BOScoin [BOS] | A congressional cryptocurrency platform for trust contracts
BOScoin is a congressional decentralized cryptocurrency platform for “Trust Contracts”
BOScoin is a cryptocurrency that utilizes the blockchain and numerous new technologies to solve persistent issues in decentralized systems.
1. Trust Contracts are securely executable contracts based on a
decidable programming framework called Owlchain, which consists of the
Web Ontology Language and the Timed Automata Language. Trust Contracts
aim to overcome the issues regarding non-decidable smart contracts by
using a more contained and comprehensible programming framework which
provides secure and decidable transactions of contracts.
2. The Congress Network is the decision making body in the
BOScoin network which improves governance issues arising in
decentralized organizations and helps the system continuously evolve
into a more robust ecosystem.
Self-governing ecosystem for growth and evolution
New coins are issued in four ways
New coins are issued in four ways; Initial Development Budget(0.5bil, 10%), confirmation rewards(1.8bil, 36%), freezing rewards(0.9bil, 18%) and the Commons Budget(1.8bil, 36%). We aim to issue a total of 5.0 billion coins over the next 100 years. These values are subject to change.
ICO will start on April 17th 2017 and will last 45 days until May 31st 2017. In total 276,093,688.786 coins will be distributed.
Anyone is able to participate and no central authority dictates whose approval is required for consensus
In practice, nodes can reach consensus at timescales humans expect for web or payment transactions—i.e., a few seconds at most
Users have the freedom to trust any combination of parties they see fit. For example, a small non-profit may play a key role in keeping much larger institutions honest
Safety rests on digital signatures and hash families whose parameters can realistically be tuned to protect against adversaries with unimaginably vast computing power
Voting and features to operating the congress are additional features embedded into the protocol
Democratic decision-making body for BOScoin
Decentralized systems lack a systematic decision making process. BOScoin constitutes a governance system whereby node operators referred to as the Congress Network can participate in creating and voting on proposals in order to continuously improve the software and ecosystem. The Congress Network interacts with non-congress users in three ways ; transactions, proposals and coin freezing.
Anyone can become a Congress member if the following conditions are met :
-Freeze at least one unit (one frozen unit is 10,000BOS) -Run a fully-synchronized node at stable network speeds -Participate in voting
OWL and TAL to expand expressive power while retaining decidability to support secure and precise execution of contracts.
BOScoin aims to use the Owlchain technology which consists of the Web Ontology Language(OWL) and Timed Automata Language(TAL). This architecture is designed to expand expressive power while retaining decidability to support secure and precise execution of contracts. These Owlchain based contracts on the BOScoin blockchain are called Trust Contracts.
Decentralized currencies in many cases tend to become speculative islands with limited real applications. As we believe the value of a currency is intrinsically tied to how useful it is, the BOScoin team will release the coin with two ready-made apps that use BOScoin. The applications Stardaq and Delicracy have already been built and will not only increase the transactional value of the coin, but will also help acquire new users.
Stardaq is an international celebrity popularity prediction market. A celebrity’s popularity is represented as an index and users can place bets on whether the popularity of the celebrity will rise or fall. The bets can only be placed with BOScoins.
Delicracy is a collective decision making tool that can be implemented in any organization. All users can participate in the decision-making process by placing bets on a set of proposals, similar to the Augur prediction market. The proposal with the most bets is passed. This type of system can help promote transparency and participation for decision-making processes in organizations large and small.
These applications serve as outlets to spend BOScoins and also serve as channels for Airdropping free coins. Appropriately using these tools can help grow the ecosystem by introducing new users. Since then developers will be free to join and additional services will be created.
The Commons Budget — Part 1
Cryptocurrencies are a classic two-sided market, also known as a platform market. Two-sided markets are economic platforms that have two distinct user groups that provide the other with network benefits. For example, auction markets are two-sided. You require sellers that offer goods, and buyers that wish to purchase the goods. Sellers will prefer a large number of buyers while buyers will prefer a large number of sellers. Separate user groups effect the other group positively. This kind of mechanism is called a positive cross-side network effect. Similar to a marketplace platform, cryptocurrencies also require the on-boarding of both the merchants and consumers. Merchants have to accept the coin and consumers to have the coin. However, cryptocurrencies face a collective problem : growth is slow on either side. Slow growth in two-sided markets is nothing new. These markets are notoriously difficult to get started.
Confirmed Transactions per Day, blockchain.info
Although once these platforms pass a certain threshold, their hold on the market is extremely difficult to overtake. We can see this through the resilience of marketplaces like Craigslist and software platforms like Windows or Linux.
Credit cards are another example of a two-sided market which faced a similar problem. Before 1958 there were no general credit cards that were accepted by a large enough number of merchants. This meant consumers didn’t really have any incentive to use one a bank had issued. To solve the chicken or the egg problem, Bank of America decided to send 60,000 credit cards to the residents of Fresno, California at once.
