CloudCoin Whitepaper: Blockchain Paradox solved with RAIDA

Today’s blockchain-based digital currencies cannot achieve both decentralization and high performance. The RAIDA, which uses cutting-edge network architecture, has achieved both.?

Highly decentralized digital currencies such as Bitcoin are extremely slow, non-scalable and expensive. Newer currencies, such as EOS, achieve much better performance but rely on a few nodes (21 in the case of EOS) which risk being taken-over and owned by a single entity.?

Until relatively recently, all databases were owned by persons, companies or governments. Database owners have the ability to create, read, update and delete data (CRUD). The owner can also turn off the system - or be forced to turn off the system - at any time.?

Blockchain technology has removed the ownership of databases and has allowed us to achieve Data Supremacy. Data Supremacy is when a database cannot lose its confidentiality, integrity or availability to any threat including governments, tech giants, hacker, AI, quantum computers, System Administrators or even its creators.

The Threat of Centralization

Centralized monetary system can create a big problem because it allows the owners of the monetary system (often governments) to dilute the money and rob us of the goods and services that we have earned.

When money appears in a monetary system by dilution, it disrupts our productive and efficient behaviors because it fools us with inaccurate information. It is through the analysis of price information that we decide where to work and what to buy. Dilution corrupts monetary information and unless you are the one receiving the new currency, this dilutions will cause you to become poorer.??

Consider the effects of Zimbabwe’s centralized currency. "To ensure that the government funded its debts, the Reserve Bank of Zimbabwe increased its printing of currency causing a rise in inflation to triple digits as of 2001. By the end of 2008, consumer prices doubled every other day with joblessness being on the increase."[1] This crisis caused harm to all the people of Zimbabwe and this dilution would not have been possible without centralization.

E-Gold (launched in 1996), presents a concrete example of how centralization can destroy a digital currency. With E-Gold, people put their gold in a common vault and digital certificates were issued based on that gold. Then the State of California kicked in the doors and took the vault effectively ending the currency. [2] Naturally, this was catastrophic for E-Gold users.?

Bitcoin: The Decentralized Blockchain Solution

Bitcoin's underlying architecture is peer-to-peer. This means that all computer have the same authority. Bitcoin was the first digital monetary system to achieve Data Supremacy. However, it has problems including high energy usage, no true privacy, loack of speed, high fees, non-user friendly, and most concerning: non-scalable. Scholars have noted that without scale, the blockchain cannot have many real-world applications. Therefore, this scalability vs. decentralization trade-off may impose a long-term limitation of blockchain-based technologies. [1]

With any information system, governance is required when decisions need to be made. With Bitcoin, there is no governance. Therefor no decisions can be made. But what if there is a bug in the Bitcoin code? What if we want to update Bitcoin software to improve performance? Historically, to make improvements to the code, Bitcoin miners go to war with each other and the code is “forked.” This means that some administrators (miners) run the old code while others run the new code.?

We can see from Bitcoin that blockchain decentralization reduces performance and retards the development of a coin.?

The EOS Cryptocurrency: The more Centralized Blockchain Solution

EOS's underlying architecture is not peer-to-peer. Instead there are 21 nodes that together decide who has what money. This architecture could be called client-multi-master because there are many master nodes and each master node is equal to the other master nodes. This model allows changes to occur at any master node, but it also introduces the possibility of conflicts when data is replicated to other nodes. These conflicts are settled with an algorithm. EOS was created to solve the shortcomings of the blockchain by reducing the number of nodes from thousands down to only 21. The efficiency, speed and scalability of EOS was a massive improvement over Bitcoin due to this centralization. But there are some problems. The system was designed to have a government and coin holders were given votes to decide who would be the node owners. Now the majority of these nodes are either located in China or controlled by the Chinese. The Chinese were able to buy these nodes by a so-called vote.

In the past, the owners of these 21 nodes have worked together to freeze accounts that had been shown to hold stolen tokens. "The decision to freeze those accounts shows the controversy the blockchain is facing now, because the top (nodes) did so without any kind of agreed-upon governance process. A "constitution" had been drafted, but it had not passed a referendum of EOS users."[4].?

EOS shows that while centralization increases blockchain performance, it can reduce the integrity of a currency.?

RAIDA and the CloudCoin Cryptocurrency are the Solution

The RAIDA (Redundant Array of Independent Detection Agents) uses an architecture that can be called Client- Redundant Array of Servers. Instead of a client talking to a peer or a server, the client talks to many servers in parallel. Using the RAIDA is like asking dozens of different coin dealers if a coin is authentic. It is the user who needs to decide if the coin is authentic based on their opinions. This architecture provides the speed of client-server with the decentralization of peer-to-peer.

