Constructing the future of Africa
Background & History
51Zynecoin (ERC-20: Zyne) is a blockchain system created with the aim of supporting and rewarding talented innovators and entrepreneurs throughout Africa. To ensure maximum security, Zynecoin’s smart contracts are backed by Ethereum’s well-established blockchain system.
The Zynecoin team is housed in a five-story building in Marrakech. The facility acts not only as a workspace for the Zynecoin team but also an incubation center for startups that are facilitated and operate through Zynecoin.
The Zynecoin project is a new player on the scene, but it has established itself very quickly thanks to successful fundraising via an ICO. This has generated an investment fund that is used to support African startups that are working in innovative and high-potential areas, such as Hayat, Beauty&Wellness, and Use&Lend.
Zynecoin’s ICO will allow the team to develop the first African blockchain, which will also provide unique a tax fee structure based on principles from the field of game theory.
The transaction tax fee will be split up accordingly:
- 50% to the mining party
- 25% to African states
- 25% to charities around the globe
Zynecoin’s ERC-20 Token
Zynecoin’s ERC-20 compliant token will make it easier for startups to scale globally giving them cryptocurrency that is accessible anywhere in the world.
The Zynecoin token is built on the Ethereum blockchain and uses a decentralized registry system to record and verify transactions associated with it.
Zynecoin follows the standards of the Ethereum Improvement Proposals (EPI) and works on a two-contract system. Once verified, two smart contracts are created. The first corresponds to the Zynecoin token. The second is based on the ICO and will control, send, and receive funds as related to the ICO by the investors.
- 170, 000, 000 is generated in the smart contract
- 119, 000, 000 is sent to the ICO smart contract
- 51, 000, 000 remains as treasury and security funds
The ICO contract contains an oracle that communicates directly with Kraken’s API to get Ethereum’s live price, down to the second.
Zynecoin’s Blockchain Solution
Currently available blockchains pose several challenges to those who want to use them. These challenges are mentioned in the whitepaper. Now, there’s a solution: The Collaborative Mining of Zynecoin
This collaborative mining is based on two principles:
1. Hashing powers are encouraged to spread evenly between the blocks. This ensures that all the blocks are evenly extracted and that the system throughput increases as the number of blocks increase.
2. Each blockchain has different rewards and difficulties, and miners choose the one that is best suited for their mining equipment. This creates a situation where each part of the system pursues its own interests and in doing so will benefit every part of the system since everyone shares the benefits of a successful transaction. Even weaker miners, then, can collect rewards without joining a mining pool.
Game Theory and the Nash Equilibrium
How does Zynecoin deal with the risk that miners will try to dominate one another instead of working collaboratively? This is where game theory comes in.
Zynecoin mining is based on a principle from Economics known as the Nash Equilibrium. It refers to a stable state in which no player in a game can gain an advantage by unilaterally changing their strategy, on the assumption that other participants do not change theirs.
Zynecoin’s collaborative blockchain creates an environment where the Nash Principle applies. In the Zynecoin collaborative blockchain, miners are confronted with the same set of circumstances. Each miner then has to decide whether they will collaborate or not. To earn the most money, miners will need to work together and participate in collaborative node groups.
Miners can still choose to work individually. However, as you can see in the matrix below, doing so will earn them less since everyone loses when the collaboration is not complete.