BEYOND BITCOIN. The Future of Digital Currency. Part V The World’s First Cloud Currency - The CloudCoin™ Structure

By CloudCoin | CloudCoin | 17 Aug 2019

The CloudCoin™ structure


A RAIDA network is composed of 25 RAIDA clouds.

A single RAIDA cloud can have up to 32 administrators and one sentinel. The sentinel is responsible for making sure data stays true and available.

Each cloud is a cluster - a group of separate but connected or virtually connected data storage units.

A node is a single machine or group of machines in a cluster.


Each cluster has at least one sentinel, and not more than thirty-two admins. In each cluster, the sentinel is responsible for insuring data integrity.

The administrators need to be able to fund their operations. But, unlike Bitcoin, which requires rooms full of servers, the needs of RAIDA are minimal.

In the full 800-node configuration (up to thirty-two admins for each of the twenty-five clusters), each node (single admin) is in charge of only 21,000 CloudCoin notes. This means that the admin only needs 25MB of database storage, a minimal processor, and very little network bandwidth. (Compare this memory usage to the size of the Bitcoin ledger in the previous chapter.)

The system requirements to support RAIDA are so minimal, in fact, that RAIDA can literally run on a Raspberry Pi (A Rasberry Pi is a small, inexpensive computer developed for teaching computer science in schools, and for use in developing countries).


RAIDA node on a Raspberry Pi device on the left. Compare to a blockchain node on the right.

We have one RAIDA that has been running on a Raspberry Pi for months. These little servers are well under $100 each, and you can literally fit one in your pocket!

Unlike the Bitcoin network, it is entirely within the realm of possibility that the RAIDA could be run by volunteers. However, to ensure that there is money to pay the RAIDA admins, these admins are allowed to receive coins for discovering coins that have been otherwise permanently lost—one CloudCoin for every 25 found.

RAIDA clouds


Each RAIDA network is composed of many redundant servers, networks and databases that are interconnected via the Internet. Such arrangements of hardware are often referred to as clouds.

The databases are mirrored in multiple physical locations, with multiple servers to keep the cloud readily available.

Multiple locations also allow for such catastrophic failures as a meteor strike by keeping the system operational, no matter what.

Governments may try to suppress RAIDA servers some day.

It is likely that in time RAIDA clouds would become a target for thousands of highly trained hackers from around the world.

It is also likely that RAIDA would be targeted for Denial-of-Service (DoS) attacks (A (DoS) attack is when hackers attempt to block legitimate users from accessing a service, usually by overloading the network or server with invalid communications.) by the worst attackers imaginable.

But with this structure, if some of the components fail or are attacked, the RAIDA system keeps going.

A self-healing system.

A fractured CloudCoin is a CloudCoin that failed authenticity on one or more RAIDA nodes. These nodes can “compare notes,” and in doing so, repair the fractured coin. This process is invisible to the coin owner.

Expanding CloudCoin

When the value of CloudCoin goes up, the entire RAIDA can be cloned multiple times. Each time this happens, the whole system becomes even more fault tolerant than before. If the value were to go up the way Bitcoin has, I can imagine the system growing to 60,000 micro servers—and still remain completely free to use.

What this all means....

RAIDA does everything that a blockchain does, only much faster, more reliably and far more efficiently.

The only thing RAIDA does not do that Bitcoin does is to track your transactions.

RAIDA is scalable. More nodes and networks can be brought on as needed to perform transactions within milliseconds. The work is distributed among more nodes rather than requiring each node to do more work (like blockchain).

Costs are paid through recovery of lost coins, so there are no transaction costs for the user. Every CloudCoin is owned by someone who knows its authenticity numbers (passwords).

However, if no one knows a CloudCoin’s password, it is considered lost. We can identify these lost coins because they have not been re-authenticated in two years.

However, RAIDA itself is only a counterfeit detection system. The data for the money is stored within the CloudCoins themselves.

The World’s first Cloud Currency


CloudCoin is designed to be the first perfect money. CloudCoin data is not stored on the network, only authenticated. The Cloudcoin owner stores the data, which means it has no central administration.

