TROPTIONS WHITE PAPER WHAT BITCOIN WAS SUPPOSED TO BE!

Fundamentally, the purpose of TROPTIONS is to develop a bartering system with computer technology for enabling multiple parties to send payments online directly to each other (“peer-to-peer cash system”) without requiring a financial institution such as a bank. First and foremost, the underlying system for such transactions would need to meet several security requirements. As the proposed transaction is to be cashless and be executed online, the problem of double spending would need to be addressed. Double spending is the potential weakness in a digital cash system - the possibility that the same unit of value (the token) could be spent twice if someone duplicates or falsifies a token. The prerequisites for this type of decentralized cash system to work are • Cooperation between the parties running the system (network structure) • Ensuring that previous records can never be changed (immutability) and • Agreement on the validity of transactions according to certain rules (consensus) In other words, all parties need to agree on rules and cooperate in line with those rules while ensuring that records are valid according to these agreed-upon rules as well as immutable. Transactions An electronic coin is a chain consisting of digital signatures. Electronic coins are lines of protected computer code that exist in relation to the previous code in line before them. You can’t hold electronic coins in your hands like a traditional currency; they only exist online. Let’s say an owner of TROPTIONS wants to make a transaction. If the owner activates a transaction to transfer the coin to the next owner, the value of TROPTIONS is broadcast to the network. The owner activates the transfer of the coin to the next owner by digitally signing a hash - the unique digital fingerprint - of the previous transaction to encrypt the hash. The encryption behind Bitcoin uses two mathematically related keys - a public key and a private key. They are related but not identical. The public key is needed to encrypt the transaction along with the owner’s private key to create the digital signature - it is like a bank account number, while the private key is similar to the access code for a bank account. Therefore, the public key is also the address of the recipient to which the owner wants to send TROPTIONS. This information is added to “the end” of the coin. Naturally, the next owner - owner-the recipient-wants - wants to ensure that the amount sent to them has not been previously spent in an earlier transaction. The only way this can be ensured is by the network agreeing on all transactions made before in the order they have been made. The valid order of all transactions in the network has to be publicly announced so everyone knows what is valid, and for this, the network needs to have an agreement of rules in place on what is valid. Each recipient of a transaction wants proof that at the time they received their transaction, the majority of the network agrees that it was the recipient who was the first to receive this transaction and no other recipients have received the same transaction before. The valid order of all transactions in the network has to be publicly announced so everyone knows what is valid, and for this, the network needs to have an agreement of rules in place on what is valid. Timestamp Server This section of the TROPTIONS Whitepaper proposes that the TROPTIONS network uses a “distributed timestamp server” to prove in which order transactions were generated. What does this mean? The TROPTIONS network runs on a distributed system of computers. All computer processes in the network run simultaneously on hundreds and thousands of computers - i.e. nodes - located in different countries distributed all over the world. All these computers are connected to each other, and anyone with the suitable equipment can set up a computer to join in. The more computers in the network, the more copies of the records, making the system even more secure. Obviously, it would be close to impossible to simultaneously steal or destroy records from thousands of computers at the same time at once. Therefore, the system is safe as long as the majority of parties operating the computers collectively agree on the longest “chain” of data records - the “valid” blockchain. Transactions are bundled into blocks containing several transactions and information on the previous block. A timestamp server, a piece of software, adds the timestamp to the hash of a block at the same time on all the hundreds and thousands of computers in the network. The timestamp provides the proof that the data must have existed at this time, and every timestamp includes the previous timestamp in its hash. This way, a chain is formed with each additional timestamp reinforcing the timestamps before it. Think of the analogy of Russian stacking dolls - a tiny doll inside a larger doll that is inside a larger doll, and so on - this is what a TROPTIONS transaction looks like. A timestamp server, a piece of software, adds the timestamp to the hash of a block at the same time on all the hundreds and thousands of computers in the network. Imagine owning digital artworks, gaining access to exclusive platform features or holding voting rights in decentralised organisations – tokens make all this possible. These digital assets are much more than just alternative currencies. They’re key to innovative transactions and interactions in the world of cryptocurrency. In this article, you’ll learn what a token is, why it’s important in the crypto space and how tokens work. • A token is a digital asset based on a blockchain that can serve various functions within a crypto project. • Tokens act as carriers of value and information, enabling secure transactions on the blockchain. • There are several types of tokens, including utility tokens, security tokens, governance tokens, non-fungible tokens (NFTs) and payment or currency tokens, each with specific roles and features. • Unlike coins, which are mainly used as “digital money”, tokens often have a wider range of applications and are not always designed as standalone currencies. • Tokens play