Aryacoin : A Peer-to-Peer Electronic Cash System [email protected] Aryacoin.io 1. Introduction The launch of Bitcoin was revolutionary, allowing people to transfer money anytime and anywhere with very low transaction fees. With no third party involved in transactions, involving only the sender and receiver, it was the perfect model for decentralization. All transactions are verified computationally and accounts are protected with strong encryption practically impossible to break. Along with this the base algorithm that governs Bitcoin known as Proof Of Work allows enforcing decentralization. Bitcoin was created so that it would not be controlled or regulated. However, exchanges and governments are now increasingly regulating Bitcoin and other cryptocurrencies. Aryacoin was developed to overcome these restrictions on a free currency. Along with this, the Proof of Work algorithm which governs transactions and blocks in Bitcoin like coins also enables attacks like 51% attacks which still follows the principles of decentralization but allows an attacker to revert legit transactions if the attacker gains a significant share of mining power on the network, this attack on Bitcoin chain is nearly impossible to achieve due to the sheer amount of mining power working to enforce POW, to prevent such attacks on Aryacoin, AYA uses Delayed Proof Of Work. 2. No Restrictions The coin is similar to Bitcoin and Litecoin, except for the usage in the real world and how it will be traded and exchanged by the users. The users can buy and sell the coin without restrictions and without verifications as there would be sales platforms that will be set up in locations where people can just go in and trade the coins without restrictions. This enables the coin to be truly anonymous and gives it usage in real life. Along with these Aryacoin provides users with platforms to use and trade AYA and another crypto freely and without restrictions.
3. Transactions The coin is defined by a chain of digital signatures, each transaction sent to any receiver needs to be signed by the sender using the sender’s private key and is sent to the receiver's public key. Once the transaction confirms on the blockchain the “owner” of the coin changes from the sender to the receiver. Now the new owner(receiver) of the coins can sign the transactions using their own private key to spend the received coins. This approach also allows users to send the same coins to multiple multiple receivers as the receiver cannot verify if the sender double spent the coins. This is prevented by using nodes that are responsible to keep a track of all the transactions on the current active chain. This enables users to identify the legit transactions as this enforces ownership of the coins and hence once a transaction is confirmed by the nodes, all the double-spend transactions from the sender are rejected by the nodes and there is only one active chain with no double-spent transactions. 4. Delayed Proof-of-Work Standard Proof-of-Work: The standard proof of work allows “miners” to use CPU and GPU computational power to solve and verify SHA256 cryptographic hashes for each block, this enables the chain to be secure and any tampering with the chain doesn't work as the hashes would not match. This also follows the “Longest chain rule” which enables the nodes to only use and keep the longest POW verified chain in existence, this is also the main feature that allows attackers to do 51% attacks. Delayed Proof-of-Work: Delayed proof of work provides another layer of security over the traditional POW algorithm. DPOW enables the blockchain to be more secure against 51% attacks by keeping a log of all the blocks on the bitcoin chain, this enables Aryacoin to use the high mining power that bitcoin uses to secure transactions. As every new block needs to be written on the Bitcoin chain enabling all invalid and other isolated chains which are used to replace the legitimate chain used for 51% attacks to be invalid when compared to log on Bitcoin blockchain, this also comes at a disadvantage as chain validation is dependent on Bitcoin, if Bitcoin is to get attacked by a 51% attack this would make this practice useless but as 51% attack on Bitcoin is very unlikely due to the cost and complex nature of such attacks. DPOW uses 64 Notary Nodes which are responsible to keep coin logs on the Bitcoin chain, these notary nodes are elected every year and are operated independently. All the blocks gain 1 confirmation as soon as they get 1 POW confirmation. Further confirmations are based on the notarization of that particular block.
