Stable coins were created to solve the problem of volatility as crypto currency adoption has been bottlenecked around price stability. Stable coins have performed well since joining the crypto currency space but there are still a lot of improvements to be made. Particu larly in the area of crypto collateralized coins. This paper explores the possibility of creating a crypto collateralized stable coin that combines pure crypto exchanges, a solvency system and the Cryptonote protocol. Crypcore is all about creating a crypto asset that enforces a solvency system which eliminates wild price swings, while giving Crypcore the chance to grow. Crypcore is essentially the combination of a crypto collateralized digital asset with a solvency system to ensure price s tability.
Problems and Solutions
Too much power on the part of the issuer: Stable coins can effectively be taken out of circulation at any time by the issuing organization. As an example the Omni Protocol of tether can grant and revoke tokens represented on the blockchain. With Crypcore this is not possible because of the technology that Cryp core is based on.
Over issuance: A big problem with most stable coins is that they are issued the same way central banks issue money, this makes them vulnerable to over issuance and susceptible to inflation. Crypcore will not have this problem because the quantity in circulation is d etermined by the emission logic of the Cryptonote protocol, and is visible to all.
Unstable Virtual Collateral: Virtual Collateral is itself unstable so using it to back a stable coin is difficult and confusing. By the end of this paper you will see how Crypcore hopes to solve this problem.
Highly Regulated: Fiat pegged stable coins are highly regulated and constr ained by legacy banking systems.
Expensive, slow liquidation & purchasing: Liquidating stable coins can be slow because with most stable coin providers you need to wire money to your account which will incur bank fees. Purchasing can also be slow as you sometimes need to undergo KYC procedures and transfer money which can somet imes take days.
Complex Smart Contracts: For crypto collateralized digital assets like Maker Dai there is a problem of understanding. For regular everyday users the terms can seem unnecessarily complex. Crypcore will implement a very simple solvency equation system with easy to understand equation and parameters. Poor Anonymity with stable coins: Stable coins do not offer any level of anonymity.
Crypcore is forked from Monero which is built on the cryptographically secure and truly anonymous Cryptonote protocol, the Crypcore ecosystem brings together a solvency equation , a pure crypto exchange and the Cryptonote protocol to create a coin which has a stable price with price stability achieved by averaging the collateral increase with price fluctuations . To this effect Crypcore is a stable coin which operates in a fundamentally different way to traditional stable coins, will call it a Dy namic Stable Coin (DSC). Crypcore will earn collateral from the fees charged on the Crypcore exchange, these fees will be added to the collateral of the Crypcore coin thus always increas ing the collateral and maintaining the stability of the Crypcore Price. Crypcore is not to be viewed as traditional crypto currency stable coin but rather a new and innovative approach to achieving price stability in the crypto currency space.
The Crypcore System
Popular stable coins are pegged against the US dollar and have a 1:1 ratio, Crypcore on the other hand will not be pegged at 1:1 but will calculate the price from collateral held. In that aspect Crypcore cannot be regarded as a stable coin in the traditional sense of the word . Crypcore will be made up of a number of distinct parts working in tandem to maintain the price of the Crypcore coin these will be: Cryp core Blockchain, Crypcore Mining , Crypcore Wallets and the Crypcore Exchange.
- Cryptonote protocol
- Block Explorer
- Crypcore Exchange
- Official Desktop
- Wallets Official
- Web Wallet
- Third Party Wallets
- Hardware Wallets
- Crypcore Exchange
- Solvency System
The Crypcore Blockchain
The Crypcore blockchain consists of the Cryptonote protocol and the block explorer. The characteristics of the Crypcore blockchain are:
- Low transaction
- Fees High Speed
The technical details of the Crypcore blockchain are as follows:
Hash Algorithm: Cryptonight
Difficulty: retarget after every block based on the last 720 blocks.
