WASH White Paper 2.0

Transcription

1 WASH White Paper 2.0

2 Introduction. The Relevance of the Blockchain Technology. Blockchain Technology Promotes Regulatory Compliance. Initial Coin Offerings and Cryptocurrencies. Cryptocurrency Overview. The Existence and Availability of Cryptocurrencies. The Benefits of Cryptocurrency. Mass Accessibility. Lower Fees. Immunity to Inflation. Protection from Fraud. Shortcomings of Cryptocurrency. Moral Neutrality. Limit to Growth. Adoption. How Cryptocurrency Transactions Work. What Does the Change in Addresses Mean? What If You Only Intend to Make a Small Transfer? The Uniqueness of Washington Exchange. Washington Exchange Decentralization Benefits. Revenue Model. ICO STRUCTURE. ICO BOUNTY.

3 Introduction These days, cryptocurrencies are gaining high popularity because of their security, independence and speed. Everyone is going off about how amazingly cryptocurrencies are going to transform the world in the next couple of years. Financial technology is one of the sectors that have experienced some of the most tremendous improvements in the last decade. With the innovations that are constantly being brought to the table, it's about to take a toll on the transactions and exchanges. The invention of Bitcoin has transformed the ownership and security of money and assets into something that owners and account holders can comfortably control without having to worry about authorities. There is so much information on the internet about how the various cryptocurrencies work, most of which only cover the fundamentals. From the acquisition of the cryptocurrency to the transfers from one account to another, these cryptocurrencies need to have a viable storage place - some sort of storage unit that most would regard as a wallet. A cryptocurrency wallet is that place you can keep the bitcoins or altcoins you buy and save it for future use. And Washington Exchange is one such platform where you can deposit your cryptocurrency with one click. But before we hop onto that, let's first get the basics. The Relevance of the Blockchain Technology The highlight of the fintech revolution is a decentralized digital leger of transactions all of which take place in across a P2P network of computers. This is what we have come to know as blockchain technology. This leger securely and permanently records the history of exchanges taking place between the associated peers and is visible to everyone connected to the network. The potential impact that blockchain technology has on regulatory enforcement is quite profound as it examines its applications in contexts that either act as a vehicle for cryptocurrencies or as a verification tool. Using blockchain as a verification tool promotes compliance to set regulations and could potentially reduce the cost of enforcement. Given the nature of cryptocurrencies and their ability to conceal and preserve the identities of investors can greatly complicate the ability of the regulators to curb against certain forms of unlawful conduct. So why is blockchain important in fintech technology?

4 Blockchain Technology Regulatory Compliance Considering its numerous applications, blockchain technology provides for the ability to preserve transactions and historical records. The information preserved on a blockchain can automatically be downloaded every time a computer joins the network on which it has been stored. The ability for parties to enter into smart contracts that employ coding on the blockchain to define the terms of the contract and automatically execute it when these product deliveries or terms are met is a bonus. Similarly it can facilitate due diligence when it comes to thirdparty business arrangements, acquisitions and mergers. This means that companies can work with third party vendors abroad to obtain certifications of compliance. When blockchain technology is used as a tool for preserving records, compliance with terms of the involved contracts is important as it has potential to improve regulatory efficiency greatly. This is vouched by lowered costs and expedition of the time that law enforcement authorities or regulators spend on trying to promote legal compliance. This means that regulators could employ blockchain technology to verify the fulfilment of the applicable reporting or licensing requirements by the companies involved quickly and more accurately. With blockchain technology, they can also assess their strengths while monitoring their programs. Initial Coin Offerings and Cryptocurrencies Blockchain technology is also applied significantly as a vehicle for cryptocurrencies. Cryptocurrencies, unlike fiat currencies have no physical form all transactions are carried out and recorded in the blockchain. This means that they are backed by neither a central bank nor government. Additionally, holders of cryptocurrencies maintain their anonymity and can securely access their wallet through a private key. This element of anonymity increases the risk of any fraudulent transactions thus complicating the regulators' role in identifying the perpetrators of unlawful conduct. There's also the issue of the sale of digital tokens or coins via ICO which also takes place in the blockchain. Initial Coin Offerings allow companies to fundraise through the sale of tokens which can be redeemed either for services or goods. The virtual nature of cryptocurrencies tends to make it difficult for authorities of law enforcement to view them as assets, which should subject them to seizure and forfeiture.

