It is fairly evident that upon analysis and review, humanity’s progress and evolution of its societies in technology, science, medicine, industry, communication among others are closely tied to ease, efficiency and effectiveness of transferring wealth between individuals, organizations, and nations. Simply consider, any meaningful effort of coordination that forms the basis of our modern division-of-labor based economy cannot take place without a universal form of currency with which parties can transact and pay for products and services rendered in a safe, secure, and effortless environment. While recent attempts at creating such a universal currency have resulted in our modern financial system, where several major stateissued national currencies are available to all and can be exchanged among themselves (USD, EUR, CHF, GBP, JPY, etc.), the system inherently relies on the production of debt, inflation, and trust in the centralized authorities that manage the monetary policies behind it. By its very nature, such system will be subject to multiple failure points due to its centralized nature, an innate lack of trust as result of its few-rule-the-many governance structure imposing decisions without consulting its constituents, and an ongoing devaluation of its own coin (the USD, for instance) which causes a continuous erosion of wealth for all of its constituents, as experienced in the 2008 global financial meltdown, among other events.
We start by acknowledging that the first ever solution to truly tackle the aforementioned points of concern was the Bitcoin, devised by its creator(s) Satoshi Nakamoto in 2008. Bitcoin is a true peer-to-peer electronic cash system that allows for direct online payments between end users in a trustless way, i.e., without the need of placing trust in the authority of either party or in a 3rd party intermediary or escrow service, such as a government, bank or credit card company, as a means to verify that the buyer has sufficient purchase funds and the irrevocable intent to do so (eliminate malicious chargebacks despite delivery). To do so, the Bitcoin network relies on a decentralized, publicly-accessible and cryptographically-secured ledger, called the Blockchain, which stores every balance and transaction carried out on the network and its replica is hosted in its entirety by each of its participants; none of whom can alter its history or undermine the integrity of the ledger or its content in any way.
Launched in 2009 and having amassed a very large number of end users, miners, market participants, merchants with derivative products and services and most importantly a high volume of daily transactions, we recognize that Bitcoin (at its current shape and form) has reached an effective point of stagnation and diminishing returns; as it stands, without any radical infrastructural overhaul, subsequent efforts placed into the system will not allow its community to resolve the primary bottlenecks it is currently facing on its path to universal adoption as a viable global currency.ALQO whitepaper