Biut.io, Why is this Mining pool so different?

The past decade has seen the rise of startups of all kinds pitching for online territory that would put them in a position to unlock new network potentials that would allow buyers and sellers to communicate directly, while bypassing the middleman.

Most of these companies are centralized entities but the services they provide satisfy and increasing demand for decentralized exchanges. As of today most people rely on a centralized trust paradigm by which middlemen entities coordinate our monetary transactions and other exchanges, and banks to track account balances to allow strangers to conduct business.

The best crypto mining pools usually fail to deliver as they are too many smart contracts running with bad owners that allow them to take full advantage of the system by defrauding the customers.

A smart contract is basically an agreement between two people in the form of computer code. They run on the blockchain, so they are stored on a public domain and cannot be altered. The transactions that occur in a smart contract are processed by the blockchain automatically, which means there is no third party involvement.

Smart contracts contain system level smart contract and user level smart contract. The user level contract allows the user to customize the behavior of the transaction, while the system level smart contract is provided directly by the system.

I came across Biut.io cryptocurrency pool mining service a few weeks ago on Facebook while exploring the potential of blockchain to revolutionize the cyberworld of trading and security. I was looking for decentralized projects that revolved around earning interest with mining machine using a trust system and I ended up on Buit.io Facebook page.   

The interesting feature of this project is that it might be able to restore the faith that has been lacking in the cryptocurrency area ever since Dapp projects are being launched every single day with no real objective than to pump and dump. After deep research and reviewing their business model, I feel that this Mining pool can encourage cryptocurrency adoption.

Official website:Https://biut.io

What is Biut.io ?

Bit trust system is a mining pool service and a trust computer network that utilizes a a decentralized trust system to enable transactions to take place without any third party intermediary. This trust computing network is based on a peer-to-peer technology which enables C2C transactions. C2C transactions are a decentralized form of peer-to-peer technology that allow buyers and sellers to exchange commodities, cash and various other objects, without any intervention of a centralized authority with one of the public chain project on the blockchain, BIUT.

Bit trust’s system will aid in decentralized trust by helping internet users to conduct decentralized transactions and collaboration safely. They key trust issues are solved which means developers, merchants and internet will have the confidence to trade using the Bit trust system.

System Function and Operation

The system is composed of the following elements:

• Lightweight node – they are generally applied in mobile terminals and they can automatically become cellular nodes.
• Cellular nodes – which are PCs jointly responsible for maintaining the entire system.
• BIUT chain – it is used to store transaction records of the digital currency in application layers.
• BIU chain – this is used to pay, convert GAS, implement token transfer and records, and to support the smart contract system.
• Transaction chain – this is used to store information of specific transaction objects and corresponding transaction records.

For example say Buyer 1 would like to purchase BIUT from seller 1 using US dollars. When a purchase is initiated, the cellular node queries the BIUT transaction reputation value and the quotations of different sellers. Once the buyer selects the seller 1 and the transaction is initiated, the BIUT seller issues a request to the smart contract of digital currency transaction and transfers the corresponding BIUT amount to an address allocated by the smart contract. If the transaction is successful, the seller will receive the corresponding payment, offline or directly to his/her bank account. After the seller informs the smart contract that the payment has been made, the smart contract triggers the account to transfer the BIUT amount to the buyer.

In the event that the transaction is in dispute with the buyer 1 refusing to acknowledge the receipt after seller 1 has completed payment then the smart account will temporarily lock the BIU. If the seller’s account has high-activity and high-importance and high reputation value then the fee amount is withheld for dispute resolution and the associated materials of the transaction are submitted.

The algorithm will then arbitrarily select 3 BIUT credit gatekeepers, the first of which will be the designated judge in the case. If the presiding judge declares that the BIUT seller breaches the contract, and the seller does not appeal then the smart account will automatically transfer the BIUT and the corresponding fee to the buyer.

Unique Trust Algorithm

In the system, when a transaction is completed, a cellular node stores the transaction evaluation locally. When a lightweight node needs to calculate the reputation value of an account, it will extract information from the cellular node. The cellular node queries whether or not there is a new transaction or if there is a need to update the reputation value based on the records of the block.

• If there is no new transaction record, it will return to the original reputation value.
• If there is a need to update, it will first extract information of activity, importance, direct trust value, reputation value and recommendation trust value from the block. If there is no direct transaction record between the two accounts it will rely on the recommendation trust by the system and algorithms to calculate to recommend trust value.

The activity and importance of a seller’s account has an overall importance throughout the system. In the activity algorithm and the importance algorithm, there are factors such as guarding against sybilattack, the higher value of activity and importance of an account therefore, the less likely it is to default in the transaction, which also applies to buyers.

This will make it extremely hard for users to fraud innocent victims by first assessing each address and importance. This also leaves the only security loophole being the device of the user and even then, the payoff does not equal the effort.

