[2020.7.

7]

[MDK]
[White Paper]

Summary
MDK, a new type of cryptocurrency, saves energy
consumption and lowers the threshold for participation;
decentralized, safe and reliable.

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 Summary
1 MDK Overview.......................................................................................... 3

1.1 Cryptocurrency.............................................................................. 3

1.2 Seeking replacement..................................................................... 6

2 Four major problems that MDK needs to solve....................................... 8

2.1 Monopoly issues............................................................................ 9

2.2 The problem of centralized computing power........................... 11

2.3 Energy consumption issues......................................................... 14

2.4 Incentive layer of existing BIEXEX currency design.....................16

2.5 Why MDK appears now............................................................... 17

3 MDK's technical solution........................................................................ 18

3.1 MDK distribution and mining consensus algorithm................... 18

3.2 MDK Economic Model................................................................. 20

3.3MDK architecture and consensus algorithm................................22

3.3 MDK technical features............................................................... 24

3.3.1 Blockchain.........................................................................24

3.3.2 Possible attack and defense design................................. 25

3.3.3 transaction........................................................................25

4 MDK Technical Route.............................................................................. 26

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1 MDK Overview

MDK is a new type of cryptocurrency. Its main feature is the use of

Hard disk as participants in consensus, reducing the consumption of

cryptocurrency's power resources, lowering the threshold of

participation, making its production method more decentralized, more

secure and credible, and allowing everyone to participate to the mining

of cryptocurrencies, credit and value are generated through

mathematical algorithms and distributed mining.

This article will elaborate on the credit system and technical

characteristics created by this cryptocurrency system.

1.1 Cryptocurrency

When it comes to cryptocurrencies, Bitcoin (Bitcoin, hereinafter

referred to as BTC) is the most widely known. In addition, the entire

cryptocurrency industry has begun to try some new technical solutions

to increase the speed of payment and expand the scope of payment.

Many improved cryptocurrencies came into being, such as Dai-Wei's

B-Money and Ripple.

Ripple, we have seen that it has been used for settlement among a

small number of different national banks. Because it is too centralized in

production methods, it has not been widely used. Compared with more

decentralized cryptocurrencies (such as BTC), the centralized operation

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of projects is more popular with other application companies. There will

naturally be no cryptocurrency miners in this system. After all, most of

the steps have nothing to do with miners, because its issuer mainly

participates in the overall project as a company.

B-Money's design requires a lot of network synchronization

operations, which makes it easy to cause network congestion, but the

network speed was not so fast at that time, and the information often

froze during transmission, causing problems, or all the network is waiting

for a slower packet, and eventually the transmission fails due to the lack

of reply information, making it unsatisfactory in use.

BTC came to the stage through its own nakamoto-type consensus,

which is now known as the asynchronous proof of work (hereinafter

referred to as POW).In the early days, not many people were optimistic

about this project, because its consensus did not synchronize the

transfer results to ensure that the transfer results would not be wrong,

but used a very interesting method-the longest chain.That is to say,

which package is more recognized by the nodes in this distributed

system, and the transaction in that package is the correct result, so how

does this package appear, of course, it is jointly verified by the nodes in

this system, only a timeout is given The time for packaging. As long as

there are more nodes participating in the package during this time, then

it is correct. In this logic, there will be a situation where the nodes in the

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system can collectively do bad things, so that the correct transaction is

not packaged, so that the transmission of the network is invalid, which is

also interesting in this way, because it both Right or wrong. Yes, because

it avoids a large amount of communication in the network, and

asynchronous is more suitable for the transaction step; incorrect,

because in extreme cases, that is, when the majority of bad people in

the system, the system becomes an invalid system, which is also in the

later stage The 51% double spend attack that people often mention. The

last thing the financial system can do is rollback and double spending,

which is why BTC was not accepted on a large scale in the beginning.

