BITSALE WHITEPAPER ABSTRACT E-COMMERCE DRAWING LOTTERY BLOCKCHAIN WHITE PAPER V UPDATED: 7TH FEBRUARY, 2018

Transcription

1 BITSALE E-COMMERCE DRAWING LOTTERY BLOCKCHAIN WHITE PAPER V UPDATED: 7TH FEBRUARY, 2018 WHITEPAPER AN E-COMMERCE PROJECT BASED ON CRYPTOCURRENCY & DRAWING LOTTERY ABSTRACT This document describes the project Bitsale which involves product information, operating concepts and mechanisms

2 TABLE OF CONTENTS Abstract Introduction Business Opportunity and Motivation Project Objectives and Deliverables Product Definition and Conventions Products and Goods Cryptocurrency - Bitsale Lottery Number Operation and Mechanism General Process Buying Lottery Number Determine Winning Number Promotion Prizes Delivery Summary and Conclusion Reference 1/ bitsale.co Whitepaper. Rev.1.0.1

3 INTRODUCTION OF BITSALE PLATFORM 01 Business Opportunity and Motivation Since the dawn of history, people desire to trade for goods and stuffs to diversify their needs for living and improve life experiences. Before the internet was born in 1990s, various places had been introduced as locations for buying and selling tangible or intangible products such as markets, stores, malls, outlet etc. The growth of Internet community and the limitless possibilities gives to the user a good place for commercial entrepreneur, offering almost all kinds of goods to be purchased and delivered to your door. This new online sensation was called electronic commerce or ecommerce. The rapid expansion of ecommerce has made it possible for almost retail companies to set up their own online stores with regularly updated content. Thus, it is now easier than ever to obtain an item from the latest collection of your favorite brand and save more time for checking product price and travelling. The development of ecommerce has given birth to new terms such as electronic funds transfer, online transaction processing, electronic data interchange (EDI), internet marketing, etc. They all designate certain key components of the sophisticated ecommerce system. Beside traditional methods for online payment via bank transfer, credit card, electronic transfer etc. a new digital money called cryptocurrency has been introduced recently for making online transactions. According to, over the last couple years, the term cryptocurrency has been rapidly gaining ground and understanding of its use and value in the public eye. Several terms like Bitcoin, Ether have been introduced and they are all cryptocurrencies using the blockchain technology to keep the currency and technology safe. This digital currency has many benefits and advantages compared to original method such as eliminating fraud, immediate settlement, low fees, security and access to everyone. This is the motivation for project BITSALE to introduce a similar type of cryptocurrency and use it for customer to buy product on ecommerce website. 2/ bitsale.co Whitepaper. Rev.1.0.1

4 In different aspects, the trend of shopping does not stop at buying and paying money. People like to have fun while shopping, they prefer promotion programs, discount rates, happy hours together with all of shopping campaigns that can make them feel excited and get a product with lower than the normal price. Lottery is one type of gambling that involves the drawing of numbers for a prize. It can gather multiple buyers to share the cost and the winner will get the prize. The more lottery number they buy the more chance they can get the prize. The share of lotteries on the world s gambling market is over 30 %. The annual turnover of this market today is $284 billion. Along with the penetration of the Internet and the growing number of devices connected to a network, the number of users who prefer playing this game online is growing. Consequently, the online lottery market today is promising area. Combining above business opportunities this project has been introduced to bring up a novel shopping trend by drawing lottery number. It allows user to use digital currency (cryptocurrency - BSL) to buy lottery number(s) which is evaluated according to each product and get the chance to win the product when the drawing is announced. Bitsale is a blockchain based lottery, the main advantage of which is the complete transparency of all processes taking place on the platform and the fundamental absence of opportunities for fraud. Bitsale itself eliminates the potential for fraud. This is made possible by the concept of blockchain. The marketing component of the lottery, ticket purchase, random number generation, prize payouts etc. are also implemented by this technology, ensuring appropriate payment of earnings to franchise partners and Bitsale s investors accordingly. When the lucky draw is annouced, winner will gets the product as a prize. To claim prize, winner has to assist in further developing and strengthening the value of BSL by sending BSL equivalent to 5% of the prize's value to the burning address. This is surely at an extremely lower price compared to the market value. This gives excitement and fun to your shopping life. On the other hand, Winners can also trade their prizes for BSL if they so wish. 3/ bitsale.co Whitepaper. Rev.1.0.1

