BITBON SYSTEM AS A SEPARATE INDEPENDENT ASSET

By its nature, Bitbon is an instrument for implementing the method of management of property rights to Assets and is a key component of the system for its implementation.

The Bitbon System is related to the information technology that is intended to be used in the financial and law fields, for business management, management of rights to Assets, evaluation of property rights to Assets, transfer of property rights to Assets of various types including movable and immovable property, machinery and production equipment, bank deposits, copyrights, financial instruments, securities, know-how, trademarks, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals and other assets.

One of the tasks of the Bitbon System is to increase the efficiency and functionality, security, fault tolerance, storage reliability of information on property rights to Assets by optimizing the management system of property rights to Assets and applying innovative software and hardware solutions. Also the task is to create a convenient and effective digital way of redistribution, transfer, accounting and management of property rights to Assets. This method of management of property rights to Assets foresees executing a transaction and recording the completed transaction in the Blockchain.

Bitbon as an instrument for implementing the method of management of property rights to Assets is characterized by the following attributes:

• Identifier — a unique sequence of alphanumeric characters;
• Nominal value — a positive real number corresponding to the part of the Bitbon System User’s property rights to Assets;
• Records in the Blockchain, which register all operations on each Bitbon;
• Bitbon Public Contract.

Bitbon has the following properties:

• Ability to split the nominal value with unlimited accuracy is guaranteed. Each fractional part of the nominal value corresponds to a certain part of property rights to Assets;
• Bitbon is issued in accordance with the Bitbon Public Contract published by the Bitbon System User (owner of property rights to Assets) based on the decision to issue Bitbons;
• Bitbon can be used as an instrument for trading on the exchange;
• Bitbon can be used for calculating the index or any other financial derivatives, instruments;
• Bitbon of one Bitbon System User may serve as an Asset of another Bitbon System User;
• It is guaranteed that any part of the Bitbon nominal value in the form of a new identifier is transferred from one Bitbon System User to another Bitbon System User;
• Ability to define rules of Bitbon processing before the occurrence of an event which the Bitbon System User (owner of property rights to Assets) specifies limiting the Bitbon application field.

The following components are used in the Bitbon System for implementing the method of management of property rights to Assets:

Blockchain of data on nominal value, on User identifiers, on transaction history, on the Bitbon Public Contract, on the evaluation of nominal value of property rights to Assets, on User Accounts is a network of hardware-software complexes (HSCs), where each HSC is connected to all other HSCs that are part of the network. Each HSC contains a memory and processor. An example of such HSCs can be: a personal computer, smartphone, dedicated server, tablet computer and other types of devices. The memory of each device contains the data of the Blockchain, which is synchronized with other network devices. In such a case, the failure of one of the devices will not lead to the loss of records on property rights to Assets, information on owners and transactions. The Blockchain is configured with the ability to interact with the User terminal and the publication module.

Exact time module is configured with the ability to synchronize with the network-wide time of the HSC network, which differs from the global time due to the considered speed corrections of the signal propagation across the network segments between HSCs. It is a hardware-software device, which includes a free-running hardware time counter adjusted to ensure the network time uniformity on all HSCs using the network interfaces of the Internet. The network time uniformity is achieved by taking into account inaccuracy between the system time of HSCs and the global time related to the speed of signal propagation across the local network segments connecting HSCs to each other.

The exact time module is configured with the ability to interact with the ledger object identifier generator, transaction processing module, validation module, publication module.

Ledger object identifier generator is a separate device using cryptographic algorithms to generate hash codes based on elliptic curves using a generator of random numbers implemented on the basis of a separate hardware solution, which ensures the required cryptographic quality of hash functions.

The ledger object identifier generator is configured with the ability to interact with the User terminal, transaction processing module, validation module, exact time module.

Transaction processing module is designed to perform the request processing procedure to form a record on the redistribution or transfer of property rights to Assets in the Blockchain. It is a pool of HSCs connected to each other in the network.

The transaction processing module is configured with the ability to interact with the User terminal, ledger object identifier generator, exact time module, validation module, publication module.

Validation module is characterized by the ability to verify the correctness and reliability of the evaluation results of property rights to Assets, the Bitbon Public Contract, nominal value, User identifiers. It is a pool of HSCs connected to each other in the network with the implemented ability to interact with the ledger object identifier generator, transaction processing module, exact time module and publication module.

Publication module is characterized by the ability to publish new records in the Blockchain. It is a pool of HSCs connected to each other in the network with the implemented ability to interact with the object identifier generation module, transaction processing module, exact time module, the Blockchain. Only the publication module is entitled to record in the Blockchain.

User terminal is characterized by the ability to create the Bitbon Public Contract, create an order to transfer property rights to Assets. It is a HSC with the implemented ability to interact with the ledger object identifier generator, transaction processing module and the Blockchain with free access to data reading.

Unique functionality, specific architecture and transparency of interaction of the Bitbon System components give grounds for considering this System to be a separate independent Asset that has unlimited potential for development.

The Bitbon System is a convenient and effective digital way of redistribution, transfer, accounting and management of property rights to Assets by increasing the efficiency and functionality, security, fault tolerance, storage reliability of information on property rights to Assets by optimizing the management system of property rights to Assets and applying innovative software and hardware solutions by including the ledger object identifier generator and the validation module in the system, by creating the possibility of digital transfer of property rights to Assets.