Banks, Governments and Corporations will attempt to drive adoption of a self serving independent token.
Efforts to drive adoption for a proprietary token, coming from either the public or private sector, will ultimately be limited to those accepting their influence.
Leaving the door open to a neutral digital medium of exchange that respects regulatory boundaries.
Identabit - Identity Enforced, Facilitating Adoption, Ease of Use, Compliance, Governance, Performance, Sustainability
To comply with legal requirements banks and exchanges must report suspicious transactions inclusive of counterparty identification.
Regulators, looking to prevent anonymous cross border transactions, will discourage banks from passing currency to a wallet empowered to send anonymous transactions.
With the recent FATF report and consequent guidelines, we are witnessing the door closing on anonymity, requiring steps to ensure decentralized, open source projects survive.
Zero public scrutiny
Traceable anonymous addresses
Privacy with effort
We are driven by a desire to see decentralized technologies disrupt and disintermediate. We believe the fight to see Bitcoin accepted by regulators is lost and is undermining the possibility of seeing a neutral global currency gain acceptance.
In essence, we see it as naive to believe that governments can tacitly ignore the issues associated with anonymous cross border transactions and if a decentralized alternative is not deployed, we will see banks and centralized operators seize the spotlight and suppress the potential of decentralized technologies.
Identity based transactions are intended to make theft and extortion illogical, given a thief must pass proceeds to an identified party. All aspects of anonymous crime by definition should be and will be contained by enforcing identity. As a consequence society and our children are protected from exploitation and criminal abuse.
If we put aside the moral issues of empowering crime, how can we ignore a bank's responsibility to report suspicious transactions. How can institutions recognize an anonymous neutral currency when to do so would mean they potentially break the law? Identabit enables institutional support.
Identabit is an open source, genuine solution to the legitimising of decentralised technologies, enabling developers to focus on sustainable business opportunities that ultimately disrupt and disintermediate the unnecessary and inefficient.
To drive adoption digital money must improve on both cash and credit cards. For this to happen, digital money must pass rapidly and easily, between participants. Value must be exchanged without fear of transfer inaccuracy and users must be able to expand their network of recipients with the same address-book leverage and simplicity experienced with mobile messaging.
AML/CTF compliance by exchanges and banks is meaningless unless inclusive of P2P transactions. Identabit enables P2P/AML/CTF by way of blockchain enforced identification and transaction privacy.
As digital money is integrated into cars, appliances, apps, dispensers, entertainment mediums, automated medical appraisals, etc. our Identabit accounts will be interconnected with everything we use and identity will enable incentives, auditability, reversibility, etc.
Decentralized Identity Protection
No Single Point of Control
No Single Point of Control
The Objective: to design a financial blockchain that recognises the importance of institutional adoption, eliminates the need for interbank settlements and brings costless multi-currency transfers to all those that need it most.
Identabit began with a set of requirements that were considered by the crypto-community both impossible and undesirable as they faced insurmountable technical obstacles and conflicted with the ideology of anonymity. Below are many of the challenges addressed through persistence and innovation.
The Objective: To avoid anonymous cross border transactions that enable sybil attacks, empower crime, and circumvent capital controls, users must be verifiably identified.
The Difficulty: Difficult because user data must be consistently captured by a mechanism that satisfies regulatory reporting and limits an institution's exposure to possible violations of jurisdictional rules and regulations by its customers.
The Objective: The Identabit network must enable registration and use by the unbanked. The process must be markedly simpler for the unbanked than the process to obtain and use Bitcoin.
The Difficulty: Difficult because this requirement appears to be in conflict with the requirement to adequately identify all users on the network and might lead to high friction.
The Objective: Proof of Reserve, a feature to allow users and stakeholders to independently verify their blockchain holdings, must be available for audit at any time.
The Difficulty: Difficult because, in contrast with Bitcoin's public ledger where all transactions are visible, Identabit transactions and the identity of participants are obfuscated.
