About Ferrite Core - koh-gt/ferrite-core GitHub Wiki
From pages 3 and 4 of Ferrite Core Whitepaper - under review
What is Ferritecoin
Ferritecoin is a proposed cryptocurrency that aims to optimize transaction speed in peer-to-peer electronic cash systems. It is designed to eliminate the need for a trusted third party and to prevent double-spending through the use of digital signatures and a proof-of-work mechanism using hashing algorithms like SHA-256 and Scrypt, similar to Bitcoin and Litecoin. Ferrite aims to create an ongoing chain of immutable timestamped transactions, with the longest chain generated by nodes with the largest pool of mining hashrate being seen as evidence of the sequence of events.
The network is designed to require minimal structure, with messages being broadcast on a best-effort basis and nodes being able to join and leave the network at will. Ferrite also features the MWEB protocol for untraceable and anonymous transactions of coins through transaction shuffling and merging.
Additionally, messaging layers like Ferritext can be implemented on-chain to distribute and synchronize complete backups of chat histories, creating an uncensorable text messaging system.
Design of Ferritecoin
The design of Ferritecoin includes several key features:
- Utilitarian: Designed as "bad money" under Gresham's Law, intended for common use as currency.
- Anonymous Transactions: Implements MimbleWimble (MWEB) from Litecoin and Monero for better anonymity and fungibility of coins.
- Plentiful yet Rare Supply: Positioned as the base metal to Litecoin's silver and Bitcoin's gold, with a total supply of 60.22 million, larger than Bitcoin's 21 million but smaller than Litecoin's 84 million.
- Practical: Features a block time of 60 seconds, with a scalable block size for processing larger amounts of transactions per block. Implements new DGWv3 DAA from Dash for stable block times even with heavy transaction volume.
The motivation behind creating Ferrite Coin includes addressing challenges in existing cryptocurrencies, such as overly inflated prices and low confirmation times. The project aims to create a faster, better coin for learning and experimentation with cryptocurrency, without worrying about financial aspects, and to provide a coin with a fair start and zero premine.
Funding
Funding for Ferrite is raised without a premine or instamine. The creator benefits from being the earliest to collect coins while costs are low at an early stage, and large holdings can be obtained when most users sell their coins upon initial listing, reducing the price. Additionally, funding comes from the community through crowdfunded donations, further supporting the development and growth of the project.
Scalability
In terms of scalability, Ferrite aims to provide faster, more efficient, and secure transactions compared to existing cryptocurrencies. Ferrite coin uses custom transaction fees to adjust fees during times of increased block congestion, ensuring smoother transaction processing. Ferrite also implements Segregated Witness (SegWit) and Taproot technology for scalability, as well as MWEB for transaction anonymity and privacy. These features have been integrated since the genesis block, ensuring that the coin has had these capabilities from its inception.
Difficulty algorithm hardfork
Ferrite will be undergoing a switch in Difficulty Adjustment Algorithm (DAA) at a certain block height, reflected in the hardfork version v3.0.0 launched on 13 Apr 2023. Late upgraders will not lose their coins; their coins on the Ferrite chain will be spendable once they port their wallet to any wallet newer than v3.0.0.
References:
Gresham's law – economics. Encyclopædia Britannica. Litecoin Whitepaper. Litecoin Foundation. "Gresham's Law". Investopedia, Robert C. Kelly. "Premining". Investopedia, Adam Hayes.
Transaction reports:
It has often struck our notice that the course our city runs Is the same towards men and money. She has true and worthy sons: She has good and ancient silver, she has good and recent gold. These are coins untouched with alloys; everywhere their fame is told; Not all Hellas holds their equal, not all Barbary far and near. Gold or silver, each well minted, tested each and ringing clear. Yet, we never use them! Others always pass from hand to hand. Sorry brass just struck last week and branded with a wretched brand. So with men we know for upright, blameless lives and noble names. Trained in music and palaestra, freemen's choirs and freemen's games, These we spurn for men of brass...
The Frogs by Aristophanes (405 B.C.E.)