Today we will talk to Igor Chugunov, the founder of the CREDITS. This is a new cryptocurrency with the updated blockchain, quick and cheap transaction performance and maximum possible transparency and reward. Let’s try to reveal the issues most acute for all those interested in the cryptocurrency market.
How would you describe your platform in one sentence?
A decentralized platform able to perform millions of operations per second at very low price with truly full-scale and advanced smart contracts.
What is the difference of CREDITS tokens from those of other cryptocurrencies?
We have realized that it is tremendously difficult to build a quick and all-users convenient system based on the blockchain technology used for most of the cryptocurrencies. This is why we decided to create our own cryptocurrency system to overcome all the disadvantages of Bitcoin, Ethereum and other cryptocurrencies.
CREDITS (CS) are just the same virtual tokens used in other systems with the only difference that they are available right away. Our system does not have mining; all those who are interested buy CREDITS(CS) on ICO (i.e. Initial Coin Offering, the analog of crowdfunding in the sphere of cryptocurrencies). This is how we save the users PC’s from mining, decrease the complexity of block search (there is no need to set the complexity so to restrain the mining of tokens), and make a transaction as quick as possible.
This will also minimize the commission for a transaction and, gives the opportunity to link up smart contracts. One more novelty of the CREDITS platform is a brand new kind of full-scale smart contracts. Not everybody knows that the Ethereum’s opportunities are limited, and users cannot implement everything they may want to. For example, you cannot adjust regular debit payments or a fixed debiting date. In this situation, you need to send a command to perform this or that operation from the external system. The CREDITS platform is really a full-scale autonomous system able to perform all of these operations.
When did you start the CREDITS development?
We developed the concept late in 2016 and received first investments by the end of the year. Venture investors brought 200 000$ in our startup. Our team started developing the CREDITS platform in January 2017. We have gone through the stages starting from the concept development up to the MVP launching (Minimum Viable Project). At the moment we are working on the full-fledged Alpha-version.
How did you build your team?
We recruited the developers who knew everything about cryptocurrencies and dream about improving the existing technologies. Everybody understands that big companies regard cryptocurrencies as a toy for geeks, and everybody in the CREDITS team want to prove that cryptocurrencies have a big future. This is why we have set the goal to create a serious financial tool to perform transactions of thousands of dollars value with the speed and commission that none of the banks in the whole world may offer. It is worthwhile to mention a team leader and a director, who managed to unite people in a team and obtain the investments in developing the project.
Valentin Antonov was chosen as a team leader. He has a ten years experience in developing financial and banking systems. He followed the progress of Ethereum during last several years and worked on troubleshooting and on optimizing the operation in overloaded conditions, and now he is implementing his ideas in CREDITS.
Evgeny Butyayev is a technical director, a developer with a ten years experience in finance. He was studying and upgrading blockchain technologies for a Polish company SRI Infotech during last three years.
The presentation mentions that your platform permits the development of own smart contracts. What programming language is needed for that?
Smart contracts are written in Java, later we plan to support other popular script languages. Java was chosen due to the code for a virtual machine, which makes it possible to start a contract on any device and secure from intrusion during the implementation. Smart contracts are accomplished like other transactions, i.e. the performance info is recorded in CREDITS blockchain. We were the first to offer the opportunity of performing all of the operations related to smart contracts autonomously without any exterior systems, which permits the creation of fully independent services. However, if you want to create regular debit payments only for Ethereum smart contracts, that’s impossible because you will need an exterior system to set commands to another system.
Our system is truly full-scaled and does not require any other exterior system. It will be feasible to create completely decentralized new generation services in the future. For example, crediting robots who lend credits automatically as it is specified by the algorithm within a smart contract. These are amazing opportunities.
How can your system process more than 1 000 000 transactions per second? Canit scale to 3 000 000 and 5 000 000. Is it a parallel processing or some kind of internal data condensation?