5 When blockchain technology is applied as a mechanism for record keeping and verification, it has the potential to reduce the time and costs associated with compliance with regulations and its enforcement. If companies wish to realize this prospect, both companies and the government need to work in tandem in order to address all regulatory concerns to root out any sort of illegal financial transaction. Having assessed the basics, it's important to be familiar with one of the most common and popular application of the blockchain technology cryptocurrencies. Cryptocurrency Overview While debit and credit cards become more and more popular, it's not that hard to imagine a world where physical cash transactions are eliminated completely. Different countries use different forms of currency, which means that if you go to another country, you will have to exchange what you have with their currency to be able to buy goods or pay for services. Virtual currency is a relatively new concept adopted from a series of barter systems running parallel to some elements of traditional cash. This is all due to a reformed computing power in the modern world that allows technology to reshape transactions as a result of cryptocurrency. Basically, cryptocurrency is a virtual, digital currency that employs cryptography as a security feature which makes it very difficult to counterfeit. One of the most endearing allure and defining features of cryptocurrency is its organic nature. So what exactly is cryptocurrency? It is a form of decentralized encrypted currency. In contrast with traditional currency, the value of this type of currency is not underwritten by any bank or the government. The value of cryptocurrency is drawn mainly from a collective agreement that is specific to a particular community. Since cryptocurrency is virtual, it can be a little difficult to attribute any value to it whatsoever. Yet, unlike traditional currency that is unlimited in volume, the limits of cryptocurrency only extend to a fixed number of units. However, it has a scarcity value that is more or less similar to the currency linked to what the gold standard used to have. Cryptocurrency works like traditional currency in so many ways in that they allow people to sell and buy services or products. The only hint of uniqueness is the manner in which it is produced and in the way the transactions are recorded.

6 Cryptocurrency is not produced at the whim of a central bank or government, but created through mining, a process that is used to verify transactions. Miners of cryptocurrency employ bespoke software in coming up with solutions for mathematical efforts. They are then rewarded with a share of the total value of the transaction, thereby creating even more currency. Once the required cryptographic problems have been solved, the solution is tested by the members of a community, after which it is submitted to some sort of public ledger that records this transaction, turning it into a block of data. The block is added to pre existing blocks, forming a blockchain in which every element verifies the other. The nature of cryptocurrency transactions that grants users anonymity makes it convenient for a variety of nefarious activities such as tax evasion and money laundering. The Existence and Availability of Cryptocurrencies There are hundreds of cryptocurrencies available, and more are expected to emerge and flood the scene in the next couple of years as their popularity soars. The first to have ever captured the imagination of the public is Bitcoin, launched in While there are so many of these cryptocurrencies, their popularity varies considerably. As a matter of fact, Bitcoin, being the most established and most popular cryptocurrency, has a market capitalization that is so much greater than the next one hundred of its competitors. The Benefits of Cryptocurrency Inasmuch as merchants have been a little repulsive in adopting cryptocurrencies, there's potential for the uptake to rapidly increase in the next couple of years to make them a very convenient and attractive day-to-day method of payment. There are certain benefits to the use of cryptocurrency that have helped in fueling the increase in cryptocurrency interest that could render traditional banks void. They are as follows:

7 Mass Accessibility Cryptocurrency does not recognize any national borders; it is available to anyone and everyone with access to the digital technology to use it. This takes into account billions of people in the developing world provided they have access to smartphones, especially if they have seen their local currency being affected by the high rates of inflation that would most probably erode the value of their savings. Lower Fees The fees charged on cryptocurrency transactions are far much lower than those interchange fees that are associated with the traditional payment processors. This makes them a more efficient and convenient method for merchants to accept payments. Settlement for payments is also completed instantly to allow recipients to avoid facing lengthy delays while waiting for payments to clear which makes for an easy business cash flow. Immunity to Inflation Unlike traditional currency that has the tendency to diminish in value over time, there's a limited and quantifiable supply for cryptocurrency due to the manner in which it is treated besides the fact that it is immune to interference or manipulation by any central bank or a government. Because there can never be an increase in the number of units constituting a cryptocurrency, they get to retain their value for years. In any case, their value is rather likely to increase than reduce over time. Protection from Fraud In contrast with traditional currencies, cryptocurrencies can never be counterfeited. There are transparent full ownership ledgers that identify all of the available units or coins and their specific owners. Besides, cryptocurrency transactions can only be initiated by the owner or holder of a specific currency, which limits their susceptibility for merchants to initiate transactions for amounts that may be incorrect to zero.

