PoC Project Lava Adopts Confidential Asset as STO Solution


STO is the inevitable process for the blockchain technology in pursuing and gaining wider recognition and legal compliance from the mainstream society.

Now STO is still in the early stage, it has a huge space for evolution. The most important thing for STO is compliance. But the regulatory policies on STO in various countries are still unclear, the whole market is lack of corresponding standards and restrictions. And because of the various types and standards of STO protocols, it will also increase the management complexity for Licensed investment banks to conduct audits and due diligence on the issuers and the underlying assets. Meanwhile, the seamless connection of cross-chain protocols between different assets requires high compatibility of the underlying system.

PoC's emerging project Lava is exploring adopts Confidential Asset (The following is replaced by CA) as a solution to issuing and trading on-chain STO assets to strengthen the connection between the crypto market and the real world. CA is an on-chain multi-asset issuance and trading scheme based on the UTXO model, whose reliability has been fully proven by the long-standing Bitcoin network.

CA solution provides on-chain assets excellent privacy and fungibility, which is superior to smart contract or dying/color solution. This privacy is completely selective and traceable. In contrast, Ethereum’s smart contract lacks privacy, and the ZCash’s zkSNAKRS grants no traceability. Fungibility makes on-chain assets have more liquidity and tradability. By comparison, both the "colored coins” and the smart contract solution destroy the fungibility, one of the most valued features required by an asset-issuing platform. In addition, the validation of the CA transaction requires endorsement by the consensus itself (i.e. the hash rate in PoW). This is different from the merely “hash it and put onto the blockchain.”

Lava is a Proof-of-Capacity backed global digital infrastructure where people can create, trade and manage real-world assets. The Lava main net was launched in August 2019. There is no ICO and no private sales when Lava was first established. Now, Lava is the second-largest PoC network in the world by capacity power in just about 6 months since its main net launch. Lava network is powered by its native token LV, LV now is available on HitBTC exchange and Bvnex exchange.

The PoC consensus adopted by Lava is a competitive consensus (like PoW), which provides extremely high security for the Lava network. Besides, the UTXO transaction model and Bitcoin codebase used by Lava provides long-term proven reliability and stability. PoC consensus is based on storage device mining. Storage devices are general-purpose devices and have stable economic value. The low power consumption of storage devices determines that PoC mining is difficult to produce geographical monopolies. In summary, PoC has extremely high decentralization characteristics, the expensive storage devices have an economic value, which provides trust endorsement for assets on-chain.

Lava provides its users and miners with complete facilities, including cross-platform (Win / Mac / iOS / Android) wallets, Plotting software, blockchain explorer, asset information platform, etc. All these facilities are developed and open-sourced by Lava, no relying on third-parties. Recently Lava launched the new PoC2+ plotting format. PoC2+ standard mathematically clarifies the ownership of the plot file, repairs the technical loopholes in the original standard. It has for the first time achieved a rigid attribution for the PoC capacity power and established foundation in the mechanism level for long-term development of  PoC ecosystem.

Relying on the robustness of the PoC consensus, together with a comprehensive and self-developed product line-up, Lava is currently building a multi-faceted STO ecosystem under the regulatory framework to meet the demand from customers, issuers, investors and traders across the globe. Lava will provide a set of STO business solutions, covering the issuance, trading, and management of security tokens, which subject to the global mainstream regulatory framework.

With the deepening of SEC and other securities regulatory agencies' exploring the blockchain technology, the STO regulatory framework is advancing towards maturity. Lava is cooperating with an STO license holder to exploring specific solutions for issuing STOs on Lava’s mainnet.

The challenge of the CA solution is how to ensure that the transaction can be verified and not double spent on the premise of having enough privacy.  In Lava's view, finding the best application scenario in the real world, rather than making it technically feasible, is the key challenge of STO. The core developers from Lava said:

”Just issuing and trading on-chain assets is never a problem in 2020, what we are considering now is adopting CA solution to further meet the regulatory requirements. As far as we are concerned, the best technical solutions are these which are available to more people and can be used by more people. And this is the most important part of our work this year.”

