LitecoinHD whitepaper (version without image)

- - An optimized crypto currency system based on cPoC algorithm

Preface
The centralized society played a great role in promoting the rapid development of human civilization in the past thousands of years. However, with the continuous growth of global population, the advancement of material demand, the increasing scarcity of earth resources, the survival crisis of natural environment and the increasing class contradiction caused by the gap between rich and poor, the evolution of the total productive forces of human groups reaches stagnation rather often, directly affecting the further development of civilization, and making us constantly reflect rationally on the fact that the world is made up of multiple centers.

The emergence of blockchain leads us to the direction where the multi-center problem is to be solved. The consensus system produces passive trust through technical means and forms a consensus mechanism that can not be tampered with, so as to achieve the highest level of trust so far - trustless. This is a note-worthy technological revolution, which crack the bottleneck problem of the development of modern human civilization from the root, and is worthy of continuous exploration and practice by all mankind.

LHD will redefine the distribution of global wealth distribution with a decentralized approach using PoC's innovative consensus algorithm. This is a major migration, from a centralized wealth consensus to a decentralized wealth consensus. LHD is committed to providing fairer, credible and private wealth autonomy for each of us and even for every generation, ultimately realizing wealth freedom of all mankind.

LHD will break up the monopoly of centralization, leading to completely decentralized community autonomy, and complete free payment of assets. The freedom brought by LHD can inspire everyone and lead them into the era of innovation, together breaking through the restrictions of centralized regulation. The unified synergy will finally promote the rapid development of the world and the whole society, by then mankind will arrive at the best era.

The emergence of decentralization is the inevitable result of social development. It is an interpretation of equality and freedom, which allows all to clearly see the future direction of human civilization and bring unlimited possibilities.
Our thoughts, like stars, shine on us to achieve an autonomous, democratic and free society. Each of us has the ability to create a brighter future in line with our free will.

The emergence of LHD is not only an innovation and challenge of the traditional blockchain technology of the PoC consensus mechanism, but also an opportunity for our perfect transformation, providing more possibilities and imagination space for building the most perfect blockchain PoC ecosystem in the world.

1.LHD Background and Overview
LitecoinHD (hereinafter referred to as LHD) is an innovative crypto currency based on Conditioned Proof of Capacity (hereinafter referred to as cPoC). Using hard disk as consensus carrier equipment for mining, LHD refined the economic model and consensus algorithm of BHD, and has the following features:

a. Mining is more energy-saving, more economical and more environmentally friendly. LHD adopts hard disk mining based on PoC consensus mechanism, characterized by high value-preserving and recyclable hard disk equipment, low demand for energy consumption of power resources and low noise, in contrast to the traditional ASIC chemical mining machine; thus reducing the mining cost of miners, and securing controllable energy consumption and considerable benefits.

b. Lower the threshold for mining participation. Because the hard disk equipment has the characteristics of anti-ASIC, it has an impact on the traditional pain point of centralization and monopoly due to PoW consensus mechanism, and returns to the value of decentralization and credibility with lighter, more economical and more environment-friendly blockchain spirit, which provides more possibility and feasibility for the vision of'mining by all people'.

c. Higher performance and better revenue expectations than BHD. The total supply of BHD is 84 million, whose mining reward is halved every 4 years. By optimizing the underlying algorithm and economic model of BHD, the block size, reward for block generation and TPS of LHD will be tremendously improved. All PoC ecological crypto currencies can be mined in one machine, that is to say, LHD and BHD can be mined at the same time.

In this paper, it mainly describes how LHD ecology is optimized based upon the BHD ecological system and technical characteristics.

1.1Crypto Currency Major Consensus
In the crypto currency market, Bitcoin (hereinafter referred to as BTC) is the most widely known. Yet before BTC, the whole cryptocurrency industry has already begun to research and practice new technical solutions to improve the payment speed and expand the payment range. Many optimized crypto currencies emerge as the times require, such as LTC, Ripple, EOS, TRX and so on. However, the most representative crypto is not just Bitcoin. A popular phrase spreads in the crypto currency community "Bitcoin gold, Litecoin silver,";LTC used to be the second largest crypto currency by market capitalization after Bitcoin.