Over time, there are many participants who enter the system due to

benefits. Due to the difficulty of generating blocks (that is, the packaging

mentioned above) at the system level, the cost of entering the bad guys

is greatly increased, and the system also follows Become more stable,

after all, good people get much higher benefits than bad people. At this

time, people began to recognize this new type of cryptocurrency. From

an unstable financial system, through the years of increasing difficulty,

double spending and rollback became very difficult, and the system

gradually stabilized. It also resulted in the original doctrine of BTC:

cryptocurrency enthusiasts. At this time, many new types of

cryptocurrencies were manufactured in a forked manner, and they were

attacked by 51% double spend because of their exclusive computing

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power. The main reason is that this system is insecure under low

difficulty; The highly difficult security system requires very large energy

consumption.

We can discover some technical characteristics of BTC through

observation:

First of all, BTC has never been a technological radical, but instead

chose a fairly mature existing technology to complete a secure and

reliable peer-to-peer cash system. The more proven, concise, and mature

technology, the more secure and credible, such as The algorithm of

SHA256 used in the nakamoto consensus was designed by the NSA

(United States Security Agency), and its security credibility has been

effectively verified, indicating that the initial design may not have

considered the current ASIC (Application-Specific Integrated Circuit,

dedicated integrated circuit (hereinafter referred to as ASIC) and power

monopoly issues are only designed for ultimate credibility. For ultimate

safety and credibility, even the original efficient transaction concurrency

of the Internet has been sacrificed.

1.2 Seeking replacement

When resources are widely used to generate blocks, and costs are

gradually increasing, cryptocurrency enthusiasts are beginning to find

lower-power alternatives, which are mainly divided into two categories:

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lower-cost alternatives and more general stackable Component

replacement, this is the era of ASIC mining and the development of

anti-ASIC algorithms. Among them, the original intention of ETH and

Monero is to resist ASIC. They hope that the calculation method of block

generation can resist ASIC chips, and maintain a relatively low block cost,

making it an encryption that is not controlled by ASIC chips for mining.

Currency, but after the issuance of cryptocurrency, once the market

value reaches the scope of ASIC chip investment, ASIC developers will

still find a way to design these cryptographic algorithms to mine through

computational methods into mining machines. Another well-known

cryptocurrency LTC is also a representative. The LTC using the Scrypt

algorithm is against ASIC as the technical highlight, but soon the ASIC

equipment manufacturer optimized his algorithm and turned it into a

mining machine. The monopoly of equipment and computing power has

brought huge energy consumption. The dependence of electricity and

the threshold of the mining field make mining a game for a few people.

The MDK is a master, which can achieve lower energy consumption

and facilitate the participation of miners to make self-made general

components, while maintaining relatively high difficulty to ensure the

stability of the system. The BIEXEX consensus used by MDK is a very

decentralized consensus algorithm. Compared with the power

calculation caused by POW, it proves that the era of big navigation,

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BIEXEX will open up a new era of big navigation based on hard disk

capacity proof. BIEXEX uses hard disk as the main carrier of consensus, so

that more ordinary people can participate in the formation of computing

power through their own computers, and can return to the original

intention of Satoshi Nakamoto's design of POW, so that everyone can

participate. The road to centralized innovation. At the same time, MDK

inherited the tradition of BTC, because BTC was designed to serve a

system of most participants at the beginning, that is, each participant

can be a role of thinking, supporting, or even subverting the system.

BIEXEX inherits this openness and inclusiveness, and along with a more

close-to-people consensus on hard drive capacity, it can further promote

the cryptocurrency to the public and allow more people to participate in

the construction of the MDK economic system.

2 Four major problems that MDK needs to

solve

The problems of POW consensus equipment monopoly, centralized

computing power, energy consumption, and the existing BIEXEX

incentive layer have become four major problems in the industry. From

the beginning of the design, MDK is to solve the four major problems of

the existing industry. Below we elaborate one by one.