We're happy to hear that Blockstreamlaunched the LavaNetwork. Blockstream is the global leader in Bitcoin and Blockchain technology. We are looking forward to joining the Lava member alliance!
Our website：https://lavatech.org
Check the LavaNetwork here:https://twitter.com/Blockstream/status/1245382129917349892?s=20

Lava is soon on HitBTC

We are excited to announce $LV listing is going live on hitbtc. Here is the link:www.hitbtc.com

Online time: April 13, 2020
Open trading pair: LV / BTC
Exchange website: hitbtc.com



HitBTC is one of the world's leading international exchanges of encrypted digital currencies located in the United Kingdom. Since 2013, transactions have been provided for individual users. HitBTC is known for its advanced matching engine, multi-currency support and friendly customer service. HitBTC has more than 800 trading pairs. In addition to trading between digital currencies, it also provides trading pairs of fiat currencies and digital currencies, namely the US dollar and the euro market. Its innovation and technical characteristics lie in the creation of a stable and reliable API that meets the needs of algorithmic traders for high-frequency trading.HitBTC is a No.1 exchange in the world by the real liquidity according to CMC: https://coinmarketcap.com/rankings/exchanges/liquidity/

At the end of last year, Lava made comprehensive efforts in various aspects such as technical support, application construction, and docking trading platform, and was fully prepared for rapid development this year.

At the end of February, Lava tried to lead the industry standard, proposed a new PoC2 + protocol. The new protocol makes up for PoC2's technical loopholes, ensuring the security of PoC consensus. Through the PoC2 + protocol, it is possible to realize the right of computing power, promote the healthy development of various PoC projects, and lay the technical foundation for the long-term development of the entire POC ecosystem.

In mid-March, Lava held the first road show in Vietnam and received enthusiastic response. Therefore, lava landed on Bvnex, Vietnam's largest legal currency exchange, and conducted an online AMA event in the Vietnamese telegram group. This provides a good opportunity for Lava to expand the Southeast Asian market.

From April onwards, Lava will continue to harvest the results of the early stage, and I believe that the growth of Lava in 2020 will continue to surprise all community partners.

At this stage, Lava is docking various exchanges, investment institutions, mining pools, etc., and constantly recursively planning routes. From the perspective of development prospects, Lava will have a strong practical application scenario.

Please stay tuned!

RECAP AMA Lava x BVNEX
On April 2, Lava (LV) organized an AMA with Bvnex at Bvnex's Telegram Vietnam channel. The community is explained more valuable information and the future plan of the project. In general, AMA has gained strong support from the community and Lava has received many questions.
Here are all questions as well as all answers of Lava so those who missed AMA can learn more about Lava.

Part 1: Introduction of  Lava project
Lava is a Proof-of-Capacity backed global digital infrastructure where people can create, trade and manage real-world assets. The Lava mainnet was launched in August 2019. There is no ICO and no private sales in Lava's original period. Lava has secured a million-dollar-level investment from Infichain Technology, the only announced strategic partner with Cannan AvalonMiner, as the start-up launch funding.
In October 2019 Lava had its code open-sourced and available on GitHub: https://github.com/Lavaio/Lava
Lava is now the second-largest PoC network in the world concerning capacity power in just about 6 months since its mainnet launch and is heading for the crown of PoC. Recently Lava has partnered with HitBTC and Bvnex exchange, Lava's native token $LV will be listed on these two exchanges soon!
Advantages of PoC and what makes it special
PoC mining relies on storage devices, like hard disks, which is far more general equipment than GPU and FPGA and ASIC chips.
The best thing about this is: there will be no monopoly on mining devices, which means, anybody, anywhere in the globe, can join the PoC mining, no one can set entry threshold.
PoC has better decentralization characteristics than PoW while ensuring the same level of security and openness! Compared with PoW's hash computing devices, PoC's storage devices consume only a small fraction of electric power. Thus PoC is cleaner and easier to help consensus achieve wider geographical distribution.
All in all, PoC is a totally permissionless, open and fair network where “capacity power” could join or withdraw anytime, anywhere and threshold-free.
The unique FireStone mechanism of Lava
Firestone is Lava's unique mechanism. Firestones are dynamic credentials created on-chain by staking LV (native token on Lava).
When users initiate a freezing transaction, they need to obtain Firestone at a dynamically-adjusting freeze ratio. The freeze ratio can be easily understood as the “price” of Firestone, that is, how many Lavas needed to be frozen in exchange for a Firestone.
Still not finish. There is a unique Price Adjustment mechanism about Firestone: When the number of Firestones in the previous Slot exceeds the target value of 2048, the freezing rate of the Slot will increase by 5%. And when the number of Firestones in the previous Slot is less than the target value of 2048, the freeze ratio will decrease by 5%.
What is the function of Firestone? Firestones stand for economic rights and governance rights. It is a system built-in credential whose design is based on Virtual Layering and a representative of occupying resources of the Lava system. Also, it means the governance right credential of Lava Ecology and the carrier of voting rights in the on-chain governance system.
What’s next?
At present, Lava has reached a preliminary strategic cooperation with one investment bank holding STO license, and plan to issue a number of securitization tokens based on real-world assets (like real estate, etc.) on Lava mainnet in 2020.
Also, we have adopted the technical architecture of Confidential Asset, and used threshold signatures and ring signatures to verify UTXO. Under the premise of ensuring verifiability and traceability, this technology can hide asset information in transaction data. This technical solution will also be implemented in the first half of 2020.
Lava is particularly suitable for STO, because the PoC mechanism can achieve a wide range of decentralization, and the world can join mining with a low threshold. Lava's codebase (same as Bitcoin's) is extremely stable and secure for issuing and trading STO assets.

