FIREBIRD – it is a personalized crypto currency with instant free transactions and the ability to create collective wallets. The main feature of the system is its intelligent, crisis resistant, supply of tokens, revolutionizing our views about structuring of money.
Each FIREBIRD user is verified and can have only one account. Instead of energy-intensive mining farms and heavy nodes with terabytes of information, a small number of high-tech master nodes and storage facilities are used, and the nodes are lightweight applications that can work on any smartphone. Initially "empty", the system is then gradually filled with tokens automatically. The released tokens are distributed among all participants according to an algorithm that takes into account the speed of new users involvement and the specifics of transactions in the system.
As mentioned above, in order to maintain the exchange rate of tokens, supply is needed when the system grows and becomes stronger. So, in FIREBIRD there are 2 emission mechanisms:
New token issuance calculated from the average balance on existing accounts occurs with the verification of each new user and is distributed among all participants, including the new user, evenly.
Thus, the number of «Ex» tokens that are emitted per each purse when verifying the next user is described by the formula:
Example: There are 2 accounts in the system. Each account has 75 tokens. When a third user is connected, the system will release 75 tokens (average per person) and distribute them to three participants. As a result, the first and second will have 100 tokens, and the third will get 25 tokens. The more users will be in the system, the less impact will be felt from connecting new members.
Without considering the effect of emissions from transactions, the remainder of «Sx» on a particular wallet at any time is generated in accordance with the following numerical series:
Below is a table of changes in wallet (account) balances with an increase in the number of users, provided that the initial balance of the first wallet is 5000 tokens:
|Number of participants in the system|
The earlier the user has connected to the system, the more tokens they will receive over time. The distribution of tokens by wallets is shown in the following diagram:
As evident from the formula, the incremental supply relating to new participant addition, exponentially reduces with every new participant and tends infinitely to zero. Here it should be noted that despite a seemingly converging numerical series, especially as viewed from incremental supply for existing users, participant related supply represents a diverging harmonic series.
The aforementioned supply process is similar to the payment of pensions. That is, early users have certain advantages over late users throughout the life cycle of the project, no matter how long it is expected to last. In deflationary systems, this mechanism is implemented by increasing the cost of savings, but, as mentioned earlier, deflation slows down the general economy.
Supply related to each incremental transaction is distributed between users who have confirmed the transaction. The system allocates the transaction confirmation to users, according to the balances on their accounts. The distribution, however, is linked to the serial number of the user's main wallet. Thus, the earlier the user connected to the system and the less the balance on his account – the more transactions he gets to confirm and the more tokens he consequently receives from the confirmation of these transactions.
On average, the amount of emission from transactions «Ex» for each user will correspond to the following expression:
The average supply of «Eavg» is calculated as 0.5% of the total transaction amount divided by the number of users in the system at the time of its execution. Thus, with system turnover at the current crypto-currency market levels, annual supply is expected to amount to 4% of the total.
So, for a system with equal account balances and circular transactions, the gap in the distribution ratio will tend to the number 3.
Chart below visualizes the transaction driven supply mechanism through an example of the first 25 wallets with random balances:
Since the results of calculations can be periodic decimals or transcendental numbers, the system provides rounding up to four digits after the point. This is introduced to simplify the human perception relative to bitcoin and many other crypto-currencies with 6 or more decimal digits. The system will then aggregate transactions and calculate new supply on an aggregated level in order to minimize the rounding error. Aggregation of transactions might take a few hours or up to a month, depending on the turnover.
At first it may seem that FIREBIRD is susceptible to manipulation by users engaging in harmful transactions between their accounts. Back-testing, however, shows that in order to stimulate overall system inflation, these accounts need to operate with very significant amounts of tokens. Moreover, such an activity is strictly uneconomic for the users themselves as the transaction driven supply of tokens will not be sufficient to keep their asset value at previous levels.
20% of new token supply is proposed to be directed to master-nodes and storage nodes as incentivisation for system maintenance. For the purpose of making this project easier to comprehend, such calculations are not presented in the current paper.
FIREBIRD Platform token supply / issuance is driven by addition of participants and the volume of transactions between them. For that reason, full verification of users is needed in order to enable the system to function.
This is, however, a double edged sword. On one hand, without verification, the system would not , because of possible manipulations with the number of wallets and harmful transactions. On the other hand, it infringes the crypto-community’s quest for anonymity. Having said that, the world does constantly move towards maximum transparency the with many crypto users contributing to this themselves as businesses and personal lives of many people are now almost completely public. Finally, full user verification will allow FIREBIRD to be better integrated into the global economic system.
Either way when connecting to FIREBIRD, each user receives their unique registered account without transfer rights. FIREBIRD maintains confidentiality and does not disclose ownership.
For convenience, FIREBIRD platform allows users to create additional wallets besides the main one.
In addition to personal virtual accounts, a mechanism for creating collective ones is also provided. It is convenient for organizing a business partnerships. On the FIREBIRD platform, 2 or more users can create a joint account, specifying share of ownership and legal access and operational rights.
Token supply, in this case, will be calculated based on the total balance of all user accounts, taking into account the share of ownership of these accounts.
Example: Users 1 and 2 create a collective account with 50%/50%. Ownership. At the same time, the account can be configured so that all payments from this account are carried out only upon approval by both users.
FIREBIRD consists of 3 distributed networks - one user and two transactional networks. Blocks in the system are formed by the forging method every 5 seconds.
The user network stores information about account holders. A separate block of up to 5 MB allocated for each user. The data in the block is encrypted using an algorithm based on McAliece keys, corresponding to the groups to which the user belongs, as well as the user's own key.
Each group has its own set of user data, which it is able to accesses with its key with the user’s permission. The owners of the groups are the users of the platform. Thus, users do not see information about each other by default, but they can provide and access to it by agreement.
2 transactional networks operate on general principles, one of which is public and the other private. Information about transactions in the private network is encrypted, and in the public ne it is available to all users.
In FIREBIRD’s transactional networks, master nodes are used for both task allocation and data storage. Thus, the work of the node does not require significant disk space. In fact, every FIREBIRD user application for smartphones or desktops is a node, which provides the network with significant computing power.
To sign transactions, the ECDSA algorithm is used. Consensus is PoS («proof of stake»).
Distribution and appropriation of tasks between the nodes is done by generating a pseudorandom sequence every 300 seconds in such a way that the load on the nodes corresponds to the principles of transactions based token supply.
It is important to note that the personification of the FIREBIRD system makes it possible to minimize the risks of data manipulation by its users, and the algorithms used in the networks will be resistant to attacks from quantum computers.
FIREBIRD provides for the possibility of issuing its tokens by each participant. Moreover, FIREBIRD provides the infrastructure for working with verified users. It is possible to create an isolated system with its own master nodes and storages, as well as integrate it into an existing network.