8 Shortcomings of Cryptocurrency There may be several benefits attributed to the emergence of cryptocurrency but that is not to say that there are no disadvantages when you compare it with its alternatives. Some of the limitations to cryptocurrency are as follows: Moral Neutrality The existence of cryptocurrency is not tied to any political allegiance. Therefore, they can be used for some good or ill as their creator never has recourse to prevent any criminal activities as a result of cryptocurrency use. No authority has jurisdiction that affects criminal activities committed by cryptocurrency. Limit to Growth While the capability of a central bank to increase the supply of money in the economy could decrease its value, it also has the ability to promote its growth in the opposite direction. Cryptocurrency only offers a fixed number of units which makes it difficult for governments to incorporate them in igniting a subdued economy. Adoption The rate at which merchants are adopting cryptocurrency is relatively low, although this is improving steadily. This can possibly be due to the threats of hacking that could drain cryptocurrency accounts millions of funds. Cryptocurrency use may not be as widespread just yet but it's still a growing sector. Their transparency and flexibility only implies that it is an industry that is highly unlikely to go away. In fact, banks are now beginning to explore how cryptocurrencies can be incorporated in their traditional banking framework. It's only a matter of time till we start using cryptocurrency credit cards should this investigation yield desirable results.

9 How Cryptocurrency Transactions Work Being the first cryptocurrency ever created, Bitcoin was initially designed to operate as a form of P2P electronic cash. So whether you are accepting cryptocurrency as a form of payment or spending on it, it is imperative to learn and understand how its transactions work. Transactions for cryptocurrencies are more or less like , except they are signed digitally through cryptography then sent to the network for verification. They are public and appear in a digital ledger, the block-chain. With blockchain technology, the history of all cryptocurrency transactions can lead back to where they were originally produced. As a matter of fact, the cryptocurrencies only exist as records of transactions. It's a chain of digital signatures where users transfer cryptocurrencies to the next simply by signing the preceding transaction digitally with a public key on the recipient, compounding to the very end of the cryptocurrency. Payees are able to verify this chain of ownership. Therefore, it is worth mentioning that cryptocurrencies don't exactly exist per se, at least not explicitly physical as it is with traditional cash. Technically, there aren't physical Bitcoins or altcoins, anywhere; not on a bank account, spreadsheet or hard drive, nor are they kept in some sort of server stored away somewhere. Consider blockchain simply as a record of transactions that take place between varieties of cryptocurrency addresses. The respective network records and updates these transactions then shares them across every single one of its nodes so the balances decrease or increase. The current balance and history of every transaction on the concerned addresses can be viewed using tools provided on a specific cryptocurrencies site. These sorts of transactions are far more complex than many would think. It's not that simple to send an amount of cryptocurrencies in one go. Rather, a network and your cryptocurrency wallet need to go through a certain set of stages to ensure that the correct amount of electronic money gets to your desired recipient. Basics of Bitcoin and Altcoin Transactions It is very important that a user or would-be account holder note how Bitcoin and altcoins look like and mark their differences. Transfer of cryptocurrencies is dependent on access to both the private and public keys that are associated with a specific amount.

10 Having cryptocurrencies basically implies having access to a public key as well as a unique corresponding private key that should authorize the cryptocurrencies sent previously to that public key. Public keys are the addresses while private keys are such things as s, passwords and other accounts. Unlike what you would find on a bank statement or an accounting ledger, Bitcoins and altcoins are not just a single record of a coin. They are instead registered as transactions comprising three parts - an amount, transaction output and transaction input. Simply put, the amount is the actual amount of cryptocurrencies that a user sends; transaction output refers to the address to which funds are sent while the transaction input defines the address from which funds originate. It is highly likely that the bitcoins or altcoins you opt to send to someone were sent to you by someone else. The bitcoin or altcoin in your wallet makes it the address under your control. When funds are sent to you, it is actually the address from which they are sent that registers on the network as a transaction output. If these funds are transferred from your account to another, your wallet creates another unique transaction output which typically is the address of the recipient stored on the same network. Should this holder decide to send these cryptocurrencies to another user, their address becomes the transaction input with the recipient's address being the transaction output. By using this system, therefore, the trading of bitcoins and altcoins can be traced back to very inception of the cryptocurrency, which pretty much makes it very easy to find the first person to transfer the funds at any point in time though difficult to uncover their identity. However, it creates a system that is completely transparent where all transactions can be checked at all times. What Does the Change in Addresses Mean? The system used for cryptocurrencies transactions is excellent, there's no point in denying that. But the problem here is that the amounts attached to transactions, their outputs and inputs are indivisible. This means that one cannot transfer half a cryptocurrency. Instead, they will have to transfer an entire one after which the network automatically creates 0.5 cryptocurrencies in change from what is initially sent. This is thereafter sent to a third address controlled by the original sender. This third address becomes a transaction output, thus the address ends up containing multiple transaction outputs. With time, you realize that one cryptocurrencies wallet ends up with a lot of addresses that contain varying amounts of cryptocurrencies as well as change from the transactions. Once you

