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Binpay
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WHITEPAPER 1. Executive summary Binpay is a payment service provider for the digital cryptocurrency world, focusing on connecting the users who own digital cryptocurrencies with the real world. It aims to build a trustworthy ecological environment for secure payments in digital economy.
Binpay is a high-liquidity digital asset payment platform. It is designed to help users cope with numerous problems in practice, such as the inconvenience of managing a number of different digital cryptocurrencies, passively waiting for the price to rise and fall, poor value transmission and delivery, and insufficient application scenarios, etc. The purpose is to build a secure and convenient payment ecosystem for all types of cryptocurrencies in terms of payments, wealth management, credit checking, microfinance, insurance, clearing and settlement, and so on.
Binpay's innovative payment technology provides users with a firm and strong infrastructure support to substantially reduce the risk of cryptocurrency fluctuations. With the continuous improvement and ever-increasing growth of the payment systems carrying all kinds of digital cryptocurrencies in the world, Binpay payment has a number of remarkable characteristics, including but not limited to capability of breaking geographic barriers, account freedom, effective management, high efficiency, and high compatibility.
2. Project background
2.1 Current state of digital finance: emerging and unfolding
The exploration of the blockchain projects in the financial sector mainly focuses on payment, real estate finance, corporate finance, insurance, asset management, and bill financing, etc. By taking advantage of the decentralization and tamper-resistance natures
of the blockchains, the risks in many aspects of financial activities can be better controlled, thereby reducing the costs in the financial process.
At present, not only are considerable emerging blockchain projects being implemented by large financial and banking companies, including China UnionPay, China Merchants, China Minsheng and other banks, as well as Alibaba Ant Financial Group, many science and technology giants such as ZhongAn Technology have also begun to lay out corresponding blockchain platforms and have initiated numerous projects.
Blockchain technology has its broadest applications in the financial industry. From the perspective of the trend of new technology development and the truth of having gained high popularities among the investors, it is now the perfect time to invest in the blockchain field.
2.2 Development of blockchain technology: digital payment is leading the way
Since 2009 when the first digital cryptocurrency, Bitcoin, was born, the blockchain technology accompanying the digital cryptocurrency has been in existence for nine
years. The blockchain is essentially a decentralized and distributed ledger database that allows direct data transmission without going through an independent third party. It is also the most important underlying technology of the digital cryptocurrency. Compared with the centralized system, the blockchain technology has the advantages of decentralization, tamper-resistance, openness, and so on.
Currently, the blockchain technology has found very wide applications in many fields, such as electronic payment, insurance claim, security exchange, bill transaction, and public services. It has become a potential solution to the critical issue of information asymmetry in the financial sector. The blockchain technology has drawn ever-increasing attentions due to its numerous merits including trustworthiness, decentralization, and tamper-resistance among many others.
The blockchain technology and its tokens are considered to be the most disruptive innovation, following steam engines, electricity, and Internet. Just as the steam engines and electricity emancipated the productive forces and the Internet changed the way how
information is transmitted, the blockchain technology, as a mechanism for building trust, will change the way how value is transferred.
In the field of payment and finance, the costs of reconciliation, clearing, and settlement have always been high due to enormous manual operations and the complex systems involved. In addition, there exist other issues such as high error rates and low efficiency. Thanks to its data tamper-resistance and traceability features, the blockchain technology can help reduce the aforementioned costs occurred to the financial institutions and the cost of dispute resolution. It can also significantly improve the processing speed and efficiency of the payment services.
With the ever-maturing blockchain and distributed ledger technologies, as well as the promotion of digital cryptocurrency applications represented by Bitcoin, the digital cryptocurrency system is gradually moving from theory to reality. The central banks and commercial organizations in many countries are actively studying and laying out digital cryptocurrencies. For instance, a number of financial institutions, including UBS group, Deutsche Bank, and NEX group, have started to jointly create a multi-functional settlement cryptocurrency over blockchains to settle financial transactions such as crossborder inter-bank payment and clearing of financial transactions. This digital settlement cryptocurrency aims to be commercially available in 2018.