a central role in many innovative use cases such as digital identity, access control and proof of ownership, and they are increasingly shaping the development of the digital economy and technology. Definition: What is a token? A token is a digital unit that represents a specific value, access right, or entitlement – for example, a ticket, a login code, or a digital collectible. Tokens are based on blockchain technology and securely and transparently represent ownership, usage rights, or access to digital services. Each token can hold unique information, allowing it to represent specific assets or rights. This enables physical objects like real estate or art, and intangible assets like licenses or patents, to be digitised and traded. In the crypto world, tokens are more than just tools for transferring value. They’re a flexible instrument that supports ownership management, access to digital services and participation in networks. How do tokens work? Tokens are, simply put, digital assets that typically exist on a blockchain. They represent ownership or access rights and can take on a wide range of forms and functions depending on their design and the underlying technology. Blockchain technology provides an environment where tokens are managed within a distributed network, eliminating the need for central control points. The integrity and ownership of a token are secured through the collective agreement of all network participants, and transactions are immutably recorded on the blockchain. Smart contracts automate token-based systems by executing conditional operations, such as releasing tokens after certain milestones or paying for services once delivered. These contracts act as trusted digital agents that reduce the need for traditional intermediaries. Alongside smart contract-based tokens on platforms like Ethereum, there are also native tokens built directly into blockchain protocols. These tokens don’t require smart contracts, as their functions are embedded in the core of the blockchain itself. Examples include native coins like Bitcoin or Litecoin, which are defined by the protocol rather than by additional contracts. Regardless of how tokens are created and managed – whether through smart contracts or protocol-level definitions – the principles of decentralisation and cryptography ensure a high degree of security and transparency. This opens up a wide range of use cases, especially in areas like decentralised finance (DeFi). Why are tokens important? Tokens have a transformative impact on the digital economy, reshaping how we think about ownership, value transfer, and investment. They allow us to digitise property rights, enabling secure and efficient value transfers across borders without intermediaries. In the cryptocurrency world, tokens serve as a bridge between traditional finance and the emerging digital economy. They offer not only new investment opportunities but also the foundation for innovative use cases in areas like the Internet of Things (IoT) and supply chain management. The rise of tokens has also given birth to new communities and economic models, such as decentralised autonomous organisations (DAOs), which operate through collective ownership and management of tokens. Tokens are, therefore, not just a technical concept, but also a social and economic phenomenon, enabling new forms of collaboration and value exchange. Types of tokens There are many types of tokens, each with specific characteristics and purposes. Utility tokens provide access to services or functions on a platform. Security tokens represent investments and can grant ownership rights, while non-fungible tokens (NFTs) reflect uniqueness and secure ownership of digital or physical objects. Payment tokens act as a medium of exchange and store value. Utility tokens Utility tokens give users access to services or features of a specific blockchain platform. They’re a vital part of many blockchain ecosystems and are commonly used to pay transaction fees or grant permission to use system resources or applications. DeFi tokens DeFi tokens are at the heart of the growing decentralized finance (DeFi) sector. They typically represent voting rights or shares within DeFi projects and can be used for staking, governance participation, or as collateral in peer-to-peer lending platforms. Governance tokens Governance tokens are a type of crypto asset that grants holders voting rights and influence over the decisions of a blockchain-based organization. They’re tools for decentralizing decision-making and encouraging user participation. Non-fungible tokens (NFTs) Non-fungible tokens, or NFTs, are unique tokens that aren’t interchangeable. They usually represent digital artworks, collectibles or other one-of-a-kind items. Their uniqueness and built-in proof of authenticity make them an essential tool for asset tokenization and intellectual property protection. Equity tokens Equity tokens represent digital assets that stand for ownership in a company. Much like traditional shares, they give holders rights such as voting power and potential profit sharing. Equity tokens use blockchain to simplify the ownership and trading of company shares. They let businesses raise capital by tokenizing shares and selling them to investors. This type of token is often subject to strict regulatory rules, especially when classified as securities, and may require approval from financial authorities. Asset tokens Asset tokens are a form of digital asset that map real, tangible values such as real estate, art, or precious metals onto the blockchain. What do these tokens mean for investors? They let people buy fractions of valuable assets, helping to democratise ownership. Security tokens Security tokens are digital crypto assets that represent shares in an asset or business. Unlike utility tokens, which often serve as access passes for services or platforms, security tokens grant ownership rights and may offer dividends, voting rights, or other benefits, much like traditional securities. They can represent a variety of assets, including stocks, bonds, funds, and real estate. Issuing security tokens often comes with regulatory requirements, depending on