QWERTYCOIN [Ticker: QWC] is a digital cryptocurrency designed for everyday use. It supports simple CPU/GPU mining and masternode operations, Desktop / Mobile / Web wallets are provided for user’s accessibility to QWERTYCOIN across multiple platforms.

FEATURES

• Anonymous, Unlinkable and Untraceable Transactions - Based on CryptoNote V2.0 Technology over a decentralized network.

• Egalitarian Proof of Work (EPoW) – Manipulation proof PoW consensus with CIMA + CLIFF difficulty algorithm. First in the world.

• Egalitarian Proof of Stake (EPoS) – Hybrid PoS and dPoS consensus.

• Egalitarian Proof of Service (EPoSe) – Ultimate consensus combining EPoW and EPoS.

• Reserve Requirement System - Development fees and donations collected over time will be stored in QWERTYCOIN Foundation.

• No Pre-mining - Community owned system and transparent developments and operations.

• Free Master Nodes - No mandatory minimum coin commitment to run Master Nodes.

• Free Community Faucet – Free QWC every 24 hours from community donations.

• Transparent Operations and Management – All accounts run by community funds can be monitored using tracking keys.

TECHNICAL SPECIFICATIONS

• Total Number of Coins: 184.47 Billion

• Current Target Block Time: 120 seconds -> 20 seconds

• Time for Transaction Hashes: Instant (<4 seconds)

• Core Design: CryptoNote V2.0 – Forked from Bytecoin, Monero + Karbowanek + Digitalnote and Qwertycoin V1.0

ULTIMATE PROJECT GOALS

• Development of User-Friendly Wallet Software for Desktop/Mobile Computers, Web and Mobile Phones

• Q-Life app with chat + wallet + crypto exchange + store locator

• Robust Network (< 50 PPM Blockchain Split) with Blockchain/Network Monitoring Tool for all users

• Network Explorer feature that allows monitoring of blockchain

1. Introduction

2. Credits

3. Vision

Qwertycoin (Ticker: QWC) is an open source project for creating a decentralized digital asset, like Bitcoin.

It is based on CryptoNote Technology V2.0. Nobody owns or controls Qwertycoin except its users. It allows anonymous and trustless peer to peer transactions through a fair PoW mining algorithm and will implement EPoSe, a new consensus algorithm concept exclusive to QWC.

Qwertycoin transactions are safe, reliable, untraceable, unlinkable and your privacy is protected. Mathematics secures the QWC network and empowers individuals to control their own finance and information.

Official Links:

Github Source Code: https://github.com/qwertycoin-org Bitcoin Talk Thread: https://bitcointalk.org/index.php?topic=2881418.0 Daemon Download for Windows, Linux and MacOS: https://github.com/qwertycoin-org/qwertycoin/releases Desktop Wallet(GUI) Download for Windows, Linux and MacOS: https://github.com/qwertycoin-org/qwertycoin-gui/releases Desktop Wallet(ZERO) Download for Windows, Linux and MacOS: https://github.com/qwertycoin-org/qwertycoin-zero/releases Web Wallet: https://myqwertycoin.com Cross Platform SPV(Simplified Payment Verification) Mobile Wallet for Android: Under development. Cross Platform SPV(Simplified Payment Verification) Mobile Wallet for iPhone: Under development. API Endpoint Mobile Wallet for Android: https://play.google.com/store/apps/details?id=org.qwertycoin.wallet&hl=en_US API Endpoint Mobile Wallet for iPhone: Under development. Explorer, Node List, Pools: https://explorer.qwertycoin.org Master Node Map: Voting Platform: Online Guides:

Community Links:

Telegram: Facebook: Discord: Twitter: Reddit: Medium:

Support & Contact Information:

Telegram: Email:

This section provides information about QWC Core Team members and contributors. This section is to be revised periodically and previous core team members and significant contributors shall remain as well.

• Reliable, fast and easy to use / user-friendly blockchain service

• Decentralized development from crowd efforts and funding

• Privacy protection for the members of its network

If you believe that changing the mining algorithm will make our ecosystem more egalitarian, communicate with developers and the community. This topic must be voted unless current implementation poses a technical/commercial threat to the community or the project.

Please go back to the introduction section to find a proper link for communication.

Currently, QWC uses an online voting system here.

The notion behind our voting system is not about equal right for everyone. It is about how much members are willing to spend on decisions they want to influence. So yes, you will have to spend your coins to voice your opinion and there is no minimum nor maximum number of coins one can vote.