Block time: 120 seconds
Mining Reward: Confirmation Fees
Block Size: Dynamic
Supply: 1000005592. 186044415
Divisibility: Divisible by 9
The Cryptonote protocol
The Cryptonote protocol is an application layer protocol that was created to solve the problems associated with the bitcoin protocol. Cryptonote first appeared in 2012 and a ground breaking the white paper was published on October 17 2013, the most popular coins based on the Cryptonote protocol are Monero (Crypcore is forked from Monero) and bytecoin. Cryptonote is based on the cryptographic work “Traceable ring signature” created by E. Fujisaki and K. Suzuki .
Cryptonote offers the highest level of privacy compared to any other cryptocurrency protocol. The version of Cryptonote used by Crypcore is the version forked from Monero and more closely resembles Monero in every aspect. This version uses elliptic curve cryptography using the curve Ed25519, inputs are signed with anonymous group signatures and the outputs are concealed and transmitted to the users anonymously.
To obtain additional information about Elliptic Curves you can study the paper Zero to Monero and the Cryptonote whitepaper. Below you will find a general summary of how Cryptonote works. In Cryptonote the sender takes the public address from the receiver and splits it into two parts, one part of that key is combined with the senders private key to create a shared secret key, this shared secret key is combined with the other half of the senders address to create a one – time destination key. The receiver uses his private key to scan the blockchain and perform computations to determine outputs that belong to him. This way payments are received to one time keys and are unlikable to external observers.
The next part of Cryptonote is the one time ring signature , in simplest terms a ring signature consists of a group of people with public and private key pairs (P1,S1), (P2,S2)…(Pn,Sn). When a transaction is created it is signed with the public key of everyone in the group and the private key of the creator of the transaction, this is possible because a mathematical function which can compute the ring signature with only the public key is applied. The receiver of the funds can use his private key to verify the ring signature.
Crypcore aims to be accessible to even non – technical users, wallets will be provided for a wide range of platforms. There will be desktop wallets, command line wallets, hardware wallets and web wallets. After the completion of the Web Wallet development for android and iPhone wallets will begin. The web wallet is currently in development you can find screen shots below.
Crypcore exchange will play a very important role in managing the price of Crypcore. To do this Crypcore Exchange will have to do things in an unconventional manner. A very simple solvency equation will determine the pricing of Cryps. In normal stable coins the tokens are issued by the primary organization but Crypcore exchange will not be able to create tokens , rather each coin is mined. This is because the privacy and security of users are of utmost importance . In order for Cryps to hold their value the initial money supply is mined and held by the Crypcore exchange. The Cryps held by the exchange will not be regarded as being in circulation.
The Crypcore exchange at this moment is an anonymous instant exchange.
Crypcore exchange will charge a 0.1% fee for transactions.
Crypcore coin runs on the Crypcore Blockchain. It is not pegged and runs purely on the Crypcore blockchain. Crypcore coin is secure and anonymous.
Crypcore USD runs on the Crypcore USD blockchain, Crypcore USD is a stable coin that is private, because of this, collateral is held for Crypcore USD . Collateral is held at a 1:1 ratio to maintain a price of one United States Dollars. You can obtain Crypcore USD by exchanging your stable coins for it. Currently accept or plan to accept the following Stable coins for Crypcore USD:
- Binance USD
- True USD
- UNUS SED LEO
Crypcore ERC20 TOKENS
Crypcore will trade ERC 20 tokens as a funding mechanism to support the Crypcore Project. Details of the Crypcore ERC 20 tokens are:
Name: Crypcore Tokens
Supply: 200,000, 000
Contract Address: 0xaff741deaeb7f48645ead63ad56294a87534cacb
50% of profits from the Crypcore exchange will be held as insurance. The purpose of this insurance will be to protect the Crypcore exchange and it’s users in the event that there are any Losses.
Insurance will also be given to Crypcore Exchange users when there is a catastrophic price drop, are yet to determine the model that this will follow, once that is ready the whitepaper will be updated.