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2.1 Monopoly issues

From the beginning, BTC wanted to solve the monopoly problem

and trust crisis of financial institutions. Since the financial crisis in 2008,

Satoshi Nakamoto believes that the monopoly of the financial system

will repeat the financial crisis again and again (see the figure below).

Decentralization is one of the best ways to solve this problem.

What is the status of BTC after many years?

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 The above picture is the value curve of the entire cryptocurrency

market led by BTC. Is it more like a fluctuation in the financial crisis cycle?

This has to cause us to think about whether BTC is still so decentralized

in the current monopoly of computing power?

The technical part of BTC Core is controlled by core developers, and

the code update speed is slow, which can be described as code

centralization; BTC has a huge computing power, and ordinary people

cannot participate in consensus and can only conduct transactions,

which can be described as centralized computing power; The block time

is relatively slow, about 10 minutes, single-digit TPS is difficult to achieve

the normal experience of using the existing network; in addition, BTC

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Core wallet has not made any optimization in ten years, and there is no

mobile version of BTC Core. Changes and upgrades to the user's

experience can be described as centralized experience. What's more, if

you want to deploy the Lightning Network, let more centralized

companies participate in the Lightning Network node, and make the

entire BTC system more and more centralized. The user experience is far

better than centralized payment systems (such as VISA).

Since people are willing to believe in BTC, they must accept the

subversive challenges initiated by new things and think about how to

implement decentralization so that everyone can participate in this

innovation. MDK came into being at this time. At the beginning of the

design of MDK, a more economical decentralized method was selected,

which can reduce the cost of credit again, from the uninterrupted

calculation method of POW to a lower cost storage + retrieval. We

believe that the strengthening of centralization will repeat the crises

again and again. Our goal is to achieve complete decentralization on

MDK and fundamentally prevent the birth of potential crises.

2.2 The problem of centralized computing power

We mentioned that the main reason why BTC can be a successful

cryptocurrency is that its computing power is maintained in a relatively

high range. Now that the problem is coming, these mining machine

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manufacturers can affect the price of BTC by adjusting the price of

mining machines. That is, with the increase in the expectations of

cryptocurrency participants for BTC earnings, everyone is willing to use a

higher computing power machine to produce cryptocurrencies, that is,

get rewards through packaging. The top four institutions in Bitcoin

mining account for approximately 53% of the mining share; in the

Ethereum system, the concentration is higher, and the top three mining

institutions account for 61% of the mining share. In addition, 56% of the

Bitcoin mining software and 28% of the Ethereum mining software in the

world are concentrated in the data center, indicating that the operation

of Bitcoin is more corporate.

The following figure shows that the computing power of BTC is now

around 30,000P-40,000P, then it has increased by 10 times compared to

2017, that is, the difficulty of participants has increased by 10 times.

From the figure below, we can see that the computing power has

begun to be corporatized, and you can see the familiar F2Pool, AntPool,

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Slush.

In the step by step increase in computing power, mining machine

manufacturers increase the difficulty of the entire production by

manufacturing machines with higher computing power, and increase the

configuration of their own mining machines by increasing the difficulty,

so that ordinary cryptocurrency participants are discouraged.

MDK is to use the storage space of the hard disk to break up the

centralized computing power, thereby avoiding the occurrence of

monopoly.

MDK writes the result of each collision on the hard disk by means of

pre-calculation. In this way, the calculation is reconstructed. In the

process of currency generation, the miner only needs to retrieve the

data already in the hard disk for a short time according to the network

requirements. The system remains idle for the rest of the time, which

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brings low power consumption. Consensus model. In the MDK system, as

long as the hard disk is large enough and contains enough "answers",

any cryptocurrency enthusiast can participate in the production process

of the block, and does not need to repeat a lot of calculations.

2.3 Energy consumption issues

Of course, the concentration of computing power also brings about

the problem of energy consumption. As mentioned in the previous link,

for a large number of calculations of a specific hash collision, how much

resources does this calculation consume?

