Key events of 2020
The year 2021 is coming soon, and it is time to sum up the year that is coming to an end… We have planned to conduct a number of events to promote the Company’s key product, Bitbon System, in 2020. However, due to the quarantine measures taken by the government of Ukraine and other countries in the conditions of the SARS-CoV-2 pandemic, we have had to postpone or even suspend numerous projects, in particular, due to the changes in the international transport infrastructure. Nevertheless, even under such nonstandard conditions, Simcord has taken correction actions to maintain its operating cycle.
Thus, according to the adopted strategy of international systematic promotion of the products and services developed by the Company, we organized the information briefing for active Partners and Bitbon System Users, which was hosted by Simcord CEO Alexander Kud in Almaty, Kazakhstan on February 16, 2020. During this event we discussed very interesting and relevant issues related to the Bitbon System and advantages of using its services, legal regulation tendencies in the field of application of digital assets and future plans of the Company’s development…
We took all possible measures to inform our entire community about this and other events during the year, in particular, held online workshops and web-conferences.
The launch of Consensus building mining in the Bitbon System was one of the key events. The approach developed by Simcord for this type of mining allowed dealing with a number of significant limitations that other systems have. Thus, the launch of the new consensus building algorithm of the Bitbon System has increased the transaction processing speed to 5,000 transactions per second, which exceeds the capabilities of Bitcoin, the first cryptocurrency network, by 380 times and original Ethereum by 290 times. Such an approach gave an opportunity to increase the performance of blockchain networks by using synchronized protocols maintaining the security and decentralization of the blockchain.
The Company has continued to cooperate with the Research Center of Economic and Legal Solutions in the Area of Application of Distributed Ledger Technologies (Research Center of Blockchain Solutions) resulting in registration of the Draft Law “On Tokenized Assets and Crypto-Assets” No. 4328. In addition to the members of the Research Center of Blockchain Solutions, the team of authors included the representatives of scientific community, members of the parliament of Ukraine and Simcord’s specialists.
The research paper of Alexander Kud, The Phenomenon of Virtual Assets: Economic and Legal Aspects, was published. Its results can become the basis for state regulation of virtual assets of the distributed ledger and numerous research woks in the area of information technologies and platforms.
We have also laid the basis for a long-term official cooperation with different organizations and companies in particular with Eastern Ukrainian Bank Grant JSC. The result of the initial stage of business cooperation was signing of the Memorandum of long-term partnership, consolidation and coordination of actions on implementation of the blockchain technology in the banking sector. It should be noted that among the priority tasks of the specially created working group is the development of a legal model for managing the rights to the funds of a customer of a financial institution using digital assets. This model will meet all the requirements of banking license as well as current legislation in this field.
Moreover, among important events were numerous negotiations with the representatives of financial institutions of Europe and CIS countries related on the use of decentralized finances on the basis of the Bitbon System.
A lot of research has been done and confirmed in 2020, which will make the basis for the improvement of economic and legal nature of the Bitbon System, and we have conducted a solid work to optimize the component base of the Bitbon System for its subsequent technological decentralization.
Plans of the Company for 2021
The Bitbon System Community expects multifunctionality from the System and its more dynamic development using the mechanisms of the real sector of economy. To achieve all the goals planned for the next year, Simcord has prioritized its tasks based on the main directions of its activity. The tasks and order of their implementation are given below.
1. Publication of the research paper “Classification of Virtual Assets” to resolve the issue of ambiguity and uncertainty in understanding the nature of virtual assets of the distributed ledger in order to use virtual assets correctly and regulate relations that arise when using them.
It is known that the absence of certain criteria for classification of virtual assets is a great problem of scientific and legal nature today, which makes it impossible to determine clear standards of legal regulation. This paper will justify the selected approach for clarifying the properties of virtual assets and give their classification. Thus, the paper “Classification of Virtual Assets” will definitely resolve the issues that still have no solution.
2. Since a number of technical and legal aspects of the Bitbon System development have been clarified, we will make corresponding updates and amendments to the terminology of the Bitbon System, Bitbon System Public Contract, Bitbon Protocol, as well as to scientific and legal opinions. Thus, the specialists of the non-governmental organization “Research Center of Economic and Legal Solutions in the Area of Application of Distributed Ledger Technologies” will prepare the scientific and legal opinion “Virtual Assets of the Distributed Ledger as an Object of Legal Regulation”. The document will consist of three main sections: “Nature of a Virtual Asset of the Distributed Ledger”, “Virtual Asset of the Distributed Ledger as an Object of Financial and Management Accounting” and “Legal Nature of the Bitbon System”.
Bitbon will be analyzed for its correspondence with a digital asset of civil circulation in accordance with the established criteria and classification of virtual assets using a methodology of diagnosis of virtual assets of the distributed ledger.
3. Publication of the book “Bitbon System as Implementation of the Method of Financial and Management Accounting Using Digital Assets” taking into account all the aspects of the Bitbon System development in the context of law, economy and business.
After having read this book, the reader will have a clear understanding of the role of the Bitbon System in the development of decentralized information platforms and communities based on them and in the public sector of economy.
The book will describe all the functional features of the Bitbon System in details being, in fact, something like instructions for its Users.
4. The source codes of the Ethereum blockchain node, based on which the Bitbon System is developed, modified by Simcord will be published on the popular platform GitHub, a web-service hosting IT projects. The same year, 2021, we plan one more update with publication of additional components of the blockchain that ensure the operation of the Bitbon System, which allows categorizing it as an open-source development platform so that public users could audit process.
5. Publication of an article about Simcord in Wikipedia that will cover the main directions of the Company’s activity and its principle developments: products and services.
6. Start of the contest of opinion pieces related to the Bitbon System and operating principles of digital assets. The contest is aimed to promote the concept of “digital assets” as a general notion with the examples of their usage in the Bitbon System. Authors will receive remuneration for publication depending on the type of article:
- rewritten content of the Bitbon Space website;
- informative review;
- analytical article revealing the essence of the Bitbon System, its mechanisms and components, and digital assets with examples;
- research paper.
7. By the end of 2021, we are planning to conduct a large-scale update of the module allowing Bitbon System Participants to create their own digital assets. This feature will be available prior to the launch of currency Protocols from various financial institutions, which, in fact, will mean integration of the Bitbon System and real sector of economy and usage of mechanisms of application of digital assets in the development of the market infrastructure.
8. The international research and practice conference “Virtual Assets in the Development of National Economy” organized by the Research Center of Blockchain Solutions will be registered in the bulletin of the Ministry of Education and Science of Ukraine. Specialists of Simcord will make their presentations along with other foreign participants.
9. Update of the mobile version of One Space and launch of its web version, which will allow all Bitbon System Participants to use various services of the Bitbon System as effectively as possible using the tools of this information platform.
Summing up the year of 2020, we would like to highlight that Simcord has been confidently implementing its mission in accordance with the development strategy step-by-step for 20 years now. We know that the number of Customers of the Bitbon System services and Company’s Partners is growing every year, which means that even more people want to change their lives for the better!
We feel support of our Customers and Partners, which, in many aspects, allows us to move forward and bring all our plans to life. We will make every effort to turn our plans into reality.
We wish the entire Bitbon System community more development dynamics and new successful achievements throughout 2021!