The Objective: Unlike Bitcoin, where the user's wallet address is public, Identabit protects a user's privacy where neither the wallet address nor the user's identity are available for public scrutiny.
The Difficulty: Difficult because whilst it's simple to obfuscate, it results in data being potentially unavailable for verification and or regulatory inspection.
The Objective: Unlike Bitcoin, where transaction values are public , Identabit protects a user's financial-footprint™ from public scrutiny, by preventing forensic analysis and protecting users from unwarranted private or government inspection.
The Difficulty: Difficult because while a user's privacy is paramount, it is necessary to enable transaction verification and regulatory compliance.
The Objective: Unlike Bitcoin, integral measures should be available in order to prevent theft.
The Difficulty: Difficult to achieve given the ease by which hacked/stolen proceeds can be moved to peer to peer.
The Objective: To enable decentralized administration of necessary tasks ranging from onboarding of gateways, network compensation, issuance, accountability, expenditure disbursement and sustainable funding.
The Difficulty: Difficult because some legislators are imposing regulations on central points of administration, risking a currency's neutrality. Consequently oversight of the Identabit blockchain must remain free of unilateral action and individual responsibilities.
The Objective: Based on transaction behaviour, regulators require access to user data determined by a jurisdiction's regulations.
The Difficulty: Difficult because regulatory access must reflect the specific legal conditions of a jurisdiction and access to a user's data must be limited to warranted demands and must not leave the blockchain open to unwarranted inspection.
The Objective: To enable adoption, unlike Bitcoin Idenabit must enable institutions to trade without concern for regulatory violations.
The Difficulty: Counterparty identification is essential to meet regulatory demands
The Objective: To enable P2P transactions, eliminate interbank settlements and enable support for multiple digital currencies.
The Difficulty: The network must accommodate a zero risk, multi-currency facility, and any changes to the institution's transaction process must respect existing business models in order to gain acceptance.
The Objective: Users should be able to register with the simplicity that they experience when they join existing mobile and social networks.
The Difficulty: Difficult because a registration process that requires a verified identity may also require the submission of extensive personal information, which may result in rejection by the majority of potential users.
The Objective: Unlike Bitcoin, users should be confident that they are sending value to a known party, rather than risking mistakes in transposing a wallet address or a receiver's handle.
The Difficulty: Difficult because senders are typically responsible for accurate recording of the receiving party.
The Objective: Users, as with Bitcoin, should be able to immediately send funds to any potential participant.
The Difficulty: Difficult because users are limited to varying transaction thresholds and there can be no surety in advance that the receiver is verified to receive the amount sent.
The Objective: Unlike Bitcoin, it is essential that a transaction that cannot be retrieved by the receiving party, can be reversed and returned to the sender.
The Difficulty: Difficult because, as with Bitcoin, typical blockchain technology immediately writes irreversible transactions to the blockchain.
The Objective: Unlike Bitcoin, it is essential that the network can scale to transaction speeds and capacity that exceed those of Visa and Mastercard (published speeds of 24,000 TPS (Transactions Per Second).
The Difficulty: Difficult if using Bitcoin's Proof of Work which is currently limited to 7 TPS.
The Objective: Like Bitcoin, it is essential that the network continues to release value to compensate network block validation and other work on behalf of the blockchain. But, unlike Bitcoin, the continual release must serve market makers, facilitate continual development, have suitable oversight and must not do so at the expense of the market value of the traded asset.
The Difficulty: Difficult because, unlike Bitcoin, continued release requires algorithmic control of issued funds which must be distributed in accordance with verifiable budgets, determined by way of consensus governance recorded on the blockchain.
Receiving details are verifiable [99%]
Identabit users are matched [99%]
Receiving details are not verifiable [1%]
Bitcoin users are anonymous [1%]
We are passionate about open source and welcome all those interested in furthering the integration of decentralized technologies into existing frameworks and remain convinced that disruption succeeds from within.