To give an example, according to the energy consumption of the

existing BTC network, it is about the same as the Italian electricity

demand of 10%. It is said that all roads lead to Rome. While BTC brings

Rome to everyone, it also brings the equivalent of electricity

consumption of 6 million people in Rome, Milan and Venice.

The energy saved by the low-energy MDK can be used more by

other entities than by repeated wasteful consumption. This weak energy

consumption consensus system can allow more people to participate,

and is no longer a game for a few people.

Another problem caused by huge energy consumption is even more

serious: POW computing power is reflected in energy consumption.

Since energy is controlled by the national government in any country, as

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the POW computing power gradually expands, excessive energy

consumption will cause a A series of social issues, it is likely that the

government will intervene to cause the fluctuation of the power of the

entire network of POW, and the security will be greatly reduced.

As can be seen from the table below, the power consumption of

BTC was 73,121 degrees in October 2018, and fell directly to 44,722

degrees in January 2019. This reduction in computing power through

energy reduction will affect the difficulty of the entire block and the

profit of the mining machine. This is still the case for BTC. For small

currencies using POW, it brings the risk of forks, and forks It is also a

deadly threat, threatening the correctness and security of the entire

consensus.

In other words, if the mines are gathered in a national government,

then the government can affect the difficulty and benefits of the system

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by regulating related energy resources, which will cause a decline in

computing power due to a potential large-scale power resource decline,

and even worse. A POW can be forked as a consensus token. MDK's low

power consumption also gives a solution on this side, by reducing the

dependence on energy, to develop a production method that is more

suitable for long-term survival. The meaning of BIEXEX is also to replace

the high energy consumption of ASIC with low-consumption hard disk

search, and to provide random numbers that guarantee high security

features through the global hard disk storage medium as a whole,

thereby ensuring the underlying security.

2.4 Incentive layer of existing BIEXEX currency design

Has anyone considered using a hard drive as a carrier of a currency

consensus system before? The answer is yes. Burst, born in 2014, is the

first BIEXEX consensus system currency. Burst soon popularized the

BIEXEX consensus algorithm, and has a lot of supporters, but at the same

time also exposed some of the problems of the original BIEXEX

consensus algorithm. MDK summed up Burst’s failure lessons and came

out in July 2020 after a series of technical changes.

At the beginning of the design, Burst did not have an appropriate

incentive method. Most of the currency was mined at a very low cost by

early miners. With the promotion and promotion of the team, the

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participants who entered Burst in the later period did not have enough

currency layer returns, which was extremely The enthusiasm of the

participants was reduced, so that BIEXEX cryptocurrency slowly came out

of people's vision. When designing incentives, MDK uses a double

incentive method, which can be mined in a conditional or unconditional

way, in order to adjust the operating team fees and miners' income. That

is, when a miner produces a block in his condition, the miner can receive

all the benefits; when the miner is allowed to withdraw the condition,

most of the reward for the block is distributed to the operation team.

MDK adopts a conditional way to ensure the continuous development of

the chain and the introduction of new miners, in this way to maintain the

long-term positive development of the community.

2.5 Why MDK appears now

In order to solve the above four problems, MDK came into being.

With the increasing number of cryptocurrency enthusiasts, its goal

of decentralization is one step closer to us. Every participant wants to

participate and benefit from it. This reasonable demand becomes more

and more difficult in the POW field. With the increasing energy

consumption of BTC, mining machine manufacturers have become more

centralized, and even produced a dramatic fork. The cryptocurrency

based on BIEXEX has become more demanded by cryptocurrency

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enthusiasts than in 2019. In addition, its special consensus algorithm

ensures that the accumulation and difficulty of computing power can be

quickly completed on the line. While ensuring the security and

soundness of the system, it rewards traders and consensus supporters.

In these directions, MDK is superior to existing cryptocurrencies. The

iteration of consensus also provides higher security than Burst. The

technical dimension and credit dimension completely surpass other

cryptocurrencies.