This type of voting is more democratic because the power that can influence decisions does not stay within one person or group over time. Everyone has to earn the rights.

QWC team (a centralized body that consists of a group of people who volunteer to provide services) reflects the decisions of QWC community through a community voting system. All QWC members can participate in making community-wide decisions.

Consolidation is a solution for the wallet-side scalability.

Consolidation is a wallet feature that will literally consolidate all the UTXOs(Unspent Transaction Outputs) from previous incoming transactions to a smaller set (preferably one set if continuously consolidated) of outputs without changing the balance in the wallet.

The benefits of consolidation are: 1. Transaction size: a single transaction with the amount of 500 million QWC is about 4kb. Now users can send a large number of coins without tx size limitation when and if necessary.

2. Synchronizing speed: wallet is no longer required to scan all the way back to the first transaction of the wallet address. The height of the first confirmation of consolidation transaction becomes the starting point of the wallet sync.

3. Reducing server load: by reducing the dependency, the server operates more efficiently.

The consolidation feature shall be considered a network-wise movement from users for solving the scalability issue, just as Genesis Reference Block(GRB) is for the node-side within public blockchain projects.

Long Term Staking (LTS) is structure-wise identical to Time Locked Transaction (TLT).

LTS transaction amount is reinstated to the original sender's wallet after a designated time or block height.

This feature does not yield an interest. It only serves the purpose of minimum deposit for EPoS staking.

GRB is a solution for the node-side scalability. The purpose and the design of GRB is written in the original white paper. GRB is the fundamental component and function for Web3 environment.

The details will be revealed after completion.

Time Locked Transaction (TLT) is a preliminary work for smart contract implementation.

These TLTs will take place on a different mempool from the one we are using for normal transactions.

This is how it works.

1) User A creates a TLT(X) to User B and TLT(X) will not be included in a block until a certain time is passed.

2) Unlike normal transactions User A can cancel TLT(X) by creating a negative transaction ex) -TLT(X) before the designated time condition is met.

3) If there is no cancellation of TLT(X) until the designated time condition, TLT(X) will be moved to the mempool used for normal transactions. At this point, TLT(X) becomes irreversible.

[Figure 6. Block Reward Adjustment using consistency]

Area A: An area where miners can take more coins per second if find a block within 120 seconds. Area B: An area that is bound by CN block reward scheme after 120 seconds of mining. No matter how long it takes for miners to find a block, the block reward stays at the level before 120 seconds.

Area C1 - C6: An area where block rewards will increase after 120 seconds of mining. The current block reward algorithm is set to adjust the consistency factor using a power of 1/4.

Y-axis represents consistency. If consistency is equal to 1, that means the reward is equal to design block reward, which is decreasing every block.

To demonstrate the changes, the same data set was used from the example of manipulation under CN block reward scheme.

[Table 2. An example of mining rewards based on EPoW block reward algorithm between block 500,000 and 500,019]

In [Table 2], EPoW Reward column shows an adjusted base reward for each block from the introduction of ‘consistency’

The maximum value from [Table 2] under EPoW reward per second is consistently at 1,132 QWC when mined less than or equal to 120 seconds and the lower bound is at 370 QWC.

The maximum value from [Table 1] under actual reward per second is at 10,449 QWC and the range of reward per second when a block is mined less than or equal to 120 seconds, is between 1,132 QWC and 10,449 QWC, while the lower bound is at 295 QWC.

The CN block reward scheme is now fully protected with the application of consistency because it controls the coin emission consistent over time even after providing additional rewards for extra efforts by miners if solve time for a block increases beyond the full grant zone of 120 seconds.

The standard CN block reward schedule is calculated using the following formula:

• Block Reward = (Total Supply of Coins - Already Generated Coins) / (2^emission speed factor)

In the mathematical expression,

• BR = (T - A*(10^(number of decimals))) / (2^19) / (10^(number of decimals))

For example, let's try to calculate the block reward of the genesis block. - T = (2^64) - 1 = 18,446,744,073,709,551,615, a constant - A = 0, This is a genesis block, a varible - emission speed factor = 19, a constant - number of decimals = 8, a constant Block #1 (18,446,744,073,709,551,615 - 0) * (2^-19) * (10^-8) = 351,843.72088832 QWC For the next block, The calculation is as shown below Block #2 (18,446,744,073,709,551,615 - 35,184,372,088,832) * (2^-19) * (10^-8) = 351,843.72088831 QWC Block #3 (18,446,744,073,709,551,615 - 70,368,744,177,663) * (2^-19) * (10^-8) = 351,842.37871104 QWC Block #4 ... and so on.