The large-scale adoptions and applications of the digital cryptocurrency will play a disruptive role in affecting the existing financial systems, and it represents an important direction of financial innovation for the current and some future periods. It will have a far-reaching impact on the financial systems, especially the payment system. The population of the digital cryptocurrency owners is currently around 40 million, and the number may reach 150 million by the end of 2018 according to the current growth rate.
The era of payment, financial management and other various financial derivative applications using digital cryptocurrencies has now arrived.
2.3 Pain points for finance payment industry
Pain point 1: Restricted service
The traditional payment is operated in a relatively closed system. The construction of this system is always led by the state or government agencies, and most of the payments are domestic ones. Therefore, the traditional payments are vulnerable to time and space constraints. In practice, most of them do not provide all-weather, 24-hour, and crossborder payment services.
Pain point 2: Complex Process
The traditional payment operation process is subjected to multiple restrictions, which makes it difficult to complete the transactions in real time. Even with fast payment tools such as Visa and Mastercard, it may take 1-3 days or longer for the money to actually reach the destination.
Pain point 3: High costs
The traditional payment, which relies on traditional banks and relevant payment networks, needs to pay certain fees that are collected by the banks and payment networks. Consequently, the payment cost is relatively high.
Pain point 4: Lack of service varieties
The payment service provided by the traditional payment company lacks a variety of services to satisfy other requirements that a user may have. After the payment is completed, the user usually leaves the application scene immediately. Thus, the traditional payment cannot bring other services to the user.
Pain point 5: The security concern of the digital cryptoassets
As the blockchain technology is slowly becoming known to the general public, the values of the relevant digital cryptocurrency assets of the blockchains are also rising. Digital crryptoassets have become the target of hackers and criminals, and incidents of losing cryptocurrency coins and tokens have occurred frequently.
The digital cryptoassets can be stored in the blockchain wallets and exchanges. At present, if the digital cryptocurrency assets are stolen, they generally cannot be recovered.
2.4 Emerging value of Binpay digital payment ecosystem
Binpay intensively explores and utilizes the blockchain technology in the digital economy payment area. Based on a stable, highly expandable, fast, and high-capacity blockchain technology, Binpay will create a super financial-aircraft carrier that integrates payment, wealth management, credit, funds, banking, and credit enquiry together for the digital cryptoasset world. It will provide intimate, safe, convenient, and comprehensive financial services for users holding digital cryptoassets.
Through the creation of an ecological payment system, Binpay will incorporate the logic of supervision to achieve a close integration of the real world and the ecosystem of the blockchain technology and promote the healthy development and growth of the digital economy payment.
3. Digital economy payment ecosystem: a leader
3.1 Six characteristics
1) Support multiple digital cryptocurrencies
Binpay, as a payment product, aims to help allow digital cryptocurrency to freely circulate in the world of digital cryptoassets and connect the world of digital assets with the real world. It will support many kinds of digital cryptocurrencies, and users can make a payment with any of those digital cryptocurrencies. The complicated process of digital cryptocurrency conversion will be completed by Binpay, which can fully enhance the payment experiences of the users.
2) Digital cryptocurrency and fiat money exchange
Binpay is a tool that connects the digital cryptocurrency with the real world, and it fully takes into account the experiences of users and merchants. For many merchants, they want a currency that has a constant or almost constant value. In daily operations, the digital cryptocurrency is usually not suitable for these merchants because of its relatively large value fluctuation. As a service provider for all the merchants, Binpay has two kinds of settlement methods: one is using the digital currency and another one is using the fiat money of the corresponding country. Merchants can choose either one or both of the methods according to their own needs.
3) Fast payment with lightning-speed arrival
Based on the independently self-developed wallet, Binpay provides 7/24 ultrafast payment service. It supports different service terminals such as Android, IOS, and H5. Once users have access to the Internet, they will be able to make payment conveniently, quickly, efficiently, and globally all over the world. Since the operation is not constrained by time and geographic region, the payment can reach the destination extremely fast.
4) Financial services portal
With the increasing popularity of cryptocurrency, the number of people holding digital cryptocurrencies is ever-increasing. Because the cryptocurrency values can rise
and fall by large amounts from day to day and thus fluctuate drastically, the financial needs for digital cryptoassets management and credit services will increase accordingly. With Binpay, users can obtain individual personalized financial services.
