INTRODUCTION1. Introduction Cryptocurrency is an electronic money created with technology,...
48
Transcript of INTRODUCTION1. Introduction Cryptocurrency is an electronic money created with technology,...
INTRODUCTION
1. Abstract 4
Introduction 5
2. Executive Summary 6
2.1. What is LQX? 6
2.2. Executive Summary 6
3. Advantages of LQX 7
4. LQX Goal 8
4.1. LQX Ecosystem? 8
LQX Blockchain Overview 9
4.1.1 Own Blockchain 9
4.1.1.1 Blockchain concept 9
5. Technical Information 10
5.1. LQX Coin Information 10
5.2. Use of LQX Coin 10
6. LQX Features 11
7. Coin Distribution 12
7.1. Distribution 12
7.2. Mined up to 2080 12
LQX CONCEPTS
8. Mining 14
8.1. Cryptocurrency Mining 14
8.2. How it works? 14
8.3. Nodes concept 15
8.4. Mining Pools 15
8.5. Different Types of Cryptocurrency Nodes 16
8.6. Types of Cryptocurrency Nodes 16
Contents
9. Proof-of-Work (PoW) 17
10. List of PoW 18
11. Masternodes 19
12. Reward Program 21
13. Order determination 22
14. Untrust Quorums 23
15. Masternode Protocol 24
16. List propagation 25
17. PrivateSend 26
18. How PrivateSend works? 27
19. Through Linking and Forward Linking 28
20. Security 29
20.1. Greater privacy and resistance to Denial of Service 29
20.2. Passive Anonymization of funds and chaining 29
21. Security Considerations 30
22. Instant Transactions 31
23. X11 Algorithm 33
24. X11 Mining 34
25. Roadmap 35
26. Mining Supply 36
Conclusion 37
27. Privacy Policy 38
28. Terms of Service 39-43
29. Risk Disclaimer 46
30. LQX Media 47
31. Contact Us 47
WELCOME TO LQX WHITEPAPER
ABSTRACTLQX is a cryptocurrency with own blockchain, based on X11 technology – Dash, being developed from Bitcoin and as an incentive network of two levels, known as the Masternode network, including some other improvements.
Also using PrivateSend technology, to increase fungibility and InstantSend to allow instant confirmation of transactions.
1. IntroductionCryptocurrency is an electronic money created with technology, controlling its creation and protecting transactions. Instead, encryption techniques using computers and open source software generate the currency based on mathematical proof, or blockchains.
Cryptocurrencies such as Bitcoin, Ethereum, Dash are decentralized: There’s no one place like a bank where the currency is held, and a private security key tied to an open source ledger proves who holds the value.
As an electronic payment system, cryptocurrencies are instantaneous and have low transaction fees compared to traditional banking systems, which are comparatively slow and have high fees associated, and sometimes you need to wait between 2 and 3 days to receive your transaction.
Bitcoin is the first digital cash created in 2009. It was made by an unknown person or group who went by the name, Satoshi Nakamoto.
After the success of Bitcoin, many cryptocurrencies, known as Altcoins, have emerged. The po-tential of the blockchain to revolutionize the way transactions are made has seen an explosion of interest in technology.
Currently, the cryptocurrency market is full of coins and tokens, with varying intent, motivation and affiliation. The myriad of tokens and projects, some new and ambitious uses of blockchain, oth-er in essence clones with captivating names, serves as an impediment to the widespread adoption of cryptography as a legitimate and borderless alternative to the fiduciary currency.
Bitcoin, despite its constant innovation, has not yet succeeded in be fully accepted and adopted as a currency, due to its volatility and slowdowns for payments remaining widely viewed only as a value reserve.
As the world approaches a decade since the launch of Bitcoin, a definitive identity for cryptocur-rencies still has to emerge. This lack of identity has made the public to see the encryption market as a 2.0 stock market.
Market volatility and saturation intimidating potential adoptants, who consider it not as an alter-native to the currencies, but as an investment opportunity of risk.
5
2. Executive Summary2.1. What is LQX?
LQX is a digital cryptocurrency that enables anonymous, instant payments to anyone, anywhere in the world.
LQX uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are
carried out collectively by the network.
LQX Core is the name of the open source software which enables the use of this cryptocurrency.
2.2. Executive Summary
Currently, the process of exchange is extremely due to the various rules imposed by the market. LQX Crypto (LQX) emerged to solve this issue and revolutionize the process of trading on the mar-ket, creating a virtual system where people from all over the world, from companies to agents can participate in transactions.
Liquidex integrates in LQX features inspired by pioneering technology, of Bitcoin’s distributed accounting consensus, as well as DASH innovations, being a coin with its characteristics and with a consensus algorithm Proof of Stake POS/Masternodes.
The LQX cryptocurrency is valued by the market demand volume, or the greater number of people buying the coin, the greater aggregate value of the same and its price will go up. Along with this system, a market platform will be created, a place where people can buy and sell their owns products and services paying with LQX. Also, users will be able to invest in Masternodes, mining, arbitrage and even funds from invest-ments in cryptocurrencies, where the only payment accepted will be LQX.
Note that this whitepaper, despite an extensive introduc-tion and explanation of the LQX, contains no faults or mathe-matical or cryptography explanations.
LQXThe LQX cryptocurrency is valued by the market demand volume, the greater number of people buying the coin, the greater aggregate value of the same and its price will go up.
6
PAYMENTS WITH LQX
LQX will establish partnerships with companies and general stores, placing POS machines that accept Visa and Mastercard cards for payments and purchase of cryptocurrencies.
LQX it’s a worldwide cryptocurrency that will enables you to pay your bills, tickets and other products with LQX.
MINING OF LQX COIN
LQX Coin runs on X11 Algorithm, that uses multiple rounds of 11 different hashes, thus making it one of the safest and more sophisticated cryptographic hashes in use by modern cryptocurrencies.
You will be able to mine LQX coin with your ASIC machine.
MASTERNODES OF LQX
Holding from 1000 LQX and ahead, you will be able to get reward of the LQX Masternodes.
Hosting a LQX Masternode you become a node operator who enjoys benefits of the network.
PRE-PAID CARD
Pre-paid card that will be accepted on any credit or debit machine to buy cryptocurrencies.
You will be able to load your pre-paid card with LQX coins to buy a lot of products in our platform.
3. Advantages of LQX
7
4. LQX GOALS4.1. LQX Ecosystem
The goal of LQX is to provide to the market each time more interconnect-
ed, convenient and private means for anyone can carry out their own business.
Currently, the process of trade is extremely bureaucratic, due to the various
rules imposed by the market. Liquidex (LQX) emerged to solve this issue and to
revolutionize the process of trade, creating a virtual system where the people
from all over the world, from companies to entrepreneurs, can participate in
transactions.
Along with this system, we have our own Exchange, our own wallet for
purchase and sale of cryptocurrencies, a Virtual platform for purchase and
sale of several products, as well as platform for investments in cryptocurren-
cies, where the unique and exclusive payment accepted will be LQX.
To do this, we will follow the steps outlined in our roadmap.
The way the world is dealing with money is changing!
A few years ago we exchanged the ballots in our wallets, by the cards, with time the banking applications emerged where you no longer need to stay in queues to pay bills or perform transactions.
And that was just a start!
Today there is the Bitcoin and other cryptocurrencies, which in a short time has popularized, and will be a global trend! Cryptocurrencies have come to decentralize the market, facilitate transactions, lower rates and accelerate processes.
8
4.1.1. Own Blockchain
LQX is running in our own blockchain, it’s a big different between tokens, because tokens depends on other’s blockchain, for example, a lot of ICO released ERC-20 tokens, they de-pend exclusive on the Ethereum Blockchain to make transactions, payments and run appli-cations.
4.1.1.1. Blockchain Concept
A blockchain is a continuously growing list digital records in packages (called blocks) which are linked and secured using cryptography.
These digitally recorded “blocks” of data are stored in a linear chain. Each block in the chain contains data (e.g. bitcoin transaction), is cryptographically hashed, and time stamped.
The blocks of hashed data draw upon the previous-block (which came before it) in the chain, ensuring all data in the overall “blockchain” has not been tampered with and has not been altered.
LQX Blockchain Overview
LQX COIN
BLOCKCHAIN
LQX MINING
LQX USER
LQX PRE-PAID CARDS
LQX PAYMENTS
LQX MASTERNODES
LQX ECOSYSTEM
9
5. Technical Information5.1. LQX Coin Information
Name: LQX Crypto
LQX Algorithm: X11
System: PoW + Masternode
Blocktime: 1 minute
Blocktime Reward: 127 LQX, reduction of 7,5% per year
PoW Reward: 40%
Masternode Reward: 40%
Maturity: 100 blocks
Required coins for Masternode: 1000 LQX
Max Supply: 1.000.000.000 LQX (1 Billion coins)
LQX Explorer: https://lqxcripto.org/insight/blocks
- To send and receive money, with anyone in the world,
- To join the LQX Masternode Reward program,
- To pay for different types of items and services,
- To pay for mining services,
- To perform trading operations,
- To pay bills.
5.2 Use of LQX Coin
10
6. LQX FeaturesA fast cryptocurrency to send and receive your money, without the excessive volatility that affects Bitcoin, where users can get the rewards for the LQX masternode, thus benefiting the entire network that makes up the ecosystem.
