Introduction of Bytom Foundation

Bytom Foundation was registered in Singapore, approved by The Accounting and Corporate Regulatory Authority (ACRA), and registered as a non-profit foundation under the category of Public company limited by guarantee. As the main governance body of Bytom, Bytom Foundation regulates and manages Bytom's technology development and application development.

History

1. 2021.3.18 Bytom 2.0 WhitePaper released
2. 2019.9.19 MOV (Layer 2 value exchange protocol) whitepaper released
3. 2019.5.15 Bytom BaaS platform: Bystack WhitePaper released
4. 2018.4.24 Mainnet released
5. 2018.4.15 Tensority consensus algorithm paper released
6. 2017.6.12 WhitePaper released
7. 2017.1 Project started and the team was established

What is Bytom 2.0

While the decentralization of PoW creates huge value, it also brings extremely high costs. The solution of Bytom 1.0 is that the main chain adopts PoW, which is responsible for asset issuance, and the side chain adopts PoS, which is responsible for transaction efficiency. However, node operation costs were paid for two chains. Each year, 80 million BTM is paid to the main chain miner and 10 million BTM to the side chain nodes, bringing a heavy economic burden.

The economic security and economic efficiency of the PoS architecture also bring great convenience to the development of upper-level ecology such as DeFi, and it is more conducive to MOV to explore its most potential. The integration of technical architecture will inevitably bring great flexibility to the introduction of a more versatile smart contract system and developer ecology, which is the only way to shape an open ecology.

So we propose the architecture concept of Bytom 2.0, merge the architecture of MainChain & SideChain architecture into a unified platform, and integrate the multi-asset DeFi protocol on the unified platform, optimize the efficiency of asset flow, connecting the bit world and the atomic world, better serving the vision of putting assets on blockchain.

Initial supply

As Bytom blockchain upgraded Bytom 1.0's PoW consensus to Bytom 2.0's PoS consensus, there will be no more 80 million BTM mined every year, and the total supply of BTM will be reduced from 2.1 billion to about 1.566 billion BTM.

Cirucation supply

As Bytom 2.0 adopts PoS Consensus, it is necessary for verification group to carry a large number of BTM to participate in the long-term staking at a high staking rate to ensure the system security. Therefore, a large part of the total amount of 1566 million token will not be circulated, half of which are expected to be locked.

Annual additional issuance scale

In order to maintain the continuous operation of POS, the verification group still needs a fixed amount of additional BTM issuance as a reward, which is currently set to 30 million. The scale of additional issuance will be adjusted according to the actual situation to achieve the balance of security and economy.

The unit of BTM

The minimum unit of BTM is 0.00000001, which is called "Neu"

How to obtain BTM token

1. Obtain BTM at the exchange
2. CrossChain assets to MOV in exchange for BTM
3. Get BTM rewards through POS

How to use BTM token

1. Voting governance: BTM holders can use BTM to vote and participate in the governance of important issues at the Bytom 2.0 public chain layer.
2. Purchase basic services: When external projects request the use of basic services such as oracles on Bytom, they need to use BTM for payment. Service-related services such as oracle nodes need to collateral a certain amount of BTM to prevent doing evil.
3. Consensus node election: Users who hold a certain amount of BTM can participate in the consensus node election, and all BTM holders can vote on candidate nodes.
4. Participate in the mining of other public chains: In cooperation with other projects, BTM participates in the mining of other public chain projects such as Ethereum through cross-chain
5. Staking mining: When issuing new coins in Bytom ecology, distributing some new coins to users participating in BTM staking is considered
6. Trading fee discount: According to the amount of BTM held by the user in Bycoin and Byone, offer discounts on trading fees of different levels of various products in MOV
7. Collateral and lending: BTM can be used as collateral assets for MOV stablecoins and lending products, and borrowing stablecoins or other assets.

Increase Finality of Consensus

Bytom 2.0 consensus mechanism transfers Bytom 1.0's PoW to PoS, Bytom 2.0 will have a better finality. The applications running on Bytom 2.0 don't need to consider too much about the problem of "Will this transaction be confirmed", and its operation risk is much lower. Meanwhile, Bytom 2.0 Block time is adjusted to 6 seconds, which is 25 times more efficient than Bytom 1.0.