Due to the rapid adoption rates of consumers as well as merchants, within a month one million cards were sent out. This is now referred to as the “Fresno Drop”. The Bank of America credit card eventually became Visa and continues to dominate the credit card market to this day.Nilson Report (2014)
In two-sided markets, the platform provider must optimize the price levels, price structures, and investment strategies to kick-start market. Only then, can the platform get both parties on board. Bank of America decided to strategically subsidize the consumer side first, which was crucial in catalyzing the adoption of credit cards.
Cryptocurrencies have one more aspect that increases the complexity of achieving network effects. The supplier of the platform is not centralized. The supplier of the platform on which merchants and consumers interact, is decentralized. This makes it difficult to agree on developing strategies to develop the ecosystem as whole and eventually just leads to a free-for-all of short term incentives.
BOScoin aims to overcome these issues through the Congress Network and the Commons Budget features.
The Congress Network is a decision making body within the BOScoin network. And anyone who contributes to the network by being a node operator will be given a voting right. Through this Congress Network feature, BOScoin ensures that core platform software will be updated and modified with long-term strategy selected through voting system, most likely about improving adoption rate at the beginning, whereas bitcoin still debates on block size.
Not only the ecosystem itself, BOScoin can also promote adoption through the usage of Commons Budget. Out of the total 5 billion BOScoin that are issued, 1.8 billion BOS are issued as the Commons Budget. When converted to the ICO price, the Commons Budget is worth roughly 13.8 million US dollars. Anyone can submit their idea, gather votes, and receive kickstarter funding from Commons Budget to develop the project and attract end-users.BOScoin Issuance Share
With these features of BOScoin, it is conceivable that agreement on developing strategies for ecosystem will be made in right time, and adoption rate will be quickly increased through attractive applications on top of secure protocol.
In the next post, I will cover the details on how the proposal system works.
The Commons Budget — Part 2
Many decentralized organizations suffer from decision making issues. We believe that decision making should be fair and efficient. Getting the consensus component right is crucial to our BOScoin framework in order to operate in a decentralized commune manner.
At BOScoin, we believe all users have a voice. Which is why we have a proposal system which forms the governance of how BOScoin operates and provides a medium for anyone to propose ideas to the community relating to the betterment of the BOScoin ecosystem.
If accepted, BOScoin from the Commons Budget may be provided to the proposer at regular installments. The release of the installments will be based on a consensus voting regime.
BOScoin Voting Process
Proposals may be initiated at any time, however the system only accepts proposals between the 1st to the 3rd Monday of the month at 00:00 GMT. There are three classifications of proposals which the voting process will differ only slightly :
- Significant Financing Proposals : Proposals that intend to spend more than 1,000,000 BOS (25 BTC at ICO price).
- Significant System Proposal : Proposals that wish to change the BOScoin system. Once a Significant System Proposal is passed, the contents of the proposal can be immediately applied to the system through an update of ontologies. Examples may include changes to Transaction fees, voting conditions, and coin freezing interest.
- Basic Proposals : all other proposals from the above. Examples may include: application development using the BOScoin platform or marketing pursuits to promote the coin.
(Significant Financing Proposals are quite self-explanatory relating to the investment requirements from the Common Budget pool of BOS)
Significant proposals will require an initial deposit which will be returned upon cessation of the proposal.
The proposal will utilize the Trust Contract functionality on the BOScoin system which certain inputs will be mandatory to guarantee the proposal (e.g. project milestones).
Sustaining a Fair Voting System
Voting on the proposal commences on the 3rd Monday of the month. and concludes on the 4th Monday of the month at 00:00 GMT. Only members of the Congress Network can vote – please refer to my previous publications for an explanation on the network, however to become a member you must satisfy 2 conditions:
- Freeze 10,000 BOS at a minimum
- Set up a fully synchronized node at stable speeds
There are three options to vote for against a proposal: agree, reject and neutral. For Basic Proposals, voting is not mandatory, however for any Significant Proposal, a vote is required for every node – if this is not met, the frozen coins of that node will be released, the Congress member will revert back to a non-node operator status, and the user will not be able to freeze coins for a two week period. A discussion board will also be created to facilitate the Congress members with their vote.
Can you vote more than once? Yes – each node constitutes of one voting privilege, on the assumption that they are a member of the Congress Network; however it is important to note that for each additional node a Congress Member has, the returns are reduced.
How Everyone Benefits from Fair Consensus
Security and trust is key at BOScoin and the proposal process should not differ. Once a proposal is finalized and agreed upon, the release of ongoing fund installments supporting the proposal will be included in the next voting cycle, and so on.
The end of a proposal funding is determined by either the proposal end date (automatic cessation from the Trust Contract function), or a consensus from the votes to stop the monthly installments. This protects the Common Budget fund to ensure the consensus is happy that progress is made on the proposal (a discussion board will facilitate this).
In the end, everyone can be a part of the ecosystem!
Learn more about BOScoin — BOScoin ICO
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How to Solve Consensus Conflicts in Blockchain
The consensus mechanism is the essence of blockchain. Generally, the consensus mechanism works when the blockchain confirms transactions and makes the blocks. Bitcoin confirms the data when the data is recorded by 51% of the mining nodes participating in the current Bitcoin network. Bitcoin adopts a majority consensus. Many public blockchain have consensus mechnanisms. We’ll discuss the different types of consensus mechanism later in the essay.