ScalabilityOur blockchain supports a hundred of thousands of transactions per minute,
making LQX one of the best cryptocurrencies for making
payments on day-by-day
Instant confirmation
Confirmed transactions in seconds. You can use LQX as a payment method due to the
fast confirmation over the network. This is one of the
main features of LQX
Own BlockchainWith our own Blockchain, we
don’t depend on any other platform to run our network,
unlike the others, which depend on the Ethereum
blockchain to perform their transactions or instructions
within the network
SecurityLQX cryptocurrency has the
algorithm system of X11, that is made with 11 hashes, making it one of the safest
and more sophisticated cryptography hashes in use
by modern cryptocurrencies
StorageAll transactions are recorded
in our LQX Blockchain. This way anyone can track their transactions. Our systems keep a record of all wallets and balances, enabling to
whose hold LQX Coin to get a reward
IrreversibilityAll transactions are
irreversible, this way we prevent any change on the
blocks, containing past transactions. On the other
hand, we are preventing any kind of attacks to our
network
7. Coin distribution7.1. Distribution
A) 200 million of LQX coins: pre-mined, divided between companies, inves-
tors, creators, developers and Masternodes.
b) 800 million LQX coins: mined up to 2080 for any person or company.
Note that we will not launch a token on the market, not even do the ICO pro-
cess to raise capitals on the LQX ecosystem.
After the beginning of LQX mining, we will start the process of LQX listings on
national and international exchanges, according to our roadmap.
7.2. Mined up to 2080!
The last coin of LQX will be mined on 2080 year,
imagine LQX price on that year!
The reward of LQX mining will have a reduction of 7.5% each year.
Download LQX Wallet on your desktop computer
LQX Wallet for Mac OS
https://lqxcripto.com/assets/downloads/MacOSX10.11.zip
LQX Wallet for Linux
https://lqxcripto.com/assets/downloads/x86_64-pc-linux-gnu.tar.gz
LQX Wallet for Windows
https://lqxcripto.com/assets/downloads/x86_64-w64-Windows.zip
12
Technical concepts to fully understand the entire LQX ecosystem
UNDERSTANDING LQX
LQX CONCEPTS
8. Mining8.1. Cryptocurrency mining
Cryptocurrency mining is the process in which transactions between users are verified and added into the blockchain. The process of mining is also responsible for introducing new coins into the existing circulating supply and is one of the key elements that allow cryptocur-rencies to work as a peer-to-peer decentralized network, without the need for a third-party central authority.
Bitcoin is the most popular and well-established example of a mineable cryptocurrency, but it is worth noting that not all cryptocurrencies are mineable. Bitcoin mining is based on a consensus algorithm called Proof of Work.
8.2 How it works?
A miner is a node in the network that collects transactions and organizes them into blocks. Whenever transactions are made, all network nodes receive them and verify their validity. Then, miner nodes gather these transactions from the memory pool and begin assembling them into a block.
The first step of mining a block is to individually hash each transaction taken from the memory pool, but before starting the process, the miner node adds a transaction where they send themselves the mining reward (block reward). This transaction is referred to as the coinbase transaction, which is a transaction where coins get created ‘out of thin air’ and, in most cases, is the first transaction to be recorded in a new block.
After every transaction is hashed, the hashes are then organized into something called a Merkle Tree (or a hash tree) - which is formed by organizing the various transaction hashes into pairs and then hashing them. The outputs are then organized into pairs and hashed once again, and the process is repeated until “the top of the tree” is reached. The top of the tree is also called a root hash (or Merkle root) and is basically a single hash that represents all the previous hashes that were used to generate it.
The root hash - along with the hash of the previous block and a random number called nonce - is then placed into the block’s header. The block header is then hashed producing an output based on those elements (root hash, previous block’s hash, and nonce) plus a few other parameters. The resulting output is the block hash and will serve as the identifier of the newly generated block (candidate block).
In order to be considered valid, the output (block hash) must be less than a certain target value that is determined by the protocol. In other words, the block hash must start with a certain number of zeros.
The target value - also known as the hashing difficulty - is regularly adjusted by the pro-tocol, ensuring that the rate at which new blocks are created remains constant and propor-tional to the amount of hashing power devoted to the network.
Therefore, every time new miners join the network and competition increases, the hash-ing difficulty will raise, preventing the average block time from decreasing.
14
8.4 MINING POOLS
While the block reward is granted to the miner who discovers the valid hash first, the probability of finding the hash is equal to the portion of the total mining power on the network. Miners with a small percentage of the mining power stand a very small chance of discovering the next block on their own.
Mining pools are created to solve this problem. It means pooling of resources by miners, who share their processing power over a network, to split the reward equally among everyone in the pool, according to the amount of work they contribute to the probability of finding a block.
LQX is a decentralized coin
High Scalability
Anonymous transactions
Irreversible & Immutable
Limited Supply
8.3 Nodes Concept
A node in the context of the blockchain, usually refers to a computer that has downloaded the software of the cryptocurrency in question (Bitcoin, Ethereum, Monero, among others) to participate in the network between peers.
The cryptocurrency blockchain is structured as a network architecture between peers (peer-to-peer or P2P). The term peer-to-peer or P2P means that the computers that participate in the network are equal to each other. The term is not new, because making a bit of history, the first massive use of P2P networks was made by the music file sharing network, Napster.
Diving into the context of blockchains - which are designed as distributed systems - the network of computer nodes is what makes it possible for Bitcoin to be used as a decentralized peer-to-peer (P2P) digital currency. As such, it is censorship-resistant by design and doesn’t require a middle-man to be transacted from user to user (no matter how distant they are in the world).
15
8.5 Different Types of Cryptocurrency Nodes
All nodes participate in a network, and in return for verifying and storing transactions they earn a small fee in the relevant cryptocurrency. This is known as mining or forging. Each node is equal, but has their own role depending on the functionalities they want to support. Generally, there are 4 major services: routing, mining, storage and wallet services.
LQX is a decentralized coin
High Scalability
Anonymous transactions
Irreversible & Immutable
Limited Supply
8.6 Types of Cryptocurrency Nodes
Routing: discover and connect to other peers in the network. These nodes validate and transmit transactions and blocks, and keep the network connection alive by passing information.
Storage: stores a local copy of the entire blockchain database, known as a full node. Requiring a large amount of hardware storage space, these nodes can independently verify transactions without any external references.
Mining: create new blocks to add to the blockchain. These nodes run special mining software in order to solve a cryptographic puzzle, to win mining rewards. These nodes add new transactions to the blockchain.
Wallet service: called simplified payment verification (SPV) nodes, these nodes do not require a full copy of the blockchain but instead rely on other trustworthy full nodes, aka pool servers, to provide necessary information. These nodes have space and power restrictions.
16
LQXLQX uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network.
9. PROOF-OF-WORK (PoW) Proof of work refers to the computational puzzle that miners have to solve which al-lows many open blockchain networks to remain secure and decentralized. PoW uses cryp-tographic functions that essentially guarantee a certain number of computer cycles were spent to solve the puzzle, by solving this puzzle, you are proving that you did some amount of work – hence the term Proof of Work.
How much work that takes is dictated by the difficulty, which scales the amount of work it takes to solve the puzzle. This puzzle can be thought of like a lottery. Every comput-er cycle that is used to try and find a solution is a lottery ticket, with the winning reward of issuing the next block and claiming a reward.
9.1 How it works?
Miners compete against each other in solving complex computational puzzles. These puzzles are difficult to solve, but when solved, the solutions can be quickly verified. So, once a miner finds the solution to a new block, they can broadcast that block to the network. All other miners will then verify that the solution is correct and the block will likely be con-firmed. Bitcoin is a blockchain-based system that is maintained by the collective work of decentralized nodes. Some of these nodes are known as miners and are responsible for adding new blocks into the blockchain. In order to do so, miners need to try and guess a pseudo-random number (aka. nonce). This number, when combined with the data provided in the block and passed through a hash function, must produce a result that matches given conditions, for example, a hash starting with four zeros. When a matching result is found, the other nodes will verify the validity of the outcome and the miner node is rewarded with the block reward. Therefore, it’s impossible to add a new block into the main chain without first find-
ing a valid nonce, which in turn generates the solution of a specific block (called block hash). Each validated block contains a block hash that represents the work done by the miner.
Proof of Work helps to protect the network against nu-merous different attacks. A successful attack would re-quire a lot of computational power and a lot of time to do the calculations and therefore it would be inefficient since the cost incurred would be greater than the poten-tial rewards for attacking the network.
One issue with Proof of Work is that mining requires expensive computer hardware that consumes a large amount of power.
17
PoWThe most famous application of PoW is Bitcoin. It was Bitcoin that laid the foundation for this type of consensus. The puzzle is Hashcash. Allows changing the complexity of a puzzle based on the total power of the network.
10. List of PoW 10.1 Traditional proof of work
1- Hashcash with double iterated SHA256
2- Hashcash with scrypt internal hash
3- Momentum birthday collision
4- Cuckoo Cycle proof of work
5- Various other proof of works functions
10.2 Use a PoW Consensus algorithm
The main benefits are the anti-DoS attacks defense and low impact of stake on min-ing possibilities.
Defense from DoS attacks: PoW imposes some limits on actions in the network. They need a lot of efforts to be executed. Efficient attack requires a lot of computational power and a lot of time to do the calculations. Therefore, the attack is possible but kind of useless since the costs are too high.
Mining possibilities: It doesn’t matter how much money you have in your wallet. What matters is to have large computational power to solve the puzzles and form new blocks. Thus, the holders of huge amounts of money are not in charge of making decisions for the entire network.
