Bitcoin Black aims to be better than it's predecessor Bitcoin as well as other alt-coins by becoming "fairly distributed", energy effiecient, feeless, and hopes to feature instant transfers. The coin will be distributed to 1,000,000 wallets prior to the IEO, which all funds will go to community groups voted by the communitity in order to move the project forward. This is to highlight and hopefully facilitate: fair distribution, utility, education, ease of access, simplicity, and community.
The previous main issue with Fiat Currencies has become even more abundant in Bitcoin and traditional Alt-coins, where the elite own and control 90+% of the market equity. Simply put, this distribution model can be very problematic.
Unsurprisingly, Bitcoin's metrics boasts the most millionaires. But contrary to what most would likely be inclined to believe, Bitcoin appears to be the most distributed network, with top alt-coins by market capitalization posting the largest increase in concentration in 2019. Using these metrics, Ethereum is the most fairly distributed network for any alt-coin while XRP seems to be the most concentrated, posing a threat for stake holders.
However, there may be outlying factors at play that can influence these metrics. Not only does Ethereum have a larger number of wallets with meaningful balance, it posts a low mean address balance. But because of these potential outlying factors, comparing across networks isn't as straight forward as it may seem. Ethereum's gas fee mechanics tends to leave more dust behind after transactions. This could result in the appearance that ETH is more distributed by lowering mean account balances. On the other hand, ETH is an account-based protocol as well. Compared to other UTXO-based protocols, users often re-use addresses which can make them appear to be less distributed when using address-based metrics.
In the case of XRP, Ripple's famed escrow wallet as well as the allocation of XRP tokens to "partners", can and likely have a significant impact on the network's distribution metrics. Although I've touched on this topic and expressed my opinion that this likely reveals underlying malicious intent by Ripple, the data can be influenced by this making it seem more concentrated than it is. However, with most XRP wallets you are required to deposit and store at least 10 XRP tokens in order to register a wallet on the network, leading to manipulation of the mean account balance. But Ripple's requirement for companies that "partner" (even though Ripple compensates each company to claim partnership) to freeze their funds for a period of time until they can be released and sold, in tandum with Ripple's escrow wallet intended to create the illision of fake "liquidity", certaintly have a signifcant impact on the appearence of high concentration of the network.
Although when adjusted with the data that's been released thus far in 2020 suggests that Cryptocurrencies are becoming more distributed, concentration is undeniably a strong influence on the markets and innevitably results in centralization, seen or unseen. But an important consideration in the distribution of a network is time. As illustrated with Bitcoin, as the network ages it becomes more distributed. Most of the networks in this space are still relatively young. Therefore when given an appropriate amount of time these metrics will likely adjust to much healthier levels.
Bitcoin Black attempts to address this problem by distributing an equal amount of coins among every participating node in the intial coin offering.
Proof of work consensus algorithms consume a significant amount of energy. In fact, maintaining Bitcoin's network currently consumes more energy of the entire nation of Switzerland. As alternative consensus algorithms are being discovered, we are learning that the signficant amount of effort put in to secure and conserve this network could innevitably be pointless. As of now POW networks are by far the most secure, but algorithms like POS(Proof of Stake) and DAGs (Directed Acyclic Graphs - my favorite) show vast potential for being the best and most effiecient distribution algorithms.
While I do think that mining or distribution consensus algorithms are by far the most effective way of running/distibuting a network, Bitcoin Black may provide a decent alternative in the mean time as networks develop. Bitcoin Black aims to shed consensus algorithms in general and all distribution will take place over the counter/P2P. While this could innevitably result in deeper centralization, it's a relatively unexplored facet in the Cryptocurrency space.
Bitcoin Black Distribution
Initial Foundation (2.5%): 900 Million (To be depleted to 0)
Development fund (2.5%): 900 Million (To be depleted to 0)
Pre-sale (2.5%): 900 Million coins (100+ investing members who will be an addition to the founding team helping to move the project forward. Collaborating though slack)
Bounties (2.5%): 900 million coins for bounties decided by pre-sale members and the Bitcoin Black community. Such as: translations of website, whitepaper, rewards dashboard and APPS.
Airdrop (10%): 3.6 Billion coins to be airdropped (1 million accounts 3600 coins per account)
Rewards bounty (20%): 7.2 Billion coins divided between Airdrop rewards (110 members). IEO rewards (110 members).
IEO (20%): 7.2 Billion coins Funds from IEO to be allocated to multiple community foundations who will help the community move the project further into the future. Allocated to specialist departments.
Manipulation counteraction fund (5%): Part used for stability control fund to remove the possibility of early low volume manipulation, and maintain stability in the currency.
App introduction rewards (40%): 14.4 Billion. Introduction of 30 million members with the rate of new users growing compounded. A method to get Bitcoin Black to every school yard/ university/ workplace and community.
The coin is being pre-sold in 5 stages:
Stage 1: $0.00005/coin 180x cheaper than the IEO price of $0.01
Stage 2: $0.0001/coin 90x cheaper than the IEO price of $0.01
Stage 3: $0.0002/coin 45x cheaper than the IEO price of $0.01
Stage 4: $0.0005/coin 18x cheaper than the IEO price of $0.01
Stage 5: $0.0009/coin 12x cheaper than the IEO price of $0.01
The intended goal behind the presale is to bring talent to the network, with the first 200 participants acting as founders of the network.
Coins will be sold in packets of 100,000 coins with the maximum number of packets is limited to 30 per customer.
The maximum amount that can be purchased after the IEO will be limited to $5,000 per customer to try and prevent centralization.
Ideally the funds will be used on the following (if not sold):
- Security of the blockchain
- Server costs/Hosting costs/Scaling to mass usage costs
- Call in development costs
- Multilingual expansion and management
- Rewards program improvment
- Setting up community and support branches
- Further security testing
- Strengthening IEO proposal
- IEO listing fee
- Attempts to develop quantum resistance
- Technology design enhancements
- Experimental enhancements
Once the network reaches 1,000,000 users the IEO will be launched
Current total: 100,000 users
This network truly is a community effort being built from the ground up by the users. It's intentions are to educate and this is simply the reward for early partcipation inside that community. The network is currently looking for with any experience/interest in:
- Video script writing
- Video producer
- Regional community managers
- Exchange listings (What I'm currently apart of)- Sign this petition here: https://www.change.org/p/binance-bitcoin-black-bcb-on-binance
- Event partcipation
- Organizing social functions
- Educational Seminars
- IEO submissions
If you are looking to dump for quick profit, your participation is not advised. But if you are interested in growing this community, I'd appreciate if you use my affiliate link here: