table of contents - dcm whitepaper ver.1.0.0.5.pdfcondition of the & quot; proof of work &...
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Table Of Contents
01
01 Introduction to Bitcoin and the Existing Concepts
02 Bitcoin as State Conversion System
03 Mining
04 Merkle Trees
05 Blockchain and Mining
06 DCM Coin
02
01 Five Benefits of DCM Coin
02 Collaboration with Aztec
03 Dubai Conference
04 Board Members
01 Introduction to Bitcoin and the Existing Concepts
The concept of decentralized digital currency has been around us
for decades like alternative applications such as property
registration.
The anonymous e-cash protocol in the 1980s and 1990s was
based on a low-level cryptographic algorithm known primarily as
'Chaumian blinding' and offered a strong protection of personal
information, but did not receive much attention because it
depended on a centralized intermediary.
In 1998, Wei Dai's b-money was the first to suggest the idea of
issuing monies through a way of solving distributed consens and
computational puzzles, but did not provide details on how to
actually implement the distributed consens. In 2005, Hall Finney'
introduced the concept of "reusable work proofs". The system was
a combination of b-money's idea and Adam Back's 'Calculation
Difficulty Hashcash Puzzle.'
However, by putting computing that requires external trust on the
ground, it has failed again to implement the ideal. The
decentralized currency, which was first implemented by Satoshi
Nakamoto in 2009, combines the existing algorithms used for
ownership management through public key cryptography with a
consensus algorithm known as "proof of work" . The way in which
work proofs are based is very innovative, because it solves both
problems at the same time.
First, it provided a simple but fairly effective consensus algorithm.
That is, all the "nodes" on the network have been able to agree
collectively on the set of standard updates that occurred in the
status of accounting for Bitcoin.
Second, by allowing anyone to participate in the consensus
process, it could not only solve the political problem of consensus
decision, but also provide a mechanism to defend the Sivil Attack
at the same time. Instead of any formal barriers such as 'it must
be a subject registered on a particular list' as a condition of
participation in the consensus process, the economic barriers-the
size of each node's decision power was replaced in direct
proportion to the node's computational capability.
Since then, a new consensus algorithm has emerged, which is
proof of equity, which means that each node needs to calculate
the decision power of each node based on the amount of money
held, rather than the computational ability of each node. The
discussion of the relative merits of these two methods is beyond
the scope of this paper, but I would like to point out that both
the methods can be used as the basis for encryption currencies.
02 Bitcoin as State Conversion System
From a technical point of view, accounting for cryptocurrency,
such as a bit coin, can be thought of as a state transition system.
This system has a "state" of current bit-coin ownership status and
a "state transitionfunction "" that takes this current state and
transaction and outputs the new state as a result.
In analogy to the standard banking system, the state is a balance
sheet and the transaction is a request to transfer $ X from A to B.
The state conversion function reduces $ X in the account of A
and $ X increases. If the amount in the account of A is less than
$ X at first, the state conversion function returns an error. This
state transformation can be defined as follows in the bit coin
book.
Here is an example of a banking system:
In a bit coin, "state" is a set of all coins that have been created
but not yet used. Each UTXO has its own coin amount and
contains UTXO's encoded public key information, which is defined
as a 20-byte address.Transactions include one or more inputs and
outputs, Contains the reference information for the existing UTXO
selected in the message and the encrypted signature generated
by the private key corresponding to the corresponding wallet
address and each output has new UTXO information to be added
to the state.
The state conversion function `APPLY (S, TX) -> S '' can be
defined as follows.
1. For each input of TX:
* If the referenced UTXO is not in `S`, return an error.
* If the signature does not match the owner of the UTXO, return
an error.
2. If the sum of the UTXO sums used in the input is less than the
sum of the output UTXO sums, an error is returned.
3. The UTXO used in the input is deleted and the output UTXO is
added and `S` is returned.
Where the first process of number 1 is to prevent nonexistent
coins from being used in the transaction and the second one is
to prevent other coins from being used in the transaction. The
above procedure is applied to the actual bit coin payment
process as follows. Suppose Alice wants to send 11.7 BTC to Bob.
First, from the Alice Wallet address, you should fiind the set of
UTXOs with a sum of at least 11.7 BTC or more. In most of the
real cases, you will not be able to select exactly 11.7 BTC right
away. These three UTXOs are the input to the transaction and two
outputs. One of the outputs is a new UTXO with an 11.7 BTC, and
the owner becomes Bob's purse address. And the other is a new
UTXO with a "change" of 12 (6 + 4 + 2) - 11.7 = 0.3 BTC, and the
owner becomes Alice's own wallet address.