The block reward decreases continuously until it reaches a point of tail emission, which is a constant number.

[Figure 5. Block Rewards and its reduction up to Block Height 2,000,000]

You can also download an excel calculation sheet for from Qwertycoin Github repository.

CLIF dropped difficulty over time until miners are able to find a block within the 120-second interval.

The X-axis represents each block height, so it does not show how long it took to find the block after CLIF is triggered.

After CLIF adjusted difficulty, the miners were able to find blocks after a short downtime. There was no interference from the core team to offset the stagnation from the 800X attack.

QWC introduces a new block reward algorithm that utilizes a time-based factor called 'consistency'. This factor is multiplied to a standard CryptoNote(CN) block reward equation in order to adjust block rewards.

The block time between two adjacent blocks by default is 120 seconds.

If miners find a block less than 120 seconds, the value consistency is less than 1. If miners find a block after 120 seconds, the value of consistency is greater than 1. If miners find a block at 120 seconds, the value of consistency is 1.

The value of consistency can change between 0.08 to a maximum of 2.00.

Now, let's take a look at how rewards change with Consistency under EPoW. Case 1) If the block time between block #1 and #2 (timestamp of #2 - timestamp of #1) = 80 seconds, the value of consistency is 80 sec / 120 sec = 3/4 = 0.75.

The block reward for finding block #2 will reduce by 0.75X. Please find the method used to calculate block reward for block #2 .

This changes the block reward of block #2 from the original reward of 351,843.72088831 QWC to 351,843.72088831 QWC x 0.75 = 263,882.79066623 QWC.

FATF stands for Financial Action Task Force and is an intergovernmental organization that provides financial policy recommendations to combat money laundering activities including terrorism financing.

We strongly advise our users not to make transactions for such activities. Please use fiat cash for that.

FATF recently announced a recommendation; travel rule for cryptocurrencies. They realized that they cannot exercise control over blockchain so they announced a traceability guideline for cryptocurrency exchanges.

FATF's travel rule requires exchanges to perform KYC and store all transactional information for audits, taxes and also to prevent money laundering.

(i) originator’s name (i.e., the sending customer); - KYC @ exchanges (ii) originator’s account number where such an account is used to process the transaction (e.g., the VA wallet); - transactional information (iii) originator’s physical (geographical) address, or national identity number, or customer identification number (i.e., not a transaction number) that uniquely identifies the originator to the ordering institution, or date and place of birth; - KYC @ exchanges (iv) beneficiary’s name; and - transactional information (v) beneficiary account number where such an account is used to process the transaction (e.g., the VA wallet). -

The core team will update this section as more ideas become solid towards establishing EPoS. One thing that is sure at this point is that EPoS will be a hybrid form of Proof of Stake(PoS) / delegated Proof of Stake (dPoS).

There are a lot of similarities between PoW and PoS in the structure of their ecosystem.

For example, there are two distinct groups in PoW ecosystem; solo miners and pools with miners.

Miners can choose how to mine depending on their hash rates. Group A) For a miner with high hash rates, solo mining is the best option. Group B) Miners with smaller hash rates have a better chance of finding a block when they collectively gather their hash rates together to find blocks in pools.

In PoS, there will be two groups of participants like PoW. Group A) Individuals with enough coins can run a staking masternode. Group B) Individuals with insufficient coins to run a staking masternode, willing to delegate their stakings to a particular node. The purpose of such delegations is for nominating a master node collectively with enough stakings to acquire a masternode status, similar to how a pool can find a block with a group effort of smaller miners.

Pruning allows nodes to stay light in terms of storage space, improving scalability of the blockchain.

This is not a permanent solution, but it does help general nodes to shave off space and improve the node's sustainability in the network without increasing the processor speed or storage space.

The original implementation took place in bitcoin repository and it has propagated to other core development projects.

CLIF stands for Critical Level Impediment Failsafe. Yes, it sounds similar to the word "cliff", and this DA is supposed to do just that. Drop difficulty. It is an algorithm that is triggered when a long interval is detected between the last block time and the current block.

So why do we need CLIF and what does it do?

