The Bitbon System | What is it and How does it Work?

cryptoinvestbo (33)in #cryptocurrency • 6 years ago

What Is the Bitbon System in Simple Words?
For many investors, crowd investing is a rather promising financing model aimed at receiving profit.
In principle, a crowdfunding system is quite convenient as a tool for investing and attracting funds through the Internet. But, despite the obvious advantages, such platforms have a number of problems, which make their operating mechanism imperfect. Three main disadvantages can be distinguished:
difficulty of entering the exchange from the legislative perspective and complexity of audit procedures;
high level of risk for investors;
major investors immediately take on promising startups while less profitable projects, which have less favorable terms, receive micro-investments.
With the emergence of Blockchain, it became possible to reduce the existing difficulties during investment through ICOs (Initial Coin Offerings) or, in other words, crowdsale. This technology is similar to crowdfunding but can be carried out on a larger scale and based on the Blockchain technology. This significantly facilitates investing and makes it more available. However, a high level of risk doesn’t disappear and even increases because ICOs are not regulated by any legislation. Thus, developers of platforms for attracting financing were faced with the task of solving this issue. Already now, there are projects allowing investors to minimize possible losses and become more confident in the safety of their investments. The Bitbon System is one of such Blockchain platforms whose operating principle is based on using patented technologies.
Capabilities of the Bitbon System and Its Operating Principle
The Bitbon System is a large-scale infrastructure project created on the basis of the modified Ethereum Blockchain. In general, it can be called an asset management system and a platform for investing but with broader opportunities. The use of the Bitbon System allows achieving a new level of work with digital assets:
increasing reliability of data storage in digital format;
implementing effective methods for accounting and managing rights to assets;
quickly and safely transferring property rights to assets;
interacting with the System participants with absolute transparency;
receiving additional income from investing in projects in a legal way.
All abovementioned capabilities are implemented by means of Blockchain and smart contracts. These components provide decentralization and transparency of interaction among users. It means that the System is managed not by one specific individual or a group of people but by each user according to the Bitbon amount in his/her Assetbox (wallet). Such an operating principle excludes intermediaries in business relations between entrepreneurs and a bureaucratic model of managing the social and economic segment as a whole. Unlike many existing platforms, any activity in the Bitbon System is completely legal and, therefore, it ensures secure interaction of all participants. All innovations integrated into the Bitbon System have been patented in many countries, which proves the uniqueness of its components.
Bitbon itself is a digital financial instrument used as a payment unit by users. Unlike cryptocurrencies, the price of which depends on their demand, Bitbon has all the properties of a crypto asset, and its value is backed by a percentage of real assets. The System users can sell their Bitbons and use them for settlements like fiat money. Bitbon can be converted to Projectbon, which is an instrument corresponding to a certain part of the participant’s property rights to a specific project. In other words, Projectbons represent digital shares in the Bitbon System purchased by an investor during Contributing. Contributing means a type of activity of a Contributor (investor) in the Bitbon System aimed at receiving additional income from investing in the selected project.
Let’s imagine the situation: an entrepreneur has a business plan and needs to attract financing for its implementation. Outside the Bitbon System, he/she would have to use crowdfunding platforms or ICOs. In the Bitbon System, the Contractat (entrepreneur) initially sends his/her project to the Bitup-Agency, which has the right to make a decision on the admission of promising projects to the IBO (Initial Business Offering), i.e., financing. The Bitup-Agency includes lawyers, auditors, business analysts and other individuals who can certify documents and control the implementation of contracts. The Bitup-Agency conducts preliminary audits completely relieving Contributors from such work, which significantly facilitates and accelerates the process of selecting interesting projects. The projects, which have been approved and admitted to the IBO, automatically can be considered as financially lucrative to various extents.
Approved projects are placed in an appropriate rating indicating their level of backing by assets. This enables investors to independently analyze each project and come to certain conclusions regarding its potential.
During the next IBO stage, Contributors exchange their Bitbons for Projectbons of the selected project, thereby investing their funds. The number of Projectbons determines the share in a business project.
Bitbon Public Contract means a digital document, which stipulates the terms and conditions of the agreement between the Contractat, Contributors and the Bitup-Agency as well as their rights and obligations. All transactions in the Bitbon System are recorded in the Blockchain and cannot be modified or canceled. This ensures data integrity and transparency of all transactions carried out in the System.
Where Can the Bitbon System Be Applied, and How Does It Work?
