This document is intended to define a variant of cryptographic currency based on knowledge provided by BitCoin [1]. Before reading this document is recommended to have a deep technical knowledge of BitCoin to understand the concepts presented here.
History:
In 2009, thanks to the invention of BitCoin, a new method for creating a virtual currency transactions without a central authority was created. This method included two new elements that were the basis of BitCoin (and therefore of all new virtual coins that have been created since then)
– “BlockChain” [1] [5] The block chain is the source of where the data is stored and all historical transactions are secure transactions by storing them in a Merkle Tree [2] [5] that prevents an operation can be carried out for duplicate or without the corresponding funds or double spent.
– Mining [1] [3] [5]: The mining process is unique and is the basis for the creation of the block chain and the generation of new currency. No mining there is no way to guarantee blocks consistency. Also, this method provides gratification to BitCoin generating new currency.
But although it is similar to a normal transaction, Bitcoin has some aspects that distinguish it from a traditional bank.
Firstly account numbers correspond to a cryptographic key [4], so they are not easily usable, unless electronically, because they size is 25 bytes, stored between 26 and 35 characters (Base 58). This means that if a person wants to make a transaction the account number is necessary to be able to read electronically because manually is difficult to enter an account number without mistakes (but provides mechanisms to detect errors because it contains a checksum) To verify a transaction needs to mention the previous transaction from which income is able to spend. That is, it is not to look at the balance of a bank account transfer but upon … and obviously see that this transfer has not been previously spent. Although the mechanism ensures perfect operation involves always have all historical transactions affecting BitCoin address, and consequently, a miner must have all historical transactions.
Another very important aspect is the fact that if someone loses a key to operate your BitCoin, never be able to withdraw the funds you have in this address (except generate the same private key). Although this may seem secondary certainly be destabilizing for currencies such as Bitcoin, because the majority of addresses that were generated in its first two years of life (theoretically were created by the author the BitCoin, Satoshi Nakamoto) have never been used. Certainly only the creator knows if they are lost or not. What would happen if suddenly is discovered today that can be used? Most likely there would be a massive devaluation of its previous price due to ignorance of this factor or wrongly assuming that these BitCoins were lost.
Also keep in mind that BitCoin only operates with elliptic curve cryptographic keys “secp256k1” [4]. While today this key is considered safe, no guarantee that incoming years this key can be vulnerable and lose efficiency.
PascalCoin