Byzantine Fault Tolerance In regards to the issue of Byzantine Fault Toler-ance, the proof of work protocol deals with the problem of Byzantine nodes through nonces and combining mes-sages into blocks. Each block has its own distinct nonce. They are only used once in order to add another element of difficulty in generating valid hashes, specifically to pre-vent precomputation and ensure fairness. Despite having some merits, proof of work is regarded as a flawed con-sensus protocol, especially when considering how much energy is consumed in running the protocol.
For instance, it has been reported that a single Bitcoin transaction, using proof of work, can consume as much elec-tricity as an average Dutch household does in two weeks.
18
11. Masternodes
11.1 What is a Masternode?
It’s a cryptocurrency full node or computer wal-
let that keeps the full copy of the blockchain in
real-time, just like you have Bitcoin full nodes
and is always up & running. But masternodes are
considerably different in their functionality than
normal nodes.
They are different because they perform several
other functions apart from just keeping the full
blockchain and relaying blocks/transactions.
Instant transactions
Masternodes rewards
Increasing privacy
Enable budgeting and treasury system in cryptos
Participating in governance and voting
These Masternodes are not standalone, they are always communicating with other such nodes to make a decentralized network.
LQX
19
LQX MASTERNODES
Hosting a MasternodeBy hosting a masternode, you become a node operator who enjoys the following benefits:
Passive income: Node operators split block rewards for completing ledger functions such as DirectSend, Instant Transactions, and Private Transactions. In order to do this, they must stake coins and host the server.
Investment strategy: Masternodes provide an opportunity to hedge the risk of investing in volatile crypto assets. They do this by providing predictable returns to node operators who are thus incentivized to run the network.
Governance rights: People running nodes for a cryptocurrency often get to vote on decisions pertaining to the network, such as with governance. So, while it’s a form of passive income, node operators may also enjoy being a part of the overall success of the network.
The very first masternode was rolled out by Dash. Today, Dash maintains a 58% market dominance over all other masternodes.
This type of passive income is different from mining cryptocurrencies in several ways. For one, the energy necessary to operate a node is less than with operating Bitcoin mining rigs. Additionally, node operators need less hardware and naturally, have lower computing costs than bitcoin miners.
Staking crypto on its own is different from operating a masternode as well. While you do stake coin when running a masternode, you’re also providing additional services to the network, above and beyond staking.
Operating a node is also a more passive way of investing than day trading. So those that may not have the time to take part in day trades, may prefer masternodes.
All in all, masternodes provide a crypto savings account that earns over time, yet are somewhat vulnerable to market volatility. Node operators help ensure the network is running optimally, provide services to the network, and receive payouts for hosting and running functions.
20
12. Reward Program12.1. Masternode Reward Program
Pricing and Payments
The main reason for reduction of complete nodes on Bitcoin Network is the lack of in-centive to run one. With the time, the cost of executing a full node increases to the as the network is used more, creating more bandwidth and costing the operator more money. As the cost increases, operators consolidate their services to be cheaper to rotate, or run a lightweight customer that doesn’t help the network.
To run a masternode, the operator must demonstrate control about 1000 LQX. When ac-tive, masternodes provide services to clients in the network and, in contrast, receive a pay-ment block reward. Like the miners, all masternodes are paid from the reward in block, of which 40% are devoted to this program.
Due to the fact that the Masternode rewards program it’s a fixed percentage and the Masternode network nodes are floating, the Masternode rewards expected will vary accord-ing to current total count of active masternodes.
Payments for a standard day to run a Masternode, can be calculated using the following formula:
(n/t)*r*b*a
Definitions:
n: number of masternodes that an operator control,
t: total number of masternodes,
r: current block reward (currently averaging about 127 LQX)
b: blocks on an average day. For the LQX network, this is usually 1440
a: average payment of the Masternode (40% of the average lock reward)
21
13. Order determinationA special algorithm is used to create a pseudo-random ordering of masternodes. By using
the Proof-of-Work (PoW) hash for each block, the security of this functionality will be provid-ed by mining network.
Pseudocode, to select a Masternode:For(mastenode in masternodes){current_score = masternode.CalculateScore();if(current_score > best_score){best_score = current_score;winning_node = masternode; }}CMasterNode::CalculateScore(){pow_hash = GetProofOfWorkHash(nBlockHeight); // getthe hash of this blockpow_hash_hash = Hash(pow_hash); //hash the POWhash to increase the entropydifference = abs(pow_hash_hash - masternode_vin);return difference;}
13.1 Benefit of the Masternodes to the network
The use of masternodes enhances the functionality and security of each blockchain net-work that utilizes them. The nodes enable advanced transactional privacy, instant transac-tions, and some are even able to execute smart contracts.
Users running a masternode are helping to make sure the entire system runs properly by running functions and helping to govern the network with voting rights. They are then com-pensated in coin in various ways for doing so.
Full nodes are servers running on a P2P network that allow users to use them to receive updates on the network events. These nodes use significant quantities of traffic, and other resources that incur a substantial cost.
As a result, a steady decrease in the amount of these nodes has been observed for some time on the Bitcoin network, and as a result, the block propagation times were exceeding 40 seconds. Many solutions have been proposed, as a new rewards scheme from Microsoft Research and the Bitnodes incentive Program.
These nodes are very important for the health of the network. They provide customers with the ability to synchronize and facilitate fast propagation of messages across the net-work. Propose add a secondary network, known as the Masternode network of the LQX.
These nodes will have high availability and provide a level of service needed for the net-work in order to participate in the program Masternode reward.
22
14. Untrust QuorumsWith the addition of the Masternode network and the warranty requirements, we can use
this secondary network to accomplish highly confidential in an infallible way, where no sin-gle entity can control the result.
Selecting N Pseudorandom Masternodes of the total set to perform the same task, these nodes can act as an oracle, without the entire network perform the task. As an example, the implementation of a quorum without trust (see InstantSend), which uses Quorums to approve transactions and to block the inputs or the implementation of proof of service.
Another example of using trusted quorums may include the use of the Masternodes net-work as a decentralized Oracle for financial markets, making possible decentralized con-tracts. As an example, agreement, if Apple’s action (AAPL) exceeds US $300 On December 31, 2018, pay the public key A, otherwise Pay the public key B.
14.1 Service Functions and Proofs
Masternodes can provide any number of extras services for the network. As proof of con-cept, our first implementation included the PrivateSend and InstantSend. When using what we call proof of service, we can demand that those nodes were online, answering and even at the correct time of block.
Defective agents can also run Masternodes, but without quality service required from the rest of the network. To reduce the possibility for people to use the system in your favor, the nodes should ping the rest of the Network to ensure that they remain active. This work is done by the Masternodes network by selecting 2 quorums per block. The Quorum A check the Quorum B service on each block.
Quorum A is the closest node to the block hash Current, while quorum B is the farthest from the aforementioned hash.
Masternode A (1) Checks Masternode B (rank 2300)
Masternode A (2) Checks Masternode B (rank 2299)
Masternode A (3) Checks Masternode B (rank 2298)
All the work done to check the network to prove that nodes are active is done by the Masternode network itself. About 1% of the network will be checked in each block. This causes the entire network to be checked six times per Day. To maintain this system without trust, we randomly select the nodes through the Quorum system, and also, we require a min-imum of six violations to deactivate a node.
23
15. Masternode ProtocolTo deceive this system, an attacker will need to be selected six times in a row. Otherwise,
violations will be cancelled by the system, because other nodes are selected by the system Quorum.
Definitions:
n is the total number of nodes controlled by the attackert is the total number of masternodes on the networkt is the depth of the current
The selection of Masternodes is pseudo based on the system of Quorums
Masternode Protocol
Masternodes are propagated over the network, using a series of protocol extensions, in-cluding an announcement message and a ping message from Masternode. These two mes-sages are all that’s required to make an active node on the network, in addition, there are other messages to run a service proof request, PrivateSend and InstantSend. Masternodes are originally formed by sending 1000 LQX to a specific address in a wallet, that will “activate” the node, making it able to be propagated over the network.
A secondary private key is created and used to sign all other messages. The last key al-lows the wallet to be completely locked when run in unattended mode.
A cold mode is possible using the secondary private key on two separate machines. The main customer “Hot” signs the amount of 1000 LQX entry, including the secondary private key signature on the message. Shortly after the “cold” customer sees a message including its secondary key and activates it as a masternode.
TOTAL MASTERNODES ROW SUCCESS REQUIRED
1/2300 6 6.75E-21 1,000 LQX
10/2300 6 6.75E-15 10,000 LQX
100/2300 6 6.75E-09 100,000 LQX
500/2300 6 0.01055% 500,000 LQX
1000/2300 6 0.6755% 1,000,000 LQX
24
16. List propagationThis allows the “hot” client to be deactivated (client off) and does not leave the possibility
of an attacker gain access to the amount of 1000 LQX, obtaining access to the Masternode after activation.
When starting, a masternode sends a message “Masternode Announce” for the network, containing:
Message: (1K LQX Input, accessible IP address, signature, subscription time, LQX 1K pub-lic key, secondary public key, donation public key, donation percentage)
Every 15 minutes, a ping message is sent, proving that the node is still active.
Message: (1K LQX Input, Signature (using secondary key), Signature Time, Stop)After a specific time has expired, the network will remove an inactive node, causing the
node not to be used by the customers. We can also drip the network constantly, but if they don’t have their doors open, they will eventually be flagged as inactive and will not be paid.