BIUT will use two internal functions to insure that trust is properly assessed as each transaction is executed.

1. BIU chain – this chain is used to maintain the block generation and security of the transaction chain and BIUT chain. Sometimes forking might occur in the BIU chain which is when two different blocks are generated from the same parent block due to a network delay but it can be solved in a similar way to Bitcoin.

The logic behind the algorithm to solve this is as follows:

• When node A receives a new block it compares the block height and if the height is less than or equal to node A, then the block is directly discarded.
• If the height of the block exactly equals node A’s blockchain length, the block is added directly to its own blockchain.
• If the height of the block is greater than node A’s blockchain length, node A will directly request all excess blocks to the node which sends the block.

2. BIUT chain: Is used to store the transaction records of the digital currency BIUT (credit) used by the storage application layer and the block record of BIUT chain is used for the importance algorithm to calculate importance degree. The credit currency is the payment currency of the transaction chain but is also a measuring tool for the reputation value algorithm on the transaction chain.

There are many participants in the public chain, investor communities, users, developers. With the traditional model, the token consumption was large, which is not conducive for the ecosystem expansion but with BIUT design, all the benefits to the participants have been taken into account so that the model can balance the benefits to the participants.

PGPoW combine model

At the network level, the system consists of lightweight nodes and cellular nodes only while at the logical level, the system has a large number of autonomous domains and each domain contains one transaction only.

In order to maintain the enormous amounts of transaction chains, such as package validation and on-chain storage for each transaction chain, the node community consists of a large quantity of cellular nodes. In this way the node community solves calculating force for maintaining large quantity of transaction chains and the generation of new blocks in BIU chain.

The new blocks in the BIU chain are generated by the rotation of node communities. If the system is divided into nodes from 1 to 10 node communities then new blocks will be generated by these nodes in sequence and after a round-robin cycle, they will vote for another round of division of node communities.

Each node community is generated through the voting of cellular nodes and the process is as follows for a node community of 1 to 10:

1. Each cellular node generates a random number x for each adjacent node
2. Each cellular node will get the votes from the adjacent nodes and the most votes collected will be operated. the result of this is the mark number of the node community which the node is in.
3. The cellular nodes that that obtain the same node community mark number belong to the same node community.

The above mechanism is done in order to avoid cheating during the voting process. After each round-robin is completed the system automatically divides the node communities for another time.

Multiple Chain Frameworks

The blockchain is a decentralized system in which any data is traceable, transparent, and unalterable to the public. It does not need a server for storing transaction information and its encryption mechanism ensures the high security for storing users’ addresses and private keys and selectively encrypts the transaction information which protects the users’ privacy during the transaction process. In the system, multi-chain parallel structure is adopted which is divided into transaction chains, BIUT chains and BIU chains. The transaction chains each have their own autonomous domain.

The system adopts a modular design which consists of the multi-structure chain; asymmetric encryption algorithm, trust-related algorithms and functions, system level and user level smart contracts, consensus algorithms and data structure all adopt modular decoupling designs which are great when it comes to scalability.

The system utilizes JSON format and RLP encoding method to process and store block information. The JSON is a data exchange format with simple and concise structure that is easy to be analyzed and generated by the system which is beneficial to improve transmission efficiency.

The system adopts protogenetic RLP code from Ethereum project that the code format conforms to the system design objective. The RLP code can be nested in binary arrays of arbitrary length, specifically for data processing of list structures. This method of data storage and format has the following advantages namely;

• The structure is simple and concise and can understand data structure by analyzing a prefix of a few bytes.
• It can easily ensure absolute byte expression and consistency.
• It provides an explicit sequence of value maps.

How does crypto mining work?

Cryptocurrency mining includes two functions, that is to say: adding transactions to the blockchain ( securing and confirming) and also releasing new currency. Single blocks added by miners should contain a proof of work. As of today anyone with a computer and steady electrical supply can manufacture coins by connecting to the mining network. Essentially the coin is produced as a reward to the miner who adds his PC to the node of other PCs after solving a series of computer mathematical problems.

In the recent years, Ethereum and Bitcoin have been the two main cryptocurrencies that have centralized the mining operations. This is such as to an extent that the top four miners in bitcoin and the top three miners in Ethereum accounted for more than 50% of the overall hash rate for those two cryptocurrencies.

What real world application does BIUTO have?

BIUT is based on decentralized C2C transaction application and extends to peer-to-peer businesses such as crowdfunding, social e-commerce, sharing economy and P2P finance.

BIUT has the potential of becoming the basic platform for implementation of decentralized trust, helping internet users conduct decentralized transactions and collaborate safely. This system can solve key issues trust reconstruction in the new economy.

This will encourage mass adoption of cryptocurrency by creating a safe transaction environment.