WHITE PAPER EAURIC
By: Guido E. Ochoa H.
The gold-based coin is reborn from the ashes with ElectrumChain, the Eauric integrates gold into the new digital society, being the first cryptoactive in a blockchain ecosystem (Eleutherus) where most of the digital activities will coexist.
The transfer of money between financial systems nowadays is not easy, a series of bureaucratic barriers hinder this action, at best a simple financial operation that should be done in seconds is
delayed days or even weeks.
Among the main reasons why this is happening we can have:
a) Trade wars between countries or blocks of countries make financial systems part of these bureaucratic barriers, hindering the capital flow between the countries involved. There are countries or blocks that defend hegemony that they have positioned, and others that seek to create their own and new spaces to avoid dependence on hegemonic blocks.
b) New technologies have facilitated the creation of a large number of small, medium and large financial platforms, allowing the acquisition of new users and financial operations in small and medium groups. This creates the fight between traditional and new financial platforms, as the traditional ones have a large amount of infrastructure and personnel that is becoming unproductive and incompetent unlike recent technologies that are generating a new financial industry.
c) Cryptocurrencies begin to generate a competitive alternative to the international financial industry, due to the new characteristics that they provide to users.
The traditional financial system uses as a working instrument a unit of account propped up in FIATS currencies, while many of the new technological banking systems create their own units of account and cryptocurrencies generate new coins based on cryptography. All of them are units of account that build a value based on the trust or credibility they manage to generate in their systems; If the system manages to impregnate the majority of the population with confidence, their unit of account will have a high value; if, on the contrary, it does not generate confidence in the system, the value of its unit of account may approach zero.
Several premises emerge from these scenarios, including:
a) A system will be durable as long as it can maintain trust among its users and generate trust to attract new users.
b) The transfer of value from one system to another goes through the titanic effort to determine what the exchange value is between them, this generates difficulty or impossibility of exchanging their values with each other. In the event that some of these financial platforms generate agreements among themselves to exchange their values, they end up sharing the same users, who decide which platform to use simply because they believe that one brand or the other is more reliable or provides better service.
The Electrumchain proposal exposes the development of a financial instrument called Eauric to be used in a general-purpose (not only financial) Blockchain ecosystem that is not based on confidence building, but based on a technologically reliable ecosystem for all. Eauric is not a unit of account, but creates real value, uniting one of the oldest tangible assets, such as gold, with the most modern of technologies, an own technology developed by Electrumchain based on the some characteristics of the Blockchain of Bitcoin.
1.-History and value of Gold
Historically gold was one of the first instruments used to make payments, in local economies it was not a problem to transport it and its high purchasing power allowed any type of operation
with a few coins or a fraction of them.
The reasons why it does not lose its value, but instead increase in spite of the years, is that it is a scarce mineral, very physically and chemically stable, which means that it does not deteriorate
over time and is also very well accounted for. In other words, it is possible to know with a high degree of accuracy how much may have been treasured in the hands of people and institutions, as
well as what remains to be extracted from the mines.
Speculating what the price of gold should be is a difficult act, so we take as reference www.usdebtclock.org, for April 13, 2020, the “dollar to gold ratio” was $ 19,502 per troy ounce and its spot market value that same day was $ 1,749. We can mention as some of the main reasons for the wide difference between the market price and the “dollar to gold ratio”, the high correlation that gold has with the financial system given that the different instruments based on gold such as swaps, derivatives, contracts, cfd, etc., have made the price in some way manipulated
by the actors of these instruments. That is why gold in last years has ceased to become a historical refuge, losing interest in investors and holders of large and small fortunes who seek refuge from the declines in financial markets.
It is important to mention that the demand for gold is increasing year by year and the primary suppliers such as mining and recycling are unable to supply the market. Gold today has a market far beyond what we normally know as an investment or refuge, being even much bigger when adding other consumer markets such as jewelry, electronics, etc.
For gold to once again become a refuge against cyclical declines of the markets, it is necessary to break the existing correlation between them, while it needs to become an instrument of a new
financial system that is more flexible, that is, wherever it is more easy to negotiate when making transactions and at the same time have a great capacity to generate new and innovative markets.
