How It Works
Bitcoin Mobile (BCM) has been developed to solve the five major problems with Bitcoin.
Problem 1 – Energy
Bitcoin mining faces huge challenges based on the high energy consumption needed to operate, this glaringly obvious issue will be solved utilising the Bitcoin Mobile zero consumption mining system.
Traditional fiat credit or debit cards obviously do not have energy consumption problems, Bitcoin Mobile has used visa during the research and development of this alternative to the Bitcoin transaction protocol. Bitcoin Mobile offers private/permissioned principles within the exchanging of BCM with other currencies , alongside our zero energy consumption, thus providing visa transaction speeds to cryptocurrency through mobile payment technology.
Bitcoin Mobile application also has no demand for energy during use, this delivers a superior option to the high energy consumption range provided by Bitcoin core, which takes up to 24kw energy per annum, the energy problem that Bitcoin has made come about is based around the difficulty connected to solving the mathematical functions within bitcoins, we are not a fork of Bitcoin, we are independent from Bitcoin core, with our own dedicated private/permission based blockchain.
Bitcoin energy is going to increase due to the Proof of Work (PoW) protocols will become harder as time goes on returning fewer coins whilst utilising additional energy and computing power.
The Bitcoin Mobile system works efficiently by rewarding miners/users for standard activity that will occur on a mobile during everyday use.
This protocol is called Proof of Use (PoU), this is a protocol and technique that is less demanding in order to prove ownership of coins and for the environment to run without use of ASIC, CPU and GPU hardware.
Problem 2 – Security
The Bitcoin Mobile blockchain is unique – a private blockchain which is locked from hackers, high resource miners and ASIC, GPU and CPU attacks, due to the permissioned and private smart contract. Bitcoin Mobile does away with the need to perform large calculations utilising smart(er) blocks, we have concentrated on advances in mobile and OTA security algorithms and encryption and have brought those advances into the Bitcoin Mobile (BTM) currency and mining environment.
Cryptography has been around for thousands of years. One of the earliest recorded uses of cryptography was (allegedly) by Julius Caesar. He used the Caesar Cipher about 2,000 years ago to send encrypted military messages.
In the mid-1970s there was a major development in cryptography that changed everything: public key cryptography. Before this development, it used to be that if Bob encrypted a message to Alice, the key he used to protect that message was the same key that Alice would use to decrypt the message. This is called a symmetric key algorithm.
Public key cryptography, however, uses an asymmetric key algorithm. In these systems Bob could use a public key to encrypt a message to Alice, but Alice would use a different private key to decrypt it.
This adds a new layer of security as only Alice can decrypt the message since she is the only one with the private key. This is what makes online shopping possible. Credit card details are encrypted using a public key, then only the retailer has the private key to decrypt those details to finalize the transaction.
Blockchain and cloud computing, cryptography’s next frontier enabling e-commerce is only one of cryptography’s many major contributions to our digital world. As cryptography continues to evolve, researchers and technologists continually find new ways to implement it as we see the emergence of new technologies. Let’s take blockchain for example.
Just about everyone has heard of blockchain at this point, but not everyone understands it. To summarise, blockchain is essentially a shared database populated. Blockchain technology provides a secure, efficient way to create a tamper-proof log of activity. The most widely known application of blockchain is Bitcoin.
Cryptography is used in two ways here. The first is via algorithms called cryptographic hash functions.
Using a chain of hashes of the database ensures that the order of transactions is preserved. Thus, the blockchain creates a something akin to what in finance is called a ledger. But unlike a centralized ledger held at one bank, a blockchain ledger is distributed across many computers, with each computer having the same view of the ledger. This is why one often sees blockchains referred to as “distributed ledgers.”
The second way cryptography is used in this instance is to create digital signatures, which are used to provide authentication, data integrity, and non-repudiation. A digital signature is generated by combining a user’s private key with the data he or she wishes to sign. Once the data is signed, the corresponding public key can be used to verify that the signature is valid.
These digital signatures are used to ensure the data put on the blockchain is valid. In Bitcoin the digital signatures are used to ensure the correct amount of value is transferred from one Bitcoin wallet to another. For example, the digital signature ensures that Alice transferred the value out of her Bitcoin wallet, and not out of Bob’s wallet.
I know this may all sound complicated, but the final point is this: blockchain and cryptocurrency would not be possible without cryptography.
Bitcoin Mobile has a security solution called .encrypto built with mobile in mind, this is an adaption of the security algorithm used by mobile payment providers, transport (bus, train and airline ticketing), car park payments and other smart cities services in the UK.
.encrypto was created by REUM blockchains:
The protocol is described here as our Bitcoin security solution is for encrypting and decrypting a financial coded message.
