FAQ

"He who asks a question is a fool for five minutes, while he who does
not ask a question remains a fool forever." -- Chinese proverb

Question Categories

General - Fundraiser - Technical

General

You can use Internet of Coins as a secure way to store your cryptocurrencies, trade them without centralized exchanges, and run powerful finance and blockchain applications. Our focus is to make all this functionality available to you in an easy-to-use way. Users of Internet of Coins need no advanced technological knowledge to work with cryptocurrencies.

Internet of Coins is a modular platform that also has a user interface sporting a wallet to manage multiple coins and assets. On top of that it acts as an interface to smart contract systems, decentralized communications, and distributed notary functions. The wallet will be the first part of the infrastructure to be released.

An easy-to-use wallet with the option to exchange your currencies with anyone in the world, without dependency on a centralized third party. Compatibility with every currency available. Every user becoming their own exchange, to facilitate fluid trades of value from and to any blockchain available. This is what we are building. Receive, send and swap your value with others as easy as P2P filesharing.

Essentially, we believe we need more than blockchain technology to build our project. Exchanges between cryptocurrencies could be done via atomic exchanges on a blockchain, however, we achieve the flexibility to support all token systems by employing a new type of chain we call a weavechain. It takes care of decentralized consensus and security for decentralized exchanges, and is constantly pruned to avoid an ever growing chain size.

Currently we have a fully working command-line client with an alpha wallet front-end in testing with a group of users in the Netherlands. This has been in development for two years. The wallet can be used to deterministically store and transfer a variety of cryptocurrencies. Our weavechain is currently in development and its testnet has not yet been deployed.

Fundraiser

March 21st 2017, 10.00 AM (UTC time), in celebration of the first day of spring.

Currently, we are running them through our legal counsel. They will be posted online before the fundraiser starts.

1 token will be gifted for every USD donated to the project, as soon as the fundraiser starts. During the fundraiser, the cost per token rises according to time progression and scarcity.

Tokens will be released on the blockchain of your choosing. Due to the hybrid nature of the token, it can be used on multiple blockchains. More information will be made available in the upcoming weeks.

July 1st 2017, we will release the tokens to fundraiser participants.

Hybrid tokens serve mainly two purposes. First of all they provide a coherent store of value across multiple blockchains, diversifying risk. Secondly, they will serve as the vehicle to swap value between the different chains they are registered on. This will allow you to exchange value with users without the need for a centralized external third party. The network will split and divide escrow transactions, swarming them over network users to confirm transactions. Tokens are freely tradable after July 1st, 2017.

Technical

Internet of Coins uses multiple data streams to connect cryptocurrency blockchains in a construction called a weavechain. Our consensus model for this chain is called Proof-of-Allocation, as users that allocate their own cryptocurrencies in the Internet of Coins are automatically supporters of the network. This can be done next to mining or staking cryptocurrencies on their own respective blockchains, however, it provides an additional incentive to run their own node. Allocators are rewarded with decentralized exchange fees that users of Internet of Coins pay to the network when exchanging one token for another.

No. We do not use a blockchain, but instead a prunable weavechain that does not keep growing in size. This way we do not need to use sharding to keep the size of stored data small. Cryptocurrencies that are attached to our system, however, will benefit from implementing sharding, since almost all of them use a blockchain.

The Internet of Coins network daemon hybridd ’glues’ crypto-assets and coins together by passing around datasets or tables - utilizing a FIFO (first-in-first-out) blockstream for sharing and verifying data - that contain identification information about each invidual blockchain-based asset, and rulesets that govern their relationship to form a hybrid asset. This allows for the creation of assets that have the flexibility to pass their value from blockchain to blockchain, or system to system. An owner may transfer an asset to another blockchain by cryptographically proposing a transaction to which any other peer on the hybridd network may respond. In this way exchanges between tokens are handled in the Internet of Coins ecosystem.

Yes. Because of the modular build, we can add any currency to the platform API using modules. For the fundraiser, we start off with the most popular ones. Afterwards we will add more, starting with most of the top listed at Coinmarketcap.com. No change of the existing coin infrastructure is required; we provide a recipe per currency which hooks up its blockchain to the network.

Instead of mining, we make sure the network is supported through decentralized liquidity allocation. This means the Internet of Coins does not employ Miners, but Allocators. Users can earn value for supporting the network by enabling trade and liquidity for other users. The system does this automatically when a user chooses to have his/her node participate in this way (see whitepaper).

You can always ask us anything via Twitter, and we will respond as soon as possible. If you do not have Twitter, you can always use the contact form at the bottom of the main page.