However, in a globalized, technological world with millions of digitized daily operations, gold loses possibilities of being part of the digital world and therefore could lose value or, failing that,
not increase its value unless it adapts to the new times. Currently, it is impossible to use gold as a transactional instrument, due in part to the difficulty of transporting it, the security required for
transportation and storage, the difficulty of its divisibility, as well as the slowness of these processes when it is necessary to carry out exchange or transactional operations in a time of fractions of seconds.
2.-Brief history of cryptocurrencies
Some proposals to generate value based on other instruments that were not known until a few years ago, such as Fiats, stocks, etc., had been exposed since the 1960s, with the passing of the
years and different technological developments, Satoshi Nakamoto proposes a cryptocurrency called bitcoin. Technically, it is the union of several technologies that were already sufficiently
developed and Satoshi managed to unite them in a project called Bitcoin: an electronic cash system, a payment instrument. Bitcoin in its initial stages was adopted by a group of nerds and took its big step when the first commercial transaction was made when it was used to buy or exchange for a pizza.
Bitcoin, as an instrument of value, since its beginning to this date has gone through several stages, however the most important thing is that today there is no doubt about the value it may have.
Let’s remember that initially everyone was wondering how a crypto code could have value or could be exchanged for something. Now a days nobody asks that question, it is simply accepted as a reality. Especially in the new generations, the value and use of bitcoin and other cryptocurrencies is taken for granted.
Once the bitcoin took value, this day to day was increased according to its purchasing power and the reference value for the conversion to the Fiats currencies or other cryptocurrencies. Other crypto instruments designed not to be a cryptocurrency, also took value, in some cases important values for a long period of time and in other cases temporarily.
The first exchange houses that allowed to exchange bitcoins for Fiat currencies made possible the massification of cryptocurrencies and managed to lose the fear of cryptocurrencies as an investment, beginning to generate a parallel and alternative system to the traditional financial system. This new panorama makes the traditional financial system act under threat of being displaced, which is why nowadays it has taken over the universe of cryptocurrencies and especially bitcoin, being the largest investor of all startups that are related to the world of bitcoin, cryptocurrencies and blockchains.
The aforementioned ideas raises the question whether, at present, is there a fundamental difference between the value of fiat currencies and cryptocurrencies?. These values are based on
the trust and/or credibility that the holder has in the fiat currency or in the cryptocurrency.
To clarify what has been said previously, we are referring to value, not to the technological components or institutions that support one or the other model, that is, between the traditional financial system with its Fiats instruments and the technologies that support Cryptocurrencies.
3.-Brief history of Blockchain
The adoption of bitcoin in such a short time, as well as the speed of massification with which it was adopted by some social niches, reminded the traditional financial system that every industry has to adapt and innovate in order to stay in time and not to die in the face of new alternatives.
This led the financial industry to the study of bitcoin, they analyzed and understood that bitcoin is backed by a technology that contains three elements: Peer to Peer networks (P2P), Proof of work (PoW) and SHA-256 cryptography. They called the technological base of bitcoin Blockchain.
Basing on the word blockchain, any technological project that would pretend to compete with bitcoin or modernize the financial industry was labeled with the word blockchain, which led to a race among thousands of startups, financed by the traditional financial system and others, to build blockchain technologies adapted to their needs or visions.
Attempts have been made to develop hundreds of products that bear the name of blockchain, but very few of them implement the three elements mentioned above, such as P2P, PoW and SHA256, even some do not carry any of these elements and only use the term blockchain to get financing or investors.
4.-Without ecosystem there is no value
All cryptocurrencies start from the true premise that in order to have a value, it is necessary that a large number of people want to have them; however, very few argue that this desirability must be maintained for many years. Desirability is based on the cryptocurrency revaluing over time or simply that it does not lose its purchasing power.
On the other hand, for any X or Y cryptocurrency to have value, it must also be able to be used easily, so it must be accepted in most financial or commercial transactions; that means, this
cryptocurrency must be able to be used in any type of trade or business, for example stores, supermarkets, airlines, purchase of shares, purchase of vehicles, purchase of real estate, etc. These events are called usability.
In order for those already described events of usability and desirability could occur, it is necessary to build an ecosystem; that is, a group of people, companies, and institutions that are willing to participate by accepting, exchanging or retaining the X or Y cryptocurrency as a value instrument.
All cryptocurrencies wish to make their own independent ecosystem, that is, non-collaborative among them, some even believe that with their ecosystem they can monopolize all global financial transactions, but none of them propose to work together to make an ecosystem for general use of cryptocurrencies.