The RAIDA allows for true digital cash. True digital cash does not use a ledger to track who owns it. Instead digital cash is more like physical money. Instead of writing ink on paper (like with dollars) we write data on hard drives (like CloudCoin). Ink on paper and magnetic fluxes on hard drives are both 'symbols with meaning' (data). You may ask the obvious question: What is to stop people from making copies of the files, thereby creating an infinite supply of cash that dilutes the system and creates mass inflation? This is where the genius of the RAIDA comes in. The RAIDA stops people from spending their money twice.?

Here is how it works. Suppose I have a file called a CloudCoin. Inside this file there is a unique serial number and 25 authenticity numbers (extremely strong passwords). If I have the file that means that I own the money because only I have the true authenticity numbers. If I want to buy something from you I will give you this file. Now both of us own the file. Anyone with the numbers can change them. You simply make a request to the RAIDA telling it which serial number you want to authenticate, what the password is and what you would like the password to be changed to. If the coin is authentic, then you will immediately be the new owner because you are now the only one with the authenticity numbers.??

The RAIDA Achieves the Highest Performance

The RAIDA is much faster and scalable than the Blockchain. The RAIDA has been shown to handle requests in just 2 millionths of a second, fast enough to support the entire global transactions like the Root DNS does. Like the DNS, RAIDA is able to use UDP instead of TCP. Note that all network protocols must choose UDP or TCP because there are no alternatives. UDP is much faster but will lose packets. RAIDA is so redundant that packet loss is acceptable.?RAIDA does not use SSL encryption but instead uses AES encryption. SSL is much slower than AES because SSL requires a "handshake" that adds latency to the network data transmission.?

The RAIDA is the most efficient payment system in the world. It uses less electricity than an average American household. RAIDA uses less bandwidth as it is able to transmit requests using as little as 1.5 KB. AES encryption uses less electricity than SSL encryption. This efficiency is achieved because the RAIDA uses a simple "update" process rather than verifying encryption hashes that require major processing power.?

The RAIDA is the most private currency ever created. It does not track every transaction. It does not require users to have accounts or provide any identifying information. The RAIDA is also the only digital currency that is immune to the attacks of quantum computers. It would be impossible for the RAIDA to freeze accounts because there are no accounts.?

The RAIDA is also easy to integrate into software packages and is the world's first "crossover currency". This means it can be taken into the virtual world and video games, traded and then taken back out.?

The RAIDA?Achieves the Highest Decentralization of Data

Client-server models such as PayPal have one central database that can be a single point of failure. Peer-to-peer models like the Blockchain have one central database that is mirrored on thousands of servers. The RAIDA has many independent databases that are all unique and do not share data with each other.

PayPal does not have Data Supremacy. Blockchains do have Data Supremacy but are not quantum safe or private. RAIDA is quantum safe and private. RAIDA has no whole-database that can be unencrypted, read by the public or even read by the RAIDA's own administrators.

A decentralized database must store its data so that it's data cannot be tampered with, spied on or made unavailable by anyone including the system admins and the creator. The RAIDA achieves this by using redundant authentication systems. Each authentication system has its own database, primary server, mirrored server, backup server and administrators. They are located in different legal jurisdictions. Blockchains allow everyone to see what money each person has. If a user gives me their address so that I can send them money, I can see every transaction they have used that account for and how much money they have. With RAIDA, there is no public data. How can we tell that there is no inflation? CloudCoins have a three-byte serial number that limits the number of coins to 16,777,216. Any serial number outside of this is a fake.

The RAIDA does not use “consensus.” Consensus is not the truth. The RAIDA uses trust. The Root DNS also uses trust and it has been shown to work.?Should a RAIDA be taken over by a hostile organization, users can simply remove that RAIDA from their trusted RAIDA list which is located in their desktop software. Users can also add RAIDAs that they trust. RAIDA Admins can additionally control any other RAIDA that they trust.

Attackers would have to be able to rule all the RAIDA databases before the RAIDA Administrators and users noticed the attack. CloudCoin has 25 nodes at this time. This is nearly twice the number of nodes that the Root DNS has. Like the Root DNS nodes, the likelihood of all nodes being compromised is astronomically low.?

The RAIDA is Static With a Few Exceptions

Remember that governance of a digital currency is only necessary if there are decisions to be made. The RAIDA was designed based on the Root DNS so that the code can be upgraded and that only freedom-loving people could become Administrators. There are only two decisions that the RAIDA and the Root DNS need make that require governance:

1. Should the protocol be updated?
2. Who should be the RAIDA Admins?

Should the Protocol be Updated??

According to Article 10 of the CloudCoin RAIDA Constitution, RAIDA Administrators are responsible for writing their own code and are free to use whatever software they like so long as it implements the protocol. The CloudCoin Consortium has provided free-of-charge to the RAIDA Admins three versions of the RAIDA code written in three different languages: C, Rust and C++. In order to eliminate the systemic risk of software failure, RAIDA Admins are encouraged to have no more than nine of them using the same code.

