- Introduction
- Motivation for Forking Monero
- Core Features of the Fork
- Privacy Enhancements
- Proof-of-Work Consensus Mechanism
- Tokenomics
- Technical Specifications
- Mining and Network Security
- Governance Model
- Use Cases
- Future Roadmap
- Conclusion
This white paper presents NewCoin, a cryptocurrency project forked from Monero, focused on enhancing privacy, decentralization, and security. NewCoin inherits Monero's commitment to anonymous transactions and privacy but introduces new improvements aimed at strengthening decentralization and keeping mining accessible to individuals. It employs an enhanced Proof-of-Work (PoW) consensus mechanism to ensure network security without sacrificing decentralization.
Monero’s reputation as the premier privacy coin stems from its advanced cryptographic privacy technologies, but NewCoin aims to build on this legacy by addressing some of the challenges Monero faces, such as scalability, and making mining more equitable.
Monero has established itself as one of the most secure and private cryptocurrencies, but challenges have emerged:
- Mining Centralization: Although Monero is designed to be ASIC-resistant, the increasing power of mining pools and the centralization of mining resources remain a concern.
- Scalability: The need for increased transaction throughput while maintaining strong privacy features is critical as network usage grows.
- Decentralization: Enhancing the decentralization of mining operations and preventing large entities from dominating network power.
NewCoin addresses these issues while maintaining its foundation in privacy, security, and community governance.
NewCoin builds on Monero's existing strengths with the following key features:
- Strong Privacy: Incorporating Monero's ring signatures, stealth addresses, and Ring Confidential Transactions (RingCT).
- Enhanced Proof-of-Work Algorithm: An improved PoW algorithm to ensure mining remains fair, accessible, and ASIC-resistant.
- Scalability Improvements: Dynamically adjusting block sizes to handle increased network demand.
- No Pre-mine: Ensuring the project remains decentralized from the start with no pre-mined tokens.
NewCoin continues to provide robust privacy, building on Monero's industry-leading technology:
- Ring Signatures: NewCoin continues to obscure transaction origins by using ring signatures, making it impossible to determine the exact sender.
- Stealth Addresses: Every transaction uses a one-time stealth address to ensure that recipient addresses remain private and untraceable.
- Ring Confidential Transactions (RingCT): Transaction amounts are hidden by default, ensuring financial privacy.
NewCoin retains a Proof-of-Work (PoW) consensus mechanism, optimized to remain ASIC-resistant, ensuring a decentralized and energy-efficient mining process. PoW ensures that the network is secured by miners who solve computational problems to validate transactions and create new blocks.
- ASIC Resistance: NewCoin uses an updated PoW algorithm designed to prevent the use of specialized hardware (ASICs), ensuring that mining remains accessible to average users with consumer-grade hardware (CPUs and GPUs). This ensures a fairer distribution of rewards and prevents mining centralization.
- Mining Equitability: NewCoin’s PoW algorithm discourages large mining farms, distributing network power across many participants for true decentralization.
- Dynamic Difficulty Adjustment: The difficulty of the PoW is adjusted dynamically to maintain consistent block times, ensuring that increased hash power does not lead to network instability.
By focusing on ASIC resistance and equitability, NewCoin ensures that mining remains accessible to a broader range of participants, preventing mining centralization and ensuring the security of the network.
- Total Supply: The total supply of NewCoin will follow a similar model to Monero’s tail emission. This means that the coin will initially have a supply cap, but after a certain point, a small, fixed amount of NewCoin will be emitted to reward miners indefinitely, ensuring long-term network security and avoiding supply shocks.
- Mining Rewards: Miners are rewarded with NewCoin tokens for validating transactions and securing the network, with block rewards gradually decreasing over time until tail emission starts.
- Consensus Algorithm: Proof-of-Work (PoW)
- Hashing Algorithm: Custom ASIC-resistant PoW algorithm based on RandomX (inherited from Monero), further enhanced to prevent centralization.
- Block Time: Approximately 2 minutes
- Block Size: Dynamically adjusted to handle network demand, maintaining scalability without sacrificing decentralization.
- Privacy Technologies: Stealth addresses, ring signatures, Ring Confidential Transactions (RingCT).
NewCoin’s security model is built on the decentralized power of PoW mining. Key security features include:
- Decentralized Mining: By preventing ASIC dominance and ensuring that mining remains feasible for individual users, NewCoin achieves true decentralization in its network security.
- Dynamic Difficulty: The difficulty of mining adjusts dynamically to accommodate changes in hash power, keeping block times consistent and ensuring network stability.
- Network Security via PoW: Each block added to the blockchain represents computational work, making it difficult for bad actors to reorganize the chain or carry out 51% attacks.
NewCoin adopts a community-driven approach to governance, ensuring that future upgrades and changes to the protocol are decided by stakeholders without the influence of centralized entities.
- Open Source Development: All development will be open-source, with community contributions encouraged and integrated through transparent processes.
- Community Proposals: Stakeholders can submit and vote on proposals for network improvements, ensuring that all major decisions are made by consensus.
- No Central Authority: NewCoin operates with no central governing body or corporate structure, ensuring that the project remains decentralized and resilient to outside influence.
NewCoin is designed to serve several important use cases:
- Private Transactions: Users can transfer funds with complete privacy, ensuring that financial data is not exposed.
- Decentralized Finance (DeFi) Integration: NewCoin can be used as a private, secure currency in DeFi applications, enabling anonymous participation in decentralized markets.
- Mining Rewards: Users with standard consumer hardware can mine NewCoin, contributing to the security of the network while earning rewards.
- Secure Payments: Businesses and individuals can accept NewCoin for secure and anonymous transactions, benefiting from its robust privacy features.
NewCoin’s development will focus on continuous improvements in privacy, scalability, and user experience. Key milestones include:
- Year 1: Launch of the mainnet, initial PoW mining, and community outreach for governance participation.
- Year 2: Integration with DeFi platforms, development of wallet solutions, and partnerships with businesses for private payments.
- Year 3 and Beyond: Continued optimizations of the PoW algorithm, scalability improvements, and exploration of advanced privacy techniques like zk-SNARKs.
NewCoin offers a next-generation cryptocurrency platform focused on privacy, decentralization, and equitable mining. By forking Monero and improving upon its privacy technologies and mining mechanisms, NewCoin creates a secure and scalable environment for private transactions. With its PoW-based consensus, ASIC resistance, and community-driven governance, NewCoin is positioned to offer a truly decentralized and privacy-centric alternative to existing cryptocurrencies.