Part 2: Some questions from the community
Question 1: Say no to ICO, IEO or public fundraising, so where does Lava get money to start a startup with the desire to contribute more to the community?
Answer: The core team of Lava fund itself in two ways.
1) We have retained a 7% from a total supply of Lava coins in the Genesis Blocks, which acts as an important source of daily operation and economic incentive for the team and developers.
2) We have reached key strategic cooperation with Infichain Technology and we have dealt a million-dollar-level investment term sheet and the team gets some part of it in the starting stage of the project to launch it.
 
Question 2: I heard that Lava consider to set up the De-Fi Platform. Can you introduce some details, such as the components?
Answer: Lava is a publicly maintained network for safely issuing, trading, storing and managing tokenized assets. This is how Lava can connect global storage to real-world value in a truly decentralized way. The entire system consists of Confidential Asset, STO, Decentralized Pool, Stablecoin and any more.
CA technology brings excellent privacy and fungibility to multi-assets issued and traded on-chain. Millions of Dollars of real-world assets will be migrated to the Lava blockchain by the Security Tokens. Every part makes sense to the whole system. And more details on our new official website (coming soon)!
 
Question 3+4: What are the advantages and strengths of Lava in the industry? Do you have any competitors currently? If so, could you tell me about your advantages compared to your competitors?
Answer: Concerned about Lava? Good to hear that! I am happy that the community, investors care about how’s the project going, but no need to WORRY, if there’s any. We have a very strong but low-key team, we have the best developers, tech guys, and resources backing the project. Everything is going smoothly.
When talking about strength, I would suggest you take a look at what Lava has achieved since its mainnet launch in August 2019. We have developed our full node wallets, GUI wallets, light PC wallets, mobile wallets that almost cover all the mainstream OS platforms. We have developed a plotting software—HyperPlotter, maybe the best plotter ever and totally free-of-charge! We have even implemented a PoC2+ new protocol upgrade through a hard-fork, this is the very signal that Lava is trying to lead the standard in the PoC field and it begins to cast its influence!
At present, Lava has not only accumulated a large number of unique technical achievements but also began to try to lead industry standards and propose new concepts. Recently, Lava has launched a key PoC2+ consensus protocol upgrade. The new standard reshapes the most critical Plotting process in PoC, repairs the technical loopholes in the original standard, and ensures that PoC consensus can achieve higher security. By mathematically clarifies the ownership of the plot file, the new standard has for the first time achieved a rigid attribution for the PoC capacity power and established the foundation in the machine level for long term development of the whole PoC ecosystem!
 
Finally, Lava and Bvnex provided users with a lot of information about Lava's development potential. Besides, Bvnex is also a partner highly appreciated by Lava and wants to accompany in the near future.
Hopefully, through AMA, investors and users will have a deeper understanding of Lava.

First let me explain “why PoC has the ability to achieve the highest level of decentralization”:
Because: 1) PoC mining rely on storage devices, like hard disks, which is a far more general equipment than GPU and FPGA and ASIC chips. There will be no monopoly on mining devices. Which means, anybody, anywhere in the globe, can join the PoC mining, no one can set entry threshold. (whereas PoW mining rely on sepcificly-designed and manufactured equipment that only one or two manufacturer can produce.) 2) In the mining process, PoC consumes only a small fraction of electricity/Power, which means PoC mining does not rely on low-cost electricity. Should know that low-cost electricity is only available in specific areas like in distant mountainous areas in China/Russia/Iran……This means anybody could mine PoC wherever you are in the world, this is fair play, no need for large-scale mining farm which naturally causes mining monopoly where only big players can participate the mining game.

