Bitcoin is currently the most well-known and most valuable cryptocurrency on the market. The original proposal of Bitcoin published in 2008 by Satoshi Nakamoto is a breakthrough in both technological and financial sense, most importantly it has raised awareness and popularized the idea that we need a better currency system. However, there is much to be improved from the original implementation of Bitcoin for a cryptocurrency to be able to replace our current fiat money. SnowGem aims to maintain features that has made Bitcoin great, while also amends some of Bitcoin's flaws.
With SnowGem, you will still be able to enjoy the decentralized, peer-to-peer system that Bitcoin has laid ground work for. Using proof-of-work consensus, SnowGem maintains that there is no central authority, the system’s decisions will be controlled by nodes in the network. The network is open to anyone, anywhere in the world. We are looking forward to a future where transferring money is no longer complicated and troublesome.
One of the major problems with Bitcoin which has been pointed out is that while Bitcoin provides some level of anonymity for its users, it still does not meet the privacy requirement of many. Since every transaction is recorded in a public ledger, the full transaction history of a wallet is revealed to everyone. While the wallet does not directly contain any identity information, one can still use the transaction record to analyze patterns and deduct who is the owner of a specific wallet. SnowGem solves this problem by using shielded transactions, enabled by zk-SNARKS, to hide information about the sender, the recipient, as well as the value on each transaction. You can now be assured that your financial information is private.
Another problem that has arisen with Bitcoin recently when interest in Bitcoin, and cryptocurrencies in general, has grown, is that the Bitcoin system simply does not process transactions fast enough to meet market demand. SnowGem reduces the average interval between blocks from the original 10 minutes to 1 minute. With the current high price volatility, faster processing time reduces the risk in each of your decision to buy or spend your cryptocurrency. The 1-minute processing time still falls far behind traditional fiat money processing, so we will keep looking for ideas of improvement.
Of course, there are many details that we have not addressed here. There are still a lot of issues to solve and a lot of work to do before SnowGem, or any other cryptocurrency, can be conveniently used in our daily life. However, we believe that this is a great start and there are a lot of good things to come. We are excited to hear your feedback and we will be working hard to improve. We wish you good fortunes and thank you for coming on the ride with us.