Payment through Mining and Verification
To ensure that each masternode receives its share of the Block reward, the network must oblige the blocks to pay the Masternode correct. If a miner it’s not on conformity, their blocks should be rejected by the network, otherwise the trickery will be encouraged. We propose a strategy where masternodes form quorums, select a winning masternode and transmit your message.
After N messages are transmitted to select the same recipient, a consensus will be formed and this block in question will be obliged to pay that masternode.
When mining on the network, the software pool (sites that merge the efforts of individual miners) use the RPC API interface for information on how to make a lock. To pay the Masternodes, this interface must be extended by adding a secondary beneficiary to GetBlockTemplate. The pools will propagate their mined blocks successfully, with a split payment between them and a masternode.
Masternode List propagation
New customers entering the LQX network will know that Masternodes are currently active on the network, this way they will be able to use their services.
As soon as they join the Network, a command is sent to your peers requesting to know the list of Masternodes. A cache object is used for clients to register their masternodes and their current status, so when the customers are restarted, they simply upload this file instead of requesting the complete masternodes list.
25
17. PrivateSend The PrivateSend is an enhanced and extended version of ConJoin. In addition to the main concept of ConJoin, we employ a series of improvements, such as decentralization, strong anonymity using a chaining approach, denominations and passive mixing. The biggest challenge in improving the privacy and fungibility of a cryptocurrency is doing it in a way that doesn’t obscure the entire blockchain.
In encryption cryptocurrencies based on Bitcoin protocol, you can say which outputs are not spent and which are, commonly called UTXO (unused transaction output). This re-sults in a public record that allows any user to act as guarder of the entire integrity of trans-actions.
The Bitcoin protocol is designed to work without the participation of reliable coun-ter-parties and, in their absence, is essential that the audit resources remain readily acces-sible to users through the public blockchain.
Our aim is to improve privacy and fungibility without losing these key elements that we believe to be a successful currency.
When having a decentralized mixing service within the currency, we gain the ability to keep the coin itself perfectly Fungible. The fungibility is an attribute of the money, which determines that all units of a coin remain the same.
When you receive money within a cryptocurrency, it should not come with no history of previous transactions, users should have an easy way to disassociate this history, thus keeping all cryptocurrencies equal.
At the same time, any user must be able to act as an auditor to ensure the financial integrity of the public book without compromising the privacy of others.
To improve fungibility and maintain the blockchain integrity public, we propose the use of a mixing strategy without trust and decentralized. To be effective in keeping the coin fungible, this service is directly embedded in the coin, easy to use and safe for the average user.
26
18. How PrivateSend Works?PrivateSend function begins by breaking down a user’s transaction input into discrete
standard denominations, these denominations being: 0.01 LQX, 0.1 LQX, 1 LQX, and 10 LQX. A user’s LQX wallet will then start a request to a LQX masternode, so that it is made aware that a user would like to mix a certain amount of LQX coins.
The masternode will then send a message to the network indicating that is ready to mix a denomination, and that there is a user waiting. Two other individuals, who also wish to mix the same amount of LQX, can connect to the masternode that is hosting the other user’s transaction, and a mixing session can commence. Within the mixing session, the master-node mixes up the inputs, and instructs all three users’ wallets to pay the now-mixed input back to themselves.
A user’s wallet must repeat this mixing session several times (each time is called a round), in order to ensure that fund origins are fully anonymized. Finally, it is also important to note that funds involved in the mixing process never leaves a user’s wallet, ensuring that the en-tire process can remain trustless and secure.
18.1 Tracking ConJoin by quantities
A common strategy in the existing Bitcoin implementations of ConJoin is simply merging transactions together. This exposes users to various methods of following users ‘ curren-cies through these united transactions.
On this transaction, 0.05 BTC was sent through the mixer. To identify the origin of the money, just add the values to the right until they match one of the values to the Left.
Dismembering the transaction:
• 0.05 + 0.0499 + 0.0001(fee) = 0.10BTC
• 0.0499 + 0.05940182 + 0.0001(fee) = 0.10940182BTC
This is exponentially more difficult as more users are added to the mixer. However, these sessions may be retroactively anonymized at any time in the future.
27
19. Through Linking and Forward Linking
In other proposed implementations of ConJoin, it’s possible that a user to anonymized money and then send a change transaction for an exchange or other entity that meets the identity of the user. This breaks anonymity and allows the entity to walk backwards through the user’s transactions.
We call this kind of attack “forwarding Direct”:
INPUTS OUTPUTS
CHANGE OUTPUTS
Image 3: Advanced Change Chaining
On this example, Alice anonymizes 1.2 BTC, which goes to two Outputs, 1 BTC and 0.2 BTC.
It then spends 0.7 BTC of the output 1 BTC, receiving a change of 0.3 BTC. This 0.3 BTC goes to an identifiable source, confirming that Alice also has spent 0.7 BTC on the previous transaction.
To identify the sender of the anonymous transaction, start at “Exchange”, identify the transaction and rewind the blockchain until you reach to “Alice sends 0.7 BTC anonymously”. As the exchange, you know that was your user who recently bought something anonymously, thus completely breaking anonymity. Call this type of attack “through change of link “.
ALICE 1.2 BTC
BOB 1.5 BTC
CHARLIE 1.1 BTC
ALICE 1 BTC
CHARLIE 1 BTC
BOB 1 BTC
ALICE 0.2 BTC
BOB 0.5 BTC
CHARLIE 0.1 BTC
ALICE SENDS 0.7 BTC ANONYMOUSLY
RECEIVES A CHANGE OF 0.3 BTC
ALICE SENDS 0.3 BTCTO COINBASE
28
20. Security
1 Greater privacy and resistance to Denial of Service The PrivateSend uses the fact that a transaction can be formed by various
inputs and outputs, and sent to several parties to merge funds in a way that cannot be separated later.
Like all transactions of PrivateSend, they are configured to be paid by own users, the system is highly secure against theft and user’s currencies always remain secure.
Currently, the mixing of PrivateSend requires at least three participants. To avoid any possible DoS attacks, we propose that all users have to submit
a transaction as collateral for the pool to join. This transaction will be made to them and pay a high fee to the miners. In the event that a user sends a request to the mixing pool, it must provide warranty at the beginning of this Exchange.
If, at any time, any user does not cooperate, refusing to sign, for example, the warranty transaction will be transmitted automatically. This will make it expensive to perform a continuous attack on the privacy network.
2 Passive Anonymization of funds and chaining PrivateSend is limited to 1000 LQX per session and requires several sessions to
anonymize completely significant amounts of money. To make the user experi-ence easy and very difficult for attacks, PrivatSend it executes on passive mode. With defined intervals, a user’s client will request membership with other clients through a masternode.
After entry into the Masternode, a queue object is propagated through the net-work, detailing the denominations that user is looking to anonymize, but there is no information that can be used to identify the user.
Each private session can be considered as independent event. However, each ses-sion is limited to three clients, therefore, an observer has a three-power chance to follow a transaction. To increase the quality of anonymity provided, a chaining approach is used, whose funds are sent through multiple masternodes, one after the other.
29
21. Security considerationsAs transactions are merged, Masternodes can “Snoop” the funds of the users as they
pass. That is not considered a serious limitation due to the requirement of 1000 LQX storage of masternode, and the fact that users using random masternodes that select to host your joints.
The probability of following a transaction over a chaining event can be calculated from the following way:
Table 2: How many users can be involved in N mixing sessions
Definitions:
n: total number of nodes controlled by the attackert: total number of masternodes on the networkr: is the depth of the current
The selection of Masternodes is random.
Extend the system by blinding Masternodes for transactions that occur in your node, will also greatly increase the security of the system.
TOTAL MASTERNODES ROW SUCCESS REQUIRED
1000/2000 8 0.39% 1,000,000 LQX
2000/3000 2 44.4% 2,000,000 LQX
2000/3000 4 19.75% 2,000,000 LQX
2000/3000 8 3.90% 2,000,000 LQX
MASTERODES BY TOTAL ATTACKERS
CURRENT DEPTHSUCCESS
PROBABILITYLQX REQUIRED
10/1010 2 9.80E-05 10,000 LQX
10/1010 4 9.60E-09 10,000 LQX
10/1010 8 9.51E-11 10,000 LQX
100/1100 2 8.26E-03 100,000 LQX
100/1100 4 6.83E-05 100,000 LQX
100/1100 8 4.66E-09 100,000 LQX
1000/2000 2 25% 1,000,000 LQX
1000/2000 4 6.25% 1,000,000 LQX
30
22. Instant transactions
22.2 Masternode blind via relay system
Previously, we describe the odds of following a single transaction through multiple mixed sessions of the PrivateSend.
This can still be resolved by concealment of Masternodes, so they can’t see which inputs/outputs belong to which users. To do this, we propose a system of simple relay that users can use to protect your identity.
Instead of a user sending the inputs and outputs directly to the pool, they select a random masternode Network and request that it retransmit the inputs/outputs/ signatures for the target masternode. This means that the Masternode will receive N sets of inputs/outputs and N sets of signatures. Each set belongs to one of the users, But the masternode doesn’t know what it belongs to.
22.1 Instant transactions
When using Masternode quorums, users can send and receive instant irreversible transactions. When a quorum is formed, the transaction entries are blocked to be spent only in a specific transaction, a transaction lock takes about four seconds to be currently set on the network.