Litecoin(abbreviation: LTC, symbol:Ł), is a peer-to-peer crypto currency and an open source software project under the MIT/X11 license. The Litecoin was born in November 2011 and was invented by Charlie Lee (Li Qiwei). Litecoin is inspired by Bitcoin (BTC) and has the same technical implementation principle. The creation and transfer of Litecoin is based on an open source encryption protocol and is not managed by any central agency. LTC represents a lightweight version of Bitcoin, and the meaning behind Litecoin is to benchmark against Bitcoin.
LTC's consensus mechanism Proof of work (hereinafter referred to as the PoW). Bitcoin network, packages one block every 10 minutes, and the Litecoin network packages one block every 2.5 minutes, so it can provide faster transaction confirmation and be able to cope with higher frequency of transactions, which means transactions on Litecoin chain should usually be confirmed within 20 minutes. The algorithm used by Litecoin in its workload proof is different from that used by Bitcoin.Bitcoin adopts SHA256 encryption algorithm, and Litecoin uses encryption algorithm. Compared with Bitcoin, the computation volume of Litecoin is slightly lower than that of Bitcoin, so it is easier to mine on ordinary computer and more suitable for graphics card (GPU). However, scrypt depends to a large extent on the computing resources of the processing unit itself, especially memory, which makes the mining based on scrypt system difficult to implement on a scale. A large amount of memory proportional to computing power is used, and the memory cost is very high.

1.2Innovation and Replacement in Consensus Algorithm
When resources are magnanimously used for block generation, and the cost increases gradually, crypto currency enthusiasts begin to look for alternatives to lower power consumption, which are mainly divided into two categories: one is the replacement of lower cost gain and the replacement of more general stackable components, which is the great navigational era of ASIC mining and anti-ASIC algorithm development. Second, LTC, used Scrypt algorithm at that time to combat ASIC of mining machine. Unfortunately, ASIC equipment manufacturers quickly optimized the algorithm, also made it into a mining machine, and formed a monopoly of equipment and computing power, resulting in huge energy consumption. Electric dependence and mine barriers make mining a game for a small number of people.
The BHD based on the PoC consensus appears in the identity of a change-maker, and the BTC of the traditional PoW consensus faces the challenge that the BHD can achieve lower energy consumption and is convenient for the self-made universal assembly of the miner to participate, and meanwhile, the relative high difficulty is maintained to ensure the stability of the system. However, with the development of the PoC, the self-"tired state" of the BHD is gradually revealed. Problems that PoC including the BHD has to face, such as pre-mining, packaging length, initial TPS speed, etc.,

LHD aims at many pain points that BHD failed to resolve, optimizes the underlying algorithm and reconstructing it on an optimized economic model. It not only inherits many advantages of BHD, but also greatly enriches the diversity of PoC consensus mechanism. Just as LTC is for BTC performance optimization, LHD has a lighter architecture, more sufficient total supply, faster block generation speed, better participation experience and more promising benefits than BHD. In addition to inheriting the openness and inclusiveness of BHD, it is accompanied by the popularity of PoC hard disk capacity consensus, and puts cryptocurrency into the public eye in different ways. People therefore can participate in the PoC consensus and LHD economic system construction.

2.Opportunity and Resolution Approach
Monopoly, centralization of computing power, high energy consumption, and the incompleteness of existing PoCs have become the four major problems in the cryptocurrency industry. From the beginning of its design, BHD is aimed at solving the four major problems.

2.1Pain Points of Current Consensus Algorithm
a.Monopoly
Since its inception of BTC and LTC, they have always had the mission to solve financial institutions' crisis of confidence and issue of monopoly. Since the financial crisis in 2008, Nakamoto believed that the centralization of the financial system would lead to repetition of the history, thus decentralization could be an effective solution for the economy.

Financial crisis in the past 40 years(from the Internet)
So after all these years, what is the current status of Bitcoin?

Bitcoin and Altcoin Market Cap(from the Internet)
The figure above shows value curve of the entire cryptocurrency market led by Bitcoin.Does it not look like fluctuations in the financial crisis cycle? This brings us to think if Bitcoin and Litecoin are still decentralized.

The technology of Bitcoin-core is controlled by the core developers, and the code update speed is very slow. Bitcoin's computing power is tremendous, ordinary people and personal computers cannot take part and can only trade in exchanges, which indicates hash-power-centralization. Bitcoin's block generation time is relatively slow. The wallet hasn't been optimized for many years, which indicates experience centralization . Some people are even planning to deploy lightning network, allowing more centralized companies to join the nodes, turning the Bitcoin system into a centralized payment system with far worse user experience than centralized payment method.

