Bitanica Gold Whitepaper v.1.0

1. Introduction

In the world of cryptocurrencies, the price volatility of virtual assets is a constant challenge, which hinders the widespread adoption and use of cryptocurrencies as a reliable means of exchange. Similarly, investing in physical gold presents challenges for investors in terms of storage and trading. Although an investor can purchase a large amount of physical gold, they incur storage and transportation costs, and trading this asset is also difficult.

Bitanica addresses this challenge by launching Bitanica Gold (GOLDb), a virtual asset pegged to the price of one of the world's most stable assets — gold — and backed by corresponding virtual assets (specifically, PAX Gold). The first version of the Bitanica Gold Whitepaper will introduce you to the core principles and mechanisms that underpin Bitanica Gold.

You will receive information about the technological solution of Bitanica Gold, its issuance and burn process, the backing mechanism, use cases, advantages, and future development. We invite you to explore the potential of the gold standard that Bitanica introduces into the evolving landscape of digital finance.

2. Advantages

Backed by Virtual Asset (PAX Gold) - Bitanica Gold is backed by corresponding virtual assets (PAX Gold).

Transferable - Bitanica Gold enables simplified transactions, making it convenient for a wide range of scenarios and applications.

Convertible - Bitanica Gold holders can exchange their GOLDb, with equivalent value, for corresponding fiat assets, crypto assets, or gold certificates.

Auditable - The audit processes for issuance and burning are prioritized for simplification. Blockchain technology allows any interested party to easily verify the total amount of issued Bitanica Gold and compare it with the amount of virtual assets (PAX Gold) in Bitanica's wallet address.

Programmable - Bitanica Gold is compatible with smart contracts, programmable, and can be used in escrow services.

Low Fees - Unlike traditional financial transactions, which often require high fees, blockchain-based transactions are associated with much lower costs. This cost-efficiency makes GOLDb an attractive economic instrument.

Protected from Provider Bankruptcy - GOLDb reserves are stored in LLC Bitanica’s cold wallet address. This means that even in the unlikely event of the provider’s bankruptcy, the reserves remain protected, ensuring the security of Bitanica Gold.

Easy Storage - Since GOLDb is a virtual asset, it can be stored and managed even with a simple device, which is unimaginable for physical gold.

Reliability - As GOLDb is issued by LLC 'Bitanica,' a virtual asset service provider registered by the National Bank of Georgia and compliant with all legislative requirements, its reliability is beyond question.

International Accessibility - Any user, whether an individual or a legal entity, can easily purchase GOLDb from anywhere in the world.

Spot Trading - Spot trading is an important aspect, as users themselves can directly exchange GOLDb and other corresponding assets at agreed prices.

3. Bitanica’s Technological Solution

GOLDb, within the Bitanica ecosystem, is backed by an equivalent amount of corresponding crypto assets (PAX Gold) with precise accuracy. LLC Bitanica acts as the trusted party responsible for safeguarding these assets. This approach simplifies auditing while enhancing security and transparency in the auditing process.

GOLDb utilizes the Binance blockchain network, specifically the BEP20 standard.

The blockchain ensures transaction validation through the Proof of Staked Authority (PoSA) consensus mechanism, which guarantees the immutability of records and public transparency.

The blockchain enables interested parties and market participants to use existing blockchain monitoring applications (https://bscscan.com/) to view the issued quantity and transactions of Bitanica’s GOLDb. This gives stakeholders the ability to easily explore the amount of GOLDb issued or burned by LLC Bitanica.

In the future, GOLDb will be distributed on other blockchains to extend the benefits of Bitanica Gold tokens to a broader audience. The addition of new blockchains will be subject to criteria including quality, risk, and technical assessments.

3.1 Purchase, Sale, and Redemption of Bitanica Gold into Gold Certificate

The process of purchasing and redeeming Bitanica Gold is designed to be fast and user-friendly:

1. Users can purchase GOLDb through the trading platform at 'Bitanica.com'.

2. Selling GOLDb is just as simple as buying it. Users can initiate the selling process via Bitanica’s trading platform by specifying the amount they wish to sell. Upon sale, the corresponding funds are transferred quickly and easily to the user’s bank account. This simplicity and transparency in the buying and selling process contribute to a positive user experience within the Bitanica ecosystem.

