BlackCoin Team Developer Creates True Smart Contracts and a Decentralized Exchange for Bitcoin and BlackCoin
BlackCoin, a top 10 digital currency by market cap that secures its network entirely through proof of stake, announced today that a member of the BlackCoin development team has created a new method for eliminating risk during peer-to-peer transfers.
This revolutionary protocol, called BitHalo for Bitcoin and BlackHalo for BlackCoin, will be not only the world’s first "smart contracts" client, but also make contracts unbreakable.
Unbreakable contracts will protect Bitcoin users from future Mt. Gox-type collapses. They will also provide a number of other benefits in the financial world including eliminating derivative markets volatility, the creation of decentralized exchanges that do not depend on a "middle" coin, unhackable wallets, good faith employment contracts, real world bartering, backing of commodities such as Bitcoin cash, and two party escrow.
BitHalo and BlackHalo will make Bitcoin and BlackCoin the first digital currencies to feature smart contracts. The protocols do not require the use of any central server or host to organize the transactions. The protocol itself takes advantage of BlackCoin’s scripting system, meaning no changes are required to the Bitcoin network for it to run, and that immediate adoption is possible.
The program uses "Double Deposit Escrow," which encourages parties to complete real world deals in good faith by making the reward lower than the value of default. This process allows contract bridges to form, as well as micropayment channels, allowing for potentially unlimited transactions under the same contract. Once the deposits are set up, the actual exchange begins.
BitHalo/BlackHalo developer David Zimbeck said,
“The protocol uses risk, reward and agreement to circumvent malleability, which was ironically once thought to prevent these types of protocols. Almost every sector of the economy that involves third parties runs the risk of loss to the consumer. This protocol now gives individuals full control over who they decide to trust and how they decide to structure that trust.”
Zimbeck continued:
“I chose BlackCoin because of its fast transaction times, a massive advantage when engaged in contracting. Bitcoin transactions can take well over ten minutes for their first confirmation, while BlackCoin normally confirms in well under a minute. Trust and agreement are the basis of society so this technology affects everyone.”
The BitHalo and BlackHalo applications will become the basis for an umbrella app called NightTrader. NightTrader builds on top of BitMessage and allows for decentralized order books, servers and native communication protocols. NightTrader focuses on "agreement" between computers by filtering messages. Peer-to-peer U.S. Dollar and Chinese Yuan exchanges will be an immediate feature in the client.
About BlackCoin
BlackCoin is a transparent and accessible digital currency that operates entirely through proof of stake. Proof of stake offers a number of advantages over proof of work systems including much faster confirmation times, less selling pressure due to its unminable protocol, and independence from expensive and energy-intensive mining. The digital currency is supported by the BlackCoin multipool, which pays out in BlackCoin. The BlackCoin Foundation consists of a worldwide network of brand ambassadors, who lead a vibrant international community of BlackCoin advocates.
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