03 Mining
It would be very simple if we could implement what we described
above as a centralized service based on trust. This is because you
only have to save the process of changing state on the central
server hard drive.
But Bitcoin is trying to build a decentralized call system. To do
this, the transaction ordering system that everyone can accept
must be combined with a state change system. The distributed
coalescing process of bit coins requires nodes that attempt to
continuously create a transation package called & quot; blocks &
quot; in the network. The network is planned to generate one
block about every 10 minutes and each block contains a
timestamp, a nonce, a reference to the previous block, and a list
of all transactions that have occurred since the previous block.
Through this process, a continuously growing blockchain is
created, which is continuously updated to show the latest state of
the bit coin book.
The algorithm to check whether one block is valid in this scheme
is as follows.
1. Make sure that the previous block referenced by this block
exists and is valid.
2. Check that the time stamp value is larger than the time stamp
value of the previous block and is within 2 hours.
3. Verify that the proof of work is valid.
4. Set `S [0]` to be the last state of the previous block.
5. Assume `TX` is a list of transactions in the block with` n`
transactions. If any one of the sets `S [i + 1] = APPLY (S [i], TX [i])`
returns an error for every i of the closed interval `0 ... n-1`, ) And
returns to the end.
6. Return true and register `S [n]` as the last state of this block.
Basically, each transaction in the block must cause a valid state
transition. Note that the state is not recorded in any way in the
block here. The state is completely abstract that the validating
node has to calculate and remember each time, which can be
computed by sequentially applying all transactions from the
original state to the corresponding block. Notice the order of the
transactions that the miner will include in the block. Suppose
there are two transactions in a block, A and B, and B consumes
the output UTXO of A. If A is a transaction prior to B, then the
block is valid, but not valid.
The characteristic part of the block validation algorithm is that the
condition of the & quot; proof of work & quot; condition is that
the double-SHA256 hash value of each block, represented by a
256-bit number, must be smaller than the dynamically adjusted
target value. The goal of proof-of-work is to make the creation of
blocks computationally difficult, preventing attackers from
arbitrarily manipulating the entire blockchain.
SHA256 is designed as a pseudo-random function that is
unpredictable at all. Therefore, the only way to create a valid
block is to increment the nonce value of the block header and
repeat the process of verifying that the new hash value that is
created meets the above conditions.
As compensation for these calculations, the miners of each block
at the present time are entitled to 25 BTC. If there is a transaction
with a larger input amount than the output amount, the
difference is obtained as a "transaction fee". This is the only way
BTC is issued, and the raw state does not include any coins.
To better understand the purpose of mining, let's see what
happens when there is a malicious attacker. A bit coin based
cryptosystem is known to be secure. Therefore, the attacker will
target 'transaction sequence', which is not directly protected by
the cryptographic scheme in the bit coin system. The attacker's
strategy is very simple.
1. Pay 100 BTC to the seller to buy any item.
2. Wait for the goods to be sent.
3. Create a transaction that sends the same 100 BTC to the
attacker himself (double payout attempt).
4. Make the Bitcoin network aware that the transaction that it
sends to the attacker itself is performed before the transaction it
pays to the seller.
After step 1 occurs and a few minutes later, some diggers will
include the transaction in the block. Let this block number be
270000.
In approximately one hour, five blocks will be added to the chain
following this block. These five blocks are "confirmed" by
indirectly pointing to transaction # 1 above. At this point, the
seller will determine that payment has been completed and send
the goods.
Since we assumed it to be a digital product, the transfer ends
immediately. Now, the attacker creates another transaction that
sends the same 100 BTC to the attacker himself. If the attacker
simply attempted a transaction, the miners will run `APPLY (S, TX)`
and will notice that this `TX` tries to consume UTXO that no
longer exists in this state. So this transaction will not proceed.
Instead, it creates a block chain "branch point" by mining another
version of block 270000 that contains a new transaction that
points to the same parent block 269999 but replaces the one sent
to the seller.
And since the attacker's new block 270000 has a different hash
than the existing 270000, the original blocks 270001 through
270005 do not point to the block of 7 attackers.
Therefore, the original chain and the new chain of attackers are
completely separated. The rule of the bit coin network at this
branch point is to recognize the longest block chain as true.
While the attacker is working alone in his chain, the legitimate
miners will work on the original 270005 chain, so to make the
attacker's own chain the longest, the computational ability of the
other nodes in the network must be greater than the
computational ability.
