'''Ethicoin''' (symbol: '''ETHIC+''') is a [[Decentralized application|decentralized]] [[cryptocurrency]] built on the [[BNB Chain]] using the BEP-20 token standard, focused on [[Ethics|ethical]] and [[socially responsible]] practices. Launched on June 2, 2024, Ethicoin aims to empower projects that align with its commitment to integrity, transparency, and positive social impact. It seeks to provide a transparent and accountable financial system while promoting sustainable initiatives.
The token was deployed on BNB Smart chain on June 2nd, 2024.
[[Node (networking)|Nodes]] in the [[peer-to-peer]] [[BNB Chain]] network verify transactions through [[cryptography]] and record them in a public [[distributed ledger]], called a [[blockchain]], without central oversight. [[Consensus (computer science)|Consensus]] between nodes is achieved using [[Proof of stake]], which is implemented by the [[BNB Chain]] that uses a Proof of Staked Authority (PoSA) consensus mechanism and is energy-efficient, minimizing its environmental impact.
History
Background
The concept of aligning financial systems with ethical values and social impact has been gaining traction as a response to traditional financial models. Ethicoin was conceived as a response to these calls, recognizing the need for greater transparency, accountability, and a stronger focus on sustainability within the cryptocurrency space. The project is led by a team of seasoned professionals with vast experience in the financial industry.
2024: Creation
Ethicoin was deployed on the BNB Chain on June 2, 2024, with a total supply of 1 trillion ETHIC+ tokens. The project’s initial focus was on building partnerships with businesses and organizations that share its ethical values and on expanding its community through marketing and educational initiatives.
2024–Present: Development and Expansion
Following its launch, Ethicoin has focused on implementing its roadmap, which includes:
- Establishing partnerships with ethical businesses and organizations.
- Expanding community engagement through social media and collaborative initiatives.
- Token burn to contribute to scarcity and maintain stability (planned for approximately one year after launch).
- Forging partnerships with financial institutions, exchanges, and investment platforms.
- Exploring collaborations with sustainable projects and initiatives.
- Continuously seeking opportunities to expand Ethicoin's utility and adoption.
Design
Units and Divisibility
The [[unit of account]] of the Ethicoin system is the ''Ethicoin''. It is commonly represented with the [[currency symbol|symbol]] ETHIC+.
One Ethicoin is divisible to **9 decimal places** (10^-9). Units for smaller amounts of Ethicoin include the millithicoin (mETHIC), equal to {{frac|1|1000}} Ethicoin, microthicoin (μETHIC), equal to {{frac|1|{{val|1000000}}}} Ethicoin, and nanothicoin, representing {{frac|1|{{val|1000000000}}}} Ethicoin, or other smaller denominations.
Blockchain
As a [[Decentralization|decentralized]] system, Ethicoin operates on the [[BNB Chain]] without a central authority. Anyone can transact with ETHIC+ tokens, using a public address and without requiring any approval. This is accomplished through a specialized [[distributed ledger]] called a ''[[blockchain]]'' that records Ethicoin transactions.
The blockchain is implemented as an ordered list of ''blocks''. Each block contains a [[SHA-256]] [[Cryptographic hash function|hash]] of the previous block, chaining them in chronological order. The blockchain is maintained by a [[peer-to-peer]] network. Individual blocks, public addresses, and transactions within blocks are public information, and can be examined using a blockchain explorer.
Nodes validate and broadcast transactions, each maintaining a copy of the blockchain for ownership verification. A new block is created every few seconds on average (based on BNB Chain's block time), updating the blockchain across all nodes without central oversight. This process tracks ETHIC+ spending, ensuring each ETHIC+ is [[double-spending|spent only once]]. Unlike a traditional ledger that tracks physical currency, ETHIC+ tokens exist digitally.
