543x.com Whitepaper

543x.com Whitepaper

Please list and briefly describe the three ways that the Satoshi database is stored.

How are Bitcoin and Ethereum classified in the context of 543x.com?

Please briefly describe what tokens are and how they relate to smart contracts.

What is the potential role of hot and cold wallets in managing Satoshis?

Briefly describe the components of a digital asset network and how they interact.

What is a Satoshi and how does it relate to Bitcoin?

What is transaction change and why is it important in a digital asset system?

What role do miners play in a digital asset network and how are they rewarded?

What are the two specific types of keys mentioned in the 543x.com whitepaper and what is their respective purpose?

Answer

(1) Maintained in a blockchain (such as the Ethereum blockchain). (2) Initially maintained by the issuer or its agent as a database in a sidechain and then published and stored as part of the blockchain. (3) Maintained directly on the blockchain.

Bitcoin and Ethereum are classified as digital mathematically based assets. They are decentralized digital currencies based on cryptographic algorithms that can be traded on a peer-to-peer network.

Tokens are smart contracts that run on a blockchain network, such as the Ethereum blockchain. They can represent anything from loyalty points to vouchers to physical objects in the real world. Tokens are also tools, such as in-game items, that are used to interact with other smart contracts.

Hot wallets can connect to the internet and provide fast transactions, while cold wallets remain offline, are more secure, and are suitable for long-term storage. Issuers can use this combination to effectively and securely manage the creation and distribution of Satoshis.

A digital asset network consists of multiple end users connected through a data network such as the internet. Each user runs a digital asset client that contains a copy of the network's source code and transaction ledger. Users make transactions through this network, which are verified and added to the ledger.

A Satoshi is the smallest unit of Bitcoin, equivalent to 0.00000001 (10^-8) of a Bitcoin. It is used to provide divisibility when transactions smaller than one Bitcoin need to be made.

Transaction change is the difference between the amount used as a transaction input and the amount sent when a transaction is made in a digital asset system that cannot be divided into smaller parts, such as Bitcoin. Since the input cannot be divided, any remaining amount is returned to the sender as change.

Miners ensure the security and integrity of the digital asset network by validating transactions and adding them to the blockchain. They compete for this right by solving complex computational puzzles, and the first miner to solve the puzzle has the right to add the next block to the blockchain and receive a reward in the form of newly created digital assets and transaction fees.

The public key can be shared publicly and is used to verify transaction signatures. It is paired with a private key, which must be kept secret and is used to sign transactions and authorize the transfer of funds from an associated wallet.

Satoshi: A digital token pegged to a fiat currency (such as the US dollar) that is designed to maintain price stability.

Smart Contract: A self-executing contract that automatically executes and enforces the terms of an agreement on a blockchain.

Blockchain: A decentralized and distributed ledger of transaction records maintained by multiple computers in a network.

Digital Asset: Anything of value that is stored electronically and secured using cryptography, including digital mathematically based assets and tokens.

Digital Mathematically Based Asset: A digital currency (e.g. Bitcoin, Ethereum) that uses cryptography to secure transactions and control the creation of additional units.

Oracle: A third-party service that provides external data to a blockchain, enabling smart contracts to interact with real-world information.

Sidechain: An independent blockchain that runs in parallel with the main blockchain, allowing interoperability and asset transfers between the two networks.

Hot wallet: A digital wallet connected to the internet that provides fast transactions but is less secure than a cold wallet.

Cold wallet: A digital wallet that remains offline, provides greater security, and is suitable for long-term storage.

Public key: A cryptographic key used to verify transaction signatures and can be shared publicly.

Private key: A cryptographic key that must be kept secret and is used to sign transactions and authorize the transfer of funds from an associated wallet.

Satoshi: The smallest unit of Bitcoin, equivalent to 0.00000001 Bitcoin (10^-8 Bitcoin).

Transaction change: The difference between the amount entered as a transaction input and the amount sent when a transaction is made in a digital asset system that cannot be subdivided.