5) Low-cost cross-border payment
Binpay's payment process does not rely on the traditional networks of central banks, commercial banks and other financial institutions. Therefore, it does not need to pay the traditional cross-border fees and exchange fees, which significantly reduces the crossborder transaction costs. In addition, by simplifying the payment process, Binpay further reduces the capital cost of transactions, while also shortening the time for cross-border payment and improving timeliness.
6) Securer asset management services
In addition to technically protecting the security of users’ cryptoassets, Binpay also provides insurance services to its users.
Financial services: How to preserve and increase the values of the digital cryptoassets has always been a very challenging issue for most users. Binpay offers a variety of wealth management services and wealth management products for users to choose from. Users can achieve the maintenance and appreciation of their digital cryptoassets at the same time of daily consumption.
Credit services: Binpay offers credit services that involve using digital cryptocurrency as collateral. Users can mortgage their digital cryptoassets, so as to obtain credit services in fiat money. Binpay will provide customized credit limit and loan interest according to the relevant information of the users, including personal income, consumption habit, daily usage, repayment history, and so on.
3.2 Seven functionalities
1) Secure and high-efficient payment service
Binpay is a payment and financial tool built between digital cryptocurrencies and realistic consumption scenarios. With independently self-developed technology, Binpay ensures users the security of their digital cryptoassets while charging ultra-low transaction fees, reducing transaction costs, and increasing the speed of information transfers.
2) Effective tool for cryptoasset storage and appreciation
Binpay manages digital cryptocurrencies through its Binpay wallet, which supports the storage and management of a large number of digital cryptoassets, such as Bitcoin (BTC) and Ethereum (ETH). It not only helps solve the digital cryptoasset storage issues and reduce the management burdens for the users, but also provides financial services to achieve the maintenance and appreciation of the digital cryptoassets. Based on their risk tolerance and preferences, users have the option to choose different types of financial services, such as conservative or aggressive ones.
3) A trustworthy payment system for digital cryptocurrencies in the world
Binpay creates a world digital cryptocurrency credit system through a variety of ways including payment, credit, digital cryptoasset pledge, and so on.
4) Digital cryptoasset trading platform
Binpay provides users with simple, convenient, and secure exchange and transaction services through docking the exchange API (application programming interface). This enables free exchange of various digital cryptocurrencies without any risk.
5) Low-interest superior lending platform
In addition to providing users with payment and wealth management services on their digital cryptoassets, Binpay also provides services of lending digital cryptoassets to users to meet their needs of digital cryptoasset consumption and financial management. To obtain such a loan, users are only required to provide their personal identity information. Upon a positive identity verification, Binpay can issue digital cryptoassets to the users to satisfy their urgent financial needs. Furthermore, digital cryptoassets could also be used as collaterals to borrow fiat money.
6) Multilayer security system
The following security measures are adopted in the Binpay system:
✓ Prevent hacker attacks through dedicated technical design and prompt updates. ✓ Increase the cost of hacking through sophisticated token design. ✓ When paying, borrowing or financing, users can employ multiple methods such as secondary verification, fingerprint authentication, biometric authentication, password confirmation, and SMS (short message service) verification code to ensure the security of the digital cryptoassets in all aspects. ✓ Establish a risk reserve fund and introduce a third-party insurance system. It is specifically designated to pay users for the loss of cryptoassets in the case of Binpay-induced mistakes, and this helps solve the concerns of users on the risks of using Binpay and its related products. 7) Multilingual support
Binpay plans to launch language supports in all the mainstream markets, such as English, Chinese, Japanese, Korean, etc., to eliminate the language barriers for the users.
3.3 Core values
The primary objective of the Binpay project is to support payment-related businesses and applications. Therefore, its product architecture has the following notable advantages:
Lightning-speed payment
Binpay ensures reliable 7/24 ultrafast payment services on multiple terminals, including Android, IOS, H5, etc. The services are not subject to time and geographic region restrictions. Consequently, as long as the users have Internet access, they can conveniently, quickly, and efficiently make payments globally, and the payments can reach the targeted payees extremely fast.