5.-What is Eauric?
It is a backed cryptoactive that has 3 fundamental characteristics:
• 5.1 Gold backup
The Eauric is backed 100% in gold, that is, for each unit of Eauric there is one troy ounce of gold that backs it. The gold used to back the Eauric is 18 karats. The Eauric is divisible in 1,000,000,000,000,000,000,000,000, that is to say, in a septillionth part or in a yocto (10^-24), which will be called yoctogold.
This divisibility allows the Eauric to be a cryptoactive that can be massified and also breaks the problem that gold has of not being able to be exchanged, traded or sold in most cases, for less
than one troy ounce, whose price for the day 04/13/2020 was $ 1749 per troy ounce. If gold could be fractionally traded, the hundredth millionth of the value mentioned above would be $
It might be illogical to mention the value of the fractionation of gold, but at the time the “dollar to gold ratio” is reached, which was $ 19,502 on 13/4/2020, the hundredth millionth part would have a value of $ 0.00019502.
Historically, the price of gold always rises, so it is not difficult to visualize that in a few years it could quadruple to reach a value close to $ 100,000 per troy ounce, for that scenario, the hundredth millionth part would have a value of $ 0.001.
Having a gold backing and at the same time possessing a high divisibility of it, in addition to other characteristics that we will discuss later in this document, will allow the Eauric to massify to all the economic strata of world society, since it breaks the point at which it is necessary to have a significant amount of money in order to acquire a troy ounce of gold.
This in practice means that the massive use of it would be assured, since it can be used for any type of commercial or financial operation, however small it may be, which gives rise to a great potential for use and therefore desirability.
The gold that supports the Eauric will be of a purity of 18 karats, it will be stored, guarded, and certified by companies specialized in the area, as is logical all under a contractual framework between Electrumchain and each one of those companies. The storage and custody will be carried out through 3 different companies, and it will be kept in 3 politically stable countries in equal parts, in other words, 1/3 of the total gold of Eauric will be placed with a company different from the other and each company must be located in a different country.
• 5.2.- The transactional network (mining).
The second fundamental characteristic of the Eauric is the transactional network that will be basedon its own Blockchain, a Blockchain developed by Electrumchain based on the Bitcoin core, wich will be explained in more detail later. This transactional network will be supported by miners, who will be external and independent to the Electrumchain organization. The work of these miners will be to maintain the necessary computing infrastructure so that each of the Eauric transfer operations will be recorded in the Eauric accounting book. This means that the accounting book that shows the possession of each Eauric in each wallet will be impossible to modify, delete or replace with another, even by the Electrumchain organization.
Obviously this provides security and transparency hitherto unknown; in the traditional system, when the financial institution fails, the technological infrastructure and the instruments of value of the clients disappear. With Eauric all miners would have to be turned off for this to happen, given this risk, anyone who has an Eauric or even a small fraction of it, would prevent its value from
disappearing if they had a working miner at home. If every Eauric user takes this precaution, it is simply impossible for its value to disappear.
Each miner will obtain a reward for their work that will be between 0.25% and 5% of the value of each transaction, according to the computational value that they have contributed for the registration of each specific operation. Hence the importance of what was mentioned about the septillionth part, since this will allow any type of operation to be processed, that is, low or high amount without any exclusion, since the commission payment even for a very small transactional operation is manageable and possible.
The commission will be adjusted between 0.25% to 5% according to the number of miners who are contributing to the Eauric network, initially 0.25% will be given, according to the value of the Eauric at a time X, this commission may not be appreciated by the miner, so it would stop mining for the Eauric due to the low reward, therefore, to keep the miner in operation, the value of the commission will be increased.
There may also be a time when the transaction cost is very high compared to some other platform, because the value of the Eauric is very high, if this were the case the commission will be reduced so that it remains attractive for those who have Eauric to trade.
• 5.3-The first cryptoactive that supports a universal ecosystem
All cryptocurrencies and/or tokens express that they will be better and different from other cryptocurrencies, exposing that they will have the ability to generate their own ecosystem, which will capture a majority percentage of global financial operations, so they will become desirable and usable and this way they will be able to obtain a great value. Although they have few differences between each of them.