A RAIDA network is made up of 25 RAIDA clouds. A RAIDA cloud is a virtual network of up to thirty-two administrators and one sentinel. Each administrator has his or her own computer, or server, that does not share data with any of the other servers. A single server requires only 25 MB of storage space, which is very minimal.

The number of CloudCoins available in a network is fixed at 1,428,160,512 coins spread across 16,777,216 notes of varying denominations.


A CloudCoin sentinel verifies the authenticity of only a single stripe or shard in a coin. The other twenty-five stripes are verified by other sentinels.

Each CloudCoin has 400 bytes (a byte is a unit of information on a computer made up of eight bits. A bit is usually a 0 or a 1. A byte most often represents a number) of random numbers embedded in it. These 400 bytes are divided into 25 stripes and 25 shards.

Each stripe is called an AN (authenticity number). Each shard represents the coin’s serial number.

You can think of it as a table of information. The stripes represent columns of numbers, while the shards represent rows. The contents of these tables are spread across the RAIDA network. None of the information is centralized.

There are 1,428,160,512 coins total per network. This number was chosen to keep the value of CloudCoins low enough to make hacking unattractive.

The total number of CloudCoins in a single RAIDA network will never increase or decrease. However, if the value becomes too high, (more than the equivalent of $2.00 USD), CloudCoins can be split so that every coin then becomes more coins.

CloudCoins are designed so that splitting, doubling, or in any way multiplying CloudCoins also multiplies the networks, infrastructure and the fault tolerance of the coins.

Because every CloudCoin is split at the same time for the same amount, this monetary inflation is proportional, and the monetary system will not provide inaccurate information to its users. Instead, the split provides benefits for the users by keeping the unit of accounting at a usable value.

Bitcoins, on the other hand, require insane fractions of a coin to be spent. A loaf of bread at your local supermarket might cost 0.00068157342 BTC. Very few retailers have the equipment to process such small figures - let alone make change!

Bitcoins and CloudCoins


Now let's compare the physical integrity of Bitcoin and CloudCoins.

CloudCoins do not depend on encryption. Instead, the data is divided or shredded into data clouds all over the world that are managed by completely independent operators.

But what if one of these operators decided to give himself some CloudCoins by altering the records? Because the data is spread over 25 different data clouds, a RAIDA administrator could only take control of 1/25 of a CloudCoin. This would be instantly detectable and would cause the coins to be replaced immediately.

RAIDA administrators make their money by recovering lost coins, so anything that they could do to cause the value of CloudCoins to decrease would be self-defeating.

RAIDA operators are highly incentivized to keep the value of CloudCoins up, and that means keeping the money true.

What if a government or hackers were able to obtain the data from their RAIDA servers by force? The problem for the hacker is that once hackers are detected, the RAIDA clouds are replaced, and the RAIDA is designed so that all of the information about a CloudCoin is stored in the coin itself, not in the RAIDA network.

The CloudCoin notes

CloudCoin notes come in denominations ranging from 1 to 250.



There are actually two images used for the One CC note. The first is of Stefan Molyneux. Molyneux is the founder of the YouTube channel Freedomain Radio. As of April 2018, he had over 768 thousand subscribers. The second is Tank Man (also called the Unknown Protester or Unknown Rebel). On June 5, 1989, he bravely blocked the passage of tanks in Tienanmen Square. This incident was filmed and seen around the world.



Adam Smith (1723–1790) was a Scottish economist and philosopher best known for his work, The Wealth of Nations, published in 1776. His demeanour graces a 5 CC note.



One of the Founding Fathers and principal author of the Declaration of Independence, Thomas Jefferson (17431826) is found on the 25 CC note.



Like the One CC note, the 100 CC note has two alternating images. The first is author Ayn Rand (1905–1982). Her novels dramatized the philosophy she developed known as Objectivism. The second 100 CC note shows Alexander Nevsky (1220–1263). Nevsky, who lived in Russia in the 13th Century, was legendary for his victories over invaders, and was later canonized as a saint of the Russian Orthodox Church.



The largest CC note, for 250 CC, has the image of John Locke (1632–1704), commonly known as the Father of Liberalism.

