Whitepaper
Preamble: A fair currency would allow the poorest to be favored over the wealthiest. It could intrinsically provide a universal income for small wallets. Conversely, it could, intrinsically as well, apply fees proportional to the capital. In this way, users of this cryptocurrency would form a community dissociated from speculators, who will not be interested in using it. This currency would no longer be subject to price fluctuations detrimental to small wallets.
With the rise of cryptocurrencies, many protocols present innovative ideas based on blockchain, such as smart contracts and NTFs. Despite all the advantages these solutions offer, the public is still skeptical about the value and legitimacy of cryptocurrencies and blockchain. A lot of politicians, financial regulators and others see these technologies solely as an industry of gambling and speculation. This vision is because a large proportion of cryptocurrency holders use them for speculative purposes. Unfortunately, this overshadows the primary motivation that inspired the initiators of the blockchain, at a time when it did not yet seem possible to get rich thanks to this technology. It should be remembered that the original purpose of Bitcoin was to protect its holders from the risks of a centralized monetary system. Based on a decentralized system, Bitcoin and most cryptocurrencies meet this need; there is no authority having any power over price, liquidity, and transaction validation for most cryptocurrencies which, in a way, creates a separation of power between money and State. Besides, most cryptocurrencies are deflationary; if we look at the long term, the value of the tokens of the main cryptocurrencies has never fallen below its initial price. On the other hand, there is price volatility that has no equivalent among non-digital assets. This volatility is mainly due to excessive speculation around the price of crypto assets. This is proof that, although we can talk about the separation of power between money and State, there is no separation of power between money and finance. The only way to do this is to suppress incentives for traders who use a currency as a financial asset.
The Ruthenium blockchain is in many ways similar to the Bitcoin blockchain, although it does have some differences. The main differences are:
- Wallet amount decreases over time.
- Each wallet receives an income based on its amount if it is registered in Proof of Humanity.
- Each validator node must be registered in Proof of Humanity.
The term "transaction" is used in Ruthenium to refer to the signed data package that stores an amount to be sent from a sender wallet to a recipient wallet. Each transaction contains:
- The creation timestamp
- The wallet recipient’s address.
- The wallet sender’s address.
- The sender’s public key.
- The signature.
- The amount.
- The fee.
The sender’s public key is needed to verify the transaction signature when verifying a new block.
The term "block" is used in Ruthenium to refer to the signed data package that stores transacions. Each block contains:
- The creation timestamp.
- The previous block hash.
- The transactions.
- The addresses registered in the Proof of Humanity registry at this block creation time.
The steps to run the network are as follows:
- New transactions are broadcast to all nodes.
- Every minute, each node collects new transactions into a block.
- Every 10 seconds, each node verifies the new blocks of the neighbor’s nodes, selects one of them and broadcasts it to all nodes.
- Nodes accept the block only if all transactions in it are valid and not already spent.
- Nodes express their acceptance of the block creating the next block in the chain, using the hash of the accepted block as the previous hash.
Nodes favor the longest chains and select the one created by the oldest validator.
Each node validates the pending transactions before adding them to the next block. The algorithm for checking if a transaction is valid is as follows:
- Check that the timestamp of the transaction is greater than that of the previous block and is less than 2 minutes in the future.
- Check that there is one or only one reward per block.
- Check that each transaction is not already in the blockchain.
- Check that each transaction signature is valid.
- Check that the total transactions amount to and from a wallet address is less than the wallet amount.
Each node checks the blockchain by checking all new blocks. A block whose reference is not known by the validator node is considered a new block. The algorithm for checking if a new block is valid is as follows:
- Check if the previous block referenced by the block exists and is valid.
- Check that the timestamp of the block is exactly 1 minute greater than that of the previous block and is not in the future.
- Check that there is one or only one reward per block.
- Check that the reward amount is valid.
- Check that each transaction signature is valid.
- Check that the total transactions amount to and from a wallet address is less than the wallet amount.
- Check that the reward recipient’s Proof of Humanity is valid for the last block.
In Ruthenium, trust is not based on Proof of Work or Proof of Stake. The protocol uses Proof of Humanity to ensure that a real human is running only one node.
Proof of Humanity is a concept concretized by Santiago Siri. It ensures that one real human owns only one wallet address.
Using this principle:
- Ruthenium allows only one node per real human. Each validator must be registered in the Proof of Humanity registry with the same Ethereum wallet address used by its validator node.
- Ruthenium pays a basic income to humans registered in the Proof of Humanity registry with the same Ethereum wallet address used by its wallet.
Among the trusted nodes, the one which have not been selected for the longest time is selected to create the next block.
A validator gets a reward each time he validates a new block. The reward amount is equivalent to the addition of the fees of each transaction of the created block.
Each single human is eligible to receive an income. To receive this income, only the two following things are needed:
- Being registered in the Proof of Humanity registry with an Ethereum wallet address.
- Having spent some tokens from a Ruthenium wallet having the same address as the Ethereum one used to register in the Proof of Humanity registry.
It means that, if the Proof of Humanity registration expires, a new registration and a new spending is required to get the income.
For each minute, the income calculus formula is as follows:
The figure below presents the evolution of the income amount depending on the wallet amount. We can see that the highest income amount (0.0282 Ruthenium per minute) is reached for a wallet amount of around 26,000 Rutheniums.
The ruthenium 106
As we can see in the figure below, combining the disintegration with the income, any wallet amount tends to 100,000 Rutheniums:
- A human holding more than 100,000 Rutheniums will see its wallet amount decrease over time.
- A human holding less than 100,000 Rutheniums will see its wallet amount increase over time.
To be described
To be described
The Ruthenium protocol is designed to remove any interest in speculating on the value of its token. It would be to make profits of more than 200% a year just to keep the initial amount, which seems unattainable and unnecessary; a speculator will privilege other assets. With this protocol, capitalization is also not profitable beyond 100,000 tokens. This cryptocurrency is destined to be used for fair trade and responds to the need for universal income increasingly demanded by the population. It is much more lucrative to benefit from the income or from the rewards by validating new blocks than by hoping to get dividends via any financial investment. Finally, since the selection of nodes is based on the Proof of Humanity and not on an energy-consuming algorithm, this protocol also addresses the environmental issue by proposing a sustainable monetary system.
This concept will only come to life with the massive participation of contributors. Each connection of a new validator node to the network will strengthen its robustness. Each user who makes transactions through this protocol will give more credit to the project.