The Winner Takes It All (Part 2)

When the facts about EPIC burst the BTC bubble.

EPIC Cash, designed strictly on the DNA of the original Bitcoin, is the direct and only serious competitor to Bitcoin Core. The similarities include what BTC maximalists consider a unique characteristic of Bitcoin Core: fundamental scarcity. Both blockchains are limited to a 21 million coin issuance, both use proof of work, both have no pre-mining, no ICO, no VC, and no corporation behind it responsible for further development.  (Blockstream, however, is suspected of significantly influencing the development of Bitcoin Core to its own advantage. "The Crippling of Bitcoin by Blockstream.") EPIC Cash's defensive and legally compliant approach to development makes it immune to expected SEC attacks, just like Bitcoin Core. Both are grassroots movements supported by a community of voluntary members (growing rapidly in the case of EPIC Cash, with 300+ contributors in nearly 100 countries).

EPIC Cash's differences from Bitcoin Core are largely based on the underlying blockchain protocol. The revolutionary Mimblewimble (MW) protocol, on which EPIC is based, was introduced in 2016 and first used in 2019 as BEAM, then GRIN, and finally EPIC Cash, a hard fork of GRIN, successfully implemented the revolutionary technology. MW represents a watershed in the evolution of blockchain technology, as it combines privacy with maximum scalability. 

The blockchain trilemma, postulated by Vitalik Buterin, is resolved by MW, or rather raised to a higher level. Both (privacy and scalability) are the key features that make EPIC Cash so far superior to Bitcoin Core. In addition to the scalability and security instilled by MW, EPIC fully addresses the blockchain trilemma by assuring decentralization on two fronts which BTC and other leading cryptos fail. First, decentralization of node presence due to MW’s lightweight blockchain which is hundreds of times smaller than BTC and can even fit on a mobile phone. Second, decentralization of Proof of Work mining power by providing industry-unique polyphasic proof of work which assures mining by general processing equipment such as CPU and GPU components found in millions of gaming computers.

Mimblewimble does not contain any new cryptographic assumptions, only an innovative redesign of the structure of transactions and blocks. Like Bitcoin Core, it is based on Elliptic Curve Cryptography. The underlying cryptographic assumptions are therefore well understood and have been successfully tested for a long time. However, the advantages only unfold if Mimblewimble has been integrated in the base layer and not retrofitted as a sidechain, as is the case with Litecoin. Since a subsequent integration in the base layer is not possible, this is probably one reason why MW is ignored or even actively badmouthed by parts of the Bitcoin Core scene. Whether out of ignorance or justified fear of superior and thus unstoppable competition is something everyone must answer for themselves. 

Bitcoin Core mainly suffers from poor scalability, slowness and, above all, a lack of privacy which ultimately results in a proven lack of fungibility. The Lightning Network developed by Blockstream is supposed to remedy these weaknesses. However, for meaningful use, the user puts himself back into the dependency of a third party (see here), which counteracts the idea behind the original Bitcoin. EPIC Cash solves all these serious problems of the Bitcoin Core with the help of Mimblewimble in an elegant and downright ingenious way. 

Transactions in EPIC Cash do not require addresses. Rather, a direct and interactive contact between sender and receiver results in private transactions without surveillable addresses. This characteristic, typical of cash, may sound cumbersome for an electronic payment process, but it is precisely this approach that makes it so superior to all other payment methods in terms of privacy. 

While this seems like added hassle, there are also already workarounds for this that make transactions just as straightforward as with other blockchains. An interactive contact between sender and recipient is established in the background, unnoticed by the user, without both having to be online at the same time. After creating a transaction, using a recipient's address permanently assigned for the purpose, the recipient must be online at some point and the sender must then go online again to complete the transaction. 

These fixed addresses used for this purpose are only temporarily stored outside the blockchain in the "Epicbox" message relay service until the transaction is completed.

This direct interactive approach offers several advantages:

• Coins cannot be lost if the wrong address is entered, as is the case with BTC and other blockchains. 

• Transactions can be carried out offline by exchanging transaction files (e.g. USB stick) and only transmitted to the blockchain at a later time. 

• Outsiders cannot subsequently identify who carried out a transaction with whom, as neither addresses nor amounts are stored on the blockchain. Subsequent deanonymization of data, as with other private coins that store sensitive data encrypted on the blockchain, is impossible even in theory.

A real highlight is the "cut through", which contributes to an ultra-light blockchain. This cleanses the distributed ledger of redundant data that is no longer needed without compromising security and with the additional benefit of a vastly compressed blockchain size. While the BTC blockchain stores all transactions ever made forever, becoming increasingly bloated, EPIC Cash keeps only the data in the blockchain that is necessary for security. This results in a 100x compression factor on disk, with a full EPIC node coming in at less than 4GB while BTC is at 400+ GB and growing. 

For example, if a coin passes through many hands (like a banknote), it is only important to know where that coin originally came from and where it eventually stayed to ensure that no new coins were created. If A sends a coin to B, B sends that coin to C, and C sends it to D, MW only records that this coin originally came from A and is now in D's possession. All intermediate steps are no longer needed and are deleted. This is a huge advantage over all other blockchain protocols that have to store a flood of data forever. Not only the blockchain size, but the data to be processed in each transaction is dramatically reduced. 