Compared to the POW algorithm with high energy expenditure, we

believe that low power consumption can also give the algorithm

sufficient credit to ensure that everyone can use cryptocurrencies in the

future.

3 MDK's technical solution

The MDK is based on the BIEXEX consensus algorithm and

guarantees the healthy development of the entire cryptocurrency by

designing a long-term incentive economic model. At the same time, it

also optimizes the existing BIEXEX and makes some improvements to

upgrade it to the BIEXEX consensus.

3.1 MDK distribution and mining consensus algorithm

The total supply is 2 billion pieces, and the price of each piece is

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0.12 USD. The lock-up period is 6 months, starting from July 20, 2020

and ending on January 20, 2021.

Development team 10%: 200 million. Method: Pre-dig

Promotion team 5%: 100 million. Method: Output with each block

of mining

Miners 85%: 1.7 billion. Way: mining

Block time 3 minutes

Initial block size 15MDK / Block, 2MB block size

The halving period is 4 years, the first halving time is about 568288

block height

Initial TPS 70 transactions/second

The conditional capacity proves that each T holds 3 MDKs as

conditions. Conditional requirements decrease simultaneously as the

computing power of the entire network increases

Note: The 1T hard drive evaluates the proportion of the entire

network based on the bursting rate, not an absolute value.

In the first month of the initial mining period, miners are completely

exempt from mining; starting from the second month, miners implement

conditional mining, and the unqualified capacity mining income is 30% of

the full income. The remaining 70 Of the %, 43% accumulates directly to

the next block address that meets the conditions, and the remaining 27%

is allocated to the MDK development fund. Every 33600 blocks (about 10

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weeks) thereafter, the MDK development fund income will be reduced

by 2%, and part of the accumulation will be reduced The next block that

meets the conditions of mining is given. Until the first halving, the MDK

Foundation's revenue will be reduced to 5% and no longer. The 65% of

the revenue that does not meet the conditions of capacity mining will

accumulate for the next meeting of the conditions. Mine block. If the

miners meet the conditions for mining, they will get 95% of the profits,

and 5% will be included in the foundation for marketing.

The release method of BIEXEX conditional mining will allow miners,

mining pools and foundations to generate positive business games, so

that the entire system will always have a more dominant temporary

commercial gainer (this vested interest will increase with time And price

mining difficulty and other variable conditions) to invisibly promote the

entire ecology.

3.2 MDK Economic Model

MDK's consensus algorithm has been upgraded on the basis of

Burst BIEXEX2 (Proof of Capacity), which is called: BIEXEX to solve the

following problems:

Prevent economic model attacks

Under the POW consensus algorithm, miners are forced to sell

currency due to cost, which will lead to the shrinking of the entire mining

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economy. BIEXEX's mining economic model makes miners a community

of ecological interests, and uses currency as a new type of production

material to replace the original power consumption resources. , So that

the entire MDK ecosystem will continue to expand automatically.

POW maintenance cost is high

The chain based on the POW consensus requires a large amount of

electricity to maintain its safety. When the market is in a downturn,

electricity is the basis of the cost of POW, far exceeding the resource

consumption caused by the hardware itself, miners have to sell coins to

pay for electricity. It is impossible to establish a sense of interest

consistency and identity, and the value of the electricity system

consumed by miners has not been deposited in its currency system. This

part of the value is being withdrawn from the POW system at all times.

No economic momentum to continue to promote development

Without economic power, key technologies cannot be updated. As a

result, long-term effective development and iterations cannot be

obtained, and subsequent versions of the team may even produce a fork

that cannot distinguish the main chain.

Mining machine monopoly

The POW consensus algorithm will inevitably lead to an arms race

for mining machines. In order to obtain higher computing power, it will

inevitably develop special mining machines with higher performance,

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and ordinary people cannot participate in mining. The BIEXEX consensus

algorithm, due to the slow iteration speed of the hard disk

manufacturers and the low threshold, do not have to worry about not

being able to buy hard disks. As long as the countries that can buy hard

disks in the world, everyone can participate in mining.

