations imposed on digital currencies, other than standard money laundering regulations. Because of their international trading potential, and the anonymity of the currencies, regulations would be difficult to impose without altering some of the fundamental benefits of them.

However, not all regulation is bad, and BULL COIN supports the development of steps that can be taken to create more confidence withinthe mainstream population without severely hampering innovation or the privacy of users.

If a government were to intervene in a heavy handed fashion then digital currency would lose its core benefits of privacy, security, low to no fees, and free marketability. Over-regulation would obviously make it no different from current currencies. This could in fact dissolve the benefits of digital currency.

Outlawing digital currencies would simply restrict legitimate business and drive the criminals further underground, depriving the private sector of the significant benefits of digital currencies. However, with government approval, or at least acquiescence, legal businesses and users can take advantage of the potential speed, low costs, flexibility, and privacy offered by digital currency.

Over-regulation could simply drive the creation of another black market, while denying the substantial benefits of legitimate digital currencies to the law-abiding citizen everywhere.

The Government Are Banking on Digital

There is much evidence that public and regulatory bodies are coming round to the view that digital currencies are the way forward.

In 2016, Circle, a pay-app, was granted an e-money issuer license by the UK Financial Conduct Authority (FCA), despite the fact that the UK Treasury had yet to decide on its stance on regulation of the digital currency market. They were supposed to have done that by the end of 2015.

Why does this matter? It matters because this is the start of the process of normalizing a technology that until recently was seen as the ‘reserve of cyber criminals’. In essence the FCA have just given the green light to the sort of technological step that not long ago was seen as pure science fiction.

Circle started out in 2013 as a bitcoin ‘wallet’ and has since expanded into broader currency payments. It uses blockchain technologyto make international payments from one currency to another, transferring into bitcoin en route, then turning back into fiat currency at the other end. This means they make it possible to transfer British Pounds to Russian Rubles via a momentary conversion to bitcoin. The important point is that this payment avoided the government regulation and international currency bureaucracy that governs the fiat currencies.

Now Circle are taking the same instant service that we have come to expect from Facebook messenger and WhatsApp and applied it to cash payments. The concept of being able to text your friend money securely was fanciful not long ago; and doing itwith a license from Government would have been unthinkable. But that’s the world we’re now starting to live in.

What makes this development all the more interesting is that it’s not just some young entrepreneurial upstarts taking it to market; it’s actually backed by one of the world’s largest banks, Barclays.

Barclays’ involvement is intriguing because, not least of all, blockchain technology has been regularly cited as one of the biggest threatsto the financial status quo. The reasonwhy blockchain could be a threat is because, used properly, it takes out the middleman; and what are banks if not middlemen.

Blockchain technology itself is nothing new, it’s just an encrypted database that’s distributed across a computer network. What makes it possibly revolutionary is that it can only be updated when everyone on that network agrees and once entered, the information can’t be overwritten. That’s why people are looking at it for purposes such as electronic voting and healthcare records. The collective responsibility and encryption makes it incredibly secure and reliable.

Banks have dined out for centuries on being that reliable secure connection for our money; take that away from them and make it an instant automated process and, at least in theory, you’re taking away their reason to exist.

Perhaps then that’s why it should be no surprise that, in 2015, nine of the world’s biggest banks joined forces to create a framework for using blockchain. This group of banks, including Goldman Sachs and Barclays, have come together with New York-based financial tech firm R3 in the hope of utilizing the technology to strip out processing costs and save money.

Governments are looking at ways they can utilize it too - the cynically minded might say that banks and governments are doing this to gain some control of the technology.

So the future looks bright for those who view digital currencies as the new transmitter of value; as the way to mobilize an economy without interference from middlemen who add no value; and without the heavy burden of irrelevant legislation.

Glossary

ASIC (Application-Specific Integrated Circuit)

An ASIC is a microchip designed for a special application, such as a particular kind of transmission protocol or a hand-held computer. You might contrast it with general integrated circuits, such as the microprocessor and the random access memory chips in your PC. ASICs are used in a wide-range of applications, including auto emission control, environmental monitoring, and personal digital assistants (PDAs).

An ASIC can be pre-manufactured for a special application or it can be custom manufactured (typically using components from a "building block" library of components) for a particular customer application.

Block Reward

The reward given to a miner which has successfully hashed a transaction block.

CPU (Central Processing Unit)

The CPU is the part of a computer system that is commonly referred to as the ‘brains’ of a computer. The CPU is also known as the processor or microprocessor. The CPU is

responsible for executing a sequence of stored instructions called a program.

Fiat Currency

Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith. Fiat is the Latin word for "It shall be".

GPU (Graphics Processing Unit)

A silicon chip specifically designed for the complex mathematical calculations needed to render millions of polygons in modern computer game graphics. They are also well suited to the cryptographic calculations needed in cryptocurrency mining.

Hash

A hash algorithm turns an arbitrarily-large amount of data into a fixed-length hash. The same hash will always result from the same data, but modifying the data by even one bit will completely change the hash. Like all computer data, hashes are large numbers, and are usually written as hexadecimal.

Hash Rate

The number of hashes that can be performed by a bitcoin miner in a given period of time (usually a second).