Equibit is designed to do one thing and do it really well: enable a peer-to-peer securities network secured by our own blockchain.
So why should you use it?
It is difficult to overestimate the possible applications of peer-to-peer consensus protocols. With Equibit, we are talking about a new way to dematerialize securities: a rare event filled with opportunities for exchanges, issuers, investors, miners and operators alike. Blockchain networks enable the creation of unique unfalsifiable digital assets. Prior to the invention of peer-to-peer consensus networks, identifying the original document out of two identical digital copies was not possible. A blockchain allows us to do that.
While many organizations are creating tokenized digital assets based on smart-contracts, Equibit is a dedicated peer-to-peer network built on an open-source communication protocol. When it comes to digitizing securities, we think this is the best approach.
Our goal when designing the Equibit network was to incorporate the best practices and lessons learned from other successful blockchains. For example, the Equibit network uses segregated witness tree, variable block size, and DASH’s dark gravity well (DGW) mining difficulty adjustment algorithms. These design enhancements were included to create the best, most secure, and most attractive blockchain for capital markets.
Why is Equibit attractive for miners?
Mining cryptocurrencies in 2018 is serious business, with sophisticated mining operations optimizing their hashing power towards different networks in order to maximize mining revenue.
For Equibit, we made a number of strategic decisions to attract this community to our network. These individuals will soon provide the computational proof-of-work service required to maintain a decentralized consensus in exchange for the coinbase issuance and transaction fee rewards that Equibit offers. (The key to a proof-of-work consensus blockchain is to attract enough miners to generate hashing power to secure the network.)
As the Equibit network grows, its utility will be partially measured by the secondary valuation of EQBs (the network’s coin), which can then be traded on secondary exchanges.
Furthermore, our choice of the logistic S curve to manage the EQB production ensures a natural distribution aimed to mirror network adoption and growth. The SHA-3 algorithm was selected as the best-in-class hashing algorithm, providing large hash rates, quantum resilience and overall greater security for the blockchain. We believe the combination of these elements will attract miners to Equibit and in turn, help to solidify and scale the network when launched.
For issuers and investors
The Equibit network will only work and be useful to market participants if it can provide a better, more secure service, at a better price to would-be issuers, market operators, and participants. Equibit Portfolio is designed to do just that.
Equibit is an incorruptible and constantly audited decentralized transaction ledger that can be connected with any other blockchain protocol to transact and exchange securities.
This is a sophisticated application that allows issuers, portfolio managers, investors, analysts, and everyone else interested in participating in the network to easily manage their securities needs. It also supports atomic swaps with other cryptocurrencies, which guarantees the safe transfer of crypto-assets across blockchains. As coins become an increasingly valuable source of capital, we believe this feature will be especially useful.
The Equibit protocol is designed to allow issuers and investors engage directly with one another in a cryptosecurities marketplace. The blockchain provides a secure ledger of issuance, ownership, and transactions that replaces the costly clearing and settlement services. Any entity or organization to engage with other participants on the network without intermediaries.
Equibit is an incorruptible and constantly audited decentralized transaction ledger that can be connected with any other blockchain protocol to transact and exchange securities. It’s a far cry from a traditional exchange: the first truly open-source network for capital markets that will simplify and secure the registration, transfer, clearing and settlement of equities -- a significant part of economic activity currently underserved by modern technological innovation.
Stay tuned for part two on why Equibit makes sense for these and other user groups.