The CloudCoin experiment

With the success of Bitcoin and other cryptocurrencies, two central questions have driven the research for what has evolved into CloudCoin:

• What is the essence of money?

• What would be a perfect electronic currency?

Sean H. Worthington employed an information-systems approach toward a monetary system based on the two key points of trust and integrity. From this, he implemented a group of cloud networks. The resultant system performs better than Bitcoin. Anyone can easily manage CloudCoins. You don’t need an account with an exchange, and you don’t need to download a huge 100 GB blockchain.

CloudCoins are faster to transact. While Bitcoin transactions must synchronize over thousands of public ledgers, requiring 40 minutes on average, CloudCoin only needs to be checked for counterfeit, and this process takes milliseconds. Real-world tests have authenticated 50,000 CloudCoins in just 3.5 seconds.


CloudCoins are 100% anonymous, while Bitcoins are pseudo anonymous, meaning that if people figure out your account number on the public ledger, they can track anything you have bought or sold.

Bitcoin administration (mining) is consolidating. while CloudCoin admin should disperse.

Bitcoin have a scaling problem!
It has been unresolved for a while and is getting worse with time.

Bitcoin runs on the software created by a programmer or a group of programmers known as Satoshi Nakamoto back in 2007-09. Despite the many improvements, which have been made by contributing developers over the course of Bitcoin’s existence, the code base is still pretty similar to what it was eight years ago and some of the limitations are still there.

The problem is, the current landscape of the Bitcoin ecosystem is very different from what it used to be back at the inception of the cryptocurrency. The number of people involved has grown from a few dozens of passionate enthusiasts to over 10 mln of everyday users.

The growing user base is naturally accompanied by a constantly increasing number of daily transactions, which are now counted by the hundreds of thousands. The unfortunate reality is that the Bitcoin network, in its current state, is unable to process all those transactions fast enough.



Bitcoin is not quantum-safe and can be hacked with government quantum computers. CloudCoin does not rely on encryption to keep it 100% quantum-safe.

CloudCoin requires servers the size of a deck of cards while Blockchain requires rooms full of servers that consume huge amounts of electricity for performing encryption.

Money is data

The first hypothesis is that money—the tokens we hold, the coins, bills and numbers in our bank accounts—are actually part of a bigger system, an information system.

Specifically: Money is a distributed database that is physically implemented among people.

Each one of us is in charge of holding a small part of the data.

Each of us use our minds to process the information provided by our own money in order to economize.

We communicate key information to each other via prices. The interaction between the money and our behavior allows us to spontaneously organize our behavior to create an efficient economy.

No counterfeits - an essential characteristic

The second hypothesis is that the value of money does not come from the substance it is made of, but from the effort required to counterfeit it, and its integrity as data. Gold coins, paper dollars and electronic Bitcoins are all made of different stuff, and yet they are all used as money - and all of them are valuable.

Monetary systems made of gold, paper money and Bitcoins are very difficult, although not impossible, to counterfeit.

Gold can be mined and minted into duplicate coins. Paper money can be printed by expert counterfeiters and by a treasury itself. Bitcoins can be “mined” by solving puzzles.

Perfect money, however, cannot be counterfeited.

CloudCoins are composed of codes embedded in files, stored on paper or digitally, or remembered in your mind. These codes can only be used once.

When a CloudCoin changes hands, a new set of codes is generated. This makes it impossible to counterfeit, mine, double-spend or destroy a coin.

The total number of CloudCoins never changes—unless CloudCoin becomes too valuable, in which case, it splits, and everyone's CloudCoin doubles.

Unlike Bitcoins that can be mined into existence, CloudCoins were minted, then the mint was destroyed. There are exactly 16,777,216 notes in denominations ranging from 1 to 250. The number of notes cannot be increased or reduced because the number is based on the length of the Serial Number for each note.

Experiment design


Building on the hypothesis that the essential attribute of money is that it can’t be counterfeited, a process was developed and implemented for the detection of counterfeits.

Assuming that the hypothesis “money is data” is true, a monetary system should be designed to give its money integrity in the same way a database would be designed to give its data integrity.

To achieve the general goal of data integrity, a redundant and robust system of clouds, governed by a consortium of independent multinational organizations, was designed. The end result is called RAIDA.