Transaction and privacy comes as a consequence of Identabit's blockchain being closed to public and regulatory scrutiny. Conditional P2P/AML/CTF reporting is the responsibility of an exchange therefore limiting transaction visibility to users and their specific exchange.
KYC identification for all senders and receivers attempting material transactions, counters criminal intent, inclusive of theft, extortion, exploitation, money laundering, terror financing. All weaknesses empowered by anonymous currencies.
The introduction of identity not only minimises the threat of theft but also reduces the risk profile for storing of customer funds, reducing the cost of insurance and increasing the protection of customer assets.
Identabit’s architecture pays due respect to the intent of AML/CTF reporting and recognizes that for it to be effective, Suspicious Activity Reports (SARs) must be inclusive of P2P transactions throughout the network resulting in P2P/AML/CTF reporting.
By respecting the need for P2P/AML/CTF reporting inclusive of counterparty identification, Identabit offers banks a unique opportunity to embrace a neutral digital currency that does not ignore the legal obligations inherent in regulatory compliance.
All aspects of Identabit Governing Councils have inherent checks and balances preventing unilateral action and/or facilitating routing of budgetary expenditure and council recommendations, to ensure integrity by way of transparent governance.
An identity based chain by way of exchanges, enables auditing of an account holder's transactions, where taxation requirements demand. Whilst at the same time P2P/AML/CTF reporting ensures currency controls are respected.
An identity based neutral currency combined with escrow and confidential smart contracts, enables businesses to benefit from cost efficient payments, traceability, accountability and auditability.
Identabit's sustainable funding mechanism, uses Identabit's unique Proof of Appreciation to ensure that funding, by way of dilution, occurs only when algorithmically permitted.
Proof of Appreciation results in semi-annual auctions allowing Market Makers to bid and acquire significant holdings at an effective discount to support market positions.
Identabit is a derivative of existing blockchain architecture and, as such, is open source. Solutions that further the advancement of identity will continue to be shared with the community.
Existing investments in Bitcoin exchanges and payment platforms can readily transition business to a sustainable compelling opportunity that removes the reliance on Bitcoin's increasingly, evasive potential.
Unlike the stigma and uncertainty preventing top-shelf market makers from adopting anonymous currencies, Identabit enables institutions to comply with the regulatory demands local to their jurisdiction. Enabling early adopters to take a commanding position in a currency strategically designed to dominate the global, neutral currency market.
By combining institutional support, government respect, regulatory compliance and enhancement with ease of use, Identabit removes adoption barriers inherent in anonymous based currencies.
Identabit's DPoS reliant transaction validation is hundreds of times more efficient than Bitcoin's Proof of Work due to the absence of unnecessary complex currency generation.
Combining personal address books with Identabit's integrated identity, enables buddy matching, integration with existing mobile messaging networks and simplified financial text messaging to known receivers
Utilizing advanced Proof of Stake architecture, block confirmation times results in sub 3 second transaction times and when combined with transactional capacity equal to that of Visa and Mastercard, Identabit competes with fee charging credit card networks and satisfy the speed required for cash, replacing cross counter digital transactions.
Relative compute/power consumption 0.5%
Comparable block confirmation time < 3 seconds
Current relative transaction capacity scalable to 100,000 tps
Relative compute/power consumption 100%
Comparable block confirmation 600 > seconds
Current relative transaction capacity limited to 7 tps
Driving Identabit is the principle that identified transactions on the blockchain should not be visible to public or government scrutiny.
Driving Identabit is the principle that financial transactions should be private from public and regulatory scrutiny unless they are identified as suspicious by a regulated body
Driving Identabit is the principle that AML/CTF must be extended to P2P transactions occurring on the blockchain
Driving Identabit is the principle that open source decentralised technologies must be unleashed and allowed to realise their full potential and not held back by ideology.
