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Cryptocurrency is the future and has many advantages over fiat currency. Its decentralized arrangement and almost instant transactions make it in theory a more effective payment however, cryptocurrency has yet to infiltrate the general population. This isn’t a worry to the technology yet as the concept and implementation has been around less than 10 years but those who have joined its ranks need to start taking forward the idea and improving it in as many ways possible. I’ve identified main aspects to the cryptocurrency model that, If solved, could really drive cryptocurrency into the mainstream system.

Banks are the most successful financial institutions of the modern day. The 3 aspects which attract people to a bank are:

Reward

Promise of interest is a popular ploy to attract customers. It creates the illusion of the owner making money when in actual fact it generally cancels out with the rate of inflation. Cryptocurrency has already developed POS (Proof of Stake) which is a good alternative and can be set up to provide the user with modest gain against interest and inflation.

Usability

Banks are everywhere and everyone uses them. There are cash machines everywhere and funds can be accessed with internet banking too. Banks have managed to find a way into every possible

market to improve usability for the end user. Cryptocurrency still has a way to go in this department. Bitcoin ATM’s have started to appear but easy to setup and use wallets for an inexperienced user are yet to be fully developed. Users have to wait sometimes days even weeks for the more established currencies blockchains to be downloaded and purchasing bitcoin in the first place is rarely an easy affair.

I propose that along with providing a user with a wallet, we should also provide a cloud “computer” similar to amazons AWS service. Users will only have access to their own through their own computer with a few clicks and their wallet will run 24/7 without the price of electricity and means it will always be synced. These “computers” will require low processing and storage facilities to keep costs down. Users can then use an API to hook their wallet to the online based “wallet” so that the online server never actually holds any money but can be used as an easier to access go between on mobile app and PC. This increases usability and security as no one has access to anyone else’s funds. Removing the chance for a Mt. Gox incident to happen again. Its also possible at this point to implement some sort of credit card attached to this system. These features will be challenging to implement and are one of the final targets we aim to achieve.

Security

Banks provide added security to its customers in the fact that they can refund money if sent to the wrong place. Cryptocurrency by default is decentralised and means no one has the power to act in that sense. They also provide insurance in the case of mass theft of money from its customers.

I propose 2 ways to add to cryptocurrency security:

  1. Ensuring goods and payment are received.

The general use of money is payment for goods. In a scenario in a shop transactions on a mobile can be done there and then. The payment can follow a process of payment then receival of the goods as the goods are there in person and there’s no added risk to a normal transaction in this scenario. A Bank’s main use comes in business and trading where delivery and deals across the world are taking place and a person to person transaction is not an option. Trading and Business transactions are a large portion of all bank transfers that take place and if we can tap into that market, the flow of cash through Cerium will increase significantly.

I propose a setup similar to government procurement process in which the goods are received before the payment. The process is as follows:

  1. The deal is agreed.
  2. The buyer sends funds to the suppliers address using “Secure Send.” In secure mode, the funds are taken to a go between address created by nodes. It is locked in and can only be sent to the suppliers address or back with the suppliers approval. Suppliers must register to use the system so they are verified and can be held accountable for any mistakes a supplier can make.
  3. The buyer receives the goods and informs the nodes that the goods have been received and the funds are released to the supplier.

In the case of Goods are not received: the buyer informs the holding address and supplier that the goods have not been received, a supplier must send goods in a way with records and proof it has been sent (recorded delivery) The supplier then has 30 days to rectify errors with delivery and funds are sent automatically to the supplier. Buyers can submit a complaint to cerium who will investigate the circumstances. If suppliers are found to be unfulfilling of the agreement, they are subject to a three strikes policy. The supplier will be subject to checks before being allowed to enter the system as a supplier. There will be a publically accessible data base ran by the coin team who update vendors. This is the only official list of safe suppliers.

  1. In the case of theft of funds

Banks are safe places to store money generally and will even reimburse their customers in the case of theft. Cryptocurrency needs to have an answer to this instance because otherwise the average customer will not feel safe leaving funds in the system.

If a user wishes financial security similar to a bank in the case of theft then they must sign up and go through identity checks. The user will then be provided with an address to send their funds to. These addresses will have 100% one off stake rate which can be used to back up funds. These addresses are held by Cerium and will only be accessed in the case of theft. In the case of a

Theft, investigations will be held and if proved funds were stolen they will use the secondary address to reimburse the loss at no extra cost.

This system should provide the simplicity and security needed for a cryptocurrency coin to progress into the everyday use cycle that banks have dominated. There is a fair amount of effort required to create this system but once the system is up & running it doesn’t require much more to maintain. This system provides the core idea of cryptocurrency & allows people to be the holders of their own money and also progresses the world into a modern payment method which they can trust.