OBITO.IO

Bitcoin Cash Tokenization Platform

What’s Cool About OBITO?

  • A Security Token Platform
  • Integrates Tokenized Fiat
  • A Private Ecosystem Overlaid on the Public Blockchain
  • Patented Private Key Management
  • Compliance Compatible
  • Built on BITCOIN CASH

  • Nakamoto consensus
  • Self-adjusting difficulty
  • Unforgeable

PROOF

OF

WORK

  • Requires effort
  • Imbues value
  • Economic system

MINING

  • Deflationary currency
  • Retained value
  • Subdivide if needed

CAPPED

CIRCULATION

  • No central authority
  • Incentivised miners
  • Network pays cost

PERMISSIONLESS

  • Transaction costs
  • Free market forces

MARKET

BASED

FEES

  • Uncapped block size

SCALABLE

BITCOIN

CASH

PROTOCOL

SCALABLE

MARKET BASED FEES

PERMISSIONLESS

CAPPED CIRCULATION

PROOF OF WORK

MINING

Bitcoin Core

Ethereum

Corda

Ripple

Stellar

BITCOIN CASH

Banks

Custodian

Broker

Buyer/Seller

Traditional Model of Settlement Process

Buyers/Sellers

Brokers

Custodians

Stock Exchange

Clearing Agency

Market Maker

Depository

Registrar/

Bond agents

  • Market Maker provides a sell and buy spread on the product
  • Buyer/seller places an order with their broker
  • Broker executes the trade on the exchange, which matches buys/sells
  • Exchange sends trade details to custodians
  • Exchange sends trade details to clearing agency, which do novation
  • Custodians send instructions to, and confirm transfer with Depository
  • Custodians send instructions to, and confirm payment with bank
  • Custodians confirm delivery with the Clearing Agency
  • Custodians confirm payment with the Clearing Agency
  • Depository instructs Registrar to update the product registry

1

2

3

4

5

Banks

8,9

7

6

10

HIGH COSTS

SLOW SETTLEMENT

Unnecessary Intermediaries

Unnecessary data redundancies

Unnecessary processing

The process originated with a paper based system.

These entities still all exist even though it’s almost all digital

Duplicated data - Records of ownership are replicated in several places

Unnecessary processing – to replicate and update many databases in several places

Multiple reconciliations between parties

A Blockchain Example Model of Settlement Process

Issuer (I)

Alice (A)

2

3

Distributed

Repository

Bob (B)

I → I

Bond #123ABC

1

hash

I → A

Bond #123ABC

A → I

Tokenised Fiat

4

A → B

Bond #123ABC

B → A

Tokenised Fiat

B → I

Bond #123ABC

  • Issuer digitises an instrument (e.g. a discount bond) in fiat, crypto-signs it and logs into the Distributed Repository (cryptographically secure distributed shared database)
  • The Repository record is hashed and the hash used to tokenise a crypto-transaction
  • Alice buys the instrument in exchange for cryptocurrency
  • Alice sells the instrument to Bob for cryptocurrency
  • Bob redeems the token by paying the transaction back to the Issuer

The Blockchain itself, along with the network of nodes that validate it, replaces a plethora of intermediaries in the traditional model. The intermediaries it replaces include:

  • Registrar: ownership of financial instruments is definitive and unforgeable
  • Clearing agency: transaction transmission = payment; appearance on a block = settlement
  • Banks: peer-to-peer cryptocurrencies obviate the need for bank accounts and costly interbank transfers

Issuer creates a transaction in which he transfers the bond to himself. Now the bond is tokenised on the blockchain.

A bitcoin transaction can have multiple inputs and outputs – so it can contain two logical transactions locked together.

For example, compare capital markets: 2-day settlement

FAST

SETTLEMENT

Transaction fees < 2c USD

LOW

COST

On-chain solution handles multiple complex use cases

FLEXIBLE

Transfer/ownership is same process as for BCH. Processing is transparent to BCH network

SECURE

Tokens are standard BCH transaction. No need to burn any BCH

Smart contracts!

SUPERIOR

TECHNIQUE

Passed all stress tests.

More block size increases planned

SCALABLE

OBITO

ASSET

TOKENISATION

Tx

Tx

Tx

Locking script

Tx

Tx

Tx

Locking script

Tx

Tx

Tx

Locking script

Tx

Tx

Tx

Locking script

  • A single self-contained transaction
  • A chain or conditional tree of linked transactions
  • External oracles executing some contract logic
  • Hybrid of some/all the above
  • …and more (undisclosed)

IF Real-world event

Perform Routine A

ELSE

DO…DOEND

WHILE Condition = ‘X’

Execute XXX

LOOP

IF Real-world event

Perform Routine A

ELSE

DO…DOEND

WHILE Condition = ‘X’

Execute XXX

LOOP

IF Real-world event

Perform Routine A

ELSE

DO…DOEND

WHILE Condition = ‘X’

Execute XXX

LOOP

IF Real-world event

Perform Routine A

ELSE

DO…DOEND

WHILE Condition = ‘X’

Execute XXX

LOOP

Obito

Many techniques for programmed transaction implementation. Select depending on use case requirements…

For any further inquiries reach me at:

afai@obito.io

OBITO - Bitcoin Security Token Solution - Google Slides