The first blockchain implements World State on UTXO mode

The UTXO model is typically used by BTC, because the output is mainly presented in the form of a locked script code and lacks data recording, the programmability is slightly insufficient.

In the underlying model of Bytom blockchain, we extended Bitcoin's UTXO and enabled it to conclude the status of UTXO. This innovation can bring strong programmability to the UTXO model. This will provide the expanded UTXO with stronger programmability, so It is possible to record the changes of UTXO status before and after the transaction without going through a third party and make parallel multi-asset swaps.

The Innovative and scalable Contract system

Bytom contract system has its own language and grammar, supports various operators and has a Turing-complete contract language.

But at the same time, it can be compatible with external contract languages and the Ethereum contract system. On the basis of the UTXO account model, mainstream virtual machine architectures such as EVM/eWASM can be implemented to enable DeFi applications, ecosystem components and tools in external ecosystems (such as Ethereum) Compatible with Bytom 2.0, no modification or only minor changes are required, which reduces the learning cost and migration difficulty for developers.

What is DeFi

DeFi (Decentralized Finance) enables users to use financial services like lending and trading without relying on centralized entities. DeFi is not a single product or company, alternatives to products or services including banks, insurance, bonds, and currency markets.

DeFi aims to promote borderless, censorship-free and barrier-free financial products. DeFi protocol doesn't discriminate against anyone, and creates a fair environment for everyone. DeFi is built on a public blockchain (such as Ethereum), and most of them are open source, which is convenient for audit and transparent. There are decentralized governance organizations to ensure that everyone knows what happened, and ensure that no malicious actor can make malicious decisions alone. Since the code will be open source for public review, any vulnerabilities will quickly emerge. The biggest advantage of DeFi is that it can eliminate intermediaries and operate in a zero review environment.

• DeFi mainly covers the following five categories:
• Stablecoin
• Lending
• DEX
• Derivatives
• Fund management

DeFi on Bytom

As a typical DeFi application protocol on Bytom, MOV includes a series of products such as SuperTx, Magnex, Flashswap and JieDai. Compared with DeFi on Ethereum or other ecology, the DeFi on Bytom has the following characteristics:

1. High throughput, low delay and low trading fee. It further reduces the threshold for users to use DeFi and improves the user experience.

2. Focus on multi ecological asset integration and introduce external assets into Bytom through cross-chain, which greatly enriches the scenarios of DeFi and better meets the financial needs of users.

Products of MOV

1. SuperTx

MOV SuperTx is a new automated market maker, it has a very strong market maker mechanism and liquidity. SuperTx can provide Customized market making schemes for different trading pairs.

2. MagnEx

MagnEx, on-chain orderbook trading protocol

3. Flashswap

Flashswap is a decentralized coin-coin exchange system.
Flashswap is like a 24-hour unattended ATM, users can exchange coins with one click.

4. JieDai

MOV JieDai is a digital asset rate protocol based on Bytom. The protocol provides an asset pool that calculates interest rates based on changes in the supply and demand of digital assets using smart contract algorithm models, as well as a 24-hour exchange rate monitoring and risk management system. The protocol allows the supplier (lender) and borrower of the asset to directly interact with the protocol contract, thereby gaining income or paying floating interest rates. At the same time, there will also be a user group that participates in risk clearing auctions for arbitrage to help the protocol maintain system security and the balance of the assets liability table.

What is cross-chain

MOV cross-chain system is a permission-less Byzantine fault-tolerant distributed network system based on the OFMF framework, a general protocol layer service built on a variety of public chain systems and is not exclusive to the MOV system. Its core function is upgraded to coordinate all Fednodes for the decentralized safe custody and transfer of cross-chain assets, as well as the analysis and execution of cross-chain transactions through secure multi-party computing (sMPC) and consensus algorithms. Fednodes is a more open federated node. It is the core role of the cross-chain system. It contributes CPU and storage to the distributed gateway network, and accurately executes secure multi-party computing programs. Any role in any ecosystem can become Fednodes through collateral.