Although it is desirable for the protocol to remain stable, anyone can suggest modifications to the protocol. These changes can be made quickly if the person gets the support of the RAIDA Admin thought-leaders and provides the funds necessary to alter the code. Many changes to the protocol have already been made based on suggestions from users.?

Should an Admin be Terminated?

The amended Article 18 of the RAIDA Constitution says that RAIDA Admins are appointed for life and can bequeath their RAIDAs. The termination of RAIDA Admins must be initiated by another RAIDA Admin and the RAIDA Admins must vote to remove that person. The Root DNS has shown that the administration of such a system can be very stable and without drama or threat. It should be noted that the United Nations and Telecom Federations have demanded that they control the Root DNS.?

Who Should Become an Admin if a Position Becomes Available?

The amended Article 18 of the RAIDA Constitution says that RAIDA Admins will elect new RAIDA Admins. To be a RAIDA Administrator, you must be a world-class system administrator, pass a philosophical exam that shows you are a libertarian and most importantly, you must agree to the RAIDA Constitution.?

The Role of Supporting Organizations

The CloudCoin Consortium may be misunderstood as central authority that make the rules and hire and fire. However, the CloudCoin Consortium has absolutely no control over the RAIDA, its Administrators or its software.?

Can the RAIDA Administrators Work Together to Steal Coins?

Similar questions can be asked about the Root DNS Administrators:

• Can Root DNS Admins make billions selling their nodes to Chinese Communists?
• Can the Root DNS Administrators create their own domains and make billions off of registrations?
• Can the Root DNS Administrators get rich by giving user’s false information so that they end up viewing advertisements?

They can but over the last forty years of operation, they have not and it is unthinkable that they shall do so in the future.?

The RAIDA Admins have not stolen coins over the past five years and they will not in the future. To steal coins, the RAIDA Admins would need to be made up primarily of thieves. They are not thieves and none of them have criminal records. It would also be impossible for them to get away with. RAIDA Admins would need to recruit other admins. The RAIDA Constitution says that anyone who suggests stealing coins will be terminated. Any RAIDA Admin who decided to organize such a theft would likely be tossed out before they recruit a single RAIDA Admin. CloudCoin Consortium runs a support desk. Any reports of coins becoming counterfeit due to theft would be noticed immediately. Every incident where a user complains that coins have become counterfeit are thoroughly investigated by the Consortium. All incidents like this have been shown to be caused by bugs in the client software and not the RAIDA. The RAIDA Admins are libertarians and they have agreed to follow the terms of the RAIDA Constitution.

Here are some other questions need to be answered:?

1. Can RAIDA freeze accounts? There are no accounts.
2. Can RAIDA steal money? No because they have no desire to do that and?it would be impossible to orchestrate.?
3. Who is responsible for keeping the RAIDA running? The RAIDA Admins have signed a Constitution promising that they will keep it running.?
4. Can the RAIDA be shut down? No. Like the Blockchain and the Root DNS servers, the RAIDA has Data Supremacy and cannot be brought down by hackers, governments, tech giants, AI, quantum computers, RAIDA?Admins or even its creator.?

RAIDA Summary

The blockchain provides poor performance when decentralized and lack of integrity when centralized. The RAIDA has achieved the highest performance of any digital currency or payment systems and has just enough centralization to allow for updates to the code. The RAIDA, like the Root DNS that it is based on, has never gone down. It is fast, scalable, energy-efficient and free. We can count on the RAIDA to dominate the future of digital currency.

The CloudCoin v.2 Project

The CloudCoin Project has been in development for the past five years. The original coins are now called Legacy CloudCoins. The new coins that are being released June 26th, 2022, are now called CloudCoins.

All client code and protocols will be open to the public using the MIT Opensource license. This code is provided free of charge by the CloudCoin Consortium. This ensures that the CloudCoin can quickly be adopted by the global community. The exception is the RAIDA Server software which is protected by a patent to eliminate the possibility of thousands of copy-cat coins.