Real time exchange to fiat currency
At the time of consumptions or transactions, Binpay wallet can help a user convert any stored digital cryptocurrency to a desired eligible fiat currency according to the latest and widely accepted currency exchange rate.
Complete payment security
Through a complete internal control mechanism, Binpay guarantees continuous, reliable, and normal operation of the system and actively protects the system data from accidental or malicious tampering and damage. In addition, Binpay provides each user with an account insurance service, which covers asset losses caused by accidents.
4. Building a fundamental platform for digital economy payment
4.1 Overview of payment logic
After a user selects desired items or services to be paid at a merchant platform, the merchant platform generates an order for the items or services. It then encrypts the order information with ECC (elliptic-curve cryptography) algorithm and sends it to the
Binpay platform. In the meantime, the Internet browser jumps to the payment page of Binpay, and the user transfers the required amount of digital cryptocurrency to a dedicated wallet address provided by Binpay. After Binpay confirms the receipt of the digital cryptocurrency paid by the user, the background server informs the merchant of the payment result. Afterwards, the merchant conducts subsequent handling according to the payment result, such as providing the user with the corresponding items or services.
The payment process is as follows:
✓ User places an order on the merchant platform ✓ Merchant platform calls the payment interface of Binpay ✓ User transfers the required amount of digital cryptocurrency to the dedicated wallet address provided by Binpay ✓ Binpay confirms the receipt of user’s digital cryptocurrency
Binpay confirms the receipt of digital cryptocurrency
User Merchant platform Binpay
User places an order
Call the payment interface of Binpay
User transfers digital cryptocurrency to Binpay
Binpay notifies merchant the payment result
Merchant processes the order according to the payment result
✓ Binpay notifies merchant the payment result through a background server ✓ Merchant conduct subsequent handling according to the payment result, such as providing user with the corresponding items or services
4.2 BinAH verification scheme
1) BinAH verification
When the merchant submits a payment request to the Binpay platform, the user’s order information is encrypted with a unique encryption method provided by Binpay. This authentication method is named BinAH (Binpay authentication).
BinAH is a non-password method based on the well-known ECC encryption algorithm. It does not need to share the password with the server; instead, it uses a public key to encrypt each request. The server decrypts the message using a private key to ensure the security in every step of the information transmission. This method guarantees all-round protections against every possible attack encountered during the entire payment process.
2) ECC encryption is currently the most secure asymmetric encryption algorithm
Elliptic-curve cryptography, ECC, is a cryptographic algorithm proposed by N. Koblitz and V. Miller based on the elliptic curve discrete logarithm problem (ECDLP) over finite fields. ECDLP is a problem exponentially more difficult than the integer factorization problem. The ECC algorithm is an encryption algorithm adopted by Bitcoin. After years of actual test and verification, its superior security is unquestionable.
3) Since the private key is never required to be provided to the server, a much stronger private key can be used for encryption without frequently change.
Comparison of ECC and RSA
Compared with the well-known RSA (Rivest–Shamir–Adleman) algorithm, the ECC algorithm has remarkable advantages in many aspects. These advantages mainly include the followings:
✓ Stronger resistance to attack ✓ Lower CPU usage ✓ Shorter key length ✓ Lower network consumption ✓ Faster encryption ✓ Higher safety performance ✓ Smaller storage space The key size and system parameters of the ECC algorithm are much smaller than those of the RSA and other algorithms (such as DSA, digital signature algorithm). As the security level increases, the key length of the current encryption method such as RSA increases exponentially; whereas the ECC key length just increases linearly. For instance, a 128-bit secure encryption requires a 3,072-bit RSA key or just a 256-bit ECC key. Increasing the security to a higher level of 256-bit encryption requires a 15,360-bit RSA key but only a 512-bit ECC key.
4) Encryption on each transaction makes man-in-the-middle attack impossible
The man-in-the-middle (MITM) attack is an indirect intrusion attack. The attack is to intercept information between two communicating computers and perform data tampering before forwarding the information. Because Binpay encrypts every single payment request, each possible interception, if happens, can only get the encrypted
information. The encrypted information is tamper-resistance, the MITM attack can consequently be prevented.