Many believe that the existing Bitcoin system needs to be changed or overturned, keeping the decentralization spirit and involve everyone in this revolution. LHD has a more economical decentralization approach, so as to reduce the cost of credit again, changing from the continuous calculation of POW to lower cost storage + retrieval. If we believe that centralization can cause crisis to reappear, then we need to know that monopoly has to be eliminated to avoid any risk of potential crisis in the crypto world with LHD as a pioneer.

b.Power Centralization
We mentioned, the main reason for Bitcoin to prevail and be successfully used as the digital money is that its hash power has been maintained at a relatively high level. In 2017, Bitcoin hash power was 4400P, daily production was 1,800 coins, every P of hash power generated 0.4 Bitcoin on average. Here comes the issue, the price of Bitcoin can be influenced by mining machine manufacturers through adjusting the price of the mining machine. Thus as crypto currency participants anticipate an increase in Bitcoin's earnings, everyone is willing to mine with higher hash power machines, and enjoys a higher possibility to get rewards through packaging. The top four companies in Bitcoin mining account for about 53% of the mining share;

The figure below shows that now Bitcoin's hash power is about 30,000P - 40,000P. Compared to year 2017, the hash power has increased by 10 times, which means the difficulty has also increased by 10 times for participants.

Bitcoin Hash Rate(from the Internet)
The hash power has begun to be corporatized, as hash power gradually increased, the mining machine manufacturers raised the difficulty of coin generation by making devices with improved configuration, kicking out many out-of-date device holders and discouraging a large amount of new entrants.

LHD, on the other hand, makes use of the storage space of the hard disk to break up the centralized calculation power, so as to avoid the occurrence of monopoly. In the existing workload, it is proved that each collision of hash value in crypto currency has a large number of calculations, and continuous hash collision continues to consume energy.

LHD writes the results of each collision on the hard disk by predicting, which is also a more common way of changing space for time. In the process of coin generation, the miner can retrieve the existing data in the hard disk briefly according to the network requirements, and during the remaining time system remains idle, which brings a consensus model of low power consumption. In the LHD system, only the hard disk is large enough to install enough "answers" to allow any cryptocurrency enthusiast to participate in the production of the block without the need for a large number of repeated calculations. Compared to computational BTC which needs brainstorming, LHD just calls for a dictionary big enough.

The problem of hash power centralization can be resolved through such a space-for-time approach. Of course, this is just one of the problems LHD targets.

c.Energy Consumption
How many resources does this calculation cost?
For example, the current energy usage level of Bitcoin is enough to generate electricity for 10% of Italy, as shown by the figure below. That is to say, the resources used by Bitcoin could meet the needs of Rome, Milan and Venice, with a combined population of 6 million. Just as a popular saying all roads goes to Rome, if the Bitcoin makes its way to Rome, it will also consume all of Rome's electricity.
Bitcoin has nearly doubled its computing power since the beginning of 2019.By July, the network had begun to stabilize at 70E. According to the latest computing power of BTC, the computing power of 1P needs to consume 219800 KWH of electricity, and if the electricity charge is 0.028 usd/KWH, the total cost is 6280 usd. Well, according to the fact that China's high-speed rail consumes more than 2 KWH per kilometer, the high-speed train at 350km / h consumes more than 9600 KWH per hour. According to the 5-hour railway from Manchester to London, it needs to use nearly 48000 KWH of electricity, that is, energy consumed when one BTC is produced. BTC's energy consumption is enough for a high-speed train to run two and a half trips for the Manchester-London journey.

So what is the energy consumption of LHD ?
According to the comparison between a current second-hand S9 and a current second-hand 8 terabyte hard drive, the energy consumption ratio is about 1/300. That is, for 150usd equivalent of electricity, ASIC takes 1700 watts, GPU takes 250 watts. Comparing to 8 TB hard disk which costs around 150usd, the hard disk takes only 5 watts. So for spending on 100 S9 or 100 8TB hard disk devices with the same total amount of money, the S9 ones consume 122,400 KWh monthly, while for mining BHD hard disk ones consume 360 KWh. What is more, it can realize the function of "one machine for multiple coin mining" in PoC ecology, that is, LHD and BHD can be mined together within a unit of electricity consumption, which is equivalent to 10 days' electricity consumption of ordinary households in the United States. Double or more benefits are achievable in PoC model.