As mentioned, CIMA + Consistency already protects the blockchain from individuals with malicious intent to get block rewards by using massive hash rates. Yet, it still does not solve another vector of attack, stalling the network itself.

Although miners with large hash rates cannot gain profits from attacking QWC blockchain at all (an example), attackers with the sole purpose of sabotaging the blockchain can increase the difficulty and drop out at any moment.

This creates a huge gap between blocks and halts the operation of blockchain for a long time. As a result, honest and long-term miners and wallet users are negatively affected.

Depending on the duration and the magnitude of attack(s), the previous solutions were; 1. A certain amount of mining power is rented from NiceHash like services to lower the difficulty. 2. Just wait long enough until a future block is found.

What improvements does CLIF bring to crypto-space?

This type of difficulty adjustment was not possible because 1. such action exposed the network's block rewards to centralized groups and influential miners. 2. the conventional DA(difficulty algorithm) is simply incapable of reacting to such an event due to the inherent nature to forecast the future from historical data.

Now that we have the protection of reward from attackers, implementation of CLIF is possible.

When triggered, a new block template is issued with an adjusted difficulty to allow miners to find blocks within a short period of delay. The timing of the trigger is designed so that the amount of work versus reward yields the best consistency.

CIMA + CLIF + Consistency = A stainable self-adjusting EPoW blockchain = QWC

Stage 1: Currency Application Development (2017 – By the end of 2019) - All Complete

• Daemon Development and Optimization

• CLI Wallet / Desktop Wallet Development and Optimization

• Web Wallet / Mobile Wallet Development and Optimization

• E-Commerce Plug-In Integration Development

• Codebase Language Format Updated to Clang (C++ Linting)

• Known bugs for Qwertycoin software and CryptoNote codebase are being patched and fixed.

• Redundant and unused codes were removed.

• C++ Cross-Compilation Dependency Manger [Hunter/Polly]

• Codecov Implementation for Code Coverage

• Travis CI and Appveyor CI - Later replaced by Github Action.

• Automatic Github Release Deploy Feature.

• Release of Zero GUI wallet

• Release of Web Wallet and Mobile Wallet

• Multi-language support for wallets

Stage 2: Currency + Application Development (2020 – By the end of 2022) - Current Phase

• Consensus Update (EPoW Implementation)

  • CIMA (Confidence Interval Moving Average) Difficulty Algorithm - Complete

  • CLIF (Critical Level Impediment Failsafe) Difficulty Algorithm - Complete

Stage 3: Currency Ecosystem Development (2022 – 2024)

• Invitation/Integration of Existing Commerce Applications

  • Commercial Chat Service (Wallet + Chat)

  • Email Service (Email + Account Alias)

• Commerce Integration Optimization

Stage 4: Application Development and Deployment (2024 – Continuous)

• Search Engine + Desktop/Web/Mobile Wallet

• Activation of Local Fiat Currency Exchange (Stores)

• Business Applications

The core team has tested CIMA + Consistency and their performance up to 800X attack case scenario.

The overall summary of this attack is: #1. QWC is designed to produce 720 blocks within 24 hour period. This is equivalent to 30 blocks per hour. #2. The attack lasted for 16 hours in time and the attacker found 760 blocks. That is equivalent to 47.5 blocks per hour. #3. The #2 makes the situation look bad but the reality isn't. So read on.

So what about the number of coins the chain produced?

[Within 360 blocks of attack period] #4. CIMA DA reached a proper range of difficulty after 360 blocks. (We know this because it is a controlled environment.) The duration of these 360 blocks was 10,608 seconds, 176.8 minutes. #5. This 176.8 minute is equivalent to 88 block time with some safe margins. So the attacker found an additional 280 blocks beyond the system design. #6. Within the range of block heights where the test was conducted, the average block reward was 347,500 QWC per block. #7. Without CIMA+Consistency, the attacker would have received a minimum of 125.1 million QWC for 360 blocks. This could scale to billions of QWC in the worst-case scenario. #8. With CIMA+Consistency, the attacker found 360 blocks, yet the algorithm released 28.9 million QWC for 360 blocks. #9. If there were no attacks or the hash rate was consistent, the network would have found 80 blocks within the same period of time and released 30.7 million QWC for 88 blocks.