Due to this safe confirmation, the limit is kept 2+ for all transactions. 5. Network The steps to run the network are as follows: 1) New transactions are broadcast to all nodes. 2) Each node collects new transactions into a block. 3) Each node works on finding a difficult proof-of-work for its block. 4) When a node finds a proof-of-work, it broadcasts the block to all nodes. 5) Each block is broadcasted to multiple Notary Nodes which writes the block hash on the main BTC chain , whenever a new block is received by a node,it must be newer than the previous notarized block or else is rejected by the nodes. 6. Incentive Aryacoin started with providing 1.5 AYA to the miners with every block that is mined. The miners also receive the incentive as the coins used as “Transaction fees” for transactions. So the more the transactions on-chain, the more incentive for the miners to mine each block. The block reward is halved after some time to keep the flow of coins constant and to keep on rewarding the miners. 7. Anonymity The coin provides a decent level of anonymity for all its users. The users can send their transactions to any of the public nodes to be broadcasted, the transaction sent to the nodes should be signed by the private key of the sender address. This allows the users to use the coin anywhere at any time, sending transactions directly to the node allows users from any place and country. The transactions can be even signed offline and then transmitted by any public or private node. Along with these multiple users can participate in CoinJoins which allow their transactions to be more private and secure. 8. Real Life Usage Our team is continuously developing new and innovative ways to use the coins and we are currently developing exchanges where the users can exchange the coins without any fees and any restrictions. Along
with the exchange, we are currently developing other innovative technologies that would allow users to spend our coins everywhere and anywhere. 9. Offline Exchanges We are also working with different offline vendors which would enable us to buy and sell the coins directly to our users on a fixed and variable price. This would allow easy buy/sell directly using cash and allow the coins to be accessible to users without any restrictions which most of the online exchanges have. It would also increase the value and number of users along with new ways to spend the coin. This would increase the anonymity level of the coin and introduce new users into the crypto market and technologies. 10. Transactions Privacy Our transactions are similar to Bitcoin transactions. A transaction is divided into inputs and outputs containing two outputs at most - one for payment and one to return change. The number of inputs could be one or more and it could be one input with large value or could be many small inputs with small amounts. Transactions can be signed and sent directly to the nodes to keep anonymity and privacy. Transactions allow transferring huge amounts with very low fees and low difficulty, allowing faster confirmations. 11. Conclusion Aryacoin is a coin that can be used by anyone looking to use cryptocurrency which allows them to keep their privacy even when buying and selling the coin whilst using the coin during transactions. Proof of work and cryptographic hashes enable transactions to be verified. Delayed Proof of Work enables the chain to be more secure against attacks. Along with using computing power for transaction verification and providing the miners a reward, exchanges and offline vendors permit users to use the coin without any restrictions. Cryptographic signatures allow users to send transactions directly to nodes, maintaining user privacy along with keeping the integrity of the data during the transactions.
References  W. Dai, "b-money," http://www.weidai.com/bmoney.txt, 1998.  H. Massias, X.S. Avila, and J.-J. Quisquater, "Design of a secure timestamping service with minimal trust requirements," In 20th Symposium on Information Theory in the Benelux, May 1999.  S. Haber, W.S. Stornetta, "How to time-stamp a digital document," In Journal of Cryptology, vol 3, no 2, pages 99-111, 1991.  D. Bayer, S. Haber, W.S. Stornetta, "Improving the efficiency and reliability of digital time-stamping," In Sequences II: Methods in Communication, Security and Computer Science, pages 329-334, 1993.  S. Haber, W.S. Stornetta, "Secure names for bit-strings," In Proceedings of the 4th ACM Conference on Computer and Communications Security, pages 28-35, April 1997.  A. Back, "Hashcash - a denial of service counter-measure," http://www.hashcash.org/papers/hashcash.pdf, 2002.  R.C. Merkle, "Protocols for public key cryptosystems," In Proc. 1980 Symposium on Security and Privacy, IEEE Computer Society, pages 122-133, April 1980.  W. Feller, "An introduction to probability theory and its applications," 1957.  Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System”,2008