Electrumchain has a radically different vision; we understand that we cannot build an ecosystem where the cryptoactive Eauric is the center or axis of the ecosystem. That is why we propose the
generation of a universal Blockchain ecosystem (Eleutherus) where the Eauric will be a cryptoactive, being a piece of the Eleutherus.
The advantage of Eauric and its potential value is based on the fact that it will be the first cryptoactive to be part of Eleutherus, this is a gigantic advantage since the first product in a new
and potentially explosive ecosystem always has an advantage over any other product of its type for its massification and popularization.
Eleutherus is a universal blockchain ecosystem in which all cryptocurrencies, Fintech, SmartContract, Cryptoassets, etc., known until now and even activities that we do not know today
and that have not yet been thought or developed, will be involved. This ecosystem, much broader than has been proposed so far, in the field of crypto-assets and blockchains will be one of the elements that will give traction to the Eauric.
Electrumchain will financially support a new foundation called Newfund, which will be a non-profit institution, whose goal will be to create a Blockchain ecosystem based on the premises of Bitcoin´s Blockchain such as P2P, PoW, SHA-2256. Anyone who wants can participate in Newfund, its main objectives being:
a) To develop all the necessary software for the continuous growth of the Eleutherus
b) Release, divulgue and massify the knowledge about the ecosystem it supports
For the construction of the aforementioned objectives, Electrumchain will deliver to NewFund the core software of the development carried out so far and which is fully functional, this software will be open-source, it takes the previously mentioned premises of the Blockchain Protocol; it makes great improvements and adds properties that the Blockchain Protocol lacked in order to become a Universal ecosystem. The relationship between Electrumchain and NewFund will be collaborative and participatory in its beginnings, since one of the principles of the NewFund foundation is to operate with criteria of total independence.
This is the way to create a Blockchain ecosystem for Universal use (Eleutherus) where all sectors and users can really participate in a truly independent way, in addition all commercial and operational areas/sectors of life can act in Eleutherus counting on the features of the bitcoin based Blockchain that has always been mentioned, such as security, decentralization and scalability. We are talking among others about the construction of a truly universal and independent Blockchain.
6.-Aspects about the value of the Eauric
We could think about giving a future value to the Eauric; however we will try not to do it for fear of being wrong, since there are many possible ways and methods of making these estimates,
which would make us extend too much in this Whitepaper and that is not the point.
So we will go on to state the fundamentals related to the value of the Eauric:
a) The massification of the Eauric, fundamentally leveraged in the development of the Blockchain Eleutherus as part of the strategy for its usability and desirability.
b) The Eauric has the foundations to massify one of the most valuable tangible assets in the world for several centuries, such as gold, which currently presents difficulties for its massification, due, among other reasons, to its high value per ounce (although it is not as high as it should be), which prevents its use from being possible for small operations.
Another problem that it has for its use as an exchange value is the difficulty of transportation due to the risk that it will be stolen, added to the cost of transportation that gold operations may incur given its weight/value ratio. The Eauric allows gold to modernize the way it exercises its operations and adapts them to the existing socio-digital world; allowing gold to be linked to the
Eauric will lead to the massification of gold in the virtualization of things, which means a potential market of more than five billion users, thus eliminating the obsolete commercialization of the gold used until the present day.
c) In a world of Cryptocurrencies valued in the year 2017 at $ 800 american billion, the valuations of cryptocurrencies as well as the Fiat currencies is intrinsically due to the value of the trust that is
held in the fiat system or in each of the systems of existing cryptocurrencies. The current Blockchain sector can be divided into two areas: cryptocurrencies that occupy approximately 95%
and the rest of blockchain activities that cover 5%, this is fundamentally due to the fact that each cryptocurrency believes itself capable of creating its own ecosystem, ignoring that the blockchain ecosystem must be collaborative among all in order to achieve integration. In the near future, all general activities based on Blockchains will occupy 95% and cryptocurrencies as they are
conceived, 5%. The Eauric being a part of the Eleutherus ecosystem will be the main cryptoactive with use value for exchange and/or payments, since the rest of the cryptocurrencies will be obsolete as they do not belong to the Eleutherus
d) Eauric offers a technology based on Proof of Work (PoW), Peer to Peer (P2P) and SHA-256 cryptography, few cryptocurrencies use this technology due to its high cost of installation and
maintenance, as well as the difficulty of implementation. The technology developed by ElectrumChain makes these costs decrease in great proportions so that mining will be profitable at
e) The community of miners who support the accounting book and who will be rewarded for the commissions obtained by Eauric’s exchange transactions is another point that will add value, since it is important an accounting book impossible to modify, eliminate or lost in time and at the same time independent.
