Silvercoin - An optimised blockchain solution and the tokenisation of physical precious metals. Authors: David Benhamou and Nicholas Levy

Transcription

1 Silvercoin - An optimised blockchain solution and the tokenisation of physical precious metals Authors: David Benhamou and Nicholas Levy June 2017

2 Overview Silvercoin is an innovative platform that lies in the intersection of traditional market trading, precious metal and the next generation of blockchain technology. The platform uses a stateof-the art optimised blockchain database that is backed by one ounce of silver at launch. The Silvercoin platform is proven to outperform all other blockchain technologies for performance, security and ease of use. Each Silvercoin is backed by one ounce of silver and 70% of profits are reinvested to increase the amount of silver per Silvercoin. Silvercoin is a user-centric organisation, the Silvercoin founders and committee members are dedicated to solving the key risks and issues associated with the cryptocurrency market. Silvercoin Investment Solutions The word silver translates to money in more than 14 languages. Historically precious metals - mainly silver has been utilised as a trustworthy store of value. The Silvercoin platform combines cutting edge optimised blockchain technology with the stability, reputation and track record of silver. No other investment class offers such an attractive and exciting opportunity. Silver has more than 5000 years of history as physical money, this has stayed secure and maintained value during this time. A contemporary view is that the cryptocurrency is mutually exclusive to a defensive investment such as silver. However, the innovative tokenisation of a tradable physical silver backed cryptocurrency offers the best of both worlds and address the core deficiencies associated with the crypto market that at any moment the value can plummet to zero. Silvercoin bridges the gap between the exciting exponentially growing crypto market and the trusted international physical silver trade. Conservative projections indicate a significant growth and appetite to revolutionise silver trading with a decentralised cryptocurrecny backed by silver. Silvercoins are backed with certified.999 physical silver to transform the product offering with an unmatched level of security, compared to other cryptocurrencies. Physical metal will be purchased, stored, insured and traded with the highest standard and independently

3 governed by one of the Big 4 accounting firms. Our smart contracts mean that ownership and certification is managed and automated by the blockchain. Silvercoin Each Silvercoin is powered by the our optimised blockchain solution and represented as a digital asset and delivers high speed execution on a secure platform, giving our users a competitive advantage over other coins. Silvercoin offers significant value by integrating physical silver trading to mitigate extreme downwards volatility associated with crypto assets. Silvercoin with the unique and trusted offering will be the standout performer and choice for mainstream investors who desire a low risk market instrument with exposure to the cryptocurrency market. Acquisition of Physical Silver Bullion Silvercoin buys fine London Bullion Market Association (LBMA) certified silver bullion to maintain the backing of one ounce per Silvercoin. Each silver ounce is attributed to the holder through the blockchain technology and the smart contracts that automate the verification, distribution, ownership and transactions information related to trades. Silver investment is secured independently by a third party and no new coins are issued until there is sufficient reserve in the stores. Profits are re-invested to buy more silver and the acquisition of this amount is automated by the smart contracts. Australia USA Peru Russia Mexico Chile Proof of Ownership Registration Mint Silvercoins are governed by smart contract which guarantees and manages ownership automatically. Each Silvercoin is backed by one ounce of silver and is divisible by 0.01oz. Each transaction is

4 Trade Silvercoin is a tradable secure blockchain currency. The silver coin can be traded on all major exchanges and can easily added to your online wallet. At present the Silvercoin can be traded at any time. Each exchange charges its own fees and a levy from each trade. Each transaction is registered and tracked as part of the optimised blockchain and automated using our smart contracts. Token Registration The Silvercoin platform The first round of coins released entitles the holder to ownership in the business. This will vest at certain times that will be determined closer to the initial coin offering (ICO). Essentially all holders of the Silvercoin will be part owners of the business. A portion (70%) of profits that are made from the transaction levies will be allocated to the silver reinvestment scheme and the remaining balance will be distributed as dividends to the SLV holder. This process will be executed and managed by the smart contracts. This in turn reduces the amount of administration required from the team. Physical asset trading as part of the operations for the SilverCrypto platform requires a trading fee of 1% for buying and selling to the bullion exchanges and a holding/insurance fee operating expense. Smart token Growth Plan Silvercoin physical conversion centres are located at nine locations around the world. This will enable the transfer of cryptocurrency to physical commodities simpler, efficient and costeffective. Silvercoin has the desire, resourcing and capability to extend the offering to other physical assets as part of our tokenisation strategy. This will facilitate a wide variety of products to meet the needs of any investor s appetite such as gold or platinum.