With the same workload and number of transactions, this cleanup and compression leads to a space saving of about 90% compared to the Bitcoin Core. This in turn is a huge advantage for both decentralization and data processing speed. Full nodes can be run on any low-end smartphone, not only on stationary computers with sufficient memory. Mobile mining will soon be available for EPIC Cash. This is a quantum leap in terms of decentralization and security, when every user can operate his own full node on his smartphone and is not dependent on third-party full nodes, of which it is not known what data is being tapped there.   

EPIC Cash, unlike Bitcoin Core or any other Proof of Work cryptocurrency, uses a polyphasic proof of work. Different algorithms alternate and ensure that mining is distributed across different mining types (currently 48% CPU, 48% GPU, 4% ASIC). These can also be performed with simple home computers. The percentage distribution to the different algorithms may be changed if necessary, the algorithms themselves may be exchanged or even extended by additional ones. Since Mimblewimble, just like Bitcoin Core, is vulnerable to advances in quantum computing, a quantum computing resistant algorithm is already available for EPIC Cash now and can be used immediately if needed. 

A so-called 51% attack is further complicated by the polyphasic proof of work, as the 51% hash power must be achieved for all different algorithms used. Thus, EPIC delivers greater security, while reducing energy consumption. 

The diverse hardware used in mining EPIC Cash has the further advantage that it lacks the hidden backdoor code with remote access and kill switch, as found in Bitcoin Core mining equipment from China (see "Antbleed"), a serious vulnerability that laser-eyed bullies on Twitter dare not mention.  As mentioned in the first part, ASICs are highly specialized devices that are built for the sole purpose of mining and can only be used for that purpose. A hidden kill switch can cripple large portions of mining devices in one fell swoop. What other backdoor code is hiding in the Chinese-made ASIC miners is anyone's guess. In any case, pure ASIC mining leaves an uneasy feeling for any user who is concerned about security and independence. EPIC is mined on standard consumer hardware, no special equipment required. 

In terms of scaling, EPIC Cash in its current state performs at 17 transactions/second, approximately 4x that of Bitcoin Core, which is currently running at <5 tps.  Both Block Size and Block Time will be changed in EPIC Cash over time (see table) so that at Singularity (reaching the same number of issued coins of EPIC Cash and Bitcoin Core, see graphic below) in June 2028 already 12,800 transactions/second can be performed. In the subsequent phases, up to 512,000 transactions/second or over 40 billion transactions per day.  

Epic and Bitcoin emission schedules

If a blockchain reaches the limits of its maximum possible transactions/unit of time, a congestion of transactions to be processed occurs. This can lead, as already happened with Bitcoin Core, to transactions not being executed for days or even weeks because transactions paying a higher transaction fee are given priority. EPIC Cash provides sufficient capacity to guarantee execution with low fees even with very high transaction volumes. 

Part one addressed the serious problem of Bitcoin Core not being able to sufficiently compensate miners via transaction fees after all 21 million coins have been issued. EPIC Cash will not have this problem, because the transactions/day are not limited to a maximum of 600k/day as with BTC, but can reach over 1 billion/day at singularity (see above). Even with very low transaction fees, this will be enough to make mining profitable.

Bitcoin Core is often touted as the best decentralized network. 

According to bitnodes.io, there are around 18,000 Bitcoin Core nodes accessible worldwide.  EPIC Cash currently counts about 10,000 nodes, which is a conservative estimate. As can be seen from the chart below, the number of countries and cities in which nodes of the EPIC Cash network are operated has always increased significantly. 

With the introduction of full nodes on smartphones, this will continue to increase drastically and surpass Bitcoin Core many times over. It won't be long before the BTC network can no longer call itself the best decentralized network. 

Looking more closely at the other properties of Bitcoin Core often praised by the high priests of BTC maximalism, such as neutrality, censorship resistance and confiscation resistance, the result is sobering here as well. The events in Canada should have been a wake-up call to everyone that undesirable on-chain activity can lead to off-chain consequences (BTC donations to trucker protests later classified as funding terrorist activities). 

This has little to nothing to do with neutrality. Censorship resistance and confiscation resistance also exist, but only to a limited extent. BTC miners in the U.S. can be required to stop processing blacklisted addresses and report them to authorities. A patent for this is held by DMG Blockchain Solutions Inc (Press release). As explained in part one, the ASIC mining-focused algorithm leads to a concentration of mining on fewer and fewer large mining farms, which can easily be forced by governments to not further process certain coins and report them. This is all a result of a lack of privacy.

Conclusion:

Bitcoin Core, which is equipped with outdated technology, is inferior to EPIC Cash in all areas, save for marketing spin. The lack of scalability and privacy degrades Bitcoin Core to a store of value at best. The Lightning Network cannot provide the solution hoped for. An end to profitable BTC mining is in sight and with it, an end to network security. Bitcoin Core is kept alive solely by its first mover advantage and hype by BTC maximalists. It is the Ford T-model of cryptocurrencies and thus has its deserved place in cryptocurrency history. BTC cannot fulfill the claim to be an alternative to the existing fiat money system. 

EPIC Cash with Mimblewimble is exactly what many believe Bitcoin Core to be. If Satoshi Nakamoto had the technology of 2019 in 2009, BTC would look like EPIC Cash today.

For more information, please visit www.epiccash.com