Bitcoin, Lightcoin and some other classical cryptocurrencies use a complex validation of transactions and hardly the best possible solution for distributing the computing resources. For example, Bitcoin sets a limit for the speed of a new block search so that 144 blocks on the average were created within twenty-four hours, with a limited number of transactions in each. The transaction priority depends on the commission to be charged, and the accomplishment of its record into the blockchain needs 8 confirmations from different nodes. A full blockchain takes hundreds of gigabytes and, definitely, this factor does not increase the speed of the transaction validation.
Our system uses upgraded and optimized blockchain called ‘Registry’. The main difference from the classical blockchain is that a unique number is given to each block. Quick synchronization is implemented by this number only. Necessary blocks are uploaded from other nodes if needed, limited deciphering is made for validation which quickens the process as well. This one mentioned and some other factors permit compressing the data to up to 90% to save the space on the CREDITS network nodes.
How are the blocks processed? Did you manage to keep a conventional decentralized system?
We have created a hybrid system with three types of nodes: usual nodes, agent nodes and master nodes. The nodes status is determined by its power and the accuracy of calculations. All nodes can make a request for performing a transaction, but agent nodes do the primary checking and make a white-list of transactions. The master node decides upon the transaction performance, records it into the block and adds this block to the Registry.
Why should the owners of agent and master nodes maintain the operability of the system? Why did you refuse from mining?
Mining and permanent fluctuations of currency scare away serious businessmen who want stability and to feel confident about purchased tokens not losing their value. This is why we refused from mining and made all tokens available for users right away on the CREDITS start. As a matter of fact, our system works just like real money.
CREDITS cryptocurrency is a universal means of payment which cannot be stolen or faked. You can use our coins to pay for the services, to make and implement smart contracts. Any operation related to crediting is either reading a block or recording a block into the blockchain. Any node reads a block for free; meanwhile the recording requires some resources of the master node and must be paid for.
A small commission is charged for each of the write operations like transaction, making or implementing a smart contract. 50% of this commission is paid to the master node that recorded the operation into the blockchain. The rest of the commission is distributed among the agent nodes.
This strategy solves the problem of the network overload, because only the potential master nodes have the motivation to increase their power, besides it prevents malefaction (those who love easy money won’t take backbreaking loans to build a farmhouse) and, cheapens the commission. The owners of master nodes will be motivated to keep their server working thanks to a good passability of CREDITS, quick transaction performance and a transparent system of rewarding.
You mentioned three types of nodes, so how does the system decide upon the status to be given to this or that node?
All system nodes are checked after a certain period by calculating a checksum of blockchain via BLAKE2. The current master node is also solving this task, meanwhile the other nodes send their solutions with time marks. The master node selects the correct solutions and grades them by the processing time required.
Certain percentage of the quickest nodes become master nodes, and some of them are given the status of agent nodes. Agent nodes cannot retain their status in succession of two iterations one after another, which keeps the system decentralized.
What are the functionalities of masternodes?
We have created a hybrid system with three types of nodes: usual nodes, agent nodes and
master nodes. The nodes status is determined by its power and the accuracy of
calculations. All nodes can make a request for performing a transaction, but
agent nodes do the primary checking and make a white-list of transactions. The
master node decides upon the transaction performance, records it into the block
and adds this block to the Registry.
How many credits are needed to run a masternode?
A node can become a master node only once and for a certain period of time within
which a valid number of iterations can be comprised by the choice of the master
node. It is impossible to predict which node will become a master node next
time, and this is why it is not feasible to somehow affect the master node in
order to hack the system through faking the blockchain.
What is the block reward percentage of masternodes?
CREDITS cryptocurrency is a universal means of payment which cannot be stolen or faked. You can use our coins to pay
for the services, to make and implement smart contracts. Any operation related
to crediting is either reading a block or recording a block into the
blockchain. Any node reads a block for free; meanwhile the recording requires
some resources of the master node and must be paid for. A small commission is
charged for each of the write operations like transaction, making or
implementing a smart contract. 50% of this commission is paid to the master
node that recorded the operation into the blockchain. The rest of the
commission is distributed among the agent nodes.
Can you provide a link in links to any members of the team?