04 Merkle Trees
Left: Only a few nodes in the Merkle tree are sufficient to prove the validity of the branch.
Right: An attempt to replace a part of the Merkle tree eventually produces a discrepancy somewhere
in the upper hash value.
An important extension of Bitcoin is that blocks are stored in
multiple hierarchies. The "hash" of a block actually means only
the hash of the block header. This block header contains about
200 bytes of time stamp, nonce, previous block hash, and a root
hash of the Merkle tree generated by all the transaction
information contained in the block.
A merge tree is a kind of binary tree that is located at the bottom
of the tree and has many leaf nodes containing base data, an
intermediate node composed of hash of two child nodes
immediately below itself, hash of two child intermediate nodes Is
a set of one root node at the "top" of the tree.
The purpose of the Merkle tree is to allow data in any block to be
separated and delivered. If a node of a bit coin downloads only
the block header from one source and the transaction
information associated with that block header is downloaded
from another source, it is guaranteed that the data is still accurate.
This is possible because the hash value of the lower nodes in the
Merkle tree affects the upper node, so that if a malicious user
replaces the transaction information at the bottom of the merge
tree with a fake one, This is because the root value of the tree
changes. In other words, the hash of this block changes as a
result. This will cause the block to be recognized as a completely
different block, and it is certain that it will have invalid proof of
operation.
The Merkle Tree protocol is the basis for long-term sustainability
of bitcoin networks. A "full node" that stores and processes all the
information in each block in a bitcoin network requires nearly 15
GB of disk space as of April 2014 and is growing by more than 1
GB per month. At present, it can be accommodated on a desktop
computer, but not on a smartphone. Later, it will be able to
maintain a few businesses or pool nodes. A protocol known as
"simplified payment confirmation", on the other hand, enables
another type of node called a "light node". The light node
downloads the block header and verifies the proof of operation in
its block header.
And make sure that only "branches" for related transactions are
downloaded. In this way, allowing only a very small percentage of
the entire block chain to be downloaded will ensure strong
security and allow you to determine the status and balance status
of any transaction.
05 Blockchain and Mining
Ethereum blockchain are similar in many respects to bit coin
block chains, but with some differences. The main difference
between etheric and bit-coin structure for each block chain
structure is that the Etheric block, unlike the bit coin, has the
transaction list and the most recent state copy. In addition, two
different value-block numbers and difficulty- are also stored in
the block. The basic ether block verification algorithm is as
follows.
1. Make sure that the referenced previous block exists and is valid.
2. Make sure that the timestamp of the current block is larger
than that of the previous block referenced, but less than 15
minutes later than the current block.
3. Make sure (various other low level concepts of Ethereum ) such
as block numbers, difficulty, transaction routes, uncle routes, gas
limits, etc. are valid.
4. Verify that the proof of work contained in the block is valid.
5. Let S [0] be the last state of the previous block.
6. Let TX be the n transaction list of the current block. Set S [i + 1]
= APPLY (S [i], TX [i]) for 0 to n-1. If the application returns an
error or the total gas consumed in the block up to this point
exceeds GASLIMIT, an error is returned.
7. Add the compensation block paid to the digger S [n] and call it
S_FINAL.
8. Verify that the merge tree root of state S_FINAL is equal to the
final state root of the block header.
If these values are the same, the block is a valid block, otherwise
it is judged to be invalid.
This approach seems at first glance to be very inefficient due to
the need to store all states in each block, but in practice it is
comparable to bit coin in terms of efficiency. The reason is that
the state is stored in a tree structure and only a small part of the
tree changes after every block. Normally, most of the contents of
the tree are the same between two adjacent blocks, so once the
data is stored, it can be referenced using a pointer (a hash of the
subtree).
This kind of special tree, known as the Patricia tree, modifies the
merge tree concept to not only modify the node,
This allows you to perform these tasks.
Also, since all state information is included in the last block, there
is no need to store all the block chain histories. If you apply this
method to bit coin, you will save 5-20 times of storage space.
From a physical hardware standpoint, it is easy to doubt that the
contract code is "where to run".
Here is a simple answer. The process of executing the contract
code is part of the state transition function definition, which is
part of the block verification algorithm. Thus, if a transaction is
included in block B, the execution of the code to be caused by
that transaction will be executed by all nodes currently
downloading and verifying block B, either now or in the future.
DCM Coin
DCM (digital currency mining) Coin is a new cryptocurrency that
automatically increases its value by just putting the profits from
cryptocurrency mining business of Digital currency Co., Ltd into
account. Cryptocurrency mining business is to mine a variety of
cryptocurrency on a large scale and more quickly by constructing
the so-called infrastructure.