These points, like many others that we could explain, currently give great value to Eauric and in the immediate future much more value than any cryptocurrency existing today, with expectations of becoming a refuge for the financial industry and an alternative form of payment to the banking system. Thus, the Eauric would become a dual-functional cryptoactive.
All the elements described above generate a new system, which is disruptive, and the valuable financial tool of this new system is the Eauric. The Eauric for being the first value financial tool of
this new disruptive system will have a preponderant value and competitive advantage, which will give it a very high value compared to subsequent cryptocurrencies or crypto assets that try to enter this new system. Finally, the value of the Eauric will be much higher than any other currency due to the elements described here, exceeding the value that gold represents.
Being the first cryptoactive in the Blockchain for universal use (Eleutherus), first cryptoactive with gold backing, the first instrument that will allow the massification of gold in the Eleutherus ecosystem which will be the largest in the world, among many other reasons, will make the Eauric have a considerably higher value than traditional gold and cryptocurrencies today known.
7.-Reward to miners
One factor in Eauric’s success is having a large number of miners, who will be drawn to participate in maintaining the Eauric network due to the excellent commissions they can receive for each Eauric exchange transaction between wallets.
To do this, according to the value that the Eauric has at a certain moment, a formula called reward calculation will be created that will be adjusted every 30 minutes. The parameters that will be
considered in this calculation will be mining difficulty, block generation time, block size, number of operations in buffer and time in which the operations manage to obtain 3 verifications.
This reward must guarantee the following:
a) The operation has 3 confirmations in less than 1 minute
b) The commission received by each miner is attractive so that it continues to work for the Eauric network while adding new miners
c) The value paid by the user of the network is competitive in relation to other similar financial operations, in order to continuously increase the number of users and the number of operations carried out on the network.
8.- Spreading Wealth
The total Eauric to be initially placed will be 200,000 Eauric, of which 100,000 Eauric will be held by Electrumchain for its own use. The Eauric or its fraction purchased in the initial offer will have the following provision: one will be for the buyer and the other for Electrumchain. So each purchase made must be in pairs.
The Eaurics corresponding to Electrumchain will be distributed gradually over time as follows:
Marketing Reserve (10%): Allocated to marketing activities, driving brand awareness and user acquisition. 10,000 Eauric.
Ambassadors & Affiliates (10%): Used for expanding into new markets, and build local communities. 10,000 Eauric.
Business Development (30%): Community activities and collaboration with third parties, as well as for investment in selected project of interest. 30,000 Eauric.
Research, Development & Team (20%): To be distributed as an incentive among early team members, for platform development and seeding new projects. 20,000 Eauric.
Liquidity Provision Funds (15%): Used to provide liquidity in Electrumchain. 15,000 Eauric.
Risk Reserves (10%): Reserved for unexpected and serious events that disrupt operations, and to potentially compensate user of Eauric. 10,000 Eauric.
Custody and Certification (5%): Initial Custody and Certification of gold storage payments. 5,000 Eauric.
9.-Token Release Schedule
Electrumchain will partially invest these resources in the span of 5 years.
The initial price of the Eauric will be the one corresponding to three times the gold price of the day of the Sale Round, at 9:00 am in the London market.
The unit of sale will be the Peebles which is 1/10000 part of the Eauric. A total of 2,000,000,000.
Peebles will be offered. Peebles offers will be made in pairs, that is, in multiples of 2, of which only half of what is offered will be delivered to the offeror.
11.-Conversion / investment of the public offer in gold
Once the initial public offering is closed and when 100% of the liquidity of these investments is available, we will proceed to buy the gold that will support each Eauric. This means managing the
purchase, storage and custody contracts for the gold to be purchased.
In case of not selling all of the Eauric, the corresponding adjustment will be made to issue only the number of Eauric purchased with the income received so that parity is maintained 1 Eauric = 1 troy ounce of gold. If this is the case at a later date, a public offer will be made to sell the remaining Eaurics, which may have a different condition than the public offering.