A patent has been filed for a cloud-based authentication system, a CloudCoin Consortium was created, and a digital currency was minted and deployed in a RAIDA.


Sometimes, when you develop a new technology, you have to find new words to describe it.

Powning (pronounced PŌN-ing) is the act of proving ownership. It derives from proof of owning, or password owning.

Information for a single CloudCoin can be contained within a JPEG image. However, for CloudCoin notes worth more than one CloudCoin, the information is contained in a text file called a stack.

With CloudCoin, ownership is proven by who has the password, and this ownership is passed electronically from one person to another. How this transfer occurs is mostly invisible to the CloudCoin user, but the steps below are what occur in the background during a transfer:

• The current owner transfers the CloudCoin as one or more JPEGs or text files (called stacks) to a recipient.

• The recipient opens the CloudCoin file in his CloudCoin software, checks that the denomination on the note matches what it should be. This thwarts any attempts to pass off lower denominations as higher denominations.

• The recipient’s software sends a Counterfeit Detection Request to the twenty-five data-holding RAIDA clouds. Embedded in the request are the denomination, serial number, and corresponding authenticity number for each CloudCoin. The RAIDA clouds determine if the authenticity data received agrees with the denomination and serial number the RAIDA has stored.

• If the numbers match, the response is that the currency is authentic. If they don’t match, then the response is that it is counterfeit.

• Once the currency has been proven as authentic, the recipient can take full ownership. The recipient’s software generates twenty-five random PANs (Proposed Authenticity Numbers) to replace the existing ANs (Authenticity Numbers).

• Now the recipient’s software sends a take-ownership-request to the twenty-five RAIDA clouds. Embedded in each request is

the denomination, serial number, the corresponding AN, and the PAN.

• The detection agents (the clusters of nodes that make up a RAIDA cloud) determine whether the authorization number data matches the denomination and serial number that the note has stored.

• If the numbers match, then the stored authenticity numbers (ANs) will be replaced with proposed (new) authenticity numbers (PANs).

• Now only the new owner (or his software) knows the new numbers, so the recipient becomes the new owner.


The interface for the CloudCoin Wallet software is very easy to use. All of the procedures described above are handled automatically when you add a stack of CloudCoin to your account.

Our goal at the CloudCoin Consortium is to make a digital currency accessible and usable for everyone regardless of experience. We believe that a digital currency should be easy to use by people from every walk of life as well as have the best security and privacy available anywhere.

Can you use some social media such as Facebook? Can you send and receive email on a computer? Can you add attachments and locate a file?

If the answer is Yes, then it sounds like you already have the skills needed to operate the NEW CloudCoin Wallet Software! A basic knowledge of computers is required.

If you have downloaded CloudCoin Wallet, we assume you have already learned a little about CloudCoin.

CloudCoin Wallet - this program will change many things and make CloudCoin much more usable. CloudCoin Wallet can automatically make change and it can send CloudCoins from one person to another with a click of a button. It’s transfer time maybe the fastest of any payment system in the world. We are able to send coins to the change maker, and get them back within four seconds. This means that a user can send the two transactions of sending money, making sure it is authentic, sending change and making sure that is authentic (two transactions) happen in less time than it takes to approve a Visa payment. People get to have their own username. Soon we will have Merchant software that allows anyone to accept CloudCoins as payment. The exchange is well underway. Create a decentralized digital exchange and escrow service so that everyone can buy and sell CloudCoins without crazy exchange accounts.

We will focus all effort on Liquidity and it will be a fast effort.


To be continued..........

Sean H. Worthington PhD ABD for CloudCoin Consortium.

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Our mission is to provide a "perfect" global currency that cannot be counterfeited, double-spent, mined or lost, is 100% private, requires no public ledgers, accounts, or even encryption; a monetary system that is fair.


CloudCoinTM – The world’s first cloud currency! The Perfect Global Currency! CloudCoin is a digital currency. That cannot be counterfeited, controlled, tracked or stolen. CloudCoins cannot be double-spent, mined or lost. It is 100% private and requires no public ledgers, accounts, or encryption. CloudCoin is a completely fair and ethical monetary system.

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