The most noticeable innovation of the cross-chain system is to change the single asset flow direction of the previous cross-chain system and upgrade to active full-link access to the network. Assume that the bottom layer of the MOV cross-chain system is adapted to the four public chain systems of ETH, BTC, BTM, and Polkadot. At present, assets on the other three public chains are passively migrating to BTM ecosystem and looking for application scenarios in BTM ecosystem. The final life cycle will end in BTM ecosystem and be extracted back to the original public chain. With the support of the cross-chain system, the assets on BTM, whether it is BTM native ecological assets or the incarnation assets that have crossed from other public chains, can actively enter any of the other three public chain systems to broaden their own application scenarios.

OFMF framework implements a "multi-signature + threshold" custody scheme, and cross-chain system will more widely implement a threshold signature custody scheme based on secure multi-party computing. All nodes that become Fednodes together form a distributed multi-party computing network. The liveness and safety of the system are controlled by the Byzantine fault-tolerant consensus algorithm to ensure that the multi-party computing program can continue to run. Fednodes nodes are elected on a regular basis, and the power is changed every term. Thanks to the introduction of the staking consensus system, the rapid change of Fednodes can become a reality in the cross-chain system, and truly move towards a fully open federal gateway network. This also greatly improves the system efficiency and flexibility of the federated witness to make cross-chain faster and safer. The collateralized assets of Fednodes bring a more reliable safety margin to the cross-chain system.

The mechanism by which information outside the blockchain is written into the blockchain is generally called an oracle mechanism.The function of the oracle is to write external information into the blockchain to complete the data exchange between the blockchain and the real world. It allows a definite smart contract to react to the uncertain external world. It is the only way for a smart contract to interact with the outside world, and it is also an interface for data interaction between the blockchain and the real world.

The value of oracle

1. The blockchain is a deterministic and closed system environment. At present, the blockchain can only obtain the on-chain data, but not the real world off-chain data. When the trigger condition of the smart contract is external information (off-chain), an oracle is required to provide data services, and real-world data is input to the blockchain through the oracle.

2. Blockchain is a deterministic environment, and it does not allow uncertain things or factors. That is to say, the smart contract cannot perform I/O (Input/Output), so it cannot actively obtain external data, and can only give data to the smart contract through the oracle.

Bytom's research direction in oracle

In order to enable the oracle to better release the potential of smart contracts, Bytom has proposed an off-chain data aggregation scheme based on VRF and BBFT.

The oracle network is composed of 42 nodes in the initial stage of startup, 10 of which form a consensus committee, and they take turns leading the data consensus; the other 32 are ordinary oracle nodes. The ordinary nodes and consensus committee nodes in the oracle network are generated in a decentralized manner.

The Leader Node in the consensus committee will randomly select a certain number of oracle nodes based on user requests (compared to the number required by users, 1.2 times the redundancy is considered), and distribute data requests to them. In this process, other members of the consensus committee are responsible for verifying the randomness of node selection and the content broadcast by the leader, and express their opinions in the subsequent consensus process.

After receiving the data request, the oracle node queries the data source for data. The oracle node is suggested to maintain different data sources for the same data and provides relevant proofs, which will improve its own competitiveness.

The Leader node will aggregate the collected responses according to the aggregation scheme required by the user, and lead the consensus committee to reach a consensus on the aggregation results.

What is NFT

NFT (Non-Fungible-Token), which corresponds to FT (Fungible Token). Non-Fungible-Token refers to a uniquely identified, non-interchangeable Token, and it cannot be split. NFT is generally used to mark the ownership of digital assets.

NFT applications are found in games, artworks, domain names, collections, virtual assets, real assets, and identities. Among them, games, artworks, and domain names are developing most rapidly.

What is Metaverse

The concept of Metaverse is in a very early stage, and there is no precise and unified definition. This concept originated from the sci-fi novel--Snow Crash published by Neil Stephenson in 1992. It means people can live freely as avatars in the online parallel digital world.

Metaverse attempts to use technology to project various contents of the real world into the parallel universe, immersing users in a series of virtual activities such as social activities, games, and creation. Users must adopt blockchain technology and NFT if they want to conduct economic activities in the Metaverse. On the other hand, Metaverse has also become a carrier of NFT.

