Monday, January 22, 2018

Ebitcoin (EBTC) – The child of Bitcoin and Ethereum?

eBTC is a tokenized version of Bitcoin on the Ethereum blockchain.

BTC, eBitcoin or Ethereum’s Bitcoin is an ERC20 tokenized version of Bitcoin on the Ethereum Blockchain. It proposes to solve the transaction cost, speed, scalability and smartcontract-inefficacy concerns of the original Bitcoin blockchain by using Ethereum’s more efficient, scalable and interoperable blockchain layer.

Supported by a diverse, dynamic and committed global community, eBTC intends to become a more affordable, faster and more flexible peer-to-peer electronic cash and payment system. It intends to do so by retaining the core ideals of Bitcoin and integrating them with Ethereum’s ecosystem.The year 2017 witnessed the emergence of multiple Bitcoin forks all trying to solve one or more of its existing concerns: low transaction speed, high transaction costs and centralized mining.Yet, none of the forks currently has the capacity to effectively solve all these issues.In contrast, eBTC’s apparent and strangely simple design allows it to efficiently address these challenges while also adding smart-contract capabilities to Bitcoin’s core ideals.

With increasing awareness and acceptance, eBTC plans to become a truly global, fast, cost-effective and fully decentralized payment processing mechanism while continuing to integrate all the future developments in Ethereum’s abstract foundational layer. In doing so, eBTC would represent Bitcoin’s original core values, as a sustainable means of electronic payment and store of value, while bringing the needed modernization to Bitcoin using the Ethereum’s diverse ecosystem and enabling the implementation of all the available use-cases of a globally-accepted payment system into eBTC. Keywords: eBTC, Bitcoin, Ethereum, eBitcoin, ERC20, abstract foundational layer, blockchain, digital currency, electronic cash.

Background: An Introduction into the Evolution of Blockchains and the Creation of eBTC Bitcoin pioneered the trust-less and decentralized peer-to-peer electronic cash system when the world witnessed the surfacing of a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System (Nakamoto, 2008). This ingenious and double-spending-resistant invention brought two things to the world: a digital currency and a distributed consensus mechanism. The world of crypto-currencies has moved far since and new technologies have appeared in the blockchain ecosystem. The core mention is the Ethereum’s scalable, standardized and interoperable abstract foundational layer: Ethereum’s Blockchain.

Bitcoin’s distributed consensus evolved and delivered the world a more efficient and flexible technology when Ethereum was first proposed by Buterin in his paper titled A Next Generation Smart Contract & Decentralized Application Platform (2013). With increased efficiency, speed and flexibility, it became possible to create innovative decentralized solutions for diverse and wide-ranging use-cases. Ethereum’s abstract foundational layer and Solidity, its coding language, enabled the creation of smart contracts, decentralized applications (DApps) and decentralized autonomous organizations (DAOs). The dynamic strengths of Ethereum lie in its core elements: ―scalability, standardization, feature-completeness, ease of development and interoperability‖ (Buterin, 2013, p. 13). Smart contracts enjoy all these quality attributes of the Ethereum ecosystem.

eBTC: A TOKENIZED VERSION OF BITCOIN ON ETHEREUM 5 eBTC ushered in as a direct consequence of the gradual evolution of both these blockchains. In essence, it surfaced into existence as an ERC20 version of Bitcoin possessing the vast capabilities of the Ethereum platform. Existing Concerns and Problems One of the most critical aspects of Bitcoin’s implementation was to remove the need for third-party trust and thus the unavoidable transaction costs associated with such intermediary arrangements. Nakamoto documented that such transaction costs limited the minimum practical transaction size and the possibility for small casual payments (2008). While elaborating Bitcoin’s implementation on P2P Foundation for the very first time, Nakamoto observed that such intermediaries made micropayments impossible (2009). Ironically, the same phenomenon currently limits the minimum practical transaction size on Bitcoin and inhibits users to transact small transactions due to its ever-increasing and highly volatile market value. The growing transaction costs of Bitcoin have started to resemble those very arrangements it was initially supposed to counter. At present, an average Bitcoin transaction costs around $2 to 5$ or upwards of around 30,000 satoshis. The Bitcoin transaction speed presents another challenge. The average Bitcoin block time is around 10 minutes and it currently takes 6 confirmations or around 60 minutes to achieve transaction finality. Both these factors limit the adoption of Bitcoin as a sustainable medium of digital exchange undermining the ingenious soul of the originally-proposed Bitcoin ecosystem. It is becoming more challenging to use Bitcoin as an efficient electronic cash system for everyday use. Imagine virtually transacting goods or services under $2 or when transaction times are of critical relevance.