Driving Identabit is the core belief that anonymity undermines the adoption of digital currencies, due to regulatory conflict, complex UX and the diversion of creative development towards an unrealisable and undesirable objective.
Driving Identabit is the core belief that big banks relish the ongoing adoption conflict arising from anonymity, the growing stigma of illegality and most of all they appreciate the time it buys them to present bank driven alternatives.
Driving Identabit is a core belief that anonymity empowers extortion as well as enabling theft and other illicit transactions that are counter to the public's interest and that regulations designed to identify suspicious transactions are valid and should be respected.
Whilst Identabit emphasises the importance of protecting society from extortion, theft, money laundering and financing of terrorism, their is equal concern regarding the relaxed attitude of institutions supporting unwarranted government breaches of personal data. As with all members, institutions violating customer trust, risk delisting by their respective council.
Identabit recognises that it considers the protection of society from anonymously empowered crime to be more important than the continuing threat of government tyranny and as a consequence we make no excuses. If we must choose between child exploitation and tyranny,a child's safety will and always should be the priority of the Identabit Principle.
Entire issuance at the genesis
Managed by: Proof of Appreciation (PoA)
Issuance dependant on market conditions
Block confirmation < 5 seconds scalable
CPU/Energy typical computer power writing records
Issuance compute power
Managed by: Proof of Work (PoW)
Issuance independent of market conditions
Block confirmation 600+ mins seconds rigid
CPU/Energy excessive, mining farms, expensive
Issuance compute power >>> increasing
Identabit councils are responsible for transparent governance and influencing outcomes, specific to their area of responsibility.
Responsible for the transparent disbursement of budgeted funds
Responsible for recommending software development and release procedures
Responsible for appraising delegates that can build confidence in the network.
Responsible for recommendation regarding delegate compensation
Responsible for continual improvement in the useability of Identabit applications
Responsible for building awareness and credibility.
Responsible for legal liaison
A council consisting of voting members and stakeholders
Approx. Node net income
Approx. Node net income
Asset release should be under the control of transparent code and show respect for market conditions
Initial issuance must have regard for sustainable funding and appropriate motivation
Reflecting Bitcoin's gradual introduction of funds but without the heavy cost of energy draining mining, Identabit introduces Proof of Appreciation.
Proof of Appreciation enables sale by auction from a pool of funds determined at the genesis, for sustainable funding of operational councils, eg. development and legal.
Proof of Appreciation auctions are semi-annual and determined by a transparent algorithm, where availability of assets for sale is dependent on sufficient appreciation.
Auctions are designed to enable market makers to secure meaningful parcels of coins and importantly, provide sustainable funding for the ongoing development and related operational tasks.
Operating budgets are submitted by governing councils and passed by the Foundation Council and its members
Checks and balances achieved through transparent routing by way of automated multisig acceptance, unless interrupted by a council veto.
Income from auctions is directed automatically to operational wallets in accordance with recognised budgets.
All operational wallets are transparent to the community, where funds and associated expenditure can be observed and commented on.
Proof of Appreciation and associated auctions are transparent and algorithmic. As a consequence have the security of mining without the limitations of unconditional release of assets into a declining market
Stated Direction and Governance 100%
Transparent governance 100%
Ongoing issuance allocated to sustainable 100% funding
Qualified decentralised institutional delegates 80%
Incoherent Direction absent of Governance 10%
Opaque administration 20%
Ongoing issuance allocated to miners, 0% funding
Random self serving mining pools 50%
Vulnerability to theft (low)
Insurance risk profile (low)
Vulnerability to theft (high)
Insurance risk profile (high)
We are software professionals intent upon building a superior network of software hubs with skills relevant to decentralized technologies.
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With mandatory P2P/AML/CTF it is now possible to get behind a compliance enabling neutral currency
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A neutral currency, smart contracts, escrow, multisig
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September 2nd 2015