I would like to introduce you to a cryptocurrency called SM² Coin we are developing.
We are a team of three computer science students studying at TU Darmstadt with a passion for cryptography and cryptocurrencies. The project is still in the design phase and we are still working on our papers, however, most of the specification is already finished and we are mostly working on details. We will soon attend the Internet of People (IoP) “People first” conference in Berlin (which is on June 16/17), where we will have a speech slot to present our project. We will release our whitepaper before or at the conference, depending on whether we manage to finish it beforehand. Since not everything is finalised yet, I can only give a general overview of the project. We would appreciate it if you spread the word and followed us on Twitter and/or Telegram.
About the project
SM² Coin is a state of the art cryptocurrency that supports decentralised file hosting. The built-in storage market adapts to supply and demand, which should lead to competitive prices. Users can use the cryptocurrency to rent storage from the miners. We estimate to achieve storage prices comparable to Google Cloud because we are so energy efficient.
We learned from the problems of other cryptocurrencies, that waste ridiculous amounts of energy and other resources to maintain the blockchain. We came up with the following solutions:
Novel consensus (mining) mechanism
We use a novel consensus mechanism which uses rented storage space for mining instead of wasted computation power (as is the case for Proof of Work (PoW) based mining). Miners use a proof of storage (PoS) to generate mining power, which is then used to mine new blocks. This way, offering storage for rent to the system is the way to mine, which directly supports the system.
Low power devices
We designed the algorithms to be as computationally inexpensive as possible, while retaining security, to allow low power devices, such as Raspberry Pis and Cubietrucks as mining rigs. We intend for mining rigs to consist of a Raspberry Pi or Cubietruck connected to as many HDDs as possible, to reduce the energy consumption per TB of storage space as much as possible. This will make our cryptocurrency one of the greenest to day, while also making the financial entry barrier to becoming a miner low.
All files are encrypted so that no one can analyse the user’s data. Since the system is decentralised, there is also no authority that can censor or remove data, which could be useful for privacy enthusiasts or individuals that are targeted by authoritarian regimes to securely store and pass on data.
We natively feature payment channels, which allow instantaneous and fee-less P2P transactions. Furthermore, we try to put as little data as possible on the blockchain, and have most smart contracts executed off-chain as well, where the blockchain is only used to settle disputes.