With such a huge difference, the energy saved can be spent on more entities rather than on repeated consumption. Unlike Bitcoin which has slowly become a game for only a few people, LHD's low power requirement keeps its door open for many.

On the other hand, another problem, safety issue, caused by the huge consumption of energy is worse. PoW power is represented by energy consumption. As energy is controlled by the national government in most countries, with the gradual expansion of PoW computing power, excessive energy consumption will cause a series of social problems. Finally, the government intervention may eventually lead to the fluctuation of PoW's full-network computing power and the safety will be greatly reduced.

The low power consumption of LHD also provides an effective solution to this problem, through reducing the dependence on energy and taking a block generation approach that is more suitable for long-term survival. The PoC consensus is a low-energycost alternative to the current high-energy-cost ASIC based ones. By using the whole global hard disk storage as a medium, PoC generates random numbers to guarantee high level of security, and ensures stability of the block chain infrastructure.

d.Existing PoC Currency Design Issues
The first crypto currency of PoC consensus system was born in 2014. The initial development of BURST was smooth, and there were many community users, but because the early formula algorithm was not perfect, there were many problems that led to its final failure. BHD came into being in 2018, representing innovative PoC mining, because of the success of BHD, more users have sensed the advantages of PoC over traditional mining. This breakthrough provides a consensus algorithm to verify the feasibility for many projects.

LHD learned a failure avoidance lesson from Burst and absorbs the essence of BHD. After a series of changes in the technical part, it came out in August 2019. LHD used game incentive in the design of incentive, which can be mined in conditional or non-conditional way, so as to adjust the cost of operation team and the income of miner. That is, when the miner verifies a block, the miner can get the full benefit; when the miner condition is withdrawn, most of the reward for the block verification is allocated to the Foundation team. LHD adopts a conditional mining approach to ensure the sustainable development of the chain and the introduction of new miners, in this way to maintain the long-term positive development of the community.

2.2LHD Inception and Opportunity
LHD was born to solve the problems of traditional mining. The reasonable demand that ordinary investors want to participate in mining is becoming harder in the PoW sector. With the increasing energy consumption of BTC and LTC, it is more and more centralized. PoC-based cryptocurrencies, however, are more needed than in 2019. In addition, this special consensus algorithm ensures that the co-chain process can be quickly completed thanks to the accumulation of computational power and the control of difficulty.While ensuring the security and integrity of the system, the traders and the consensus supporters are awarded. Compared with the PoW algorithm with high energy overhead, we believe that LHD low power consumption can also give the algorithm enough credit to ensure that everyone can use cryptocurrency in the future.

3.Development Conception
In the existing consensus algorithm system, LHD acts as the change-makerof the existing consensus algorithm, not only from the technical architecture, but also in the future ecological application landing and solutions. Community autonomy organizations have a clear route for the future planning. In the future, LHD will become 'Ethereum' to the crypto world, enabling ecosystem to issue their coin with PoC consensus by just a single click. The layout and revenue from PoC Mining Ecological Exchange, payment, commerce and other areas will be returned to all community supporters through buyback, community welfare, and games.

3.1LHD Ecological Application Scenarios
a.Payment
LHD coin is the basic crypto currency in PoC ecology. In the future, there will be all kinds of crypto currencies which set benchmark against US dollar, Euros, RMB and Bitcoin in LHD main chain. LHD acts as the base currency, making it easy to transfer payments without any third-party supervision. Integrated into blockchain payment network to achieve market maker function.

b.A PoC version of 'Ethereum' supporting coin one-click issuance
The LHD ecological PoC public chain will carry out the application commercialization of big data for the data on the blockchain and the application layer data. The corresponding encrypted hash is stored in the blockchain and time-stamped by blockchain technology, and the data itself can be effectively protected without putting the data itself on the blockchain. In terms of data security, on the one hand, it can be encrypted and stored, realizing distributed sharing of data. With LHD's powerful coding and technical advantages, users can issue PoC ecological coin/token, on the main chain of PoC, thus fundamentally solving the problems of operation difficulty, scheduling and vulnerabilities in the initial team development. There will be a large number of excellent teams who understand and use the PoC intelligent contract.

c.Decentralized PoC Mining Ecological Exchange
All coins issued based on PoC can carry out a series of actions, such as coin listing, mining and unlocking, mining dividend, mortgage and so on, so as to reduce the development cost of the project. In the future, the revenue of the exchange will also be the best embodiment of the ecological hematopoietic function of LHD application.