If consensus is reached in a blocking by the Masternode network, all conflicting transactions or conflicting blocks will be rejected from then on, the unless they correspond to the exact transaction ID of the lock in place. This will allow suppliers to use Mobile devices in place of traditional POS systems for real-world trade and users to quickly resolve non-commercial transactions face to face, as is the case with traditional money.
This is done without a central authority. A comprehensive view of this feature can be found in the InstantSend White Paper.
31
LQX Coin is based on X11 algorithm, that uses multiple rounds of 11 different hashes, thus making it one of the safest and more sophisticated cryptographic hashes in use by modern cryptocurrencies.
LQX X11 HASHING ALGORITHM
23. X11 AlgorithmIt was developed in 2014 by Evan Duffield, the main developer of the Darkcoin cryptocur-
rency (later Dash). Initially, he set himself the task to create an algorithm that would make cryptocurrencies protected from specialized mining devices of ASICs, which are considered to be the killers of decentralization.
X11’s chained hashing algorithm utilizes a sequence of eleven scientific hashing algo-rithms for the proof-of-work. This is so that the processing distribution is fair and coins will be distributed in much the same way Bitcoin’s were originally. X11 was intended to make ASICs much more difficult to create, thus giving the currency plenty of time to develop be-fore mining centralization became a threat. This approach was largely successful; as of ear-ly 2016, ASICs for X11 now exist and comprise a significant portion of the network hashrate, but have not resulted in the level of centralization present in Bitcoin.
X11 is the name of the chained Proof-of-work (PoW) algorithm that was introduced in Dash (launched January 2014 as “Xcoin”). It was partially inspired by the chained-hashing approach of Quark, adding further “depth” and complexity by increasing the number of hash-es, yet it differs from Quark in that the rounds of hashes are determined a priori instead of having some hashes being randomly picked.
X11 is an algorithm for mining cryptocurrency which uses 11 different hash functions. X11 was well received by the mining community due to its energy-efficiency when mining with a home rig. It isn’t a secret that X11 is more complicated than a SHA-256 algorithm, which prevented the use of ASIC miners for a time.
To do this, Evan Duffield combined 11 different hash functions in one algorithm: Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, Simd, Echo.
Increased confidence and safety for currenciesThe increased complexity and sophistication of the chained algorithm provides enhanced
levels of security and less uncertainty for a digital currency, compared to single-hash PoW solutions that are not protected against security risks like SPOF (Single Point Of Failure). For example, a possible but not probable computing breakthrough that “breaks” the SHA256 hash could jeopardize the entire Bitcoin network until the network shifts through a hard fork to another cryptographic hash.
In the event of a similar computing breakthrough, a digital currency using the X11 PoW would continue to function securely unless all 11 hashes were broken simultaneously. Even if some of the 11 hashes were to prove unreliable, there would be adequate warning for a currency using X11 to take measures and replace the problematic hashes with other more reliable hashing algorithms.
Given the speculative nature of digital currencies and their inherent uncertainties as a new field, the X11 algorithm can provide increased confidence for its users and potential investors that single-hash approaches cannot.
23.1 Advantages of X11
33
24. X11 MiningThe main feature of cryptocurrency mining on X11 is financial profitability in comparison with other algorithms
Mining efficiency is expressed in three components:
Performance
The cost of altcoins
Minimal costs for payment of electricity bills
For example, AMD Radeon 6930 graphics card pro-duces 1800 Kh/s, if you use the same module for cryptocurrency mining on the Scrypt algorithm, the indicator will decrease almost three times. Video cards of other models show approximately such ra-tio of change of power.
When choosing mining equipment, you should prefer a model with an impressive number of Shader pro-cesses and a high frequency of the graphics core. If we talk about Radeon graphics cards, pay attention to 7950 and 7970. Nvidia also has analogues to these models.
As for CPU-mining, AMD processors with 6-8 cores or Intel i5/i7 demonstrate not the highest level of performance, but also consume much less electric-ity
34
25. Roadmap LQX Cryptocurrency creation for Liquidex
internal payment. (01/2019)
Inclusion of LQX on its own blockchain. (05/2019)
Start of LQX mining through the intermodal
Park Rental. (07/2019)
Create a payment platform to receive
cryptocurrencies. (10/2019)
Inclusion of LQX on websites and stores for
receipt through PoS machines. (11/2019)
Batch sale of PoS machines for project
collaborators. (12/2019)
Creation of a pre-paid card LQX
Visa/Mastercard. (02/2020)
Sign agreement for LQX listing on National and
International exchanges (04/2020)
Listing of LQX on CoinMarketCap, CoinGecko
and others similar websites. (06/2020)
Building an ASIC machine factory in Paraguay.
(08/2020)
Decentralization of the LQX mining code.
(12/2020)
35
26. Mining SupplyA different approach to restricting mining inflation is taken on LQX, using a reduction of 7.5% of the offer per year. This is done as opposed to reducing by half implemented by other currencies. The production of LQX is programmed to continue along of this century and to the next, slowly until the year 2080.
Development Process
The master branch is meant to be stable. Development is normally done in separate branches. Tags are created to indicate new official, stable release versions of LQX Core.
Users
LQX users will be able to make instant money transactions. They can purchase products and services in LQX, as well as enable the LQX payment system within their businesses.
License of LQX
LQX Core is released under the terms of the MIT license See https://github.com/vagnFedora/lqx/blob/master/COPYING for more information or see https://opensource.org/licenses/MIT
Testing
Testing and code review are the bottleneck for development; we get more pull requests than we can review and test on short notice. Please be patient and help out by testing other people’s pull requests. Automated testing: Developers are strongly encouraged to write unit tests for new code, and to submit new unit tests for old code. Unit tests can be compiled and run (assuming they weren’t disabled in configure) with: make check.
36
ConclusionThis whitepaper presents the general concepts that involves LQX coin, as well all technical information, mining and distribution.
We have reviewed several concepts to fully understand the development and the mining. Our own blockchain makes LQX one of the fastest and safest cryptocurrencies around the globe. Users will be able to trade, send money, buy electronics, pay the bills and accept payments in LQX.
We seek the global acceptance of this new market that is emerging, a new market that will mark the new global trend, the financial restructuring. Together we will grow fully and prepare for a prosperous future, full of successes and achievements.
37
27. Privacy PolicyLQX Crypto respects the privacy of all users of our website (https://lqxcoin.com/) (hereinafter referred to as the “This Website“) LQX
Crypto and related services and services. The Company ensures that personal information of the users will be treated confidentially.
This Privacy Policy applies to LQX Crypto acquisition and using of LQX Crypto and related services. This Website is not responsible for
the privacy policy of other websites and sources. By using the Site, you indicate that you accept the Privacy Policy. The information
provided on the Site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribu-
tion or using would be contrary to any law or regulations, or which would subject the Company and/or its entity creating View Fin Index
tokens (including their affiliates) or any LQX Crypto products or related services to any registration, licensing or other authorization re-
quirement within such jurisdiction or country. The data content of the Site is intended for general information purposes only and does
not constitute solicitation of or an offer to purchase any securities. This Website should be used for general research purposes only.
It does not, nor does it purport to, constitute any form of professional investment advice, recommendation or independent analysis.
Consequently, the information contained on This Website has not been prepared in accordance with the relevant rules and regulations
governing such publications in various jurisdictions.
Personal Information and Details.
Personal Information is information or an opinion that identifies an individual. Examples of Personal Information the Company collect
include: names, addresses, email addresses and phone. This Personal Information is obtained in many ways including email or via the
Site. The Company doesn’t guarantee website links or policy of authorized third parties. The Company collects your Personal Infor-
mation for the primary purposes of enabling you to use LQX Crypto products and related services with no technical, or operational
complications and in a cost- efficient manner. The Company may also use your Personal Information for secondary purposes closely
related to the primary purpose, in circumstances where you would reasonably expect such use or disclosure. When the Company col-
lects Personal Information the Company will, where appropriate and where possible, explain to you why the Company is collecting the
information and how the Company plans to use it.
Third Parties.
Where reasonable and practicable to do so, the Company will collect your Personal Information only from you. However, in some cir-
cumstances the Company may be provided with information by third parties. In such a case the Company will take reasonable steps to
ensure that you are made aware of the information provided to us by the third party.
Disclosure of Personal Information. Your Personal Information may be disclosed in a number of circumstances including the following:
• To third parties where if you consent to the use or disclosure;
• Where required or authorized by law.
Security of Personal Information.
Your Personal Information is stored in a manner that reasonably protects it from misuse and loss and from unauthorized access, modi-
fication or disclosure. When your Personal Information is no longer needed for the purpose for which it was obtained, the Company will
take reasonable steps to destroy or permanently de-identify your Personal Information. However, most of the Personal Information is
or will be stored in client files which will be kept by us for a minimum of 5 years.
Access to your Personal Information.
You may access the Personal Information the Company holds about you and to update and/or correct it, subject to certain exceptions.
If you wish to access your Personal Information, please contact the Company in writing. The Company will not charge any fee for
your access request but may charge an administrative fee for providing a copy of your Personal Information. In order to protect your
Personal Information, the Company may require identification from you before releasing the requested information. Maintaining the
Quality of your Personal Information It is an important for the Company that your Personal Information is up to date. The Company will
38
take reasonable steps to make sure that your Personal Information is accurate, complete and up-to- date. If you find that the Company
uses the information that is not up to date or is inaccurate, please advise us as soon as possible so we can update our records and
ensure the Company can continue to provide quality services to you.