5 02 Project Objectives and Deliverables BITSALE applies the lottery concept into the shopping and build up an innovative ecommerce platform. Each product will be evaluated by a certain amount of digital coin called Bitsale (BSL) which is equivalent to several lottery numbers at a specific time. Customers can use cryptocurrency - BSL to buy the lottery tickets until the value of the tickets sold equal to the evaluated value of the product, then the drawing for lucky number will be conducted. The lucky customer holding the winning ticket number wins the prize. Build up an ecommerce platform that user can choose their favorite products or items User has ability to create account and manage their account The system can be linked to user wallet which is having cryptocurrency (BSL) The system can display the value of each product in BSL unit and the relevant number of lottery tickets User can use BSL to buy a portion of the product value and receive the lottery number The BSL price of each lotto tickets might be varied according to policies The system must provide a reliable algorithm to determine the winning lottery number Support customer when there is corruption and enquiries The application is available on both web apps and mobile apps 4/ bitsale.co Whitepaper. Rev.1.0.1

6 PRODUCT DEFINITION AND CONVENTIONS 01 Products and Goods Products and goods sold on BITSALE website are from trusted providers and authorized sellers. They are all brand-new with warranty that meet its manufacturer s policy. Base on the price of the product, it is evaluated with a certain quantity of lottery numbers. At a specific time, the administrator can determine the value of each lottery number in term of cryptocurrency (BSL in this regard). Bitsale E-commerce Drawing Lottery The price of product put up for draw on Bitsale is normally valued 30% higher compared to its actual price in the store to give more customers the opportunity to participate. Therefore, an iphone which is $900 in the store could be valued at $1200 lotto numbers worth on Bitsale s e-commerce lottery platform, and it is equivalent to a certain amount of BSL at a specific time. For example: A Red 128 GB iphone 7 plus being put up for draw on the website at $1,200 lotto numbers worth will be displayed on the e-commerce lottery platform to be won by a lucky customer. System can define one lotto number cost $12, thus, the iphone requires 100 lotto numbers from which a winner will be selected. Can you imagine shopping at an unimaginable lucky lower price, oh! Thanks to Bitsale. The above example shows how the system convert the value of a product to lotto numbers for purchase. The total numbers of lotto required for any specific product to be won depend on the value of each lotto number as defined by the system. This in turn is dependent on the market value of the product up for grab. As observed in the above scenario, the iphone requires 100 lotto numbers which are worth a total of $1,200. Figure describes the profit distribution when a product is sold on Bitsale BSL Buy Back 5% Operation 10% Winner Referral 5% level 3-2% Affiliate 10% level 1-5% level 2-3% Cost 70% Figure General operating concept of BITSALE 5/ bitsale.co Whitepaper. Rev.1.0.1

7 02 Cryptocurrency - Bitsale Overview The main projects of Bitsale (BSL) are e-commerce drawing lottery, market place and bitsale cryptocurrency exchange. these services define the utility of BSL. And as such bitsale encourage potential long term investors to harness this one in a life time opportunity WideDex Cryptocurrency Exchange In addition to other services described; the Bitsale cryptocurrency exchange (WideDex) is another service that will further enhances the usability of BSL. Customers seeking to list their cryptocurrency on WideDex will have to pay the listing fee in BSL. This will no doubt create more demands for BSL and hence not only strengthen BSL but also increases its value. Bitsale Global Market Place This plays the major role of Bitsale e-commerce. It s a market place where buyers meet verified and trusted sellers. This will also create more demands for BSL. Staking Services It is quite worth to note that availability of Staking service in the platform will greatly depend on the financial capacity of the platform to sustain it. Hence, the financial report of Bitsale will be published on the platform and will give a real time information to abreast investors the status of Bitsale at any point in time. This will also serve as a guide for those that understand the power of passive income and are willing to harness the lending services. The profit made from services on platform shall be shared according to formula arrived at by Bitsales. Mobile Application The mobile applications for e-commerce drawing lottery and market place scheduled to be launched by March and April respectively would ensure bringing the Bitsale and its projects to as many smartphones user globally. This will create more demand for Bitsale's services and consequently increase the value of BSL in the market, thus ensuring that BSL hits the target price and above as envisaged according to roadmap. 6/ bitsale.co Whitepaper. Rev.1.0.1