[After DA reaching a proper range of difficulty] #10. Within the range of block heights where the test was conducted, the average block reward was 347,500 QWC per block. The duration of these 400 blocks [760-360] was 48,289 seconds, 804.8 minutes. #11. This 804.8 minute is equivalent to 402 block time with some safe margins. So after DA adjustment, the block time was consistent with the system design. #11. With CIMA+Consistency, the algorithm released 97.9 million QWC. This is due to of Consistency. #12. If there were no attacks or the hash rate was consistent, the network would have released 139.0 million QWC.

The miners are now incapable of breaking the ceiling value of emission...completely and forever. There is no additional gain on rewards from launching a majority attack to QWC network.

Now, let's assume that you have or can rent a massive mining power and reading this part of whitepaper wanting to mine QWC. What is your choice? Attack or not?

Let us give you an example of how miners and mining pools have taken advantage of CryptoNote original block reward schedule.

In [Table 1], the column 'Base Rewards' column is the design block rewards for miners for each block.

[Table 1. An example of mining reward based on original Cryptonight block reward schedule between block 500,000 and 500,019]

The total time miners put into mining these 19 blocks are 2,161 seconds whereas the total time for the mining 20 blocks (20 * difficulty target) is set to be 2,400 seconds. This shows that the blocks are issued at the inconsistent interval and miners are basically taking advantage of their hashing power to get the rewards in a shorter time span.

In fact, [Table 1] shows that the miners were receiving approximately 10% additional profits compared to intended blockchain design. This additional profits theoretically can range from 0.8% to 11,900.0%.

To prevent this abuse, the concept of time will be introduced through a variable called ‘consistency’. The new EPoW block reward consensus will be adjusted based on ‘consistency’ (actual mining time divided by difficulty target time).

It is important to inform our members that your registrations on exchange platforms with personal information such as ID and bank/credit card accounts will/can expose your identity and your actions and outcomes from trading activities can be subjected to applicable laws and regulations.

In the early stage, QWC experienced issues with exchanges (Octaex(China), Crepcoin Exchange(Decentralized), Altex Exchange(Decentralized)) arising from various factors such as delays or lack of support, site shut downs and service terminations, which caused damages to QWC members.

From past experience and failure to select proper exchanges for trading, the listing strategies for QWC are the followings:

• To have as many trading pairs as possible across multiple platforms

CIMA stands for Confidence Interval Moving Average. This difficulty algorithm('DA', hereinafter) takes the basic form of moving average techniques in statistics. Normally 95%-98% confidence interval is chosen for statistical analysis.

The percentage figure used in CI stands for the range of distributions of the values, which are normally within the confidence interval range from a mean value of the sample population. The percentage value does not necessarily represent that the future samples are likely to be within that specific interval range.

QWC's CIMA DA currently uses a 68% confidence interval and this selection of 68% CI to allow DA to adjust more quickly from valid sample data.

Within a range of 30 block time, equivalent to 1 hour, a sample mean(1), and the standard deviation is calculated.

We filter out those samples with a value that lies outside of mean +/- the standard deviation range. We treat those values outside of the 68% CI as outliers.

We then re-calculate the mean(2) of the filtered samples. We consider the mean(2) a true mean value. If the values of the samples are within a range we consider 'consistent'(remember we used the notion of consistency in our reward algorithm), the difficulty for the next block will stay the same.

QWC blockchain project is an open-source project and is driven by community members. Anyone can join and support the network and get coins as compensation to their support through mining.

CryptoNote Technology V2.0 has a built-in block reward system called ‘emission rate’. It is a shape of log function and, because of its original design, QWC block rewards will reduce by each block and eventually reach a point called ‘tail emission’.

QWC has an emission factor of 19. Please refer to the below graphs to see how block rewards are reduced over time.

The default equation for calculating block rewards for CryptoNote is as follows:

Max. number of coins = (2^64) - 1, Number of decimals = 8, Emission factor = 19

Block Reward (or Base Reward)

= {((2^64) -1) - (already_generated_coins*10^(8))}*2^(-19)*10^(-8)

[Figure 1. Total QWC in Circulation per Bloch Height]

QWC introduces Egalitarian Proof of Work (EPoW) for the first time in blockchain space for protecting the blockchain from the well-known majority attacks and double-spending. This is also the first step towards EPoSe consensus.

The core team found fundamental flaws in the original CryptoNote Proof of Work because it allowed miners, especially influential groups of miners, to get more coins. Also, difficulty algorithm (DA) was not carefully designed to cover many different cases that changed since CryptoNote whitepaper was released.