Final Provisions.
By using the Site, you indicate that have read these Privacy Policy and you have no complaints about their content. The current version
of Privacy Policy is publicly available here. Privacy Policy is drawn up in English and can be provided to you in any another language for
examination. In case of discrepancies between the English and foreign language versions of the Privacy Policy, the English version
will prevail. In case that one or more provisions hereof become invalid or unenforceable for any reason, this will not affect the validity
or applicability of the remaining provisions.
Privacy Policy Complaints and Enquiries.
If you have any questions related to the Privacy Policy, the LQX Crypto products and related services, feel free to contact us via email:
28. Terms of ServiceThis agreement is between you (referenced herein as “you”) and LQX Crypto. By accessing, using or clicking “I agree” to any of the ser-
vices made available by LQX Crypto or one of its affiliates through the website (https://lqxcoin.com), our mobile applications, or any
other related services provided by LQX Crypto. You agree that you have read, understood and accepted all of the terms and conditions
contained in this Terms of Use agreement (the or these “Terms”). Additionally, when using certain features of the Services, you may be
subject to additional terms and conditions applicable to such features.
PLEASE READ THESE TERMS CAREFULLY AS THEY GOVERN YOUR USE OF THE SERVICES. THESE TERMS CONTAINS IMPORTANT
PROVISIONS INCLUDING AN ARBITRATION PROVISION THAT REQUIRES ALL CLAIMS TO BE RESOLVED BY WAY OF BINDING ARBITRA-
TION. BY ACCESSING, USING OR ATTEMPTING TO USE THE SERVICES IN ANY CAPACITY, YOU ACKNOWLEDGE THAT YOU ACCEPT AND
AGREE TO BE BOUND BY THESE TERMS. IF YOU DO NOT AGREE, DO NOT ACCESS OR USE THE SERVICES.
We hereby remind you that:
1. The digital assets themselves are not offered by any financial institution, corporation or this Website;
2. The digital asset market is new and unconfirmed, and will not necessarily expand;
3. Digital assets are primarily used by speculators, and are used relatively less on retail and commercial markets; digital asset trans-
actions are highly risky, due to the fact that they are traded throughout the day without limits on the rise or fall in price, and market
makers and global government policies may cause major fluctuations in their prices;
4. The Company may suspend or terminate your account or use of the Service, or the processing of any digital asset transaction, at
any time if it determines in its sole discretion that you have violated this Agreement or that its provision or your use of the Service in
your jurisdiction is unlawful.
5. The Services are intended solely for users who are 18 or older. By accessing or using our Services, you represent and warrant that
you are at least 18 years old and have not previously been suspended or removed from the Site or Services. You also represent and
warrant that you are not on any trade or economic sanctions lists, such as the United Nations Security Council Sanctions List, nor
restricted or prohibited from engaging in any type of trading platforms by other administrative law enforcement agencies. Moreover,
LQX Crypto may not make all of the Services available in all markets and jurisdictions, and may restrict or prohibit use of all or a portion
of the Services from Restricted Locations, which at this time include Republic of China, Hong Kong China, Macau China, Cuba, Iran,
North Korea, Crimea, Sudan, Malaysia, Syria, USA [including all USA territories like Puerto Rico, American Samoa, Guam, Northern
Mariana Island, and the US Virgin Islands (St. Croix, St. John and St. Thomas)], Bangladesh, Bolivia, Ecuador, and Kyrgyzstan. The
content of this Agreement shall not be excluded from the laws of the country or region under which the user belongs. As a result, if you
39
do not meet these eligibility requirements, do not use our Services.
Digital assets trading is highly risky and therefore not suitable for the vast majority of people. You acknowledge and understand that
investment in digital assets may result in partial or total loss of your investment and therefore you are advised to decide the amount
of your investment on the basis of your loss-bearing capacity. You acknowledge and understand that digital assets may generate
derivative risks. Therefore, if you have any doubt, you are advised to seek assistance from a financial adviser first. Furthermore,
aside from the above-mentioned risks, there may also be unpredictable risks. Therefore, you are advised to carefully consider and
use clear judgment to assess your financial position and the abovementioned risks before making any decisions on buying and selling
digital assets; any and all losses arising therefrom will be borne by you and we shall not be held liable in any manner whatsoever. You
are hereby informed that:
1.You understand that this Website is only intended to serve as a venue for you to obtain digital asset information, find trading counter-
parties, hold negotiations on and effect transactions of digital assets. This Website does not participate in any of your transactions,
and therefore you shall, at your sole discretion, carefully assess the authenticity, legality and validity of relevant digital assets and/or
information, and solely bear the responsibilities and losses that may arise therefrom.
2.All opinions, information, discussions, analyses, prices, advice and other information on this Website are general market reviews
and do not constitute any investment advice. We do not bear any loss arising directly or indirectly from reliance on the abovemen-
tioned information, including but not limited to, any loss of profits.
3.The content of this Website may be changed from time to time and at any time without notice, and we have taken reasonable meas-
ures to ensure the accuracy of the information on the Website; however, we do not guarantee the degree of such accuracy, or bear any
loss arising directly or indirectly from the information on this Website or from any delay or failure caused by failure to link up with the
internet, transmit or receive any notice and information.
4.Using internet-based trading systems also involves risks, including but not limited to failures in software, hardware or Internet links,
etc. In view of the fact that we cannot control the reliability and availability of the Internet, we will not be responsible for any distortion,
delay and link failure.
5. https://lqxcoin.com is official external information release platform for LQX Crypto;
6.No service on this Website may be paid for by credit card;
7.It is prohibited to use this Website to engage in any illegal transaction activities, such as money laundering, smuggling and commer-
cial bribery. In the event that any of such activities is uncovered, this Website will adopt all available measures, including but not lim-
ited to freezing the offender’s account, notifying relevant authorities, etc., and we will not assume any of the responsibilities arising
therefrom and reserve the right to hold relevant persons accountable;
8.It is prohibited to use this Website for the purpose of malicious manipulation of the market, improper transactions or any other
illicit trading activities. Where any of such illicit trading activities is uncovered, this Website will adopt such preventive and protective
measures as warning, restricting trading and closing accounts against any and all such malicious manipulation of prices, maliciously
influencing the trading system and any other illicit behaviors; we do not assume any of the responsibilities arising therefrom and re-
serve the right to hold relevant persons accountable.
1. General Provisions:
- The User Agreement (hereinafter referred to as “this Agreement” or “these terms and conditions”) consists of the main body, Terms
of Privacy, Understanding Your client and Anti-money-laundering Policy, as well as any rules, statements, instructions, etc. that this
Website has published or may publish in the future.
- Before using the services offered by this Website, you shall read this Agreement carefully, and consult a professional lawyer if you
have any doubt or as may be otherwise necessary. If you do not agree to the terms and conditions of this Agreement and/or any change
made thereto from time to time and at any time, please immediately stop using the service provided by this Website or stop logging
onto this Website. Upon your logging into this Website or using any service offered by this Website or engaging in any other similar
activity, it shall be deemed as having understood and fully agreeing to all terms and conditions of this Agreement, including any and all
changes, modifications or alterations that this Website may make to this Agreement from time to time and at any time.
- After filling in the relevant information in accordance with the requirements of this Website, and going through other relevant pro-
cedures, you will successfully register yourself as a member of this Website (hereinafter referred to as “Member”); in the process
40
of registration, if you click on the “I Agree”, it shall be deemed that you have reached an agreement with the Company by way of elec-
tronic signature; or when you use this Website, you click on the “I Agree” button or a similar button, or if you use the services offered by
this Website in any of the ways allowed by this Website, it shall be deemed that you fully understand, agree to and accept all the terms
and conditions under this Agreement, and in this case, the absence of your handwritten signature will not affect the legal binding force
that this Agreement may have on you.
- After you become a member of this Website, you will receive a member account and corresponding password, which shall be prop-
erly kept by you as a member of this Website; Members shall be liable for all activities and events carried out through their accounts.
- You cannot engage in trading on the digital asset trading platform provided by this Website and gain access to the services that are
exclusively available to members in accordance with the rules and regulations of this Website, unless and until you become a member
of this - - Website; if you are not a member of this Website, you can only log in to and browse the Website and have access to other
services as are permitted by the rules and regulations of this Website.
Upon registering yourself as a member of this Website and using any of the services and functions offered by this Website, it shall be
deemed that you have read, understood this Agreement, and:
- accepted to be bound by all terms and conditions of this Agreement;
- You confirm that you have attained the age of 18, or another statutory age for entering into contracts as is required by a different ap-
plicable law, and your registration with this Website, purchase or sale via this Website, release information on this Website and other
behaviors indicating your acceptance of the Services offered by this Website shall comply with the relevant laws and regulations of
the sovereign state or region that has jurisdiction over you, and you confirm that you have sufficient capacity to accept these terms
and conditions, enter into transactions and to use this Website for digital asset transactions.
- You undertake that all your digital assets involved in transactions hereunder are legally acquired and owned by you.
- You agree to undertake any and all liabilities for your own transaction and non-transaction activities as well as any and all profits and
losses therefrom.
- You confirm that the information provided at the time of registration is true and accurate.
- You agree to comply with any and all relevant laws, including the reporting of any transaction profits for tax purposes.
- This Agreement is only binding on the rights and obligations between you and us, and does not involve legal relations and legal dis-
putes arising from and relating to the transaction of digital assets between the users of this Website, and between other websites
and you.