The message is being sent from Alice to Bob. Firstly we will provide the high level scheme:
- Alice generates common secret via Di_e-Hellman key exchange protocol in the same
.encrypto one-time keys are generated.
- She encrypts her message under this key and sends the transaction.
- Bob re-generates the common secret, just like he recovers .encrypto outputs private keys.
- He tries to decrypt all available messages in the transaction and determines (via a check- sum) those which were sent to him.
Let (A;B) be Bob’s .encrypto address and H() to be cryptographic hash function Keccak.
Alice generates a random value r and computes the common secret x = H(r _B). Addition- ally she stores R = r _ G.
Then Alice takes the plain-text message M and adds four zero bytes at the end. The motivation of this step will be shown later. After that she uses x as a key for stream cipher
ChaCha20 and gets a pseudo-random bit sequence S.
The resulting encrypted message is E = M _ S. It is stored in the transaction along with
Bob receives the transaction and re-generates the common secret as x = H(b _ R). With x he recovers the same sequence S.
Then for every encrypted message Ei he computes Mi = Ei _ S. Mi which have the last four bytes zeroed indicated they were sent to him, i.e. decrypted correctly. The others may belong to other recipients of the transaction or even be Alice’s comments for herself.
Our solution does not rely on an output properties: payee, amount, any other content. That means that transaction comments may be used separately with money transfer, i.e. like just private messages (without payments). Alice can send many messages to different addresses in a single transaction which sends some funds to herself. Due to .encrypto’s un-linkable one-time keys no one can prove that there were no money transfer at all: i.e. private message via transaction is indistinguishable from ordinary transactions.
Problem 3 – Speed:
Bitcoin Mobile utilises .vimoose a blockchain software which offers smart(er) block technology (deletable blockchains), this software allows Bitcoin transactions to be sped up, due to smart(er) blocks only needing to read the last transaction to perform the next, meaning a user does not need to download the whole bitcoin chain, or even part of the chain, thus bringing transactions up to visa or paypal level speeds.
The speed of Bitcoin Mobile transactions prepares users for the future in cryptocurrency payments and we provide integrated support into fiat currencies (regular money) whilst handling more transactions at faster speeds than Bitcoin and all other adapted coins that use Bitcoin as their environment.
BCM is a truly decentralised cryptocurrency with a main focus on security, problem solving the issues surrounding speed of trade, with R&D and pay per user tests projecting Bitcoin Mobile can get to over one million transactions per one second upon completion.
Alongside smart(er) block technology where each block does not need to be downloaded and read per transaction, Bitcoin Mobile alternatively utilises shorter payment addresses similar to visa credit/debit card numbers. These shortened payment addresses are only 12 digits long thus adding to our ability to cut speed and storage values dramatically.
The Bitcoin Mobile application is available within your smartphone and offers a desktop client so users withdraw and deposit cryptocurrencies and fiat both environments offer cross-chain capabilities, also Bitcoin Mobile can facilitate coin swaps between fiat and cryptocurrencies at new levels of transactional speed giving users a seamless route into Bitcoin.
Problem 4 – Mining:
Bitcoin Mobile (BCM) is valued at 1:1 to a Bitcoin and is pegged directly to the Bitcoin market price. BCM is a mining utility token and trade currency for the Bitcoin Mobile and its private/permission based zero consumption mining environment.
Bitcoin Mobile (BCM) users can mine to gain access to Bitcoin in our environment. A same value cryptocurrency to Bitcoin.
Bitcoin Mobile (BCM) are generated using Bitcoin Mobile separate blockchain not associated with Bitcoin core apart from the price tether.
Bitcoin Mobile blockchain allows mining, that is mobile only and excludes ASIC, GPU and CPU based miners thus improving quality control and security within our permission based blockchain.
Bitcoin Mobile has a private key that enables mobile wallet to mobile wallet transactions.
The private key and information is controlled by the user, immutable, trustless, frictionless and your wallet data is totally private to you.
We offer users a mining environment offering proof of use protocol that runs in the background whilst you use your mobile The bitcoin mobile private mining application mines via a zero consumption hash rate of Hs.
Bitcoins Mining Centralization:
Since the creation of Bitcoin mining pools, the hash rate distribution of Bitcoin has become increasingly centralized. Today, ~10 mining pools control most of the network. The largest four pools control ~75% of the hash rate, and the largest two control more than 50%.
Although mining today is somewhat centralized, not all hope is lost for increased decentralization in the future.
Decentralized mining pools, like P2Pool, can also help lessen centralization. With P2Pool, miners still share hash power and receive more frequent payouts, but instead use their own blockchain to track and distribute payments, rather than a decentralized service.
