Denarius Whitepaper

Abstract

Bitcoin has long been the premium cryptocurrency for the storage of value. Bitcoin is
the ‘original’ cryptocurrency; an immutable blockchain with a long history. Bitcoin is for this
reason why many still see Bitcoin as a stable currency – not because it has not suffered any
issues in the past, but because the blockchain technology originally proposed and brought into
code reality by Satoshi stands the test of time and leaves a solid record of all operations in a
blockchain including any of those that may be disagreeable. We expect transparency in our
public trade markets and often transparency is left lacking, however Bitcoin cannot be argued
that it shows every right and every wrong, making Bitcoin a trustable currency medium.
Bitcoin is for this reason that it continues to this day to be the ‘trusted’ currency, and it is in
these footsteps that Denarius will try to follow.

Even though the Bitcoin network holds a smaller percentage of the transactions taking
place in today’s cryptocurrency universe, the number of transactions has steadily risen,
especially in times of heavy volatility as many holders of the coin seek to liquidate their
holdings. This has lead to some significant troubles and Denarius seeks to provide another
store of value which provides the same trusted immutability as Bitcoin. Denarius seeks to solve
the issues in Bitcoin’s growth by implementing the same trusted blockchain technology
directly from Bitcore code whilst decreasing the block times significantly to provide a much
faster and responsive network in order to achieve a much higher transaction volume and
speeds that are now expected of mass-adopted modern cryptocurrency networks.

The Bitcoin core code is tried and trusted. Denarius does not intend to attempt to
re-write it in any way that it functions. The restriction, we believe, lies not in the blockchain
technology itself or any way in which the blocks are constructed, but simply in how often the
blocks are created. To answer enquiries of how the blockchain operates in Denarius, the
reader only need look to the original Bitcoin whitepaper released by Satoshi (Source).
In Bitcoin, transactions are encoded in the blockchain with a cryptographic hashing
algorithm. These hashes are created by miners using a “proof of work” (PoW) algorithm that
combines one or more hashing functions. Bitcoin itself uses the SHA256d hashing function,
which has been popularly used for a long time. ASICs (application specific integrated circuits)
have been built to create SHA256d hashes at alarming rates which in turn has lead to the
Bitcoin network hashrate inflating beyond the level that it was ever intended to be. In order to
create a single hash for the Bitcoin network and use it to encode a new block in the blockchain,
it now requires a significant amount of power and effort. In fact, using a GPU to create hashes
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for the Bitcoin blockchain is effectively futile against the hashing power provided by SHA256d
capable ASICs.
The prevalence of ASICs has lead Bitcoin to a situation where only those significantly
invested in hardware are able to gain any kind of reasonable reward from mining it; thereby
leaving the transaction processing in the hands of a few actors. Again, this is not an issue of the
blockchain itself, but simply a side effect of high block times with an easily solvable hash
algorithm.

Denarius Website
Denarius Whitepaper

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