2. Amendment of this Agreement.
We reserve the right to amend this Agreement from time to time, and disclose such amendment by way of announcement on the
Website without sending a separate notice to you on your rights. The date when the amendment is made will be indicated on the first
page of the amended agreement. The amended agreement will take effect immediately upon announcement on the Website. You shall
browse this Website from time to time and follow information on the time and content of amendments, if any, made to this Agreement.
If you do not agree with the amendments, you shall stop using the services offered by this Website immediately; if you continue to use
the services offered by this Website, it shall be deemed that you accept and agree to be bound by the amended agreement.
3. Registration.
- Eligibility for Registration.
You confirm and promise that: you shall be a natural person, legal person or other organization with the ability to sign this Agreement
and the ability to use the services of this Website, as is provided by applicable laws, when you complete the registration process or
when you use the services offered by this Website in any other manner as is otherwise permitted by this Website. Upon clicking on
the button indicating that you agree to register, it shall be deemed that you yourself or your authorized agent agrees to the content of
this Agreement and your authorized agent will register with this Website and use the services offered by this Website on your behalf.
If you are not a natural person, legal person or organization with the abovementioned ability, you and your authorized agent shall bear
all the consequences of that, and the company reserves the right to cancel or permanently freeze your account and to hold you and
your authorized agent accountable.
- Purpose of Registration You confirm and promise that you do not register with this Website for the purpose of violating any of the
applicable laws or regulations or undermining the order of digital asset transactions on this Website.
41
- Registration Process
- You agree to provide a valid email address, a mobile phone number and other information in accordance with the requirements on
the user registration page of this Website. You can use the email address, mobile phone number or any other manner permitted by this
Website to log in to this Website. Where it is necessary and in accordance with the requirements of applicable laws and regulations of
relevant jurisdictions, you shall provide your real name, identity card and other information required by applicable laws, regulations,
the Terms of Privacy, and anti-money-laundering terms, and constantly update your registration data so that they will be timely, de-
tailed and accurate as is required. All of the original typed data will be referenced as registration information. You shall be responsible
for the authenticity, integrity and accuracy of such information and bear any direct or indirect loss and adverse consequences arising
out of it.
- If any of the applicable laws, regulations, rules, orders and other regulatory documents of the sovereign country or region in which
you are based requires that mobile phone accounts must be based on real names, you hereby confirm that the mobile phone number
you provide for registration purposes has gone through the real-name registration procedure. If you cannot provide such a mobile
phone number as is required, any direct or indirect losses and adverse consequences arising therefrom and affecting you shall be
borne by you.
- After you provide the required registration information in a legal, complete and valid manner and such information passes relevant
verification, you shall have the right to obtain an account and a password of this Website. Upon obtaining such account and password,
your registration shall be deemed as successful and you can log into this Website as a member thereof. - You agree to receive emails
and/or short messages sent by this Website related to the management and operation thereof.
- You acknowledge and understand that you will be required to provide further materials and information for merchant registration if
you want to become a verified merchant by us after you complete your registration of general users. The further materials and infor-
mation we may ask for include but not limited to your telephone number, WeChat account, telegram account, proof of revenue, previ-
ous experience of dealing on this Website or in any other OTC exchanges, risk control strategies and other information and materials
that we consider necessary to be provided and the applicable laws may require. Also, to register as a verified merchant, a part of digi-
tal assets will be locked in your OTC account as a security deposit to safeguard the security of transactions you involve in and you are
unable to transfer and withdraw during your transactions. You acknowledge and agree that if you, as a verified merchant, are proved to
be liable for any damages, losses, and any other payments during any transactions but you refuse to pay, we may process your security
deposit to cover any third parties’ damages, losses, and any other payments you should have paid subject to applicable laws. After you
complete the registration of the verified merchant, we will provide you with the verified merchant logo so as to distinguish from other
users who do not complete the registration of verified merchants. You may submit a cancellation application to this Website to cancel
your verification, and then this Website will proceed your application within 3 business days and unlock your security deposit if there
are no any records of pending disputes with any third parties or previous negative records.
4. Services
This Website only provides online transaction platform services for you to engage in digital asset trading activities through this Web-
site (including but not limited to the digital asset transactions etc.). This Website does not participate in the transaction of digital as-
sets as a buyer or seller; This Website does not provide any services relating to the replenishment and withdrawal of the legal currency
of any country.
- Content of Services
- You have the right to browse the real-time quotes and transaction information of digital asset products on this Website, to submit
digital asset transaction instructions and to complete the digital asset transaction through this Website.
- You have the right to view information under the member accounts on this Website and to apply the functions provided by this Web-
site.
- You have the right to participate in the website activities organized by this Website in accordance with the rules of activities posted
on this Website.
- Other services that this Website promises to offer to you.
- Service Rules
5. Rights and Obligations of this Website
42
- If you do not have the registration qualifications agreed on in this Agreement, this Website shall have the right to refuse to allow you
to register; if you have already registered, this Website shall have the right to revoke your member account, and this Website reserves
the right to hold you or your authorized agent accountable. Furthermore, this Website reserves the right to decide whether to accept
your application for registration under any other circumstances.
When this Website finds out that the user of an Account is not the initial registrant of that Account, it shall have the right to suspend or
terminate the user’s access to that Account. - Where by means of technical testing or manual sampling, among others, this Website
reasonably suspects that the information you provide is wrong, untrue, invalid or incomplete, this Website shall have the right to notify
you to correct or update the information, or suspend or terminate its supply of the services to you.
- This Website shall have the right to correct any information displayed on this Website when it uncovers any obvious error in such
information.
- This Website reserves the right to modify, suspend or terminate the Services offered by this Website, at any time, and the right to
modify or suspend the Service without prior notice to you; if this Website terminates one or more of the Services offered by this Web-
site, such termination by this Website will take effect on the date of announcement of such termination on the Website. - This Website
shall take necessary technical means and management measures to ensure the normal operation of this Website, and shall provide
a necessary and reliable trading environment and transaction services, and shall maintain the order of digital assets trading. If you
fail to log into this Website using your member account number and password for an uninterrupted period of one year, this Website
shall have the right to revoke your account. After your account is revoked, this Website shall have the right to offer the member name
represented by such account to other applicants for membership.
- This Website shall ensure the security of your digital assets by strengthening technical input and enhancing security precautions,
and is under the obligation to notify you in advance of the foreseeable security risks in your account. This Website shall have the right
to delete all kinds of content and information which does not conform to laws and regulations or the rules of this Website at any time,
and exercise of this right by this Website is not subject to a prior notice to you.
- This Website shall have the right to, in accordance with the applicable laws, administrative regulations, rules, orders and other reg-
ulatory documents of the sovereign country or region where you are based, request to you for more information or data, and to take
reasonable measures to meet the requirements of the local standards, and you have the obligation to provide proper assistance to
such measures; this Website shall have the right to suspend or permanently terminate your access to this Website as well as part or
all of the services offered by this Website.
6. Intellectual Property
- All intellectual achievements included in this Website, including, but not limited to, website logos, databases, website design, text
and graphics, software, photos, videos, music, sounds and any combinations of the aforementioned files, and the intellectual prop-
erty rights of software compilation, associated source code and software (including small applications and scripts) shall be owned
by this Website. You may not copy, modify, copy, transmit or use any of the foregoing materials or content for commercial purposes.
- All rights contained in the name of this Website (including but not limited to business goodwill and trademarks, logos) shall be owned
by the Company.
- Upon accepting this Agreement, it shall be deemed that you, on the basis of your own free will, have transferred and assigned exclu-
sively and free of charge to this Website all copyright of any form of information that you publish on this Website, including, but not
limited to copyrights, distribution rights, lease rights, exhibition rights, performance rights, projection rights, broadcasting rights,
information network dissemination rights, shooting rights, adaptation rights, translation rights, compilation rights and other trans-
ferable rights that copyright owners are entitled to, and this Website shall have the right to sue for any infringement on such copyright
and obtain full compensation for such infringement.
This Agreement shall apply to any content that is published by you on this Website and is protected by copyright law, regardless of
whether the content is generated before or after the signing of this Agreement.
- You shall not illegally use or dispose of the intellectual property rights of this Website or any other person during your use of the ser-
vices offered by this Website. For any information that you publish on this Website, you may not publish or authorize other websites
(or media) to use such information in any manner whatsoever. Your log into this Website or use of any of the services offered by this
Website shall not be deemed as our transfer of any intellectual property to you.
43
TERMOS ADICIONAIS PARA CIDADÃOS BRASILEIROS
O LQX é uma criptomoeda ou utility token criada por meio de tecnologia X11 – Dash, desenvolvida a partir do Bitcoin, e se utilizará de
uma rede de incentivos de dois níveis, conhecida como rede masternode, que se utiliza da tecnologia PrivateSend para aumentar a
fungibilidade de moedas e InstantSend para permitir a confirmação instatanea de transações.
Na condição de simples utility token, ou token de utilidade, o LQX consiste em criptomoeda a ser utilizada como solução de pagamento
e recebimento, econômica e 100% integrada ao ecossistema de negócios desenvolvido pela LIQUIDEX, e seus parceiros comerciais,
incluindo a CREDMINER e outras exchanges parceiras, permitindo aos seus usuários o pagamento de compras de produtos e serviços,
a negociação de criptomoedas em diversas exchanges, a comercialização de solução de pagamento integrada à instituição financei-
ra parceira da LIQUIDEX, e o acesso à programa de incentivo.