Ethereum creator Vitalik Buterin also suggests that easily installable software could further weaken large pools. Software that allows anyone to create a high quality mining pool would create more competition and create many smaller pools 16nm Chips, Andreas Antonopoulos believes that 16nm ASICs could mark the end of mining centralization. Up until 16nm chips, the improvements made to ASICs had been exponential. This is visible in charts of Bitcoin’s hash rate (and difficulty):
Now that 16nm ASICs are on the market, Antonopoulos believes Moore’s Law will create a wall and only allow ASICs to get twice as powerful and efficient every two months.
The Future is Bitcoin Mining:
Although not Bitcoin’s most pressing problem, it is clear that mining centralization poses a threat to Bitcoin’s core concepts. It is quite likely that Bitcoin’s Mobile developers will create new solutions to ensure Bitcoin remains decentralized once scalability has been solved.
Problem 5 – Adoption:
Bitcoin Mobile can provide a tried and tested route to mass adoption with
consumption of blockchain services by every users. Bitcoin Mobile plans to fill this gap,
with a Bitcoin Mobile trade exchange in built into our mobile application, which will assist with the funding and development of the Bitcoin Mobile technology, allowing to us to further develop the software to provide a complete Bitcoin offering to our users.
Bitcoin Mobile has collated a set of blockchain projects, products and services, which are mobile oriented and will work within any smartphone, the phone will communicate and provide access to suites, configuration tools, individual mobile services, standard app ‘like for like’ dapps which we have identified for our mobile dapps suite and also mobile apps from the established crypto currency exchanges and blockchain service providers, we expect to solve and address some of the problems related to standards, security, trust and regulation by showcasing the best mobile dapps, mobile oriented blockchain platforms, bringing in Bitcoin Mobile’s private mobile only mining protocol (devoid of ASIC, GPU/CPUs), BCM launch consists of crypto related news and media, token trade information and a globally spread selection of established exchanges covering all viable cryptocurrencies and all these elements are baked securely within a node, a Smartphone being that node.
Bitcoin is becoming more popular by the day, BTC currency has highest market capitalization as the most used and discussed cryptocurrency.
How difficult is it to make a Bitcoin Mobile payment?
Bitcoin Mobile payments are easier to make than debit or credit card purchases, and can be received without a merchant account. Payments are made from a wallet application, on your smartphone, by entering the recipient’s address, the payment amount, and pressing send. To make it easier to enter a recipient’s address, many wallets can obtain the address by scanning a QR code or touching two phones together with NFC technology.
What are the advantages of Bitcoin Mobile?
- Payment freedom – It is possible to send and receive BCM – bitcoins anywhere in the world at any time. No bank holidays. No borders. No bureaucracy. Bitcoin Mobile allows its users to be in full control of their money.
- Choose your own fees – There is no fee to receive BCM, and many wallets let you control how large a fee to pay when spending. Higher fees can encourage faster confirmation of your transactions. Fees are unrelated to the amount transferred, so it’s possible to send 100,000 BCM for the same fee it costs to send 1 BCM. Additionally, merchant processors exist to assist merchants in processing transactions, converting BCM to fiat currency and depositing funds directly into merchants’ bank accounts daily. As these services are based on Bitcoin, they can be offered for much lower fees than with PayPal or credit card networks.
- Fewer risks for merchants – Bitcoin Mobile transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent charge-backs, and there is no need for PCI compliance. Merchants can easily expand to new markets where either credit cards are not available or fraud rates are unacceptably high. The net results are lower fees, larger markets, and fewer administrative costs.
- Security and control – Bitcoin users are in full control of their transactions; it is impossible for merchants to force unwanted or unnoticed charges as can happen with other payment methods. Bitcoin payments can be made without personal information tied to the transaction. This offers strong protection against identity theft. Bitcoin users can also protect their money with backup and encryption.
- Transparent and neutral – All information concerning the Bitcoin money supply itself is readily available on the block chain for anybody to verify and use in real-time. No individual or organization can control or manipulate the Bitcoin Mobile protocol because it is cryptographically secure.
What are the disadvantages of Bitcoin Mobile?
- Degree of acceptance – Many people are still unaware of Bitcoin (BTC). Every day, more businesses accept bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.
- Volatility – The total value of bitcoins in circulation and the number of businesses using Bitcoin are still very small compared to what they could be. Therefore, relatively small events, trades, or business activities can significantly affect the price. In theory, this volatility will decrease as Bitcoin markets and the technology matures. Never before has the world seen a start-up currency, so it is truly difficult (and exciting) to imagine how it will play out.
- Ongoing development – Bitcoin Mobile software is still in beta with incomplete features and ongoing active development. New tools, features, and services are being developed to make Bitcoin Mobile more secure and accessible to the masses.