Lockcoin: YACC, Yet Another Cryptographic Currency
lockcoin.org
ABSTRACT
A new breed of digital cash which is based on a breakthrough cryptographic technology that enables super fast, globally scalable, and highly secure payment systems that support fraud protections, anonymous transactions, and proof of payments. Instead of Blockchains, the new cryptocurrency system utilizes digitally locked coins that can be owned and transferred without the need of a brokerage or exchange account. Coin owners can execute peer-to-peer coin transfers directly just like paper money, without brokers and currency exchanges like Binance. The new technology is superior to Blockchain in terms of speed, scalability, security, privacy, and other key metrics.
BACKGROUND
Most of today cryptocurrencies are based on the Blockchain technology which is pioneered by Bitcoin. Blockchain allows payment transactions to be conducted anonymously without the need of a centralized financial institution. However, Bitcoin and other Blockchain cryptocurrencies in general have many severe limitations that prevent them from becoming a practical digital currency for common daily uses.
TEN PROBLEMS OF BITCOIN (AND THE LIKE)
Bitcoin is not scalable. Bitcoin block is 1 megabyte and can hold about 4000 transactions, and it takes 10 minutes, by design, to add a new block to Bitcoin’s block chain. This limits Bitcoin throughput to a maximum of 10 million transactions per month. In comparison, Visa processed nearly 14 billion credit card transactions per month in 2021.
Bitcoin is not energy efficient. Bitcoin system consumes more than 200 TWh of electricity per year as of 2022, comparable to the entire country of Thailand.
Bitcoin is not sustainable. A single Bitcoin transaction creates a Carbon footprint of more than 1000 kg of carbon dioxide.
Bitcoin transactions are slow. It takes 10 minutes or longer to confirm a transaction. Credit card transactions, on the other hand, can take just a few seconds to complete.
Bitcoin does not offer strong privacy. The only privacy protection is the anonym of the accounts. There are many techniques to trace and deanonymize Bitcoin accounts. Since Bitcoin transactions are stored in a public ledger, if an account is deanonymized, all its transaction history will be exposed to the public.
Bitcoin does not offer strong security. The only protection of a Bitcoin account is its secret key. Bitcoin system has no extra layer of protection such as dual-factor authentication, stop payment, or notifications of suspicious activities. As a result, Bitcoin thefts are rampand, and loss are impossible to recover.
Bitcoin cannot be regulated by legal jurisdictions. Unlike normal banking systems, Bitcoin system operates without any regulatory oversights. This lack of oversights makes Bitcoin a safe haven for criminal activities while offering little benefits for legal transactions.
Bitcoin is not truly decentralized finance in practice. Most users use a centralized exchange such as Binance or Coinbase rather than executing peer-to-peer Bitcoin transactions directly, thus defeating the original purpose of Bitcoin as a “purely peer-to-peer version of electronic cash”.
Bitcoin transactions are not reversible. In credit card processing, fraudulent or mistaken transactions can be voided, and funds are returned to rightful owners. Such feature is not possible in Bitcoin system.
Bitcoin transactions are not provable. In banking transactions, a cashed check can be used as a proof of payment. On the other hand, Bitcoin transactions are anonymous and thus cannot provide proof of payment. Bitcoin cannot be used as a legal tender in a financial transaction unless it is conducted via a third party such as cryptocurrency exchange.
Many new cryptocurrencies are recently introduced to address some of the above limitations of Bitcoin. For example, the new Ethereal Beacon chain will use proof-of-stake instead of proof-of-work validation to reduce wasteful energy consumption. However, most new cryptocurrencies are based on the same block chain technology as Bitcoin and thus inherently share most of the above limitations.
Lockcoin is a new cryptocurrency based on innovative, US patent pending, and game changing technology that will provide solutions to all the above problems plus more advantages. The new cryptographic system can be used for numerous applications, from fractional investments to digital payments to central bank digital currency.
Stay tuned for more info to come.