QWC's EPoW greatly improves Byzantine Fault Tolerance in PoW consensus.

EPoW reward algorithm is designed so that any forged extra time posted by a malicious actor is rather penalized for every second compared to issuing a new block with the shortest timestamp for the next block. There are simply no incentives for malicious actors to do this.

We will simply state it this way; don't cheat on mining and you will get the maximum rewards you deserve.

As with any other blockchain technologies, QWC block height will increase over time, which also results in the blockchain data file growing continuously in a linear trend. With a block time of 120 seconds and 1 MB block size, QWC blockchain size can potentially increase close to 4 TB at a 99.95% QWC circulation rate. Even after considering the storage capacity of the consumer PC market is currently averaged at 500GB, the size of full blockchain data can be a problem for new users of QWC blockchain.

Eventually, the users of desktop wallet software are expected to connect their wallet software through remote nodes to reduce the percentage of their local hardware resource usage, while having an option to download the complete QWC blockchain data and sync in their local computers.

QWC team also realizes that

1. Block rewards against energy consumption for EPoW mining process will become inefficient for the network and harmful to our environment in the later stage of QWC blockchain.

2. Mobile wallet applications will require remote nodes (without downloading the blockchain file) for transactions.

Therefore, it is inevitable that QWC blockchain to shift from individual miners(EPoW) to competent node operators(EPoS) as more coins are mined towards QWC’s maximum supply limit of 184.47 billion and the adaption rate of mobile wallet application increases over time.

[Figure 7. Blockchain Size per Block Height]

[Figure 8. Blockchain Size per Date]

The appropriate timing for this transition is to be decided by the community members. In this paper, proposed timings for this change are provided in [Table 3] and [Table 4] for our members to make informed decisions.

[Figure 9. Expected Block Rewards Emission per Date]

[Table 3. Expected profitability from EPoW under ASIC mining environment and Transition timing proposal from EPoW to EPoS]

For those developers of other cryptos.. stop copying without giving a proper credit. I see already two CN coins or maybe 3 cheating all the time. Shame on those copies. Implementations are poor and they did not think through. The end realization is incomplete and they jump on to something else to create just hypes. No real work there. Just using names and terms does not make them right. Funny, right?

QWC’s EPoSe is the first that introduces a consensus that recognizes all network contributors and has attributes to proportionate rewards based on their services as well as optimizing all levels of services to the latest regulatory and technical standards.

The conventional structure of Proof of Work (PoW) or Proof of Stake (PoS) allows individuals either in single or in a group to have massive power over the blockchain’s consensus. This is called ‘centralization’. These types of consensus may seem appropriate in our free-market world because Return-on-Investment (ROI) must be satisfied or foreseeable in order to bring more attention on board and invest time and money for management and equipment respectively.

The major service groups in QWC network are divided into developers, community managers, mining pool operators, and public node operators.

For codebase and community development, a certain percentage of block rewards shall be reserved, currently set at 10% of block rewards. The activation height of this will be determined and stated in the configuration file of the blockchain. Upon activation, this information will be updated.

For miners in PoW scheme, mining pool wallets receive the block rewards initially and send out miners’ payments based on their contributions in finding the hash value. For solo miners, they receive coins in their wallet immediately. Nothing is changed in payment distribution.

What changes is the formula for determining block rewards for solo miners and mining pools? The concept of time is applied to block reward formula for their consistencies, or continued services. A sudden increase or decrease in hash rate will change the block rewards. More details can be found in the following section: Egalitarian Proof of Work (EPoW).

For node operators, we considered implementing PoS but this is also problematic because coins are emitted for circulation instead of banking them to run a particular service. In a sense, PoS is very meaningful if the staking party operates an individual service based on a staked number of coins. Since the role of nodes will become more important as more coins are emitted, a new reward algorithm for node operators will be introduced based on the concept of time.

The nodes that operate the required version of the software and served a certain period with sufficient H/W specification and speed will be nominated to become uptime nodes. These nodes will form a quorum for validating blocks and making important decisions in protecting QWC blockchain. This decision process will be coded for their autonomous actions and a certain percentage of block rewards will be provided to these nodes. To avoid any types of centralization, a group of uptime nodes will be randomly selected for the decision-making process.

