Internet of Coins Releases Whitepaper on Interconnecting Entire Cryptocurrency Ecosystem
Dutch cryptocurrency organization Internet of Coins has released a whitepaper for its plan to connect entire Bitcoin and cryptocurrency ecosystem through a hybrid P2P meta-network.
The whitepaper is available for download on the organization’s website.
Internet of Coins partnered with German security-oriented cryptoexchange Bitalo in November 2014 for development and funding of the project.
The Internet of Coins open source system will soon be made publicly available for non-commercial purposes.
The platform will be an inter-systemic and cross-blockchain solution using ‘hybrid assets’ allowing users to make trust-less transactions in a cryptocurrency of their choosing while remaining anonymous. Users will be able to connect to the Internet of Coins decentralized network and make transactions without the need to update or adapt existing wallets, blockchains or value systems.
To mediate the transfer of value between different digital currency systems, they will offer a peer-to-peer meta server that is cross-blockchain and inter-systemic.
The meta-server networking daemon (hybridd) must use a concise and practical encrypted communications protocol and functions modularly on top of existing anonymous routing networks such as, for example, TOR, I2P, or GNUnet, using their networks as a transport. This makes it more difficult to trivially identify individual node IP addresses, and makes NAT and firewall traversal easier. Peer ID’s and their public keys are shared among peers as data in a distributed hash table. Each PeerID is subject to a lease, and the entries of the peertable are intermittently verified by the participants in the network and timestamped.
The new organization believes that its system will address problems with trust model and price manipulation of digital currencies. The Internet of Coins organization notes:
This will solve multiple problems that occur when cryptocurrencies are transacted using trusted third parties like in many exchange and transaction models seen today.The trust model causes a re-introduction of the constructional weaknesses of the traditional centralized financial model. Another issue that Internet of Coins will combat is the risk of price manipulation that is possible when different altcoins are isolated from each other.