8 02 Cryptocurrency - Bitsale Projected BSL Value We understand that the true value of a product among other factors depends on the demand and supply market for that product. In other words, the real price of a product is dependent on the buyer and sellers. Hence Bitsales will allow the value of BSL be determined by the investors without any form of interference. This partly means, there won t be any restriction to the flow of trade and price at which BSL shall be traded by investors. We believe that the utility of BSL will attract long term investors that understand the potential of a utility coin such as BSL. Base on the utilities of BSL, we believe achieving a set target of $290 per BSL according to roadmap is easy A cryptocurrency is a digital asset designed According to, a cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions to control the creation of units and to verify the transfer of assets. Bitcoin, created in 2009, was the first decentralized cryptocurrency. Since then, numerous other cryptocurrencies have been created. They are based on decentralized control as opposed to centralized electronic money or banking system. The decentralized control is related to the use of blockchain transaction database in the role of a distributed ledger. Cryptocurrency is a digital money, created from code Free of all govermental oversight. The cryptocurrency economy is monitored by a peer-to-peer internet protocol Cryptocurrency is an encrypted string of data or a hash, encoded to signifyone unit of currency Examples of Cryptocurrency Bitcoin Market Cap $11,322,347,786 Ethereum Market Cap $928,068,434 Ripple Market Cap $293,888,278 7/ bitsale.co Whitepaper. Rev.1.0.1

9 02 Cryptocurrency - Bitsale Compared to traditional centralized electronic money through banking system. Cryptocurrency have many advantages such as: Fraud: Cryptocurrencies are digital and cannot be counterfeited or reversed by the sender, as with credit card charge-backs. Immediate Settlement:: The digital assess can be designed and enforced to eliminate third party approvals (Layers, Notary) or delays. Lower fees: There aren t usually transaction fees for cryptocurrency exchanges because it is compensated by the network. These services act like Paypal does for cash for cash or credit card users, providing the online exchange system for coin. Identify theft: Unlike credit card, cryptocurrency uses mechanism that allows the holder to send exactly what he wants to the merchant with no further information but not the access to the credit line where the store can pull the designated amount from his account. Access to everyone: There are billion individuals with access to the Internet or mobile phones who don t currently have access to traditional exchange, these people are primed for cryptocurrency market. Decentralization: A global network of computers uses blockchain technology to jointly manage the database that records transaction. That is, coin is managed by its network, and not any one central authority. Recognition at universal level: Since cryptocurrency is not bound by the exchange rates, interest rates, transactions charges or other charges of any country. Therefore, it can be used at an international level without experiencing any problems. Since then, Bitsale allows customers who have BSL to do the transaction on its ecommerce application. User can use BSL to purchase lottery numbers as tradition exchange methods. Back to the previous example: the iphone is being sold with 100 lotto numbers in a transaction period. The lucky drawing will be performed after 100 numbers are sold out. In that transaction period, system can define 1 lotto ticket cost 20 BSL, hence user can use BSL in their digital wallet to buy the lotto numbers instead of actual dollars amount. In another point of view, the iphone is being sold with 2000 BSL with the rate at that time is 60 cents for 1 BSL. 8/ bitsale.co Whitepaper. Rev.1.0.1

10 02 Cryptocurrency - Bitsale Bitsale Characteristics Similar with the current digital coin in the market as Bitcoin, Ethereum, Litecoin etc. a new cryptocurrency called Bitsale (BSL) will be introduced and based on blockchain technology. BSL inherits all the advantages and characteristics as a type of cryptocurrency Algorithm: X11 Coin Type: POW/POS HYBRID 03 Name: BITSALE 04 Coin Abbreviation: BSL 05 Maximum coin supply: 89,000, Total ICO Supply and Rewards: 8,740, Premine: 40,000, POW block reward: 2 BSL 09 Time between reward: 120 Seconds 10 POS Minimum Staking Time: 1 Hour 11 POS Maximum Staking Time: Unlimited 12 POS Monthly Interest: 3% 9/ bitsale.co Whitepaper. Rev.1.0.1

