Auxilium’s technology is a world first in a lot of ways. We’re one of a handful of philanthropic cryptocurrencies, our transaction-confirmation processes are more secure and environmentally-friendly, we distribute interest to our coinholders, and our blockchain isn’t limited to cryptocurrency.
Although Auxilium’s foundation is the Ethereum code base, we built our own blockchain so we have full control.
One of the biggest benefits of blockchain technology is it’s very hard to cheat. Everyone in the network has a copy of the blockchain on their computer, and each time a new transaction happens, or a new block is formed, the computers go through a process called consensus where they agree (or disagree) that the transaction is accurate.
There are three processes to achieve consensus. Proof of Work is used by Bitcoin, and it’s the most common. Computers of each coinholder are constantly “mining” or solving math equations to unlock new blocks which is necessary to sustain the block chain. In return, coinholders receive rewards. Proof of Work is extremely processor-intensive. In fact, the Bitcoin network draws as much electricity as it takes to power Switzerland in one year. It’s also vulnerable to 51% attacks. If an individual has control over 51% of the computers mining for Bitcoin, it’s possible to cheat the system.
Proof of Stake is the second-most-common form of consensus. It works by allowing coinholders to stake their coins as collateral. The more collateral you stake, the more likely you are to uncover new blocks and earn rewards. Although it uses less power than Proof of Work, coinholders still need to leave their computers on while staking their coins.
Auxilium uses Proof of Authority consensus in which we control the network of computers that create new blocks. There are only eight computers right now, which together use the energy equivalent of running one stovetop hotplate. Typically, this method of consensus doesn’t pay rewards, but Auxilium does.
An incentive of mining and staking is that they pay rewards. Proof of Authority doesn’t pay rewards, so we’ve built the Auxilium Interest Distribution (AID) platform through which we pay all our coinholders 8% interest per annum just for holding coins. From that 8%, coinholders give back: 0.64% goes to our charity fund for philanthropic projects and 0.64% goes to Auxilium research and development.
There’s no need to leave your computer on either. Simply holding coins in your personal wallet* address is enough to earn the reward.
Interest distribution (AID) comes from a premine account of 80 Million AUX coins and these have been included in the total supply cap of 300 Million coins.
Interest distribution occurs on the 1st of each month and the calculation is based on the holdings you retain in your personal wallet* across the month.
Our goal is to continue distributing interest indefinitely, through recycling profits.
* Personal wallet addresses do not include wallet addresses on an exchange
One of the reasons we based our blockchain on Ethereum’s code base was because we didn’t want to be limited to storing cryptocurrency transaction information. Our blockchain can also store smart contracts, tailored agreements that help ensure fair interactions between parties without a middle person.
For small operators and producers, smart contracts can help them take control of their business and ensure they’re paid fairly. The contract is programmed with specific parameters, and money is only sent once the counterparty has fulfilled their part of the deal.
Smart contracts can be used in fair trade applications. A coffee grower in Ethiopia could smart contract with a roaster in Australia to send their beans directly, cutting out distributors who might take advantage of the grower. A collective of garment makers in Bangladesh could smart contract with an English designer to directly provide textiles and clothing for a new collection.
As we grow, Auxilium will dedicate developers to custom-code smart contracts to help establish fair terms between parties all over the world.