There is a fixed amount of CloudCoins with serial numbers 1 through 16,777,216. This is a three byte integer that ensure that any serial numbers out side of this range are counterfeit. New coins cannot be created unless CloudCoin splits. If this happens, then all CloudCoins will be doubled. The only way to get the new CloudCoins is to exchange the Legacy CloudCoins for the new ones. However, the new CloudCoins can also be purchased from Bitmart.com, private vendors, and soon CollectibleColors.com

Team

The team is made up of

Sean Worthington, Lead scientist, author of Beyond Bitcoin the Future of Digital Currencies https://www.dhirubhai.net/in/sean-worthington-27368613/

Michael Terpin, Business strategy founder CEO of Transform Group https://www.dhirubhai.net/company/transform-group/

Phil Flynn, Senior Market Analyst at the Price Futures Group incorporated https://www.dhirubhai.net/in/phil-flynn-866b3b4/

Adam Fogerson, Director of Communications https://www.dhirubhai.net/in/adamfogerson/

William Caput, Chief Security Officer https://www.dhirubhai.net/in/will-caput/

Adrian Niculescu, Digital Transformation Expert?https://www.dhirubhai.net/in/adrianniculescu

Ajith Narayana, Network Security https://www.dhirubhai.net/in/ajith-narayanan-b190046/

Alexander Miroch, Chief Client Developer https://www.dhirubhai.net/in/alexander-miroch-48970859/

Alexander Fomichev, Chief Systems Engineer https://www.dhirubhai.net/in/alexander-fomichev/

Fel Noval, Systems Engineer

Alang Hsu, Network Reliability https://www.dhirubhai.net/in/alanghsu/

Sergey Chernyshov, Automated Testing https://www.dhirubhai.net/in/sergiy-chernyshov-27141872/

Neeraji Rathi, Senior Software Developer

Gary Nelson, Business Development

Brett Caudle, Software Tester https://www.dhirubhai.net/in/brett-caudle-65b85815/

Radovan Bajic, Chief Technology Officer https://rs.linkedin.com/in/radovan-bajic-aa62ab25

Ilya Vlasyuk, Business Development Europe

Dr Eric Huntington, Advisor

Don Delgado, Advisor

Tuyen Pham, Advisor

Andrew Lay, CEO of Hierographics. https://www.dhirubhai.net/in/drulay/

Dale Kruger, Business Development Specialist. https://www.dhirubhai.net/in/dale-krueger-9b4779a/

Tokenomics

Token Design: CloudCoin is designed to be the perfect money. It is designed to have no inflation , 100% true privacy , instantaneous authentication , no fees , globally scalable , crossoverable into virtual reality and video games , easy to use, recoverable if lost, resistant to theft , quantum safe , and to also contain a Collectible Color NFT .??

Proof (of coin Integrity): ?CloudCoin is the only coin that uses Proof-of-Authenticity instead of Proof-of-Work or Proof-of-Stake.

Total supply: 16,777,216 CloudCoins fixed . The number never increases except in the cases of "splits". Splits cause all CloudCoins to double for all users equally.

Token distribution: The original Legacy CloudCoins were minted by the CloudCoin Consortium in 2016. These coins were spent over a five year development period ending in 2021. Legacy CloudCoins can now be converted into CloudCoin. It is estimated that there are over 30,000 CloudCoin holders.

Network Funding: CloudCoin is the only coin that is funded by the mining of lost coins. Any coin not authenticated after five years is considered lost and can be recovered by the RAIDA Admins.

Fees: CloudCoin has no fees.

Governance: CloudCoin has no governance. See "The RAIDA is static with a few exceptions" above. The CloudCoin Consortium is a group that promotes CloudCoin but they have not say over CloudCoin's administration.

NFT: Each CloudCoin has one unique color from the RGB color space. This adds a non-fungible element to CloudCoins.

Primary Exchange Listing: Bitmart.com??(June 29th, 2022)

Starting List Price: $0.50 (50 cents USD)

Total market capitalization based on starting listing price: $8.4 Million??

Number of Transactions:?There have been over 671 million Legacy CloudCoins authenticated in the past six months. Note that CloudCoin authenticates coins using the RAIDA and does not have transactions . Transactions take place outside of the RAIDA Network .?

Ticker Symbol: CC (Not to be confused with CCE which is the CloudCoin Ethereum token )

About the Author

Sean Worthington is the CEO at RAIDA Tech where he developed technologies based on the RAIDA.?

Prior to that he worked for twenty years as a computer science instructor at Butte College in northern California.?

Sean is also the patent holder (USPTO #10,650,375) of the RAIDA and author of Beyond Bitcoin, the Future of Digital Currency.?

RAIDA Tech provides unhackable solutions and you can learn more at?https://RaidaTech.com

[email protected] Skype ID: [email protected]

Citations

[1] https://studentshare.org/history/1457991-inflation-in-zimbabwe

[2] https://www.investopedia.com/terms/d/digital-gold-currency-dgc.asp

?[3] [The Limits to Blockchain? Scaling vs. Decentralization.] Social Science Research Network. Cybersecurity, Privacy & Networks eJournal. Accessed 21 April 2019.

?[4] https://www.coindesk.com/markets/2019/09/19/everyones-worst-fears-about-eos-are-proving-true/

?[5] https://www.pearsonitcertification.com/articles/article.aspx?p=1708668