In general, the infrastructure is the term used to describe piping
facilities such as water pipes of purification plants needed for
daily life in the city or equipment such as power station, power
lines and a wattmeter to use electricity. Roads, railroads and
communication networks also belong to the large-scale
infrastructure. The infrastructure of cryptocurrency mining
business includes high-performance networking
environment(Internet lines), large amounts of power to operate
the grand diggers, high-capacity of energy for diggers, big
efficient coolers against overheating, and air conditioner and so
on.
Digital Currency Co., Ltd is proceeding the cryptocurrency mining
business through collaboration with Astec which is a company
specializing in the network system.
What you need is a network infrastructure (Internet line).
The first thing we need for the infrastructure of the
cryptocurrency is the network infrastructure (Internet lines).
But the network infrastructure is already equipped since the
internet connections are installed in most parts of the world. Next,
all users should have terminals such as smartphone or computer.
Nowadays, as even indigenous people living in Africa or jungles
have their smartphones, it is also widely spread on the earth.
Next, each user must have a smartphone. Or have a computer.
Even now, even indigenous peoples in the jungle in Africa and
have smartphones. So that indicates they are being used by
almost everyone on earth.
So what is lacking is a mining machine. Connection to the
bitcoin network via this mining machine enables the transactions
on the Exchange between smartphones or users by revealing
those to the public. By installing mining machines all over the
world, you can build the infrastructure of virtual currency.
Let’s change the subject a little bit and take a look at the bitcoin
chart last year. The bitcoin reached the highest point of 2.2
million yen (about 22 million won in Korean currency) at the end
of December last year, and it has declined since then. What it
peaked at 2.2 million yen means that it requires a lot of people
and at the same time rise of the price indicates that it has
become famous.
Growing demand for coin resulted in some situations where
someone could not receive it even after 24 hours.
This is just due to a lack of mining capacity. Or it can also be
expressed as the insufficient capability of bitcoin network
processing. It hit the lowest price of 2018 of 690,000 yen (about
6.9 million won in Korean currency) on April 2.
Compared to 2.2 million yen last year, it became less congested.
The listed prices of BTC are showing a recovery pattern.
It is one third of the price at the end of the year, but compared
to last March where the price was about 100,000
yen(approximately one million won in Korean currency), 100,000
yen went to 690,000 yen, which means, it started from the seven
times price of the lowest point in the same period of the previous
year.
Since it started at seven times the price compared to last year
and is currently recovering, it is expected that lack of mining
ability, that is, infrastructure capacity will be intensified.
Therefore, our company is also constructing mining farms.
The mining farm features AI Mining and it is hard to get benefits
from the bitcoin mining as its market isvery competitive all over
the world. There's also a plan to simultaneously mine a variety of
coins, not limited to Bitcoin, but mainly using various types of the
coin such as bitcoin cash, Ethereum, lightcoin, Monero, Mona, and
Electonium.
Since AI is the most effective, the most profitable coin that can
earn the most money is mine first and automatic conversion is
carried out.
Each coin obtained ends up being converted into bitcoin, and AI
keeps those first. Using this AI mining system helps to make
profits efficiently, and it is still in the process of improvement.
At this time, 120 machines started operating and an expansion
project is underway to increase the number of machines to 800
per plant. One of the most significant features of DCM is that it
uses some of the mining rewards generated by the mining
machine to invest in DCM market and automatically keep making
a purchase. Through this process, market price rises by itself and
even if someone sells off DCM at once in a large quantity, it can
be supported by the mining rewards and the value will not
descend with ease.
This means that the market price will rise steadily. For example,
even if a person sells a large amount of DCM, it will be difficult to
go down because he buys it by mining maintenance.
Plus, even if no one purchases in the market, price rises
automatically. therefore, it can be said to raise the number of
purchases of itself beyond control. That is the biggest feature of
DCM.
Five Benefits of DCM Coin
With the increasing number of poverty families in Japan, where
the gap between the rich and the poor is increasing, DCM can be
utilized to invest in the fund of student loans bankruptcy or
contribute to institutions for children in need. In Japan, if we look
at the legal system of the solidarity guarantee, the comprehensive
guarantee is limited or restricted because a joint surety on the
civil law doesn’t have the highest right of appeal as well as the
right of appeal of the prosecution and the benefit of the
discrimination. Meanwhile, there are moves to abolish the
solidarity guarantee system, and one out of two college students
has no choice but to borrow money. It is hard to find a job even
after graduation, or they can be employed as a temporary worker.