11 02 Cryptocurrency - Bitsale Bitsale Staking Program We aim to run a simple and secure but unique Staking model so that every users that own BSL can participate in the program. Investors will receive dailly interest rate in Web Wallet according to the Staking Packages you join in. The more staking amount you invest, the higher interest rate you will get. Your Staking investment will be released at the end of the contract however you are allowed to terminate Staking after Staking Lock Period (Days) Staking will be ceased when the coin released out of the system gets equal to the Max coin supply and pre-mined amount reserved for Staking. (Max coin supply: 28 million and Pre-mined amount: 15 million) Staking Package Staking Package Staking Package BSL BSL 101-1,000 BSL 1,001-10,000 Daily Interest: 0.1% Duration: 480 Days Staking Lock Period(Days): >360 Daily Interest: 0.15% Duration: 240 Days Staking Lock Period(Days): >180 Monthly Interest: 0.25% Duration: 120 Days Staking Lock Period(Days): >90 Staking Package Staking Package Staking Package BSL 10,001-50,000 BSL 50, ,000 BSL 100,001 Above Monthly Interest: 0.3% Duration: 90 Days Staking Lock Period(Days): >69 Monthly Interest: 0.4% Duration: 60 Days Staking Lock Period(Days): >45 Monthly Interest: 0.5% Duration: 30 Days Staking Lock Period(Days): >21 10/ bitsale.co Whitepaper. Rev.1.0.1

12 Bitsale Affiliate Program 3% 2% 1% 0.5% 0.5% Gen 1 Gen 2 Gen 3 Gen 4 Gen 5 Bitsale Mining Under the mining program, we can follow the 3 steps below to earn profit: For mining Bitsale, download miner You can mine Bitsale with CPU/GPU Start mining Bitsale With each block, you mined you will get 2 Bitsale, you can decide to solo mining or pool mining, for more pool mining information, please reach us at website: pool.bitsale.co Bitsale Wallet BSL can be stored on the following wallet PC Wallet: Window, Linux, Mac Web Wallet: Bitsale.co Mobile wallet: Android App, ios App. Especially: The wallet is designed to be stored and used easily on the Bitsale ecosystem. Therefore, the security will be extremely high but extremely friendly and convenient for the owner. Mobile wallet app is designed with the highest level of security and it is really a user-friendly app that you would trust in and fulfill your satisfaction 11/ bitsale.co Whitepaper. Rev.1.0.1

13 Bitsale Trading An indispensable value feature of crypto currency is that BSL will be listed on the Crypto Exchanges platform including: Internal trading platform (Launched in February 2018) Global trading platform: Currently BITSALE has been approved by YoBit, CoinExchange.io and Livecoin. At the same time, we also receive good will from many big trading exchanges. Once complete the community and expand the market, BITSALE will be listed on these big exchanges, increasing the value of Bitsale investors and liquidity of BITSALE. Great experience in building and maintaining financial system that helps us develop a robust and reliable exchange platform from the ground up with security, efficiency, speed and scalability. The platform is built with high standards and achieves highest security. Moreover, customer support is also our priority. We shares responsibilities across the entire staffs and company. When a trader has a problem, they get an answer directly from supporter who knows well and always be ready for supporting immediately. To avoid getting stuck while ordering, our matching engine is capable of sustaining millions orders per second, making it the fastest exchanges platform and online 24 hours. The cryptocurrency exchange platform has several features such as Spot trading, margin trading, Anonymous instant exchange, Decentralized (on-chain) exchange, futures etc. which depends on the market needs. It will support for BSL and other coins that have strong credibility, user base and liquidity. The platform is highly architected to support multiple devices and cross-platform trading clients like Web based, Mobile Apps, PC, rest API etc. 12/ bitsale.co Whitepaper. Rev.1.0.1

14 ICO Plan ICO Schedule Open Date End Date ICO Stage Coin Available Price :00: :00:00 Pre-ICO 2,000, $ :00: :00:00 Round 1 3,000, $ :00: :00:00 Round 2 3,000, $0.50 ICO Purchase Limitations Per Account ICO Stages Pre-ICO ICO Round 1 ICO Round 2 Purchase Limit 5,000 BSL 5,000 BSL 5,000 BSL Roadmap Lottery Market R&D E- Commerce R&D Blockchain R&D Release of Mobile Wallet, Web Wallet and Desktop Wallet Staking & Internal Exchange Development E-Commerce Drawing Lottery Platform Complete Global Online Lottery E-Commercial Drawing Website and Mobile Application Propose to be listed on popular exchanges (Yobit, Coinexchange, Coinmarketcap...) May 2017 October 2017 December 2017 April 2018 June 2018 August 2018 Blockchain R&D Start CrownSale Launch The Internal Exchange Launch The Staking Program Launching Cryptocurrency Exchange Marketing in over 100 countries 13/ bitsale.co Whitepaper. Rev.1.0.1

