WHITEPAPERRevision 1 / June 8, 2017 ContentsWHITEPAPERContents1. Introduction2. Key technologies2.1 Proof-of-stake2.1.1 Comparison of POW and DPOS2.1.2 Encryption2.1.3 Blocks and block creation2.1.4 Coins and forging process2.1.5 Nodes2.1.6 Transactions fees and processing time2.2 SegWit2.2.1 Overview2.2.2 Security2.2.3 Block size and network capacity2.2.4 Malleability and Smart Contracts2.2.5 Lightning Network3. Key features3.1 Wallet3.2 Cloud mining3.3 Low energy consumption3.4 Agility and cost-efficiency4. Risks and risk management4.1 Security attacks and hard forks4.2 Inflation4.3 Centralization5. Micropayments5.1 Pay-As-You-Go5.1.1 Advantages5.1.2 Disadvantages5.2 Prepay5.2.1 Advantages5.2.2 Disadvantages5.3 Postpay5.3.1 Advantages5.3.2 Disadvantages5.4 Future of micropayments5.5 ATB Coin solution for micropayments6.ConclusionIntroductionWHITEPAPER 1PAGE1. Introduction“Imagine a technology that could preserve our freedom to choose for ourselves and our families, to express these choices in the world, and to control our own destiny, no matter where we lived or were born. What new tools and new jobs could we create with those capabilities What new business and services How should we think about the opportunities The answers were right in front of us, compliments of Satoshi Nakamoto.”From Blockchain Revolution How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott and Alex Tapscott21https// 2PAGESince the introduction of Bitcoin, blockchain technology has grown by leaps and bounds. Blockchain has allowed not only cryptocurrencies to flourish but has allowed traditional sectors such as financial institutions to utilize this technology. A sharp rise in price and usage of Bitcoin as well as other cryptocurrencies like Ethereum, Ripple, NEM, Litecoin, Dash, Monero has shown the world that the global financial system is ready for a change. The change that will take the industry to a whole new level where transparency, data integrity, and decentralization will become the main pillars of its growth.Bitcoin is the most known and valued cryptocurrency by the market capitalization. Altcoins is a collective name for all other cryptocurrencies, and they have been diluting Bitcoin‘s market share in recent times. Blockchain has been the dominant design of peer-to-peer crypto currencies. However, blockchain technology is still relatively young, and have the potential for exponential growth, leading to new offerings in the market. The ATB Coin is one of such new offerings. Its state of the art solution is built around most advanced technological capabilities of SegWit Lightning Network to deliver blazing fast, secure and near-zero cost payments to anyone in the world. It is designed to overcome well-known inefficiencies within government central banks and other crypto currencies. It induces transactions that are fully secure, private and anonymous.However, such a rapid upward trend in the popularity of cryptocurrencies came with its drawbacks that may threaten the further integration of the digital, decentralized currencies 1. Increasing number of attacks and forks2. Double spending3. Poor network security4. A limited number of available coins 5. Increasing complexity of coin mining6. Slow transaction processing7. Increasing transaction fees8. Price fluctuations9. Lack of malleability within the networkThe solution to the problems mentioned above is ATB Alternative Technology Base Coin. ATB Coin is an innovative decentralized cryptocurrency incorporating the advanced technologies that tailor the needs of primary market players - users, investors, and business owners.2Key technologiesWHITEPAPER 3PAGE2. Key technologiesBlockchain technology is the foundation of crypto currency and is the next “industrial revolution.” It is a decentralized ledger system with enhanced security, is simple in design and inexpensive to operate. This system allows for transactions to be done with complete accuracy because it is a fusion of computer peer-to-peer p2p technology, cryptography and database systems. The fusion of these technologies leads to a data-storage system that is immutable and irreversible, meaning that transactions cannot be modified after signed and added to a block chain. Deals become final, and there is no double spending. Cryptography not only utilized for encrypting messages on the ledger but is also used to sign the transactions of users and to prove these transactions are valid. With cryptography, blockchain does not require extra security solutions to protect the authenticity of operations. Blockchain‘s decentralized and p2p nature means that the ledger eliminates the need for a data-center and a disaster recovery center DRC. The result is that the ledger will always be up and running. ATB Coin incorporates the best features of POS-based crypto currencies. ATB Coins users can achieve better