5) Incorporation of serial number into the encrypted data to avoid replay attack
Replay attack means that an attacker sends a packet that the destination host has previously received to achieve the purpose of defrauding the system. It is mainly used in the identity authentication process to damage the correctness of the authentication. Binpay identifies this kind of attack by adding a serial number to the data of request. The server only accepts those requests that contain a serial number satisfying certain conditions and greater than any previously accepted numbers, and any other requests are considered invalid.
4.3 Transaction interface API
The Binpay platform provides a complete REST (representational state transfer) style API that covers the entire payment process, including the complete lifecycle of the orders and various query functions. At the same time, the entire order information is encrypted using the BinAH technique to ensure the security and smoothness of the calling process. Moreover, Binpay employs reserve funds, quantitative strategies and other risk control mechanisms to reasonably and effectively perform market timing and risk aversion.
4.4 Payment security consensus
Payment security
Binpay payment platform ensures the high-level security of the entire payment process through the following schemes:
✓ The order information in the payment process uses ECC asymmetric encryption to guarantee the security; ✓ The merchant first generates its own public key by running in the background of Binpay, and the key is used to encrypt the data to be transferred to Binpay. The private keys are collectively stored by Binpay and used to decrypt the orders, which guarantees the security of each order information. ✓ Data exchange between Binpay and merchants is conducted and notified in the background to ensure security. In addition to the aforementioned security schemes, the entire payment process also involves the following security measures: network transmission security, server security, and database security.
Network transmission security
In addition to encrypting the order information, Binpay payment gives high priority to the security issue in data transfer and transmission. The payment server uses HTTPS (hypertext transfer protocol secure) access to secure the entire data transmission process. Compared with the traditional HTTP, HTTPS brings considerably improved security.
Server security
Binpay ensures the server security in a number of ways. First, it uses the secure AWS servers. AWS is the leading cloud-server service provider in the world, and it provides adequate assurance to the network security. A large number of well-known IoT (Internet of things) services have been running on AWS successfully and safely for many years, which demonstrates its superior performance and reliability. Second, Binpay has a
dedicated operation and maintenance team responsible for the security at all levels of the servers:
✓ Strictly control the accounts and permissions of the operating system ✓ Only the essential access ports are open ✓ Always use the latest version of the operating system and the latest security patches to keep the Linux kernel and software most recently updated ✓ Log in using a private key ✓ Set up a firewall
Database security
The database is an important system for storing the payment information of the merchants, so Binpay pays particular attention to the security of the database. It ensures the high-level security of the database system through the following ways:
✓ Use dedicated database servers ✓ The database servers provide intranet access only and is not open to public network IP ✓ Use SSL protocol for data transmission during database operations SSL (secure socket layer) is a secure transmission protocol to provide communication security for the data transmitted over the Internet. It employs data encryption technology to make sure that data transmitted over the network cannot be intercepted and eavesdropped.
KYC module (legal compliance)
Binpay designs its own KYC (know your customer) module and strictly complies with any local laws and regulations as well as any censorship rules. Binpay actively works and
cooperates with relevant government agencies to keep business operations be legally and regulatorily compliant.
5. BIN tokens offering plan
Total number of BIN tokens to be issued: 10 billion tokens
Exchange rate: 1 ETH token = 176888 BIN tokens
Ways of obtaining BIN tokens:
✓ Participate in private placement to support the project and use ETH tokens to exchange for BIN tokens. ✓ Participate in the construction of Binpay payment ecosystem construction and obtain BIN tokens as rewards. ✓ Purchase BIN tokens on third-party trading platforms. The detailed BIN token allocation plan is as follows:
First round private placement
20%
Institutional investors, subsequent development and operations, promotional marketing and sales.
The use of this part of the funds needs to be regularly publicized.
The second round of private placement.
10%
Institutional investors, subsequent development and operations, promotional marketing and sales.
The use of this part of the funds needs to be regularly publicized.