11 transfer your bitcoins or altcoins, your wallet pieces all the necessary funds together with the use of addresses that contain the different amounts. This results in transactions with several inputs, thus different amounts on different addresses are used in making up the funds. Usually, it is highly unlikely that the inputs get to deliver the exact amount, which always leaves the sender with change. What If You Only Intend to Make a Small Transfer? Luckily for users, most cryptocurrencies can be sliced pretty much thinly indeed. For instance, the smallest divisible element of a bitcoin is known as a Satoshi. It makes for of a bitcoin. However, one Satoshi cannot be sent over the network, reason being it is too small and considering its nature, it would only clog up their network with all those tiny transactions. Nonetheless, the smallest value you can transact is 5340 Satoshis, and while this may seem more than one, it's still very tiny. To further complicate the matter, many of the bitcoin transactions you make will involve a transactional fee. Therefore, you will be forced to add a certain amount of bitcoin before you can send your intended amount. Should you fail to, the bitcoin transaction may not go through altogether. This might be something you want to consider, most especially if you wish to transfer tiny fractions of the bitcoin. The moment you open up your bitcoin wallet after a couple of transactions, what you will begin to see is multiple addresses that contain lots of tiny amounts. This is essentially what bitcoin transactions are all about. It may not particularly be easy to read which obviously would make bookkeeping a little annoying. Yet, it makes it very possible to trace bitcoin transactions throughout the network, which is a significant aspect that brings out the mantra of immutability and transparency of cryptocurrency.

12 The Uniqueness of Washington Exchange There are various decentralized exchanges in the market that are being used. While some are seemingly slow, others are fast and can keep up with the high volume orders on the books. This paper will discuss the types of decentralized exchanges that are fast, fully secured and with high performance that will ensure you get the ultimate experience when transacting in the cryptocurrency market. Washington Exchange is a fully decentralized cryptocurrency trading platform founded by a senior blockchain developer, who has designed and run highperformance exchange platforms for the past 6 years. The company s main architectural goal is to build a smart and high-performance platform, which is able to handle huge amounts of transactions and users without having any issue. More and more people buying cryptocurrencies these days are often looking for exchanges that doesn t charge much fees or doesn t charge at all. Most of the exchanges will charge you approximately 0.2% - 0.5% trading fee. For example, if they get daily trading volume of 500 million, they will generate 100K to 250K. This impact trader s profit margins significantly. As an exclusive offer, Washington Exchange will not charge fees for those who use their native token s pair and will charge only 0.01% trading fee (which is fixed) for all non-native pair. This is a huge advantage in comparison to the other exchanges which are more expensive, where you can see a huge impact on trader s profit margins. One of our goals is to make the general population more informed about the cryptocurrencies, their advantages and safety. This will enhance the adoption of cryptocurrencies and also lead the company to the big stage, where it s going to play a major role in the cryptocurrency world. Washington Exchange offers a safest way to becoming a large exchange where you can rely on good services almost free, platform will set new trends in the field of cryptocurrencies and will help clients make safer and cheaper trading to anyone in the world. So far, the company is believed to influence the whole cryptocurrency market, providing best services on affordable price.

13 We clearly, understand that exchange is a venture with its own risks. In this light, we have fully invested in expertise and advisors who will continuously help in assessing possible risks as well as creating ways to address them. In this era of digitalization, online security is a key issue of concern. This is especially because information can leak to hackers who can use it to access vital information. However, at WASH, our systems are highly secured and always guaranteed no possibilities of hacking. Investing with us will always enhance your peace of mind, knowing that our systems are intact. We continuously check on the security status of our systems and put up measures that will ensure they remain even more secure every time. We are always ahead of the game even when hackers may think that they will have the best tactics. It is worth understanding that the traders and users are of different demographic backgrounds all together. With this in mind, it is also good to notice the sensitive nature of cryptocurrency. That it is not just any other online entity like social media, but rather, something that comes with financial value. Our customer service team knows and understands the technicalities of the trading venture so that they can answer queries from traders accurately and authoritatively. Above that, they all have high public relations skills and communication skills that will enhance client s satisfaction. Owing to the fact that technical development or lack of enough of it is a major problem, we are actively investing in helping to solve this challenge. Some of the key technicalities whose solution is a major focus include; Engaging a high-skilled and dynamic technical team, Enhanced and synchronized interactions across the chain, Decentralization of the trade networks, Enabling cryptocurrencies spend ability and Having block chains that are still within block-chains.