Addresses and Transactions
In the blockchain, Ethicoin is linked to specific addresses that are hashes of a [[public key]]. Creating an address involves generating a random [[private key]] and then computing the corresponding address. This process is almost instant, but the reverse (finding the private key for a given address) is nearly impossible. To use Ethicoin, owners need their private key to [[digital signature|digitally sign]] transactions, which are verified by the network using the public key, keeping the private key secret.
Ethicoin transactions use the functionality of the BEP-20 token standard on the BNB Chain, involving a transfer of tokens from one address to another. To prevent double-spending, each transfer must refer to an existing supply in the blockchain.
Losing a private key means losing access to the Ethicoin, with no other proof of ownership accepted by the [[Ethicoin protocol|protocol]]. The private key must also be kept secret as its exposure, such as through a [[data breach]], can lead to theft of the associated Ethicoin.
Mining
Ethicoin uses the [[Proof of stake]] (PoS) consensus mechanism of the [[BNB Chain]], which is inherently more energy-efficient than [[Proof of work]]. This design choice was made to minimize its environmental impact.
The Proof of Staked Authority (PoSA) consensus mechanism of the BNB chain ensures the network is secure, and transactions are validated and recorded on the blockchain. There is no mining in Ethicoin, but validators on the BNB chain secure the network.
Privacy and Fungibility
Ethicoin operates with pseudonymity, where transactions are linked to addresses, not real-world identities. While the owners of these addresses are not directly identified, all transactions are public on the blockchain. Patterns of use can potentially be analyzed, though this is limited by the design of the BNB Chain network. For enhanced [[Privacy and blockchain|privacy]], users can use different addresses.
In the Ethicoin network, each Ethicoin token is treated equally, ensuring basic [[fungibility]]. However, users can potentially differentiate between tokens based on their transaction history.
Wallets
Ethicoin wallets are software or hardware used to store and manage the private keys needed to transact on the Ethicoin network. Ethicoin can be stored in any wallet supporting BEP-20 tokens on the BNB Chain, including mobile wallets, desktop wallets, hardware wallets, and web-based wallets.
Scalability and Decentralization Challenges
The scalability of Ethicoin is dependent on the [[BNB Chain]]. While the BNB Chain is a highly scalable platform, Ethicoin's growth may be limited by the capacity of the network. Research shows that transaction fees on the BNB Chain are relatively lower when compared to Ethereum, but scalability remains an active area of development. Decentralization remains a challenge, as the Ethicoin network relies on the infrastructure of the BNB Chain.
Economics and Usage
Ethicoin's Theoretical Roots and Ideology
Ethicoin draws its theoretical roots from the ethical and socially responsible investment movements. It seeks to redefine the role of cryptocurrencies by promoting a transparent, inclusive, and sustainable financial system.
Ethicoin aims to be a tool for positive social change, aligning financial interests with ethical values and environmental sustainability. It seeks to empower underserved communities, promote responsible business practices, and encourage charitable giving.
Recognition as a Currency and Legal Status
Ethicoin functions as a [[digital asset]], primarily designed for investment and to support projects that align with its ethical values. It serves as a unit of account, a medium of exchange, and a store of value within its ecosystem.
The [[Legality of cryptocurrency by country or territory|legal status of Ethicoin]] will vary from one jurisdiction to another. The project recognizes the need for clear regulatory frameworks and will continue to collaborate with regulatory bodies to ensure compliance.
Use for Payments
Ethicoin’s use as a means of payment for merchants is still in the nascent phase, as the project is still new. Its primary use case currently is as an investment vehicle. However, the project aims to expand its utility as more businesses integrate Ethicoin into their operations.
Use for Investment and Status as an Economic Tool
Ethicoin is used as a [[store of value]], with individuals and organizations investing in the token to support the growth of the project. It also has utility for the social impact initiatives that it promotes, providing users a transparent way to support projects that align with their values.
The project is committed to sustainable growth and transparency. By engaging with its community and adhering to high ethical standards, Ethicoin is aiming to establish itself as a stable and trustworthy investment vehicle.