More details can be found in the following section: Egalitarian Proof of Service (EPoSe - QWC Original)

The word egalitarian stands for providing equal rights and equal opportunities. It is currently free to run a QWC masternode since node reward program does not offer a staking option for providing a node.

In order for nodes to receive rewards, a node must be configured and used as a remote daemon in wallet software. Based on the number of transactions processed in remote daemon connections, Maximum 10 QWC is rewarded per transaction. [June 29th, 2018]

QWC nodes perform the following tasks in the network.

1. Holding transactions in the memory pool so that a miner can find a block with a group of these transactions

2. Verifying one-time ring signature of the entire blockchain

3. Validating correct blockchain during a chain split from PoW

4. Propagating validated blockchain to all daemons running in our network

As QWC develops and brings more traffic to our network, the performance of these nodes will be very critical to our success for the following reasons.

1. When blockchain size increases, it will take more time to synchronize with the network since desktop wallets are mostly not online.

2. Mobile wallets will always use a remote daemon feature and network sync will be instant.

QWC team believes that the existing PoS reward system is not fair since the cost of running a node can be more than its rewards for the amount of work they provide to the network, and node information is currently not available when wallet users want to choose a remote daemon. In order to change this, QWC will implement EPoSe system.

EPoSe is based on the concept of dedication in terms of service duration of nodes for their conformance, performance, and reliability within QWC network. It features a block reward program for node operators based on dedicated service time (Uptime).

There are 4 components to make EPoSe work.

1. Nodes, run by network participants

2. Sentinel, which checks the status of nodes periodically filters nodes based on conformance and performance criteria

3. Node Map, which shows geographical information of operating nodes

4. Network Explorer, which displays the network status of the node and detailed information.

Sentinel provides API of online-node information after checking node’s conformation to network requirements and the performance of its hardware and internet speed as well as 24-hour and Uptime measurements to Network Explorer(NE). NE displays information from Sentinel to allow users to select desired nodes while having the ability to check the overall status of each node. The API provided by Sentinel will be available for the selection of remote nodes.

There will be a number of conformance and performance criteria evaluations for masternodes of which the data will be identified / measured / stored / analyzed to determine nodes eligible for the rewards of accumulated transaction fees over a set period.

EPoSe reward system has following features:

1. Rewards: accumulated transaction fees, which has been traditionally awarded to miners, are switched to node operators. Depending on the current operation costs of nodes, this reward scheme will be adjusted when deemed necessary.

2. Reward Period: 24 hours UTC time

3. EPoSe algorithm functions just like mining but provides infinite rewards throughout the lifetime of QWC blockchain without causing any inflation.

[Table 5. Transaction Fee & EPoSe Rewards Estimation]

The community voted on adding a 10% governance fee through https://voting.qwertycoin.org/?election=20.

Please check the voting result. The implementation of this 10% government fee will be from the block rewards. All gov't fees will be used for project developments.

The use of this taxed fund will be reported and monitored transparently through the wallet view key.

The implementation of this fee collection starts from block version 6, equivalent to QWC's block height 700,000.

A. Multi Language Support (Wallet Software and Web)

Qwertycoin wallet platforms(Desktop/Web/Mobile) and QWC official websites will support multiple languages. English is the default language for software services. Additional language updates shall be requested through official communication channels.

B. Transforming QWC into Blockchain 3.0

QWC developers and communities shall find work towards to get below all five properties.

• High Scalability

• Interoperability

B-1. High Scalability

As written in the main part of this whitepaper, Blockchain size grows in the linear trend under a fixed set of parameters. These configurations such as block time and block size embedded in codes will have to be changed from QWC blockchain in the future depending on the outcome of QWC’s high scalability solution.

QWC proposes to solve this scalability issue by generating a new (genesis) reference block after a fixed interval. Our approach is different from a hard fork, which most cryptocurrency developers opt to choose for solving this issue.

The validation of ring signature back to genesis block will add significant loads to QWC network in the later stage of any blockchain as the number of transactions increases. To minimize this bottleneck, a mega block will be issued. Since the ring signature verifications on this mega block will be confirmed by checking all previous signatures from the previous blocks, this block can act as a new reference point for future ring signature verifications thereafter.

A complete blockchain data file up to this mega block will be backed up and stored in the conventional blockchain database as a backup source. Users can download this complete blockchain file as well if their systems have enough processing power and storage to run wallets or nodes. If not, they can always connect to remote nodes to use QWC blockchain.