3. Users also have the option to convert their GOLDb into a corresponding gold certificate, which can later be redeemed for physical gold at the Cash Center of the National Bank of Georgia. GOLDb can be exchanged for equivalent 20-gram and 1-kilogram gold certificates. At the moment the user submits a conversion request, the GOLDb amount will be deducted from their wallet based on the prevailing price, plus a service fee charged by the company.

3.2 Description of GOLDb, Funds, and Gold Certificate Movement

Issuance of Bitanica GOLD (GOLDb) and the User Purchase Process:

The crypto asset Bitanica GOLD, issued by LLC 'Bitanica', will be backed by an equivalent amount of a crypto asset (PAX Gold).

1. The user deposits funds into the appropriate bank account of LLC 'Bitanica'.

2. LLC 'Bitanica' credits the user’s account with an equivalent amount in a stable currency (GELB, USDB, EURB).

3. The user converts the stable currency into an equivalent amount of GOLDb.

4. LLC 'Bitanica' purchases the corresponding amount of cryptocurrency (PAX Gold).

5. The user can convert GOLDb back into another crypto asset or fiat currency, in which case the equivalent amount of GOLDb is burned.

6. Additionally, if the user’s account holds the minimum GOLDb limit defined by LLC 'Bitanica' (equivalent to a 20-gram gold certificate), the user can request to convert GOLDb into the corresponding gold certificate.

7. The user contacts a provider to initiate the conversion of Bitanica GOLD coins into a gold certificate.

8. The provider informs the client about the price of the respective gold certificate.

9. After the client agrees to the terms, the provider converts the Bitanica GOLD coins into fiat currency.

10. The provider contacts a commercial bank to purchase the respective gold certificate.

11. Both parties contact the commercial bank to complete the resale of the gold certificate.

12. The provider transfers the converted fiat funds to the personal account opened by the client at the commercial bank. Through a Delivery versus Payment (DvP) transaction, the commercial bank exchanges the gold certificate from the provider’s account into the equivalent fiat funds on the client’s account.

3.3 Reserve Verification Process

Bitanica’s reserve verification setup simplifies the auditing process, ensuring that the total amount of GOLDb in existence is always fully backed by an equivalent amount of the corresponding crypto asset (PAX Gold). This means the system is fully reserved when the total GOLDb in circulation exactly matches the quantity of the corresponding crypto asset (PAX Gold).

Since Bitanica Gold exists on the blockchain, it can be audited at any given point in time.

4. Detailed Overview of Bitanica Gold

In this section, we will discuss the specifications of Bitanica Gold, highlighting its unique features, advantages, and use cases.

4.1 Bitanica Gold (GOLDb)

1 GOLDb = 1 ounce of gold

Bitanica Gold, pegged to the price of gold, is a reliable virtual asset linked to the value of physical gold. Users can benefit from the price movements of physical gold in the digital space, make transactions using Bitanica Gold, or convert GOLDb into a corresponding gold certificate.

Buy/Sell: Bitanica Gold can be bought or sold on the trading platform Bitanica.com.

Transfer/Receive: Users can transfer Bitanica Gold between each other free of charge.

Technical Specifications: Binance Smart Chain - [ 0x288Df287f9f5e86b77cD461f50c8d70e49Babb5e ]

Name: Bitanica Gold

Symbol: GOLDb

Network: Binance

Decimals: 6

Stability Mechanism: Each issued Bitanica Gold token is backed by a corresponding reserve of PAX Gold, ensuring an exact 1:1 ratio. Any BEP-20 wallet can send and receive GOLDb.

First Issuance (GOLDb)

Date: 10/10/2024

Issuance Limit: Unlimited

Created GOLDb = Amount of GOLDb held in Bitanica.com's wallet (Hot Wallet) = Corresponding virtual asset reserve (PAX Gold).