3.2 LHD Design Principle
LHD prioritizes security, stability and scalability in design principle. In addition, LHD optimizes the block generation interval, block capacity and consensus algorithm, and has hyper performance.

In view of the limitations of blockchain technology and industry applications, the improvements proposed by LHD are as follows:
1.The main control contract of PoC is introduced to complete the execution of the contract;
2.Realize the compatibility in blockchain technology;
3.Flexible consensus mechanism for public chain;
4.Well-rounded consideration on industry compliance and provision of optional identification modules;
5.The interaction with the real world is realized by using the data under the chain as the trigger condition of the main contract.

4.Technological Resolution
LHD, based on the PoC consensus algorithm, designs a long-term incentive economic model to ensure the benign development of the encrypted currency. At the same time, it also makes improvements to the existing PoC and upgrades it to CPoC consensus(Conditioned-Proof of Capacity).

4.1 LHD Distribution and Mining Mechanism

4.2 LHD Economic Model
The consensus algorithm of LHD is upgraded on the basis of Burstcoin PoC2 (Proof of Capacity), which is called CPoC (Conditioned Proof of Capacity). Prevent economic model attack, PoW maintenance cost is high, mining machine monopoly, power resources monopoly.

4.3 LHD Architecture and Consensus Algorithm
The LHD wallet is derived from Bitcoin and the consensus from BurstCoin.
Bitcoin started in 2009, the stability of wallet and blockchain is widely accepted after 10 years of iterations, it is safe and reliable to implement the PoC consensus upon the Bitcoin QT wallet.
BurstCoin started in August 2014, and upgraded to PoC2 in 2018 after 4 years of iteration.
Combining the advantages of Bitcoin and Burst, LHD has currently become the most reliable public chain with PoC consensus algorithm. Since its launch on August 2019, LHD has grown steadily in computation power, withstood numerous tests, attacks, and cracks, and so far no major loopholes have emerged.
By adopting the mature PoC2 mechanism, a stable and reliable consensus mechanism is introduced to build community confidence in the LHD public chain.
Due to the strong development of BHD public chain in PoC ecology, the hard disk mining machine realizes the compatible characteristics of 'one machine for multiple coin mining'. When you mine with the hard disk, you can mine LHD and BHD at the same time.
The LHD wallet inherits Bitcoin's excellent P2P network architecture and UTXO system, which is mature and stable. There is condition for mining participation, 6LHD is needed as mortgage for enough mining. Through the conditioned mining, it is helpful to the stability and sustainable development of the whole community.
The cPoC ecosystem model includes mining pool, miner, crypto currency holder, wallet, exchanges and hardware vendor. The positive inner cycle and entrance of outside resources would bring expansion and development to this ecosystem, the rising price of LHD would attract more miners; more miners coming to the system will lead to further price increase.
Blockchain ecosystem(from the Internet)
The cost of PoW is influenced by four factors: cost of dishonesty, cost of mining, level of difculty and cost of mining devices.

4.4.1Miner mining process：
1.Plot
Plot Miner plots file at local hard disk, and uses hash value to fill the disk with Shabal algorithm. We regard plot file (p disk) as the process of software making "PoC mine machine", releasing the power of monopoly mining machine manufacturer to every ordinary person.
The larger the storage space, the more hash value could be filled, and higher block generation rate. Hash algorithm uses Shabal256, which is anti-ASIC.
2.Transaction
Transaction Wallet makes up the P2P network(inherited from BTC): Transactions happen between wallets.
3.Forging
Forging Miner use wallet to listen to the P2P network, once a block is received, the packaging process of the next block starts. Wallet composes a block, sends the hash value of the block to miner, then miner finds the matching nonce.
Once wallet receives nonce, it turns the nonce to deadline, wait for the time to end and then broadcast the block.

4.Verify
Verify Receives the block, verifies it.

