Bitcoiin B2G (hereinafter “Bitcoiin”) is a cryptocurrency, based on the same Ehash algorithm
used by Ethereum, with a proof of work implementation very similar to Equihash, as used by
Bitcoin Gold. Bitcoiin B2G begins at a genesis state (s=0), and incrementally executes
transactions to transition a ledger into a final state (s=n). The state represents the information
about the accounts holding the coins. A valid state transition is one which comes about through a
Transactions are collated into blocks. Blocks are then chained together, using a cryptographic
hash as a means of reference. Blocks function as a journal, recording a series of transactions
together with the previous block, and also an identifier for the final state. Each block does not
store the final state itself since a complete journal like that would be far too large. Blocks also
punctuate each transaction series with incentives for nodes to mine. This incentivisation takes
place as a state-transition function, adding value to a nominated account.
Mining is the process of dedicating effort (working) to bolster one series of transactions (a block)
over any other potential competitor block. It is achieved by a cryptographically-secure proof.
This scheme is known as a Proof-of-Work (PoW). PoW is the backbone of not only Bitcoiin but
also most of the decentralized consensus-based transaction systems that have been built to date.
The mechanism behind proof-of-work was a breakthrough because it simultaneously solved two
problems. First, it provided a simple and moderately effective consensus algorithm, allowing
nodes in the network to agree collectively on a set of canonical updates to the state of the Bitcoin
Second, PoW provided a mechanism for allowing free entry into the consensus process, solving
the problem of prioritizing who gets to influence the consensus, while simultaneously preventing
“Sybil” attacks. It does this by substituting a formal barrier to participation, such as the
requirement to be registered, as a unique entity on a particular list.
Built upon the foundation of the Ethereum consensus-driven blockchain, Bitcoiin’s blockchain
operates perpetually, censorship-free and collusion-resistant. Blockchain technology is hardened
against tampering and revision, with the unanimity of records hosted by every node equally.
Transactions, contract code storage, and code execution fees are recorded on continuous blocks
on the network ledger, cryptographically secured and time-stamped.
The peer-to-peer validation model of blockchain transactions has proven elsewhere to be and is
here self-governing. The mining process incentivizes PoW effort, through the awarding of block
rewards and transaction fees paid to mining participants.
The Ethereum algorithm uses accounts and balances to record state transitions. This recording
function does not rely upon unspent transaction outputs (UTXOs). State denotes the current
balances of all accounts, plus extra data. The State is not stored on the blockchain, but on a
separate Merkle Patricia tree.
A Merkle Patricia tree provides a cryptographically-authenticated data structure, that can be used
to store all (key, value) bindings. In the context of a cryptocurrency, our use of the term is
confined to strings. These Patricia trees are fully deterministic, meaning that a Patricia tree with
the same bindings is guaranteed to be exactly the same down to the last byte, and therefore has
the same root hash. This consistency provides O(log(n)) efficiency for inserts, lookups, and
deletes. And that application allows easier coding.
The benefit of this implementation of Patricia trees comes with the addition of some complexity
to the data structure. A nonce in a Merkle Patricia tree is one of the following:
NULL (represented as the empty string)
branch (a 17-item node [v0 … v15, vt]
leaf (a 2-item node [encodedPath, value]
extension (a 2-item node) [encodedPath, key]
The result of this implementation is optimized throughput. A thorough presentation of the use of
trees throughout the Ethereum blockchain is beyond the scope of this paper.