the jurisdiction and type of asset offered. Payment or currency tokens (TROPTIONS PAY, TROPTIONS.GOLD) Payment or currency tokens serve as digital mediums of exchange, designed to replace or complement traditional currencies in blockchain projects. They’re often used to buy goods and services both inside and outside the crypto ecosystem. Cryptocurrencies, tokens and coins – the differences Tokens and coins are both types of digital crypto assets that exist on a blockchain, but there’s one key difference: coins are digital currencies that run on their own blockchain and are primarily used as a medium of exchange, like Bitcoin on its own blockchain. Tokens, on the other hand, are built on existing blockchains and often represent specific assets or usage rights within a project. Coins are native digital currencies that operate directly on their own blockchain, such as Bitcoin or Litecoin , and are mainly used as payment. In contrast, tokens are digital assets created and used on existing blockchains to represent a wide variety of assets and rights, setting them apart from coins. In fact, the term cryptocurrency often causes confusion. While all coins are considered cryptocurrencies because they’re designed as payment methods, tokens aren’t always intended as currency, even if they can be used that way. So not all cryptocurrencies are coins. A coin refers specifically to digital money that’s based on its own blockchain, while the term cryptocurrency covers both coins and tokens that use blockchain technology. Conclusion: One word, many uses – understanding tokens The world of tokens reflects the innovative power of blockchain technology, which has grown far beyond its original purpose of digital currencies. Tokens have become versatile digital tools used across a wide range of applications – from representing artworks as NFTs, to shares in a company via security tokens, to enabling decentralised governance with governance tokens. The importance of tokens extends across nearly all aspects of the digital world, transforming traditional ideas of ownership, investment, and participation. They let us transfer, share, and store value in new ways. With every new blockchain application, the potential of tokens grows, securing their central role in the future of the digital economy. The world of tokens is rich in layers and full of possibility. It opens doors for investors, artists, and tech enthusiasts, creating space for discovery and innovation. In this dynamic field, solid knowledge is valuable – it helps unlock the full potential of digital progress and allows you to actively shape what’s to come. What is a pre-mined crypto? (TROPTIONS is pre-mined) When a cryptocurrency is pre-mined, it simply means that a portion of that currency’s coins or tokens were created - and in some cases, distributed - before the official launch of that crypto. Contrary to Bitcoin, which releases new coins as mining occurs, some crypto projects pre-create units of their currency before officially launching. In the case of pre-mined cryptocurrencies, a share of the coin supply is created at launch in the first block of the protocol and distributed to ICO investors, developers, and team members. Ripple (XRP), for instance, was created as a cryptocurrency for a centralised payment system that enables fast, cost-effective fund transfers in cooperation with banks. However, a large portion of its native currency XRP is still owned by Ripple, which centrally control the output of coins. Unlike mineable cryptocurrencies such as Bitcoin or Litecoin, pre-mined coins or tokens are often issued by a centralised authority. Before switching to Proof-of-Stake (PoS), Ethereum was both a pre-mined token and still being mined at the same time. The first Ether was offered as a pre-mined reward for people who funded the Ethereum project during its initial coin offering (ICO) in July and August 2014. What are the pros and cons of pre-mining? At this point, pre-mining is generally well accepted in the crypto community, as numerous coins and tokens are being distributed this way via ICOs and other forms of token offerings. Some argue that it makes sense to pre-mine cryptocurrencies to reward developers who took part in its creation and did the work necessary to give the cryptocurrency a certain momentum. Pre-mined coins distributed to team members behind a cryptocurrency can serve as an incentive to employees and early adopters. A pre-mine is also proof to investors that the coin or token that has been created is actually functional. A pre-mined coin can be used as a prototype to show to interested parties. On the other hand, critics contend that pre-mining mainly serves ICO startups to “pump and dump” their own cryptocurrency. “Pump and dump” is a type of investment fraud where the value of an asset bought at a low price is artificially inflated to sell it at a higher price. Are you ready to buy cryptocurrencies? What are Smart Contracts and how do they work? (TROPTIONS.UNITY) As you learned in the Beginners’ section of the Academy, smart contracts fundamentally act as the fuel for the growth of the Ethereum network in line with the goal of Ethereum to further advance use cases for blockchains. • A smart contract is a self-enforceable, digital representation of a traditional contract • The idea behind smart contracts was introduced by Nick Szabo in 1994 to decrease the level of risk for contracting parties • The Ethereum Network popularised smart contracts at scale • A smart contract is the foundation containing the fundamentals of each ICO In this article, you are going to learn about smart contracts. What are smart contracts? The earliest precursors of smart contracts were POS payment terminals and vending machines. Using a vending machine, you put in the amount of money that equals the posted price for the item you want, and within moments, you receive said item directly through a slot at the bottom of the machine. Thus, both the reception of the payment and the release of the item are automated in the purchase process. In essence, smart contracts are created to automatically execute and complete processes, such as a payment process, in digitised form.