4.4.2 Generating a Nonce
The first step in creating a nonce is to make the first seed. The seed is a 16byte long value containing the Plot ID and the nonce number. When this is done we start to feed the Shabal256 function to get our first hash.
We have produced the first hash. This is the last hash in the nonce. Hash #8191. Now we take this produced hash (#8191) and pre-append it to the starting seed. The result will now be our new seed for the next round of shabal256 computation.
We now have produced two hashes. Hash #8191 and Hash #8190. This time we pre-append Hash 8190 to the last seed we used. The result will now be a new seed to feed Shabal256.
Once again, we have created a new hash. This procedure of pre-appending resulting hashes to a new seed will continue for all 8192 hashes we create for a nonce. After iteration 128 we have reached more than 4096 bytes in the seed. For all remaining iterations we will only read the last 4096 generated bytes.
Once we have created 8192 hashes we are now going to make a Final hash. This is done by using all 8192 hashes and the first 16bytes as seed.
The final hash will now be used to XOR all other hashes individually.
We have now created our nonce and can store it in a plot file before we continue to the next nonce.

4.4.3 PoC Format
The PoC2 nonce format is created the same way as PoC1 with a slight addition to the end of the process. To create a PoC2 formatted nonce we need to shuffle the data around. The data shuffling process: 1. Dividing the nonce in 2 halves, get a range with scoops 0–2047 and 2048–4095. 2. Name 0–2047 the low scoop range and 2048–4095 the high scoop range. 3. Take the second hash from a scoop in the low range, and swap it with the second hash in its mirror scoop found in the high range. Te mirror scoop is calculated like this: MirrorScoop = 4095 - CurrentScoop

4.4.4 Plot Structure
When we are mining we read nonce from one or more plot files. The miner software will open a plot file and seek the scoop locations to read the scoops data. If the plot file is non-optimized, the scoop location will be on more than one place. In the following example the miner will be seeking and reading scoop #403.
This is not the most effective way since the miner will spend a lot of time to seek new locations on the storage device to be able to read the scoops. To prevent this, we can optimize plots or use plotter software that creates optimized plots from the beginning. Optimization is done by reordering the data in the plot file and grouping all data from the same scoop number together.
Basically, what we have done is to divide the plot file into 4096 portions where we split up all the nonces data based on scoop numbers. When the miner now wants to read Scoop 4096 it only seeks one time and read all data sequentially. This provides better performance.

4.4.5Mining and Block Forging
ALGORITHMS AND ACRONYMS
Shabal / Sha256
Shabal/ Sha256 is the name of the crypto/hash function used in BHD. Shabal is the main function in BHD. It is a rather heavy and slow crypto compared to many other alternatives like SHA256. Thus Shabal is a good crypto for Proof of capacity coins like BHD because we store the pre-computed hashes while it is still fast enough to do smaller live verification. BHD uses the 256bit version of Shabal, which is also known as Shabal256.
Deadline
When you mine and process Plot files, you end up with a value called deadline. These values represent the number of seconds that must pass since the forging of last block before block-forging is allowed. If no one else forges a block during this period, you can forge a block and get a block reward.
Block reward
If you are lucky enough to cast a block, you will get BHD. This is called a block reward. For every 420000 blocks, the block reward is reduced by 50%. The initial reward is 25 BHDs per block, of which 1.25 belongs to the Foundation. Under full conditions, the miner gets 23.75 BHDs.
Base target
Base target is calculated from the last 288 blocks. This value adjusts the difficulty for the miners. The lower the base target, the harder it is for a miner to find a low deadline. It gets adjusted in a way that BHD can have an average of 5 minutes for each block.
Network Difficulty
Network Difficulty, or NetDiff in short, is a value that can be read as an estimate on the total amount of space in Byte dedicated to mine BHD. This value changes with every block in relation to base target.
Block Height
Every block forged gets an individual number. Every new block forged gets the previous block's number + 1. This number is called block height, and can be used to identify a specific block.
Generation Signature
Generation signature is a based from the previous block merkle root and block height, This value is then used by miners to forge a new block. Generation signature is 32bytes long.

4.4.6 Mining Process
The first thing that happens when you start mining, is that the miner talks to the wallet and asks for mining information. This information contains a new generation signature, base target, and the next block height. Before the wallet sends over this info, it creates the generation signature by taking the previous generation signature together with plot id and runs this though shabal256 to get the new hash. The miner will now take the new 32byte generation signature, and the 8byte block height, and put them together as a seed for Shabal256. The result will be a hash value called Generation hash.
Now, the miner will do a small mathematical operation on this hash to find out which scoop number to use when processing the plot files. This is done by taking the generation hash modulo 4096, as there are only that many scoops.
Next step for the miner is to read all the 64-byte long scoops from all nonces in all plot files. It will process them individually through shabal256 together with the new generation signature to get a new hash called target. This target is now divided with base target and the first 8bytes of the result is the value deadline.
Target = shabal256 (scoop data, generation signature)
Deadline = target / base target;
To prevent so-called "nonce spamming" to the wallet, the miner usually checks if the current deadline found is lower than the lowest one it has found so far. Usually there is 25 also a max value that can be set, as ridiculously large deadlines are of no use to anyone. After these checks, the miner submits information to the wallet. This information contains the numeric plot ID bound to the plot file, and the nonce number that contains the scoop data used to generate the deadline.