15 Premine Distribution Staking Reserve M BSL Round 2 3M BSL Pre-ICO 2M BSL Crowdsale Referral Bonus + Bounty 740k BSL Round 1 3M BSL Reserved for Developments 800K BSL Administrative 15% Allocation of Funds ( ) Development 55% Legal 5% Maketting 15% Security Audits 10% ADMINISTRATIVE Contribute to day-to-day operations of the project, making sure that every parts can run smoothly and the project can grows steadily. MARKETING The fund will be spent for marketing campaign, which helps to encourage stable community growth and release a competitive referral program. BSL will be promoted across multi-media channels to reach our target users. R&D Donate to develop BSL and support for our core team and community developers. Funds is divided for R&D team and will be liquidated as our project milestones are met. SECURITY AUDITS A separate budget has been allocated for ensuring the Security Audits, both for the BSL and the Bitsale Platform. 14/ bitsale.co Whitepaper. Rev.1.0.1

16 ICO Rewards There are several rewards that can be listed as below: Earn referral income in BTC, ETH and decide to withdraw or purchase BITSALE. Instant withdrawal of ICO referral bonus. You can even earn without investing or participate in the ICO. We will pay you for each investment or coin purchase made by your referrals with commission: 3 Levels: 5% + 2% + 1% 20 BSL reward for early deposit of BTC/ETH. The promotion will stop when ICO is over. Note: All unsold and unallocated coins will be destroyed and additional release of coins will not be possible Buy Back Plan We will use 10% of the profit of Bitsale Ecosystem to buy and burn coin every 3 months. When there is a winner, to get the prize, they have to use 5% value of the prize to buy BSL and burn. Address of Wallet used to burn coin will be published to the community for transparency. This practice is applied to ensure the value of BSL can keep increasing in the future. Lottery Number A lottery is a form of gambling that involves the drawing of numbers for a prize. Lotteries come in many formats. For example, the prize can be a fixed amount of cash or goods. In this format, there is risk to the organizer if insufficient tickets are sold. Many recent lotteries allow purchasers to select the numbers on the lottery ticket, resulting in the possibility of multiple winners. Bitsale defines a certain amount of tickets corresponding to the value of the product. In the above example, the iphone $1,200 has determined with 100 lotto numbers. To limit the risk of drawing lucky lotto while insufficient tickets are sold, Bitsale only ends one transaction period after all tickets of that product are sold out and note that the ticket price might be variant in different period of sales. 15/ bitsale.co Whitepaper. Rev.1.0.1

17 OPERATION AND MECHANISM 01 General Process BITSALE product operation is described generally as in figure Account Register Link to BSL Wallet Purchase Lotto Tickets Receive Lucky Number Wait for Lucky Drawing Receive winning product Figure General operating concept of BITSALE 02 Figure 1.1 describes the general operating concept of BITSALE product. Customer starts to register for their accounts and link to their BSL wallets. They can choose their favorite products and use BSL as a digital currency to pay for lottery tickets accordingly. When all the all the tickets of that product are sold out, system will perform lucky draw and the customer who is having the winning code obviously get the product delivered. Figure 1.2 shows details of the process and visualize how a product is evaluated and the lotto number is sold randomly. Buying Lottery Number When customer buy a lotto BSL Lotto 42 Lotto 43 BSL Lotto 55 Lotto 65 number by BSL, system consider a portion of that product has been sold and Iphone 7 Plus 128 GB Lotto 1 Lotto 2 Lotto 3 Lotto 4 Lotto 5 Lotto 6 BSL Lotto 62 Lotto 90 Lotto 60 Lotto 88 randomly generate a unique lotto BSL number on each ticket starting from for that customer account. Users can buy as many number as they can, the more ticket they purchase the more percentage of the Lotto 98 Lotto 99 Lotto 100 BSL Lotto 77 Lotto 80 Lotto 33 Lotto 34 product they can have. When this sold out percentage reaches 100%, end of the sell period and the lucky draw will be performed. Lotto 50 Win Until all tickets are sold cut Figure General operating concept of BITSALE 16/ bitsale.co Whitepaper. Rev.1.0.1