New Issuance and Burn Procedure

If a client wishes to redeem GOLDb for fiat or a gold certificate, the equivalent amount of tokens will be burned.
At the end of each month, an audit will be conducted to account for the total amount of GOLDb issued on the blockchain, the circulating supply held by Bitanica.com users, and the reserve balance of the corresponding virtual asset (PAX Gold). The reserves are balanced using the formula: Issued GOLDb = GOLDb on Bitanica.com + GOLDb on user blockchain addresses = PAX Gold held in the wallet address of LLC 'Bitanica'.
Based on the audit results, new GOLDb may be issued or burned according to the positive or negative balance.
The audit report and burn documentation will be publicly published at the end of each month at: Bitanica.com

5. Partnerships and Integrations

Partnerships and integrations can play a crucial role in the success of Bitanica Gold. By collaborating with projects and platforms, demand may increase and users may gain more opportunities to use GOLDb.

1. Trading Platforms (Exchanges)

We aim to partner with other crypto asset trading platforms to increase liquidity and trading volume. On popular exchanges, Bitanica Gold can become more accessible to users and enhance its overall utility.

2. Wallet Providers

We aim to collaborate with crypto wallet providers to make it easier for users to store and transact Bitanica Gold. This could grow the GOLDb user base and make Bitanica Gold more convenient to use and store.

3. Decentralized Finance Projects

Decentralized finance (DeFi) platforms can adopt GOLDb. This may increase its utility and offer users more opportunities.

4. Cross-Blockchain Integrations

GOLDb will be compatible with various blockchains to allow transfers across different blockchain ecosystems. This could increase GOLDb’s compatibility and make it more useful across different ecosystems.

6. Future Development

Bitanica will continue to enhance and expand its ecosystem.

This section presents the vision for Bitanica Gold’s continuous improvement and expansion:

1. Technological Advancements

Bitanica aims to remain at the forefront of technological innovation in the crypto asset space.
Ongoing technological improvements will focus on enhancing stability mechanisms, user experience, and overall system efficiency.

As we progress, we will adapt to market demands and evolving technologies to ensure the highest standards of stability and security.

7. Security and Compliance

Bitanica aims to uphold the highest standards of security and compliance within its ecosystem.

Overview of Our Approach:

1. Security Measures

Bitanica implements the latest security protocols.

These measures include:

Regular monitoring and auditing of reserves to ensure their safety.
Multi-signature confirmation processes and continuous threat monitoring.

2. Regulatory Compliance

Bitanica adheres to regulatory standards, working closely with oversight bodies and complying with regulatory/legal requirements, including:

Conducting regular compliance audits.
Implementing strong KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures.
Monitoring transactions.
Ensuring transparency and awareness.

8. Risks

Bitanica ensures users are provided with comprehensive and transparent information about the risks associated with using GOLDb.

Like any financial instrument, Bitanica Gold carries certain risks. It is essential for users to understand these risks in order to take effective precautions:

1. Reserve Risks

Since Bitanica Gold is backed by the crypto asset PAX Gold, there is a risk that this asset could lose its peg to gold or decline in value, which could in turn devalue Bitanica Gold.

2. Operational Risks

Bitanica Gold and other crypto assets face operational risks such as fraud and cyber threats. These risks arise from factors like the complex nature of the crypto ecosystem, dependence on third-party service providers, and insufficient safeguards against asset loss or theft. To mitigate these risks and enhance security, we employ various strategies to defend against cyber threats and implement robust processes in dealings with third-party providers.

3. Regulatory Risks

In addition to protecting against operational risks, our priority is to maintain strong cooperation with regulatory bodies. We understand the importance of compliance with current regulations, which means we actively collaborate with regulators to ensure a thorough understanding and observance of the existing regulatory landscape.

4. Intermediary Risks

Involving financial intermediaries in the process can introduce additional risks such as increased costs and delays in the redemption process.

9. Conclusion

GOLDb offers a wide range of benefits that significantly enhance the user experience. Collectively, these features create a secure, efficient, and convenient option for users, offering reliability and stability in financial transactions.

We’ve examined the challenges and complexities of physical gold, which GOLDb aims to solve. Security, compliance, and user experience are our top priorities. The introduction of new Bitanica coins, technological improvements, and community engagement are the main focus points on our roadmap. We encourage our users to actively participate in the evolution of our ecosystem, which is key to achieving irreversible progress.

In conclusion, Bitanica Gold represents our commitment to the crypto space.