4.4.7Block Forging Process
Handling Deadlines
The wallet has now received the information submitted by the miner, and will now create the nonce to be able to find and verify the deadline for itself.
After this is done, the wallet will now check and see if an equal amount or more seconds has passed as defined by the deadline. If not, the wallet will wait until it has.
If a valid forged block from another wallet is announced on the network before the deadline has passed, the wallet will discard the mining info submitted since it is no longer valid.
If the miner submits new information, the wallet will create that nonce and check if the deadline value is lower than the previous value.
If the new deadline is lower, the wallet will use that value instead.
When the deadline is valid, the wallet will now start to forge a block.
Forging
Te wallet will start by getting all of the unconfirmed transactions it has received from users or from the network.
It will try to fit as many of these transactions possible until it hits the limit of 8M, or until all transactions are processed.
For each transaction the wallet reads, it will do checks. For example, if the transaction has a valid signature, if it has a correct time-stamp, etc.
The wallet will also sum up all of the added transactions amounts and fees.
What LHD inherits from BHD and sets in comparison with BHD:
1.LHD changes the block size to 4M/block, and the block becomes larger, and a single block can contain more transactions to improve the transfer speed.
2.The block time is adjusted to 5 minutes, the block time is halved, and the transfer speed is increased.
3.The initial block reward is adjusted to halve every for 4 years; the initial block reward is halved to give the community more time to gather community resources, and the miner group can share more benefits while maintaining the total money supply of 84 million.

4.4.8 LHD Technology Characteristics
PoC2 consensus algorithm；
a.Block generation 5 minute，faster transaction verification；
b.Block size 4m，network efficiency optimized；
c.Zero-knowledge proof is to be added when whole network capacity reaches 3000p；
d.Hard disk mining，anti-ASIC，no dedicated equipment requirement；
e.Environmental friendly, low energy consumption, low noise；

4.4.9 Transaction
BHD transaction structure is the same as Bitcoin , that is, UTXO to UTXO 's chain . This type of transaction design has also been available for many years, and it is also an effective way to achieve its basic properties.
5.LHD Coin Mechanism
LHD fundamentally aims to solve the oligarchic tendency such as high energy consumption mining bully, which needs a set of perfect, self-consistent consensus algorithm, double incentive monetization and free circulation of value, so that users can reap their own value and income conveniently and low cost; and at the same time, it is consistent with the interests of LHD, forming a win-win autonomous ecology. The ecology is mainly carried out through the following incentive means:
LHD is an upgraded version of BHD, can also become the BHD2.0 version, because of pre-mining of BHD team, a large number of extremely low-cost tokens are owned by the BHD team. For the later stage of the project, the influence of this part of coins - "original sin" needs to be shouldered by a large number of miners. In order to eliminate the original sin of BHD, LHD embraces zero pre-mining, and a certain amount of LHD will carry out IEO, at a very low cost, as give-back to the early creator miner, making the cost of early miners relatively low. "One machine for multiple mining" also means no added investment in technology and equipment. Miners should obtain BHD, LHD and other PoC coins at the same time;
We encourage the participation of more early miners, so this is to enable all users involved in the creation of liquidity, to enjoy the corresponding returns paid by the labour. the Creator miners will have some voting permission in the community autonomy in the future. Users are required to participate in IEO early or start mining early to become a early-stage miner.

6.Development Roadmap

7.An Autonomous Community
LHD development and marketing conducted by any individuals or organizations are all anonymously completed. In the early stage of LDH, autonomous community members are responsible for solving the problems that need to be solved urgently in the current blockchain environment, alleviate high energy consumption, waste of resources, anti-monopoly mining, and reduce the risk of miners.
In the later stage, the community autonomous committee will be established(if necessary), and the community will vote to solve the related problems of LHD. LHD's vision is to create a decentralized autonomous management project and community of PoC, so that everyone can share the power equally, and share the blockchain and the era dividend brought by PoC.