USDEX White Paper - USDEXProject/usdexcoin GitHub Wiki

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USDEX WHITEPAPER

Contents

PURPOSES OF USDEX

The purpose of USDEX is to create an open ecosystem with the aim of limiting market volatility. USDEX is pegged to real-world currencies and USDEX Coin is not money. USDEX Coin is formatted to operate on blockchains, moving on blockchain as easily as other digital currencies, and USDEX keeps its value at 1:1 level in comparison with base assets in USD

USDEX is built based on blockchain technology, revolutionary, password-secure, strict compliance with global government’s rules and regulations. All USDEX Coins are pegged to the USD price (for example: 1 USDEX = 1 USD) all transactions are recorded on the explorer in real time

USDEX can be stored, sent and received securely on the blockchain

WHY USDEX?

  • Keep USDEX digital assets to limit market volatility
  • Solve the cash component of digital asset transactions at par value of USD
  • Exchange between digital assets easily with low cost
  • Address transactions outside traditional banking hours
  • Transfer international transactions in simpler way
  • Cross-chain transactions on the blockchain platform
  • Cross-chain transactions without the third party. USDEX token can be exchanged with most mainstream cryptocurrencies in the world.

INTRODUCTION

The mission of USDEX is to help everyone, everywhere easily move assets on blockchain like cryptocurrencies.

USDEX offers two USDEX coin products and USDEX trading floor. Help you easily invest in cryptocurrencies even if you have never invested in them.

TECHNOLOGY ROADMAP

Currently, USDEX has completed the POW/POS technology, looking for and verifying unique transaction, verifying identity, processing real-time transaction, mass automatic transactions, global real-time transactions, security and transparency on the blockchain system, decentralized database trading floor, fast and big order matching speed

The next major development will focus on payments, ICO platform for businesses and development of USDEX smart contracts.

DISTRIBUTION PLAN

The total amount of USDEX is 2.5 billion, no additional issue.

Including:

  • 750 million USDEX will be distributed through POW/POS.
  • 200 million USDEX is applied for strategic investment and strategic cooperation
  • 100 million USDEX for group incentives.
  • and the total amount in current circulation is 1.45 billion USDEX.

USDEX IS A POS

USDEX transaction data is stored as linked blocks. They are secured by mathematical functions, the older block is, the more difficult it is to be changed or remove, which is what makes all transactions irreversible. The main data stored in a block is:

  • Block header (version number, hash of the previous block, Merkle tree root hash, timestamp, target difficulty, block nonce)
  • List of transactions.

KEY ADVANTAGES OF PROOF OF STAKE

Proof of Stake is eco-friendlier, as it is more efficient and does not require massive amounts of electricity.

Proof of Stake has the ability to prevent the control of USDEX Coin which could pose a threat to the hierarchy of the blockchain, thus giving everyone equal opportunity to stake.

There is no need for specialized mining hardware, therefore, the barrier to join the Proof of Stake is determined by how much money a potential investor wants to stake. On contrary to Proof of Work, in which the mining hardware is required to be profitable, mining machines need to contain dedicated hardware at controlled temperature. Mining operations will also have access to a sufficiently advanced grid infrastructure to be operational

PoS algorithm, reward for miners with a percentage change in their total stakes, similar to how bank deposits work;

PoS is highly regarded by the cryptocurrency community, even with prominent figures from Ethereum such as Vitalik Buterin claiming that Proof of Stake is most probable for the future because it's truly decentralized, dispersed and secure. Because it has the ability to prevent from mining by specialized hardware, thus encouraging the mass mining of cryptocurrency, which will remain in the control of its owners, eliminating the possibility of appropriating or manipulating the blockchain.

USDEX is currently addressing the problem of a global downturn in staking, USDEX aims to become a bridging cryptocurrency for the blockchain and the real world by acting as a highly managed staking means.

USDEX offers the blockchain application ecosystem, from a technology standpoint, USDEX uses the mathematical model PoS (Proof of Stake) to achieve network consensus. The Proof of Stake is a novel consensus mechanism for cryptocurrency instead of PoW (Proof of Work), which is the most widely used consensus mechanism deployed in Bitcoin, Ethereum and most of cryptocurrencies. Technically, USDEX uses Proof of Work to distribute the original coins (this is mostly using cryptocurrency) but then switches to Proof of Stake fully to provide protecting networks. Under this hybrid design, after initial mining with Proof of Work is completed, the Proof of Work consensus mechanism does not affect for a long time.

USDEX Proof of Stake is the available unique consensus mechanism, thus providing security, environmental friendliness and competitive with transaction fees lower than peer-to-peer cryptocurrency. In USDEX, Proof of Stake is the core consensus mechanism used to deal with transactions

USDEX COIN MINTING

While in the Proof of Work algorithm, the generation of new coins is called “coin mining”, for Proof of Stake algorithms, the process is called rewards. The USDEX is set to generate a new block in average every 30 seconds with a reward per block of 0.0002 USDEX. That translates to roughly 0% inflation per annum. This approach ensures that the new coins issued in circulation are kept in tight check as to not affect the existing coin owners and to preserve the stability of the network. The total number of coins mined in the Proof of Work initial distribution phase is 1.75 billion and will be distributed to future coin owners according to internal rules.

The USDEX Coin Minting works by locking your coins in your wallet and using these locked up coins as a node that you are trustworthy. The more coins you are actively staking, the bigger your weight is in the network, the more coins you are earning from staking.

USDEX selects the method of coin age, nodes are based on the time that USDEX coin is kept as a share. The coin age is calculated after 1 day (24 hours) multiplied by the coins that are held as shares, which enables to prevent nodes with majority of shares from dominating the blockchain. If a node does not want to continue staking again, shares and rewards will be released later so there are no fake blocks on the network.

USDEX ECOSYSTEMS

The USDEX addresses individual stakers with an integrated mechanism to increase values through the consensus of Proof of Stake - the algorithm beneficial to their stakes is guaranteed by blockchain technology. The theoretical ROI is 8.6% per year, depending on the amount of USDEX staked, the real-world ROI is expected to be around 5-6% per year.

USDEX trading floor ecosystem helps connect with the number of traders participating in USDEX ecosystem, exclusively supplying USDEX Coin market, which will create great liquidity for USDEX ecosystem and helps USDEX coin easily exchange with other currencies without bitcoin

https://usdex.co