5 Silvercoin is in a state of continual product development and innovation. The investment committee is in discussions with industry leaders to ascertain the optimal mix of physical assets and tokenisation to maximise value for our community. The core focus of Silvercoin is to make it easy for the general public to take advantage of blockchain technology when it comes to investing in precious metals. Silvercoin physical precious metal secure vaults locations New York London Zurich Dubai Hong Kong Singapore Sydney Enterprise Gateway Business that want to capitalise on our proven optimised blockchain technology solution but need expertise and assistance to implement. Can now take advantages of an enterprise ready solution and accelerate their use case by connecting with our community members or access to our development team. Our community structure is focused on taking blockchain technologies to the next stage of adoption and we are excited to enable implementations of smart contracts, record management and decentralising databases. Our mission is to make the Slivercoin solutions the go-to hub for research, investment, business or enterprise applications of the optimised blockchain technology solutions. Limited Downside, Unlimited Upside FIAT (paper money) currency has had a volatile lineage; the average lifespan of FIAT currency is 27 years due to the significant devaluation over time. The fact that the central banking systems have the power to issue new currency at will, in conjunction with the adverse nature of inflation the value of FIAT always depreciates

6 consistently. It is not possible for a currency to provide stability certainty, however Silvercoin mitigates your risk. The baseline value of Silvercoin will always be equivalent to (at minimum) to the spot price of silver. Underpinning the intrinsic value is the innovative application of a precious metal backed cryptocurrency and the additional demand will add value to the silver bullion and to the Silvercoin. So, silvercoin has a valuation methodology that is broken down into three sections to determine a market price. Firstly, the physical silver (S) market to market at the spot price, secondly, is the present value of the levy (L) reinvestment to buy more silver and lastly the implication to demand by the Value of innovative application of tokenisation (V). Silvercoin = S + L + V Growth with every transaction Every Silvercoin transaction generates a 0.025% transaction fee. In comparison to other cryptocurrencies, in Silvercoin, 70% of all profits are reinvested to acquire more silver to increase the value of silver that is backing each coin. As the volumes increases, more silver will be acquired, benefiting everyone in the ecosystem as the value of Silvercoin increases as a result of the design of profit re-investment as time and trading frequency increase. This in turn is what sets Silvercoin out as the standout performer and a unique investment opportunity with a perpetually increasing asset value. The adoption and uptake of a new cryptocurrency is generally low. A number of strategies and tactics will be implemented to enable rapid real-world adoption of the Silvercoin as a standard. Silvercoins are issued and redeemable across the world through our bullion trading desks globally. Post ICO the Silvercoin will be freely traded on all major exchanges, through your wallet or at any of our bullion desks. Technical Specifications Silvercoin is powered by our NextGen proprietary blockchain design that is proven to use 2000 times less power compared to bitcoin in a comparable system, therefore more environmentally friendly compared to the competition. Our technology and accounting

7 standards are independently certified by top tier accounting firms. The performance and security of our currency puts us in a different league compared to our peers. Conclusion This paper has provided a brief overview of some of the main features and benefits that silvercoin solutions have developed. The solutions that we design and deliver are enhanced by machine learning and innovative applications of technology. We will do this by exploiting technology for the benefit of creating an ecological sustainable future where all parties are winners.