decentralization, transparency, privacy, and cost-efficiency in their financials. Low energy consumption, ease of use, and better network participation incentives work in line with doubled network capacity, smart contracts, lightweight wallet, and cloud mining to provide people from all over the world a worthwhile, stable, and more reliable way of handling their financial needs.Proof-of-stake / POW and DPOS ComparisonWHITEPAPER 4PAGE2.1. Proof-of-stakeThe first crypto currencies based on the Proof-of-stake algorithm, or POS, appeared in 2012 with Peercoin, followed by Emercoin in 2013, and NXT and BlackCoin in 2014. The primary objective of the cryptocurrency blockchain algorithm is to achieve the distributed consensus within the network that is secured by a significant number of nodes.POS algorithm designed as a more eco-friendly, resource efficient, and reliable alternative to crypto currencies based on the Proof-of-work algorithm, or POW, that require massive amounts of energy to maintain the proper functioning and growth of the network.Coins of POS-based crypto currencies are created through staking. In other words, all nodes in the network that possess any amount of coins in their wallet and keep the node online are automatically included in the coin forging pool and are therefore are eligible to create and sign blocks, securing the distributed consensus.In May 2017 the world’s second largest cryptocurrency, Ethereum, announced that it would make a transition to a Proof-of-stake algorithm by the end of 2017.2.1.1. POW and DPOS ComparisonAs mentioned above, the only thing that nodes within a POS cryptocurrency need to do to is to maintain the security of the network itself. Therefore one needs to have a certain amount of coins in the wallet and keep the wallet online to be eligible to earn. This mechanism eliminates the human factor in the mining/forging process and helps to avoid spending massive amounts of electricity on creating coins. It is the backbone and the most laconic property of the Proof-of-stake algorithm.Apart from the Proof-of-Stake, two other algorithms exist in the cryptocurrency world. The Proof-of-Work POS and Delegated Proof-of-Stake DPOS algorithms, which are both meant to help blockchain reach a distributed consensus and maintain the integrity of the network.3http// and DPOS ComparisonWHITEPAPER 5PAGEDistributed consensus, is a term widely used in computer science and crypto currencies. It should be interpreted as a mutual consensus among the majority of its users, on whether the data about the transaction in the last block is valid. If this is the case, the distributed consensus is achieved, and the block will be successfully signed, ensuring proper functioning of the network.If the data in the last block is false, then distributed consensus among active members of the network will not be reached, and therefore this block will not be signed, avoiding the possibility of various kinds of attacks that jeopardize the system integrity or allows for double spending.In cryptocurrencies that use POW the distributed consensus in the network is reached with the help of its active members, or miners, who need to use real computing produced by hardware to hash blocks and mine coins. Though this may seem like the most robust and true-to-life of reaching the distributed consensus, actually it leads to several serious problems1.It requires massive amounts of energy due to the increasing difficultyto mine coins. 2.Miners are required to purchase expensive equipment to survive inthe ever-growing mining market. The hardware gets outdated fast and eventually ends up at a landfill site, harming the environment even more. 3.Such system leads to the appearance of miner monopolies that tendto negatively influence the commission fees and transaction processing times and also leaves the possibility of carrying out a 51 attack.Delegated Proof-of-stake, or DPOS, is the latest blockchain algorithm which is currently used by cryptocurrencies like BitShares. In its essence, it’s very similar to POS, but it still has quite a few changes that make it different from the Proof-of-stake algorithm.POW and DPOS Comparison/ EncryptionWHITEPAPER 6PAGENetwork nodes in DPOS cryptocurrencies create coins in the same way as it is in the POS-based ones - by storing the currency in the wallet. However, all necessary decisions within the network in DPOS cryptocurrencies are pered via the results of elections organized by the members of the network.At first sight, this mechanism may look more democratic and transparent, but it also makes the system complicated, potentially less secure due to the human factor involved, and decreases the user participation rate, in this way causing centralization concerns.2.1.2. EncryptionATB Coin uses several cryptographic algorithms for purposes of ensuring the blockchain integrity and safety of its users’ coins.The