14 Washington Exchange Decentralization Benefits There are a few obvious benefits to Washington decentralized exchanges. First, they allow you to remain in control of your funds. So no risk of the exchange being hacked or going insolvent. This can lead to higher liquidity, as users may be willing to leave orders open on the order book for longer when counterparty risk is gone. Washington Exchange is an exchange that has no single point of failure, such as an institution, a person or a server that is in control and running it. With a decentralized exchange there is no need to trust any single authority it is a trustless service. This also creates a number of benefits beyond this decentralization. Here is most important reasons you need to know before jump in the cryptocurrency market. Identity theft - In the centralized trading platform we give out our identity, credit card information such as Driving License, SSN, Bank Information to everyone we do business with. Through the power of cryptography this is no longer necessary, as everyone can keep their information, identity and keys secure while proving that they have the right credentials. Banking Cartels - Everything is now in the open for everyone to see, and there is no need for large institutions to keep things private. The power of this technology allows everything to be out in the open without compromising security. In the traditional system large institutions could use security as an argument to keep all their information, as well as all your information, privately locked up and backed by their authority. Unbanked - There is no reason any longer to prevent the poor and unbanked from participating in the global economy. Their corrupt regimes and our capitalist-minded financial services no longer need to play an important part in their freedoms. With decentralized exchanges anyone can store and transfer wealth to anyone, anywhere in the world, at almost no cost.

15 Boundless Innovation - With collaborative services like Wikipedia we have seen an explosion of information on topics of all kinds. Wikipedia is many times the size of even the best lexicons. In the new digital age, we need not only to bring money to the internet, but to bring the innovative power of the internet to the services that money can provide: smart contracts, micropayments, and in short programmable money will unleash the exponential growth of informationtechnology into the realm of global, financial services. Open and Transparent - All transactions occurring on the network and all code that is used for running the network is open source and the live software is open to anyone anywhere to inspect, copy and improve upon. Incorruptibly Secure - The intermediaries in the traditional financial system are centralized institutions that can be corrupted, coerced, hacked or robbed. With such centralized systems, single points of failure can be catastrophic. With a decentralized exchange everyone keeps control of their own keys to their own funds. 24/7, Efficient - A decentralized exchange is global service without borders that is available to any member of the free internet. Servers running at every corner of the globe at all times of the day ensure transactions and settlement within seconds. With no need for a brick and mortar institutions, the cost of transactions can be 10x, 100x or even 1000x less than what they are with the traditional system.

16 Revenue Model Listing Fee - This will be the our main revenue source, We will select creative coins and other assets to be listed on the exchange. Exchange Fee - Washington Exchange will not charge fees for those who use their native token s pair and will charge only 0.01% trading fee (which is fixed) for all non-native pair. Withdrawal Fee- Washington Exchange may charge a small fee for withdrawals. Other Fees - There may be other fees the policy may collect for different services such as ICO launch, trading offer, automated algorithmic order and so on. Washington Exchange Token (WASH) Washington Exchange issued the token, called the Washington Exchange. A strict limit of 9M WASH created, never to be increased. WASH will run natively on the Ethereum blockchain with ERC 20. Washington exchange tokens are 1000 times as scarce, in comparison to the other exchange. With only 9,000,000 current supplies versus 1 billion tokens. Washington Exchange (WASH) prices tend to rise when the trader uses to trade our native coin to reduce the fee (zero fee native pair) demand will be high and the number of coins that remain is not increased.

17 ICO STRUCTURE Token Name - Washington Exchange Token Symbol - WASH Total Supply - 9,000,000 WASH Target ETH Accepting - ETH Distribution - 70% Team - 30% Minimum investment ETH Maximum investment - 5 ETH Pre-sale ICO Bonus 300 WASH Pre-sale Start April 20th Pre-sale End April 25th Token Price - 1 ETH = 2400 WASH Bonus WASH Normal sale ICO Bonus 100 WASH Normal Sale Start April 26th Normal Sale End May 26th Token Price - 1 ETH = 2400 WASH ICO BOUNTY To reward those contributors who assist in the promotion & marketing of the Washington Exchange, we would like to offer 50 to 250 WASH coins as a reward. One of the best ways to maximize rewards is via YouTube review tutorial and submit your link. The bounty will be released after ICO. NOTE - Reward available to anyone in the world, regardless of geographic location and language.