# What is Bytom2.0

# Introduction

Bytom Blockchain Protocol, a dedicated public chain platform for the asset field, its most important function is to connect the atomic world and the bit world, and promote the interaction and circulation of assets between the two worlds. Specifically, different forms of heterogeneous bit assets (native digital currency, digital assets) and atomic assets (warrants, equity, dividends, bonds, information with counterparts in the traditional physical world) running on the Bytom) can be registered, exchanged, gambling, and contract-based interactive operated on Bytom.

The solution provided by Bytom 1.0 involves the main chain adopting PoW, which is responsible for asset issuance, and the side chain adopting PoS, which is responsible for transaction efficiency. It needs to pay for the cost of operating the nodes of the two chains. Each year, 80 million BTM is paid to main chain miners and 10 million BTM to the side chain nodes. This brings a heavy economic burden to the BTM ecology.

Based on this, we propose the architectural concept of Bytom 2.0: the combining of the architecture of "one main side and one side chain" into a unified platform, to integrate a multi-asset DeFi protocol onto the unified platform, optimize the asset flow efficiency, connect the bit world and the atomic world, and better serve the vision of "putting assets on-chain".

# Innovation

# New Vision

Based on the Vapor side chain architecture and the multi-year operation and implementation of MOV open financial platform, Bytom, chose to re-examine its historical position and decided to usher in a new era of Bytom 2.0:

  • PoW Bytom blockchain evolves into PoS Bytom blockchain
  • Build an united PoS Bytom blockchain on Vapor, turn the architecture of "one main side and one side chain" into a unified platform
  • Build an economic model of deflation to help the BTM holders participate in the underlying construction of public chain and gather consensus
  • Better focus on compatibility with external ecosystems and contract systems to serve the open financial strategy of MOV
  • Fundamentally realize the mission of value capture for BTM

# New Economy

Bytom 2.0 will thoroughly reform its economic model, gather new consensus from the basic perspective of a deflationary economic model, and improve the efficiency of value capture, which is embodied in the following three aspects:

  • Reduction of total amount - after changing from POW Bytom to POS Bytom 2.0, there will be no mining reward of about 80 million BTM per year in the future, and the total amount of new BTM will be reduced from 2.1 billion to about 1566 million BTM.
  • Reduction of total circulation volume - in order to achieve sufficient system security boundaries, assuming all or most of the 1.566 billion BTM in circulation are migrated to the Bytom 2.0 PoS blockchain, the verifier group will need to hold a large number of BTM to participate in the long-term staking. As a result of this high staking rate, a large part of the total 100 million will not be in circulation (the amount will be far more than the current amount of the Vapor verification pledge). The successful implementation of PoS will further reduce the total circulating supply of BTM.
  • The scale of annual additional issuance gets smaller - compared with the original chain 2.0, although the theoretical total amount is reduced and the total amount of free circulation is reduced in a real sense, it does not mean that there is no additional issuance. In order to maintain the continuous operation of PoS, the verifier group still needs a certain amount of BTM issuance as a reward in order to maintain an appropriate annual incentive. However, Bytom 2.0 guarantees that the annual additional issuance of BTM will be far less than 90 million at the present stage, with an upper limit of 30 million. The verifier group is more consistent with the collective interests of the public chain ecosystem, and represents a strong foundation for the long-term value preservation of the underlying token and overall ecosystem integrity.
  • Users will hold two kinds of BTM at the same time, but the team will only hold one - BTM upgrade will take the way of snapshot migration in a certain block. Since the miners of the original chain (bytomclassic, aka BTMC) may continue to maintain mining, bytomclassic can continue to exist with the support of decentralized computing power. The team will permanently burn all BTMC after upgrading, and only hold new BTM. But users may hold the two tokens at the same time after upgrading.

# New Consensus

New consensus is a new consensus mechanism, a new brand consensus, and a new BTM consensus.

Based on Vapor, the system of PoS economy is well constructed, making it a more solid and reliable consensus system for the new BTM. On one hand, DPoS+BFT, the existing Vapor consensus algorithm, needs to be strengthened and improved on the level of economic staking, on the other hand, a more detailed reward and punishment mechanism is needed to qualitatively reward and punish illegal and evil behaviors. Thanks to the mature operation of vapor for many years, the process of building a new consensus is anticipated to be smooth.

Bytom 2.0 can change the previous pattern from the underlying chain consensus level, let the real BTM interest holders enjoy the rights and interests of the underlying chain consensus construction, form the BTM value alliance, build up a long-term belief, and allow the community to better participate in the bottom-up construction of the ecosystem. A strong community is the most important support for public chain ecosystems and their underlying tokens. If the community can not participate in consensus building well, the most important support will not become the backbone of value capture. Therefore, the essence of the new consensus is to enable the community, trading platform and even the original miner groups to reach a consensus on the PoS-based Bytom 2.0 based on Vapor, to actively participate in the consensus verification group with BTM, to obtain a considerable annualized rate of return, and to enjoy the rights and interests of the collective construction of the underlying chain.

# New Platform

The new platform is not only a new smart contract platform but also a new ecosystem for developers. To be more successful, Bytom 2.0 will not only build a successful economic and consensus model and reshape the value of BTM, but it will also build a more general intelligent contract platform and developer ecosystem that seamlessly connects with the mainstream ecosystems such as Ethereum. This will thoroughly revitalize MOV, let MOV go out with the value of BTM, and truly realize BTM value consensus from the essence of circulation.

Seen in this light, Bytom 2.0 involves a brand-new platform strategy and a deep reform of its own development ecosystem. When the dual chain fusion becomes a "unified platform", the new Bytom blockchain removes the previous multi-channel barriers for developers and applications, is more friendly to new developers and involves reduced learning costs and entry barriers compared to the original chain. In the process of realizing interoperability with other public chain ecosystems, the underlying architecture is more concise and the operation is more efficient. One of the core missions of Bytom 2.0 is how to better deal with the developer group and cooperate with external ecosystems. Only by jointly building MOV can it become a truly open financial platform, with its advanced features becoming better known and appreciated by the wider DeFi ecosystem.

# New MOV

New MOV is the MOV of Bytom 2.0, and it is also a MOV moving towards the outer ecosystem. The new platform is powerful enough to make MOV gain new vitality. The new MOV is not only the MOV of Bytom 2.0, but also the MOV from the former ecosystem.

Last Updated: 8/11/2021, 6:08:10 PM