On Bytom blockchain, all NFTs and various economic behaviors (minting, trading, auctions, etc.) generated by NFTs constitute a narrow concept of Metaverse.

How to create NFT on Bytom

Based on the superiority of Bytom's UTXO model, users can easily issue NFT assets on Bytom.

Adopting the unique Issue method of Bytom's contract template, you can create NFT assets on the wallet without learning the contract or using the contract language, dramatically lowers the barrier to entry for NFT, and a user-friendly platform for artists.

Based on the strong scalability of Bytom contract template, it provides more business models for upper-level applications, which can support ordinary auctions, Dutch auctions, radical market auctions and other methods.

Main features

1. UTXO mode that compatible with Bitcoin

Bytom Blockchain consists of three layers: a data transaction and transmission layer, a smart contract layer, and an asset interaction layer. Asset interaction layer can call the Smart Contract layer to operate the assets. Because Data transaction and Transmission layer

2. Universal address format

BIP32, BIP43 and BIP44 concepts will be introduced into the design of Bytom wallet to provide support for multi-coin, multi-account, multi-address, and multi-key.

3. Supports Chinese cryptographic standard

The private key, public key and address system are involved in the asset control and operation of Bytom. The traditional bitcoin code is based on encrypted elliptic curve function ECDSA and sha256 hash. Bytom suppots Chinese cryptographic standard SM2 elliptic curve public key cryptography algorithm 2 and SM3 algorithm.

4. The asset naming adopts ODIN identification

The naming of on-chain assets adopts the ODIN open data index naming standard, and takes advantage of the transparency, trustfulness and non-tamperability of blockchain to ensure the uniqueness of assets in the whole network and the whole chain. Different from other blockchain-based identification solutions, ODIN is based on bitcoin blockchain and supports the extension of multi-level identification to introduce other blockchains (public chain, consortium blockchain and private chain) instead of the way of preemptive string, but uses the block record location as the identification name.

5. AI ASIC-chip-friendly POW algorithm

The adoption of the POW algorithm which is friendly to AI ASIC chips enables the mining machine to be used for AI acceleration services after being idle or eliminated. If we introduce matrix operations and convolution operations in the hashing process of mining to make mining machines more friendly to AI ASIC than GPU and CPU, then the amount of calculation required for blockchain consensus can also be applied to AI hardware acceleration services, thereby generating greater social benefits: On the one hand, the mining machine market will stimulate AI market and expand the demand for deep learning ASIC chips, just like the current graphics card-friendly PoW blockchain promoting the graphics card market; On the other hand, miners that are eliminated or idle can be used in AI hardware acceleration services to save mining costs and form a win-win situation.

Economic model of Bytom 1.0

Bytom adopts POW mechanism, in which the mining output is halved every four years until no new block reward is generated. The first year to the fourth year of Bytom, the annual mining production is 86.625 million BTM , and 43.3125 million BTM from the fifth year to the eighth year, and the like. 1 ‰ the mining income of Bytom miners will be donated to foundations and other public welfare organizations engaged in AI ethics research.

Introduction of Tensority

In order to make the Bytom consensus algorithm friendly to AI and compatible with all mainstream AI acceleration equipment, Bytom adopts matrix multiplication in algorithm selection. The specific process is as follows:

In order to encourage users to participate in the PoW consensus process of Bytom, users who produce blocks will be rewarded. The distribution will be halved every four years until no new block reward is generated. 86.625 million BTM will be produced every year from the first to the fourth year, and 43.3125 million BTM will be produced every year from the fifth to the eighth year, and the like.

What's the relationship between Bytom 1.0 and Bytom 2.0

Bytom1.0 and Bytom 2.0 are two chains that operate independently, similar to the relationship between ETH and ETC. However, Bytom 2.0 is not the fork of Bytom 1.0 and does not include block data of Bytom 1.0. The block production of Bytom 2.0 also starts from zero. Bytom Official will focus more on Bytom 2.0.

Assets migration

In order to seamlessly migrate Bytom 1.0 users to Bytom 2.0, Bytom Foundation will migrate assets after Bytom 2.0 is launched. Users can obtain bytom2.0 assets after updating their wallets, with a migration ratio of 1:1.