18 03 Determine Winning Number There is mechanism to determine the lucky lotto number. The system ensures the equity and transparency of the calculation. The details of mechanism to identify the lucky number are described from step 1 to step 4 below: Step 1: Determine the timing factor (T): Step 2: Determine the total tickets of that product value (A): Depending on the value of the product, the corresponding lotto tickets will be sold out. At this step, the system will have the total tickets has been sold out for that product. In our example, A = When all the tickets are sold out it means the selling period has ended. System will get the total buying time of the last 50 transactions up to millisecond unit to determine the timing factor (T) in number format (hh:mm:ss.ms -> hhmmssms) even though there might be more than 50 transactions. Example: The iphone s tickets were sold in 72:30: (hh:mm:ss.ms) while last 50 transactions took 04:13: until finished. Then, timing factor (T) = Step 2: Determine the lucky number (X): 3 Step 3: Determine the absolute result value (B): Divide the timing factor (T) by the total tickets sold (A) and determine the absolute result of that fraction Example: We have, T = and A = 100, The result of (T / A) = , hence the absolute result is B = The lucky number (X) is identified by performing the calculation as below: X = [T- (B x A)] Where, is the fixed and the starting lotto ticket number Example: The lucky number is: X = [ ( x 100)] = The key factor applied in calculation is the total timing of last 50 transactions count to millisecond unit. This ensures the lucky drawing process is under monitored with reliable mechanism and transparent to all customers. 17/ bitsale.co Whitepaper. Rev.1.0.1

19 04 Promotion The user can participate in promotions and draws which are present on the Bitsale platform. Any player that invite other players to the platform using his own link can receive up to 15% of the invited players winning on a constant basis according to each level. Receipt of winnings from a game with friends is governed by the following rules: 1% at level 1, you must have bought 1 ticket for the draw. 3% at level 2, you must have bought 3 tickets for the draw. 5% at level 3, you must have bought 7 tickets for the draw. Thus, the player is interested in inviting other players, because every invited person will greatly motivate the promotion benefit for the player. 05 Prizes Delivery When the winner is announced, the product will be ordered from Amazon and delivered to winner s address. However, the winner has another way to retrieve for their reward which is by BSL. They can either choose winning product or get the equivalent BSL at that ending period of sale. Previous section has mention that the BSL price of product might be varied at a specific time during the period of selling. Hence, Bitsale is flexible enough for customer have another choice to get the BSL for their wallet with the latest price of product when selling period closed. 18/ bitsale.co Whitepaper. Rev.1.0.1

20 SUMMARY AND CONCLUSION BITSALE is an ecommerce platform based on cryptocurrency BSL and drawing lottery. The products are evaluated and sold on the website with various values in term of multiple lottery numbers. BITSALE allows user to use BSL to buy lottery number(s) according to each product and get the chance to win for the product when the drawing is announced. The exchange rate of BSL and lotto price might be different during each selling period. The more lottery the customers buy-in, the more opportunities they can win that product with lower its original price. The robust system and reliable mechanism base on total timing of last 50 transactions that help BITSALE determines the lucky number and make it transparent to customers. The blockchain technology ensures the security Bitsale generation together with all the blockchain process in the system automatically. Flexible system allows the prizes be ordered from Amazon and delivered to the winner s address accordingly otherwise, customer can decide to get their product in term of Bitsale instead. RISK We don t fully guarantee BSL will increase in price, or bring in benefits. Please be aware that citizens of this country: US, China,South Korea cannot join our crowdsale. If the country you are living in doesn t allow this ICO investment, please don t join BSL crowdsale. In case you still want to participate, please be aware of the risk you must take. Please be aware that owning BSL doesn t mean that it constitutes a share of, equity of, or ownership of the BSL Platform. In a nutshell, you should invest the money that you can afford to lose and enjoy our platform. 19/ bitsale.co Whitepaper. Rev.1.0.1