It is a type of compression that will keep our working blockchain to a manageable size in the long run. Assuming that average internet speed of 100Mbps, which can provide 12.5MB/s download speed in optimal condition, this (genesis) reference block shall be created before every 100GB of blockchain size, equivalent to 100,000 blocks (approx.. 139-day interval) to allow seamless network-wide synchronization within an hour.

In order to create this genesis reference block, all wallets initiate self-transactions to assure the number of coins per address is correctly reflected in this mega block to avoid ring signature verifications back to the genesis hash of individual address for future transactions.

The prerequisites required for this plan

1. 2FA enabled wallets (preferably mobile or web wallet)

2. A permission feature in the wallet to only allow self-transactions required for generating reference blocks.

3. Optimizing difficulty algorithm (or network propagation time setting) depending on the total size of transaction hashes to be included in the reference block to avoid any fork from possible malicious attack.

A higher transaction fee will be charged to wallets that failed to be included(or make a self-transaction) in the reference block for additional loads on QWC network as a penalty, but it also motivates users to adapt to mobile/web wallet environment, that boosts the effectiveness of QWC’s scalability solution.

B-2. Interoperability and Privacy (Through Reserve Requirement System [The Purpose of Qwertycoin Foundation] and Billionaire Club)

The fundamental of blockchain interoperability largely depends on the basic algorithm on which cryptocurrencies are built. It will come down to choices of cryptocurrency systems or platforms that are popular and how many businesses/entities/organizations/communities are willing to build blockchains above such a platform. QWC is a cryptocurrency and it means that it should be able to convert to other cryptocurrencies at users’ discretions and used as a means of payment.

Privacy is compromised when they make a C2C or C2F transactions through an exchange platform with AML and KYC processes in place.

To solve these two issues, QWC team proposes the following solution with three prerequisites.

1. QWC Foundation – Reserve Requirement System up to 7% of maximum QWC supply (Max. 18.447 Billion QWC)

2. QWC Billionaire Club – Total holding stake of 20% of maximum QWC supply (Max. 36.894 Billion QWC)

3. QWC exchange accounts on all exchange platforms that list/trade QWC.

First, a trading solution will be developed or implemented, not in a form of a conventional exchange, but more like a bot system for all members.

C2C Transaction (Coin to Coin Exchange)

Seller/Buyer -> Wallet (Transaction Fee) -> Individual Exchange (CEX/ DEX) & API-> C2C Exchange (Exchange Taker/Maker Fee)

to

Seller(Lender)/Buyer(Loaner) -> Qwerty Wallet -> C2C Exchange based on Best Market Price from Multi-Exchange API (CEX / DEX)

1. Buyer(Loaner) checks exchange rate from wallet software.

2. The bot will allocate the best trading deal on the market among exchanges.

3. Buyer(Loaner) initiates C2C exchange upon confirming exchange rate + service fee + receiving address of exchanged coin, which sends QWC to a designated wallet address + transaction fee in QWC (% of total transaction)

4. The QWC coins funded by Seller(Lender – Reserve Requirement System and/or QWC Billionaire Club) on the exchange platform will initiate C2C exchange from the market and send the exchanged coin to Buyer(Loaner)’s designated address excluding a service fee form exchanged coin unit. (% of total transaction)

5. Exchange status will be confirmed in QWC wallet software.

Pro: 1. Personal identity is masked through this system. 2. Buyers can receive the best market deal by taking the lowest sell order rate from Multi-Exchange API (CEX / DEX) at their fingertips. 3. Lenders can receive the best market deal by making the highest buy order rate from Multi-Exchange API (CEX / DEX) at their fingertips + service fees. 4. By normalizing sell price in the market, buy price is also normalized and stabilized. This will be the main difference from other cryptocurrencies in terms of trading ecosystem.

Con: Investor holds risks against the overall stability of the QWC blockchain.

C2F / F2C Transaction (Coin to Fiat / Fiat to Coin Exchange)

For this type of trade, It is important to inform our members that your registrations on exchange platforms with personal information such as ID and bank/credit card accounts will/can expose your identity and your actions and outcomes from trading activities can be subjected to applicable laws and regulations. We are dealing with centralized currencies and their systems in the end. This service is not an option for QWC network.

For cryptocurrency to fiat exchanges, it would be the best to have local stores and businesses to engage and host an individual/independent exchange to allow a more decentralized network of QWC blockchain. There will be no requirement of personal information for this type of transaction.