Whitepaper

Whitepaper

Abstract. A cryptocurrency based on Bitcoin, the work of Satoshi Nakamoto, with various improvements such as a two-tier incentivized network, known as the masternode network. Included are other improvements such as PrivateSend, for increasing fungibility, and InstantSend, which allows instant transaction confirmation without a centralized authority.

Bitcoin is a cryptocurrency that has emerged as a popular medium of exchange and is the first digital currency that has attracted a substantial number of users. Since its inception in 2009, Bitcoin has been rapidly growing in mainstream adoption and merchant usage. A main issue with the acceptance of Bitcoin in point-of-sale (POS) situations is the time required to wait for the network to confirm the transaction made is valid. Some payment processors have created methods to allow vendors to take zero-confirmation transactions, but these solutions utilize a trusted counterparty to mediate the transaction outside of the protocol.

Bitcoin provides pseudonymous transactions in a public ledger, with a one-to-one relationship between sender and receiver. This provides a permanent record of all transactions that have ever taken place on the network. Bitcoin is widely known in academic circles to provide a low level of privacy, although with this limitation many people still entrust their financial history to its blockchain.

Hatch is the first cryptocurrency based on the work of Satoshi Nakamoto with built-in privacy functions. In this paper we propose a series of improvements to Bitcoin resulting in a decentralized, strongly anonymous cryptocurrency, with tamper-proof instant transactions and a secondary peer-to-peer (P2P) network incentivized to provide services to the Hatch Network.