The concept of the System is formed in such a way that its use will eliminate weaknesses in many spheres of activity, including the economic and social spheres. It can be applied in the fields directly related to data storage: medicine, education, science, industry, art, business, government control and others. By using cryptographic data protection methods, it is possible to digitize all existing paper archives and other documents and ensure their complete safety and immutability. For example, the impossibility of unlawful information use excludes any copyright infringement. Thanks to Blockchain, representatives of the art field protect their creative works from plagiarism and piracy by placing them in the Bitbon System. The impossibility of canceling executed transactions allows organizing completely transparent voting, exams, business deals etc.
For better understanding, let’s look more closely at the mechanism of this System as exemplified by Contributing.
Let’s imagine that a scientist has invented a perpetual motion machine. He has a certain amount of money for realizing his idea and conducting research, but it is not enough to fully implement the project. So, the inventor contacts the Bitup-Agency, which evaluates the project based on its backing and feasibility. The project will be assigned a category (A, B or C) if the experts from the Bitup-Agency confirm that the project is sufficiently backed by assets and has a promising concept. Depending on the initial amount of money, which the inventor has invested in his own project, the Bitup-Agency assigns a relevant category and admits the project to the IBO. Let’s suppose that the project of the perpetual motion machine was assigned the A category — high level of backing. In this case, the Bitup-Agency will provide the Contractat (inventor) with 40% to 50% of the total Bitbon amount required to implement his project. The Bitbon Capitalization Fund is a component of the Bitbon System, assets in the account of which belong to all System users in parts equal to the Bitbon amount in their Assetboxes. The Bitbon Capitalization Fund automatically participates in the Contributing process and issues a certain amount of Bitbons for a specific project depending on its category. For example, 1,000 Bitbons are required to implement the project of the perpetual motion machine. The Bitbon Capitalization Fund will provide the Contractat with 40% of the total amount as soon as Contributors collectively finance 60% of the project. Based on the provided conditions, the project of the perpetual motion machine has good indicators, a high level of backing and, therefore, will quickly attract investments.
Unlike crowdfunding platforms and ICOs, which initially collect the entire amount of funds necessary for project implementation, the Bitbon System finances projects in stages. All Bitbons collected for a specific project are stored in the Masterbox (wallet) and are credited to the Contractat’s Assetbox in installments according to the project implementation stages specified in the Bitbon Public Contract. Using the project of the perpetual motion machine as an example, let’s suppose that the first stage of the project implementation includes research, purchase of tools and raw materials. To that end, the required amount of Bitbons is credited to the inventor’s Assetbox. The next installment of Bitbons will be credited to the Assetbox upon fulfilling all conditions of this stage. Let us recall the fact that each action in the System is recorded in the Blockchain, therefore, cancellation of executed transactions is impossible, and all System participants can view chains of blocks. Stage-by-stage financing is one of the important features of Contributing in the Bitbon System that distinguishes it from other existing platforms for attracting investments.
If a project seems financially lucrative, but has no backing or is insufficiently backed by assets, the Bitup-Agency can still admit it to the IBO. However, such a project will belong to a lower class and will be assigned the C category. This is intended to enable Contributors to comprehensively evaluate the offer taking into account all possible risks, payback periods and potential profit.
How to Become a Bitbon System User
In order to become a Bitbon System user, you need to complete registration and verification procedures and provide necessary documents. Any Internet user can register and become the owner of a certain part of property rights to assets designated in Bitbons. These digital assets can be used based on your own needs, including payment for goods and services. In addition, organizations with authority to provide legal, audit and analytical services can receive the Bitup‑Agency status in the Bitbon System. In order to register your own Bitup-Agency, in addition to completing standard procedures, you have to carry out additional actions and provide relevant documents.
From the Developers: Why Does the Bitbon System Gain Popularity?
Simcord Holding is the developer of the Bitbon System; for more than 17 years, the Company has specialized in research and development of software products and services for working in financial markets and crypto industry.
The Simcord team claims that the Bitbon System can solve many problems existing in the economic and social spheres.
As the concept creators have explained, the System is so complex that it can be used in almost any area of human activity. The idea is quite universal to influence social and economic relations on a global scale. The System is designed for continuous development as well as the expansion of its own capabilities through implementation and constant modernization of cutting-edge technologies.
The developers say that, in the future, the real sector of the economy will be integrated into the System, thus ensuring the creation of a completely new community built on trust and transparency of business relations.
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