Project consultants,
Cornerstone Investment
15%
BIN tokens will be offered to early investors and project consultants in return for their contributions to Binpay on investment, capital resources, strategies, human resources, material and other resources, etc.
Tokens are locked up at initial offering for 12 months and will be unlocked at 0.5% per month after that.
Token mining 20%
Tokens will be awarded to users as mining incentives according to the duration of using the Binpay products, the amount of tokens consumed, the number of tokens left to be mined, etc.
The rate at which the tokens are generated will drop by half after every 375 million tokens being released.
Founding team 15%
Tokens are locked up at initial offering for 12 months and will be unlocked at 0.5% per month after that.
Foundation 20%
As the operational and management reserves of Binpay, the foundation will be used for the development of future projects and the improvement of the payment ecosystem.
The use of this part of the funds needs to be regularly publicized.
5.1 Operations management
The access, operation, and service components of the Binpay digital payment system have been regulated in every aspect to ensure the orderly growth of the BIN token market.
Mining: For users who make contributions to the ecological construction of the Binpay system by mining the BIN tokens, those tokens will be awarded to them. The rate at which the tokens are generated will drop by half after every 375 million tokens being mined.
Incentive: BIN tokens are used to reward parties that bring many transaction payment activities to the platform. Binpay will rely on both up- and down-stream partners to inspire users to adopt the Binpay platform. These partners will receive an incentive of BIN tokens for the introduction of every successful payment transaction. As the transaction amount of the platform payment increases, it will drive up the demands of the users for more BIN tokens and increase the value of each BIN token.
Social: Through intensive operations on various social media (such as Beechat, BiYong, Twitter, Facebook, Bitcointalk, Telegram, etc.), the demands of the users for more BIN tokens can be effectively inspired and stimulated.
Media: At present, the platforms of the blockchain circle and the coin/token circle have attracted about 260 million users. The number of active users of digital cryptocurrency trading has reached 30 million and is climbing up steadily. Binpay maintains a close relationship with every major media. Through in-depth analysis of various media platforms, Binpay adopts customized marketing strategies. This approach utilizes unobtrusive and closely-relevant demonstrations to attract users and highlights the values of the BIN tokens.
5.2 Financial Management
Token lock of the founding team
The 15% of the total BIN tokens held by the founding team will be frozen after the initial offering. The team agrees to lock up all their allocated BIN tokens for 6 months. These tokens will be unlocked and released at 0.5% per month after that.
Regular and periodic public notice
All the use of the funds will be regularly and periodically publicized on the official website to maintain openness and transparency.
BIN Foundation
The BIN Foundation is established in Singapore and dedicated to the management of the BIN tokens.
Foundation governance principles
✓ Transparency and supervision The operation status and working progress of the foundation will be disclosed and reported to all the involving parties through periodic reports and unscheduled news releases.
✓ Guided by ecological system construction In the ecological circle envisaged by the foundation, the values transfer at fast speeds in a continuously expanding closed loop, accompanied by numerous relevant activities.
6. Business goals and development milestones
Binpay has formulated long-term goals and short-term plans that will be strictly followed and implemented in accordance with the following schedule.
Time Milestones
2018 Q1
Release the beta version of Binpay
Connect 10+ merchants and start commercial use
Establish a U.S. branch office
2018 Q2
Establish BIN Foundation
Release BIN tokens and start initial offering (ICO)
Release the official version of Binpay
Expand the number of connected merchants to 100+, and broaden the commercial applications
Expand international business
2018 Q3
Improve Binpay functions and support token-to-token trading
Update payment functions and develop Binpay wallet
2019 Q1
Start digital cryptocurrency credit service
Gradually establish a credit system
Enhance wallet usage scenarios for users’ conveniences
2019 Q2
Combine artificial intelligence (AI) techniques and risk control mechanisms to achieve AI-based risk control
Expand the business scope of the U.S. branch and run dual-center operations in China and the United States
2020 Q1
Improve Binpay functions. Explore and implement the combination of payment, finance, and AI for actual applications.
7. About the team
7.1 Investment institution
Binpay project is invested by blockchain industry leader Mr. Jiangtao Sun, who also gives the team strategic guidance and resource support.