This makes it difficult to pay back their loan and leads to self-
destruction. It is reported that these kinds of incidents
frequently happen in Japan and as many as 10,000 Japanese get
into this miserable condition every year.
This is a dangerous social phenomenon, and even parents, joint
surety, have been implicated, leading to the bankruptcy of their
families. On the other hand, some people are trying to solve this
problem. Yank Barry runs a charity called the Yank Berry
Foundation and is known as the Global Village Champions
Foundation.
There are literally world-famous celebrities and prominent
champions belonging to this group. For example, Muhammad Ali
and Celine Dion are the members of this foundation.
These people are at the center of charity work. Among them,
Yank Berry is the person who is setting up Global Village
Champions Foundation.
These people are at the center of charity work and It was Yank
Barry who founded this global connection.
Here is how the Yank Barry Foundation and DCM donate their
fund. For each DCM transfer, a 0.15% commission is deducted,
and it is collected to invest in Yank Barry Foundation. That is to
say, owning or exchanging the DCM itself is a contribution to the
college student loan issues and indicates that the owner of DCM
can help many children in need.
Collaboration with Aztec
Digital currency Co, Ltd runs its bus in partnership with the
company Astec. Astec is the company that established a
corporate data center for only the famous large companies and is
made up of professional engineers.
As can be seen in the actual construction cases, this company
proved their expertise in the data center. So it is also participating
in mining farm establishment as a supervisor.
Digital currency Co., Ltd and Astec are also working together on
measures against the heat of mining machines.
Because of the high heat content of the mining machine, it is
easy to break down and must be cooled to maintain performance.
Because It is necessary to cool down the mining machine to
prevent failure, ordinarily large air conditioners must be installed
to cool the entire plant. Reducing costs is as important as raising
profits in the mining business, as it is ultimately profitable to
deduct a significant amount of electricity that occurs in this
process.
To do this, Digital Currency and Aztec are developing a non-
heating mining machine, and If this becomes feasible, the mining
plant can be reduced in size. Generally, to operate a factory,
mining plants placed a large number of machines and put
massive amounts of electricity and money into it.
If the non-heating machine is invented, as there is a difference
between a grand supermarket and a convenience store, with
showing a contrast to a supermarket that needs a lot of money,
mining can be done anywhere. Besides, it will be able to build a
downsized mining plant, like the convenience store, which is
distributed in tens of thousands of locations nationwide.
For example, a closed convenience store of bankruptcy, which is
commonly found in local cities, could soon turn into a mining
plant. Convenience store-sized mining plants or much smaller
container-sized plant can be designed so that you can mine
everywhere in Japan. This could turn Japan into a mining giant.
Also, one of the main reasons why Digital Currency works with
Astec is that they have a robust network infrastructure.
The most crucial difference between other companies and Digital
Currency is that they can only use common commercial fiber lines
used at home.
If hundreds of families share only one fiber optic line, this will
inevitably lead to a slowdown in transmission speed. No matter
how many high-tech machines are placed in the plant, there is a
limit to the capacity of mining machines because they cannot
function properly if the internet lines are slowed down.
In the case of Digital Currency, it is possible to take over a line
using an Aztec select line exclusively. So, as the number of mining
machines increases, their power will be higher. It is also a
difference from other plants.
Also, Astec is dealing with so-called global corporations, and it is
possible to collaborate with such companies. Below is a partial list
of the leading construction projects actually undertaken and the
list is based on the company internal data.
Japan Corporation of Apple, the world's largest stock market
Amazon Headquarters, the world's leading logistics company, and
companies related to Amazon
Goldman Sachs, the number one investment bank in the world.
Wal-Mart, the best retailer in the world (running under the name
Seiyu in Japan)
Aztec is a professional group that is constructing only top-notch
global corporations such as data center of Tsutaya which is
culture consultancy club. These excellent corporate clients are
spreading DCM and mining business around the world through
the construction of Aztec.
With the help of Astec which has links with these enterprises, it
will be able to promote our company itself not only create the
unprecedented partnerships by sharing the existing service.
Dubai Conference
The conference event will be held because of the invitation of
Dubai, the world's most affluent community, asking for
information about DCM and mining projects issued by Digital
Currency with the cooperation of Astec.
The event, which takes place on July 2, will be attended by more
than 100 people from a few Dubai royal families.
The Dubai royal family is well known that one person has at least
100 billion yen (about 1 trillion won) worth of assets and it is
highly anticipated that how they will show their life attitude. The
conference's situation will be delivered in news bulletin.
Board Members
Advisor
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