Power resource monopoly

The power monopoly has led to the expansion of the POW

endogenous economic system. The mining cost of miners has been

higher than the mining income, and the income and expenditure are

unbalanced. For BIEXEX mining, the power consumption of the hard disk

is low, and the profit of the miners will be more computable It can also

use the linear preservation rate of civilian computer hardware to ensure

that miners can hedge the risk of price fluctuations in the secondary

market with relatively safe capital preservation.

3.3MDK architecture and consensus algorithm

The MDK wallet comes from BTC, and the consensus comes from

BurstCoin.

BTC (Bitcoin) started in January 2009. After 11 years of iteration, its

wallet stability and transaction chain stability have been widely

recognized. The deployment of BIEXEX consensus on the basis of its QT

wallet will be very safe and reliable.

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 BurstCoin started in August 2014. After 4 years of iteration, it was

upgraded to BIEXEX in 2018. The technology is relatively mature and

perfect.

Combining the two and taking advantage of the shortcomings, MDK

has become the most reliable public chain under the current BIEXEX

consensus algorithm.

By adopting the mature BIEXEX consensus algorithm, MDK instantly

obtains a stable and reliable consensus algorithm, and the community

has confidence in the MDK public chain. By being compatible with the

BurstCoin Plot file, miners only need to increase a small amount of input

to obtain the two benefits of MDK and BurstCoin.

The MDK wallet inherits BTC's excellent P2P network architecture

and UTXO system, which is mature and stable. Inherited from the BTC

wallet, you can keep track of the latest progress of the BTC community:

such as Lightning Network, script upgrades, etc. Keeping the same

interface specifications as BTC, wallet and exchange docking are greatly

facilitated.

BIEXEX economic model game

Roles: mining pools, miners, currency holders, wallets, exchanges,

hardware service providers.

The business game in the BIEXEX ecosystem, the internal economic

loop and the entry of external resources will make it expand and develop,

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and the MDK price will increase, which will increase the number of

miners; the miners are optimistic about the MDK network joining will

also promote the MDK price increase, and vice versa .

3.3 MDK technical features

1. BIEXEX consensus algorithm;

2. The block generation time is 3 minutes, and the transaction

speed is faster;

3. 2M block size, improve network efficiency;

4. The project with a capacity of 3000P in the whole network is

added with zero-knowledge proof;

5. Use hard disk mining, anti-ASIC, and mining without professional

equipment;

6. Environmental protection, low energy consumption and low

noise;

3.3.1 Blockchain

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 ● Block includes proof sub block, signature sub block and

transaction sub block。

● The arrow indicates that the sub-block contains the miner's

signature of the sub-block pointed by the arrow.

● Our challenge is generated by the hash of the proof sub-block.

3.3.2 Possible attack and defense design

Miners can try different transaction combinations when creating

blocks, so that the created blocks have a certain bias towards themselves.

The independence of the proof sub-block in our block structure can

prevent this attack.

3.3.3 transaction

The MDK transaction structure is the same as bitcoin, that is, a

UTXO to UTXO chain. This transaction design method is also universally

available after many years, and it is also an effective way to achieve its

basic attributes.

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4 MDK Technical Route

1. June 3, 2020: MDK's genesis block was dug out, an innovative mining

experiment was started, and unconditional capacity mining in the first

month.

2. July 4, 2020: MDK starts the economic model experiment of

conditional capacity mining.

3. When the computing power of the entire network enters benign

growth, a flexible economic model can be added based on community

consensus.

4. The capacity of the whole network reaches 3000P, and the

zero-knowledge proof function component is added to improve TPS.

5. The capacity of the whole network reaches 6000P, and iterate more

advanced BIEXEX consensus algorithm.

6. The capacity of the entire network reaches 10000P, and a distributed

encrypted stable currency system based on capacity standard serves the

application layer.

MDK is committed to creating a valuable financial system that changes

the way cryptocurrencies are produced.

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