Assim, enquanto simples token de utilidade, o LQX não consiste em valor mobiliário, assim definido no art. 2º, da Lei 6.385/76, e, por-
tanto, sua eventual valorização deverá ocorrer exclusivamente em decorrência de maior demanda de mercado, inexistindo qualquer
política de controle de preços a ser exercida pela LIQUIDEX.
1. INFORMAÇÕES LEGAIS E TERMO DE ISENÇÃO DE RESPONSABILIDADE:
- LQX não consiste em oferta de valores mobiliários ou esquema de investimento coletivo, nos termos da legislação brasileira, notad-
amente de acordo com o disposto na Lei 6.385/76, art. 2º, e Instrução CVM 588, e, portanto, não está sujeito a registro na Comissão
de Valores Mobiliários.
- A aquisição de LQX, em qualquer quantidade, não garante ao adquirente qualquer ganho, lucro ou participação societária, ainda que
indireta, em nenhuma companhia, bem como não lhe confere o direito a remuneração, a qualquer título, incluindo a distribuição de
dividendos ou resultados.
- O LQX consiste em criptomoeda destinada à realização de transações diretamente entre seus usuários, e será disponibilizada ini-
cialmente pela LIQUIDEX e, posteriormente, em diversas exchanges ao redor do mundo, conferindo acesso aos usuários amplo aces-
so ao ecossistema de negócios LIQUIDEX.
- Como mencionado acima, o LQX não possui natureza de valor mobiliário, regulado pela Comissão de Valores Mobiliários, assim como
não se trata de título emitido ou chancelado por qualquer governo, autoridade central ou autoridade monetária, incluindo, mas não se
limitando, ao Banco Central do Brasil.
- Os LQX emitidos em volume máximo definido neste Whitepaper (website), dentro do período estabelecido para tanto, conforme Road
Map.
- O Adquirente declara possuir (a) ciência dos riscos envolvidos em operações envolvendo criptoativos, tal como o LQX, sobretudo
em razão da grande volatilidade existente neste mercado, e (b) assumir a responsabilidade exclusiva por eventual perda ou prejuízo
decorrente da aquisição de LQX.
- O LQX não possui qualquer garantia (a) do Fundo Garantidor de Credito – FGC, (b) de valor fixo para conversão para moedas oficiais,
como o Real ou Dólar, ou outros Ativos Digitais/Criptomoedas; e (c) de existência de lastreamento em ativos de qualquer espécie.
- A LIQUIDEX não oferece a nenhum de seus clientes a opção de compra de LQX como investimento, mas como uma utilidade, a qual
poderá sofrer variação positiva ou negativa em seu preço, em decorrência da demanda de mercado acerca da referida criptomoeda,
objeto deste whitepaper (website).
44
- O presente Whitepaper (website) fornece aos potenciais adquirentes as informações ao respeito da criptomoeda LQX, apresentando
seus aspectos legais, informações técnicas do projeto, objetivos gerais, diferenciais e utilidades disponibilizadas, road map, e equipe
envolvida.
- Ao adquirir LQX, o Adquirente declara possuir ciência deste whitepaper (website), aceitar e concordar com todas as suas carac-
terísticas e regras, submetendo-se sem restrições ou ressalvas, de acordo com sua livre convicção.
- O objeto do presente whitepaper (website) não está disponível para adquirentes não credenciados, e/ou localizados em países cuja
legislação não permita a realização de transações envolvendo criptoativos.
- A LIQUIDEX não fornece conselho de investimento aos seus clientes e afiliados, não se responsabiliza por decisões de investimentos
que venham a ser tomadas com base nas informações divulgadas neste whitepaper (website) e se exime de qualquer responsabilidade
por quaisquer prejuízos, diretos ou indiretos, que venham a decorrer da utilização deste material ou seu conteúdo.
- Os dados apresentados neste whitepaper (website) para contextualização do mercado de criptoativos e seu ecossistema de negóci-
os, em especial a valorização passada de diversas criptomoedas não garantem a valorização futura daquelas criptomoedas ou mes-
mo do LQX.
45
29. Risk DisclaimerTRADING AND FINANCING TRADES IN CRYPTOCURRENCY ENTAILS CERTAIN RISKS. THIS RISK DISCLOSURE STATEMENT CANNOT
AND DOES NOT DISCLOSE ALL RISKS AND OTHER ASPECTS INVOLVED IN HOLDING, TRADING, OR ENGAGING IN FINANCING OR FI-
NANCED TRANSACTIONS IN CRYPTOCURRENCY.
The market for cryptocurrency is still new and uncertain. No-one should have funds invested in cryptocurrency or speculate in cryp-
tocurrency that she is not prepared to lose entirely. Whether the market for one or more cryptocurrency will move up or down, or
whether a particular cryptocurrency will lose all or substantially all of its value, is unknown. This applies both to traders that are going
long and to traders that are shorting the market. Participants should be cautious about holding cryptocurrency.
Markets for cryptocurrency have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can am-
plify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade cryptocurrency or products
derived from or ancillary to them. Furthermore, any market for cryptocurrency may abruptly appear and vanish.
Legal Risk: The legal status of certain cryptocurrency may be uncertain. This can mean that the legality of holding or trading them
is not always clear. Whether and how one or more cryptocurrency constitute property, or assets, or rights of any kind may also seem
unclear. Participants are responsible for knowing and understanding how cryptocurrency will be addressed, regulated, and taxed
under applicable law. There is a risk that in some jurisdictions cryptocurrency might be considered to be a security, or that it might be
considered to be a security in the future. LQX Crypto does not give warranties or guarantees that any cryptocurrency is not a security
in all jurisdictions. Your is bound to check if acquisition and disposal of cryptocurrency is legal in his jurisdiction, you undertake not to
use cryptocurrency should their use not be legal in the relevant jurisdiction. If You establish that the use of cryptocurrency is not legal
in your jurisdiction, you should not use cryptocurrencies, not acquire them and should immediately stop using or possessing them if
such case arises.
Exchange Risk: Having cryptocurrency on deposit or with any third party in a custodial relationship has attendant risks. These risks
include security breaches, risk of contractual breach, and risk of loss. Participants should be wary of allowing third parties to hold
their property for any reason.
You acknowledge that LQX Crypto is not responsible for any losses or damages of any kind arising either directly or indirectly from a
withdrawal of funds from your account by a third party due to the loss of credentials.
You acknowledge that LQX Crypto is not responsible for any losses or damages of any kind arising either directly or indirectly from the
sending of cryptocurrency to the wrong wallet address during the withdrawal of funds from their LQX Crypto account You acknowl-
edge that any cryptocurrency may be lost if sent to the wrong address. You accept that LQX Crypto is not responsible for any losses or
damages whatsoever arising directly or indirectly due to any such error.
Trading Risk: In addition to liquidity risks, values in any digital token marketplace are volatile and can shift quickly. Participants in any
cryptocurrency market are warned that they should pay close attention to their position and holdings, and how they may be impacted
by sudden and adverse shifts in trading and other market activities.
Risks Associated with Financing Activities: When you finance a purchase or sale of cryptocurrency on a peer-to-peer basis, you run
the risk of losing your provided financing. Similarly, when you accept financing to enter a trading agreement, you accept the risk of not
being able to repay that financing (e.g., if the market price of the cryptocurrency you purchased with the financing falls). Participants
should know all of the terms of any contracts they enter and how their trading strategies and other market and risk factors can affect
their financing obligations.
You accept and acknowledge that LQX Crypto shall have, and maintains, the right to refuse orders to establish new or larger positions
or to buy or sell Instruments.
Internet risks: You acknowledge that there are risks associated with using the cryptocurrency including, but not limited to, the failure
of hardware, software, and Internet connections.
You acknowledge that LQX Crypto shall not be responsible for any communication failures, disruptions, errors, distortions or delays
46
You may experience when using the Website and cryptocurrency, howsoever caused.
Taxation: You bear the sole responsibility to determine if the purchase of cryptocurrency or the potential appreciation or depreciation
in the value of cryptocurrency over time has tax implications for You in Your home jurisdiction. By purchasing cryptocurrency and to
the extent permitted by law, You agree not to hold any of LQX Crypto, its affiliates, shareholders, directors or advisors liable for any tax
liability associated with or arising from the purchase of cryptocurrency.
You are solely responsible for withholding, collecting, reporting, paying, and/or remitting any and all taxes to the appropriate tax au-
thorities in such jurisdiction(s) in which You may be liable to pay tax. LQX Crypto shall not be responsible for withholding, collecting,
reporting, paying, and/or remitting any taxes (including, but not limited to, any income, capital gains, sales, value added or similar tax)
which may arise from Yours acquisition of cryptocurrency.
Unanticipated risks: Cryptocurrencies and blockchains are new and untested technology. In addition to the risks set forth here, there
are risks that LQX Crypto cannot foresee and it is unreasonable to believe that such risks could have been foreseeable. Risks may
further materialize as unanticipated.
30. LQX MediaFacebook: https://www.facebook.com/LQXcrypto
Twitter: https://twitter.com/cryptoLQX
Telegram: https://t.me/LQXcrypto
Instagram: @LQXcrypto
Website: https://lqxcoin.com
31. Contact UsFor general inquiries please contact: [email protected]
For support: [email protected]
Send us your queries and suggestions, and one of our representatives will contact you shortly.
47
THE WHITEPAPER
