Under-the-hood insights into OffchainCoin's architecture and security.
OffchainCoin introduces a new approach to digital currency: each unit is a unique file stored only within the user’s wallet. This OFFCC file is not mirrored, duplicated or tracked in a global ledger. It exists exclusively on the holder’s device, preserving both uniqueness and privacy.
When a coin is spent, the wallet sends its file to a validation server. The server performs a cryptographic hash of the file and compares it to the expected value. If the hash matches, the server replaces the old hash with a new one provided by the wallet and marks the previous one invalid. This ensures the coin cannot be reused and is securely marked as spent.
After validation, the new hash is broadcast across all network nodes. Each node updates its record to reflect the updated state. This lightweight propagation model replaces traditional mining and consensus mechanisms with fast and efficient synchronization, keeping the network in agreement without the need for fees or energy consumption.
For peer-to-peer transactions, OffchainCoin wallets use Bluetooth to exchange OFFCC files directly. Before a transaction begins, both wallets execute mutual integrity checks using cryptographic methods to verify that the wallet software and encrypted database have not been tampered with. Each OFFCC file is PGP-signed and stored in a secure, encrypted local database. This database is validated at every transaction, making it impervious to unauthorized changes—even on rooted devices. The sender signs the coin file and transmits it over Bluetooth. The receiver verifies the PGP signature, checks the hash against its local and network records, and only then credits the coin. This model ensures offline transfers are as secure and verifiable as online transactions.
Looking forward, OffchainCoin will include an on-chain voting system to manage the creation of new coins and the authorization of new validation nodes. This decentralized governance is currently in advanced development, aiming to give users direct control over the evolution of the protocol without any centralized authority.
Altogether, the system merges unique-file coins, secure cryptographic validation, network-wide synchronization, offline peer-to-peer transfers, and democratic governance. The result is a robust and flexible digital currency protocol that puts control directly in the hands of its users.