The exit, modification of logic and policies implemented in blockchain, is one major conflict arising in the consensus. While Bitcoin developers have worked on improving the performance of Bitcoin for years, developers have yet to reach consensus.One primary example of a consensus conflict is the “hard fork” of Bitcoin, where the birth of two Bitcoins and the division of the Bitcoin community is taking place.
Ethereum underwent a similar problem. In the DAO incident, the Ethereum Foundation used hardforking as a last resort. However, Ethereum failed to establish a complete consensus, resulting in a split between “Ethereum” and “Ethereum Classic”. Hardforking proceeded without any consent rules on consensus in advance, so the community had to be split.
The Bitcoin and Ethereum hard forks shows the importance of a consensus mechanism in the blockchain ecosystem. If these kind of accidents continue to occur, the credibility of blockchain and the entire cryptocurrency ecosystem would decline.
The fundamental cause of consensus conflicts is not because Bitcoin or Ethereum are fundamentally flawed, but rather that blockchain is an emergent technology in it’s infancy. Bitcoin and Ethereum have succeeded in their own right, but they have not been able to predict how to operate after their success. Most existing blockchain projects, including Bitcoin/Ethereum, have no clear rules to define: how operational issues are agreed upon, new functionalities are added, and policy are reviewed.
Even if cryptocurrencies become more established, there will always be: errors in the code itself, incomplete initial design, and policies that need to be modified according to contemporary market requirements. If there are no consensus guidelines set beforehand, consensus conflicts will continue to occur. Therefore, we need to design a governance system for the blockchain itself. We need two kinds of consensus systems in blockchain: one is for data the other is for blockchain itself.
We need two kinds of consensus systems in blockchain: one is for data the other for blockchain itself.
Recently, new blockchains equipped with built in governance system tried to cope with this problem. Dash is the forerunner to implement governance system in their blockchain. Dash, who call themselves as the “First Self Governing, Self Funding Protocol”,proposed a decentralized management system based on the masternode voting mechanism in 2015. Dash has been steadily developed using this governance system. Recently the price of Dash surpassed over $100 (March 16th, 2017). A stable governance structure may be the reason for the increased value.
More and more recent cryptocurrencies have governance systems. Qtum, a Chinese cryptocurrency, has governance system named the “Judgement Committee”. Dfinity and Tezos also have governance systems. Needless to say BOScoin has a governance system as well.
BOScoin: Cryptocurrency Platform for Trust Contracts
In the above table, you can see two important features:
- Firstly, whether the governance system is bonded systematically with blockchain or not.
- Secondly, whether the new version or policy is applied automatically or manually.
These features are important as blockchain should be accurate and immutable. If the governance system stops working in the blockchain, there is a possibility that decisions made would not be applied.
Also if the update program/policy is not automatic, there would be discrepancy between the old and new version. If the software is dependent on humans for updates, there is a chance a biased human-operator may not implement the new update entirely.
If the new version contains crucial function/policies, the delay/denial of program updates may cause the split of blockchain and community (i.e hardforking) similar like the Ethereum. Dash has no auto-updating function so have a penalty policy to urge the masternode to maintain the latest program.
For example, suppose we’re going to change the transaction fee fixed from 0.01 coin to 0.001 coins. If the changed transaction fee is not applied in time, transactions cannot be confirmed because of the different fee of each node. So it’s important to have the governance system and auto updating function built in the blockchain.
Three cryptocurrencies Dfinity, Tezos and BOScoin are equipped with built in governance and auto updating system. Dfinity proposes BNS(Blockchain Nervous System), a kind of AI. The BNS has absolute control over the network such as freezing, unfreezing, and modifying otherwise independent software objects (smart contracts). The BNS can also configure the DFINITY client software run by users, for example to make the users upgrade to a new version of the network protocol. TheTezos Team state they implemented voting rights from the start with a built-in consensus mechanism. So upgrades are seamlessly integrated into the protocol, with complete transparency.
BOScoin Congress Network
BOScoin suggests a Congress Networkwhich can handle the distribution of Commons Budget and the modification of codes/policies implemented in blockchain. The Congress is a governance body inside the BOScoin platform. Full node operators are given a vote to decide on how to distribute the Commons Budget and decide whether to modify the existing codes/policies.
For example, the transaction fee is currently fixed at 0.01BOS, which can be burdensome someday if the price of the BOScoin is raised or the BOScoin is used for micropayments. In this case, the BOSCoin Congress Network will vote on the agenda to change the transaction fee. If the agenda is approved, the new version will be updated automatically to the nodes and the new policy will be activated automatically at a predetermined block height.
If these system are implemented in blockchain, the blockchain can adjust and evolve itself according to the contemporary environment. It these systems work successfully, we can build a true DAO(Decentralized Autonomous Organization) self-governing community which is the dream of blockchain enthusiasts. I believe these kinds of democratic systems are the key to sustaining and growing the cryptocurrency ecosystem. Cryptocurrencies equipped with a governance structure will be the next wave of blockchain technology.