eBTC: A TOKENIZED VERSION OF BITCOIN ON ETHEREUM 6 It appears that Bitcoin’s original philosophy—which presented the world with a revolutionary alternative against the traditional banking and fiat systems—is diluting with its ever-growing transaction costs, slow block times and never-ending forking debates. Multiple Bitcoin forks have recently emerged all trying to resolve one or more of its prevailing concerns: scalability, block size, and the increasingly undemocratic mining. But neither of them currently has the capacity to efficiently solve all the underlying problems engulfing the Bitcoin ecosystem.

eBTC: A TOKENIZED VERSION OF BITCOIN ON ETHEREUM 9 eBTC proposes to effectively solve the concerns and issues that continue to cause the ever-growing forks in the Bitcoin ecosystem. With Ethereum’s sustainable and futuristic developments, eBTC would continue to enjoy and leverage the best of Ethereum’s capabilities while offering the global community the core ideals of Bitcoin on a more diverse, scalable and innovative platform. eBTC, with adoption, would also boost Ethereum’s recognition in the crypto universe as an Ethereum-enabled digital currency and store of value mechanism, and may prove to be a strategic asset for Ethereum’s overall ecosystem.

BTC: Fundamentals Backed by Simplicity and a Diverse and Dynamic Global Community 

eBTC is a community-driven and blockchain-enabled crypto-currency working as an ERC20 token by leveraging the best attributes of both Bitcoin and Ethereum. It is a tokenized version of Bitcoin on the Ethereum blockchain and therefore uniquely complements both. It aims to represent and sustain Bitcoin’s core attributes, as an electronic medium of exchange and sustainable store of value, on the Ethereum Blockchain, but with a smarter and faster outlook. The creation of an ERC20 representative of Bitcoin on the Ethereum blockchain may appear ―too simple‖, but discovering the possibility of implementing Bitcoin’s ideals on an existing and more-evolved blockchain technology which is fast, flexible and more scalable is nothing short of being an innovative and disruptive thought-process. eBTC is this thoughtprocess that seeks to implement Bitcoin’s idealistic vision on the Ethereum blockchain allowing faster transaction speeds, lower transaction costs and smart contract capabilities without experiencing the contesting issues of forks and centralized mining. eBTC strongly believes that a robust and dynamic global community of cryptoenthusiasts is critical for a sustainable evolution of the whole ecosystem. eBTC Foundation is composed of a diverse and vibrant global body of inspiring individuals who are all staunchly committed to furthering the simple but disruptive cause of eBTC. In addition, the role of eBTC’s greater community is pivotal in spreading the word about the power of distributed ledgers and how eBTC may change the very fabric of how we evolve the conduct of online financial transactions.

BTC vs. Ether eBTC is an Ethereum-enabled cash and electronic payment system and ether, ―the cryptofuel for the Ethereum network‖ (―What is Ether‖, 2017), serves to validate eBTC transactions over the Ethereum blockchain. As a fuel, Ether supports the overall Ethereum ecosystem. To clarify, ether was never meant to be a currency on the Ethereum. Instead, its purpose is to serve as a fuel for operating the distributed application platform on Ethereum (―What is Ether‖, 2017). ―It is a form of payment made by the clients of the platform to the machines executing the requested operations‖ (―What is Ether‖, 2017). On the other hand, eBTC, in its purest sense, is just an everyday-usable digital currency and optimized payment system i.e. a medium of faster and cheaper exchange and store of value. Total Supply, Distribution and Mining Total and maximum supply of eBTC would ever be 21 million and it will be divisible by 8 decimal places. At genesis, all eBTC tokens were transparently airdropped in an ICO-less fashion to the diverse and committed global community of crypto-enthusiasts. From the beginning, eBTC is a mining-resistant and circulation-oriented digital currency as its total supply was wholly distributed to the community and the eBTC foundation at a percentage ratio of 97.92: 2.08 respectively.