Lava successfully held "lava 2020, bring POC to the world" offline roadshow in Ho Chi Minh City, Vietnam
On March 23, 2020, Lava successfully held "Lava 2020, bring POC to the world" offline roadshow in Ho Chi Minh City, Vietnam, as the first stop of Lava's global roadshow. After the start of the activity, the Vietnamese community representatives of the Lava team first gave a speech and shared the content, which was mainly divided into four parts: technical introduction and development potential of POC consensus mechanism, technical concept and development prospect of Lava, economic model of Lava, ecosystem and partners of Lava.

Mr Linh, on behalf of the lava project party, said: POC consensus can achieve a wide range of decentralization, which is lower in energy consumption and threshold compared with pow consensus. On the basis of POC consensus, lava combines bitcoin's UTXO model to ensure the security and stability of the bottom of the blockchain, which is  safe for the issuance of STO assets.

In addition, Bvenx and Lava  announced that LV will soon on Bvnex exchange, and will support LV to VNDT trading pairs after online.

Check the video here:https://www.youtube.com/watch?v=ZXqMxc6N1kA&feature=youtu.be

PoC (Proof of Capacity) is a consensus mechanism with multiple superior characteristics and huge application potential. As an important branch of today’s existing consensus mechanisms, PoC is still undiscovered and underrated by the market. A truly fair, open and meaningful project was needed to convey the decentralized concept of PoC to the world, so we launched Lava.Considering the versatility and universal usage of storage devices, PoC is a consensus mechanism that has the potential to achieve the highest degree of decentralization in the future. We also believe that, the market size of a specific hardware equipment, can to some extent imply the upper limit of the consensus ecosystem that mines with the equipment. From the perspective of hardware industry market data, mechanical hard disks(HDD) alone have a scale of 20-25 billion US Dollars and 300 million units of annual shipment. Compared with the scale of 10-15 billion US dollars and 50 million units of annual shipments of external GPUs, we can draw the conclusion that, the storage equipment market has all the capability to cultivate an ecosystem of PoC mining no less than GPU mining in size.

Lava is neither the first nor the only PoC project. Lava refers to the technical details in the consensus level from the PoC ancestor Burstcoin, and combines with the codebase of Bitcoin to achieve absolute reliability from the botton layer of the blockchain. Lava is the first PoC project to implement completely open source code after Burstcoin. During the project startup phase, Lava did not conduct any form of ICO and public fundraising activities; the founding team retained 7% of the total supply of tokens and this was allocated in the genesis block.

Lava is expanding the application of PoC consensus in the financial field to realize the connection between PoC consensus and the real world. At present, we have reached a preliminary strategic cooperation with one investment bank holding STO license, and plan to issue a number of securitization tokens based on real-world assets (real estate, etc.) on Lava mainnet in 2020. We have adopted the technical architecture of Confidential Asset, and used threshold signatures and ring signatures to verify UTXO. Under the premise of ensuring verifiability and traceability, we can hide asset information in transaction data. This technical solution will also be implemented in the first half of 2020.

Both in China and Europe

We will announce more on Twitter, just keep following!

We all hope so.

We will start the roadshow in Asia first

There is currently no such plan. But you can join the mining pool such as 168pool and B3 pool for mining.

Open source code means that any inspection can be accepted, Lava's technology is very reliable

You need a computer, hard disks and our softwares offered on lavatech.org.

Join the Telegram, take a screenshot of your question into the group.

At present, we have reached a preliminary strategic cooperation with one investment bank holding STO license, and plan to issue a number of securitization tokens based on real-world assets (real estate, etc.) on Lava mainnet in 2020. We have adopted the technical architecture of Confidential Asset, and used threshold signatures and ring signatures to verify UTXO. Under the premise of ensuring verifiability and traceability, we can hide asset information in transaction data. This technical solution will also be implemented in the first half of 2020.

Many blockchain project teams are confidential.

But its threshold is much lower than pow, no need to buy the mining machine.

The features of PoC determine that it has strong similarity and complementarity with PoW. Considering that storage devices have a very high degree of versatility and universal usage as IT infrastructure, we believe that PoC can form a market value of the same order of magnitude as PoW in the medium and long term .

We recently will hold a global roadshow.