- CEO & Founder Igor Chugunov
- CTO & CoFounder Evgeniy Butyaev
- Head of investment relations department David Kolmakhidze
How many Credit tokens are needed to create a usual node or an agent node or a master node?
We don’t have any requirements for the amount of Credits on account to be a node.
What are the server requirements to publish a master node?
There are no certain requirements, however, it is important to have a stable channel with a good internet connection, otherwise, nodes will not be transceived in time.
What nodes are considered to be quick?
Solving the task via BLAKE2 does not occupy much time, what really matters is the speed and passability of your internet connection. Master nodes deal with the nodes search as they have good internet access and are the most powerful in the network by definition. Agent nodes are usually standard user’s PC’s almost not loaded by the CREDITS system unlike other cryptocurrencies with a mining option.
Why is your system considered decentralized if it has master nodes?
A node can become a master node only once and for a certain period of time within which a valid number of iterations can be comprised by the choice of the master node. It is impossible to predict which node will become a master node next time, and this is why it is not feasible to somehow affect the master node in order to hack the system through faking the blockchain.
Why do you consider the passability to be the main advantage of the CREDITS? What can this characteristic show at?
An ordinary user is asking: “Why should I use cryptocurrency if the Bitcoin payment lasts for some hours and some minutes in the Ethereum? Why should I refuse using a standard credit card?” We are going to offer quicker and more lucrative tool for money transfers which will suit both ordinary people and business.
Tests and calculations prove that the CREDITS is able to perform up to 1 000 000 operations per second. That means that money will be immediately charged off from your account and credited to the account of your addressee upon the transaction event. Maximum transaction time is 3 seconds, and the minimum is 0.01 second. It all depends on the internet connection speed. Just imagine you are in a shop and scan QR code on your phone, and the cash register immediately issues the check.
The cost of one transaction (commission) is approximately up to 0.001% of the US dollar value. This is a differentiated commission. A bank to bank money transfer from a standard credit card usually costs from 0.5 to 2% of the amount. Momentary, safe and cheap transfers have already attracted the attention of some US and Japanese companies who are consulting us in financial issues and wait for the launch of the Alpha-version not less than we do.
We are also implanting the archiving system into blockchain which will prevent from uploading dozens of data gigabytes of all transactions in the network.
This will permit using the CREDITS not only on PC’s, but also on budget-friendly smartphones, smartwatches and other devices. Imagine you order a coffee in a vending machine with your smartphone, choose a recipe on your display and immediately pay for your drink.
We refused from the classical Merkle tree (a method of confirming the authenticity and completeness of blockchain) and developed our own algorithms that enable the Registry to work many times faster.
Do you plan to use the registry’ in other projects except for CREDITS?
Yes, blockchain and the Registry have unlimited opportunities. Blockchain secures deals, makes electronic payments available and almost free. For example, the cost of a transfer will not depend on the distance and boundaries.
Payment for the coffee in a vending machine and a money transfer to Brazil will be charged the same commission and accomplished in seconds. It is also possible to use the Registry for keeping, validating and analyzing the data by the network participants. For example, KYC (Know Your Client) will become much easier for the companies will be able to track all of the transactions and the account’s reputation.
The development of smart contracts is also based on the Registry. The history of the contract fulfilment will be recorded in the Registry, and the contracts will be made only on the feasibility condition of all parties to perform the contract obligations and fulfilled upon the occurrence of conditions specified in the contract.
This will employ blockchain for the insurance: the confirmation of the insured accident will start up the smart contract and the payment to the aggrieved party. On the other hand, all operations are recorded in blockchain and that tracks fraudsters easily.
We have heard that your system awoke some interest in Singapore. Is that true?
Singapore is one of the three financial centers of the world. The Ministry of Finance of Singapore takes an interest to blockchain as a tool for quick, reliable and cheap transactions. This is why our project attracted the attention of their businessmen and state authorities for we offer not only a transaction service but a brand new technology for blockchain, smart contracts and a new method of a network setup.
For more information please visit: credits.com
We thank Igor Chugunov for the interview.