first one is ECDSA, a public key cryptography algorithm, which is associated with every coin in the system utilizing a public key, private key, and signature so that every node of the blockchain can verify the coin ownership.The second one is a robust one-way SHA-256 encryption algorithm, which is included in SHA-2 family of cryptographic hash functions and is considered to be a classic in the majority of the world’s cryptocurrencies.The SHA-256 hash function is used to turn data of any size in the blockchain into a string of 32 bytes that is impossible to reverse or predict. In the case of an attack upon which some or all of such data is changed, the hash associated with this data will be changed aswell, making it impossible to create a different block of data with the same hash.These two cryptographic algorithms ensure stable functioning of the ATB Coin blockchain network where the ownership of coins can be easily verified, and distributed consensus is achieved without the risk of double spending.Blocks and block creation / Coins and forging processWHITEPAPER 7PAGE2.1.3. Blocks and block creationSince ATB Coin is a cryptocurrency based on POS algorithm, the creation of blocks is carried out through a provision of proof that the active network node possesses a certain amount of coins and therefore can participate in the generation of blocks.If the active network nodemeaning that it is a user who keeps their wallet openpossesses a certain amount of coins, it will be eligible to enter the block creation process by sending the coins to itself and proving their ownership.Selection of the creator of the next valid block is made by using deterministic randomization ulas that take both the stake size and the lowest hash value into account, therefore avoiding centralization of the cryptocurrency by not letting the wealthiest members of the network infinitely accumulate their capital.2.1.4. Coins and forging processBased on the POS algorithm, an active node of the blockchain network in ATB Coin is randomly selected. The choice is based on their stake size. The appropriate wallet will receive a daily reward or ROI for the contribution to achieving the distributed consensus.To fight the inflation and the market glut, two years after the ICO and creation of the genesis block the daily ROI will decrease twofold. The reduction in the reward by two times will be repeated every two years until the daily compensation rate reaches almost zero.As a POS cryptocurrency, ATB Coin will start with an open ICO. During the ICO anyone will be able to purchase ATB Coin tokens and also can receive a certain number of ATB Coins as a bonus. The total number of coins that are offered to the public during the ICO equals a number of coins in the genesis block, which is 50 000 000 ATB.Nodes / Transactions fees and processing timeWHITEPAPER 8PAGE2.1.5. NodesThe POS algorithm doesn’t require massive amounts of electricity wasted on hashing blocks that are used to store a large amount of data. The nodes in ATB Coin are lightweight and use SPV, standing for the Simplified Payment Verification mode, which allows users to download only a part of the blockchain relevant to their node instead of downloading the whole copy of blockchain.2.1.6. Transactions fees and processing timeIf we take an average transaction processing time in a POW-based cryptocurrency and compare it with the same metrics in a POS-based one, we shall see that the POS algorithm processes the transactions at least two times faster.Thanks to the usage of SegWit, on average each block is four-times more efficient than the regular one. On top of that, the ATB Coin network creates a new block within 2.5 minutes against 10 minutes in POW-based crypto currencies.Worthwhile to mention is that the capacity to per multiple transactions inside the ATB Coin network is just sensational in the case of using the Lightning Network protocol - a side-chain payment solution on top of the original blockchain. The Lightning Network is an ideal plat for the micropayments industry.Transactions fees and processing time / SegWitWHITEPAPER 9PAGEWhen it comes to the transaction fees, they are estimated to be at least ten times lower than those in cryptocurrencies powered by the POW algorithm. Such a significant decrease in the transaction costs is possible thanks to a lack of physical mining of coins in POS algorithm and well-balanced distributions of coins among all active members of the network.2.2. SegWitSince more and more people are currently using crypto currencies for their everyday financial needs, the overall number of transactions grows very rapidly. SegWit is created to improve blockchain scalability by increasing the block size limit thus decreasing the transaction processing time and fees. The SegWit technology also enables cution of Smart Contracts as well as of side chain solutions like L